RFMD reports a record Q2
Shares rise as company benefits from increasing global demand for mobile data
RF Micro Devices (RFMD), the RF manufacturer, today reported its financial results for the fiscal 2015 Q2, ended September 27, 2014. The market responded with a 9 percent rise in share price.
Revenue increased 15 percent sequentially and 17 percent year-over-year to $362.7 million on a GAAP basis. Gross margin expanded sequentially by 120 basis points to 46.2 percent, operating income was $75.3 million, and net income was $63.3 million, or $0.21 per diluted share.
On a non-GAAP basis, quarterly revenue was $362.0 million. Gross margin expanded sequentially by 90 basis points to 48.0 percent, operating income was $100.1 million, or 27.6 percent of sales, and net income was $90.0 million, or $0.30 per diluted share. Revenue, gross profit, operating income, operating margin, and earnings per share were all quarterly records.
Dean Priddy, CFO and vice president of administration of RFMD, said: "In the September 2014 quarter, RFMD's revenue, gross profit, operating income, and earnings per share were all quarterly records. Of note, gross profit increased by $24.9 million, and operating income increased by $21.2 million on the $46 million increase in revenue."
Bob Bruggeworth, president and CEO of RFMD, said: "In the September quarter, RFMD continued to benefit from the increasing global demand for mobile data. Consumers want more bandwidth for their data-hungry applications, carriers want greater throughput from their available spectrum, and device manufacturers want greater functionality within the same product footprint. In each instance, RFMD's solutions are a key enabling technology.
He added: "RFMD is enjoying multiple diversified, long-term growth opportunities across markets, customers, and products. This is enabling RFMD to capture increasing content across a broad range of mobile data devices and outpace the growth rate of our underlying markets."
Financial Outlook
RFMD currently believes the demand environment in its end markets supports the following non-GAAP expectations and projections for the December 2014 quarter: It expects quarterly revenue of approximately $385 million with gross margins to be approximately flat sequentially and operating expenses to be approximately flat.
Dean Priddy said: "In the December quarter, RFMD anticipates continued superior financial performance as we execute on our financial model. Our growth drivers are broad-based, we are identifying new opportunities to expand gross margin, and we see continued improvement in operating income, earnings per share, free cash flow, and return on invested capital."
