RF Micro Sees Top Handset Customer Revenues Rising
Tuesday June 25, 4:35 pm Eastern Time
Reuters Market News
NANTUCKET, Mass. (Reuters) - Wireless chipmaker RF Micro Devices Inc. (NasdaqNM:RFMD - News) on Tuesday said it expects revenues from its top wireless telephone manufacturing customers to grow in the coming quarter from the current period.
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The company, which makes circuits for mobile telephones and other wireless devices, also said it expects Motorola Inc. (NYSE:MOT - News) to account for at least 10 percent of revenues in its fiscal first quarter ending in June.
Finland's Nokia (NOK1V.HE) (NYSE:NOK - News) is RF Micro's largest customer, accounting for more than half its revenues.
"We expect all five of the major handset manufacturers to have revenue growth for us in the September quarter," strengthening RF Micro's market position, Chief Financial Officer Dean Priddy told Reuters on a telephone interview following his presentation at a Wachovia equity conference here.
The other cell phone makers are Korea's Samsung Electronics Co. Ltd. (KSE:05930.KS - News), SonyEricsson (Tokyo:6758.T - News; NasdaqNM:ERICY - News; Stockholm:ERICb.ST - News) and Germany's Siemens AG (XETRA:SIEGn.DE - News), Priddy said.
RF Micro's shares closed off 36 cents, or 5.29 percent, at $6.44 in Nasdaq trading.
Priddy sought to dispel speculation that RF Micro has lost business with Nokia, saying that their relationship was strong. Greensboro, North Carolina-based RF Micro earlier this month cut its earnings and revenue forecasts for the June quarter because Nokia had delayed a shipment of orders.
RF Micro shares lost one-third of their value on June 7 it when the company said it expected a slight profit in the current quarter, breaking even on a per-share basis, on revenues of $98 million to $101 million. Previously, it had forecast earnings of 2 cents to 3 cents a share on revenues of $107 million to $110 million.
RF Micro said at the conference that it expects a second manufacturer to account for more than 10 percent of sales in the June quarter. When asked if the company was Motorola, Priddy called that a "very good, sophisticated guess."
RF Micro also said it expects its year-over-year revenues to grow even if global handset shipments this year come in at the low end of forecasts of around $390 million.
Priddy added that the company still faces heavy pricing pressure and is investing heavily in research and development.
"While we believe that our position is improving, we're not standing up beating our chests that earnings are going to start accelerating rapidly," he said. "We do believe that we're going to be profitable, but at the same time we have to be realistic about the market and where we stand in terms of profitability." |
