Third quarter figures reflect record RF demand

RF Micro Devices has reported financial results for its fiscal 2007 third quarter ended 31st December 2006.

RF Micro Devices has reported financial results for its fiscal 2007 third quarter ended 31st December 2006.

Quarterly revenue grew approximately 35% year-over-year and approximately 14% sequentially to a record $281.1 million.

Operating income totalled US $66.1 million, on a GAAP basis, and $35.2 million, on a non-GAAP basis.

RFMD's December 2006 quarterly results reflected strength at the world's leading handset manufacturers, market share gains in RF semiconductors and record demand for RFMD's cellular transceivers and transmit modules.

RFMD believes it is benefiting from market share consolidation at its largest customers and robust overall unit demand for cellular handsets.

RFMD expects to grow market share in cellular products in the March 2007 quarter, driven by sales of Polaris cellular transceivers, as well as cellular power amplifier modules and transmit modules.

Current customer forecasts for the March 2007 quarter indicate a less-than-seasonal decline in the company's core cellular business.

Legacy 802.11b radio and Bluetooth components are expected to decline sequentially at a greater-than-seasonal rate, as a result of previously announced divestitures.

Revenue in the March 2007 quarter is currently expected to be in the range of $250 million to $260 million.

Quarterly GAAP net income in the March 2007 quarter, assuming the previously announced Jazz Semiconductor transaction closes in the March 2007 quarter, is currently expected to be in the range of $0.11 to $0.12 per diluted share, including estimated noncash share-based compensation expense and noncash amortisation of intangibles of approximately $3.8 million in the aggregate.

Quarterly nonGAAP net income is currently expected to be in the range of $0.10 to $0.11 per share, excluding noncash share-based compensation expense, noncash amortisation of intangibles and the impact of the Jazz Semiconductor transaction.

Bob Bruggeworth, President and CEO of RF Micro Devices, said: "In the December 2006 quarter, RFMD continued to execute on a proven growth strategy".

"The markets for our products remain strong and RFMD continues to benefit by bringing compelling, differentiated products to our customers".

"As we look to March and the balance of 2007, we expect our growth to be led by our industry-leading power amplifiers as well as our Polaris family of Total Radio transceiver solutions".

"We also anticipate that initial production ramps of our GaN-based products and our software-based GPS solutions will commence in 2007, which we expect will contribute positively to growth, diversification and profitability".

Dean Priddy, CFO and Vice President, Finance and Administration of RF Micro Devices, said: "The December 2006 quarter highlights RFMD's ability to drive continued revenue growth and improving profitability".

"We are demonstrating consistent, sustainable financial returns, and we are advancing toward our long-term operating model of 15% operating income".

"Our performance and outlook demonstrate the importance of investing in our future".

"With our expanded manufacturing capacity, we believe that RFMD is capable of continued revenue growth and reduced manufacturing costs".

"Finally, our balance sheet is equally as strong as our income statement, and RFMD's financial outlook has never been stronger".

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