RF Micro only -1.2% AH; margin gains offset revenue miss, soft guidance

On top of badly missing FQ3 revenue estimates, RF Micro (RFMD) is guiding for FQ4 revenue of $250M-$260M, soundly below a $287.3M consensus. It's worth noting the chipmaker has considerable exposure to both Apple (provided light guidance yesterday) and Samsung.

But in spite of the revenue miss, RF Micro was able to deliver in-line EPS on account of having a gross margin of 39.7%, +420 bps Y/Y and above guidance of 38.4%. Gross margin is expected to rise to 40% in FQ4.

RF Micro, which launched margin expansion initiatives three quarters ago, says it wants to have an industry-leading gross margin long-term.

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