2014

RF Micro Devices Achieves Record Quarterly Revenue and Record Non-GAAP Diluted EPS RFMD Generates $56.1 Million In Free Cash Flow And Achieves Positive Net Cash Position

GREENSBORO, N.C., Oct. 26 /PRNewswire-FirstCall/ --

Company Highlights: 

  • Revenue Increases 12% Year-Over-Year To A Record $285.8 Million
  • GAAP Operating Income Grows To $42.4 Million, Or 14.8% Of Revenue, And GAAP Diluted EPS Equals $0.13
  • Non-GAAP Operating Income Increases To A Record $57.1 Million, Or 20% Of Revenue, And Non-GAAP Diluted EPS Is A Record $0.19
  • RFMD Generates A Record $56.1 Million In Quarterly Free Cash Flow

RF Micro Devices, Inc. (Nasdaq GS: RFMD), a global leader in the design and manufacture of high-performance radio frequency components and compound semiconductor technologies, today reported financial results for its fiscal 2011 second quarter, ended October 2, 2010.

RFMD's quarterly revenue increased approximately 12% year-over-year and 4.4% sequentially to $285.8 million.  On a GAAP basis, gross margin equaled 38.0%, quarterly operating income totaled $42.4 million, and quarterly net income was $35.1 million, or $0.13 per diluted share.  On a non-GAAP basis, gross margin equaled 39.8%, quarterly operating income totaled a record $57.1 million, and quarterly net income was a record $52.3 million, or $0.19 per diluted share.  

During the quarter, RFMD generated a record $56.1 million in free cash flow (net cash provided by operating activities during the period, minus property and equipment expenditures made during the period) and achieved a positive net cash position.  RFMD defines "positive net cash" as cash and cash equivalents and short-term investments exceeding the principal amount of RFMD's convertible subordinated notes due 2012 and 2014.

RFMD Strategic Highlights:

  • RFMD achieved substantial year-over-year and continued sequential revenue growth in both the Cellular Products Group (CPG) and the Multi-Market Products Group (MPG)
  • RFMD increased sales to customers outside its largest customer by approximately 53% year-over-year, driven by market share gains at targeted handset customers and broad-based growth in MPG's end markets
  • RFMD introduced 74 new and derivative products during the quarter targeting diverse market segments
  • RFMD secured major design wins during the quarter, including components for smartphones, mobile tablet devices, Smart Energy applications, high-power GaN applications, and wireless infrastructure


GAAP RESULTS

(in millions, except


















percentages and per



Q2 Fiscal



Q1 Fiscal



Change




Q2 Fiscal



Change


share data)



2011



2011



vs. Q1 2011




2010



vs. Q2 2010


Revenue


$

285.8


$

273.8



4.4%



$

254.8



12.2%


Gross Margin



38.0%



37.4%



0.6

ppt



35.9%



2.1

ppt

Operating Income


$

42.4


$

40.6


$

1.8



$

24.1


$

18.3


Net Income


$

35.1


$

28.1


$

7.0



$

14.6


$

20.5


Diluted EPS


$

0.13


$

0.10


$

0.03



$

0.05


$

0.08























NON-GAAP RESULTS (excluding share-based compensation, amortization of intangibles, integration charges, start-up costs, loss on retirement of convertible subordinated notes, restructuring charges, loss on PP&E, non-cash interest expense on convertible subordinated notes and tax adjustments)

(in millions, except


















percentages and per



Q2 Fiscal



Q1 Fiscal



Change




Q2 Fiscal



Change


share data)



2011



2011



vs. Q1 2011




2010



vs. Q2 2010


Gross Margin



39.8%



39.2%



0.6

ppt



38.1%



1.7

ppt

Operating Income


$

57.1


$

51.7


$

5.4



$

41.7


$

15.4


Net Income


$

52.3


$

44.3


$

8.0



$

36.9


$

15.4


Diluted EPS


$

0.19


$

0.16


$

0.03



$

0.13


$

0.06























Business Outlook

RFMD currently believes the demand environment in its end markets supports the following expectations and projections:

  • RFMD expects December quarterly results will be approximately in line with September quarterly results
  • RFMD expects to continue ramping new customer programs to offset declining end-of-life legacy products
  • RFMD expects the sequential growth in its core markets to be broad based and supported by strength in Smart Energy, high-performance WiFi, wireless infrastructure, fixed and mobile broadband, smartphones and 3G connected devices
  • RFMD now expects to achieve record free cash flow in fiscal 2011 in the range of $180-$200 million

RFMD's actual quarterly and annual results may differ from these expectations and projections, and such differences may be material.

Comments From Management

Bob Bruggeworth, president and CEO of RFMD, commented, "RFMD's record quarterly financial performance is the direct result of prior structural changes in strategy and the organization's crisp execution on that strategy. We are leveraging product and technology leadership to drive our growth in core markets, and we are securing the major design wins necessary to power the next wave of our revenue growth.

