From the C.C ...how the Frck are they winning !! where is gain in market share ? why Rfmd
share price declines while competitors increase ..certainly the shareholders are not winning !!
we're going to introduce over 100 new products. That's the most in the history of the Cellular Products Group. Multi-Market Products Group, we are introducing new products everyday. We've got the throttle to the floor when it comes to product development. We're playing to win, and we are winning, and that's going to result, diversified revenue growth, margin expansion, superior free cash flow and return on invested capital and excess of our weighted average cost of capital.
Rfmd always gets excited when the factory starts to fill up. The problem with this position is twofold.
1. Rfmd does nothing about the downtimes when the factory is running less than 50% capacity. The lack of margin is explained away by market conditions.
2. Rfmd tries to sell the old chips when the market cycles up in demand but those chips no longer carry any margin. That is where Rfmd sits right now.
The above scenario has repeated several times in the last six years so Priddy should know by now the formula is not working in down markets and Rfmd likely misses a good part of the upswing in the market.
Only now, with a megatrend going out three years or more, can Rfmd hope to have a long enough upcycle in demand to be able to see their newer products ship at intended margins.
This is not rocket science and fab wrong has been wrong for a long time. GE engineers would have worked on perfecting the incandescent bulb if Jack Welch had not put the company on a different track. Rfmd needs a corporate revolution but old blood does not like change..