SAN FRANCISCO—RF Micro Devices Inc. Tuesday (Jan. 25) reported sales for the quarter ended Jan. 1 that came up short of Wall Street analysts' estimates. The company also offered guidance for the current quarter that was well below what analysts were predicting, citing an expected revenue shortfall from closing out its legacy transceiver business.
RF Micro posted sales of $278.8 million, down 2 percent from the previous quarter but up 11 percent compared with the year-ago quarter. The company reported a net income in accordance with generally accepted accounting principles (GAAP) of $36.7 million, or 13 cents per diluted share, up 4 percent from the previous quarter and up 47 percent from the year-ago quarter.
On a non-GAAP basis, excluding charges, RF Micro reported a quarterly net income $54 million, or 19 cents per diluted share, up nominally from the previous quarter and up 35 percent compared with the year ago quarter.
RF Micro's sales for the quarter fell short of consensus analysts' expectations, which called for the company to report sales for the quarter of about $285 million, according to Yahoo Finance.
RF Micro said it expects revenue for the current quarter, ending in March, to decline to between $212 million and $226 million. The company excepts the revenue decline because of a seasonal 10 to 15 percent dip, please an additional decrease of about $25 million in transceiver revenue, consistent with the anticipated end-of-life of legacy transceiver products, the company said. RF Micro has previously discussed plans to transition away from its transceiver business.
The guidance for the March quarter fell significantly short of consensus analysts' expectations, which called for the company to post revenue for the March quarter of about $259 million, according to Yahoo Finance.
"The March quarter represents an inflection point for RFMD as we close out our legacy transceiver business and begin the ramp of new, higher margin component solutions, including our PowerSmart power platforms, our industry-leading high efficiency single-mode PAs, our silicon-based switches, our GaN components, and our high-performance WiFi components," said Bob Bruggeworth, RF Micro's president and CEO, in a statement.
Bruggeworth said the company is forecasting sequential growth in the March quarter in 3G/4G smartphones, wireless infrastructure and GaN-based products, and that it expects to ramp 3G/4G smartphones featuring PowerSmart at an additional leading smartphone OEM each quarter of calendar 2011.
RF Micro's board of directors also authorized a two-year, $200 million share repurchase plan, the company said.