RF Micro Hit by Inventory
RF Micro shares dropped 8% after being halted briefly following the market's close Thusday.
The Greensboro, N.C., tech shop says it will lose between 8 cents and 9 cents a share on $150 million in sales. Analysts had been looking for a 2-cent-a-share loss on $153 million in revenue, according to a Reuters Research tally.
RF Micro blamed poor demand for three of its products, two that go into the guts of cell phones. The earnings warning from one of the biggest cell-phone component suppliers will likely raise concerns that wireless handset growth may be cooling off faster than expected."We are disappointed in our results for the quarter," CEO Bob Bruggeworth said in a press release Thursday, adding that "the company is positioned well for its upcoming fiscal year. The handset industry continues to adopt next-generation air interface standards." On a brighter note, the company said that it will see sequential increases in sales and gross margins in the current quarter ending in June. Late Thursday, RF Micro slipped 39 cents to $4.55.
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