- Non-GAAP Diluted Earnings Per Share Equaled $0.13
Business Unit Comments Cellular - RFMD maintained leadership in next-generation power amplifiers in the March 2007 quarter and currently expects sequential growth in the June 2007 quarter in both EDGE and WCDMA power amplifiers - RFMD currently anticipates quarterly sales of GaAs pHEMT cellular switches will increase sequentially - RFMD currently anticipates follow-on business at an existing POLARIS(TM) customer, including the EDGE path of a 3G multimode platform - RFMD currently expects its next-generation POLARIS(TM) 3 RF solution will ramp at a new POLARIS(TM) customer in the second half of calendar 2007 Wireless Connectivity - RFMD increased sales of wireless LAN front ends for handsets and other applications in the March 2007 quarter and expects sequential growth in wireless LAN front ends in the June 2007 quarter - RFMD experienced increased design activity with leading mobile device manufacturers related to its proprietary GPS technology - Customer evaluation of newly introduced multi-market GaAs pHEMT switches demonstrated low loss and superior linearity, as a result of both process and design Infrastructure - RFMD commenced its first shipments of gallium nitride (GaN) devices to a top-tier military supplier - RFMD anticipates additional shipments and customer orders of GaN devices in the current quarter - RFMD anticipates product launch of its GaAs pHEMT multi-market low noise amplifiers (LNAs) in the current quarter
GAAP and non-GAAP financial measures are presented in the tables below, and non-GAAP financial measures are reconciled to the corresponding GAAP financial measures in the financial statement portion of this press release.
GAAP RESULTS (in millions, except % % percentages Q4 Q3 Change Q4 Change and per share Fiscal Fiscal vs. Q3 Fiscal vs. Q4 data) 2007 2007 2007 2006 2006 Revenue $257.3 $281.1 (8.5)% $225.9 13.9% Gross Margin 35.2% 35.8% (0.6)ppt 33.6% 1.6ppt Operating Income (Loss) $ 21.4 $ 66.1 (67.6)% $(1.7) 1,369% Net Income (Loss) $ 30.1 $ 59.3 (49.2)% $(1.6) 2,021% Diluted EPS (LPS) $ 0.14 $ 0.26 (48.5)% $(0.01) 1,745%
NON-GAAP RESULTS (excluding share-based compensation, amortization,
discontinuation of WLAN chipset development efforts, impairment charge, gain
on sale of substantially all Bluetooth(R) assets, restructuring charges related to sale of Bluetooth(R) assets and the tax effect on certain non-GAAP
adjustments) (in millions, except % % percentages Q4 Q3 Change Q4 Change and per share Fiscal Fiscal vs. Q3 Fiscal vs. Q4 data) 2007 2007 2007 2006 2006 Gross Margin 35.7% 36.1% (0.4)ppt 35.0% 0.7ppt Operating Income $25.7 $35.2 (27.0)% $ 19.8 30.1% Net Income $29.2 $34.3 (15.0)% $ 19.9 46.8% Diluted EPS $0.13 $0.16 (14.9)% $ 0.09 42.2%
Financial Guidance And Business Outlook
RFMD anticipates strong overall unit demand for cellular handsets and believes handset market share continues to be consolidated by its largest customers.
Consistent with guidance provided on March 28, 2007, RFMD expects that forecasted unit reductions at a major customer, coupled with RFMD's high per- unit dollar content at this customer, will significantly impact its near-term financial results. Longer term, RFMD believes it will benefit as handset inventories are reduced and as forecasts and shipments increase. Additionally, RFMD expects it will increase its dollar content at additional customers through sales of complete RF solutions as well as complementary components for cellular front ends and other high-growth markets.