Gallium Arsenide play is RFMD.
Friday September 12 4:02 PM EDT
Company Press Release
Source: RF Micro Devices, Inc.
RF Micro Devices Projects Second Quarter Results; Company Also Announces
Production Contracts From Nokia Mobile Phones
GREENSBORO, N.C., Sept. 12 /PRNewswire/ - RF Micro Devices, Inc.
(Nasdaq:RFMD), a leading provider of proprietary radio frequency
integrated circuits (RFIC) for wireless communications applications,
announced today that, although revenues will increase approximately 50%
over the same quarter last year, results for the second quarter of
fiscal 1998, ending September 27, 1997, will be lower than analysts'
estimates, which are currently $0.08 to $0.10 per share. The Company
will release second quarter earnings on October 22, 1997.
The Company stated that a shortfall in revenues was caused by an
increase in the manufacturing cycle time of Gallium Arsenide
Heterojunction Bipolar Transistor (GaAs HBT) wafers as a result of
capacity expansion projects underway during this quarter. Those capacity
expansion projects are currently proceeding on schedule. It is likely
that the effects of these manufacturing cycle time increases may also
impact fiscal third quarter revenues, but not to the degree seen this
quarter. Additionally, the construction of RF Micro Devices' GaAs HBT
wafer fabrication facility remains on schedule and on budget, and the
Company plans to begin fabricating its own wafers in commercial
quantities in the second half of 1998.
David Norbury, President and Chief Executive Officer, stated, ``While we
are disappointed that we did not meet analysts' estimates, we are
pleased by the continued strong demand across our product lines,
particularly for our GaAs HBT products. We expect that our book-to-bill
ratio for the quarter will be substantially above one and in line with
our plan.''
RF Micro Devices also announced today multiple production contract
awards from Nokia Mobile Phones (Nokia) for its wireless radio frequency
(RF) components. These components are used in four cellular phone models
currently in production by Nokia. These Nokia phones cover a broad range
of different cellular technologies, including models for digital and
analog systems.
The RF integrated circuits supplied by RFMD include GaAs HBT technology
and advanced Bipolar Silicon devices. According to William J. Pratt,
RFMD's chairman and chief technology officer, ``These production
contracts continue to validate RFMD's use of Optimum Technology
Matching(TM) (OTM).'' OTM is a method of matching the semiconductor
process technology to an application that results in the best cost and
performance. RFMD is the premier supplier of GaAs HBTs for the wireless
communications industry. These devices enable cellular manufacturers to
design products which meet their performance requirements while
providing higher efficiencies and lighter weight phones.
RF Micro Devices, Inc. designs, develops and markets proprietary radio
frequency integrated circuits for wireless communications applications
such as cellular and PCS, cordless telephony, wireless LANs, wireless
local loop, industrial radios, wireless security and remote meter
reading. The Company offers a broad array of products, including
amplifiers, mixers, and modulators/demodulators, that represent 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
the Company's future plans, objectives, estimates and goals. These
statements are subject to numerous risks and uncertainties, including
probable variability in the Company's quarterly operating results,
dependence on a limited number of customers, manufacturing capacity
constraints, dependence on TRW Inc. as a supplier of GaAs HBT wafers and
risks associated with the Company's construction and operation of a
wafer fabrication facility, as well as other risks. These and other
risks and uncertainties are detailed in the Company's prospectus dated
June 3, 1997 included in the Company's Registration Statement on Form
S-1 (File No. 333-22625). These risks and uncertainties could cause
actual results and developments to be materially different from those
expressed or implied by any of the forward-looking statements included
in this quarterly report.
SOURCE: RF Micro Devices, Inc. |
