The recovery took a little while, but growth is finally returning to RF Micro Devices
Over the past few quarters, RF Micro has been fermenting in a bath of declining sales, thanks to the woes of one its top customers, Motorola
Management is citing good progress in design wins and sales of its next-generation products, which go into devices for 3G wireless broadband networks. In fact, the company has already booked 50% sequential growth in both wireless LAN (local area network) and W-CDMA (wideband code division multiple access) revenue in the third quarter.
This proves that RF Micro can move beyond its traditional cellular revenue streams, stepping squarely into the markets of competitors such as Texas Instruments
With investors feeling the last few quarters' hangover behind them, the market hoisted its glasses this morning, toasting RF Micro shares with a nearly 10% boost. Management's projections of sequential revenue growth between 9% and 16% helped spike that enthusiasm. Investors apparently believe that top-line growth is back in style.
Party on with further Foolishness:
- Why These Stocks Didn't Burn Me
- RF Micro's Secret Party Crasher
- Foolish Forecast: RF Micro Calls For Patience
Fool contributor Dave Mock grew up smelling buckets of wine fermenting in his kitchen. He owns shares of Motorola. Dave is the author of The Qualcomm Equation. The Fool's disclosure policy is the ultimate designated driver.