Scroll down....nice comments from management concerning current and future outlook....
RF Micro Devices Announces Fiscal 2002 Fourth Quarter and Year-End Results
Quarterly Highlights: - Revenues Total $100.4 Million - Gross Profit Margin Increases To 40.8% - Quarterly Earnings Per Share Equal $0.02 - Modules Increase To 51% of Total Revenues - Wireless Local Area Network (WLAN) Revenues Represent 3% of Total Revenues - Company Anticipates June Quarter Revenues Of Approximately $107 Million To $110 Million and Earnings Per Share of $0.02 to $0.03
GREENSBORO, N.C., Apr 16, 2002 /PRNewswire-FirstCall via COMTEX/ -- RF Micro Devices, Inc. (Nasdaq: RFMD chart, msgs), a leading provider of proprietary radio frequency integrated circuits (RFICs) for wireless communications applications, today reported financial results for its fourth quarter and fiscal year ended March 31, 2002.
Financial Results
Revenues for the fiscal 2002 fourth quarter were approximately $100.4 million and were essentially flat, compared sequentially to revenues of $100.6 million for the prior quarter ended December 31, 2001. Quarterly revenues increased approximately 82.5%, compared to revenues of $55.0 million for the corresponding quarter of fiscal 2001. Revenues exceeded the Company's prior estimate of $90 million to $95 million for the quarter, which was provided on January 15, 2002, because components shipped to the handset and WLAN markets exceeded original customer forecasts.
Gross profit margin improved 210 basis points sequentially to 40.8% from 38.7% in the prior quarter. During the corresponding quarter of fiscal 2001, gross profit margin was 24.7%. Gross profit for the quarter increased 5.2% sequentially to $40.9 million, versus $38.9 million for the quarter ended December 31, 2001, and increased 201.3%, versus $13.6 million for the corresponding quarter of fiscal 2001. The sequential increases in gross profit and gross profit margin for the quarter were primarily attributable to increased capacity utilization of the Company's wafer fabrication facilities (fabs) and improved yields.
During the March quarter, other operating expenses totaled $0.5 million, versus $2.6 million in the December 2001 quarter. The sequential decline in other operating expenses was due primarily to the Company's second wafer fab costs, which were partially included in other operating expenses in the December 2001 quarter and are now fully absorbed in cost of goods sold. Other operating expenses currently represent startup costs related to the Company's facility in China, which is expected to be complete in the fall of 2002.
Other (expense) income, net equaled a loss of ($6.0) million, compared to a loss of ($1.9) million in the prior quarter. The increase in other (expense) income, net was primarily attributable to a $3.6 million write down of a $5.0 million investment in the equity of a privately held company. Offsetting this non-operating charge was an unplanned tax benefit of $2.5 million, primarily related to additional carryback benefits allowed under the Job Creation and Worker Assistance Act, which was signed into law on March 8, 2002.
As a result of these factors, net income for the quarter was $2.8 million, or $0.02 per diluted share, compared to net loss of $6.8 million, or ($0.04) per share, for the fourth quarter of fiscal 2001. This compares sequentially to net income of $3.5 million, or $0.02 per diluted share, for the third quarter of fiscal 2002, based on a 14% tax rate.
Business Outlook And Financial Guidance
Based on current backlog, the Company currently expects revenues of approximately $107 million to $110 million and earnings per share of approximately $0.02 to $0.03 for the quarter ending June 30, 2002.
Comments From Management
David Norbury, president and chief executive officer of RF Micro Devices, said, "We are very pleased to report a March quarter that exceeded our expectations and outperformed the handset market. While industry analysts forecast handset sales in the March quarter would be down seasonally approximately 10% to 15% versus the December quarter, we were able to achieve March revenues that were essentially flat with our December results. We believe we accomplished this by gaining share in the power amplifier market and by growing revenues in emerging growth markets.
"In power amplifiers, we believe our opportunities for market share gains are across multiple customers. We are particularly encouraged by favorable design activity with the second, third, fourth and fifth leading handset manufacturers, whose combined market share is approximately one-third of the handset market. While none of these customers currently represents more than a tenth of our quarterly revenues, we anticipate a number of them could become 10% customers in fiscal 2003, based upon current forecasts and production orders.
"Of note, a large number of new production orders from these customers relate to next generation, or "2.5G," handsets, which are the handsets expected to spark replacement purchases this year.
"Additionally, we continued to work very closely with many other participants in the handset market, including emerging OEMs, handset designers and contract manufacturers, each of which seek a variety of products, from our discrete PA solutions to our POLARIS(TM) TOTAL RADIO(TM) transceiver.
"Beyond handsets, we are very encouraged by the initial success we have had in other high-growth markets, such as wireless LAN. We estimate our market share of the wireless LAN market has surpassed 10% after just one full quarter of volume production shipments. The wireless LAN market is forecast by industry analysts to grow approximately 40% this year, and we currently project we will capture an increasing share of the market. Other markets we are targeting include Global Positioning Systems (GPS), satellite radio, wireless infrastructure, Bluetooth(TM), fiber optic datacom and complete integrated radio transceivers. Both in handsets and beyond, we continue to invest substantial dollars in high growth opportunities.
"In terms of order activity, the strength we saw in the March quarter has continued to date into the June quarter. Given our backlog, we currently anticipate revenues in the June quarter of $107 million to $110 million, which would constitute record quarterly revenues for RF Micro Devices. Beyond June, we believe we are seeing signs in the handset market that are consistent with a strong second half, and we believe we are positioned extremely well for continued growth in fiscal 2003."
