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RF Micro Devices® Announces Flexible Gallium Arsenide Sourcing Strategy
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RF Micro
Devices® Announces Flexible Gallium Arsenide Sourcing Strategy
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Company Expects to Optimize Internal Manufacturing Capacity, Lower Costs, and
Generate More Predictable Operating Results
GREENSBORO, N.C., March 19, 2013
(GLOBE NEWSWIRE) -- RF Micro Devices, Inc. (Nasdaq:RFMD), a global leader in the design and
manufacture of high-performance radio frequency solutions, announced today a new Gallium Arsenide
(GaAs) sourcing strategy intended to increase manufacturing flexibility, expand gross margin,
and support aggressive growth.
RFMD will phase out manufacturing in its Newton Aycliffe,
UK-based GaAs pHEMT facility and transition most GaAs manufacturing to its GaAs HBT manufacturing
facility in Greensboro, NC. RFMD will also partner with leading GaAs HBT foundries for additional
capacity. The Newton Aycliffe GaAs pHEMT facility had been RFMD's primary source for cellular
switches, which RFMD has transitioned to higher performance, lower cost silicon on insulator
(SOI). The transition will occur over the next nine to 12 months to support existing millimeter
wave customer contracts. Once implemented, RFMD expects annual cost savings of approximately
$20 million, or $5 million per quarter.
Bob Bruggeworth, president and CEO of RFMD, said,
"RFMD is enjoying increasing demand for our GaAs- and silicon-based RF solutions by delivering
the industry's highest performance and most innovative products and technologies, including
power amplifiers, switches, antenna tuners, and envelope tracking solutions. The combination
of our industry-leading internal GaAs manufacturing capabilities and our external GaAs and silicon
foundry partnerships support our longstanding commitment to Optimum Technology Matching,® satisfy
the full breadth of our customers' performance, size, and cost requirements, and give RFMD unlimited
growth potential. We expect these structural changes to have a lasting positive effect on the
Company's cost structure, resulting in meaningful gross margin expansion."
RFMD is actively
seeking a buyer for the Newton Aycliffe facility. If a buyer cannot be found, the facility will
be closed once contractual obligations are met.
About RFMD
RF Micro Devices, Inc. (Nasdaq:RFMD) is a global leader in the design and manufacture of
high-performance radio frequency solutions. RFMD's products enable worldwide mobility, provide
enhanced connectivity and support advanced functionality in the mobile device, wireless infrastructure,
wireless local area network (WLAN or WiFi), cable television (CATV)/broadband, Smart Energy/advanced
metering infrastructure (AMI), 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.
[borders/inc-300x250.htm]Headquartered
in Greensboro, N.C., RFMD is an ISO 9001-, ISO 14001-, and ISO/TS 16949-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. The RF Micro Devices, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6436
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 operating results, risks associated with the impact of global macroeconomic
and credit conditions on our business and the business of our suppliers and customers, our reliance
on a few large customers for a substantial portion of our revenue, the rate of growth and development
of wireless markets, our ability to bring new products to market, 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,
molecular beam epitaxy, assembly 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 adjust production capacity in a timely fashion in response to changes in demand
for our products, dependence on gallium arsenide (GaAs) for the majority of our products, dependence
on third parties, and substantial reliance on international sales and operations. 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® and RFMD® are trademarks of RFMD, LLC. All other trade names, trademarks and registered
trademarks are the property of their respective owners.
CONTACT: At RFMD(R)
Doug DeLieto VP, Investor Relations 336-678-7088
Dean Priddy CFO
336-678-7975
Posted 3/19/2013
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