Financial Releases
RFMD(R) Ships 100 Millionth WCDMA Cellular Front End
GREENSBORO, N.C.--(BUSINESS WIRE)--July 24, 2007--RF Micro Devices, (NASDAQ: RFMD), a global leader in the design and manufacture of high-performance radio systems and solutions for applications that drive mobile communications, today announced that it has shipped its 100 millionth WCDMA cellular front end. RFMD is the wireless industry's first company to ship 100 million WCDMA front ends for 3G handsets. RFMD attributes the industry milestone to continued strong sales of 3G multimode handsets and to the Company's leading market share in WCDMA cellular front ends.
Eric Creviston, corporate vice president of RFMD's cellular products group, said, "The demand for cellular front ends in 3G multimode handsets is growing significantly faster than the handset market, as 3G handsets proliferate and as new 3G bands are added. With our broad product portfolio of innovative 3G front end solutions and our industry-leading manufacturing scale, RFMD is best positioned to capture this increasing demand, while also solving the complex requirements for platform flexibility, energy conservation, and multi-band support."
In the June 2007 quarter, RFMD's WCDMA front end revenue significantly outpaced the rate of growth of the handset market, and the Company is booked for sequential growth in WCDMA front end revenue in the September quarter of greater than 50%.
RFMD forecasts the 3G multimode market will exceed 580 million handsets by 2011, reflecting a five-year compound annual growth rate of approximately 51%. Additionally, RFMD estimates the average 3G multimode handset will support approximately 2.7 UMTS frequency bands by 2011.
3G multimode devices drive dollar content for RFMD. A 3G multimode device includes a GPRS/EDGE path and at least one UMTS path, both of which require PA-based front end solutions and associated complementary RF components. As 3G multimode devices proliferate and as the number of bands increases to support multiple regions, the market for cellular front ends and complementary components in 3G multimode handsets is expected to significantly outpace the rate of growth of cellular handsets. In addition, an increasing percentage of 3G multimode handsets also include WiFi capability, and RFMD is the leading supplier of wireless LAN front ends for WiFi enabled handsets.
About RFMD: RF Micro Devices, Inc. (NASDAQ: RFMD) is a global leader in the design and manufacture of high-performance radio systems and solutions for applications that drive mobile communications. RFMD's power amplifiers, transmit modules, cellular transceivers and system-on-chip (SoC) solutions enable worldwide mobility, provide enhanced connectivity and support advanced functionality in current- and next-generation mobile handsets, cellular base stations, wireless local area networks (WLANs) and global positioning systems (GPS). Recognized for its diverse portfolio of state-of-the-art semiconductor technologies and vast RF systems expertise, RFMD is a preferred supplier enabling the world's leading mobile device manufacturers to deliver advanced wireless capabilities that satisfy current and future market demands.
Headquartered in Greensboro, N.C., RFMD is an ISO 9001- and ISO 14001-certified manufacturer with worldwide engineering, design, sales and service facilities. RFMD is traded on the NASDAQ Global Select Market under the symbol RFMD. For more information, please visit RFMD's web site at www.rfmd.com.
This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions and are not historical facts and typically are identified by use of terms such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management's current judgment and expectations, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under the federal securities laws. RF Micro Devices' business is subject to numerous risks and uncertainties, including variability in quarterly operating results, the rate of growth and development of wireless markets, risks associated with the operation of our wafer fabrication facilities, molecular beam epitaxy facility, assembly facility and test and tape and reel facilities, our ability to attract and retain skilled personnel and develop leaders, variability in production yields, our ability to reduce costs and improve gross margins by implementing innovative technologies, our ability to bring new products to market, our ability to adjust production capacity in a timely fashion in response to changes in demand for our products, dependence on a limited number of customers, and dependence on third parties. These and other risks and uncertainties, which are described in more detail in RF Micro Devices' most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.
RF MICRO DEVICES® and RFMD® are trademarks of RFMD, LLC. All other trade names, trademarks and registered trademarks are the property of their respective owners.
CONTACT: RF Micro Devices, Inc.
Dean Priddy, 336-678-7975
CFO
or
Doug DeLieto, 336-678-7968
VP, Investor Relations
or
Jerry Neal, 336-678-7001
Executive Vice President
SOURCE: RF Micro Devices, Inc.