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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (40144)	8/28/2003 2:02:44 AM
From: Johnny Canuck	Read Replies (2) \| Respond to of 69305

Adam Harkness RFMD Presentation notes Aug 6,2003: -greater than 40 percent market share -increase GM last Q, expect to increase next Q -Now only seeing 3 main PA manufacturers -number 1 in PA -$400 mil in space, driving growth -2 nd growth area transceivers -Handset opportunities, -$2.25 in PA per handset -cellular transceiver $3.50 per handset -Wireless LAN -GPS If all items included in handset then can get $20 per handset PC Business: -PA still an opportunity for wireless LAN's -can reduce cost from $5.00 to $3.00 -can reduce power consumption and increase throughput working with INTC on RF transceivers for PC systems. Automotive Business: -GPS -also statilite radio -GPS chip $20 -Bluetooth for hand free access $4.00 End market size 1.1 billion right now Positioning for a 6.6 billion business with other segments Yields improved and margins coming up as a result last Q doubling starts in 6 inch wafers converting from one wafer supplier to another which will reduce cost: Jazz new supplier 50 percent dollars of R&D being invested in new area 2 chips for 802.11 A and G, new products Still investingin GaNi3 business seeing some replacement product traction, some issues with SARS in China big believer in Bluetooth Financials: Qaurterly rev nice year over year gains, June Q most difficult Q, SARS, inventory, political problems seeing recovery, seeing recover in OEM & ODM, all standards TSM, GSM, CDMA have seen share gains saw bottom in GM in March -saw PA in TDMA and CDMA GM bottom Sept Q:will see more GM improvement, yields improvement and 6 inch coming on line Seeing strong comeback in CDMA and TDMA business conservative on GM on earning conference call as a result guided to 4 cent lost this Q, rev side turns business already this Q GM tracking ahead of plan balance sheet strong: 265 mil issued 230 mil in convertible notes also in July replaced 3 3/4 debt with 2 1/4 debt with bond buy back 43.8 day in DSO, strongest in industry good shipment linearity inventory turns were 6 last year, looking for 8 core buisness is profitable, but investments are driving losses goals for company: 15 percent growth in sales would drop 15 cent in EPS to bottom line if went from 84 percent utilization to 88 percent, would drop 4 cent to bottom line new product businesses if they break even would add 28 cent to the bottom line 12 to 15 cent gain if we can improve efficiencies by doing own assembly work Edge transceiver demand coming from customers Total expect 73 to 76 cent to drop to bottom line if all come through [Harry: You want to take this guidance with a gain of salt, but if you cut the numbers in half and give multiple of 20 you get a fair value of $7.60. It does not seems as overpriced on that basis. A lot of if's here, but long term there revenue model is looking better than I expected given the guidance from earlier in the year. There is a lot of expectation built into this stock at this level. They need pretty good execution to get these results.] goal to be a $1 bil company from a $500 mil company NOK number 1 customer MOT number 2 customer Samsung number 3 customer Number 1 market share in PA, not vision of company though Want to grow to $1 billion, have made investments have product that will start to come on line in next 12 months Currently addressable market is $1.1 bil, with new products will be $6.6 bil market Handsets, Wireless LAN and Bluetooth will all grow this year [Harry: If you hold this stock I would at least take to the time to hear the presentation. It is only 30 minutes. media.corporate-ir.net ]