It's almost time to tune in to radio frequency semiconductor and systems supplier RF Micro (NASDAQ:RFMD), which will report its fiscal first-quarter 2008 earnings. We'll get the jump on this evening's report and see what to expect.

What analysts say:

  • Buy, sell, or waffle? Of the 18 analysts giving an opinion on RF Micro, nine of them give a thumbs-up to buy, seven give a hold rating, and two say sell. RF Micro also holds a middle-of-the-road three-star stock rating (out of five possible stars) on more than 168 opinions in the Motley Fool CAPS community.
  • Revenues. On average, analysts predict quarterly sales to fall 9% over the same quarter last year to $217 million.
  • Earnings. Profits are expected to drop 66% to $0.03 per share.

What management says:
The writing is pretty much on the wall for RF Micro's first quarter. Management guided for a modest decline in revenue because of cutbacks in orders from one large customer. But the company expects more design wins with this customer -- thought to be Motorola (NYSE:MOT) -- to contribute to revenue growth in the next quarter. CEO Bob Bruggeworth also stated that new products will help expand its "customer base to include an additional top-tier handset manufacturer." Beyond this quarter, Bruggeworth expects "modest growth through calendar year 2007 and an acceleration of growth beginning in calendar year 2008," as the company diversifies its product line and customer base.

What management does:
Absent the top-line fluctuations RF Micro is experiencing as handset manufacturers such as Nokia (NYSE:NOK), Ericsson (NASDAQ:ERIC), and Samsung deal with fickle consumer cycles, the company continues to run a tight operation. But things aren't as stellar as the numbers show -- much of the improvement is tied to reduced options expenses in the current year compared to 2006:

Margins %

12/05

3/05

6/06

9/06

12/06

03/07

Gross

34.4

34.9

35.1

34.9

34.9

34.9

Operating

0.8

5.3

7.4

7.5

8.3

9.5

Net

(6.5)

2.1

3.9

0.8

5.2

8.1
All data courtesy of Capital IQ, a division of Standard & Poor's. Data reflects trailing-12-month performance for the quarters ended in the named months.

One Fool says:
Shares of RF Micro have been in purgatory since the company lowered guidance before last quarter's earnings, and even a subsequent analyst upgrade hasn't helped lift shares much. But investors who see continued growth in the wireless market may want to keep watch on RF Micro. Compared with competitor Texas Instruments (NYSE:TXN), the company is a little pricey, but with a forward price-to-earnings ratio of 32.8 and estimated growth of 20%, the long-term growth outlook could improve this quarter. Management also hinted at some strategic options it's exploring to diversify growth, which may bode well for softening the impact from major clients' missteps.

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Fool contributor Dave Mock gave up "hunt and peck" typing years ago, and he'll never go back, thanks to spell checkers. He owns shares of Motorola. Dave is the author of The Qualcomm Equation. The Fool disclosure policy's dad can beat up your dad.