RF Micro Devices® Press Release - October 26, 2010 |
RF Micro Devices Achieves Record Quarterly Revenue and Record Non-GAAP Diluted EPS- RFMD Generates $56.1 Million In Free Cash Flow And Achieves Positive Net Cash Position
GAAP RESULTS
------------
(in millions,
except
percentages and Q2 Q1 Q2
per Fiscal Fiscal Change Fiscal Change
vs. Q1 vs. Q2
share data) 2011 2011 2011 2010 2010
----------- ---- ---- ------- ---- -------
Revenue $285.8 $273.8 4.4% $254.8 12.2%
Gross Margin 38.0% 37.4% 0.6 ppt 35.9% 2.1 ppt
Operating Income $42.4 $40.6 $1.8 $24.1 $18.3
Net Income $35.1 $28.1 $7.0 $14.6 $20.5
Diluted EPS $0.13 $0.10 $0.03 $0.05 $0.08
NON-GAAP RESULTS (excluding share-based compensation, amortization
of intangibles, integration charges, start-up costs, loss on
retirement of convertible subordinated notes, restructuring charges,
loss on PP&E, non-cash interest expense on convertible subordinated
notes and tax adjustments)
(in millions,
except
percentages and Q2 Q1 Q2
per Fiscal Fiscal Change Fiscal Change
vs. Q1 vs. Q2
share data) 2011 2011 2011 2010 2010
----------- ---- ---- ------- ---- -------
Gross Margin 39.8% 39.2% 0.6 ppt 38.1% 1.7 ppt
Operating Income $57.1 $51.7 $5.4 $41.7 $15.4
Net Income $52.3 $44.3 $8.0 $36.9 $15.4
Diluted EPS $0.19 $0.16 $0.03 $0.13 $0.06
RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended
------------------
October 2, October 3,
2010 2009
--- ----
Total revenue $285,794 $254,757
Costs and expenses:
Cost of goods sold 177,139 163,208
Research and development 35,604 34,846
Marketing and selling 15,094 14,741
General and administrative 14,836 16,721
Other operating expense 729 1,114
--- -----
Total costs and expenses 243,402 230,630
------- -------
Operating income 42,392 24,127
Other expense (4,816) (6,047)
------ ------
Income before income taxes $37,576 $18,080
Income tax expense (2,493) (3,501)
------ ------
Net income $35,083 $14,579
======= =======
Net income per share, diluted $0.13 $0.05
===== =====
Weighted average outstanding diluted shares 277,458 298,668
======= =======
RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Six Months Ended
----------------
October 2, October 3,
2010 2009
---- ----
Total revenue $559,636 $467,297
Costs and expenses:
Cost of goods sold 348,575 301,746
Research and development 71,705 70,479
Marketing and selling 29,462 28,310
General and administrative 25,905 27,933
Other operating expense 1,038 2,650
----- -----
Total costs and expenses 476,685 431,118
------- -------
Operating income 82,951 36,179
Other expense (9,357) (10,245)
------ -------
Income before income taxes $73,594 $25,934
Income tax expense (10,397) (6,571)
------- ------
Net income $63,197 $19,363
======= =======
Net income per share, diluted $0.23 $0.07
===== =====
Weighted average outstanding diluted shares 277,696 297,573
======= =======
RF MICRO DEVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except percentages and per share data)
(Unaudited)
Three Months Ended
------------------
October
2, July 3, October 3,
2010 2010 2009
---- ---- ----
GAAP operating income $42,392 $40,559 $24,127
Share-based
compensation expense 9,135 5,311 11,125
Amortization of
intangible assets 4,615 4,615 4,804
Restructuring charges
related to fiscal
2009 strategic 110 205 1,072
restructuring and
adverse macroeconomic
conditions
Other expenses
(restructuring, loss
on PP&E, integration, 881 999 609
start-up costs and
other non-cash
expenses)
Non-GAAP operating
income 57,133 51,689 41,737
====== ====== ======
GAAP net income 35,083 28,115 14,579
Share-based
compensation expense 9,135 5,311 11,125
Amortization of
intangible assets 4,615 4,615 4,804
Restructuring charges
related to fiscal
2009 strategic 110 205 1,072
restructuring and
adverse macroeconomic
conditions
Other expenses
(restructuring, loss
on PP&E, integration, 881 999 609
start-up costs, and
other non-cash
expenses)
Loss on retirement of
convertible
subordinated notes 1,646 - -
Non-cash interest
expense on
convertible
subordinated notes 3,262 4,414 4,602
Tax adjustments (2,415) 684 151
------ --- ---
Non-GAAP net income 52,317 44,343 36,942
Plus: Income impact
of assumed
conversions for
interest on - 15 768
1.50% convertible
notes
Non-GAAP net income
plus assumed
conversion of notes- $52,317 $44,358 $37,710
Numerator for diluted
income per share ======= ======= =======
GAAP and Non-GAAP
weighted average
outstanding diluted 277,458 277,933 298,668
shares ======= ======= =======
Non-GAAP net income
per share, diluted $0.19 $0.16 $0.13
