RF Micro, From Bad To Worse (RFMD)
RF Micro Devices Inc. (NASDAQ: RFMD) was down a lot last night but shares are getting spanked even harder now. In fact, you better brace for a 52-week low for the radio frequency components and compound semiconductor technologies maker. The…
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RF Micro Devices Inc. (NASDAQ: RFMD) was down a lot last night but shares are getting spanked even harder now. In fact, you better brace for a 52-week low for the radio frequency components and compound semiconductor technologies maker.
The company’s revenue for the December quarter was put at about $225 million and sales of 2G components to China-based customers for entry-level handsets were under expectations and its Multi-Market Products Group showed broad weakness in end markets. Also noted was that customer demand softened during the December quarter and gross margin fell about 9 points sequentially on lower sales, lower factory utilization, and inventory reserves.
The only good news is that sales of components for 3G/4G smartphones increased sequentially approximately 16% during the quarter.
Shares were down about 10% initially but now shares are down about 20% at $4.51 pre0market and the 52-week trading range was $4.95 to $8.48, We have already seen 2.7 million shares traded with 30 minutes to go.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