Dean Priddy, CFO and vice president of administration, said, "Throughout fiscal 2002, we have focused on reducing our cost structure, particularly for our module products. Yields continue to improve, cycle times are decreasing and capacity utilization in our fabs has risen rapidly. Currently, our first fab is operating at nearly full capacity and production is increasing rapidly in our second fab. To increase capacity, we are selectively adding both equipment and manpower, and these additions are helping us meet surge demand in the near-term. Longer term, given the dramatic increase in wafer starts, we have decided to begin the transition to six-inch wafer production. Once complete, six-inch wafer production will give us additional capacity and further lower our cost structure."
RF Micro Devices will conduct a conference call at 9:00 a.m. (ET) tomorrow, April 17, 2002, to discuss fiscal 2002 fourth quarter results and comment on the Company's outlook. The conference call will be broadcast live over the Internet and can be accessed by any interested party at www.streetevents.com or www.rfmd.com . The call will also be available live by dialing (303) 262-3300.
RF Micro Devices, Inc., an ISO 9001-certified manufacturer, designs, develops, manufactures and markets proprietary radio frequency integrated circuits (RFICs) primarily for wireless communications products and applications such as cellular and PCS phones, base stations, wireless LANs, and cable television modems. The Company offers a broad array of products -- including amplifiers, mixers, modulators/demodulators, and single-chip receivers, transmitters and transceivers -- representing a substantial majority of the RFICs required in wireless subscriber equipment. The Company's strategy is to focus on wireless markets by offering a broad range of standard and custom-designed RFICs in order to position itself as a "one-stop" solution for its customers' RFIC needs. RF Micro Devices, Inc. is traded on the Nasdaq National Market under the symbol RFMD.
This press release contains forward-looking statements that relate to RF Micro Devices' plans, objectives, estimates and goals. Words such as "expects," "anticipates," "intends," "plans," "projects," "believes," and "estimates," and variations of these words and similar expressions, identify these forward-looking statements. RF Micro Devices' business is subject to numerous risks and uncertainties, including variability in quarterly operating results, the rate of growth and development of wireless markets, risks associated with the operation of wafer fabrication facilities, its ability to manage rapid growth and to attract and retain skilled personnel, variability in production yields, raw material availability, manufacturing capacity constraints, dependence on a limited number of customers and dependence on third parties. These and other risks and uncertainties, which are described in more detail in RF Micro Devices' most recent Annual Report on Form 10-K and its prospectus dated March 18, 2002 included in its Registration Statement on Form S-3 (Registration No. 333-74578) filed with the Securities and Exchange Commission, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.
RF MICRO DEVICES(R) and RFMD(R) are trademarks of RFMD, LLC. All other tradenames, trademarks and registered trademarks are the property of their respective owners.
For more information about RFMD, please visit our website at www.rfmd.com.
BLUETOOTH is a trademark owned by Bluetooth SIG, Inc., U.S.A. and licensed for use by RF Micro Devices, Inc.
RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
March 31, March 31,
2002 2001 2002 2001
(Unaudited) (Unaudited) (Unaudited) (Audited)
Total revenue $100,434 $55,020 $369,308 $335,364
Costs and expenses:
Cost of goods sold 59,504 41,435 248,965 181,801
Research and development 22,398 15,407 74,445 60,340
Marketing and selling 8,165 6,994 28,993 28,450
General and administrative 3,593 3,188 14,224 13,495
Other operating expense 517 3,356 14,085 4,607
Impairment of long-lived
assets - - 6,801 -
Total costs and expenses 94,177 70,380 387,513 288,693
Operating income (loss) 6,257 (15,360) (18,205) 46,671
Other (expense) income, net (6,028) 1,610 (9,208) 5,738
Income (loss) before income
taxes $229 ($13,750) ($ 27,413) $52,409
Income tax expense (benefit) (2,540) (6,906) (6,829) 17,435
Net income (loss) $2,769 ($6,844) ($ 20,584) $34,974
Net income (loss) per share:
Basic $0.02 ($0.04) ($0.12) $0.22
Diluted $0.02 ($0.04) ($0.12) $0.20
Weighted average shares
outstanding used in per share
calculation:
Basic 167,420 163,302 165,827 161,820
Diluted 174,976 163,302 165,827 173,216
RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, March 31,
2002 2001
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $157,648 $266,076
Short-term investments 186,526 75,162
Accounts receivable, net 56,373 38,610
Inventories 38,734 71,015
Other current assets 16,689 41,451
Total current assets 455,970 492,314
Property and equipment, net 221,679 208,571
Technology licenses, net 9,476 13,424
Goodwill 34,525 -
Other assets 7,350 6,622
Total assets $729,000 $720,931
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $31,599 $24,023
Current obligations under capital leases 3,319 4,976
Total current liabilities 34,918 28,999
Long-term debt, net 294,248 292,700
Non-current deferred tax liability - 19,471
Obligations under capital leases,
less current maturities 169 3,263
Other long-term liabilities 9,980 -
Total liabilities 339,315 344,433
Shareholders' equity:
Total shareholders' equity 389,685 376,498
Total liabilities and shareholders'
equity $729,000 $720,931
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Source: RF Micro Devices, Inc.
Contact:
Dean Priddy, Chief Financial Officer, +1-336-931-7152, or Doug
DeLieto, Dir., Investor Relations, +1-336-931-7968, both of RF Micro Devices;
or general info., Rob Hyman, or investor info., Nicole Engel, of the Financial
Relations Board, +1-212-445-8000
URL: rfmd.com |