===== ===== =====
Three Months Ended
------------------
October 2, October 3,
2010 July 3, 2010 2009
----------- ------------ -----------
GAAP gross
margin $108,655 38.0% $102,407 37.4% $91,549 35.9%
Adjustment
for
intangible
amortization 3,514 1.2% 3,514 1.3% 3,705 1.5%
Adjustment
for share-
based
compensation 1,248 0.5% 960 0.3% 1,389 0.5%
Other
expenses
(restructuring,
integration 262 0.1% 508 0.2% 385 0.2%
and other
non-cash
expenses)
Non-GAAP
gross
margin $113,679 39.8% $107,389 39.2% $97,028 38.1%
======== ==== ======== ==== ======= ====
RF MICRO DEVICES, INC. AND SUBSIDIARIES
ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(In thousands, except percentages)
(Unaudited)
Three Months
Ended
October 2,
Non-GAAP Operating Income 2010
------------------------- -----------
(as a percentage of sales)
GAAP operating income 14.8%
Share-based compensation expense 3.2%
Amortization of intangible assets 1.6%
Restructuring charges related to fiscal 2009 strategic
restructuring and adverse 0.1%
macroeconomic conditions
Other expenses (restructuring, loss on PP&E,
integration, start-up costs and other 0.3%
non-cash expenses)
Non-GAAP operating income 20.0%
====
Three Months Ended
------------------
October 2, July 3, October 3,
2010 2010 2009
----------- -------- -----------
GAAP research
and development
expense $35,604 $36,101 $34,846
Less:
Share-based
compensation
expense 1,392 1,343 1,399
Amortization of
intangible
assets 14 14 12
Other expenses
(restructuring,
integration - 384 118
and other non-
cash expenses) --- ---
Non-GAAP
research and
development $34,198 $34,360 $33,317
expense ======= ======= =======
Three Months Ended
------------------
October 2, July 3, October 3,
2010 2010 2009
----------- ------- ----------
GAAP marketing
and selling
expense $15,094 $14,368 $14,741
Less:
Share-based
compensation
expense 1,493 1,198 1,915
Amortization of
intangible
assets 1,087 1,087 1,087
Other expenses
(restructuring,
integration - 3 8
and other non-
cash expenses)
Non-GAAP
marketing and
selling expense $12,514 $12,080 $11,731
======= ======= =======
Three Months Ended
------------------
October 2, July 3, October 3,
2010 2010 2009
----------- -------- -----------
GAAP general and
administrative
expense $14,836 $11,070 $16,721
Less:
Share-based
compensation
expense 5,002 1,810 6,422
Other expenses
(restructuring,
integration) - - 17
---
Non-GAAP
general and
administrative $9,834 $9,260 $10,282
expense ====== ====== =======
RF MICRO DEVICES, INC. AND SUBSIDIARIES
ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(Unaudited)
Three Months
Free Cash Flow (1) Ended
------------------
October 2,
2010
-----------
(In millions)
Net cash provided by operating activities $61.3
Purchases of property and equipment (5.2)
Free Cash Flow $56.1
=====
(1) Free Cash Flow is calculated as net cash provided by operating
activities minus property and equipment expenditures.
Three Months
EBITDA (2) Ended
---------- October 2, 2010
---------------
(In millions)
Net Income $35.1
Interest 3.9
Income Tax Expense 2.5
Depreciation 15.9
Amortization 4.6
---
EBITDA $62.0
=====
(2) EBITDA is calculated by adjusting net income for interest
expense and interest income, income tax expense, depreciation and
intangible amortization.
RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
October 2, April 3,
2010 2010
---- ----
ASSETS
Current assets:
Cash and cash equivalents $133,801 $104,778
Restricted cash and trading security
investments 439 17,698
Short-term investments 105,931 134,882
Accounts receivable, net 134,739 108,219
Inventories 130,887 122,509
Other current assets 62,776 60,738
------ ------
Total current assets 568,573 548,824
Property and equipment, net 226,568 247,085
Intangible assets, net 92,912 102,169
Goodwill 95,628 95,628
Long-term investments 2,150 2,175
Other non-current assets 19,769 18,127
Total assets $1,005,600 $1,014,008
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities 143,316 124,253
Current portion of long-term debt 6,459 15,053
Other short-term liabilities, net 7,804 13,427
----- ------
Total current liabilities 157,579 152,733
Long-term debt, net 204,217 289,837
Other long-term liabilities 40,111 41,354
------ ------
Total liabilities 401,907 483,924
Shareholders' equity 603,693 530,084
------- -------
Total liabilities and shareholders' equity $1,005,600 $1,014,008
========== ==========
CONTACT: RF Micro Devices, Inc. Doug DeLieto VP, Investor Relations 336-678-7088 Posted 10/28/2010 |