UPDATE 1-RF Micro says FY2010 free cash flow to top forecast
* Expects to be net cash positive in FY2011
* Says repurchased $197 mln convertible notes due 2010
* Shares up as much as 5 pct
Nov 16 (Reuters) - Chipmaker RF Micro Devices (RFMD.O) said it completed all previously planned restructuring activities and now expects free cash flow for the current fiscal year to top its prior forecast.
The company, which makes chips for mobile phone companies like Nokia (NOK1V.HE) and Motorola (MOT.N), had forecast free cash flow of $130 million for the full year ending Apr. 3, 2010.
RF Micro also expects to be net cash positive in fiscal 2011, it said in a statement.
In December 2008, RF Micro said it would cut 5 percent of its total workforce to reduce costs, and in March this year it said it would cut an additional 2 percent jobs.
The company said it expects continued strength in its adjusted operating income, free cash flow and return on invested capital.
Separately, the company said it repurchased $197 million of convertible notes due 2010 using cash on hand, and expects to save about $1.9 million in interest expense.
Shares of the company were up 3 percent at $4.48 Monday morning on Nasdaq. They rose to as much as $4.56 earlier in the session. (Reporting by Manasi Phadke in Bangalore; Editing by Unnikrishnan Nair)
