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

To: lazarre who wrote (2060)	1/18/2000 7:26:00 PM
From: Roadkill	Read Replies (1) \| Respond to of 4849

Interesting 3Q00 report. I haven't listened to the CC, and won't be able to until later, but I did notice that gross margins rose from about 2.1% from 46.6% in 2Q to 48.7% in 3Q, which is very good considering the slight revenue shortfall due to component shortages. I also noted that R&D rose from 10.7% of revenues in 2Q to 12.4% of revenues this quarter, perhaps due to the new product introductions. The CC should explain that in more detail. Also, SG&A was up from 9.6% in 2Q to 11.0% of revenues in 3Q, perhaps also due to new products. RFMD may also have budgeted higher raw R&D and SG&A costs based upon an assumed larger revenue model that did not come to fruition due to component shortages. (I'm comparing these numbers to last quarter rather than 3Q99 due to the huge ramp-up since last year. I believe that last quarter is a better indicator.) In any event, the rather dramatic increases in R&D and SG&A cost RFMD about $2.3 MM in operating income. Fully taxed, that is worth about 3 cents a share. What I'm trying to say in a long-winded manner is, regardless of the revenues and EPS being a little light, the business is cranking. I'll hold until I see a fundamental change, even if the momentum players do flee tomorrow. RK