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RF Micro Devices (RFMD) Press Release 12-4-2008
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RFMD®Updates December 2008 Quarterly Financial
Guidance and Announces Cost Reductions
GREENSBORO,
N.C., Dec. 4 /PRNewswire-FirstCall/ -- RF Micro Devices (Nasdaq:
RFMD), a global leader in the design and manufacture of high-performance
semiconductor components, today updated its quarterly financial guidance
to reflect broad-based, reduced demand in its end markets. RFMD(R) currently
expects December 2008 quarterly revenue to be approximately 15-20% below
the low-end of the guidance originally provided on October 28, 2008.
Despite the projected reduction in revenue, RFMD continues to expect
gross margin to improve sequentially during the quarter and continues
to expect to achieve positive diluted earnings per share (EPS) on a
non-GAAP basis. RFMD's original December quarterly financial guidance
forecasted revenue between $253 and $271 million, GAAP diluted EPS in
the range of $0.00 - $0.02 and non-GAAP diluted EPS in the range of
$0.05 to $0.07.
RFMD expects to strengthen its balance sheet
and improve its capital structure during the December 2008 quarter.
Quarterly cash flow from operations is expected to increase significantly,
versus the September 2008 quarter, with minimal capital expenditures
anticipated. Additionally, RFMD has purchased approximately $23 million
par value, or 10%, of its 2010 convertible debt and continues to have
approximately $50 million available and authorized for common stock
repurchases under its existing share repurchase program. RFMD may make
additional purchases of its convertible debt or common stock from time
to time in the open market in accordance with applicable regulations.
Bob Bruggeworth, president and CEO of RFMD, said, "In light of the
reduced demand environment, we have taken decisive and immediate actions
to maximize cash flow by reducing costs, working capital and capital
expenditures. These cost-cutting measures have begun to take effect,
and we expect to derive the full benefit of these measures during the
March 2009 quarter. We are sizing our operating model to match our revenue
expectations, and we continue to anticipate approximately $80 million
to $120 million in free cash flow (cash flow from operations less capital
expenditures) in fiscal 2010."
About RFMD: RF Micro Devices,
Inc. (Nasdaq: RFMD) is a global leader in the design and manufacture
of high-performance semiconductor components. RFMD's products enable
worldwide mobility, provide enhanced connectivity and support advanced
functionality in the cellular handset, wireless infrastructure, wireless
local area network (WLAN), CATV/broadband and aerospace and defense
markets. RFMD is recognized for its diverse portfolio of semiconductor
technologies and RF systems expertise and is a preferred supplier to
the world's leading mobile device, customer premises and communications
equipment providers.
Headquartered in Greensboro, N.C., RFMD
is an ISO 9001- and ISO 14001-certified manufacturer with worldwide
engineering, design, sales and service facilities. RFMD is traded on
the NASDAQ Global Select Market under the symbol RFMD. For more information,
please visit RFMD's web site at
www.rfmd.com.
This press release includes "forward-looking statements" within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include,
but are not limited to, statements about our plans, objectives, representations
and contentions and are not historical facts and typically are identified
by use of terms such as "may," "will," "should," "could," "expect,"
"plan," "anticipate," "believe," "estimate," "predict," "potential,"
"continue" and similar words, although some forward-looking statements
are expressed differently. You should be aware that the forward-looking
statements included herein represent management's current judgment and
expectations, but our actual results, events and performance could differ
materially from those expressed or implied by forward-looking statements.
We do not intend to update any of these forward-looking statements or
publicly announce the results of any revisions to these forward-looking
statements, other than as is required under the federal securities laws.
RF Micro Devices' business is subject to numerous risks and uncertainties,
including variability in quarterly operating results, the impact of
global macroeconomic and credit conditions on our business, the rate
of growth and development of wireless markets, risks associated with
our planned exit from our wireless systems business, including cellular
transceivers and GPS solutions, the risk that restructuring charges
may be greater than originally anticipated and that the cost savings
and other benefits from the restructuring may not be achieved, risks
associated with the operation of our wafer fabrication facilities, molecular
beam epitaxy facility, assembly facility and test and tape and reel
facilities, our ability to complete acquisitions and integrate acquired
companies, including the risk that we may not realize expected synergies
from our business combinations, our ability to attract and retain skilled
personnel and develop leaders, variability in production yields, our
ability to reduce costs and improve gross margins by implementing innovative
technologies, our ability to bring new products to market, our ability
to adjust production capacity in a timely fashion in response to changes
in demand for our products, dependence on a limited number of customers,
and dependence on third parties. These and other risks and uncertainties,
which are described in more detail in RF Micro Devices' most recent
Annual Report on Form 10-K and other reports filed with the Securities
and Exchange Commission, could cause actual results and developments
to be materially different from those expressed or implied by any of
these forward-looking statements.
RF MICRO DEVICES(R) and RFMD(R)
are trademarks of RFMD, LLC. All other trade names, trademarks and registered
trademarks are the property of their respective owners.
SOURCE
RF Micro Devices, Inc. 12/04/2008 CONTACT: Dean Priddy, CFO,
1-336-678-7975, or Doug DeLieto VP, Investor Relations, +1-336-678-7968,
or Jerry Neal EVP, Marketing and Strategic Development, +1-336-678-7001,
all of RFMD Web Site:
http://www.rfmd.com
(RFMD)
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