RFMD ( $19-->$24) meets Street view Business conditions to improve in Q2
By Lisa Sanders, CBS.MarketWatch.com
Last Update: 4:53 PM ET July 17, 2001
GREENSBORO, N.C. (CBS.MW) -- Shares of RF Micro Devices headed higher in post-market activity after the maker of chips for communications equipment met Wall Street estimates for the first quarter and said it sees business conditions improving in the second quarter.
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RF Micro (RFMD: news, chart, profile) , which closed out the regular session at $19.31, added $2.19 to trade at $21.50 on the Island ECN.
For the first quarter, the company posted a loss of $7.5 million, or 5 cents a share, in line with the average estimate of analysts polled by First Call/Thomson Financial. A year ago in a better economic climate, RF Micro earned $16.2 million, or 9 cents a share. The current quarter included a $22.1 million special charge related to inventory reserves and asset impairment.
On the top line, RF Micro's revenue grew 27.3 percent to $70.1 million on a sequential basis but declined 28.7 percent from the year ago period. The company noted that revenue was ahead of its target, fueled by sales of its power amplifier modules.
RF Micro said that orders improved during the June quarter, and it is now 100 percent booked to support 10 percent sequential revenue growth in the second quarter.
Looking ahead, RF Micro also said it expects gross margins of 28 percent to 33 percent in the September quarter, and it no longer expects to realize a tax benefit in the three-month period. RF Micro predicted it would lose 3 cents a share in the September quarter, which compares to the two-cent per share loss currently expected by analysts.
RF Micro added it expects to return to profitability during 2001.
Lisa Sanders is a Dallas-based reporter for CBS.MarketWatch.com. |
