RF Micro Shares Down on Warning

RF Micro Devices (RFMD) shares are sharply lower after the company Friday morning warned that results for its fiscal third quarter ended December 29 would be below expectations. The company sees revenue of $268 million and non-GAAP EPS of 6-7 cents a share; the Street has been looking for $282 million and 8 cents.

The company, which makes chips used by the wireless handset and infrastructure sectors, said it experienced “reduced demand late in the December quarter from customers in Asia and from its high concentration of top-tier customers that utilize inventory hubs.” RF Micro also said that it “experienced demand softness in the infrastructure and broadband/consumer markets.”

The RF news is adding to the pressure on the wireless handset and infrastructure market.

RF Micro Friday is down $1.27, or 25.3%, at $3.75. Rival Skyworks Solutions (SWKS) is down 56 cents, or 7%, at $7.37. Among the handset makers, Motorola (MOT) is off 34 cents, or 2.3%, to $14.59; Nokia (NOK) is down $1.03, or 3%, at $33.81; Palm (PALM) is down 10 cents, at $5.50, and Research In Motion (RIMM) is down $7.33, or 7.3%, at $93.33.