EXHIBIT 99.1
RF MICRO DEVICES
NEWS RELEASE
At RF Micro Devices:
Dean Priddy Doug DeLieto
Chief Financial Officer Dir., Investor Relations
(336) 931-7152 (336) 931-7968
At the Financial Relations Board
Alison Ziegler
(212) 445-8432
For Immediate Release
April 27, 2004
RF MICRO DEVICES ANNOUNCES FISCAL 2004
FOURTH QUARTER AND YEAR-END RESULTS
Highlights:
- - Fiscal 2004 Revenue Grows 28.3% Over Fiscal 2003 To $651.4 Million
- - Quarterly Revenue Grows 18.1% Over March 2003 To $163.4 Million
- - March Quarterly Gross Profit Margin Equals 37.3%
- - March Quarterly Loss Per Share Equals $(0.00), Including The Impact
Of A Non-Cash Asset Impairment Charge Of $7.7 Million, Or $(0.04)
Per Share, Compared To $(0.07) In March 2003
- - RFMD Currently Expects June Revenue Will Increase Sequentially 3%-5%
And Earnings Per Share Will Be Approximately $0.03 To $0.04,
Excluding Silicon Wave In-Process R&D Charges Of Approximately $(0.02)
Greensboro, NC, April 27, 2004 -- RF Micro Devices, Inc. (Nasdaq:
RFMD), a leading provider of proprietary radio frequency integrated
circuits (RFICs) for wireless communications applications, today reported
financial results for its fiscal 2004 fourth quarter and year ended March
31, 2004.
Financial Results:
Revenue for the quarter was $163.4 million, an increase of 18.1% versus
revenue of $138.3 million for the corresponding quarter of fiscal 2003,
and a sequential decrease of 15.3% versus revenue of $193.0 million for
the quarter ended December 31, 2003. The Company's revenue for the
quarter reflects market share gains in its core market of power amplifiers
(PAs) for cellular handsets, offset by normal seasonality in the handset
market.
Gross profit for the quarter was $60.9 million, an increase of
approximately 49.3% versus $40.8 million in the prior-year period and a
sequential decrease of approximately 24.3% from $80.4 million for the
quarter ended December 31, 2003. The sequential decline in gross profit
for the quarter reflects the sequential decline in revenue and lower-than-
average gross margins related to aggressive new product ramps.
Net loss for the quarter was $0.9 million, or $(0.00) per diluted share,
which includes the impact of a $7.7 million non-cash asset impairment
charge. This compares to a quarterly net loss of $13.0 million, or
$(0.07) per diluted share, in the fiscal 2003 fourth quarter and net
income of $28.2 million, or $0.13 per diluted share, in the fiscal 2004
third quarter. The March 2004 non-cash, asset impairment charge of $7.7
million, which reduced earnings per share by $(0.04) per share, is related
to a settlement resulting from the discontinuation of an inactive silicon
manufacturing supply agreement announced in May 2001.
Business Outlook And Financial Guidance:
RF Micro Devices forecasts continued revenue growth in fiscal 2005, driven
by strength in the cellular handset market, market share gains in cellular
PAs and new product introductions across multiple product segments,
including cellular transceivers, wireless local area networks (WLANs) and
Bluetooth wireless technology. The Company also anticipates its margin
improvement initiatives and revenue growth will continue to have a
favorable impact on its profitability throughout the year.
RF Micro Devices currently anticipates June 2004 quarterly revenue will
increase sequentially 3% to 5%. The Company currently anticipates June
quarterly earnings per share, in accordance with Generally Accepted
Accounting Principles (GAAP), of $0.01 to $0.02 per share, including the
projected write-off of approximately $(0.02) per share of in-process R&D
related to the acquisition of Silicon Wave. Without the charges, the
Company anticipates earnings per share for the June quarter of $0.03 to
$0.04.
Comments From Management:
Bob Bruggeworth, president and chief executive officer of RF Micro
Devices, said, "Fiscal 2004 was a strong year for RF Micro Devices
financially and strategically. We strengthened our balance sheet, we
improved operational efficiencies and we invested for profitable long-term
growth. Among our most noteworthy financial achievements, we turned the
corner on profitability during the fiscal year and posted earnings per
share for the year of fifteen cents, on a GAAP basis, which includes this
quarter's $(0.04) impairment charge. Excluding this non-cash charge,
earnings per share for fiscal 2004 totaled nineteen cents. Our revenue
increased approximately 28 percent year-over year, and we're structured
for profitable growth going forward.
"RF Micro Devices has a history of growth, and we expect our fiscal 2005
will be a year of strong profitable growth, with double-digit revenue
increases at all three of our business units. Within our cellular
business unit, we expect our growth will come from continued market share
gains in PAs, along with the Company's initial production shipments of
cellular transceivers. Within our wireless connectivity business unit, we
expect to grow throughout fiscal 2005, and we expect our near-term
opportunities will be fueled by WLAN and Bluetooth. Finally, within our
infrastructure business unit, we expect strong growth for the year, driven
by increasing sales of GaAs pre-drivers for wireless cell towers.
"We are extremely well positioned in a robust handset market and sharply
focused on opportunities to expand our presence in complementary markets.
We anticipate a year of profitable growth that will outpace the rate of
growth of the handset industry," Bruggeworth said.
