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RFMD® Announces June Quarterly Revenue of $214.2 Million

July 26, 2011

GREENSBORO, N.C., July 26, 2011 /PRNewswire/ —

Company Highlights:

  • Quarterly Revenue Totals $214.2 Million
  • GAAP Operating Income Is $14.9 Million, And GAAP Diluted EPS Is $0.03
  • Non-GAAP Operating Income Is $25.1 Million, Or 11.7% Of Revenue
  • Non-GAAP Diluted EPS Totals $0.08

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 2012 first quarter, ended July 2, 2011.

RFMD’s June 2011 quarterly revenue increased sequentially to $214.2 million, primarily as a result of double-digit sequential growth in the Company’s core business, which more than offset a decline in sales of legacy transceiver products. On a GAAP basis, gross margin equaled 36.5%, quarterly operating income totaled $14.9 million, and quarterly net income was $8.9 million, or $0.03 per diluted share.

On a non-GAAP basis, gross margin equaled 38.5%, quarterly operating income totaled $25.1 million, and quarterly net income was $21.3 million, or $0.08 per diluted share. During the quarter, RFMD generated approximately $19.1 million in cash flow from operations, retired $22.0 million principal amount of convertible debt and repurchased approximately 945,000 shares of common stock.

RFMD Strategic Highlights

  • Sales of RFMD’s 3G/4G cellular products for smartphones grew more than 50% sequentially
  • Shipments of RFMD’s PowerSmart(TM) power platform surpassed $10 million in revenue in support of multiple flagship smartphones and tablets
  • RFMD commenced production shipments of its industry-leading ultra-high efficiency 3G/4G PAs in support of multiple customers
  • RFMD secured an additional high-performance 3G/4G switch design win on a Qualcomm reference design
  • RFMD ramped volume shipments of new GaN-based products to leading military radar and CATV customers
  • RFMD was awarded two DARPA contracts for advanced thermally managed GaN RF power technology valued at approximately $3 million through fiscal 2013
  • RFMD secured major design wins across multiple growth markets, including 3G/4G smartphones, emerging market handsets, wireless infrastructure, Smart Energy/Advanced Metering Infrastructure (AMI), high-performance WiFi, and point-to-point radio for cellular backhaul

                                      GAAP RESULTS
       (in millions,
           except
      percentages and               Q4
            per       Q1 Fiscal  Fiscal   Change
                                           vs. Q4
        share data)        2012     2011    2011
        -----------        ----     ----  -------
    Revenue              $214.2   $213.3       0.4%
    Gross Margin           36.5%    35.4%      1.1  ppt
    Operating Income      $14.9    $13.2      $1.7
    Net Income             $8.9    $24.1    $(15.2)
    Diluted EPS           $0.03    $0.08    $(0.05)


       (in millions,
           except
      percentages and             Q1
            per                Fiscal           Change
                                                 vs. Q1
        share data)               2011            2011
        -----------               ----          -------
    Revenue                     $273.8            (21.8)%
    Gross Margin                  37.4%             (0.9)  ppt
    Operating Income             $40.6            $(25.7)
    Net Income                   $28.3            $(19.4)
    Diluted EPS                  $0.10            $(0.07)

           NON-GAAP RESULTS (excluding share-based compensation, amortization
              of intangibles, integration charges, start-up costs, loss on
          retirement of convertible subordinated notes, restructuring charges,
          (gain) loss on PP&E, (income) loss from equity investment, and non-
            cash interest expense on convertible subordinated notes and tax
                                      adjustments)
    (in millions, except
                                   Q1              Q4
    percentages and per          Fiscal         Fiscal           Change
                                                                 vs. Q4
         share data)               2012            2011           2011
         -----------               ----            ----         -------
    Gross Margin                   38.5%           37.5%             1.0   ppt
    Operating Income              $25.1           $23.7             $1.4
    Net Income                    $21.3           $21.7            $(0.4)
    Diluted EPS                   $0.08           $0.08            $0.00


    (in millions, except
                                    Q1
    percentages and per          Fiscal           Change
                                                   vs. Q1
         share data)                2011            2011
         -----------                ----          -------
    Gross Margin                    39.2%             (0.7)  ppt
    Operating Income               $51.7            $(26.6)
    Net Income                     $44.3            $(23.0)
    Diluted EPS                    $0.16            $(0.08)

