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28 May 2009


RFMD seeing better-than-expected order activity

At the Barclays Capital Wireless And Wireline Conference in New York yesterday, Bob Bruggeworth, president & CEO of RF Micro Devices Inc of Greensboro, NC, USA, said that the firm’s fiscal first-quarter 2010 (ending 27 June) is seeing better-than-expected demand for its products, and that its factory utilization rate is currently above 75% (up from about 25% in the March quarter). In addition, RFMD's new, higher-margin products are representing an increasing percentage of total revenue. As a result, gross margin is trending above plan.

Bruggeworth also said that RFMD's expenses are on plan, and that the firm is executing on its free cash flow projections of $80-120m in fiscal 2010.

Capital expenditure was about $4m in the March quarter, and is expected to be $3-5m in the June quarter. RFMD also expects to decrease its net debt.

See related items:

RFMD still generating cash despite further 15% drop in revenue

RFMD’s fab utilization rebounding as orders improve

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