Ah, here's the full earnings PR. Indeed, it's charges causing the forecasted March miss. They actually seem pretty optimistic:
>>GREENSBORO, N.C., Jan. 21 /PRNewswire-FirstCall/ -- RF Micro Devices, Inc. (Nasdaq: RFMD - News), a leading provider of proprietary radio frequency integrated circuits (RFICs) for wireless communications applications, today reported financial results for its fiscal 2003 third quarter, ended December 31, 2002.
Financial Results
Revenue for the quarter was $145.8 million, an increase of 45.0% versus revenue of $100.6 million for the corresponding quarter of fiscal 2002, and a sequential increase of 21.8% versus revenues of $119.7 million for the quarter ended September 30, 2002. The Company's financial results for the quarter reflect market share gains in its core market of power amplifiers (PAs) for cellular handsets and continued strength in the WLAN market.
Gross profit for the quarter increased 39.9%, versus $38.9 million for the prior year period, and increased 18.3% sequentially to $54.4 million, versus $46.0 million for the quarter ended September 30, 2002. The year-over-year and sequential increases in gross profit were primarily attributable to the increase in the Company's revenues.
Net income (loss) is presented according to generally accepted accounting principles (GAAP) and on a pro forma basis. Pro forma results exclude special items related to the Resonext transaction and the retirement of an interest rate swap agreement related to the synthetic lease, both of which were previously announced.
On a GAAP basis, net loss for the quarter was $5.2 million, or ($0.03) per diluted share, based on a 0.01% tax rate, compared 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. This compares sequentially to net income of $6.5 million, or $0.04 per share for the second quarter of fiscal 2003, based on a 0.01% tax rate.
On a pro forma basis, net income for the quarter was $13.4 million, or $0.08 per diluted share, based on a 0.0% tax rate, compared 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. This compares sequentially to net income of $6.5 million, or $0.04 per share for the second quarter of fiscal 2003, based on a 0.01% tax rate.
The special item related to the Resonext transaction totaled $10.9 million and was comprised of a $10.5 million one-time, non-cash charge related to acquired in-process R&D, which has been expensed in accordance with Financial Accounting Standards Board (FASB) Statement No. 141, and $0.4 million in operating expenses incurred at the end of the December quarter. The one-time special item related to the retirement of the interest rate swap agreement totaled $7.8 million.
Business Outlook And Financial Guidance
RF Micro Devices currently has backlog to support March 2003 quarterly revenue of approximately $135 million. Expenses in the March quarter related to the acquisition of Resonext currently are expected to be approximately $8.1 million, of which approximately $2.1 million will be non-cash. The Company currently anticipates March 2003 quarterly earnings per share ranging from a net loss of ($0.01) to break even.
RF Micro Devices believes order visibility has improved and currently anticipates revenue, margins and earnings will show improvement in the June quarter and will improve sequentially thereafter throughout the remainder of the calendar year.
Comments From Management
Bob Bruggeworth, president and CEO of RF Micro Devices, said, "We increased revenues and profits in the December quarter by successfully executing on all facets of our growth strategy. We strengthened our number- one position in PAs, we increased our dollar content in handsets, we continued expansion into new markets with new products and we continued to strengthen our blue-chip customer base. We entered the quarter with record expectations, and we exited the quarter with record revenues. The entire organization has reason to be proud of our performance.
"Our growth rate was roughly four times that of the overall handset market in calendar 2002, and we continue to expect growth in excess of the handset market as we execute on our proven growth strategy. In our core market of handsets, not only are we actively taking share against major competitors, we are also benefiting from market share consolidation as our customers tighten and streamline their supply chains. Additionally, in new markets such as wireless LAN, cellular transceivers, Bluetooth(TM), GPS and satellite radio, we continue to see significant growth opportunities in calendar 2003.
"We are seeing increased customer interest in products combining our product offerings and expertise in multiple wireless markets. For example, our combined expertise in wireless LAN and cellular applications uniquely positions us to drive growth as wireless LAN and cell phones converge. Furthermore, we believe our expertise in GPS and Bluetooth will bolster that growth, as these technologies begin to coexist in handsets as well. We are optimistic about the future, and we believe our competitive position is stronger than it's ever been."
