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RF Micro Devices Announces March 2009 Quarterly Results
- Cash Flow From Operations Totaled Approximately $29 Million
- RFMD Repurchased Approximately $22 Million Principal Amount Of Its 2014 Convertible Notes
- RFMD Has Reduced Its Net Debt Position By Approximately $125 Million In The Past Three Quarters
- Quarterly GAAP Diluted Loss Per Share Totaled ($0.19) And Quarterly Non-GAAP Diluted Loss Per Share Totaled ($0.10)
- RFMD Grew Sequentially In Multiple 3G Markets In The March Quarter
- RFMD Is Currently Booked For Sequential Revenue Growth And Expects Gross Margin Expansion And Approximately Breakeven Operating Profitability On A Non-GAAP Basis In The June Quarter
GREENSBORO, N.C., April 28 /PRNewswire-FirstCall/ -- RF Micro Devices, Inc. (Nasdaq: RFMD), a global leader in the design and manufacture of high-performance semiconductor components, today reported financial results for its fiscal 2009 fourth quarter ended March 28, 2009. RFMD's March quarterly revenue decreased approximately 14.7% sequentially to $172.3 million. GAAP gross margin decreased sequentially from 19.0% to 17.3%, and non-GAAP gross margin decreased from 22.6% to 19.8% during the same period, primarily as a result of lower factory utilization rates. Operating loss was approximately ($56.5) million on a GAAP basis and approximately ($21.4) million on a non-GAAP basis, reflecting reduced revenue and gross profit. Net loss was approximately ($49.4) million on a GAAP basis and approximately ($25.4) million on a non-GAAP basis.
RFMD believes excess customer inventories were reduced in the March quarter, and demand activity has stabilized. RFMD is currently booked for sequential growth in the June quarter and expects to outpace the rate of growth of its primary markets during the same period.
Comments From Management
Bob Bruggeworth, president and CEO of RFMD, said, "Despite the challenging macroeconomic environment, the RFMD team executed extremely well on a number of important Company goals. We took decisive steps to reduce manufacturing costs and operating expenses, and we lowered our requirements for future capital expenditures significantly.
"In the June quarter, we currently expect sequential revenue growth and significant gross margin expansion, resulting in approximately breakeven operating performance on a non-GAAP basis. Beyond the June quarter, we anticipate continued gross margin improvement, and we reiterate our gross margin target of 40%."
Dean Priddy, CFO and corporate vice president of administration of RFMD, said, "During the March quarter, RFMD continued to structure manufacturing costs and operating expenses in a manner that we believe will allow us to achieve our target operating model at reduced revenue levels while still investing in our growth. We idled our four-inch GaAs facility, which was less efficient and more costly than our six-inch facilities, and we reduced costs at our six-inch GaAs facility in the UK. We also announced plans to consolidate our Shanghai operations with our Beijing facility, and we expect this will reduce costs further beginning in the December quarter. We currently expect these steps and the benefit of the sharp increase in factory utilization will enable us to expand our gross margin significantly in the June 2009 quarter and in fiscal 2010.
"In addition, RFMD has reduced non-GAAP operating expenses by more than 30% year-over-year, and we are making progress converging on our expense model of 25% of sales. In total, RFMD has reduced annualized manufacturing costs and operating expenses by more than $130 million in the past four quarters. We are structured today to deliver superior financial leverage and significantly improved return on invested capital."
More at www.rfmd.com.