RF Micro Devices, Inc. (RFMD) Tuesday reported a loss for the third quarter, compared to profit last year, as revenues and margins declined. Adjusted earnings for the quarter came in below Street estimates. The company's guidance for the fourth quarter is also weaker than analyst's expectations.
For its fiscal third quarter ended December 31, RF Micro Devices reported a net loss of $9.4 million or $0.03 per share, compared to profit of $36.7 million or $0.13 per share in the year-ago quarter.
On a non-GAAP basis, net income for the quarter was $5.1 million or $0.02 per share, plummeting from income of $52.6 million or 0.19 per share in the year-ago quarter.
On average, 15 analysts polled by Thomson reuters expected earnings of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.
Non-GAAP results exclude Share-based compensation expense, amortization of intangible assets, and non-cash interest expense on convertible subordinated notes.
Revenue for the quarter dropped 19.2 percent to $225.4 million from $278.8 million in the year-ago quarter. Eighteen Street analysts on consensus expected revenues of $225.0 million for the quarter.
The company reported approximately 100 percent year-over-year revenue growth during the quarter at Foxconn, HTC, Huawei, Motorola, and Research In Motion.
Gross margin for the quarter declined to 28.2 percent from 37.0 percent last year.
For the March quarter, Greensboro, North Carolina-headquartered RFMD anticipates share gains in smartphones and projects 3G/4G products to represent approximately two-thirds of total cellular revenue.
The company currently forecasts a greater-than-seasonal decline in sales to cellular handset manufacturers in China, primarily as a result of the impact of lunar new year on order visibility and the projected impact of channel inventory.
The company expects non-GAAP results for the fourth quarter from a loss of $0.02 per share to breakeven on revenue of approximately $185 million. The Street expect earnings of $0.03 per share for the quarter on revenues of $204.4 million.
Dean Priddy, CFO and vice president of administration of RFMD, said, " In the March 2012 quarter, we currently expect sequential improvement in gross margin, and we anticipate RFMD's gross margin will return to historical levels as revenue growth resumes."
RFMD repurchased approximately 2.3 million shares of common stock during the third quarter and purchased and retired $6.0 million principal amount of convertible debt.
RFMD closed Tuesday's regular trade at $4.85, down $0.24 or 4.72%, on the Nasdaq. In the after-hours, the stock gained $0.03 or 0.62%. Over the past year, the stock traded in a range of $4.95 - $8.48.
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