Rabbit with earnings.
IMO one great stock. Killer outlook, check out the inventory turn numbers.
RF Micro Devices, Inc. Announces Second Quarter Results
PR Newswire - October 20, 1998 17:26
GREENSBORO, N.C., Oct. 20 /PRNewswire/ -- RF Micro Devices, Inc. (Nasdaq: RFMD), an ISO 9001 certified provider of proprietary radio frequency integrated circuits (RFICs) for wireless communications applications, today reported revenue and net income for its fiscal 1999 second quarter ended September 30, 1998.
Revenue for the quarter was $31.4 million, an increase of 243% over revenue of $9.2 million for the corresponding quarter last fiscal year and an increase of 34% over the previous quarter's revenue of $23.4 million. Three- volt GaAs HBT power amplifiers dominated shipments. Much of the sequential sales increase this quarter was attributable to output from the Company's newly opened GaAs HBT fab. Increased sales of silicon products also contributed to the revenue increase.
Gross profit rose to $9.7 million, an increase of 125% versus the corresponding quarter last fiscal year and up 24% sequentially from the quarter ended June 30, 1998. The gross margin was in line with the Company's expectations at 31%.
Net income for the quarter was $2.36 million, or $0.14 per diluted share, compared to $816,000, or $0.05 per diluted share, for the second quarter of fiscal 1998, and $1.67 million, or $0.10 per diluted share, for the first quarter of fiscal 1999. Earnings were higher than expected primarily due to greater than planned shipments at the end of the quarter. Also, earnings were positively affected by tax accruals at a lower effective tax rate based on recommendations contained in a recently completed analysis by the Company's tax consultants. Based on this analysis, the Company currently anticipates that its effective tax rate will be approximately 12% for the remainder of the fiscal year.
During the quarter, inventory turns increased sequentially from the previous quarter from 2.6 to 3.2, despite the fact that in the second fiscal quarter, the inventory turns calculation for the first time included the Company's wafer fab inventories. Inventory turns have improved steadily this fiscal year, increasing from 1.0 a year ago.
The Company's GaAs HBT fab was fully qualified by a major customer in July and, with the rest of the Company, received ISO-9001 certification in August. Wafer starts, line yields and product yields have met or exceeded plan.
Comments From Management
David Norbury, President and Chief Executive Officer, stated, "The production qualification of our GaAs HBT fab has already had a positive impact, in spite of the fact that shipments from the fab are represented in only one month of the second quarter. We're seeing shorter fabrication cycle times and clear indications that chip costs will be much lower. Because of the increased capacity, lower wafer costs and improved cycle time, we believe the fab is moving the Company into a stronger competitive position.
"Looking forward, the Company's backlog and customer forecasted demand remain strong, giving RF Micro Devices excellent visibility through the remainder of the fiscal year. Interest in our GaAs HBT products, particularly power amplifiers, remains high, and the new fab is helping to eliminate the capacity constraints that previously limited our ability to support additional customers. For example, we are starting production of a new GaAs HBT power amplifier for one of Motorola's newest two-way voice pagers. Silicon products are also currently doing well, and silicon sales are roughly three times what they were a year ago. A recent example of our success with silicon products is the start of production shipments for two silicon components that will be in Sprint's recently announced PCS CDMA handset," stated Norbury.
RF Micro Devices, Inc., an ISO 9001 certified manufactuer, designs, develops and markets proprietary radio frequency integrated circuits (RFICs) for wireless communications applications such as cellular and PCS handsets, cordless telephones, wireless LANs, wireless local loop, industrial radios, wireless security and remote meter reading. The Company offers a broad array of products, including amplifiers, mixers, modulators/demodulators, and single-chip receivers, transmitters and transceivers 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 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, risks associated with the Company's operation of a wafer fabrication facility, dependence on TRW Inc. as a supplier of GaAs HBT wafers and economic turmoil in Asia or other areas of the world. These and other risks and uncertainties, which are described in more detail in the Company's Annual Report on Form 10-K 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, Inc.
Statements of Income
(In thousands)
(Unaudited)
Three Months Ended
September 30,
1998 1997
Total revenue $31,415 $9,158
Costs and expenses:
Cost of goods sold 21,690 4,826
Research and development 3,224 2,099
Marketing and selling 2,520 1,321
General and administrative 1,122 565
Total costs and expenses 28,556 8,811
Operating income 2,859 347
Interest income\(expense), net (183) 487
Income before income taxes 2,676 834
Income taxes (321) (18)
Net income $2,355 $816
Net income per share $0.14 $0.05
Diluted shares outstanding 17,323 17,350
RF Micro Devices, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
September 30, March 30,
1998 1998
Assets
Current assets:
Cash and cash equivalents $16,844 $16,360
Accounts receivable, net 14,908 6,993
Inventories 26,900 24,869
Other current assets 244 81
Total current assets 58,896 48,303
Property and equipment, net 57,954 41,308
Intangible assets 3,185 3,202
Other assets 1,178 551
Total assets $121,213 $93,364
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accruals $18,213 $11,027
Income taxes payable 808 --
Current obligations under capital leases 4,641 3,050
Total current liabilities 23,662 14,077
Obligations under capital leases,
less current maturities 16,700 12,524
Total liabilities 40,362 26,601
Shareholders' equity 80,851 66,763
Total liabilities and
shareholders' equity $121,213 $93,364
SOURCE RF Micro Devices, Inc.
/NOTE TO EDITORS: For more information about RF Micro Devices, via fax at
no charge, please dial 1-800-PRO-INFO and enter ticker symbol RFMD/
/CONTACT: Dean Priddy, Chief Financial Officer of RF Micro Devices,
336-664-1233; or Doug DeLieto, general info., Jordan Darrow, analyst info., or
Claudine Cornelis, media info., 212-661-8030, all of The Financial Relations
Board/
/Web site: rfmd.com
(RFMD)
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