Earlier this week,
RF Micro Devices, Inc.
) announced its decision to come together with
Silicon Laboratories, Inc.
) to deliver Sub-GHz solutions to cater to a wide range of smart
grid applications. This was done with the clear intent of
developing smart energy-efficient solutions for long-range RF
As per this agreement, RF Micro's RF6569 front-end module (FEM)
would be combined with Silicon Labs' EZRadioPRO(R) Si4464/63
transceivers to produce the cost-efficient and high-powered
RF6569/Si4464/63 reference design. This advanced Sub-GHz solution
would allow for better monitoring and energy-efficiency of
battery-run devices which include metering solutions, security and
home automation systems, and the like.
This integration will not only allow for market share
proliferation but also enhance satisfaction levels of RF Micro's
customers by providing them with improved and user-friendly smart
energy solutions. Silicon Labs would also benefit heavily from this
technological advancement and also solidify a long-lasting
relationship with RF Micro through this venture.
RF Micro declared its fourth quarter 2012 financial results on
April 24, 2012. Revenues for the quarter plummeted nearly 17%
sequentially to $187.9 million, primarily due to softness in the
Chinese and European markets. Hence, the company needs to take
proactive measures to counter these lingering downsides and boost
The company faces intense competition from well-capitalized
peers such as
RELM Wireless Corp.
The current Zacks Consensus Estimate for fiscal 2013 is 17 cents
per share. The company currently retains a Zacks #5 Rank, which
translates into a short-term 'Strong Sell' rating. However, we
presently maintain our 'Underperform' recommendation on the
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