Hi.
Well, I trade RFMD often...but to answer your question,,,
>>>>if there is a F/A reason why you are long?
If you have ever been involved in any high-vol handset design, you'll know that size (integration), cost, and battery life are three key driving factors. The cost of designing, testing, and integrating RF circuits(modules) is extremely high (equipment & expertise) and time consuming. That's why handset mfrs are turning to companies like RFMD & TQNT for package solutions. Earlier this year, RFMD stock was hit because of wireless market weakness & inventory overhang. Now with those issues behind them, shipment of new higher-margin RF modules should help their bottom line significantly. The stock is not cheap but when you hear them hit on all the buzz words that WS loves to hear(sequential revenue growth, higher margins, market share gains), you'll see why the stock refuses to blindly follow the general market trend.
From Company's web page.
rfmd.com
BW2503 JUL 24,2001 8:46 PACIFIC 11:46 EASTERN
( BW)(NC-RF-MICRO)(RFMD) RF Micro Devices Announces Results Of Annual Meeting And Comments On Outlook For Fiscal 2002
Business Editors/High Tech Writers
GREENSBORO, N.C.--(BUSINESS WIRE)--July 24, 2001--At the annual meeting of shareholders of RF Micro Devices (Nasdaq: RFMD) held today, President and Chief Executive Officer David A. Norbury discussed the Company's record results for fiscal 2001, ended March 31, 2001, and reiterated the Company's outlook for growth in fiscal 2002.
Results of Annual Meeting
During the meeting, shareholders re-elected Mr. Norbury, William J. Pratt, Dr. Albert E. Paladino, Erik H. van der Kaay and Walter H. Wilkinson, Jr. to RF Micro Devices' Board of Directors for one-year terms.
Comments from Management
"Fiscal 2001 was a year of significant financial and strategic achievements," said Mr. Norbury. "In addition to posting record revenues of $335.4 million, we improved upon our leading position in the industry by carrying out aggressive module design and manufacturing initiatives. Increasingly, major cell phone manufacturers are requiring these highly integrated, multi-chip modules, which provide greater ease of assembly, smaller size, accelerated time-to-market and lower cost.
"The success of our module strategy is clear. Module revenues grew rapidly from 1% of total sales in the first quarter of fiscal 2001 to 32% of total sales in the fourth quarter of fiscal 2001. We believe module revenues will continue to increase and will account for approximately 50% of total revenues in the current quarter, ending September 30, 2001."
Mr. Norbury continued, "In our fiscal 2002 first quarter earnings release and conference call last week, we were pleased to report better-than-forecasted sequential revenue growth for the June quarter in spite of a very challenging macro environment. Given our improved visibility, increased design activity and relative strength within the industry, we continue to expect near-term revenue growth and market share gains for the September quarter.
"Specifically, we anticipate September revenues will increase approximately ten percent sequentially, and, as I indicated on our conference call last week, we are very pleased to be fully booked to reach that goal. We also continue to expect to return to profitability in the second half of the calendar year, as our revenue growth continues and margin improvement programs proceed. Finally, given the information currently available, we continue to expect to post year-over-year revenue growth for fiscal 2002, ending March 31, 2002." |
