What do you all feel is the revised book value for WFR?
Prices on wafers must be really great now. You'd think the base cost of making a chip has never been more favorable. Must be some sectors that are being rewarded with product demand and low cost supply. DSP's?
Here was an interesting note where a chip maker actually beat estimnates due to unexpected increase in supply of wafers, but that was for GaAs. Is it possible to slowly shift production from silicon to GaAs?
RF Micro Devices, Inc. Expects Higher Than Anticipated Revenue and Earnings
PR Newswire - September 15, 1998 16:12
GREENSBORO, N.C., Sept. 15 /PRNewswire/ -- RF Micro Devices, Inc. (Nasdaq: RFMD), a leading provider of proprietary radio frequency integrated circuits (RFICs) for wireless communications applications, announced today that its fiscal 1999 second quarter revenues and net income would be higher than anticipated.
Revenues for the quarter ended September 30, 1998 are expected to be between $28 and $30 million, versus the current consensus analysts' estimates of $25.6 million. The Company noted that the increase in revenue was attributable to higher than anticipated wafer availability from its primary GaAs HBT supplier, accelerated qualification of a second high volume product produced in its own GaAs HBT wafer fab facility and higher than projected demand from its Korean customers.
The Company anticipates its gross margin percentage will be consistent with consensus analysts' models in the low-30% range. Compared to the previous fiscal quarter, expenses as a percentage of sales will likely be lower by 1.5 to 2.0 percentage points. Also, interest expense associated with the Company's wafer fab facility will likely be less than anticipated as the facility was considered fully operational for accounting purposes for only one month out of the quarter.
Net income is currently expected to be between $1.6 and $1.8 million, or $0.09 to $0.10 per share based on 17,500,000 diluted shares, compared to approximately $1.0 million or $0.06 per share according to current consensus analysts' estimates. The Company will release fiscal 1999 second quarter results on October 20, 1998.
The Company also noted that its GaAs HBT wafer fabrication facility continues to operate at or ahead of schedule in terms of wafer starts and line yields. Increased output from the Company's wafer fab is expected to enable the Company to add additional high volume customers early in calendar year 1999 and is also expected to contribute to improved gross margins beginning in the quarter ending December 31, 1998.
RF Micro Devices, Inc. designs, develops and markets proprietary radio frequency integrated circuits (RFICs) for wireless communications applications such as cellular and PCS handsets, cordless telephones, wireless LANs, wireless local loop, industrial radios, wireless security and remote meter reading. The Company offers a broad array of products, including amplifiers, mixers, modulators/demodulators, and single-chip transceivers that represent 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 the Company's plans, objectives, estimates and goals. These statements are subject to numerous risks and uncertainties, including probable variability in the Company's quarterly operating results, dependence on a limited number of customers, manufacturing capacity constraints, risks associated with the Company's operation of a wafer fabrication facility, dependence on TRW Inc. as a supplier of GaAs HBT wafers and economic turmoil in Asia or other areas of the world. These and other risks and uncertainties, which are described in more detail in the Company's 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.
SOURCE RF Micro Devices, Inc.
/NOTE TO EDITORS: For more information about RF Micro Devices, via fax at
no charge, please dial 1-800-PRO-INFO and enter ticker symbol RFMD./
/CONTACT: Dean Priddy, Chief Financial Officer of RF Micro Devices,
336-664-1233; Doug DeLieto, general info., Jordan Darrow, analyst info., or
Claudine Cornelis, media info., 212-661-8030, all of The Financial Relations
Board/
Regards,
Mark |