Business Outlook

RFMD currently believes the demand environment in its end markets supports the following expectations and projections for the September 2011 quarter:

  • RFMD expects quarterly revenue to increase approximately 6% sequentially
  • RFMD expects to further diversify its customer base, primarily through market share gains in 3G/4G smartphones
  • RFMD expects non-GAAP gross margin to increase approximately 50 basis points and non-GAAP operating expenses to be approximately flat to up $1 million sequentially
  • RFMD expects a non-GAAP tax rate of approximately 15%

RFMD’s actual quarterly results may differ from these expectations and projections, and such differences may be material.

Comments From Management

Bob Bruggeworth, president and chief executive officer of RFMD, said, “The increasing demand for mobility, energy conservation, and ‘always-on’ broadband data, continues to favor RFMD’s core strengths and expanding product and technology portfolio. We plan to capitalize on these global secular growth drivers to outperform our addressable markets.

“During the June quarter, RFMD enjoyed strong design momentum in 3G/4G smartphones and across MPG’s diversified markets. We launched several industry-leading new products, and this fueled a sharp improvement in our customer and product mix — yielding our most diverse quarter by customer concentration. We see further customer diversification in the September quarter, supported by share gains in smartphones, tablets, smart energy management solutions, point-to-point radio chipsets for cellular backhaul, and other growth markets.

“We believe the new product cycles we are ramping today will extend multiple years and reinforce our position as a highly diversified growth-oriented supplier of RF components and compound semiconductor technologies.”

Dean Priddy, CFO and vice president of administration of RFMD, said, “RFMD returned to sequential revenue growth in the June quarter on the strength of double-digit growth in our core business. With transceiver revenue now at immaterial levels, RFMD is positioned to achieve continued sequential revenue growth, enabling broad improvement in our financial performance, including margin expansion and operating leverage.”

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), RFMD’s earnings release contains some or all of the following non-GAAP financial measures: (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating income and operating margin, (iii) non-GAAP net income, (iv) non-GAAP net income per diluted share, (v) non-GAAP operating expenses (research and development, marketing and selling and general and administrative), (vi) free cash flow, (vii), EBITDA, (viii) return on invested capital (ROIC), and (ix) net debt or positive net cash. Each of these non-GAAP financial measures is either adjusted from GAAP results to exclude certain expenses or derived from multiple GAAP measures, which are outlined in the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables on page 10 and the “Additional Selected Non-GAAP Financial Measures And Reconciliations” tables on page 11.

In managing RFMD’s business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures. In developing and monitoring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce unit costs with the goal of increasing gross margin and operating margin. In addition, management relies upon these non-GAAP financial measures to assess whether research and development efforts are at an appropriate level, and when making decisions about product spending, administrative budgets, and marketing programs. In addition, we believe that non-GAAP financial measures provide useful supplemental information to investors and enable investors to analyze the results of operations in the same way as management. We have chosen to provide this supplemental information to enable investors to perform additional comparisons of operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to operations, certain non-cash expenses and share-based compensation expense, which may obscure trends in RFMD’s underlying performance.

We believe that these non-GAAP financial measures offer an additional view of RFMD’s operations that, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of RFMD’s results of operations and the factors and trends affecting RFMD’s business. However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Our rationale for using these non-GAAP financial measures, as well as their impact on the presentation of RFMD’s operations, are outlined below:

