RF Micro Devices, Inc., an ISO 9001- and ISO 14001-certified manufacturer, designs, develops, manufactures and markets proprietary radio frequency integrated circuits (RFICs) for wireless communications products and applications. The Company is a leading supplier of power amplifiers, one of the most critical radio frequency (RF) components in cellular phones. The Company is also the leading manufacturer of GaAs HBT, which offers distinct advantages over other technologies for the manufacture of current- and next-generation power amplifiers. The Company's products are included primarily in cellular phones, base stations, wireless local area networks (WLANs), cable television modems and global positioning systems (GPS). The Company derives revenue from the sale of standard and custom-designed products. The Company offers a broad array of products including amplifiers, mixers, modulators/demodulators and single-chip transmitters, Bluetooth(R) products and receivers and transceivers that represent a substantial majority of the RFICs required in wireless subscriber equipment. The Company's goal is to be the premier supplier of low-cost, high-performance integrated circuits and solutions for applications that enable wireless connectivity. RF Micro Devices, Inc. is traded on the Nasdaq National Market under the symbol RFMD. For more information about RFMD, please visit http://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 rate of growth and development of wireless markets, risks associated with the operation of our wafer fabrication facilities, molecular beam epitaxy facility, our assembly facility and our test, tape and reel facilities, 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 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), RFMD(R) and POLARIS(TM) TOTAL RADIO(TM) are trademarks of RFMD, LLC. BLUETOOTH is a trademark owned by Bluetooth SIG, Inc., U.S.A. and licensed for use by RF Micro Devices, Inc. All other trade names, trademarks and registered trademarks are the property of their respective owners.
For more information about RFMD, please visit our website at http://www.rfmd.com.
Financial Tables Follow
RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
2005 2004
Total revenue $159,384 $165,774
Costs and expenses:
Cost of goods sold 105,074 100,887
Research and development 38,713 35,346
Marketing and selling 12,056 11,132
General and administrative 6,668 5,836
Other operating (income) expense (850) 6,603
Total costs and expenses 161,661 159,804
Operating (loss) income (2,277) 5,970
Loss in equity method investee - (1,761)
Other (expense) income, net (88) (1,191)
(Loss) income before income taxes (2,365) 3,018
Income tax (expense) (352) (5)
Net (loss) income $(2,717) $3,013
Net (loss) income per share,
diluted $(0.01) $0.02
Weighted average outstanding
diluted shares 188,100 191,166
RF MICRO DEVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30, June 30, March 31,
2005 2004 2005
GAAP net (loss) income $(2,717) $3,013 $(62,973)
Adjustments:
Amortization of deferred stock
compensation 1,045 1,864 1,227
Amortization of intangible assets 365 1,617 1,255
Lease adjustment - - 1,483
In process research and
development charge - 6,201 -
Customer related payment 5,000 - -
Discontinuation of WLAN chipset
development efforts/(adjustment) (850) - 42,414
Pro forma net income (loss) 2,843 12,695 (16,594)
Plus: Income impact of assumed
conversions for interest on 1.50%
convertible notes - 1,042 -
Pro forma net income (loss) plus
assumed conversion of notes-Numerator
for diluted income (loss) per share $2,843 $13,737 $(16,594)
GAAP weighted average outstanding
diluted shares 188,100 191,166 187,547
Adjustments:
Diluted stock options 2,799 - -
Assumed conversion of 1.50%
convertible notes - 30,144 -
Pro forma weighted average
outstanding diluted shares 190,899 221,310 187,547
Pro forma net income (loss) per
share, diluted $0.01 $0.06 $(0.09)
RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, March 31,
2005 2005
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $41,777 $26,016
Short-term investments 97,149 134,828
Accounts receivable, net 80,446 74,545
Inventories 77,083 75,090
Other current assets 18,539 15,970
Total current assets 314,994 326,449
Property and equipment, net 339,094 339,624
Goodwill 119,709 119,694
Investment in Jazz Semiconductor, Inc. 59,265 59,265
Long-term investments 247 365
Intangible assets, net 11,880 11,316
Other assets 2,817 3,033
Total assets $848,006 $859,746
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $69,575 $74,684
Other short-term liabilities, net 92 4,968
Total current liabilities 69,667 79,652
Long-term debt, net 226,345 226,168
Other long-term liabilities 5,743 5,876
Total liabilities 301,755 311,696
Shareholders' equity:
Total shareholders' equity 546,251 548,050
Total liabilities and shareholders' equity $848,006 $859,746
