Revenue yields have plummeted for
RF Micro Devices Inc.
(
RFMD
) for the December quarter of 2011. Total revenue came to around
$225 million against the previous estimates of $250 million.
Now we turn to the segmental overview. The Cellular Products
Group (CPG) revenues were disappointing coming in at $179 million.
Management stated that this was mainly attributable to the softness
in demand experienced in the Chinese market this quarter which
exacerbated the sales of the 2G devices greatly.
Moving on, the Multi-Market Products Group (
MPG
) had no favorable results either, recording around $46 million
only due to the end-market slowdown which pulled back the revenues
of the segment from achieving the company's prior forecasts.
The poor sales coupled with inefficient factory utilization and
stacked up inventories in this quarter have diminished RFMD's
current gross margin forecasts by 9 percentage points sequentially
for the December 2011 quarter.
As per Nasdaq.com, after the company's quarterly revenue
announcement, RF Micro's shares deteriorated 16% in after-hours
trading which again aggravates the areas of concern for RFMD and
its investors.
In spite of the clouded scenario currently jeopardizing RFMD's
growth prospects, management has been optimistic about its March
2012 quarter. It believes that the company would stand strong
against the winds of fiscal pressures of the macro environment and
also ameliorate handset demands and MPG's end-market sales. It
relies on the company's existing dominating market position,
product an d technological innovations and new contract awards to
be hopeful of a full scale recovery and commendable growth results
by fiscal year 2013.
However, further information on this subject is expected on RF
Micro's earnings release and conference call on January 24,
2012.
Operational since 1991 and headquartered in Greensboro, North
Carolina, RF Micro Devices Inc. is a world leader in manufacturing
and developing radio frequency devices and compound semiconductor
solutions. It primarily caters to the original equipment producers
and original design manufacturers in the US and other countries.
Currently, the company's greatest rivals are
Broadcom Corp.
(
BRCM
) and
Skyworks Solutions Inc.
(
SWKS
).
BROADCOM CORP-A (
BRCM
): Free Stock Analysis Report
RF MICRO DEVICE (
RFMD
): Free Stock Analysis Report
SKYWORKS SOLUTN (
SWKS
): Free Stock Analysis Report
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