* Sees 3rd-qtr adj EPS $0.13-$0.14/shr vs est $0.13
* Sees 3rd-qtr rev $310.7-$326.2 mln vs est $326.3 mln
* 2nd-qtr adj EPS $0.12/shr vs est $0.10
* 2nd-qtr rev $310.7 mln vs est $308.2 mln
* Shares fall 6.6 pct
By Lehar Maan
Oct 22 Chipmaker RF Micro Devices Inc
forecast current-quarter revenue below market expectations,
saying it expects revenue from its wireless infrastructure
business to decline, mainly due to lower seasonal orders from
cable TV networks.
RF Micro's shares fell as much as 6.6 percent to $5.75
after the bell on Tuesday.
The company's multi-market products business unit, which
makes routers and chips for wireless infrastructure such as WiFi
connectivity, is its second-biggest revenue generator.
"I think the disappointment is that revenue forecast isn't
as high as expectations," Charter Equity Research analyst Edward
Snyder told Reuters.
"Sounds like their core business of handsets is doing better
than expected, but their non-handset business has been
weaker...I would expect its predominantly WiFi," Snyder added.
Revenue from RF Micro's its multi-markets products group
slipped 2.1 percent in the year ended March due to lower demand
for wireless infrastructure products. The segment contributed
about 21 percent to total revenue.
RF Micro said on Tuesday it expected revenue from the
business to decline in the current quarter ending December
compared with the just-finished second quarter.
"It's pretty common for us to see cable TV network buildouts
slow down in the winter months, causing cable networking to be
slower in the December quarter for us," a company executive said
in a post-earnings conference call.
RF Micro's chips are used in broadband routers to provide
WiFi connectivity and in base stations installed by telecom
operators to transmit wireless network.
The chipmaker, which also supplies cellular radio frequency
chips for use in mobile devices such as handsets, notebook
computers and tablets, forecast third-quarter adjusted earnings
of 13-14 cents per share.
Revenue is expected to be flat to up 5 percent, implying
revenue of $310.7 million to $326.2 million.
Analysts on average were expecting earnings of 13 cents per
share on revenue of $326.3 million, according to Thomson Reuters
RF Micro, which counts Samsung Electronics Co Ltd
as its biggest customer, reported net income of $5.9
million, or 2 cents per share, for the second quarter, compared
with a net loss of $16.5 million, or 6 cents per share, a year
Increasing demand for internet connectivity and social media
while on the move is driving sales of mobile devices, which use
more radio frequency chips than basic phones.
RBC Capital Markets analyst Doug Freedman said in September
that a tear-down of Apple Inc's iPhone 5s and 5c models
showed that RF Micro and Skyworks Solutions Inc had
replaced the main antenna switch previously supplied to iPhones
by Peregrine Semiconductor Corp.
"For now on they are the bigger player in iPhone so it's
very good for the fourth quarter," D. A. Davidson & Co analyst
Thomas Diffely told Reuters.
RF Micro is also expected to benefit from the roll-out of
new high-end phones from Samsung, which accounted for about 22
pct of the company's net revenue in the year to March.
Excluding one-time items, RF Micro earned 12 cents per
share, above the average analyst estimate of 10 cents per share.
Revenue rose 48 percent to $310.7 million. Analysts on an
average had expected revenue of $308.2 million.
Greensboro, North Carolina-based RF Micro's shares closed at
$6.16 on the Nasdaq on Tuesday.