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To: Clint E. who wrote (34150)	9/10/2001 10:09:54 AM
From: Clint E.	Respond to of 69349

Monday September 10, 10:00 am Eastern Time RF Micro Devices sees Q2 at break-even (UPDATE: adds analyst comment) NEW YORK, Sept 10 (Reuters) - RF Micro Devices Inc. (NasdaqNM:RFMD - news), which makes radio frequency products used in mobile phones, on Monday said it expected to hit break-even in its second quarter on sharply higher revenues, up from its prior estimate of a loss. Shares rocketed up nearly 9 percent in early trading, as the company said it expects to report break-even results for the quarter ending Sept. 30 on revenues of $91 million, a 30 percent increase from the first quarter. Both projections are above the company's previous view of a a loss of 3 cents per share and sequential revenue growth of 10 percent. The company generated revenues of about $70.1 million in the first quarter ended in June. Analysts on average estimated RF Micro Devices would lose 4 cents per share in the second quarter, with estimates ranging from a loss of 3 cents per share to a loss of 5 cents per share, according to research firm Thomson Financial/First Call. Shares were trading at $24.75, up $2.48 in early Nasdaq trading, jumping as much as 13 percent shortly after the opening bell. RF Micro Devices cited increased orders for both its microwave monolithic integrated circuits and its module products. ``We are seeing increased order activity and revenue growth from multiple customers and across all major air interface standards,'' said RF Micro Chief Executive David Norbury. "We believe this growth is attributable to market share gains, increased end-user demand, and normalized inventory levels. But Lehman Brothers analyst Joseph To cautioned that the sales improvement may not be linked to a full-fledged recovery in the telecommunications market. ``This could be just inventory replenishment and seasonal factors,'' he said. ``We're not at a point where we can tell if this is true demand picking up.'' The announcement comes less than a week after Motorola (NYSE:MOT - news), one of RF Micro's larger customers, warned of a sales shortfall and said it would slash 2,000 jobs. Sweden's Ericsson (NasdaqNM:ERICY - news) and French telecom gear maker Alactel (NYSE:ALA - news) also issued gloomy outlooks recently. Some observers have expressed concern that Finland's Nokia, the world's largest mobile phone maker and RF Micro's biggest customer, will also fall prey to the global telecommunications slump.