RF Micro Devices® Press Release - February 23, 2010
RFMD Anticipates $5 Million in R&D Contracts in Calendar 2010
GREENSBORO, N.C., Feb 23, 2010 (GlobeNewswire via COMTEX News Network) -- RF Micro Devices (Nasdaq:RFMD), a global leader in the design and manufacture of high-performance radio frequency components and compound semiconductor technologies, announced today that it has been awarded $3.2 million in R&D contracts by the United States Department of Defense related to GaN microelectronics, including materials, device fabrication and high power circuits.
The $3.2 million in R&D contracts extends RFMD's contract backlog for calendar 2010 to approximately $5 million. Since calendar 2004, RFMD has been awarded approximately $13 million in R&D contracts by the U.S. Government.
Jeff Shealy, VP and general manager of RFMD's Defense and Power business unit, said, "We are gratified to receive these R&D contract awards from the U.S. Department of Defense, and we look forward to furthering our research and development efforts related to GaN microelectronics, including materials, device fabrication and high power circuits. GaN technology is superior to other semiconductor process technologies in power per square millimeter, bandwidth and breakdown voltages, and the unique physical properties of RFMD's GaN technology deliver industry-leading reliability performance."
Bob Bruggeworth, president and CEO of RFMD, said, "Given the superior performance characteristics of RFMD's GaN technology, we expect it to be a disruptive technology across a broad range of defense applications, including radar, communications and electronic warfare. RFMD's state-of-the-art GaN technology is also applicable to a growing number of commercial applications, such as public mobile radio, 3G/4G base stations, CATV line amplifiers, as well as exciting new applications in high performance RF lighting.
"Importantly, RFMD's GaN technology is manufactured in the same high-volume manufacturing facility as our industry-leading GaAs products, providing RFMD a measurable competitive advantage and enabling further improvement in RFMD's return on invested capital (ROIC)."
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 risks associated with the impact of global macroeconomic and credit conditions on our business and the business of our suppliers and customers, variability in operating results, the rate of growth and development of wireless markets, risks associated with the reduced investment in our wireless systems business, our ability to execute on our plans to consolidate or relocate manufacturing operations, our reliance on inclusion in third party reference designs for a portion of our revenue, our ability to manage channel partner and customer relationships, 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, raw material costs and availability, our ability to reduce costs and improve margins in response to declining average selling prices, 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, dependence on gallium arsenide (GaAs) for the majority of our products, 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 and statements 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, Inc.
RF Micro Devices
Vice President, Investor Relations