Radio frequency components and semiconductor maker RF Micro Devices Inc. (RFMD) reported Tuesday a profit for the third quarter from a loss last year. Earnings for the quarter came in ahead of analysts estimate, while revenues fell short.
The Greensboro, North Carolina-based company's GAAP net income was $24.93 million or $0.09 per share, compared to a loss of $788.47 million or $3.00 per share in the same quarter last year.
Non-GAAP net income for the quarter was $38.8 million or $0.14 per share, compared to a loss of $12.4 million or $0.05 per share in the same quarter last year.
On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter was $250.27 million, up 24% from $202.02 million in the previous year period. Sixteen Wall Street analysts expected revenues of $251.59 million for the third quarter.
Operating income for the third quarter was $33.59 million, compared with operating loss of $754.03 million in the same period last year. Gross margin improved by 17.4 points to 36.4% from 19% for the year earlier period.
In the sequentially preceding second quarter, GAAP net income was $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.
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 second quarter last year. Second-quarter revenues were lower at $254.8 million, compared with $271.7 million in the year-ago period.
Bob Bruggeworth, president and CEO of RFMD commenting on the company's third quarter performance said, "RFMD is capitalizing on major global secular growth trends, such as mobile broadband, smart grid/AMR and green technologies, while entering lucrative new product segments, like switch-based products for smart phones and GaN-based amplifiers for communications and defense systems, which expand our serviceable market, diversify revenue and expand margins."
For the nine month period, the company's GAAP net income was $44.29 million or $0.16 per share, compared with GAAP net loss of $829.23 million or $3.16 per share in the same period last year. Total revenues rose to $717.57 million from $714.19 million last year.
Amongst others in the industry, Skyworks Solutions, Inc. (SWKS) had reported that its first quarter GAAP net income increased to $28.01 million or $0.16 per share from $23.58 million or $0.14 per share in the comparable period a year-ago. Non-GAAP net income for the quarter increased to $47.73 million or $0.27 per share from $27.64 million or $0.17 per share in the comparable period a year-ago. Net revenues for the quarter increased to $245.13 million from $210.22 million in the year-ago period and exceeded the company's guidance range of $238 million to $242 million.
Looking forward, RF Micro Devices said that the company expects quarterly revenue in Cellular Products Group to be better than normal seasonality in the March quarter. In Multi-Market Products Group, the company expects quarterly revenue to be flat to up sequentially in the March quarter.
Dean Priddy, CFO and vice president of administration of RFMD, said, "..For fiscal 2011, we expect a contribution margin of approximately 60% on each incremental dollar of revenue, and we believe we're on track to deliver continued revenue and earnings growth in fiscal 2011 and beyond."
RF Micro Devices shares, which have traded in a range of $0.73 to $5.85 over the past year, closed Tuesday's regular trading session at $4.27, up $0.06 or 1.43 and lost $0.10 in after hours trading, at $4.17 on the Nasdaq.
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