Non-GAAP gross profit and gross margin. Non-GAAP gross profit and gross margin exclude share-based compensation expense, amortization of intangible assets, other non-cash expenses and adjustments for restructuring and integration charges. We believe that exclusion of these costs in presenting non-GAAP gross profit and gross margin gives management and investors a more effective means of evaluating RFMD’s historical performance and projected costs and the potential for realizing cost efficiencies. We believe that the majority of RFMD’s purchased intangibles are not relevant to analyzing current operations because they generally represent costs incurred by the acquired company to build value prior to acquisition, and thus are effectively part of transaction costs rather than ongoing costs of operating RFMD’s business. In this regard, we note that (i) once the intangibles are fully amortized, the intangibles will not be replaced with cash costs and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time, and (ii) although we set the amortization expense based on useful life of the various assets at the time of the transaction, we cannot influence the timing and amount of the future amortization expense recognition once the lives are established. Similarly, we believe that presentation of non-GAAP gross profit and gross margin and other non-GAAP financial measures that exclude the impact of share-based compensation expense assists management and investors in evaluating the period-over-period performance of RFMD’s ongoing operations because (i) the expenses are non-cash in nature, and (ii) although the size of the grants is within our control, the amount of expense varies depending on factors such as short-term fluctuations in stock price volatility and prevailing interest rates, which can be unrelated to the operational performance of RFMD during the period in which the expense is incurred and generally is outside the control of management. Moreover, we believe that the exclusion of share-based compensation expense in presenting non-GAAP gross profit and gross margin and other non-GAAP financial measures is useful to investors to understand the impact of the expensing of share-based compensation to RFMD’s gross profit and gross margins and other financial measures in comparison to both prior periods as well as to its competitors. We also believe that the adjustments to profit and margin related to other non-cash expenses and restructuring and integration charges do not constitute part of RFMD’s ongoing operations and therefore the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and gives management and investors a more effective means of evaluating our historical and projected performance. We believe disclosure of non-GAAP gross profit and gross margin has economic substance because the excluded expenses do not represent continuing cash expenditures and, as described above, we have little control over the timing and amount of the expenses in question.

Non-GAAP operating income and operating margin. Non-GAAP operating income and operating margin exclude share-based compensation expense, amortization of intangible assets, other non-cash expenses, restructuring and integration charges, (gain) loss on PP&E and start-up costs. We believe that presentation of a measure of operating income and operating margin that excludes amortization of intangible assets and share-based compensation expense is useful to both management and investors for the same reasons as described above with respect to our use of non-GAAP gross profit and gross margin. We believe that other non-cash expenses, restructuring and integration charges, (gain) loss on PP&E and start-up costs do not constitute part of RFMD’s ongoing operations and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and gives management and investors a more effective means of evaluating our historical and projected performance. We believe disclosure of non-GAAP operating income and operating margin has economic substance because the excluded expenses are either unrelated to operations or do not represent current cash expenditures.

Non-GAAP net income and non-GAAP net income per diluted share. Non-GAAP net income and non-GAAP net income per diluted share exclude the effects of share-based compensation expense, amortization of intangible assets, other non-cash expenses, restructuring and integration charges, (gain) loss on PP&E, start-up costs, loss on retirement of convertible subordinated notes, non-cash interest expense on convertible subordinated notes, loss (income) from equity investment and also reflect an adjustment of income taxes for cash basis. We believe that presentation of measures of net income and net income per diluted share that exclude these items is useful to both management and investors for the reasons described above with respect to non-GAAP gross profit and gross margin and non-GAAP operating income and operating margin. We believe disclosure of non-GAAP net income and non-GAAP net income per diluted share has economic substance because the excluded expenses are either unrelated to operations or do not represent current cash expenditures.

Non-GAAP research and development, marketing and selling and general and administrative expenses. Non-GAAP research and development, marketing and selling and general and administrative expenses exclude share-based compensation expense, amortization of intangible assets, other non-cash expenses and restructuring and integration charges. We believe that presentation of measures of these operating expenses that exclude amortization of intangible assets and share-based compensation expense is useful to both management and investors for the same reasons as described above with respect to our use of non-GAAP gross profit and gross margin. We believe that other non-cash expenses and restructuring and integration charges do not constitute part of RFMD’s ongoing operations and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and gives management and investors a more effective means of evaluating our historical and projected performance. We believe disclosure of these non-GAAP operating expenses has economic substance because the excluded expenses are either unrelated to operations or do not represent current cash expenditures.

Free cash flow. RFMD defines free cash flow as net cash provided by operating activities during the period minus property and equipment expenditures made during the period. We use free cash flow as a supplemental financial measure in our evaluation of liquidity and financial strength. Management believes that this measure is useful as an indicator of our ability to service our debt, meet other payment obligations and make strategic investments. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our entire statement of cash flows.

EBITDA. RFMD defines EBITDA as earnings before interest expense and interest income, income tax expense (benefit), depreciation and intangible amortization. Management believes that this measure is useful to evaluate our ongoing operations and as a general indicator of our operating cash flow (in conjunction with a cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges). The amounts shown for EBITDA as presented herein differ from the amounts calculated under the definition of EBITDA used in our equipment term loan agreement. The definition of EBITDA as used in the loan agreement is further adjusted for certain cash and non-cash charges, including stock compensation expense, and is used to determine compliance with financial covenants.

