RF Micro Devices Provides Updated Guidance

July 07, 2005 by Jeff Shepard

RF Micro Devices Inc. (RFMD, Greensboro, NC), a provider of radio frequency (RF) integrated circuits for wireless communications applications, provided updated guidance for its fiscal 2006 first quarter ended June 30, 2005. RF Micro Devices reported that it experienced stronger-than-expected order activity in the June quarter for its power amplifiers, POLARIS™ TOTAL RADIO™ transceiver chipsets, and Bluetooth® products and believes its wireless end markets are continuing to show strong growth rates.

The company currently anticipates June quarterly revenue will be approximately $159.3 million on a GAAP basis, which includes a cash charge of $5.0 million incurred during the last week of the June quarter that will be accounted for as a reduction in revenue. Without the charge, the company's June quarterly revenue is expected to have been approximately $164.3 million. The charge is related to the company's POLARIS Radio Module at a top-tier customer for one handset model and does not impact shipments of POLARIS 2 EDGE chipsets, which continue to ramp as expected. To date, the company has shipped more than seven million POLARIS chipsets.

During its April 26, 2005, quarterly conference call, RF Micro Devices forecasted June 2005 quarterly revenue in the mid-$150 million range. The company currently continues to expect its gross profit margin will improve sequentially in the June quarter, even after giving effect to this charge. The company will formally announce its June 2005 quarterly results in more detail, and provide September 2005 quarterly guidance, on July 26, 2005.