news digest ♦ RF Electronics broad-based adoption of RFMD’s best-in-class RF solutions.
GAAP gross margin for the June 2013 quarter was 31.9 percent, quarterly operating income was $3.2 million, and quarterly net income was $1.6 million, or $0.01 diluted EPS versus $(0.07) in Q1 Fiscal 2013.
Financial Outlook and Business Commentary
RFMD’s financial outlook reflects the company’s current expectations for the timing of key customer program ramps. The company currently believes the demand environment in its end markets for the September 2013 quarter to increase to approximately $305 million to $310 million and sequential gross margin expansion
Bob Bruggeworth, president and CEO of RFMD, said, “RFMD is capitalising on the expanding demand for data-rich mobile applications, and our products are at the heart of the high- speed data connections enabling always-on, broadband mobility - both in the devices and consumer premises equipment, and within the supporting network infrastructure. We are executing on multiple opportunities to increase our dollar content generation-over-generation in the world’s leading smartphones, and we are benefiting from increasing participation in the highest volume entry-level platforms and reference designs.
“Looking forward, we believe we are strategically well positioned this fiscal year to deliver record revenue and improving financial performance, given our expectations for diversification, content growth, category expansion, and market share gains, combined with the benefit of new customer product ramps.”
Dean Priddy, CFO and vice president of administration of RFMD, added, “RFMD is delivering diversified revenue growth and margin expansion. In the September quarter, we expect to see continued revenue growth, margin expansion, and operating leverage. Our key margin improvement initiatives are all either on or ahead of schedule and we remain confident in achieving 300 to 400 basis points in gross margin improvement this year. We expect this will result in significant financial leverage throughout the year.”
IQE revenues balloon by 80 percent
The development of products including gallium nitride materials and compound semiconductors on silicon projects are progressing well
IQE plc, a global supplier of advanced semiconductor wafer products and wafer services to the semiconductor industry, provides a trading update for the six months ended 30th June 2013.
The Board expects first-half performance to be ahead of market expectations, with first-half revenues approaching £63 million, EBITDA in excess of £10 million and net debt below £39 million. This represents revenue growth of over 80 percent,
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www.compoundsemiconductor.net August/September 2013
and EBITDA growth of over 150 percent compared with the first half of 2012. Sales growth was primarily driven by the wireless division, which included contributions from the RFMD and Kopin acquisitions.
The wireless market has continued to grow in line with expectations, driven by the increasing adoption of more sophisticated communication devices including 4G and LTE smartphones and tablets, and newly launched dual band wifi (802,11ac). These advanced products demand the highest levels of RF performance which can only be delivered by compound semiconductor enabled front end solutions.
The integration of the RFMD and Kopin acquisitions has been successfully completed as planned. IQE says work to realise the projected synergies is progressing well. The Board will provide a full update on this progress with the Group’s half year results.
The photonics business is also making good progress with several applications in transition from research and development into production. Notably, these include a number of advanced laser (VCSEL) products for consumer, industrial and medical applications such as: optical communications devices for short range optical links; data centres and broadband delivery; optical devices for gesture recognition; gaming and cosmetic applications; and lasers for projection, medical and defence applications.
Advanced CPV solar technology acquired through the investment in Solar Junction and the exclusive seven year license agreement, is now in the final stages of qualification. The Group remains on track for this business to achieve end customer qualification and move into volume production during H2 2013.
The development of advanced products including GaN materials and the Group’s compound semiconductors on silicon projects are progressing well. They are building a platform for further diversified growth in the rapidly growing markets for energy efficient devices, such as LEDs and power semiconductors over the next few years.
The Board is confident that the Group remains on track to achieve market expectations for the full year.
Drew Nelson, Chief Executive of IQE, said, “Our key markets have continued to demonstrate robust growth, driven predominantly by high levels of demand for 4G and LTE enabled smartphone and tablet products, along with accelerating requirements for photonic products and advanced sensor applications. Additionally, requirements for energy- efficient third-generation CPV solar products, Solid State Lighting (SSL) and power efficient GaN devices, continue to increase strongly.”
“Our transactions with Solar Junction, RF Micro Devices and Kopin, over the last 18 months, represent significant milestones in the execution of our overall strategy and have significantly enhanced both our short and long term growth potential,” continues Nelson.
“They are highly complementary, extending our critical mass and global leadership in wireless, and bringing additional capacity to service the emerging high growth CPV market,” he
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