news digest ♦ compound semiconductor ♦ financial news
quarterly operating income totaled $40.6 million, and quarterly net income was $28.1 million, or $0.10 per diluted share.
In addition, the firm has generated approximately $46 million in quarterly free cash flow and $189 million in trailing 12 month free cash flow. The firm has also retired $110 million of convertible notes ($10 million recorded in June quarter and $100 million to be recorded in September
RFMD currently believes the demand environment in its end markets remains strong and supports the following expectations and projections:
-- RFMD currently expects September quarterly results will be in line with June quarterly results -- RFMD expects to continue ramping new customer programs to offset declining end-of-life legacy product -- RFMD currently expects fiscal 2011 cash taxes will increase to $26-$28 million, compared to $14.1 million in fiscal 2010, reflecting RFMD’s improved profitability -- RFMD currently expects fiscal 2011 free cash flow will be consistent with fiscal 2010 free cash flow of $177 million -- RFMD currently expects to achieve a positive net cash position as early as the September quarter -- RFMD currently expects revenue growth to accelerate in fiscal 2012 as major programs at new and existing customers ramp into volume production
Bob Bruggeworth, president and CEO of RFMD, said, “RFMD’s markets are expanding quickly with the deployment of broadband data across both fixed and mobile networks. This is accelerating the demand for always-on mobile data and for the exciting new devices and applications that connect us to our data and to each other.
RFMD says the demand over the last quarter was strong for both the cellular products group (CPG) and multi-market products group (MPG), with both product groups achieving year-over-year and sequential revenue growth. Not taking into account the firm’s largest customer, RFMD sales increased by 77% compared to the same time last year, adding $270 million in annualized incremental revenue.
RFMD also delivered some 92 new and derivative products for diverse market segments including SmartEnergy, high-performance WiFi, 3G/4G wireless infrastructure, fixed and mobile broadband, and 3G/4G smart phones.
The company also secured major design wins during the quarter, including handset and smart phone platforms, SmartEnergy, high-power GaN and 4G wireless infrastructure applications at new and existing customers expected to ramp to volume beginning in calendar 2011
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www.compoundsemiconductor.net August/September 2010
“RFMD is a major beneficiary of these secular trends. We benefit as fixed broadband infrastructure is deployed, as demand grows for these mobile broadband devices, and as these devices increasingly offer more modes of wireless connectivity. Over the past four quarters RFMD has outpaced the market, expanding sales and diversifying our customer base significantly to drive strong earnings and cash flow. On the strength of our product leadership and diversification initiatives, we believe we’ve secured the major design wins that will power the next wave of our revenue growth.”
Dean Priddy, CFO and VP of administration of RFMD, said, “RFMD is currently on track to grow revenue and achieve double-digit earnings growth this fiscal year. We have made significant progress in broadening our customer base and generating superior free cash flow, which has strengthened our balance sheet and given us the flexibility to fund our growth strategies. We are on an annualized run rate exceeding last year’s free cash flow of $177
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