RFMD reports record revenue
Prior to lowering its guidance on June 7, RFMD had predicted $107 million to $110 million in revenue for the June quarter.
The revenue figure of $103.9 million represents a sequential increase of 3.5% compared to $100.4 million for the quarter ended March 31, 2002. Quarterly revenue increased 48.4% versus $70.1 million for the June 2001 quarter.
RFMD anticipates the markets for components for wireless handsets and wireless LAN products will continue to grow in line with industry estimates. In addition, the company expects to improve its market share position while reducing its cost structure. ASPs for 2002 are anticipated to decline 15% to 20%, which is consistent with annual ASP declines in prior years.
As a result of these factors and given current backlog, RFMD currently anticipates revenues for the quarter ending September 30, 2002 will increase sequentially 5% to 10% and earnings per share will be approximately $0.01 to $0.02.
David Norbury, chief executive officer of RF Micro Devices, said, "We are very pleased to report record revenue for the company, which we believe is due primarily to continued strength in sales of our handset components and market share gains in the wireless LAN market. We experienced a surge in orders late in the quarter, some of which we were able to book and ship quickly."
According to Norbury, RFMD continues to diversify its revenues across customers and end markets. The company has added Motorola as its second ten-percent customer (Nokia already accounts for more than half RFMD s revenue) and is hoping to add the number 3 handset maker, Samsung, as a further ten-percent customer.
"We are encouraged by our early success in the wireless LAN market, which is forecast by industry analysts to grow 40% to 80% this year," added Norbury. "Sales of our wireless LAN products increased sequentially 90% to $5.9 million in the June quarter, and we estimate our market share jumped from approximately 10% in the March quarter to the high teens in the June quarter, in just two full quarters of volume production shipments."
