RFMD Generates $56.1 Million In Free Cash Flow And Achieves Positive Net Cash Position

Company Highlights: 

• Revenue Increases 12% Year-Over-Year To A Record $285.8 Million
• GAAP Operating Income Grows To $42.4 Million, Or 14.8% Of Revenue, And GAAP Diluted EPS Equals $0.13
• Non-GAAP Operating Income Increases To A Record $57.1 Million, Or 20% Of Revenue, And Non-GAAP Diluted EPS Is A Record $0.19
• RFMD Generates A Record $56.1 Million In Quarterly Free Cash Flow

RF Micro Devices, Inc. (Nasdaq GS: RFMD), a global leader in the design and manufacture of high-performance radio frequency components and compound semiconductor technologies, today reported financial results for its fiscal 2011 second quarter, ended October 2, 2010.

RFMD's quarterly revenue increased approximately 12% year-over-year and 4.4% sequentially to $285.8 million.  On a GAAP basis, gross margin equaled 38.0%, quarterly operating income totaled $42.4 million, and quarterly net income was $35.1 million, or $0.13 per diluted share.  On a non-GAAP basis, gross margin equaled 39.8%, quarterly operating income totaled a record $57.1 million, and quarterly net income was a record $52.3 million, or $0.19 per diluted share.  

During the quarter, RFMD generated a record $56.1 million in free cash flow (net cash provided by operating activities during the period, minus property and equipment expenditures made during the period) and achieved a positive net cash position.  RFMD defines "positive net cash" as cash and cash equivalents and short-term investments exceeding the principal amount of RFMD's convertible subordinated notes due 2012 and 2014.

RFMD Strategic Highlights:

• RFMD achieved substantial year-over-year and continued sequential revenue growth in both the Cellular Products Group (CPG) and the Multi-Market Products Group (MPG)
• RFMD increased sales to customers outside its largest customer by approximately 53% year-over-year, driven by market share gains at targeted handset customers and broad-based growth in MPG's end markets
• RFMD introduced 74 new and derivative products during the quarter targeting diverse market segments
• RFMD secured major design wins during the quarter, including components for smartphones, mobile tablet devices, Smart Energy applications, high-power GaN applications, and wireless infrastructure