Operating Segment Information | 6 Months Ended |
Sep. 28, 2013 |
Segment Reporting [Abstract] | |
OPERATING SEGMENT INFORMATION | OPERATING SEGMENT INFORMATION |
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RFMD’s operating segments as of September 28, 2013 are its Cellular Products Group (CPG), Multi-Market Products Group (MPG) and Compound Semiconductor Group (CSG). |
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CPG is a leading global supplier of cellular radio frequency (RF) solutions that perform various functions in the cellular front end section. The cellular front end section is located between the transceiver and the antenna. These RF solutions are required in third generation (3G) and fourth generation (4G) devices, and they include power amplifier (PA) modules, transmit modules, PA duplexer modules, antenna control solutions, antenna switch modules, switch filter modules, switch duplexer modules and RF power management solutions. CPG supplies its broad portfolio of cellular RF solutions into a variety of mobile devices, including smartphones, handsets, netbooks, notebooks and tablets. |
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MPG is a leading global supplier of a broad array of RF solutions, such as PAs, low noise amplifiers, variable gain amplifiers, high power gallium nitride transistors, attenuators, modulators, switches, voltage-controlled oscillators (VCOs), phase locked loop modules, multi-chip modules, front end modules, and a range of military and space components (amplifiers, mixers, VCOs and power dividers). Major communications applications include mobile wireless infrastructure, point-to-point and microwave radios, small cells, WiFi (routers, access points, mobile devices and customer premises equipment) and cable television (CATV) infrastructure. Industrial applications include Smart Energy/Advanced Metering Infrastructure (AMI), private mobile radio, and test and measurement equipment. Aerospace and defense applications include military communications, radar and electronic warfare, as well as space communications. |
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During the second quarter of fiscal 2013, the Company's foundry services were realigned from its CSG to its MPG. CSG is a business group established to leverage RFMD’s compound semiconductor technologies and related expertise in RF and non-RF end markets and applications. |
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As of September 28, 2013, the Company’s reportable segments are CPG and MPG. CSG does not currently meet the quantitative threshold for an individually reportable segment under ASC 280-10-50-12 and is therefore included in the “Other operating segment” line in the following tables. CPG and MPG are separate reportable segments based on the organizational structure and information reviewed by the Company’s Chief Executive Officer, who is the Company’s chief operating decision maker (or CODM), and are managed separately based on the end markets and applications they support. The CODM allocates resources and assesses the performance of each operating segment primarily based on non-GAAP operating income (loss) and non-GAAP operating income (loss) as a percentage of revenue. |
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The “All other” category includes operating expenses such as share-based compensation, amortization of purchased intangible assets, acquisition-related costs, loss on asset transfer transaction, intellectual property rights (IPR) litigation costs, the inventory revaluation resulting from the transfer of the Company's molecular beam epitaxy (“MBE”) operations, net restructuring costs, and other miscellaneous corporate overhead expenses that the Company does not allocate to its reportable segments because these expenses are not included in the segment operating performance measures evaluated by the Company’s CODM. The CODM does not evaluate operating segments using discrete asset information. The Company’s operating segments do not record inter-company revenue. The Company does not allocate gains and losses from equity investments, interest and other income, or taxes to operating segments. Except as discussed above regarding the “All other” category, the Company’s accounting policies for segment reporting are the same as for RFMD as a whole. |
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The following tables present details of the Company’s reportable segments and a reconciliation of the “All other” category (in thousands): |
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| Three Months Ended | | Six Months Ended |
| September 28, | | September 29, | | September 28, | | September 29, |
2013 | 2012 | 2013 | 2012 |
Net revenue: | | | | | | | |
CPG | $ | 255,476 | | | $ | 160,447 | | | $ | 493,188 | | | $ | 313,025 | |
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MPG | 55,232 | | | 49,224 | | | 110,516 | | | 99,306 | |
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Other operating segment | 8 | | | — | | | 8 | | | — | |
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Total net revenue | $ | 310,716 | | | $ | 209,671 | | | $ | 603,712 | | | $ | 412,331 | |
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Income (loss) from operations: | | | | | | | |
CPG | $ | 29,082 | | | $ | 7,204 | | | $ | 51,032 | | | $ | 10,460 | |
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MPG | 8,871 | | | 2,774 | | | 15,731 | | | 4,339 | |
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Other operating segment | (751 | ) | | (655 | ) | | (1,573 | ) | | (1,264 | ) |
All other | (27,746 | ) | | (19,473 | ) | | (52,499 | ) | | (36,552 | ) |
Income (loss) from operations | 9,456 | | | (10,150 | ) | | 12,691 | | | (23,017 | ) |
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Interest expense | (1,403 | ) | | (1,644 | ) | | (2,912 | ) | | (3,718 | ) |
Interest income | 41 | | | 64 | | | 82 | | | 143 | |
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Loss on retirement of convertible subordinated notes | — | | | (2,034 | ) | | — | | | (2,756 | ) |
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Other income (expense) | 363 | | | 617 | | | 771 | | | (121 | ) |
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Income (loss) before income taxes | $ | 8,457 | | | $ | (13,147 | ) | | $ | 10,632 | | | $ | (29,469 | ) |
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| Three Months Ended | | Six Months Ended |
| September 28, | | September 29, | | September 28, | | September 29, |
2013 | 2012 | 2013 | 2012 |
Reconciliation of “All other” category: | | | | | | | |
Share-based compensation expense | $ | (10,436 | ) | | $ | (9,546 | ) | | $ | (19,868 | ) | | $ | (15,292 | ) |
Amortization of intangible assets | (6,746 | ) | | (4,752 | ) | | (13,963 | ) | | (9,324 | ) |
Restructuring and disposal costs associated with the phase out of manufacturing and sale of the U.K. facility | (3,254 | ) | | — | | | (7,809 | ) | | — | |
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Loss on asset transfer transaction | — | | | — | | | — | | | (5,042 | ) |
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IPR litigation costs | (1,902 | ) | | (2,775 | ) | | (2,726 | ) | | (3,518 | ) |
Inventory revaluation resulting from transfer of MBE operations | — | | | (2,436 | ) | | — | | | (2,518 | ) |
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Certain consulting expense | (4,800 | ) | | — | | | (7,000 | ) | | — | |
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Other expenses (including restructuring, acquisition-related costs, (gain) loss on property and equipment, and start-up costs) | (608 | ) | | 36 | | | (1,133 | ) | | (858 | ) |
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Loss from operations for “All other” | $ | (27,746 | ) | | $ | (19,473 | ) | | $ | (52,499 | ) | | $ | (36,552 | ) |