GREENSBORO …Â RF Micro Devices (Nasdaq: RFMD), which makes semiconductors for wireless communications applications, is lowering forecasts for its first-quarter revenue and earnings.
The company expects revenue for the quarter, which ends June 30, to be in the range of $98 million to $101 million and for the quarter to be slightly profitable. This compares to guidance provided on April 16 that called for revenue to be in the range of $107 million to $110 million and earnings per share to be in the range of $0.02 to $0.03.
The anticipated shortfall in quarterly revenue is due primarily to customer delays of orders that were booked in the March quarter and had been expected to ship in the June quarter, according to the company. These delays are related mainly to the timing of introductions of certain new handset models.
The delays are being partially offset by increased order activity and shipments of components to multiple first- and second-tier handset customers, the company said in a statement. These orders are currently shipping and are expected to contribute to revenue growth in the September quarter. Based on backlog and customer forecasts, the company expects revenue and earnings will increase sequentially in the September quarter.
“While we are disappointed to revise our guidance downward for the quarter, we are encouraged by the mounting evidence of our diversification efforts, which is partially offsetting the revenue shortfall, and we expect will soon lead to the addition of a new 10 percent customer,” RF Micro Chief Executive Dave Norbury said in the statement. “We believe we are increasingly represented in the handsets of the world’s leading handset manufacturers, and we expect our market share gains will help drive our revenue growth as handset volumes increase.”
RF Micro Devices website: www.rfmd.com
