"Looking forward, we continue to focus on delivering strong profitability, cash flow and margin improvement, while investing in product development to drive our future growth in the smartphone, 3G, 4G and TV markets. Our consistent execution across all product categories serves as proof of RDA's ability to extend our successful track record into other growing markets with our established customer relationships, strong market position and technology innovations."
Fourth Quarter Operating Summary:
- Revenue was $115.6 million, compared to $109.3 million in the previous quarter and $82.4 million in the fourth quarter of 2011. The growth in revenue was mainly driven by continued market share gains from baseband.
- Gross margin was 31.7%, compared with 31.1% in the previous quarter and 35.3% in the fourth quarter of 2011. The sequential increase in gross margin reflected increasing shipments of the higher margin baseband product RDA8851. The decrease in gross margin over the prior year period was primarily due to the addition of baseband revenue, which consisted predominately of products with lower than consolidated average corporate gross margin.
- R&D expenses were $17.8 million, compared to $16.0 million in the previous quarter and $8.7 million in the fourth quarter of 2011. SG&A expenses were $5.8 million, compared to $4.0 million in the previous quarter and $3.9 million in the prior year period.
- The sequential increases in R&D and SG&A expenses reflect performance-based employee compensation expenses accrued in the quarter.
- GAAP net income was $13.4 million, compared to $13.5 million in the previous quarter and $16.6 million in the fourth quarter of 2011.
- Non-GAAP net income was $16.4 million, compared to $16.7 million in the previous quarter and $17.4 million in the fourth quarter of 2011.
Balance Sheet and Cash Flow Summary as of December 31 , 201 2 :
- Cash, cash equivalents and short-term investments were $117.5 million, compared to $167.0 million as of September 30, 2012. In the fourth quarter of 2012, the Company generated $8.7 million in cash from operations, compared to $10.8 million in the prior quarter. The Company also paid a one-time special cash dividend totaling $55.6 million on October 18, 2012.
- Accounts receivable increased to $31.7 million, compared to $28.2 million as of September 30, 2012, reflecting higher sequential revenue.
- Inventory decreased $6.5 million to $52.0 million from $58.5 million as of September 30, 2012. The decrease of inventory was mainly due to a strong sell-through during the quarter.
- Accounts payable was $45.1 million, compared to $55.8 million as of September 30, 2012.
First Quarter 201 3 Business Outlook:For the first quarter of 2013, the Company expects revenue to be in the range of $96 million to $97 million, an increase of 33.3% to 34.7% year-over-year, and a decrease of 16.1% to 17.0% sequentially, reflecting historical seasonal patterns including the shortened sales period due to the Chinese New Year holiday. The Company expects gross margins to be approximately 32.0%.