News Article
RFMD net income plummets by almost 60%
Although the firm’s financial results are significantly lower than the same quarter last year, RFMD is confident about the increasing customer adoption of its gallium nitride technology in strategic market segments like military radar and CATV line amplifiers.
RF Micro Devices has reported financial results for its fiscal 2012 second quarter, ended October 1, 2011.
Compared to the same period last year, the firm's second quarter revenue decreased from $285.8 million to $243.8 million. On a GAAP basis, gross margin equalled 37.1%, quarterly operating income totalled $23.0 million, and quarterly net income was $14.3 million, or $0.05 per diluted share. This was again a reduction compared to fiscal Q2 2010 where operating income was $42.4 million, net income was $35.4 million and diluted EPS was $0.13.
During the second quarter, RFMD generated approximately $38.4 million in cash flow from operations and $30.6 million in free cash flow. The firm repurchased approximately 1.7 million shares of common stock during the quarter.
Shipments of PowerSmart surpassed $25 million in quarterly revenue, in support of Samsung, LG, and Research In Motion. Quarterly shipments of switch and signal conditioning products exceeded $20 million.
RFMD continued to ramp its 3G/4G PAs in support of HTC, Research In Motion, Lenovo, and others. The company also secured major design wins in Smart Energy/Advanced Metering Infrastructure (AMI), point-to-point (P2P) radio for cellular backhaul, and GaN-based military radar products.
For the December 2011 quarter, RFMD expects revenues to be approximately $250 million. It also expects CPG revenue to outpace the cellular market, driven by anticipated 3G/4G share gain and expects a sequential decline of approximately 10% in MPG revenue.
Bob Bruggeworth, president and chief executive officer of RFMD, said, "Today's overlapping macro trends of mobility, broadband data and energy efficiency present the RF industry with a significant, long-term growth opportunity, while RFMD's industry-leading products and technologies position us to outpace our industry and deliver market share gains.
"In the markets served by MPG, we continue to broaden our customer base and expand our product offerings. We are particularly enthusiastic about the increasing customer adoption of our industry-leading GaN technology in strategic market segments like military radar and CATV line amplifiers.”
"In the cellular market, we are expanding our customer relationships and winning additional content at the world's leading smartphone manufacturers. Our newest design wins set up continued dollar content expansion in both smartphones and 3G entry handsets, while leveraging our already significant exposure to the industry's leading baseband providers. Today these include Qualcomm, Intel, ST Ericsson, MediaTek, Spreadtrum, and others."
Dean Priddy, CFO and vice president of administration of RFMD, said, "During the September quarter, RFMD delivered approximately 14% sequential growth in revenue and nearly 50% sequential growth in non-GAAP operating income, as 3G/4G market share gains more than offset a double-digit sequential decline in MPG. In the December quarter, we expect to deliver sequential revenue growth and improved financial performance, as 3G/4G share gains are anticipated to once again more than offset a sequential decline in MPG."
RF Micro Devices conducted a conference call to discuss its latest financial results. A telephone playback of the conference call may be accessed by dialling 303-590-3030 and entering pass code 4478096.
