Darkest before dawn? Briefing.com on RFMD's positive announcement this a.m.:
Briefing.com is inclined to think RFMD's good fortunes are more company-specific at this juncture than indicative of a broader industry trend; however, investors shouldn't overlook the fact that RFMD's success has a source. In its press release, it was reported that order activity and revenue growth has been seen from multiple customers and across all major air interface standards. That's an incremental positive for companies like Qualcomm (QCOM) and Nokia (NOK), the latter of which accounted for 53% of RFMD's total sales in FY01. In a CNBC interview, RFMD's CEO conceded that some customers aren't doing as well as others, and without citing any specific data, he mentioned Motorola (MOT) and Ericsson (ERICY) in the same breath. For several months now, Briefing.com has been discrediting the rallies in the semiconductor sector due to the lack of any meaningful signs of a pickup in end demand and the constant reminders from the companies themselves that visibility is lacking. All things considered, we still aren't all that enthused about there being a substantive turn in the industry's prospects, but if we hear more guidance like we heard from RF Micro Devices this morning, we'll have no choice but to alter our stance.-- |
