RF Micro Devices(R) Updates Investors at 11th Annual Needham Growth Stock ConferenceRFMD Reports
$40 Million In Free Cash Flow In
December 2008 Quarter And
Currently Expects
March 2009 Quarter To Be Free Cash Flow Positive
GREENSBORO, N.C., Jan. 8 /PRNewswire-FirstCall/ -- RF Micro Devices, Inc.
(Nasdaq GS: RFMD), a global leader in the design and manufacture of
high-performance semiconductor components, today provided updated financial
information, including forecasts for generation of free cash flow (net cash
provided by operating activities less capital expenditures for purchases of
property and equipment) for its December 2008 and March 2009 quarters, as well
as for its 2010 fiscal year, beginning March 29, 2009. The Company made the
comments during a webcast investor presentation today at the 11th Annual
Needham Growth Stock Conference in New York.
During the conference, Bob Bruggeworth, president and CEO of RFMD, said
"RFMD today is flexible and agile, as evidenced by our ability to quickly
decrease capital expenditures, rationalize our supply chain and reduce
expenses to match our current demand environment." RFMD's capital
expenditures were approximately $5 million in the December 2008 quarter, and
the Company expects capital expenditures to be approximately $20 million in
calendar 2009. By comparison, RFMD's capital expenditures had been $113
million through the 12 months ended September 2008.
Also during the conference, Dean Priddy, CFO and vice president of
administration of RFMD, said RFMD generated approximately $40 million in free
cash flow in the December 2008 quarter. Additionally, RFMD reduced net debt
by approximately $50 million during the December 2008 quarter, primarily
through the generation of cash and open-market repurchases of convertible
notes. RFMD currently expects to be free cash flow positive in its March 2009
quarter, and the Company continues to anticipate free cash flow will improve
in fiscal 2010 to approximately $80 million - $120 million.
RFMD will provide more detailed information about its December 2008
quarterly financial results in its quarterly earnings press release and its
corresponding quarterly earnings conference call, which are currently
scheduled for January 27, 2009 at 4:00 pm EST and 5:00 pm EST, respectively.
An archived audio webcast of the presentation is available via the RFMD®
Investor Relations web page at the following URL: www.rfmd.com (under
"Investors").
About RFMD: RF Micro Devices, Inc. (Nasdaq GS: RFMD) is a global leader in
the design and manufacture of high-performance semiconductor components.
RFMD's products enable worldwide mobility, provide enhanced connectivity and
support advanced functionality in the cellular handset, wireless
infrastructure, wireless local area network (WLAN), CATV/broadband and
aerospace and defense markets. RFMD is recognized for its diverse portfolio
of semiconductor technologies and RF systems expertise and is a preferred
supplier to the world's leading mobile device, customer premises and
communications equipment providers.
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 impact of global macroeconomic and credit conditions on our
business, the rate of growth and development of wireless markets, risks
associated with our planned exit from our wireless systems business, including
cellular transceivers and GPS solutions, the risk that restructuring charges
may be greater than originally anticipated and that the cost savings and other
benefits from the restructuring may not be achieved, 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 complete acquisitions and integrate acquired companies, including the risk
that we may not realize expected synergies from our business combinations, 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 and other reports 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.
SOURCE RF Micro Devices, Inc.
01/08/2009
CONTACT: Doug DeLieto, VP, Investor Relations, RFMD®, +1-336-678-7968
Web Site: http://www.rfmd.com
(RFMD RFMD)
