Financial Releases
RFMD(R) Completes Acquisition of Filtronic Compound Semiconductors Ltd
Under the terms of the transaction, RFMD paid an acquisition price of approximately 12.5 million pounds in cash for Filtronic Compound Semiconductors. The acquisition price included the purchase of Filtronic Compound Semiconductors' six-inch GaAs wafer fabrication facility ("fab") at Newton Aycliffe, United Kingdom, and the purchase of Filtronic Compound Semiconductors' millimeter wave RF semiconductor business.
RFMD expects the addition of Filtronic Compound Semiconductors' high-volume GaAs fab will significantly reduce RFMD's GaAs pHEMT manufacturing costs and provide incremental GaAs manufacturing capacity sufficient to support near-term anticipated growth. Additionally, RFMD expects the addition of Filtronic Compound Semiconductors' microwave and millimeter wave component business will strengthen the product portfolio of RFMD's Multi-Market Products Group (MPG) and be accretive to RFMD's target margin profile for its multi-market business.
Bob Bruggeworth, president and chief executive officer of RFMD, said, "With the acquisition of Filtronic Compound Semiconductors, RFMD significantly benefits in three ways. First, the acquisition significantly lowers our overall GaAs cost structure, which we believe will result in improved margins as calendar year 2008 progresses. Second, RFMD's GaAs capacity is increased by approximately 30 percent, giving us the flexibility to capture near-term demand upside and defer future fab-related capital outlays. Finally, we acquire a strong microwave and millimeter wave business that adds profitable, high-margin revenue to MPG. We are thrilled to add Filtronic Compound Semiconductors' employees, customers and technologies to RFMD, and we look forward to the growth and cost reduction opportunities this acquisition makes possible."
About RFMD: RF Micro Devices (Nasdaq GS: RFMD) is a global leader in the design and manufacture of high-performance radio frequency systems and solutions. RFMD's cellular front ends, cellular transceivers, RF components and system-on-chip (SoC) solutions enable worldwide mobility, provide enhanced connectivity and support advanced functionality in the cellular handset, cellular base station, wireless local area network (WLAN), CATV networking, aerospace, defense, and global positioning systems (GPS) markets. Recognized for its diverse portfolio of state-of-the-art semiconductor technologies and vast RF systems expertise, RFMD is a preferred supplier to the world's leading mobile device and RF equipment manufacturers.
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 website 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 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.
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CONTACT: RF Micro Devices
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