RF Micro Devices Earnings: Here’s Why Investors are Not Happy

RF Micro Devices Inc. (NASDAQ:RFMD) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2%.

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RF Micro Devices Inc. Earnings Cheat Sheet

Results: Net loss decreased -85.09% to $1.4 million (8 cents per diluted share) in the quarter versus a net loss of $9.39 million in the year-earlier quarter.

Revenue: Rose 20.3% to $271.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: RF Micro Devices Inc. reported adjusted net income of 8 cents per share. By that measure, the company beat the mean analyst estimate of $0.06. It beat the average revenue estimate of $245.73 million.

Quoting Management: Dean Priddy, CFO and vice president of administration of RFMD, said, “RFMD’s December quarterly revenue increased by 29% quarter-over-quarter to $271.2 million and supported a near tripling in non-GAAP operating income quarter-over-quarter to $26.8 million. On the balance sheet, RFMD generated $43.3 million in cash flow from operations during the December quarter, versus $1.9 million in the prior quarter, nearly offsetting the purchase in November of Amalfi Semiconductor.”

Key Stats:

Revenue increased 29.35% from $209.67 million in the previous quarter. Net loss decreased 91.49% from $16.46 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.02 to a profit $0.04. For the current year, the average estimate has moved up from a profit of $0.07 to a profit of $0.14 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)