RF Micro Devices
said strong customer demand and effective cost-cutting will result in a better-than-expected second quarter at the wireless-chip maker.
The shares were recently up 51 cents, or about 6%, to $9.52 on Instinet.
RF Micro, based in Greensboro, N.C., expects to break even on revenue that grows by a double-digit percentage from the first quarter, implying revenue of about $145 million in the period ending Sept. 30. Analysts surveyed by Thomson First Call were forecasting a loss of 3 cents a share on revenue of $135.8 million.
On July 15, the company forecast a second-quarter loss of 4 cents or 5 cents a share on revenue of about $130 million.
"Customer activity has been robust, the product mix is improving and our internal gross margin improvement initiatives are tracking better than we originally anticipated," RF Micro said. The company currently expects a three-percentage-point improvement in second-quarter gross margin, up from the one-percentage-point increase it predicted July 15.
"Looking beyond September, the strong, sustained order activity we've seen this quarter provides us with a healthy and increasing backlog entering the December quarter," the company said, adding that it will update specific third-quarter guidance when it announces second-quarter earnings on Oct. 21.