RFMD records a loss as revenues slip
RFMD s net loss for the quarter was $8.1 million, or $0.04 per diluted share, compared to net income of $2.3 million, or $0.01 per diluted share, for the June 2002 quarter. In the March 2003 quarter, RFMD recorded a net loss of $13.0 million, or $0.07 per share.
Gross profit for the quarter was $41.2 million, up 1.1% sequentially due to improved test yield but down slightly from $41.4 million in the prior year period, due to product mix.
RFMD says that its results reflect continued strength at leading handset original equipment manufacturers (OEMs), offset by weakness at handset original design manufacturers (ODMs) and for the company s 802.11b wireless LAN products. The company believes it increased its market share in its core market of power amplifiers for handsets.
The company says that it has backlog to support September 2003 quarterly revenue in the low $130-million range and anticipates a quarterly loss of approximately 4-5 cents on a GAAP basis.
Bob Bruggeworth, president and CEO, said, "We re pleased to have shown improved financial performance in our core business, as evidenced by gross margin improvement. We re also encouraged by the recent increase in order rates, which have rebounded nicely from April and May levels. Additionally, we re approaching new product cycles in handsets, wireless LAN and other wireless markets, and we re encouraged by customer interest."
Dean Priddy, CFO and VP of administration, said, "In early July, we completed a $230 million dollar 1.5% coupon rate convertible offering and repurchased $150 million of our higher coupon 3.75% convertible debt, with the reduced interest expense beginning to show in the second quarter s financial results."