Non-GAAP ROIC. Return on invested capital (ROIC) is a non-GAAP financial measure that management believes provides useful supplemental information for management and the investor by measuring the effectiveness of our operations’ use of invested capital to generate profits. We use ROIC to track how much value we are creating for our shareholders. Non-GAAP ROIC is calculated by dividing annualized non-GAAP operating income, net of cash taxes, by average invested capital. Average invested capital is calculated by subtracting the average of the beginning balance and the ending balance of current liabilities (excluding the current portion of long-term debt and other short-term financings) from the average of the beginning balance and the ending balance of net accounts receivable, inventories, other current assets, net property and equipment and a cash amount equal to seven days of quarterly revenue.

Net debt or positive net cash. Net debt or positive net cash is defined as unrestricted cash, cash equivalents and short-term investments minus the principal amount of RFMD’s convertible subordinated notes due 2012 and 2014. Management believes that net debt or positive net cash provides useful information regarding the level of RFMD’s indebtedness by reflecting cash and investments that could be used to repay debt.

Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP gross profit and gross margin, non-GAAP operating expenses, non-GAAP operating income and operating margin, non-GAAP net income, non-GAAP net income per diluted share, free cash flow, EBITDA, non-GAAP ROIC and net debt or positive net cash, as compared to the most directly comparable GAAP financial measures of gross profit and gross margin, operating expenses, operating income, net income, net income per diluted share and net cash provided by operating activities are (i) they may not be comparable to similarly titled measures used by other companies in RFMD’s industry, and (ii) they exclude financial information that some may consider important in evaluating our performance. We compensate for these limitations by providing full disclosure of the differences between these non-GAAP financial measures and the corresponding GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the corresponding GAAP financial measures, to enable investors to perform their own analysis of our gross profit and gross margin, operating expenses, operating income, net income, net income per diluted share and net cash provided by operating activities.

RF Micro Devices will conduct a conference call at 5:00 p.m. EDT today to discuss today’s press release. The conference call will be broadcast live over the Internet and can be accessed by any interested party at http://www.rfmd.com (under “Investors”). A telephone playback of the conference call will be available approximately one hour after the call’s completion by dialing 303-590-3030 and entering pass code 4454639.

About RFMD

RF Micro Devices, Inc. (Nasdaq GS: RFMD) is a global leader in the design and manufacture of high-performance radio frequency components and compound semiconductor technologies. RFMD’s products enable worldwide mobility, provide enhanced connectivity and support advanced functionality in the cellular handset, wireless infrastructure, wireless local area network (WLAN), CATV/broadband and aerospace and defense markets. RFMD is recognized for its diverse portfolio of semiconductor technologies and RF systems expertise and is a preferred supplier to the world’s leading mobile device, customer premises and communications equipment providers.

Headquartered in Greensboro, N.C., RFMD is an ISO 9001- and ISO 14001-certified manufacturer with worldwide engineering, design, sales and service facilities. RFMD is traded on the NASDAQ Global Select Market under the symbol RFMD. For more information, please visit RFMD’s web site at 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 operating results, risks associated with the impact of global macroeconomic and credit conditions on our business and the business of our suppliers and customers, our reliance on a few large customers for a substantial portion of our revenue, the rate of growth and development of wireless markets, our ability to bring new products to market, our reliance on inclusion in third party reference designs for a portion of our revenue, our ability to manage channel partner and customer relationships, risks associated with the operation of our wafer fabrication, molecular beam epitaxy, assembly and test and tape and reel facilities, our ability to complete acquisitions and integrate acquired companies, including the risk that we may not realize expected synergies from our business combinations, our ability to attract and retain skilled personnel and develop leaders, variability in production yields, raw material costs and availability, our ability to reduce costs and improve margins in response to declining average selling prices, our ability to adjust production capacity in a timely fashion in response to changes in demand for our products, dependence on gallium arsenide (GaAs) for the majority of our products, dependence on third parties, and substantial reliance on international sales and operations. These and other risks and uncertainties, which are described in more detail in RF Micro Devices’ most recent Annual Report on Form 10-K and other reports and statements 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® and RFMD® are trademarks of RFMD, LLC. All other trade names, trademarks and registered trademarks are the property of their respective owners.

