Agree with Roadkill..<business is cranking>-Buy the Dip...Let's put things in perspective...stock was in the mid 60's seven trading sessions ago...all chip stocks are running and RFMD's earnings were very good despite not meeting so-called whisper number of 19 cents...margins are increasing...bookings are increasing...new product lines are showing impressive growth...and major customers are purchasing more product from RFMD...
Read the forward looking statements from the below press release and tell me that RFMD is not a screaming buy on any pullback...I for one am a long term holder and there is nothing in this earnings report to change my mind...simply disappointed whisper because of component shortages...end of story! VTSS did the same thing last week...disappointed the street because they didn't meet whisper number and sold off $5 to $44 1/2 a share day after earnings...closed today at $53 7/16. Was it a buy at $44 1/2...I would say it was.
For those of you that sold your shares in the last couple of weeks...this is your opp to get back in or add to position. Of course, I am long the stock and please make your own investment decisions based ONLY on your own research.
FWIW,
Emac
Tuesday January 18, 5:06 pm Eastern Time
Company Press Release
SOURCE: RF Micro Devices, Inc.
RF Micro Devices, Inc. Announces Third Quarter Results
GREENSBORO, N.C., Jan. 18 /PRNewswire/ -- RF Micro Devices, Inc. (Nasdaq: RFMD - news), a leading provider of proprietary radio frequency integrated circuits (RFICs) for wireless communications applications, today reported financial results for its third quarter of fiscal 2000.
Revenues for the quarter ended December 31, 1999 were approximately $73.2 million, an increase of 76.4% over revenues of $41.5 million for the corresponding quarter of fiscal 1999 and an increase of 6.2% from revenues of $68.9 million for the quarter ended September 30, 1999. An increase in orders during the quarter, particularly for CDMA cellular and PCS power amplifiers, resulted in a book to bill ratio above one.
Gross profit rose to $35.6 million, versus $14.6 million for the corresponding quarter of fiscal 1999, an increase of 144%. Compared sequentially, gross profit rose $3.5 million versus $32.1 million for the quarter ended September 30, 1999, an increase of 10.9%. The gross profit margin for the quarter increased sequentially from the preceding quarter by 210 basis points to 48.7% from 46.6%. An increase in the percentage of revenues attributable to lower cost output from the Company's GaAs HBT wafer fab facility was the primary reason for the gross margin expansion.
Net income for the quarter was $12.6 million, or $0.15 per diluted share, compared to net income of $5.6 million, or $0.08 per diluted share, for the third quarter of fiscal 1999, and net income of $12.5 million, or $0.15 per diluted share, for the second quarter of fiscal 2000. Diluted shares outstanding for the three months ended December 31, 1999 were 86.1 million compared to 85.4 million for the three months ended September 30, 1999.
Comments from Management
David Norbury, President and Chief Executive Officer, stated, ``This was another good quarter for the Company. We had continued revenue growth and margin expansion. Revenue, however, could have been several million dollars higher were it not for component shortages from other vendors outside our control. This condition seems to be improving, but we will continue to monitor it this quarter. Orders for our relatively new GaAs HBT CDMA power amplifier products accounted for a surprisingly strong 23% of total orders. In addition, we introduced our first Silicon Germanium standard product during the quarter, the RF2461, a CDMA cellular receiver integrated front-end. This device has a unique combination of low noise figure, high input intercept point and low DC current drain in a very small package. Further, our penetration of the Japanese market continued with new handset models such as Sanyo's Sprint PCS CDMA phone, which is now in production.
``Looking forward, we are encouraged by a number of factors. Based on the most recent forecast from our largest customer, we currently expect that our business with them should grow significantly faster over the next twelve months than it has over the past twelve months. In addition, over the next several quarters we anticipate that at least two other large customers will for the first time begin high volume handset production using our products. Also, we believe that our aggressive increases in design staffing and GaAs HBT fab capacity have put RFMD in an excellent position to address the growing concern of handset OEMs over component shortages. Our four remote design centers are already helping us capture business that we otherwise couldn't address. And our first fab is continuing to increase its output and is now operating at approximately half of its ultimate capacity. The construction of our second, much larger fab, is currently on schedule, and assuming this trend continues, we should be able to begin producing wafers from this facility at the end of this calendar year. Overall, strong third quarter orders resulted in a book to bill ratio at quarter end above one, which gives us excellent visibility into our fourth quarter. We see opportunities today for revenue growth in our fourth quarter and we intend to pursue those vigorously throughout the rest of this calendar year. In particular, we believe that we are positioned to substantially improve our market share in CDMA, which is projected by industry analysts to be the highest growth air interface standard for the next few years.' |
