Boston, MA 10/24/2013 (wallstreetpr) – RF Micro Devices, Inc. (NASDAQ:RFMD) announced very good quarterly report on October 22, 2013 after the markets closed. The company reported that revenues rose to $310.90 million for the quarter, a rise of 48.2% as compared to the revenues of $210 million for the same quarter last year. The revenues also managed to beat the analysts’ expectation of $308.23 million. The company swung to profits after declaring earnings of $5.90 million as compared to a loss of $16.50 million for the same period last year. The earnings translate to $0.12 per share as compared to $0.03 for the same period last year.
The company was relying heavily on Nokia Corporation (ADR) (NYSE:NOK) for its revenues in the past. With the troubles in Nokia still not over, analysts had expected the company to concentrate on Apple Inc (NASDAQ:APPL) and Samsung. The company was successful in increasing its content in the smartphone segment. RF Micro Devices is also in a good position to take advantage of the shift from entry level smartphones to voice-centric 2G and entry level 3G devices. The company was also able to take advantage of the growing demand for broadband connectivity. Samsung now accounts for 22% of the company’s revenues. RF Micro is expected to benefit from the roll-out of high-end phones from both Samsung and Apple. The efforts of the diversification drive appear to be paying off with the company recording margin expansion and operating leverage. The Multi-Market Products group contributed to a revenue rise of 12%. The company expects to see a decline in revenues from this business for the current quarter. This is a seasonal phenomenon as cable TV network build-outs slow down in the winter months. The company’s guidance for the quarter ending December 2014 was weak. The company expects revenues of $311 million to $326 million with earnings in the range of $0.13 to $0.14. The weaker guidance made the investors jittery and they dumped the company’s stock. The share prices were down by 8.60% to $5.63 at the end of trading on October 23, 2014.
