RFMD's revenue grows to record level
For its fiscal first-quarter 2014, RF Micro Devices Inc has reported record revenue of $316.3m, up 23.6% on $256m last quarter and up 8% on $293m a year
Revenue for RFMD's Multi-Market Products Group (MPG) was $55m (17.5% of total revenue), up 5% sequentially across multiple markets, supported primarily by 4G wireless infrastructure and high-performance Wi-Fi in smartphones and enterprise applications.
Revenue for RFMD's Cellular Products Group (CPG) was $261m (82.5% of total revenue). During the quarter, CPG secured new customer engagements for RF Fusion (a complete RF front end solution for 4G world phones and tablets, for production later this year). CPG also supported the ramp of multiple 3G/4G smartphones, driving 3G/4G to more than 90% of CPG revenue (up from 85% last quarter and 80% the prior quarter) and 2G to below 10% (falling from 15% last quarter and 20% the prior quarter). In addition, CPG enabled the proliferation of envelope tracking (ET) power amplifiers across multiple smartphone platforms, leading to ET power management integrated circuit (PMIC) revenue being anticipated across multiple basebands later this year.
"RFMD is benefiting from multiple long-term secular trends that are in the early stages of adoption," comments president & CEO Bob Bruggeworth. "They are supporting a wave of connectivity and interconnectivity that is playing out globally across a broad range of wireless air standards," he adds.
"RFMD is enjoying positive market dynamics creating sustainable, long-term opportunities for growth and diversification, and we are positioned better than ever to translate our diversified revenue growth into superior financial performance," reckons Bob Bruggeworth.
"In the September quarter, RFMD anticipates broad-based revenue growth supported by new smartphone ramps, content increases in LTE, deepening penetration of 802.11 ac, and continued broad market strength," says Bruggeworth. Considering the demand environment in its end-markets, for its fiscal second-quarter 2015 (to end-September 2014) RFMD expects revenue to grow 9% on last quarter to $345m. "We expect our diversified revenue growth to outpace the growth rate of our underlying markets and drive continued robust growth in RFMD's gross profit, operating profit, and earnings per share," adds Bruggeworth. Gross margin should be roughly flat to up 25 basis points sequentially. Operating expenses are expected to be relatively unchanged. Diluted earnings per share (EPS) should be about $0.27.
"RFMD is executing to a financial model, and we are committed to delivering gross margin that is consistently industry-leading with operating expenses at 20% of revenue," says Priddy. "We continue to unlock new opportunities to expand margin, and we anticipate continued robust improvements in operating income, earnings per share, and free cash flow."
