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Pardon me for a moment here as for a day it feels like we've returned to simpler times ... like say 2006, when stocks moved based on fundamentals rather than being able to predict what 95 PhDs have programmed into HAL9000, and anticipating the correct variable function on algorithm 42-1.C on computer 82-BCX in port XL22.1.

I literally wrote Wednesday night I expected Skyworks Solutions (NASDAQ:SWKS) competitors to follow in its path ... ask and you shall receive; RF Micro Devices (NASDAQ:RFMD) made some bullish comments at a conference which is similarly rallying the stock. Two RF stocks down (saying good things about the quarter), 1 to go. Gosh, stocks rallying on fundamental news... brings a tear to my eye. Hundreds of hours of research for the year paid off on what is it... day 250 of 2009? Feels like old times again for a few hours anyhow; a nice stroll down memory lane.

Now back to your originally scheduled "HAL9000 dominated, technicals are all that matter, good bad or indifferent news; we'll take the whole sector up as long as its contained in the PhD preferred ETF" casino.

  • Bob Bruggeworth, president and CEO of RFMD, said during the webcast presentation that demand for RFMD's products is tracking ahead of plan, driven by two major growth drivers.
  • First, end demand in the cellular handset market is strong, and current customer forecasts and backlog support expectations for continued handset market strength into the December quarter.
  • Second, RFMD is a primary beneficiary of the increasing demand for 3G smartphones, which require 3-5 times the RF dollar content of 2G handsets.
  • RFMD believes it is gaining share in the cellular market and anticipates sequential quarterly revenue growth at each of its major cellular handset customers. Additionally, Mr. Bruggeworth said visibility for RFMD's December 2009 quarter continues to improve in both the Cellular Products Group (NYSE:CPG) and Multi-Market Products Group [MPG], reflecting increased customer forecasts and backlog.
  • Accordingly, Mr. Bruggeworth reiterated RFMD's non-GAAP operating income target of 15% of total revenue and said the Company is making progress converging on its goal of 15% non-GAAP operating income in the near-term.
  • Finally, Mr. Bruggeworth said RFMD currently expects to exceed the high end of its previously stated forecast of free cash flow (net cash provided by operating activities minus property and equipment expenditures) of approximately $80 million-$120 million in the current fiscal year.


Long RF Micro Devices in fund and personal account
Source: RF Micro Devices Actually Rallies Off of Fundamentals