Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : RF Micro Devices (RFMD) -- Ignore unavailable to you. Want to Upgrade?

To: BillHoo who wrote (793)	8/16/1999 9:18:00 PM
From: robert duke	Read Replies (1) \| Respond to of 4849

We may bounce back to 60 but I think we will stick at this level and maybe move higher to the 85 range until next week. Tomorrow should put us into the 80 range.

To: BillHoo who wrote (793)	8/17/1999 9:12:00 AM
From: Mr. Miller	Read Replies (2) \| Respond to of 4849

biz.yahoo.com The stock split is conditioned upon approval at the Company's annual shareholders meeting on July 27, 1999 of a proposed amendment to the Company's articles of incorporation to increase the Company's authorized common stock to 150 million shares. The stock split will be effected as a 100% stock dividend. Shareholders of record on August 2, 1999 will be issued a certificate representing one additional share of common stock for each share of common stock held on the record date. The additional shares will be mailed or delivered on or about August 18, 1999 by the Company's transfer agent, First Union Shareholder Services. Upon completion of the split, the Company will have approximately 79.1 million shares outstanding. 50-day moving average is about $70. The only thing that has slowed this company's stock price in its short life was TRW selling shares in May; otherwise, it has been, and continues to be, a great growth story. tscn.com Finally, an excerpt from the June analyst summary from CSFB: Still Plenty of Momentum and Upside to Business We believe that RFMD remains the best semiconductor pure play in the fast growing wireless market... While much of the focus recently has been on worries about what could go wrong with RFMD, we contend that RFMD is still in the early stages of its success story. We believe some positives that have been overlooked include: Motorola Products in Production, Waiting for MOT to Announce. As we have stated in several previous write-ups, we believe RFMD has already begun production of power amplifiers for new Motorola GSM handset models that should roll out this summer. Like most suppliers, though, RFMD needs to wait for Motorola to introduce its products before RFMD can announce its role. Flash Forecasts for Handsets Increased. After talking with Flash memory OEMs such as AMD, Intel, and Atmel, we believe handset forecasts have been increased roughly 10% to approximately 400 million units (roughly 90 million for Nokia alone). This is a double positive for RFMD as it clearly indicates the solid health of RFMD's end markets and reinforces that RFMD's largest customer is getting even stronger. Ericsson Due Next Christmas. While Motorola is expected to be the next major handset customer for RFMD, we believe that RFMD will be in several Ericsson handsets, beginning around Christmas. Therefore, the more significant revenue impact from these new handset customers should come into effect in CY2000. However, revenue from either customer is not included in the company's current guidance; likewise, only a small contribution is included in our model. Factory Expansion Continues, RFMD has Plenty of Capacity. RFMD is on track with its fab expansion. Although the company's fab had an original stated capacity of 30,000 wafer starts per year, the recent expansion and re-engineering of that fab could allow approximately 40-50,000 wafer starts per year. We estimate that that could generate $400-450 million in internally generated revenue--at least 25% more than we had originally assumed. Of that, we believe the company is running at 35-40% of the fab's eventual capacity. Furthermore, this estimate does not account for the amount of additional GaAs capacity that the company has externally with TRW and the silicon and SiGe capacity that the company has through its foundry agreement with IBM. Likewise, it does not include a second fab that we believe RFMD has approval to build. We estimate Fab2 could increase internal capacity another 20,000 wafer starts per year, equating to approximately an additional $100 million in incremental revenue. Lastly, while the company has plenty of capacity, we do believe that management has embedded significant amount of buffer capacity to handle large upside requests from its major OEMs (e.g. Nokia, Samsung, LG, etc.) Consequently, this is the reason RFMD is not trying to press for excessive near- term sequential revenue gains. Miller