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Last Update: 06-Jan-12 10:15 ET
RF Micro Device Down 21% As Q4 Sales Miss Expectations
RF Micro Device (RFMD $4.47 -1.17) is trading 21% lower after reporting that revenue fell short of expectations late yesterday.
After the close yesterday, the company reported that revenue for the December 2011 quarter was approximately $225 million (Capital IQ consensus $250 mln). In RFMD's Cellular Products Group (CPG), revenue was approximately $179 million, as sales of 2G components to China-based customers for entry-level handsets were below expectations.
In RFMD's Multi-Market Products Group (MPG), revenue was approximately $46 million, reflecting broad weakness in MPG's end markets. The Company noted customer demand softened during the December quarter, with end-of-quarter 2G demand significantly below customer forecasts. RFMD expects gross margin for the December 2011 quarter will decline approximately 9 points sequentially, due to the lower revenue, lower factory utilization, and inventory reserves.
Sales of RFMD's components for 3G/4G smartphones increased sequentially approximately 16% during the December 2011 quarter. Bob Bruggeworth, president and CEO of RFMD, said, "RFMD is navigating broadly lower demand in 2G handsets and softness across MPG's markets. Despite this challenging macro environment, RFMD is winning new business with industry-leading products and technologies, and we fully expect to grow in fiscal 2013, supported by market share gains, new product launches, and expanding relationships with both channel partners and customers." In the March 2012 quarter, RFMD anticipates normal seasonality in the handset industry and in MPG's end markets.
After the close yesterday, the company reported that revenue for the December 2011 quarter was approximately $225 million (Capital IQ consensus $250 mln). In RFMD's Cellular Products Group (CPG), revenue was approximately $179 million, as sales of 2G components to China-based customers for entry-level handsets were below expectations.
In RFMD's Multi-Market Products Group (MPG), revenue was approximately $46 million, reflecting broad weakness in MPG's end markets. The Company noted customer demand softened during the December quarter, with end-of-quarter 2G demand significantly below customer forecasts. RFMD expects gross margin for the December 2011 quarter will decline approximately 9 points sequentially, due to the lower revenue, lower factory utilization, and inventory reserves.
Sales of RFMD's components for 3G/4G smartphones increased sequentially approximately 16% during the December 2011 quarter. Bob Bruggeworth, president and CEO of RFMD, said, "RFMD is navigating broadly lower demand in 2G handsets and softness across MPG's markets. Despite this challenging macro environment, RFMD is winning new business with industry-leading products and technologies, and we fully expect to grow in fiscal 2013, supported by market share gains, new product launches, and expanding relationships with both channel partners and customers." In the March 2012 quarter, RFMD anticipates normal seasonality in the handset industry and in MPG's end markets.
