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  • georgi_020 georgi_020 Oct 23, 2007 7:19 PM Flag

    Here's what I'm talking about.

    I am very satisfied with the current quarterly report. Nothing surprising and the downside limited to more action than they can currently handle puts RF in great shape going forward. Here's what I'm talking about:

    Comments From Management

    Bob Bruggeworth, president and CEO of RF Micro Devices, said, "RFMD's record September quarterly revenue performance was driven by share gains, new product cycles, a strong customer base and a robust overall handset market. Our sequential revenue growth of approximately 21 percent demonstrates we are on a growth trajectory, and our growth in operating income illustrates our earnings power.

    "In the cellular handset market, RFMD enjoyed sequential growth during the September quarter with the leading handset manufacturers. We commenced high volume shipments of our POLARIS 3 RF solution and expanded our POLARIS customer base to include an additional top-tier handset manufacturer. We also grew sequentially in 3G front ends and extended our product leadership in 3G multimode devices. Beyond cellular, we increased shipments of wireless LAN front ends for handsets, MP3 players, gaming devices and other applications.

    "Our December guidance reflects strong market dynamics as well as continued share gains in RF semiconductors and an expanding leadership position in the industry's highest growth segments and customers. Based upon current forecasts and customer activity, we anticipate increasing demand for our high-performance RF solutions.

    "Finally, we'd like to remind investors that our special shareholder meeting to vote on the proposed Sirenza Microdevices transaction will be held October 29. Upon shareholder approval, we intend to close the transaction as soon as possible pending all regulatory approvals."

    Dean Priddy, CFO and corporate vice president of administration of RF Micro Devices, said, "RFMD's strong September results demonstrate the magnitude of the business we're winning and the opportunities we enjoy in calendar year 2008 for exceptional revenue growth and earnings leverage. RFMD achieved excellent cash flow in the September quarter, and our strong balance sheet is supporting our vision of being the world's largest, most diversified and best positioned RF company.

    "In the current quarter, RFMD is benefiting from higher-than-anticipated demand for POLARIS 3 and record demand for our transmit modules. The aggressive demand is temporarily impacting gross margin as POLARIS 3 startup yields are low, and the increase in demand for our transmit modules is causing higher-than-planned outsourcing of pHEMT switches.

    "As a remedy, we are driving steady improvements in POLARIS yields - even as we meet upside customer demand - and we anticipate yields will continue to improve throughout the quarter. Additionally, we continue to add GaAs manufacturing capacity, and we plan to reduce our reliance on outsourced pHEMT as that capacity comes online. Accordingly, we view both issues as temporary in nature and expect both to be margin levers in calendar year 2008."

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