             RF MICRO DEVICES, INC. AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF INCOME
              (In thousands, except per share data)
                           (Unaudited)
                                            Three Months Ended
                                            ------------------
                                        July 2,
                                          2011           July 3, 2010
                                       --------          ------------
    Total revenue                       $214,191              $273,842

    Costs and expenses:
       Cost of goods sold                136,023               171,435
       Research and development           36,584                36,101
       Marketing and selling              15,025                14,368
       General and administrative         11,530                11,070
       Other operating expense               176                   309
                                             ---                   ---

       Total costs and expenses          199,338               233,283
                                         -------               -------

    Operating income                      14,853                40,559
    Other expense                         (3,422)               (4,315)
                                          ------                ------

    Income before income taxes           $11,431               $36,244
    Income tax expense                    (2,500)               (7,903)
                                          ------                ------

    Net income                            $8,931               $28,341
                                          ======               =======

    Net income per share,
     diluted                               $0.03                 $0.10
                                           =====                 =====

    Weighted average
     outstanding diluted shares          283,310               277,933
                                         =======               =======

                   RF MICRO DEVICES, INC. AND SUBSIDIARIES
            RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
            (In thousands, except percentages and per share data)
                                 (Unaudited)
                                            Three Months Ended
                                            ------------------
                                                  April
                                            July 2,    2,      July 3,
                                               2011     2011       2010
                                               ----     ----       ----

    GAAP operating income                   $14,853  $13,249    $40,559
      Share-based compensation expense        5,428    5,293      5,311
      Amortization of intangible assets       4,603    4,614      4,615
      Restructuring charges related to
       fiscal 2009 strategic                     92      199        205
           restructuring and adverse
            macroeconomic conditions
      Other expenses (restructuring,
       (gain) loss on PP&E,                     163      391        999
           integration, start-up costs and
            other non-cash expenses)
    Non-GAAP operating income                25,139   23,746     51,689
                                             ======   ======     ======

    GAAP net income                           8,931   24,135     28,341
      Share-based compensation expense        5,428    5,293      5,311
      Amortization of intangible assets       4,603    4,614      4,615
      Restructuring charges related to
       fiscal 2009 strategic                     92      199        205
            restructuring and adverse
             macroeconomic conditions
      Other expenses (restructuring,
       (gain) loss on PP&E,                     163      391        999
            integration, start-up costs and
             other non-cash expenses)
      Loss on retirement of convertible
       subordinated notes                       778      766          -
      Non-cash interest expense on
       convertible subordinated               2,396    3,074      4,414
              notes
      (Income) loss from equity investment      (68)      30       (226)
      Tax adjustments                       (1,040)  (16,806)       684
                                             ------  -------        ---

    Non-GAAP net income                      21,283   21,696     44,343
    Plus:  Income impact of assumed
     conversions for interest on                  -        -         15
        1.50% convertible notes
    Non-GAAP net income plus assumed
     conversion of notes-                   $21,283  $21,696    $44,358
        Numerator for diluted income per
         share                              =======  =======    =======

    GAAP and Non-GAAP weighted average
     outstanding                            283,310  285,248    277,933
        diluted shares                      =======  =======    =======

    Non-GAAP net income per share,
     diluted                                  $0.08    $0.08      $0.16
                                              =====    =====      =====


                                           Three Months Ended
                                           ------------------
                                         July 2,                April 2,
                                             2011                    2011
    GAAP gross margin                 $78,168    36.5%        $75,520    35.4%
      Adjustment for intangible
       amortization                     3,515     1.6%          3,514     1.6%
      Adjustment for share-based
       compensation                       791     0.4%            759     0.4%
      Other expenses
       (restructuring,
       integration                         79     0.0%            239     0.1%
           and other non-cash
            expenses)
    Non-GAAP gross margin             $82,553    38.5%        $80,032    37.5%
                                      =======    ====         =======    ====


                                  Three Months Ended
                                  ------------------
                                          July 3,
                                             2010
    GAAP gross margin                 $102,407    37.4%
      Adjustment for intangible
       amortization                      3,514     1.3%
      Adjustment for share-based
       compensation                        960     0.3%
      Other expenses
       (restructuring,
       integration                         508     0.2%
           and other non-cash
            expenses)
    Non-GAAP gross margin             $107,389    39.2%
                                      ========    ====

