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 first quarter ended June 28, 2008. Quarterly revenue increased approximately 13.7% year-over-year and approximately 9.0% sequentially to $240.5 million. Operating loss was approximately ($39.7) million on a GAAP basis, reflecting restructuring charges related to the strategic restructuring announced on May 6, 2008. Non-GAAP operating income was approximately $2.3 million. Non-GAAP gross margin improved sequentially 240 basis points during the quarter, primarily driven by the sequential increase in MPG revenue. Consistent with guidance provided on May 6, 2008, RFMD's June 2008 quarterly revenue reflected broad-based strength in MPG and a 10% sequential increase in sales of cellular front ends.
RFMD® Product Group Highlights
CPG
-- Sales of cellular front ends increased 10%, or approximately three times the industry's growth rate in the June quarter
-- RFMD shipped production volumes of cellular front ends to all five of the world's leading handset OEMs
-- RFMD is experiencing increased design and bookings activity, driven by multiple customers
-- RFMD is on track to eliminate approximately $75 million in annual CPG product development expenses by the end of the calendar year
MPG
-- MPG significantly exceeded RFMD's revised revenue target of 20% sequential growth in MPG revenue
-- All five MPG product lines -- Aerospace & Defense, Broadband/Consumer, Standard Products, Wireless Infrastructure and Wireless Connectivity -- grew sequentially
-- The sequential increase in MPG revenue was a significant contributor to RFMD's 240-basis point improvement in non-GAAP gross margin
-- June 2008 quarterly results reflected new "soft synergies" from the Sirenza Microdevices acquisition, including supply chain savings and volume buying power on component parts
-- MPG released 27 new products and is on track to release more than 100 new products in fiscal 2009
-- RFMD is on track to exceed its fiscal 2009 revenue goal of $250 million in MPG revenue
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