Radio frequency components and compound semiconductor manufacturer RF Micro Devices, Inc. (RFMD) said Monday that it has successfully completed all of its restructuring activities announced earlier. Looking ahead, the company now anticipates to be net cash positive in fiscal 2011.
Following the completion of the restructuring activities, the Greensboro, North Carolina-based company expects continued strength in financial results, with an emphasis on non-GAAP operating income, free cash flow and return on invested capital or ROIC.
In its second quarter ended October 3, RF Micro Devices reported a profit, helped by lower expenses, despite a decline in revenues. The company also delivered year-over-year and sequential improvements in gross margin, operating margin and earnings per share.
Free cash flow for the quarter was $45.8 million. The company currently expects free cash flow in fiscal 2010 to exceed its previous guidance of $130 million.
Bob Bruggeworth, president and chief executive officer said, "The entire RFMD team demonstrated crisp execution and steadfast resolve in all aspects of our strategic restructuring. As a result, the new RFMD is positioned today to achieve strong financial results and continued leadership in lucrative and growing core markets. With our restructuring activities complete, we are focused sharply on building superior shareholder value through profitable growth and ROIC in excess of our cost of capital."
RFMD closed Friday's regular trading at $4.34 on the Nasdaq.
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