RF Micro Posts Profit On Cell Phone Strength

GREENSBORO, N.C. (AP) — RF Micro Devices Inc. posted a quarterly profit after losing money in the same period last year, helped in the latest period by stronger sales of chips to cell phone makers and customers in China.

The results topped Wall Street's expectations, and the stock jumped 28 cents, or 7 percent, to $4.30 in extended trading after the numbers were reported.

Net income was $14.6 million, or 5 cents per share, versus a loss of $14.2 million, or 5 cents per share, in the year-ago period. Excluding items, profit was 13 cents per share.

Sales fell 6 percent to $254.8 million.

Analysts expected profit of 8 cents per share, excluding items, on $234 million in revenue.

The company said it believes its "overall business environment is improving" based on strong demand from cell phone makers and "significantly improved" visibility on ordering patterns for other customers.

The company said it expects sequential revenue and earnings-per-share growth in the December quarter.