CC notes 3QFY2000
- Rev up 76% from last year Q3,
- several millions of rev were postpone due to a shortage of a component from a supplier, RFMD since designed a replacement part and got very happy customer out of it
- Book to bill over 1
- Backlog ended up at record level
- gross margin increased to lower gasBT? wafer cost
- TMDA order for rev are 28%
- CDMA order close to 23%
- 125% increase in net income from last year
- 6.2% sequential Q2Q growth
- handset components were 90+% of rev
- International shipment were 56% with Korea being largest customer at 16% of total revenue
- EPS the same Q2Q
- Many customers forecasting increased demand for products
- We capturing more sockets for handsets than expected
Analyst Q&A
- Component shortage was a driver amplifier and problem corrected and shipping this part last week
- Largest customer is Nokia, above 50% of total rev, other major customers were NEC, Sanyo, LG, Samsung, Motorola, Alps?, Bosch.
- Q2Q growth rate could be double digit like 10% for next Q vs. 6% for this Q2Q.
- Ramping module business this summer
- Not running at 100% capacity. We are bringing capacity for more orders.
- 110M capital expenditure for new fab plant which will begin production end of this year.
- Ericsson will start shipping components next quarter
- Motorola will start shipping late summer with high volume
- Half capacity this quarter for existing fab. Should be full capacity in next two months
- Book to bill was ~1.2
- ~80M in rev expected next quarter
- Broadband is 1.5M in rev, won't see major rev growth until 9-12 months from now. Will take new products to move it higher. We got some new products designed but several months to reach production. Working on a chip set for Bluetooth?.
- 12-14% of sales will be R&D expenditures
- Negotiated a TRW license last quarter with legal expenses associated with it.
- The trend is that we are seeing that we are being designed into more phones that expected
- Current NBE reactors are 8-9 in current plant. Will add one NBE machine per quarter for next 12 months. Capacity of the new NBE machine is increased per machine. NBE is not expected to be a bottleneck.
- looking at combination gas HBT poweramps and silicon germanium circuits but nothing to report yet
- SiGe products is not 5% revs, slower product sales, very new product
- 16% for Korean sales vs. 22% last quarter, expect it increase, but not to Sep99 levels.
- 45% annual growth in industry for customers
- Linearity of PA rate driving market demand? We been told our product designs for Y Band CDMA looks pretty good.
- Concerns for double ordering have been allieved by customers
- RFMD inventory have increased due to work-in-process orders?, finished goods inventory has declined
Very organized conference call. vcall.com
Sorry, if some the technical terms got away from me.
Jack |
