RF Micro Devices, Inc., a global leader in the design and manufacture of high-performance radio frequency solutions, reported financial results for the Company's fiscal 2014 second quarter, ended September 28, 2013.
Quarterly Highlights:
-Quarterly Revenue Increases 48% Year-Over-Year To A Record $310.7 Million
-GAAP Gross Margin Is 33.7% And GAAP Diluted EPS Is $0.02, Versus $(0.06) In Q2 Fiscal 2013
-Non-GAAP Gross Margin Is 36.2% And Non-GAAP Diluted EPS Is $0.12, Versus $0.03 In Q2 Fiscal 2013
-In The December 2013 Quarter, RFMD Anticipates Revenue To Be Approximately Flat To Up 5% Sequentially
-RFMD Expects Non-GAAP Gross Margin To Expand Sequentially By Approximately 120 bps And Non-GAAP EPS Of Approximately $0.13 To $0.14 In The December 2013 Quarter
September quarterly revenue increased approximately 6% sequentially and 48% year-over-year to a record $310.7 million, compared to $293.0 million in the prior quarter and $209.7 million in the corresponding quarter of the prior year. The sequential and year-over-year increases in revenue were due primarily to generation-over-generation increases of RFMD's best-in-class RF solutions in the industry's marquee smartphones.
On a GAAP basis, gross margin for the September 2013 quarter was 33.7%, quarterly operating income was $9.5 million, and quarterly net income was $5.9 million, or $0.02 per share. On a non-GAAP basis, gross margin expanded by 110 basis points sequentially and 100 basis points year-over-year to 36.2%, quarterly operating income totaled $37.2 million, or 12% of sales, and quarterly net income was $33.9 million, or $0.12 per diluted share. During the September quarter, the Company repurchased 2.4 million shares of stock at an average price of $5.03.
Strategic Highlights
-RFMD's Cellular Products Group (CPG) grew revenue 7% sequentially and 59% year-over-year
-CPG expanded its dollar content in the September quarter in the world's leading 4G LTE smartphones
-CPG benefited in the entry segment, with leading market share on major reference designs and expanded customer engagements with Xiaomi, Coolpad, Lenovo, Huawei, and others
-CPG ramped production of new average power tracking (APT) and envelope tracking (ET) power amplifiers (PAs), PA duplexers, antenna control solutions, antenna switch modules, and diversity switches
-CPG enjoyed favorable design activity for its industry-leading carrier aggregation switch portfolio
-Year-over-year, RFMD's Multi-Market Products Group (MPG) delivered 12% growth across multiple markets, with high-performance Wi-Fi growing 49% and broadband cable TV and Hi-Rel applications both growing over 20%
-MPG experienced strong design activity for its Wi-Fi front ends for both mobile devices and consumer premises equipment.
