More information from the meeting.
M1
Reuters
RF Micro Sees March Stronger Than Expected
Tuesday January 7, 10:38 am ET
By Ben Klayman
CHICAGO (Reuters) - RF Micro Devices Inc.(NasdaqNM:RFMD - News), which makes
semiconductors for wireless devices, said on Tuesday it expects results in
its March quarter to exceed Wall Street expectations because of increased
market share and industry growth.
Still, shares of the Greensboro, North Carolina-based company fell nearly 3
percent. Analysts said the decline may be due to Credit Suisse First
Boston's Monday downgrade of the wireless chip sector on fears of
"unsustainable over-ordering" by customers.
"Given today's backlogs, the March quarter is set to be slightly higher than
current consensus numbers," RF Micro Chief Financial Officer Dean Priddy
told a Needham & Co. conference in New York.
"Either we're taking huge chunks of market share or the market is growing or
both," Priddy said. "We think it's both."
Analysts on average were expecting RF Micro to earn 3 cents a share before
one-time items on sales of $124.54 million in the fourth quarter ending in
March, according to data tracking firm Multex.
U.S. Bancorp Piper Jaffray analyst Samuel May said RF Micro's outlook did
not surprise him.
"(Priddy) is clearly saying he has good visibility," said May, who rates the
stock at "outperform."
May does not own RF Micro stock, and U.S. Bancorp does not do banking work
for the company.
Priddy also said there would be no negative surprises for the third quarter,
which ended in December. RF Micro previously said results were tracking to
the high end of its outlook for earnings of 4 cents to 5 cents a share
before one-time items on sales of $128 million to $132 million.
Analysts expect a profit of 5 cents a share on sales of $131.2 million,
Multex said.
RF Micro plans to report its third-quarter results on Jan. 21.
In morning Nasdaq trading, the company's shares were down 25 cents, or 2.9
percent, at $8.32. |
