RF Micro Devices, Inc. (NasdaqGS:RFMD - News) recently announced that it vehemently contends the patent infringement accusation made by Peregrine Semiconductor Corp. at the U.S. District Court for the Central District of California.
This suit filed against RF Micro is based on the infringement on patents of silicon-on-insulator technology used by the company related to radio-frequency integrated circuits (RFICs) of its chips manufactured.
RF Micro is quite confident about getting exculpated from this allegation. The company’s determination not to succumb to any patent infringement charge vindicated its belligerent stance.
Peregrine Semiconductor Corp. is a supplier of RF and mixed signal communicator ICs catering mainly to the mobile wireless, broadband CATV/DTV and communications infrastructure markets.
RF Micro recently averred in its December quarter financial results that it is hopeful of strong gains in the next quarter as the company weathers the pervasive winds of fiscal pressures. It intends to do this on the backs of its existing dominating market position, new product and technology advances and contract awards ameliorating overall yields.
We believe that RF Micro stands in quite a formidable position to grapple with the present scenario for which it has been taken to court. This fighting spirit is perhaps quite imperative as the company is on a mission to make up for an enervated last December quarter by delivering adulatory results in its upcoming March quarter.
At present we have an Underperform recommendation on RF Micro. The stock currently carries a Zacks #5 Rank, which translates into a short-term rating of Strong Sell.
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