RF Micro's guidance disappoints, shares -6.7% AH

|By:, SA News Editor

Though RF Micro's (RFMD) FQ2 results beat estimates, the chipmaker expects FQ3 revenue to be flat to up 5% Q/Q; that's largely worse than a consensus for 5% growth. Nonetheless, EPS is seen coming in at $0.13-$0.14 vs. a $0.13 consensus.

While RF Micro's mobile RF chip unit (CPG) is expected to see Q/Q rev. growth, its multi-market unit (MPG, includes Wi-Fi, TV, and infrastructure chips) is expected to see a Q/Q drop.

FQ2 gross margin was 36.2%, +110 bps Q/Q and +100 bps Y/Y. CPG sales +59% Y/Y, aided by content share gains within the iPhone and high-volume Samsung devices (such as the Galaxy S4). MPG sales +12% Y/Y, thanks in part to a 49% increase in Wi-Fi chip sales.

CC at 5PM ET. Shares made new 52-week highs earlier today.

FQ2 results, PR