RFMD Generates $56.1 Million In Free Cash Flow And Achieves Positive Net Cash Position
(PRNewswire) —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
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GAAP RESULTS | ||||||||||||||||||
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| 2011 |
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| 2011 |
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| 2010 |
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Revenue |
| $ | 285.8 |
| $ | 273.8 |
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| 4.4% |
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| $ | 254.8 |
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| 12.2% |
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Gross Margin |
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| 38.0% |
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| 37.4% |
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| 0.6 | ppt |
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| 35.9% |
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| 2.1 | ppt | |
Operating Income |
| $ | 42.4 |
| $ | 40.6 |
| $ | 1.8 |
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| $ | 24.1 |
| $ | 18.3 |
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Net Income |
| $ | 35.1 |
| $ | 28.1 |
| $ | 7.0 |
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| $ | 14.6 |
| $ | 20.5 |
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Diluted EPS |
| $ | 0.13 |
| $ | 0.10 |
| $ | 0.03 |
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| $ | 0.05 |
| $ | 0.08 |
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NON-GAAP RESULTS (excluding share-based compensation, amortization of intangibles, integration charges, start-up costs, loss on retirement of convertible subordinated notes, restructuring charges, loss on PP&E, non-cash interest expense on convertible subordinated notes and tax adjustments) | ||||||||||||||||||
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| 2010 |
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Gross Margin |
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| 39.8% |
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| 39.2% |
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| 0.6 | ppt |
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| 38.1% |
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| 1.7 | ppt | |
Operating Income |
| $ | 57.1 |
| $ | 51.7 |
| $ | 5.4 |
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| $ | 41.7 |
| $ | 15.4 |
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Net Income |
| $ | 52.3 |
| $ | 44.3 |
| $ | 8.0 |
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| $ | 36.9 |
| $ | 15.4 |
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Diluted EPS |
| $ | 0.19 |
| $ | 0.16 |
| $ | 0.03 |
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| $ | 0.13 |
| $ | 0.06 |
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