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    Stock Report for RF Micro Devices Inc. (RFMD)

    RF Micro Devices Inc. (RFMD) designs and manufactures high-performance radio frequency components and compound semiconductor technologies. Its products enable worldwide mobility, provide enhanced connectivity and support advanced functionality in the cellular handset, wireless infrastructure, wireless local area network (WLAN), CATV/broadband and aerospace and defense markets. RFMD is recognized for its diverse portfolio of semiconductor technologies and RF systems expertise and is a preferred supplier to the world’s leading mobile device, customer premises and communications equipment providers.

    Share Statistics (27-July-11)   FY












    Symbol RFMD Revenue, $Mn 978.39 1,051.76 7.5% 260.82 213.33 -18.2%
    Current price $6.54 Gross marg. 36.3% 37.0% 1.9% 37.7% 35.4% -6.1%
    52wk Range: $4.00-$8.48 Oper. margin 13.0% 5.9%
    Avg Vol (3m): 5,847,060 Net margin 7.3% 11.8% 61.6% 10.2% 11.3% 10.8%
    Market Cap. 1.81B              
    Shares Outstanding 276.86M EPS, $ 0.25 0.45 80.0% 0.10 0.09 -10.0%

    Source:, SEC Filings.

    Recent News

    RFMD’s share price jumped by 7% on Wednesday, a day after it announced its June quarter results, which beat the Street’s expectations.  Investors also cheered the microchip maker’s raising of its revenue for its fiscal second quarter.

    RFMD reported revenue of $214.2 million for the fiscal first quarter ended July 2, 2011, up from the previous quarter’s $213.3 million but down from the prior-year quarter’s revenue of $273.8 million. The Company attributed the sequential increase to growth in its core business, which more than offset a drop in sales of legacy transceiver products. Though lower than last year by 22%, revenue for the first quarter was still ahead of the $207.7 million expected by analysts..

    Net income for the quarter came in at $8.9 million, or 3 cents per share, down 69% from the prior-year quarter’s $28.3 million, or 10 cents per share.  When excluding one-time items, the Company earned 8 cents per share. That beat the 9 cents per share expected by analysts polled by FactSet.

    “During the June quarter, RFMD enjoyed strong design momentum in 3G/4G smartphones and across MPG’s diversified markets,” RFMD president and CEO Bob Bruggeworth commented in the release.  “We launched several industry-leading new products, and this fueled a sharp improvement in our customer and product mix — yielding our most diverse quarter by customer concentration. We see further customer diversification in the September quarter, supported by share gains in smartphones, tablets, smart energy management solutions, point-to-point radio chipsets for cellular backhaul, and other growth markets.

    For the September 2011 quarter, RFMD expects revenue to grow by 6% to $227.1 million or so sequentially, which implies revenue of $383.3 million, ahead of the consensus of $226.6 million.

    RFMD shares gained 1.24% to close at $6.53, on above-average volume of 19.77 million shares. The stock has been moving within a range of $4.00 – $8.48 over the past 52-weeks. RFMD is currently trading above its 50-day moving average of $5.98 and just below its 200-day moving average of $6.54. Market capitalization currently stands at $1.81 billion and it has 276.86 million outstanding shares.

    Financial Strength (27-July-2011)




    S&P 500

    Quick Ratio (MRQ) 3.34 2.49 2.10 0.65
    Current Ratio (MRQ) 4.45 3.04 2.62 1.01
    LT Debt to Equity (MRQ) 26.22 25.61 14.35 121.95
    Total Debt to Equity (MRQ) 26.79 49.41 24.41 160.20
    Interest Coverage (TTM) 3.15 0.94 19.91

    Source:, SEC Filings.

    Analyst Consensus

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

    Analyst Detail






    No Opinion

    Latest 8 4 5 1 0 0
    4 weeks ago 8 3 7 1 0 0
    2 months ago 7 3 7 1 0 0
    3 months ago 7 3 7 1 0 0
    Last year 12 3 4 2 0 0

    The 15 analysts offering 12-month price targets for RFMD have a median target of 8.00, with a high estimate of 13.00 and a low estimate of 6.00. The median estimate represents a 24.03% increase from the last price of 6.45.


    Consensus Estimates Analysis

    # of Estimates




    1 Year Ago

    SALES (in millions)
    Quarter Ending Sep-11 18 229.51 270.00 215.00 282.41
    Quarter Ending Dec-11 18 253.00 290.00 225.00 297.15
    Year Ending Mar-11 18 1,053.44 1,062.00 1,048.40
    Year Ending Mar-12 19 931.38 1,082.00 855.00 1,142.97
    Year Ending Mar-13 15 1,073.11 1,259.50 920.00 1,182.92
    EARNINGS (per share)
    Quarter Ending Sep-11 16 0.10 0.18 0.08 0.17
    Quarter Ending Dec-11 16 0.13 0.18 0.11 0.19
    Year Ending Mar-11 15 0.61 0.63 0.59
    Year Ending Mar-12 16 0.42 0.65 0.34 0.69
    Year Ending Mar-13 13 0.59 0.90 0.44
    LT Growth Rate (%) 6 15.83 20.00 15.00 16.00

    Technical Analysis


    RFMD is trading above its 20-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 within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent levels.

    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
    July27-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Broadcom Corp. BRCM 37.04 19.86B 13.28 12.43 2.63 2.39
    Skyworks Solutions Inc. SWKS 26.10 4.86B 14.34 12.49 3.52 3.06
    Agilent Technologies Inc. A 42.46 14.78B 14.74 12.98 2.23 2.06
    Semiconductor – Integrated Circuits Median       14.87 n/a 1.66 n/a
    RF Micro Devices Inc. RFMD 6.54 1.81B 15.57 11.08 1.96 1.69

    Source: Thomson Financial

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