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

To: Jack Hartmann who wrote (3162)	8/15/2000 6:27:28 PM
From: Jack Hartmann	Read Replies (1) \| Respond to of 4849

Had to dig out my notes from this call. Trying to read between the line. Cable modem revs up 56% sequentially and the comment MOT ramping up. Hmmmm, T gives MOT a huge cable modem contract. (Now the modem side is less than 10% of the rvs with handsets acconting for 90%.) The only question that remains is who is SUPPLYING MOT with cable modem component. I'm betting on RFMD. Any thoughts? Got some at $70 in the after hours. (Now $69, of course) Jack

To: Jack Hartmann who wrote (3162)	10/17/2000 6:02:35 PM
From: Jack Hartmann	Read Replies (3) \| Respond to of 4849

RFMD Conference Call notes – Dean Norberry - Anoounced Plans To Manufacture Indium Phosphide, A Next-Generation Semiconductor Process Technology – feels superior to any SiGe process - CDMA module was qualified by QCOM and started shipping - Feel module sales was increase as a percentage of sales in the future - Test facility in NC will increase test rate by factor of Five - Quarterly Sales 102.2M, up 4.1% sequentially q2q, and up 48.3% y2y, 68.9M year ago - HBT/SI was 92% of rev, handsets 90% of rev, 60% internationally? - 16% CDMA, 37% TDMA, 16% GSM, (doesn’t sound right for CDMA) - 7% Korea of rev - Gross Margin 50.8% vs 51.5% last quarter, up 2.6% q2q - 14.4% is R&D, 3.3% in G&A - Cash 324M in cash. From 291M in debt offering. - 61.2M inventory vs 50.9M last q, increase in component parts - Dave - Order shortfall in sept quarter were disappointing - 4-5cents for next quarter - don’t think it is a trend. Need to see suppliers work off exceess inventory. Next quarter in March will return to sequential growth. - We can surpass what InGap (Indium Gallium) can do by going with Indium Phosphide, - Integrated modules is the wave of the future. Feel going to pay off big time. - Convinced market going to take off in six month with next generation phones - Continue penetration of key customer. Very strong in TDMA, CDMA, and GSM. - MOT potential is good in GSM - Siemens is a good developing GSM customer - QCOM module should benefit from China Unicom announcement. - This quarter is the bottom. - We expect to continue to gain market share. Q&A – Indium Phosphide – PCS market is target and module technology which will be centered around PAs - Bluetooth have RFMD PAs for 100mW products. Will be a silicon device. - Delays were orders pushouts from ERICY, also from two other customers due to slippages and tech problems. Sagem (France) is seeing softness of orders due to inventory. June was 10% of rev and fell off significantly in Sep quarter. - Think rebound in handset will be March quarter. We know that RFMD is designed in several customer products. - Customers have announced that inventory of handset is the problem vs. RFMD components backed up. - Korea should be flat next couple quarters. Had two Korean customers come in with expedited delivery requests but not big orders. Quite a bit of interest in our SiGE products. - ASPs declines 10-12%. We intend to be competitive in the area. - Market share is strong with in NOK in the CDMA/TDMA. - Disappointed on slow rampup with MOT - Shipping in CDMA ERICY phone so will increase in this market share. - We were late getting one of our products out – not specific - NOK was same rev%, MOT did increase rev some, ERICY did increase some rev also. - Most order push outs were for the upcoming Dec quarter - 410M –425 handsets this year, and 500-560M next year. - Feel 48% increase in FY2002 revs from FY2001 - Gross Margins for December should pull back some as modules products ramp up. - Expenses will not be lower due to Indium Phosphate expenditure. Only feel this a one quarter blip. - Fab plant 70K wafers/year. New plant is not being expedited as fast due to order pushout. - Product that was late was a complicated module. Feels revs coming from it in March quarter. - Didn’t see a surge in demand from NOK price cuts. Those were GSM phones and we are not big with NOK in this area - Siemens revs will show in December and ramp nest two quarters after this. - Feel we have small inventory risks. Small NOK inventory that will be taken down next two quarters. - Wireless e-mail and small/lighter weight phones will drive phone sales. A lot of the new phones will be smaller - QCOM modules shipped so be this quarter. SiGE ramping up with IBM for fab. Seeing a lot of interest and trying to meet demand. - Indium Phosphate will be done in new fab plant and will be 4 inch. - Sequentially revs Dec-Mar should be up double digits perhaps 15-20% but dependent on phones selling - Order pushouts was mainly GSM or its derivative, some TDMAs - Late module shipment impacted only one customer - Modules are easier for handsets mfrs to work with. A lot less tuning and tweaking to be done. As modules incorporate PA and receiver front end, they are less interchangeable between suppliers. - Up 10M in inventory. Mostly raw material was the increase. Mostly components for modules. - NOK outlook is positive for March quarter and also QCOM in March. - Upcoming quarter is 20% less revenue. Probably a user of cash next quarter also. - CAPEX for CY2001 – completing new wafer facility. - NOK says they will continue to gain market share. We are diversified with other customers who would gain market share too. - Wireless Lan is still late development stage. Bluetooth will be a handset play initially and then go into notebooks later. - No design wins in Bluetooth since still working with customers on products - CAPEX 22-23M and depreciation 6.6M was for this quarter - 27M in total operating expenses this upcoming quarter Jack