Radio frequency components and semiconductor manufacturer, RF Micro Devices Inc. (RFMD) Tuesday, after the bell, reported a profit for the second quarter, helped by lower expenses, despite a decline in revenues. Following the news, shares of the company climbed 7% in after-hours trading on the Nasdaq.
The Greensboro, North Carolina-based company posted second quarter GAAP net income of $14.6 million or $0.05 per share, compared to a loss of $14.2 million or $0.05 per share in the prior year period.
The recent quarter included share-based compensation expense of $11.12 million, which was $2.52 million higher than last year, while the year-ago included restructuring charges of $17.63 million, among other one-time items for both the years.
Excluding one-time items, non-GAAP net income increased to $36.9 million or $0.13 per share from $20.6 million or $0.07 per share in the last year quarter. On average, 15 analysts polled by Thomson Reuters expected the company to earn $0.09 per share in the quarter. Analysts' estimates typically exclude special items. Second-quarter revenues, however, were lower at $254.8 million, compared with $271.7 million in the year-ago period. Fourteen Wall Street analysts expected revenues of $233.91 million.
Despite the downtrend in revenues, the company reversed to operating income of $24.13 million from a loss of $19.05 million, fueled by a decline in total costs and expenses to $230.63 million from $290.71 million.
Gross margin, on a GAAP basis, totaled 35.9%, compared with last year's 28.3%, and gross margin, on a non-GAAP basis, amounted to 38.1%, higher than 31.6% a year ago.
For the six months ended October 3, the company reversed to a net income of $19.36 million or $0.07 per share from a loss of $40.75 million or $0.16 per share in the comparable period a year ago. Year-to-date, revenues declined to $467.29 million from $512.16 million in the last year.
"Our expectations are for continued strong performance both in the December quarter and in calendar year 2010. Over the foreseeable future, we expect secular growth trends and new product cycles will give us the opportunity to continue growing top- and bottom-line results", said the company.
RFMD stock closed Tuesday's regular market hours at $4.02, up by a cent or 0.25% on 15.27 million shares, on the Nasdaq.
In after-hours trading, shares gained 7.21% or 29 cents, at $4.31.
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