RF Micro Swings to Loss, Beats Street
RF Micro Devices (RFMD) swung to a loss in its fiscal first quarter, but still managed to beat Wall Street expectations.
Shares of RFMD were recently up 20 cents, or 6.9%, in recent extended trading to $3.11.
Three months after announcing a major restructuring that included pulling the plug on one of its main products, RFMD said it was ahead of schedule on many of its cost-cutting initiatives.
Excluding restructuring charges and other items, RFMD said its adjusted gross margin increased sequentially to 33% in the fiscal first quarter, vs. 30.6% in the fiscal fourth quarter.The Greensboro, N.C., chipmaker said sales increased 14% year-over-year to $240.5 million. The average analyst expectation called for sales of $236.9 million. The company said sales of its cellular front end components increased 10% sequentially, while sales of its communications chips designed for industrial, military and network infrastructure equipment jumped 20% sequentially. RFMD posted a loss of $29.1 million, or 9 cents a share, vs. net income of $25.3 million, or 11 cents a share at this time last year. The loss included $26.6 million in restructuring charges, as well as about $14 million in stock compensation expenses and other items. Excluding those charges, RFMD said it earned 3 cents a share, two pennies higher than the average analyst expectation. Looking ahead, RFMD projected a revenue range of $250 million to $260 million, with adjusted EPS of roughly 5 cents. Analysts polled by Thomson Reuters were looking for $255 million in revenue with adjusted EPS of 5 cents.
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