Dean Priddy, CFO and vice president of administration, said, "We believe
we're well positioned for continued near- and long-term growth. In the
March quarter we began ramping several industry-leading products,
including sole-source CDMA and GSM lead frame modules, the world's
smallest quad-band EDGE PA module, single-chip Bluetooth solutions and Wi-
Fi transceivers. These products will continue ramping in the June quarter
and we expect our first production revenue from POLARIS cellular
transceivers. Additionally, our balance sheet has never been stronger,
which allows us to fully execute on our long-range plan. Of note, we
finished our fiscal 2004 with a record $117 million in cash flow from
operations."
RF Micro Devices will conduct a conference call at 5:00 p.m. ET today to
discuss today's press release. The conference call will be broadcast live
over the Internet and can be accessed by any interested party at
www.fulldisclosure.com or www.rfmd.com (under Investor Info). The call
will also be available live by dialing (303) 262-3300, and a replay will
be available by dialing (303) 590-3000 and entering pass code 576609.
RF Micro Devices, Inc., an ISO 9001- and ISO 14001-certified manufacturer,
designs, develops, manufactures and markets proprietary RFICs primarily for
wireless communications products and applications such as cellular and PCS
phones, base stations, WLANs and cable television modems. The Company offers
a broad array of products - including amplifiers, mixers, modulators/
demodulators, and single-chip receivers, transmitters and transceivers -
representing a substantial majority of the RFICs required in wireless
subscriber equipment. The Company's goal is to be the premier supplier of
low-cost, high-performance integrated circuits and solutions for applications
that enable wireless connectivity. RF Micro Devices, Inc., is traded on the
Nasdaq National Market under the symbol RFMD. For more information about
RFMD, please visit www.rfmd.com.
This press release contains forward-looking statements that relate to RF Micro
Devices' plans, objectives, estimates and goals. Words such as "expects,"
"anticipates," "intends," "plans," "projects," "believes" and "estimates,"
and variations of these words and similar expressions, identify these forward-
looking statements. RF Micro Devices' business is subject to numerous risks
and uncertainties, including variability in quarterly operating results, the
rate of growth and development of wireless markets, risks associated with the
operation of wafer fabrication, molecular beam epitaxy and test, tape and reel
facilities and the Company's conversion from four-inch to six-inch wafer
manufacturing, its ability to manage rapid growth and to attract and retain
skilled personnel, variability in production yields, its ability to control
and reduce costs and improve gross margins on highly integrated products,
dependence on a limited number of customers and dependence on third parties.
These and other risks and uncertainties, which are described in more detail
in RF Micro Devices' most recent Annual Report on Form 10-K filed with the
Securities and Exchange Commission, could cause actual results and developments
to be materially different from those expressed or implied by any of these
forward-looking statements.
# # #
RF MICRO DEVICES-Registered Trademark- and RFMD-Registered Trademark- are
trademarks of RFMD, LLC. BLUETOOTH is a trademark owned by Bluetooth SIG,
Inc., U.S.A. and licensed for use by RF Micro Devices, Inc. All other trade
names, trademarks and registered trademarks are the property of their
respective owners.
Financial Tables Follow
RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
March 31, March 31,
2004 2003 2004 2003
--------- --------- --------- ---------
Total revenue $ 163,421 $ 138,329 $ 651,379 $ 507,819
Costs and expenses:
Cost of goods sold 102,517 97,539 405,008 325,168
Research and development 34,355 31,708 128,152 101,736
Marketing and selling 11,601 10,610 45,226 36,833
General and administrative 5,642 4,730 21,135 18,364
Impairment of long-lived assets 7,678 -- 7,678 --
Other operating expense 526 2,108 2,107 13,961
------- ------- ------- -------
Total costs and expenses 162,319 146,695 609,306 496,062
Operating income (loss) 1,102 (8,366) 42,073 11,757
Equity (loss) in investment (1,094) -- (2,831) --
Other (expense) income, net (775) (4,499) (9,049) (20,842)
------- ------- ------- -------
(Loss) income before
income taxes $ (767) $(12,865) $ 30,193 $ (9,085)
Income tax expense 92 121 485 250
------- ------- -------- -------
Net (loss) income $ (859) $(12,986) $ 29,708 $ (9,335)
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Net (loss) income per share,
diluted $ (0.00) $ (0.07) $ 0.15 $ (0.05)
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Weighted average outstanding
diluted shares 185,819 183,142 213,272 172,706
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RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, March 31,
2004 2003
--------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 220,915 $ 164,422
Short-term investments 106,930 92,187
Accounts receivable, net 86,287 66,849
Inventories 58,552 57,781
Other current assets 10,098 11,382
--------- ---------
Total current assets 482,782 392,621
Property and equipment, net 280,356 312,013
Goodwill 110,006 110,006
Long-term investments 62,908 59,440
Intangible assets, net 50,165 56,486
Other assets 1,799 2,259
--------- ---------
Total assets $ 988,016 $ 932,825
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $ 55,671 $ 46,879
Other short-term
liabilities, net 213 30,661
--------- ---------
Total current liabilities 55,884 77,540
Long-term debt, net 324,626 295,865
Other long-term liabilities 4,368 2,020
--------- ---------
Total liabilities 384,878 375,425
Shareholders' equity:
Total shareholders' equity 603,138 557,400
--------- ---------
Total liabilities and
shareholders' equity $ 988,016 $ 932,825
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