GREENSBORO, N.C.-Wireless chipset vendor RF Micro Devices Inc. lowered its profit forecasts due to efforts to reduce the company’s inventories. The company also blamed greater-than-expected development expenses for its Polaris modules, its next-generation cellular transceivers and its power amplifier modules.
“The company’s quarterly revenue will be within the range of our previous guidance, driven by growth in EDGE cellular transceivers and infrastructure products, relative flatness in wireless connectivity and a seasonal decline in cellular PAs,” said Dean Priddy, RF Micro Devices’ chief financial officer. “Additionally, we believe the company’s efforts to reduce inventory levels and significant price reductions from several key suppliers will benefit margins in future periods.”
“The handset industry continues to adopt next-generation air interface standards, such as EDGE and WCDMA, and RFMD’s cellular power amplifiers command greater than 50-percent market share in both standards,” said Bob Bruggeworth, the company’s chief executive officer. “RFMD is also the leader in merchant market EDGE transceivers, having shipped greater than 4 million units to date. The company continues to expect it will increase its content in handsets this year as we launch transmit modules and our Polaris Total Radio module solutions.”
RF Micro Devices said it expects its net loss per share for the quarter to be 33 cents to 34 cents.
