(COMTEX) B: RF Micro Devices Announces Fiscal 2002 Fourth Quarter and Ye
B: RF Micro Devices Announces Fiscal 2002 Fourth Quarter and Year-End Results
Quarterly Highlights: - Revenues Total $100.4 Million - Gross Profit Margin
Increases To 40.8% - Quarterly Earnings Per Share Equal $0.02 - Modules
Increase To 51% of Total Revenues - Wireless Local Area Network (WLAN) Revenues
Represent 3% of Total Revenues - Company Anticipates June Quarter Revenues Of
Approximately $107 Million To $110 Million and Earnings Per Share of $0.02 to
$0.03
GREENSBORO, N.C., Apr 16, 2002 /PRNewswire-FirstCall via COMTEX/ -- RF Micro
Devices, Inc. (Nasdaq: RFMD), a leading provider of proprietary radio frequency
integrated circuits (RFICs) for wireless communications applications, today
reported financial results for its fourth quarter and fiscal year ended March
31, 2002.
Financial Results
Revenues for the fiscal 2002 fourth quarter were approximately $100.4 million
and were essentially flat, compared sequentially to revenues of $100.6 million
for the prior quarter ended December 31, 2001. Quarterly revenues increased
approximately 82.5%, compared to revenues of $55.0 million for the corresponding
quarter of fiscal 2001. Revenues exceeded the Company's prior estimate of $90
million to $95 million for the quarter, which was provided on January 15, 2002,
because components shipped to the handset and WLAN markets exceeded original
customer forecasts.
Gross profit margin improved 210 basis points sequentially to 40.8% from 38.7%
in the prior quarter. During the corresponding quarter of fiscal 2001, gross
profit margin was 24.7%. Gross profit for the quarter increased 5.2%
sequentially to $40.9 million, versus $38.9 million for the quarter ended
December 31, 2001, and increased 201.3%, versus $13.6 million for the
corresponding quarter of fiscal 2001. The sequential increases in gross profit
and gross profit margin for the quarter were primarily attributable to increased
capacity utilization of the Company's wafer fabrication facilities (fabs) and
improved yields.
During the March quarter, other operating expenses totaled $0.5 million, versus
$2.6 million in the December 2001 quarter. The sequential decline in other
operating expenses was due primarily to the Company's second wafer fab costs,
which were partially included in other operating expenses in the December 2001
quarter and are now fully absorbed in cost of goods sold. Other operating
expenses currently represent startup costs related to the Company's facility in
China, which is expected to be complete in the fall of 2002.
Other (expense) income, net equaled a loss of ($6.0) million, compared to a loss
of ($1.9) million in the prior quarter. The increase in other (expense) income,
net was primarily attributable to a $3.6 million write down of a $5.0 million
investment in the equity of a privately held company. Offsetting this
non-operating charge was an unplanned tax benefit of $2.5 million, primarily
related to additional carryback benefits allowed under the Job Creation and
Worker Assistance Act, which was signed into law on March 8, 2002.
As a result of these factors, net income for the quarter was $2.8 million, or
$0.02 per diluted share, compared to net loss of $6.8 million, or ($0.04) per
share, for the fourth quarter of fiscal 2001. This compares sequentially to net
income of $3.5 million, or $0.02 per diluted share, for the third quarter of
fiscal 2002, based on a 14% tax rate.
Business Outlook And Financial Guidance
Based on current backlog, the Company currently expects revenues of
approximately $107 million to $110 million and earnings per share of
approximately $0.02 to $0.03 for the quarter ending June 30, 2002.
Comments From Management
David Norbury, president and chief executive officer of RF Micro Devices, said,
"We are very pleased to report a March quarter that exceeded our expectations
and outperformed the handset market. While industry analysts forecast handset
sales in the March quarter would be down seasonally approximately 10% to 15%
versus the December quarter, we were able to achieve March revenues that were
essentially flat with our December results. We believe we accomplished this by
gaining share in the power amplifier market and by growing revenues in emerging
growth markets.
"In power amplifiers, we believe our opportunities for market share gains are
across multiple customers. We are particularly encouraged by favorable design
activity with the second, third, fourth and fifth leading handset manufacturers,
whose combined market share is approximately one-third of the handset market.
While none of these customers currently represents more than a tenth of our
quarterly revenues, we anticipate a number of them could become 10% customers in
fiscal 2003, based upon current forecasts and production orders.
"Of note, a large number of new production orders from these customers relate to
next generation, or "2.5G," handsets, which are the handsets expected to spark
replacement purchases this year.
"Additionally, we continued to work very closely with many other participants in
the handset market, including emerging OEMs, handset designers and contract
manufacturers, each of which seek a variety of products, from our discrete PA
solutions to our POLARIS(TM) TOTAL RADIO(TM) transceiver.
"Beyond handsets, we are very encouraged by the initial success we have had in
other high-growth markets, such as wireless LAN. We estimate our market share of
the wireless LAN market has surpassed 10% after just one full quarter of volume
production shipments. The wireless LAN market is forecast by industry analysts
to grow approximately 40% this year, and we currently project we will capture an
increasing share of the market. Other markets we are targeting include Global
Positioning Systems (GPS), satellite radio, wireless infrastructure,
Bluetooth(TM), fiber optic datacom and complete integrated radio transceivers.
Both in handsets and beyond, we continue to invest substantial dollars in high
growth opportunities.
"In terms of order activity, the strength we saw in the March quarter has
continued to date into the June quarter. Given our backlog, we currently
anticipate revenues in the June quarter of $107 million to $110 million, which
would constitute record quarterly revenues for RF Micro Devices. Beyond June, we
believe we are seeing signs in the handset market that are consistent with a
strong second half, and we believe we are positioned extremely well for
continued growth in fiscal 2003."
Dean Priddy, CFO and vice president of administration, said, "Throughout fiscal
2002, we have focused on reducing our cost structure, particularly for our
module products. Yields continue to improve, cycle times are decreasing and
capacity utilization in our fabs has risen rapidly. Currently, our first fab is
operating at nearly full capacity and production is increasing rapidly in our
second fab. To increase capacity, we are selectively adding both equipment and
manpower, and these additions are helping us meet surge demand in the near-term.
Longer term, given the dramatic increase in wafer starts, we have decided to
begin the transition to six-inch wafer production. Once complete, six-inch wafer
production will give us additional capacity and further lower our cost
structure."
RF Micro Devices will conduct a conference call at 9:00 a.m. (ET) tomorrow,
April 17, 2002, to discuss fiscal 2002 fourth quarter results 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 . The call will also be available live by dialing (303) 262-3300.
RF Micro Devices, Inc., an ISO 9001-certified manufacturer, designs, develops,
manufactures and markets proprietary radio frequency integrated circuits (RFICs)
primarily for wireless communications products and applications such as cellular
and PCS phones, base stations, wireless LANs, and cable television modems. 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. 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 RF Micro
Devices' 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. RF Micro Devices' business is subject to numerous
risks and uncertainties, including variability in quarterly operating results,
the rate of growth and development of wireless markets, risks associated with
the operation of wafer fabrication facilities, its 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
RF Micro Devices' most recent Annual Report on Form 10-K and its prospectus
dated March 18, 2002 included in its Registration Statement on Form S-3
(Registration No. 333-74578) 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 RFMD, LLC. All other
tradenames, trademarks and registered trademarks are the property of their
respective owners.
For more information about RFMD, please visit our website at www.rfmd.com.
BLUETOOTH is a trademark owned by Bluetooth SIG, Inc., U.S.A. and licensed for
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