Source: Google Earth.
Radio signal processor specialist RF Micro Devices (NASDAQ: RFMD) just reported results for the first quarter of fiscal year 2015. RFMD shares jumped as much as 7.8% in after-hours trading, as the results exceeded analyst expectations by a wide margin.
Sales increased by 8% year over year, landing at $316 million. Street projections pointed to just $305 million.
On the bottom line, adjusted earnings jumped 167%, to $0.24 per diluted share. Here, analysts would have settled for $0.17 per share.
These results were driven by surging sales into 3G and 4G smartphone designs. These technologies now account for more than 90% of RFMD's cellular products sales, or at least $234 million in the first quarter.
Looking ahead, RFMD expects the proposed merger with TriQuint Semiconductor (TQNT.DL) to close before the end of calendar year 2014. The Hart-Scott-Rodino antitrust review has run its course, leaving RFMD and TriQuint waiting for shareholder approval votes and regulatory reviews. If approved, the all-stock transaction will create a single business with annual revenues of more than $2 billion, unlocking $150 million of annual cost savings in the process.
On a shorter timeline, RFMD expects to deliver second-quarter sales near $345 million, and adjusted earnings of roughly $0.27 per share. These figures are also much higher than current analyst views of $329 million and $0.21 per share, respectively.
In prepared remarks, CEO Bob Bruggeworth outlined some growth drivers for the current quarter. "RFMD anticipates broad-based revenue growth supported by new smartphone ramps, content increases in LTE, deepening penetration of 802.11 ac, and continued broad market strength," Bruggeworth said. "RFMD is enjoying positive market dynamics creating sustainable, long-term opportunities for growth and diversification."
