RF Micro Devices (RFMD) posted third-quarter revenue that fell just short of Wall Street projections, but the company narrowly beat analysts' earnings expectations.
In addition, the company said fourth-quarter results would beat current estimates by analysts.
Following the announcement, shares of RF Micro rose 53 cents, or 8.3%, in after-hours trading to $6.90 on Instinet.
The maker of radio-frequency identification components said its net income for the quarter ended Dec. 31 rose to $14.7 million, or 7 cents a share, from $582,000 or break-even EPS, a year earlier.
Excluding items, the company earned $16.4 million, or 8 cents a share, beating a Thomson First Call estimate of 8 cents a share.
Revenue rose 23.1% to $208 million from $168.9 million a year earlier. First Call had expected RF Micro to post revenue of $209.7 million.
RF Micro said the boost in revenue reflected market share gains in cellular products, driven by sales of power amplifier modules, transmit modules and Polaris Total Radio transceiver products. Quarterly Polaris sales rose sequentially about 78%, representing about 17% of the company's total revenue. RFMD also benefited from strength at its largest customers, the world's leading handset manufacturers.
For its fourth quarter, RF Micro expects revenue of between $200 million and $215 million , well above Thomson estimates of 193 million. It also projected that earnings per share before items would come in between 6 cents and 7 cents a share, compared with analysts' estimates of 4 cents a share.
RF Micro said it expects revenue growth will outpace the rate of growth of the handset industry in the March quarter because of market-share gains and increased sales of higher-dollar content products, such as cellular transceiver modules and cellular transmit modules, which have higher average selling prices and increase RFMD's average dollar content per handset.
It anticipates particular strength in the markets for CDMA, GSM/GPRS and GSM/GPRS/EDGE handsets as a result of successful new product launches, recent design wins and positive momentum from leading customers.