RF Micro Devices (RFMD) Tops Q4 EPS by 3c

RF Micro Devices (NASDAQ: RFMD) reported Q4 EPS of $0.12, $0.03 better than the analyst estimate of $0.09. Revenue for the quarter came in at $256 million versus the consensus estimate of $255.54 million.

Bob Bruggeworth, president and CEO of RFMD, said, "RFMD is executing on multiple long-term structural initiatives that are enhancing our operating model and delivering robust improvements in gross margin, operating income, and earnings per share.

"In the June quarter and beyond, RFMD anticipates revenue growth ahead of the growth rate of our underlying markets, supported by distinct, long-term growth drivers, like the deployment of TD-LTE in China, two-by-two MIMO Wi-Fi connectivity in smartphones, additional 3G bands in entry smartphones, additional 4G bands in feature phones, and the advent of new technologies, like envelope tracking, carrier aggregation, and transmit MIMO.

"RFMD's diversified growth strategy is also driving additional growth opportunities in new categories, like antenna tuning, impedance tuning, diversity switches, power management circuits, highly integrated receive modules, and, soon, our RF Fusion, which is a complete RF front end solution for 4G world phones and tablets."

Dean Priddy, CFO and vice president of administration of RFMD, said, "RFMD's March 2014 quarterly non-GAAP gross margin of 42.0% represents 760 basis points of year-over-year margin expansion, versus 34.4% in the prior-year period. In the June 2014 quarter, we anticipate continued margin expansion of approximately 150 to 200 basis points, and we believe RFMD is on a path to achieve industry-leading gross margin.

"RFMD is executing on a diversified growth strategy, expanding gross margin, and managing expenses to our financial model, and we are projecting robust operating leverage and EPS growth. On the balance sheet, we continue to expect capital expenditures of approximately 4-5% of annual revenue and strong free cash flow. Subsequent to the close of the March quarter, RFMD retired the remaining principal balance of $87.5 million of convertible subordinated notes, and RFMD today is debt free."

For earnings history and earnings-related data on RF Micro Devices (RFMD) click here.

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