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24 January 2007


RFMD’s quarterly revenue rises 13.8% to a record $281m

For its fiscal third-quarter 2007 (to end-December 2006), RF Micro Devices Inc of Greensboro, NC, USA has reported record revenue of $281.1m (up 13.8% sequentially and 35.2% year-on-year). This reflects strength at leading handset makers, market share gains in RF semiconductors, and record demand for its cellular transceivers and transmit modules, says RFMD. Sales of POLARIS TOTAL RADIO solutions grew sequentially for the tenth consecutive quarter. RFMD believes it is benefiting from market share consolidation at its largest customers and robust overall unit demand for cellular handsets. For the nine months to end-December, revenue was $766m (up 41% on $544m the previous year).

Fiscal Q3/2007 net income was $59.3m, compared to losses of $20m last quarter and $14.7m a year ago. On a non-GAAP basis (excluding, for example, the discontinuation of WLAN chipset development efforts and a gain of $36.3m on December’s sale of Bluetooth assets to Qualcomm), net income was $34.3m (up from $23.7m last quarter and $16.4m a year ago). Cash flow from operations (excluding the Bluetooth transaction) was a record $64.8m.

For the March 2007 quarter, RFMD expects revenue of $250-260m, and to grow market share in cellular products, driven by growth in sales of POLARIS cellular transceivers, as well as cellular power amplifier modules and transmit modules. “We expect our growth to be led by our industry-leading power amplifiers as well as our POLARIS family of TOTAL RADIO transceiver solutions,” says president and CEO Bob Bruggeworth.

Current customer forecasts indicate a less-than-seasonal decline in the company's core cellular business. Legacy 802.11b radio and Bluetooth components are expected to decline sequentially at a greater-than-seasonal rate, as a result of divestitures.

“Initial production ramps of our GaN-based products and our software-based GPS solutions will commence in 2007, which we expect will contribute positively to growth, diversification and profitability,” adds Bruggeworth.

“We are advancing toward our long-term operating model of 15% operating income,” says Dean Priddy, chief financial officer and VP, finance and administration, said. “With our expanded manufacturing capacity, we believe that RFMD is capable of continued revenue growth and reduced manufacturing costs."