RFMD® - Press Release 5-21-2008
RFMD® and SELEX GALILEO Announce Signing
of Strategic Supply AgreementStrategic Supply Agreement for Aerospace & Defense Market Valued at Approximately $20 Million Through 2013
GREENSBORO, N.C. and LONDON, May 27 /PRNewswire-FirstCall/ -- RF Micro Devices, (Nasdaq: RFMD), a global leader in the design and manufacture of high-performance semiconductor components, and SELEX GALILEO, one of Europe's leading defense electronics suppliers, today announced the two companies have signed a strategic supply agreement. The strategic supply agreement expands upon a former agreement signed in 2001 between SELEX GALILEO and a division of the former Filtronic Compound Semiconductor Ltd, which was acquired by RFMD(R) on February 29, 2008.
The strategic supply agreement is expected to encompass multiple high performance semiconductor components, including GaAs pHEMT MMICs supporting electronically scanned (ESCAN) radar and Active Electronically Scanned Array (AESA) radar applications. As a result of the supply agreement the two companies expect RFMD will increasingly support SELEX GALILEO's delivery of a range of current and future state-of-the-art defense electronics programs. Accordingly, both companies anticipate the strategic supply agreement to be valued at approximately $20 million through 2013.
Speaking recently at a special signing ceremony in London, Norman Bone, Senior Vice President, Radar and Advanced Targeting of SELEX GALILEO, said, "We operate in a highly competitive market so it is crucial that we align ourselves strategically with the best possible suppliers who will allow us to deliver on our challenging business goals. RFMD's diverse portfolio of state-of-the-art semiconductor technologies combined with their RF systems expertise made them an obvious choice for our company. We look forward to forging a stronger and more successful relationship."
Bob Van Buskirk, president of RFMD's Multi-Market Products Group, speaking at the signing ceremony, said, "We are very pleased to sign this strategic supply agreement and extend our relationship with SELEX GALILEO. SELEX GALILEO is one of Europe's leading defense electronics suppliers, and they are a highly valued customer for RFMD. As the industry leader in the development and manufacture of compound semiconductors and the industry leader in the design and manufacture of RF components, RFMD is uniquely positioned to support SELEX GALILEO's stringent requirements for high-performance semiconductor components."
RFMD expects to expand its aerospace & defense business in Europe and is strengthening its commitment to support European aerospace & defense customers with high-performance semiconductor components developed and manufactured in its Newton Aycliffe, UK-based subsidiary.
RFMD's Aerospace & Defense Business Unit delivers a broad product portfolio for multiple market segments, including radio and communications systems, radar systems, space systems, satellite and missile programs, telemetry and homeland security. Among RFMD's extensive product offerings are COTS amplifiers, high power amplifiers, high reliability amplifiers, low noise amplifiers, mixers, power dividers, transformers, VCOs and PLL modules. For more information about RFMD's Aerospace & Defense Business Unit, please see www.rfmd.com/aerospacedefense.
SELEX GALILEO is the brand adopted by Galileo Avionica SpA and SELEX Sensors and Airborne Systems Ltd, Finmeccanica companies to present a common identity to the market. With the name SELEX GALILEO, the two companies represent a leading defence electronics supplier, providing world-class capabilities in surveillance, protection, tracking, targeting, navigation & control, and imaging systems. Further details can be obtained at www.selexgalileo.com.
About RFMD: RF Micro Devices, Inc. (Nasdaq GS: RFMD) is a global leader in the design and manufacture of high-performance semiconductor components. RFMD's products enable worldwide mobility, provide enhanced connectivity and support advanced functionality in the cellular handset, wireless infrastructure, wireless local area network (WLAN), CATV/broadband and aerospace and defense markets. RFMD is recognized for its diverse portfolio of semiconductor technologies and RF systems expertise and is a preferred supplier to the world's leading mobile device, customer premises and communications equipment providers.
Headquartered in Greensboro, N.C., RFMD is an ISO 9001- and ISO 14001-certified manufacturer with worldwide engineering, design, sales and service facilities. RFMD is traded on the NASDAQ Global Select Market under the symbol RFMD. For more information, please visit RFMD's web site at www.rfmd.com.
This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions and are not historical facts and typically are identified by use of terms such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management's current judgment and expectations, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under the federal securities laws. 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 our planned exit from our wireless systems business, including cellular transceivers and GPS solutions, the risk that restructuring charges may be greater than originally anticipated and that the cost savings and other benefits from the restructuring may not be achieved, risks associated with the operation of our wafer fabrication facilities, molecular beam epitaxy facility, assembly facility and test and tape and reel facilities, our ability to complete acquisitions and integrate acquired companies, including the risk that we may not realize expected synergies from our business combinations, our ability to attract and retain skilled personnel and develop leaders, variability in production yields, our ability to reduce costs and improve gross margins by implementing innovative technologies, our ability to bring new products to market, our ability to adjust production capacity in a timely fashion in response to changes in demand for our 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 and other reports 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(R) and RFMD(R) are trademarks of RFMD, LLC. All other trade names, trademarks and registered trademarks are the property of their respective owners.
SOURCE RF Micro Devices
CONTACT: Doug DeLieto, VP, Investor Relations, +1-336-678-7968, or Jerry Neal, Executive Vice President, +1-336-678-7001, both of RFMD(R); or Donna McGrory, Tel, +44-131-343-5115, Mob, +44-7793-423082, firstname.lastname@example.org; or Solange Distefano Pozzuoli, Tel, +39-06-41883852, Mob, +39-335-7499374, email@example.com, both of SELEX GALILEO