RF Micro (RFMD) posted a record revenue quarter yesterday, mildly pleasing analysts. Highlights include:
Revenue:$208.0 million, 23.1% over same period last year $168.9 million. The company provided revenue guidance for next quarter of $200M - $215M. Lehman Brothers analysts Jeff Kvall and Tim Luke raised their 2007 sales projection from $875 mililon to $900 million based on the strong projection for next quarter. Gross Margins: 36.1%, up from 36.0% last quarter. J.P.Morgan research analyst Christopher Danely maintained his "neutral" rating on RFMD, stating in a note to clients that "while we applaud the share gains, we would like to see consistent improvements in gross margins before becoming more positive on RF Micro Devices." Earnings: $14.7 million, or $0.07 per diluted share, compared with $0.6 million or $0.00 per share same quarter last year. Pro forma EPS for next quarter is $0.06 - $0.07. Kvaal and Luke made only a small adjustment to EPS estimates from $0.29 to $0.33 (consensus estimates: $0.27), as much of the revenue growth will be from the company's low-margin Polaris product. They conclude that "this puts RFMD on a trajectory for $0.40 in fiscal 2008 - a figure RFMD may even reach in fiscal 2007 should Polaris shipments continue to rise rapidly".