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Non-Tech : EARNINGS REPORTING - surprises, misses & more -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (465)	1/21/2001 10:07:55 PM
From: 2MAR$	Read Replies (1) \| Respond to of 762

RFMD ($22 lose) meets the Street, but significantly lowers 4th Qtr RF Micro Devices (RFMD) met reduced earnings expectations for its fiscal third quarter today, but announced that earnings for its fiscal fourth quarter would be sharply lower. The Greensboro, N.C. maker of radio frequency integrated circuits for wireless communications products said cancellations and delays of new models that use its module products has hurt the company. Because of that, revenues are expected to decline 10 percent from the third to the fourth quarter. The company posted earnings of $7.8 million, or 5 cents a share, for its fiscal third quarter, right on target with analysts' lowered expectations. In the year-ago quarter the company earned $12.6 million, or 7 cents per share. For the third-quarter RF Micro brought in revenues of $79.2 million, compared with $73.2 million in the same quarter last year. Revenues came in 21.8 percent below the previous quarter's $102.2 million. RF Micro executives project earnings in the range of 2 cents to 3 cents a share for the upcoming quarter, half of analysts' estimate of 6 cents. The company is anticipating a turnaround in the June quarter as new design wins begin shipping. "This is a negative surprise," said Taylor McGowan, an analyst with Friedman, Billings, Ramsey & Co. It's the second time in two quarters the company has had to offer lowered earnings guidance. In October, it lowered estimates for the December quarter by 20 percent. No analysts have downgraded the stock in the past few weeks, but 10 of 12 who cover the stock rate it as a "moderate buy" or "hold." The order cancellations most affecting the fourth quarter estimates were made within the last 10 days, RF Micro CEO David Norbury told analysts in a conference call this afternoon, and affected demand for older RF Micro technology, not the newer modules. On Jan. 9, Nokia (NOK) -- one of RF Micro's suppliers -- reported weaker than expected global sales for 2000. RF Micro executives did not say who canceled their orders. Norbury tried to put a positive a spin on the announcement, noting that design activity remains high and that design wins could put the company's chips in some hot new phones. In its release, RF Micro highlighted its alliance with Qualcomm (QCOM) to develop a series of power-amplified modules and the beginning of shipments to Motorola (MOT) for that company's Talkabout two-way data pager. "We think we'll have a very strong June quarter," Norbury said. RF Micro shares closed down $2.50, or 10 percent, to $22.38.