RF Micro's December Revenues Dip - Analyst Blog
06 Janeiro 2012 - 9:00AM
Zacks
Revenue yields have plummeted for
RF Micro Devices
Inc. (RFMD) for the December quarter of 2011. Total
revenue came to around $225 million against the previous estimates
of $250 million.
Now we turn to the segmental overview. The
Cellular Products Group (CPG) revenues were disappointing coming in
at $179 million. Management stated that this was mainly
attributable to the softness in demand experienced in the Chinese
market this quarter which exacerbated the sales of the 2G devices
greatly.
Moving on, the Multi-Market Products Group
(MPG) had no favorable results either, recording around $46 million
only due to the end-market slowdown which pulled back the revenues
of the segment from achieving the company’s prior
forecasts.
The poor sales coupled with inefficient
factory utilization and stacked up inventories in this quarter have
diminished RFMD’s current gross margin forecasts by 9 percentage
points sequentially for the December 2011 quarter.
As per Nasdaq.com, after the company’s
quarterly revenue announcement, RF Micro’s shares deteriorated 16%
in after-hours trading which again aggravates the areas of concern
for RFMD and its investors.
In spite of the clouded scenario currently
jeopardizing RFMD’s growth prospects, management has been
optimistic about its March 2012 quarter. It believes that the
company would stand strong against the winds of fiscal pressures of
the macro environment and also ameliorate handset demands and MPG’s
end-market sales. It relies on the company’s existing dominating
market position, product and technological innovations and
new contract awards to be hopeful of a full scale recovery and
commendable growth results by fiscal year 2013.
However, further information on
this subject is expected on RF Micro’s earnings release and
conference call on January 24, 2012.
Operational since 1991 and
headquartered in Greensboro, North Carolina, RF Micro Devices Inc.
is a world leader in manufacturing and developing radio frequency
devices and compound semiconductor solutions. It primarily caters
to the original equipment producers and original design
manufacturers in the US and other countries. Currently, the
company’s greatest rivals are Broadcom Corp.
(BRCM) and Skyworks Solutions Inc. (SWKS).
BROADCOM CORP-A (BRCM): Free Stock Analysis Report
RF MICRO DEVICE (RFMD): Free Stock Analysis Report
SKYWORKS SOLUTN (SWKS): Free Stock Analysis Report
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