RF Micro Device (RFMD) 13 3/8 -9/16: Company warns for Q4; sees revenues of $55 mln
and loss per share of $0.03-0.04 (including charges of $0.02-0.03); versus current consensus
estimate of $0.02 profit and $72 mln in revenues;(briefing.com)
RF Micro Devices Provides Update on Fiscal Fourth Quarter
PR Newswire - March 08, 2001 16:01
GREENSBORO, N.C., March 8 /PRNewswire/ -- RF Micro Devices, Inc. (Nasdaq: RFMD), a
leading provider of proprietary radio frequency (RF) integrated circuits for wireless communications
applications, today revised its guidance to the public concerning its fiscal 2001 fourth quarter, ending
March 31, 2001. The Company currently anticipates that revenue will be approximately $55 million
for the quarter, compared with the Company's previous guidance of approximately $72 million. RF
Micro Devices intends to announce fiscal 2001 fourth quarter results at 4:00 p.m. (ET) on April 17,
2001.
The Company's reduced guidance for the fiscal 2001 fourth quarter is due primarily to continued
weakness in certain wireless markets, handset inventory overhang and delays of new handset models,
which have forced push-outs of customer orders. Based on these factors and the costs associated with
the initial ramp-up of multi-chip module products, the Company currently anticipates a quarterly loss
per share of approximately ($0.03) to ($0.04). This revised guidance includes the earnings impact of
inventory reserves, which are expected to represent approximately ($0.02) to ($0.03).
David Norbury, president and chief executive officer, said, "In spite of the near-term environment,
we see significant opportunities for market share gains, especially in GSM and CDMA. We continue
to commit significant resources to our research and development efforts, and we have been pleased
by the results of these investments. Specifically, we are delighted to report that high-volume
shipments of a GSM power amplifier module began during the March quarter. This part is ramping
according to schedule and is expected to contribute to the Company's overall sequential revenue
growth in the June quarter. Although start-up costs associated with our multi-chip modules will
impact gross margins, we expect margins to improve over the course of fiscal 2002 as cost reductions
and yield improvement programs take their normal course."
Dean Priddy, CFO and vice president of administration, stated, "Our balance sheet remains strong
with sufficient cash to execute our business plan, and our R&D efforts remain on track with
significant progress being made in the areas of RFIC design, packaging and semiconductor processes.
The production ramp of our multi-chip modules continues on schedule, and we expect our module
products will continue to grow and will help restore sequential growth for the Company in the June
quarter."
Mr. Priddy concluded, "The Company has decided to increase reserves for slow-moving or obsolete
inventory due to phone cancellations and changing customer requirements. Our revised guidance of a
projected loss of ($0.03) to ($0.04) accordingly includes the earnings impact of these inventory
reserves, which we expect will represent approximately ($0.02) to ($0.03)."
RF Micro Devices will conduct a conference call at 5:00 p.m. (ET) today to discuss today's press
release and comment on the Company's outlook. The conference call will be broadcast live over the
Internet and can be accessed by any interested party at www.streetevents.com or www.rfmd.com .
RF Micro Devices, Inc., an ISO 9001-certified manufacturer, designs, develops, manufactures and
markets proprietary RFICs for wireless communications applications such as cellular and PCS
phones, cordless phones, wireless LANs, wireless local loop handsets, industrial radios, wireless
security systems and remote meter readers. The Company offers a broad array of products - including
amplifiers, mixers, modulators/demodulators, and single-chip receivers, transmitters and transceivers
- representing a substantial majority of the RFICs required in wireless subscriber equipment. The
Company's strategy is to focus on wireless markets by offering a broad range of standard and
custom-designed RFICs in order to position itself as a "one-stop'' solution for its customers' RFIC
needs. In the September 4, 2000 issue of FORTUNE magazine, RF Micro Devices was ranked
second among FORTUNE's "100 Fastest Growing Companies." RF Micro Devices, Inc. is traded on
the Nasdaq National Market under the symbol RFMD.
This press release contains forward-looking statements that relate to the Company's plans, objectives,
estimates and goals. Words such as "expects," "anticipates," "intends," "plans," "projects,"
"believes," and "estimates," and variations of these words and similar expressions, identify these
forward-looking statements. The Company's business is subject to numerous risks and uncertainties,
including probable variability in quarterly operating results, the rate of growth and development of
wireless markets, risks associated with the operation of wafer fabrication facilities, the Company's
ability to manage rapid growth and to attract and retain skilled personnel, variability in production
yields, raw material availability, manufacturing capacity constraints, dependence on a limited number
of customers and dependence on third parties. These and other risks and uncertainties, which are
described in more detail in the Company's Annual Report on Form 10-K and the Company's
Prospectus dated December 19, 2000 included in its Registration Statement on Form S-3
(Registration No. 333-49432) filed with the Securities and Exchange Commission, could cause actual
results and developments to be materially different from those expressed or implied by any of these
forward-looking statements.
RF MICRO DEVICES(R) and RFMD(R) are trademarks of RF Micro Devices, Inc. For further
information about RFMD, please visit our web site at rfmd.com .
SOURCE RF Micro Devices, Inc.
/CONTACT: Dean Priddy, Chief Financial Officer, 336-931-7152, or Doug
DeLieto, Dir., Investor Relations, 336-931-7968, both of RF Micro Devices; or
general info., Maura Gedid, or investor info., Jean Young, of The Financial
Relations Board, 212-661-8030/
/Web site: rfmd.com /
(RFMD) |
