RFMD ($19--$21) earnings fall, takes $22 mln charge, but see's profitablility?
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GREENSBORO, N.C., July 17 (Reuters) - RF Micro Devices Inc.
<RFMD.O>, a maker of radio frequency products used in cell
telephones, on Tuesday posted a net loss of $33.5 million after
taking a $22.1 million charge related to the economic slowdown.
The Greensboro, North Carolina-based company also said it
still believes it will return to profitability during the 2001
calendar year.
RF Micro reported a loss, before the charges, of $7.5
million, or 5 cents a share, for the quarter ending June 30,
compared with a profit of $16.2 million, or 9 cents a diluted
share, the same period a year ago.
Including the $22.1 million charge, it lost 20 cents a
share. The company took a $15.3 million inventory reserve and
two different asset impairment charges totaling $6.8 million.
Revenues for the quarter fell 28.7 percent to $70.1 million
from $98.2 million last year.
The company expects its second quarter revenues will
increase about 10 percent from the first quarter, meaning a
total of about $77 million. It also expects to report a net
loss of 3 cents per share in the second quarter. Analysts had
expected a 2 cent loss, according to Thomson Financial/First
Call.
In mid-April, RF Micro said it would report a first-quarter
loss of about 5 cents to 6 cents a share, while revenues would
grow about 20 percent from the fourth quarter to about $66
million. Before the company's mid-April warning, analysts had
expected the company to break even, according to First Call.
RF Micro's shares closed up 14 cents, or less than 1
percent, at $19.31 in Tuesday trading on Nasdaq. Over the past
year, they have underperformed the Nasdaq 100 index by about 4
percent.
((--Chicago Equities News at 312-408-8787,
chicago.equities.newsroom@reuters.com))
REUTERS
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