At this time, I want to remind our audience that this call will include forward-looking statements that involve risk factors that could cause our actual results to differ materially from management’s current expectations. We encourage you to review the Safe Harbor Statement contained in the earnings release published today, as well as our most recent SEC filings for a complete description.In today’s release and on today’s call, we provide GAAP and non-GAAP financial measures. We provide the supplemental information to enable investors to perform additional comparisons of operating results, and to analyze financial performance without the impact of certain non-cash expenses for unusual items that may obscure trends and our underlying performance. During the call, our comments and comparisons to income statement items will be based primarily on non-GAAP results. For a complete reconciliation of GAAP, non-GAAP financial measures, please refer to our earnings release issued earlier today available on our corporate website rfmd.com under Investors. Similarly, for an explanation of how RFMD calculates return on invested capital, free cash flow, and positive net cash position, please refer to today’s earnings release. In fairness to all listeners, we ask that participants please limit themselves to one question and a followup. After each person in the queue has received a turn, we’ll give participants an opportunity to ask a second question. With me today are the line are Bob Bruggeworth, President and CEO; Dean Priddy, Chief Financial Officer; and Eric Creviston, President of our Cellular Products Group; and Bob Van Buskirk, President of our Multi-Market Products Group, as well as other members of RFMD’s management team. And with that, I’ll turn the call over to Bob Bruggeworth. Bob Bruggeworth Thanks Doug, and welcome everyone. I’m pleased to report June quarterly results that demonstrate another quarter of outstanding execution by the entire RFMD team.
RFMD delivered our fifth consecutive quarter of sequential revenue growth. And fourth consecutive quarter of record operating income, while also achieving measurable success on our strategic initiatives related to product leadership and customer diversification.On a year-over-year basis, total revenue grew 29%. RFMD’s financial performance is all the more impressive considering year-over-year revenue trends at our largest customers. Sales to our largest customer declined year-over-year, and represented approximately 44% of total revenue in the June quarter compared to 59% one year ago. Meanwhile, sales to all other customers in the June quarter grew by more than 75% year over year, adding approximately $270 million in new incremental revenue on an annualized basis. RFMD is achieving our diversification goals as our financial performance has continued to improve. Through the fiscal year, we expect continued success diversifying our revenue as a result of new and expanded customer engagements supported by the secular growth drivers in our end markets. RFMD’s markets are expanding quickly with the growth of broadband data across both fixed and mobile networks. This is accelerating demand for always-on mobile data, and for the exciting new devices and applications that connect us to our data and to each other. RFMD is benefitting as broadband infrastructure is deployed, as demand accelerates for new mobile broadband devices, and as these devices increasingly offer more modes of connectivity. Finally, RFMD is benefitting from the increasing focus on energy conservation both in the power efficiency of our products, and the power consumption of networks at large. This is placing a greater premium on RFMD’s product leadership and technology innovation. Our customers are benefitting from RFMD’s ability to integrate greater functional density and RF components that are smaller, more cost effective, and more power efficient with each generation. RFMD’s products enable reduced size, improved battery life, and proof power efficiency, lower costs, and ultimately, an enhanced user experience.
We are making considerable progress delivering a revolutionary new PowerSmart Power Platforms to a growing list of customers.Five of the world’s leading Smartphone manufacturers are conducting phone builds with PowerSmart, each of whom will support a significant expansion and dollar content per phone for RFMD. Since our last conference call, we’ve seen a significant increase in customer, in channel partner adoption of PowerSmart. Our product leadership is creating multiple opportunities for growth and diversification across the world’s largest baseband providers. We have incremental opportunities with MediaTek, Qualcomm, ST-Ericsson, Infineon, Broadcom, Marvell, and others. These opportunities span 2G and 3G entry level handsets, up through 3G-connected devices, and 3G, 4G smartphones, including TDS, CDMA, and TDLTE. In cellular, it’s our strategy to own the entire front end. RFMD has shipped our power management devices for more than five years. And we’re expanding our available markets to include Antenna Switch Modules, Switch Filter Modules, and Switch Duplexer Modules. In the June quarter, the product family generated approximately $15 million in annualized revenue. Before the end of this fiscal year, we expect the revenue run rate for these products to more than double. And we’re forecasting strong incremental revenue gains from RF Power Management and switch-based products in Fiscal 2012. Read the rest of this transcript for free on seekingalpha.com