RFMD adopts cautious outlook as losses widen
RFMD s gross profit for the quarter was $40.8 million, down 25.1% sequentially from $54.4 million in the December 2002 quarter. This decline reflects decreased demand in the final weeks of the quarter for higher margin IC products and increased demand throughout the quarter for lower margin PA modules, specifically dual-band PA modules for GSM handsets.
The company is also battling against widening losses. The net loss for the March 2003 quarter was $13.0 million, or $0.07 per diluted share, compared to a net loss of $5.2 million, or $0.03 per diluted share, in the prior quarter. The company reported a net income of $2.8 million, or $0.02 per diluted share, for the March 2002 quarter.
The company has taken a cautious stance and predicts that its revenue for the June 2003 quarter will be flat to down 5%, and that it will have a quarterly net loss per share in the $0.05-0.06 range.
Bob Bruggeworth, president and CEO, said, "We are focused on multiple initiatives to improve profitability, including the conversion from four- to six-inch wafer manufacturing, the introduction of next-generation modules, the addition of Jazz Semiconductor as a supplier of silicon and ongoing yield improvements, especially in our module products. We continue to believe margins will improve beginning in the June quarter."
Dean Priddy, CFO and VP of administration, said, "We re optimistic that our margin improvement initiatives on PAs will benefit us this quarter and our Polaris Total Radio transceiver and WLAN products will benefit the top line and gross margin later in the year."
