RF Micro Devices Announces Record Revenues
/FROM PR NEWSWIRE CHICAGO 888-776-6551/
TO BUSINESS AND TECHNOLOGY EDITORS:
RF Micro Devices Announces Record Revenues
Quarterly Highlights:
-- Revenues Increase 15.2% Sequentially And 21.8% Year-Over-Year To A
Record $119.7 Million
-- Quarterly Earnings Per Share Rise To $0.04
-- Wireless Local Area Network (WLAN) Revenues Increase 35.7%
Sequentially To $8.0 Million
-- Company Fully Booked For December Revenues Of $128 To $132 Million
GREENSBORO, N.C., Oct. 15 /PRNewswire-FirstCall/ -- 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 fiscal 2003 second quarter, ended September 30,
2002.
Financial Results
Revenues for the quarter were approximately $119.7 million, a sequential
increase of approximately 15.2% versus revenues of $103.9 million for the
quarter ended June 30, 2002 and an increase of approximately 21.8% versus
revenues of $98.3 million for the corresponding quarter of fiscal 2002.
Revenues and earnings per share exceeded the Company's most recent estimates,
provided on September 24, 2002, of approximately $118 million in revenues and
earnings per share of approximately $0.03, primarily as a result of increased
demand in the final week of the quarter.
Gross profit for the quarter increased 11.0% sequentially to
$46.0 million, versus $41.4 million for the quarter ended June 30, 2002 and
increased 26.5%, versus $36.4 million for the prior year period. The year-
over-year and sequential increases in gross profit were primarily attributable
to the increase in the Company's revenues.
Other operating expenses in the September quarter totaled $0.6 million and
were related to startup costs associated with the Company's Beijing facility.
The Beijing facility became operational in the September quarter and,
subsequently, operating costs associated with the Beijing facility were moved
from other operating expenses to cost of goods sold. Approximately
$0.3 million of operating expenses associated with the Beijing facility appear
in cost of goods sold in the September quarter.
Net income for the quarter was $6.5 million, or $0.04 per diluted share,
based on a 0.5% tax rate, compared to net income of $1.5 million, or $0.01 per
diluted share, for the second quarter of fiscal 2002, based on a 14% tax rate.
This compares sequentially to net income of $2.3 million, or $0.01 per share
for the first quarter of fiscal 2003, based on a 1.6% tax rate.
Business Outlook And Financial Guidance
The Company is currently fully booked for the December 2002 quarter and
currently anticipates revenues of approximately $128 million to $132 million
and earnings per share of approximately $0.04 to $0.05, before the impact of
the proposed acquisition of Resonext, which was announced separately today.
Comments From Management
David Norbury, CEO of RF Micro Devices, said, "Our growth was driven
primarily by market share gains and diversification efforts. The introduction
of new, highly integrated power amplifier (PA) modules accelerated our growth
in GSM and CDMA PAs and helped to increase our sales to original equipment
manufacturers (OEMs), original design manufacturers (ODMs) and contract
manufacturers.
"Even as sales to our largest customer increased in absolute dollars in
the September quarter, sales to all other customers increased as a percentage
to more than half of revenues. Sales to our second largest customer grew
substantially, and the world's third largest handset manufacturer firmly
remained our third largest customer. Beyond OEMs, we saw continued strength
from ODMs and contract manufacturers who combine our components with reference
designs from industry leaders to achieve best-of-breed solutions. We believe
our gains among OEMs, ODMs and contract manufacturers increased our PA
leadership and give us leverage to sell our POLARIS(TM) TOTAL RADIO(TM)
transceiver into these markets.
"WLAN revenues grew 35.4% from the previous quarter, and we estimate our
WLAN components are currently included in greater than 20% of all WLAN
devices. While we've achieved the number two position in 802.11b
transceivers, our longer term goal is to be the leading supplier of WLAN
chipsets. To that end, we announced separately today our agreement to acquire
Resonext Communications, Inc. Resonext has assembled a world-class team
focusing on the 802.11a and multi-band segments of the WLAN market, and we
expect their capabilities will complement our 802.11b products and
significantly increase our total addressable market. We further believe
Resonext will help us accelerate to market an a/b/g multi-band chipset, and we
expect our strategic relationship with Jazz Semiconductor will give us a
distinct cost advantage in the WLAN market.
"Looking forward, the response to our POLARIS(TM) transceiver continues to
be very strong from ODM and OEM customers, as well as from baseband providers.
We've mated POLARIS(TM) to the handset basebands of three leading
communications companies, and we anticipate similar announcements in the near
future. Our strategy of partnering with the world's leading baseband
suppliers reflects our customers' requests for a best-of-breed handset
solution and significantly increases our competitive position in the handset
component market. We believe these achievements, combined with our ongoing
diversification efforts, position us to continue to grow in excess of our core
handset market."
Dean Priddy, CFO and vice president of administration, stated, "We're
pleased to have exceeded our revised September guidance for revenues and
earnings per share, driven by increased demand as we exited the September
quarter.
"Given our strong September revenue growth, we were able to increase
operating income by 300 basis points. We continue to take market share in our
core business, and we're more focused than ever on reducing costs.
Additionally, we are making significant investments in our future that we
believe improve our earnings potential going forward. This quarter, we are
releasing extremely small, highly integrated PA modules that reduce our cost
structure. In the March quarter, we plan to begin 6" GaAs HBT production,
which we expect will further reduce our cost structure. Additionally, our
technical team has identified techniques we believe will improve our test
yields by several points. On the design side, we continue to push for higher
levels of integration and are developing innovative low-cost packages that
have IP protection. Finally, the cost advantage we've negotiated through our
Jazz relationship reduces our cost of silicon components and will improve
overall profitability as we transition manufacturing to Jazz.
"The success we're seeing in our core business allows us to continue
making investments in multiple growing markets, including handset
transceivers, wireless LAN, Bluetooth, GPS, and advanced technologies like
gallium nitride. We remain convinced of the future of wireless markets and
believe our strategy gives us a high likelihood of success."
RF Micro Devices will conduct a conference call at 5:00 p.m. (ET) today,
October 15, 2002, to discuss fiscal 2003 second quarter results, comment on
the Company's outlook and discuss the proposed Resonext transaction. 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 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 "expect,"
"anticipate," "intend," "plan," "project," "believe," and "estimate," 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, 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 RF Micro Devices' most recent Annual Report on Form 10-K 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), RFMD(R) and POLARIS(TM) TOTAL RADIO(TM) are
trademarks of RFMD, LLC. All other trade names, trademarks and registered
trademarks are the property of their respective owners.
For more information about RFMD, please visit our website at
www.rfmd.com . |