Dean Priddy, CFO and vice president of administration, said, "Our operations employees have done an outstanding job ramping production to meet better-than-expected customer demand. We've increased throughput in our factories by about 50% in two quarters while improving inventory turns. Our efforts to integrate the supply chain from our customers to our suppliers is giving us improved order visibility and the ability to respond more rapidly to changes in demand. We believe supply chain integration has also accelerated the cash conversion cycle. Cash flow from operations was $23.1 million and our receivable days sales outstanding were under 39 days.
"We currently anticipate revenue, margins and earnings will show continued improvement throughout the calendar year beginning in the June quarter. The markets we serve are growing, and we have reason to expect continued market share gains and manufacturing cost reductions, all of which give us confidence in achieving our financial objectives."
RF Micro Devices will conduct a conference call at 5:00 p.m. (ET) today, January 21, 2003, to discuss fiscal 2003 third 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 by going to www.rfmd.com and clicking on "Investor Info."
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) and RFMD(R) are trademarks of RFMD, LLC. All other trade
names, trademarks and registered trademarks are the property of their
respective owners.
BLUETOOTH is a trademark owned by Bluetooth SIG, Inc., U.S.A. and licensed for
use by RF Micro Devices, Inc.
For more information about RFMD, please visit our website at www.rfmd.com .
<Pre>
Financial Tables Follow
RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
2002 2001 2002 2001
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Total revenue $145,813 $100,551 $369,490 $268,874
Costs and expenses:
Cost of goods sold 91,387 61,658 227,629 189,461
Research and
development 24,408 19,055 70,029 52,047
Marketing and selling 9,076 7,458 26,222 20,828
General and
administrative 4,658 3,888 13,635 10,631
Other operating
expense 10,500 2,550 11,853 13,568
Impairment of
long-lived assets - - - 6,801
Total costs and
expenses 140,029 94,609 349,368 293,336
Operating income (loss) 5,784 5,942 20,122 (24,462)
Interest (expense)
income, net (10,909) (1,871) (16,342) (3,180)
(Loss) income before
income taxes ($5,125) $4,071 $3,780 ($27,642)
Income tax expense
(benefit) 58 570 129 (4,289)
Net (loss) income ($5,183) $3,501 $3,651 ($23,353)
Net (loss) income
per share, diluted ($0.03) $0.02 $0.02 ($0.14)
Weighted average
outstanding diluted
shares 170,642 175,759 174,752 165,292
PRO FORMA RECONCILIATION
Net income (loss) ($5,183) $3,501 $3,651 ($23,353)
Research and
development (A) 208 - 208 -
Marketing and
selling (A) 147 - 147 -
Other operating
expense (B) 10,500 - 10,500 -
Interest income,
net (C) 7,755 - 7,755 -
Pro forma net
income (loss) $13,427 $3,501 $22,261 ($23,353)
Pro forma net Income
(loss) per
share, diluted $0.08 $0.02 $0.13 ($0.14)
Weighted average
outstanding
diluted shares 174,974 175,759 174,234 165,292
(A) Operating expenses associated with Resonext Communications incurred at
the end of the December 2002 quarter.
(B) One-time, non-cash charge related to acquired in-process R&D (expensed
in accordance with Financial Accounting Standards Board (FASB)
Statement No. 141).
(C) One-time special item related to the retirement of an interest rate
swap agreement.
RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31,
2002 March 31,
(Unaudited) 2002
ASSETS
Current assets:
Cash and cash equivalents $161,376 $157,648
Short-term investments 101,740 186,526
Accounts receivable, net 62,306 56,373
Inventories 63,012 38,734
Other current assets 12,267 16,689
Total current assets 400,701 455,970
Property and equipment, net 313,513 221,679
Goodwill 118,404 34,525
Non-current investments 60,747 2,797
Intangible assets, net 49,396 11,754
Other assets 2,325 2,275
Total assets $945,086 $729,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $52,031 $31,599
Other current liabilities 29,421 -
Current obligations under capital leases 2,208 3,319
Total current liabilities 83,660 34,918
Long-term debt, net 295,454 294,248
Obligations under capital leases, less current
maturities 10 169
Other long-term liabilities 1,785 9,980
Total liabilities 380,909 339,315
Shareholders' equity:
Total shareholders' equity 564,177 389,685
Total liabilities and shareholders' equity $945,086 $729,000
<<
Last I looked, RFMD was down a tenth in AH trading. I can see RFMD outperforming the market, but that is not saying much. Looking for a bounce in both, but for RFMD to be more stable than the indexes.
Cheers, Tuck |
