Stock Alert for RF Micro Devices Inc. (RFMD)
  • Stock Alert for RF Micro Devices Inc. (RFMD)
  • Stock Alert for RF Micro Devices (RFMD)
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    Stock Alert for RF Micro Devices Inc. ($RFMD)

    RF Micro Devices Inc. (NASDAQ: $RFMD)

    RF Micro Devices Inc. (RFMD) designs and manufactures radio frequency components and compound semiconductors. The Company’s products provide connectivity and support functionality in the cellular handset, wireless infrastructure, wireless local area network, cable television/broadband and aerospace, and defense markets. RFMD manufactures gallium arsenide-based compound semiconductors. It accesses silicon, silicon germanium and other technologies through various foundries. The Company operates two synergistic product groups: cellular products group and multi-market products group, both of which focus on RF components with emphasis on compound semiconductor technology. During the fiscal year ended March 28, 2009 (fiscal 2009), the Company’s CPG supplied handset original equipment manufacturers and original design manufacturers. On April 26, 2008, the Company completed the acquisition of Universal Microwave Corp.

    Headquartered in Greensboro, N.C., RFMD is an ISO 9001- and ISO 14001-certified manufacturer with worldwide engineering, design, sales and service facilities.

    Share Statistics (20-Apr-10)

    FY

    2007

    FY

    2008

    %

    Chg

    Q4 2008

    Q4 2009

    %

    Chg

    Symbol

    RFMD

    Revenue, $Mn

    1.0B

    956.3M

    4.4%

    220.6M

    172.3M

    21.9%

    Current price

    $5.59

    Gross marg.

    34.9%

    28.8%

    17.5%

    n/a

    17.3%

    n/a

    52wk Range:

    $5.85-1.95

    Oper. margin

    7.9%

    -5.3%

    167.1%

    n/a

    -26.1%

    n/a

    Avg Vol (3m):

    8,328,830

    Net margin

    8.1%

    0.5%

    93.8%

    n/a

    -28.7%

    n/a

    Market Cap.

    1.50B

    Dil. Shares Outst.

    268.4M

    EPS, $

    0.39

    0.03

    92.3%

    -0.07

    -0.19

    171.4%

    Source: Reuters.com, SEC Filings.

    Financial Summary

    December 2009 Quarterly Highlights:

    RFMD reported financial results for its fiscal 2010 third quarter ended January 2, 2010. RFMD’s December 2009 quarterly revenue increased approximately 24% year-over-year to $250.3 million.

    GAAP gross margin for the quarter increased sequentially from 35.9% to 36.4%, and non-GAAP gross margin increased sequentially from 38.1% to 38.4%.

    GAAP operating income was $33.6 million, and non-GAAP operating income was a quarterly record $44.6 million.

    GAAP net income was $24.9 million, or $0.09 per diluted share, and non-GAAP net income was a quarterly record $38.8 million, or $0.14 per diluted share.

    RFMD(R) Product Group Highlights

    Cellular Products Group (CPG)

    • CPG experienced robust order and design win activity, driven by secular growth trends and new product cycles
    • Sales of WCDMA front ends, including the rapidly growing TD-SCDMA segment, increased approximately 80% year-over-year
    • Sales into smart phones and 3G devices approached 50% of cellular front end revenue
    • Sales to reference design customers in China more than doubled year-over-year
    • CPG launched its first fully qualified CMOS-based switch products for cellular handsets
    • CPG released 14 new products in the December quarter and is on track to release more than 40 new products in fiscal 2010

    Multi-Market Products Group (MPG)

    • MPG released its first fully qualified GaN power product and plans to release multiple GaN-based power products in the March quarter
    • Defense and Power end market applications grew 17% sequentially, driven by military high-reliability and commercial point-to-point radio applications
    • Quarterly sales to MPG’s largest CATV customers more than doubled sequentially, with strong CATV order backlog carrying into the March quarter
    • Quarterly shipments of WiMAX components increased approximately 22% sequentially
    • Shipments of automatic meter reading (AMR)/smart grid components grew by 60% sequentially and are on track to double year-over-year
    • MPG released 86 new and derivative products in the December 2009 quarter and has released 255 products year-to-date in fiscal 2010

    Financial Strength (20-Apr-2010) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 2.61 0.53 1.43 0.81
    Current Ratio (MRQ) 3.46 0.64 1.69 0.96
    Long-Term Debt to Equity (MRQ) 57.73 9.60 24.64 155.11
    Total Debt to Equity (MRQ) 63.40 15.93 38.70 220.99

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    Buy

    Outperform

    Hold

    Underperform

    Sell

    No Opinion

    This is the consensus forecast amongst 18 polled investment analysts. Against the RF Micro Devices Inc company.

