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27 July 2006


RFMD hits $238.3m quarterly record

RF Micro Devices Inc (RFMD) has reported its latest quarterly financial results, ended June 30, 2006. Revenue grew approximately 50% year-over-year and 5.5% sequentially to a record $238.3m, and operating income increased to $14.0m, on a GAAP basis, and $20m, on a non-GAAP basis. RFMD says the results reflect strength in the handset manufacturing market, market share gains in RF semiconductors and increased market demand for the company's cellular transceivers and transmit modules.

Bob Bruggeworth, RFMD’s president and CEO, said: "RFMD is successfully executing on a plan to grow quarterly revenue and deliver improved quarterly operating income. During the June quarter, we took share in cellular transceivers and transmit modules, and we expect this trend to continue. In fact, we are currently booked for sequential revenue growth in the September quarter with the world's four largest handset manufacturers. In the second half of calendar year 2006, we expect revenue, margins and earnings will be favorably impacted by momentum at our leading customers, as well as strong handset demand, new product launches and continued design wins."

Revenue growth was across all three of RFMD’s business units: Cellular, Wireless Connectivity, and Infrastructure.

In the cellular sector, RFMD extended its market share in power amplifiers and GPRS/EDGE transceivers. Sales of the company’s Polaris Total Radio solution increased to around 28% of the total quarterly revenue. This was the RFMD’s eighth consecutive quarter of growth in transceiver shipments, and the company is currently booked for continued sequential growth in transceiver shipments in the September 2006 quarter.

RFMD’s Wireless Connectivity business unit saw increased sales of WLAN components for handsets and gaming devices. In this sector, the company is ramping its SiW3500 Bluetooth solution to support an EDGE-enabled mobile device powered by Danger Inc and manufactured by Sharp Corporation.

For infrastructure applications, RFMD demonstrated 120-watt Gallium Nitride (GaN) WCDMA high-power transistors at the recent IEEE MTT-S tradeshow and has now commenced sampling GaN power amplifiers.

Due to anticipated market share gains in RF semiconductors, led by cellular transceivers and transmit modules, RFMD forecasts revenue in the September 2006 quarter to be in the range of $240m to $250m, representing sequential growth of approximately 1% to 5% and year-over-year growth of approximately 35% to 41%.

Dean Priddy, CFO and vice president, finance and administration at RFMD, said: "We believe the handset industry will experience healthy growth this year of at least 15% and we're positioned to grow well in excess of the overall market. The demand for our GaAs technology has increased rapidly with transmit modules, WCDMA and WLAN in handsets, as well as complete front-end GaAs solutions for the emerging 802.11n PC market. Our 40% increase in fab capacity is expected to be completed in the December quarter and is a supply chain competitive advantage for RFMD. Coupled with this investment we are more than doubling our assembly capacity in Beijing by the December quarter, giving us substantial cost and cycle time advantages.”

Visit: http://www.rfmd.com