Not good....but not really surprising. It was going to be tough for sales in Japan and the US to make up for the weakness in China and Korea.
biz.yahoo.com
Press Release Source: RF Micro Devices, Inc.
RF Micro Devices Updates March Quarter Guidance
Monday April 7, 4:00 pm ET
GREENSBORO, N.C., April 7 /PRNewswire-FirstCall/ -- RF Micro Devices, Inc. (Nasdaq: RFMD - News), a leading provider of proprietary radio frequency integrated circuits (RFICs) for wireless communications applications, today provided updated guidance for the Company's fiscal 2003 fourth quarter, ended March 31, 2003. Based upon preliminary data, revenues for the March 2003 quarter are expected to be approximately $138.3 million, and the loss for the same period is expected to be in the range of or $(0.05) to $(0.07) per share. By comparison, on January 14, 2003, the Company originally estimated that it would have revenues of approximately $135 million and earnings per share in the range of breakeven to a $0.01 loss per share during the March quarter. Included in the preliminary loss per share is an anticipated write-down of investments of approximately $1.7 million. The Company expects to generate positive cash flow from operations during the March 2003 quarter.
Despite exceeding its original revenue estimate, the Company attributes the increase in its expected net loss for the quarter primarily to a shift in product mix. Specifically, the Company saw decreased demand in the final weeks of the quarter for higher margin integrated circuit products and increased demand throughout the quarter for lower margin power amplifier (PA) modules, specifically dual-band PA modules for GSM handsets.
Bob Bruggeworth, president and CEO of RF Micro Devices, said, "We executed better than anticipated in the GSM market, and our revenue performance made clear continued share gains in power amplifiers. However, the pronounced shift during the quarter to GSM PA modules, combined with softness in demand late in the quarter for CDMA and TDMA PAs and small signal devices, adversely impacted March quarter profitability. We continue to implement operating initiatives to improve our gross margins and profitability, such as our transition from four- to six-inch wafer manufacturing capabilities, which we are currently scheduled to begin this quarter. Our growth strategies, diversification efforts and gross margin improvement initiatives remain intact and unchanged." |