    Analyst Detail

    Buy

    Outperform

    Hold

    Underperform

    Sell

    No Opinion

    Latest

    12

    0

    5

    1

    0

    0

    4 weeks ago

    12

    0

    5

    1

    0

    0

    2 months ago

    12

    0

    4

    1

    0

    0

    3 months ago

    11

    0

    5

    1

    0

    0

    Last year

    6

    0

    8

    1

    0

    0

    The 12 analysts offering 12-month price targets for RFMD have a median target of 6.75, with a high estimate of 7.75 and a low estimate of 5.00. The median estimate represents a 24.31% increase from the last price of 5.43.

    Source: www.ft.com

    Consensus Estimates Analysis

    # of Estimates

    Mean

    High

    Low

    1 Year Ago

    SALES (in millions)

    Quarter Ending Jun-10

    14

    247.54

    252.73

    238.40

    191.62

    Quarter Ending Sep-10

    15

    259.26

    275.21

    241.90

    205.04

    Year Ending Mar-10

    14

    959.25

    962.57

    949.00

    755.14

    Year Ending Mar-11

    15

    1,038.09

    1,087.53

    988.40

    827.28

    EARNINGS (per share)

    Quarter Ending Jun-10

    15

    0.12

    0.13

    0.10

    -0.01

    Quarter Ending Sep-10

    15

    0.13

    0.16

    0.12

    0.00

    Year Ending Mar-10

    14

    0.44

    0.46

    0.43

    -0.01

    Year Ending Mar-11

    14

    0.52

    0.58

    0.45

    0.05

    LT Growth Rate (%)

    4

    17.50

    20.00

    15.00

    13.60

    Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=RFMD.O

    Investment Highlights

    RFMD, a global leader in the design and manufacture of high-performance radio frequency components and compound semiconductor technologies, recently announced the introduction of the ML2730, a single-chip fully integrated Frequency Shift Keyed (FSK) transceiver with integrated power amplifier (PA) and low noise amplifier (LNA). The ML2730 expands RFMD’s portfolio of ISM band single-chip transceivers, covering 900 MHz, 2.4GHz and 5.8GHz.

    The ML2730 is optimized for a variety of wireless media applications (audio, video and data) operating in the 2.400GHz to 2.485GHz unlicensed ISM band. The high data rate capability of the ML2730 supports streaming applications like wireless audio and wireless video, and the ML2730 is also suitable for a variety of radio controlled applications. By integrating the PA and LNA on a single chip, the ML2730 enables customers to develop robust wireless links with improved sensitivity and output power while reducing both costs and board size.

    Source: http://www.rfmd.com/

    Technical Analysis

    Source: http://stockcharts.com

    RFMD is trading above its 50-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

    RFMD is trading near its upper Bollinger Band. This suggests that the stock price is high relative to its recent price action.

    The MACD for RFMD currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name

    Ticker

    Price per

    Mrkt. Cap.

    P/E

    P/S

    Apr20-2010

    symbol

    Share, $

    $ Mn

    2009

    2010

    2009

    2010

    TriQuint Semiconductor

    TQNT

    7.84

    1.20B

    80.42

    n/a

    1.85

    n/a

    Hittite Microwave Corp.

    HITT

    46.01

    1.39B

    29.75

    n/a

    8.66

    n/a

    Skyworks Solutions Inc.

    SWKS

    16.00

    2.81B

    28.33

    n/a

    3.54

    n/a

    Semiconductor Median

    46.16

    n/a

    4.68

    n/a

    RF Micro Devices Inc.

    RFMD

    5.59

    1.50B

    n/a

    n/a

    1.66

    n/a

    Source: Thomson Financial

    Insider Trading Activity

    NET SHARES PURCHASE ACTIVITY

    Inside Purchases – Last 6 Months

    Shares

    Transaction

    Purchases

    1,000

    1

    Sales

    560,717

    17

    Net Shares Purchased (Sold)

    (559,717)

    18

    Total Insider Shares Held

    29.88M

    n/a

    % Net Shares Purchased (Sold)

    (1.8%)

    n/a

    Net Institutional Purchases – Prior Qtr to Latest Qtr

    Shares

    Net Shares Purchased (Sold)

    (24,110,400)

    % Change in Institutional Shares Held

    (19.4%)

    Source: Yahoo Finance

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