re: RF Micro Devices co-developing a CDMA module with Qualcomm (last paragraph)
>> Handset Transition Affects RF Micro Devices
January 29, 2001
Wireless Week
RF Micro Devices could get hung up next quarter as the handset industry continues to move toward 2.5 and third-generation phones that use modules instead of the integrated circuits the company has been making.
The Greensboro, N.C., circuit maker reported earnings of $79.9 million, or 5 cents per share, for the quarter ending Dec. 31, meeting analysts'expectations. However, RF Micro warns that its fourth quarter, which ends in March, could be disappointing, with earnings of only 2 cents or 3 cents per share. Besides the transition to more sophisticated products, a decrease in orders that started last quarter is contributing to the expected 10 percent decline in revenue.
CEO David Norbury says RF Micro has been aware for some time that handset makers are moving from integrated circuits to multi-chip modules, and the company is ramping up production of new products. Although such changes can't be accomplished overnight, RF Micro should see improved results in the second half of 2001. "Stay tuned. We're going to relight the afterburners in June and go like mad," he says.
The company, which derives 90 percent of its revenue from handsets, recently received orders to produce a high-volume GSM module and Motorola's Talkabout T900 pager, and to co-develop a CDMA module with Qualcomm of San Diego. New handset models that use RF Micro's module technology are increasing in volume but not as quickly as the mature handsets are declining. <<
- Eric - |
