News

28 April 2010

 

Strong demand gives RFMD 51.4% increase in revenue year-on-year

For its fiscal fourth-quarter 2010 (ended 3 April 2010), RF Micro Devices Inc (RFMD) of Greensboro, NC, USA has reported revenue of $260.8m, up 4% on fiscal Q3’s $250.3m (rebounding from that quarter’s dip of 1.8% from the prior quarter) and up 51.4% from the low of $ 172.3m a year ago.

According to generally accepted accounting practice (GAAP), operating income was $36.6m (up from last quarter’s $ 33.6m) and net income was $26.7m (up from last quarter’s $ 24.9m). Gross margin was 37.7%, up from last quarter’s 36.4% and just 17.3% a year ago.

Full-year fiscal 2009 results were revenues of $978.4m (up 10% on fiscal 2008’s $ 886.5m), operating income of $106.4m and net income of $71m.

The company commented that demand in fiscal Q4/2009 was strong for products from both its cellular products group (CPG) and multi-market products group (MPG) operations. The breakdown of revenues between the two divisions is 80% CPG and 20% MPG.

During the financial year, both operations introduced a record number of products: 40 new ones at CPG and 350 new/derivative devices at MPG. Asia and 3G devices led the CPG sales, while MPG saw a ‘broad-based market recovery’, with the defense, point-to-point radio, SmartEnergy and cable television (CATV) sectors in the lead.

RFMD is already ‘fully booked for sequential revenue growth’ for the next quarter (fiscal Q1/2011), ending in June. Transceiver revenues (impacted by sales to Nokia) are expected to increase and then ‘ramp down’ in fiscal Q2/2011 (to end September). For the whole of fiscal 2011, revenues are expected to increase over the year just ended. As an aim for the future, the firm wants to increase gross margin to about 42% and operating margin to about 17%. Capital expenditure (e.g. $35.5m for R&D in fiscal Q4/2010) is not expected to change dramatically from 2–3% of sales in the coming period, and the company sees no need for extra fab capacity.

The MPG business is rolling out it gallium nitride (GaN) process with hopes of worldwide deployment in such sectors as cable infrastructure, military communications, private mobilized radio, emergency radio, and military and civil radar applications. A GaN-based broadband transmission product is aiming at CATV operators upgrading their network infrastructure, with increased bandwidth for video/data services and potential energy savings of more than 20%.

		2010				2009	FY'10	FY'09
		Q4	Q3	Q2	Q1	Q4
Ended		3-Apr	2-Jan	3-Oct	27-Jun	28-Mar	3-Apr	28- Mar
Revenue	$ million	260.8	250.3	254.8	212.5	172.3	978.4	886.5
Revenue increase	Q/Q %	4.2	-1.8	19.9	23.3	-14.7
Revenue increase	Y/Y %	51.4	23.9	-6.2	-11.6	-21.9	10.4
Gross margin	%	37.7	36.4	35.9	34.8	17.3	36.3	24.5
Operating income	$ million	36.6	33.6	24.1	12.1	-56.5	106.4	-869.3
Net income	$ million	26.7	24.9	14.6	4.8	-49.4	71.0	-887.9

See related items:

RFMD grows revenue 24% year-on-year

RFMD’s revenue grows 20%, boosted by CATV growth of 70%

Greater-than-expected revenue returns RFMD to profit

RFMD seeing better-than-expected order activity

RFMD still generating cash despite further 15% drop in revenue

Search: RFMD

Visit: www.rfmd.com

The author Mike Cooke is a freelance technology journalist who has worked in the semiconductor and advanced technology sectors since 1997.