RFMD Q1 conference call notes 7/18/2000
- Quarterly Sales 98.2M, up 15.8% sequentially q2q, and up 58.0% y2y,
- Gross Margin 51.5% vs 49.6% last quarter
- Net income for the quarter was $16.2M, or $0.19 per diluted share, compared to net income of $10.4M, or $0.12 per diluted share, for the first quarter of fiscal 2000, and net income of $14.6M, or $0.17 per diluted share, for the Q4 of FY 2000.
- book to bill ratio greater than one (doesn't specify)
- Established Advance Development Organization that will work on projects two years out
- Opened design center in Phoenix, sale/engineering support offices in England and Taiwan
- Establish RFMD module facilty, feel has lead since most companies not as experience in building modules
- HBT/G3 products will be out next calendar year
- HBT and silicon products accounted for 93% rev and 5% rev respectively
- Handsets 90% of rev, international sales were 60%
- GSM 40%, TDMA/analog 38%, CDMA 12% of total revenues
- Korea sales declined to 7% of rev, Asia sales increase (not specific)
- 58% sequential growth in broadband to 4% of sales, cable modem area strongest
- 3.7M in G&A, impacted by one time writeoff expense relatied to
- Cash 66.1M vs 63.2M last Q
- 50.9M in inventory, increase in passive component to ramp module business vs. 38.3M last Q
- 56.2M in net receivables vs. 61.5M last Q
- 14.4% R&D expenditure increased (12.8 from prev Q) because of increase product development and diversification
- 38% tax rate vs. 35% last Q
- Outlook solid with largest customer
- comfortable with Sep 00 estimates
- believe RFMD cycle time lowest in the industry per customer feedback.
- working on low cost bluetooth solution
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Q&A
- NOK is largest customer, consistent sales numbers
- Saigen?was 10% of sales
- Saw Taiwan computer mfrsstarting to work on cell phones
- Saw ramp in MOT and ERICY business
- Added new devices in the HBT/3G process, circuits are being now, product next year - second quarter. Aluminum gallium arsenide structure based.
- 12% of CDMA sales - most poweramps sales
- In some phone have a couple PAs, some one PA and signal devices
- Modules sales will increase visibilty in ADSL?
- Sept quarter 80% already booked, know NOK orders coming in
- QCOM remains on track, may see some slight revs in Sep quarter and ramp up later
- Booking were linear as they usually are
- Gross margins continue to be favorable. Shouldn't see much change, ramping into module will see 48%
- Taiwanese buying GSM components
- MOT not only cable modem customer, Terayon larger the MOT this quarter for this broadband
- AMKR been a supplier to RFMD?
- One GPRS phone contract so far, volume not high yet (not specified)
- Not good stats on % of NOK GSM business, maybe 25-30% of NOK GSM business, Doing well with other GSM companies
- Sole source of NOK TDMA
- SiGe products have been design in CDMA phones for Korea
- Expect MOT and QCOM to be 10% of sales next year
- Second fab facilty will produce PCM wafer in early Q1 of Jan-Mar01.
- 1XRT is getting attention, nice data rate, but not come on yet.
- MOT product lines - consistent to slightly up, This calendar should see ramp up in growth. Looking to be in their CDMA phones.
- Begun CDMA shipment for ERICY phones
- Korea sales should be flat, seeing interest in GSM and TDMA there. Order rate slow in Korea due to subsidy issue on the phones.
- Taiwan and Japan orders were up.
- ASP decline of 12-14%
- We will be in other GPRS phones be next year. Not sure how quick it will ramp as it is a major technology rollout and is contrained by political and other factors
- We are in several WAP phones
- CDPD device sales are none, no high volume as their was a couple of years ago.
- I-mode sales are none due to Japanese using Japanese suppliers
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Several questions on % of GSM/TDMA/CDMA rev since they weren't listening or didn't have notes from last quarter. Apparently the Korea decline in orders has hurt this stock so we will float until next quarter. Taiwanese enter cell phone market will mean more revenue for RFMD. NOK CC will shed more light.
Jack |
