RFMD reports record-breaking revenue
Even taking into account the seasonal strength of handset sales in the holiday period, this is an impressive figure, representing an increase of 18.1% sequentially compared with $163.5 million in the September 2003 quarter.
Sales for the quarter were up 32.3% compared with $145.8 million in the same quarter of 2002.
Net income for the December 2003 quarter was $28.2 million, or $0.13 per diluted share, compared to a net loss of $5.2 million, or $0.03 per diluted share, for the corresponding quarter of 2002.
The company also reported significant year-over-year and sequential increases in gross profit margin, which it attributed to higher volumes, improved yields and cost savings from the conversion from four-inch to six-inch GaAs wafer fabrication.
Despite this positive news, RFMD’s shares suffered after the company issued a worse-than-expected forecast for the current quarter. The company expects revenues of 153 million to $162 million, with earnings per share in the range of $0.02 to $0.04. Analysts had been forecasting earnings of 7 cents a share on revenue of $173.6 million.
The fall is due to seasonal variations in buying patterns for wireless products. RFMD also said that it expects the sequential decline in demand for TDMA components in the March quarter to be more than seasonal.
However, RFMD is enthusiastic about the growth prospects for the cellular handset market in calendar 2004 and believes its growth can continue to outpace the overall market. Additionally, the company believes ongoing margin improvement initiatives and anticipated revenue growth will continue to have a favorable impact on profitability in calendar 2004.
Bob Bruggeworth, president and CEO of RF Micro Devices, said, "We re extremely pleased to announce all-time quarterly records in revenue and earnings per share, driven primarily by seasonal strength in the handset market, gross margin improvement initiatives and expense control across the organization.
“Our performance in cellular power amplifiers is especially noteworthy, as evidenced by market share gains and our introduction of innovative new products, such as our next-generation PowerStar RF3146 PA module and the world s smallest GSM/GPRS/EDGE power amplifier module, measuring just thirty square millimeters.”
