News Article
RFMD Achieves Record Quarterly Revenue of $285.8 Million
The firm generated $56.1 million in record quarterly free cash flow, achieving a positive net cash position.
RF Micro Devices (RFMD), a global leader in the design and manufacture of high-performance radio frequency components and compound semiconductor technologies, has reported financial results for its fiscal 2011 second quarter, ended October 2, 2010.
RFMD's quarterly revenue increased approximately 12% year-over-year and 4.4% sequentially to $285.8 million. On a GAAP basis, gross margin equaled 38.0%, quarterly operating income totaled $42.4 million (or 14.8% of revenue), and quarterly net income was $35.1 million, or $0.13 per diluted share.
During the quarter, RFMD generated a record $56.1 million in free cash flow (net cash provided by operating activities during the period, minus property and equipment expenditures made during the period) and achieved a positive net cash position. RFMD defines "positive net cash" as cash and cash equivalents and short-term investments exceeding the principal amount of RFMD's convertible subordinated notes due 2012 and 2014.
RFMD achieved substantial year-over-year and continued sequential revenue growth in both the Cellular Products Group (CPG) and the Multi-Market Products Group (MPG). The firm increased sales to customers outside its largest customer by approximately 53% year-over-year, driven by market share gains at targeted handset customers and broad-based growth in MPG's end markets.
Having introduced 74 new and derivative products during the quarter targeting diverse market segments, RFMD secured major design wins during the quarter, including components for smartphones, mobile tablet devices, Smart Energy applications, high-power GaN applications, and wireless infrastructure.