                    RF MICRO DEVICES, INC. AND SUBSIDIARIES
      ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
                      (In thousands, except percentages)
                                  (Unaudited)
                                                                Three Months
                                                                Ended
    Non-GAAP Operating Income                                   July 2, 2011
    -------------------------                                   ------------
    (as a percentage of sales)

    GAAP operating income                                                 6.9%
      Share-based compensation expense                                    2.5%
      Amortization of intangible assets                                   2.2%
      Restructuring charges related to fiscal 2009 strategic              0.0%
           restructuring and adverse macroeconomic conditions
      Other expenses (restructuring, (gain) loss on PP&E,                 0.1%
           integration, start-up costs and other non-cash
            expenses)
    Non-GAAP operating income                                            11.7%
                                                                         ====


                                        Three Months Ended
                                        ------------------
                             July 2,                April 2,        July 3,
                              2011                   2011          2010
                            --------              ---------    --------
    GAAP research
     and
     development
     expense                   $36,584               $35,471      $36,101
    Less:
      Share-based
       compensation
       expense                   1,499                 1,410        1,343
      Amortization
       of
       intangible
       assets                       13                    13           14
      Other
       expenses
       (restructuring,               -                     -          384
            integration
             and other
             non-cash                                                ---
            expenses)
    Non-GAAP
     research and
     development               $35,072               $34,048      $34,360
        expense         ===    =======               =======      =======

                                    Three Months Ended
                                    ------------------
                            July 2,              April 2,    July 3,
                              2011                   2011          2010
                            --------              ---------    --------
    GAAP
     marketing
     and selling
     expense                   $15,025               $15,386      $14,368
    Less:
      Share-based
       compensation
       expense                   1,238                 1,249        1,198
      Amortization
       of
       intangible
       assets                    1,075                 1,087        1,087
      Other
       expenses
       (restructuring,               -                     -            3
            integration
             and other
             non-cash                                                ---
            expenses)
    Non-GAAP
     marketing
     and selling               $12,712               $13,050      $12,080
        expense         ===    =======               =======      =======

                                    Three Months Ended
                                    ------------------
                            July 2,              April 2,    July 3,
                              2011                   2011          2010
                            --------              ---------    --------
    GAAP general
     and
     administrative            $11,530               $11,062      $11,070
        expense
    Less:
      Share-based
       compensation
       expense                   1,900                 1,875        1,810
    Non-GAAP
     general and
     administrative             $9,630                $9,187       $9,260
        expense                 ======                ======       ======

            RF MICRO DEVICES, INC. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED BALANCE SHEETS
                        (In thousands)
                          (Unaudited)
                                           July 2,          April 2,
                                               2011               2011
                                               ----               ----
    ASSETS
    Current assets:
        Cash and cash equivalents          $122,665           $131,760
        Restricted cash                         410                422
        Short-term investments              132,972            159,881
        Accounts receivable, net            115,655            120,375
        Inventories                         163,207            149,813
        Other current assets                 46,626             37,908
                                             ------             ------
      Total current assets                  581,535            600,159

    Property and equipment, net             214,830            209,478
    Intangible assets, net                   79,082             83,685
    Goodwill                                 95,628             95,628
    Long-term investments                     2,762              2,694
    Other non-current assets                 32,994             33,749
      Total assets                       $1,006,831         $1,025,393
                                         ==========         ==========

    LIABILITIES AND SHAREHOLDERS'
     EQUITY
    Current liabilities:
        Accounts payable and accrued
         liabilities                        133,153            130,973
        Current portion of long-term
         debt                                45,436              3,852
        Other short-term
         liabilities, net                       207                112
                                                ---                ---
      Total current liabilities             178,796            134,937

    Long-term debt, net                     113,694            177,343
    Other long-term liabilities              34,379             36,758
                                             ------             ------
      Total liabilities                     326,869            349,038

      Shareholders' equity                  679,962            676,355
                                            -------            -------

      Total liabilities and
       shareholders' equity              $1,006,831         $1,025,393
                                         ==========         ==========

SOURCE RF Micro Devices, Inc.


Source: newswire



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