Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: TimeToMakeTheInvs who wrote (3950)	4/12/2001 4:07:16 PM
From: tuck	Read Replies (1) \| Respond to of 4849

I was beginning to kick myself for no longer writing calls against RFMD in the 20s. Now they're giving hopeful guidance since they seem to be competing well in a contracting market now, and suddenly there's a glimmer. The loser, Hitachi: >>CHICAGO, April 12 (Reuters) - RF Micro Devices Inc. (NASDAQ:RFMD), a maker of radio-frequency products used in cell-phones, on Thursday saw its stock surge more than 27 percent, thanks to stronger-than-expected new business with its largest customer. RF Micro, based in Greensboro, N.C., saw its stock streak up to $17.75, and was still up more than 21 percent, or $2.94, at $16.87 in afternoon Nasdaq trading. Its daily high was the highest the stock has been in two months, but still about 75 percent off its 52-week high of $70.75. Its year low is $8.75. "We've seen a little bit better-than-anticipated demand for these GSM power amplifier modules" with Finland's Nokia (NOK1V) (NYSE:NOK), which accounts for 50 to 60 percent of RF Micro's sales, company spokesman Doug DeLieto said. He also reiterated guidance RF Micro previously gave analysts, saying the company would see 20-percent sequential growth in its fiscal 2002 first-quarter from an expected $55 million in fourth-quarter revenues. The company will report fourth-quarter results on April 17. RF Micro's first-quarter growth expectations are based largely on the strength of its power amplifier module sales, especially its new GSM amplifier module. The power amplifier within a cell phone amplifies the signal before it's transmitted through the antenna to the base station. Until this new GSM amplifier business with Nokia, RF Micro had not been getting high-volume GSM business with the world's No. 1 cell phone maker, DeLieto said. Meanwhile, its traditional TDMA, or time division multiple access, amplifier business had been slowing. "This does represent a pretty significant opportunity for us to take share in GSM," he said. RF Micro also has another similar GSM amplifier for Nokia that will begin production in June, DeLieto said. Analysts said the business was good news for RF Micro, which has lost some of its traditional business recently. "The street hasn't been believing very much the handset story. The environment has been very negative," Needham & Co. analyst Pierre Maccagno. "The positive side of this (RF Micro) story is here we have confirmation of orders." He said the new business doesn't mean the cell-phone market is recovering as much as RF Micro is taking business from competitors, specifically Japan's Hitachi. Most of RF Micro's business with Nokia has been TDMA amplifiers, while it has previously been weak with GSM amplifiers, Maccagno said. "This is a huge opportunity for them to displace Hitachi," said Maccagno, who estimated Hitachi's annual GSM amplifier business with Nokia at 36 million units. "It's a stock that's been beaten down a lot and these people are anxious to be on the early side if you see something coming back," U.S. Bancorp Piper Jaffray analyst Samuel May said. DeLieto also reiterated the earnings guidance the company gave last month. RF Micro warned on March 8 its fiscal fourth-quarter earnings and revenues would be lower than expected as slowing demand in the wireless market has led to a pile-up in inventory reserves. The company expects to see an operating loss of about 3 to 4 cents a share for the quarter ending March 31, while revenues should be about $55 million. Analysts had then expected RF Micro to earn 2 cents a share on $72 million in revenues.<< snip Cheers, Tuck