RFMD Q4 conference call notes 4/18/2000
- 289M in Sales up 89% y2y, 0.26EPS jump to 0.58 or 123% Y2Y
- 1.15 to 1 book to bill ratio, 15.9% in revenue gain q2q
- some suppliers in the sectors were having trouble meeting the demand in which RFMD was able to step in and get customers (probably MOT)
- New fab expected to go online early 2001
- NOK, QCOM, ERICY negotiations going well
- added 60 new design engineers to company recently
- 108.9M in backlog order - orders shippable within 12 months vs. 64M a year ago
- 84.8M in revenue for the quarter, 50% over a year ago
- HBT and silicon products accounted for 93% rev
- 93% of rev from handsets
- 65% from international shipment, 12% from Korea
- gsm 38%, tdma/analog 35%, cmda 20% of total revenues
- 49% gross margins
- 12.8% R&D expenditure increased (12.4 from prev Q) due to orders from new customers QCOM, ERICY, and MOT as well as old customer NOK
- 14.6M in net income or 0.17 per diluted share
- 63.2M in total cash, decrease (75.3M) due to continued expansion of wafer fab facility
- 61.5M in net receivables
- 38.2M in inventory vs. 40M last Q
- 38% tax rate due to profitability next year vs. 35% this year
- Anticipate double digit sequential growth in the June Quarter with additional improvement in margin
- QCOM, MOT, ERICY orders will drive revenues up for late 2000 and 2001.
- looking for market share gains due to customer increasing their market share too
- Capacity constraint in industry, new fab plant will help us in this area
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Q&A
- Some orders already taken for the Sep Q
- Largest customer (NOK) grew rev for RFMD this Q, combination of new (NOK) business and old (NOK) products doing well. Seeing something other than power amplifliers (PA) from them.
- Component shortages in industry have helped us this quarter
- RFMD has 20% market share for PAs
- Can expect rev growth 50% y2y growth
- MOT could become second largest customer in 2001.
VCALL cuts out unfortunately at this point repeatedly
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MOT is going after the low tier prepaid phone market in Europe and orders for RFMD could be very substantial in the end of the 2000 quarter. Company hitting on all cyclinders.
Jack |