"During the September quarter, RFMD continued to transition successfully to a more diversified revenue base, with notable strength in smartphones, Smart Energy, and high-performance WiFi. Importantly, RFMD is also experiencing strong design win momentum for our new breakthrough products and technologies, including our PowerSmart™ power platform, our silicon-based switches and our gallium nitride-based components. We continue to forecast PowerSmart will ramp in the March 2011 quarter, and we now expect our lead PowerSmart customer will broadly feature PowerSmart across their next-generation smartphone portfolio."

Dean Priddy, CFO and vice president of administration of RFMD, said, "During the September quarter, RFMD demonstrated robust financial performance and achieved several all-time financial records. Of note, RFMD generated record non-GAAP earnings per share of $0.19 and record free cash flow of $56.1 million, while achieving a positive net cash position.

"While we're pleased with our record financial performance, we're even more excited about the future – when we believe our industry-changing technology and new product ramps will continue to support strong growth in revenue, earnings and free cash flow."

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), RFMD's earnings release contains some or all of the following non-GAAP financial measures: (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating income and operating margin, (iii) non-GAAP net income, (iv) non-GAAP net income per diluted share, (v) non-GAAP operating expenses (research and development, marketing and selling and general and administrative), (vi) free cash flow, (vii), EBITDA, (viii) return on invested capital (ROIC), and (ix) net debt or positive net cash.  Each of these non-GAAP financial measures is either adjusted from GAAP results to exclude certain expenses or derived from multiple GAAP measures, which are outlined in the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables on page 10 and the "Additional Selected Non-GAAP Financial Measures And Reconciliations" tables on pages 11 and 12.

In managing RFMD's business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures.  In developing and monitoring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce unit costs with the goal of increasing gross margin and operating margin.  In addition, management relies upon these non-GAAP financial measures to assess whether research and development efforts are at an appropriate level, and when making decisions about product spending, administrative budgets, and marketing programs. In addition, we believe that non-GAAP financial measures provide useful supplemental information to investors and enable investors to analyze the results of operations in the same way as management.  We have chosen to provide this supplemental information to enable investors to perform additional comparisons of operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to operations, certain non-cash expenses and share-based compensation expense, which may obscure trends in RFMD's underlying performance.

We believe that these non-GAAP financial measures offer an additional view of RFMD's operations that, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of RFMD's results of operations and the factors and trends affecting RFMD's business.  However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Our rationale for using these non-GAAP financial measures, as well as their impact on the presentation of RFMD's operations, are outlined below:

Non-GAAP gross profit and gross margin.  Non-GAAP gross profit and gross margin exclude share-based compensation expense, amortization of intangible assets, other non-cash expenses and adjustments for restructuring and integration charges.  We believe that exclusion of these costs in presenting non-GAAP gross profit and gross margin gives management and investors a more effective means of evaluating RFMD's historical performance and projected costs and the potential for realizing cost efficiencies.  We believe that the majority of RFMD's purchased intangibles are not relevant to analyzing current operations because they generally represent costs incurred by the acquired company to build value prior to acquisition, and thus are effectively part of transaction costs rather than ongoing costs of operating RFMD's business.  In this regard, we note that (i) once the intangibles are fully amortized, the intangibles will not be replaced with cash costs and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time, and (ii) although we set the amortization expense based on useful life of the various assets at the time of the transaction, we cannot influence the timing and amount of the future amortization expense recognition once the lives are established.  Similarly, we believe that presentation of non-GAAP gross profit and gross margin and other non-GAAP financial measures that exclude the impact of share-based compensation expense assists management and investors in evaluating the period-over-period performance of RFMD's ongoing operations because (i) the expenses are non-cash in nature, and (ii) although the size of the grants is within our control, the amount of expense varies depending on factors such as short-term fluctuations in stock price volatility and prevailing interest rates, which can be unrelated to the operational performance of RFMD during the period in which the expense is incurred and generally is outside the control of management.  Moreover, we believe that the exclusion of share-based compensation expense in presenting non-GAAP gross profit and gross margin and other non-GAAP financial measures is useful to investors to understand the impact of the expensing of share-based compensation to RFMD's gross profit and gross margins and other financial measures in comparison to both prior periods as well as to its competitors.  We also believe that the adjustments to profit and margin related to other non-cash expenses and restructuring and integration charges do not constitute part of RFMD's ongoing operations and therefore the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and gives management and investors a more effective means of evaluating our historical and projected performance.  We believe disclosure of non-GAAP gross profit and gross margin has economic substance because the excluded expenses do not represent continuing cash expenditures and, as described above, we have little control over the timing and amount of the expenses in question.

Non-GAAP operating income and operating margin.  Non-GAAP operating income and operating margin exclude share-based compensation expense, amortization of intangible assets, other non-cash expenses, restructuring and integration charges, loss on PP&E and start-up costs.  We believe that presentation of a measure of operating income and operating margin that excludes amortization of intangible assets and share-based compensation expense is useful to both management and investors for the same reasons as described above with respect to our use of non-GAAP gross profit and gross margin.  We believe that other non-cash expenses, restructuring and integration charges, loss on PP&E and start-up costs do not constitute part of RFMD's ongoing operations and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and gives management and investors a more effective means of evaluating our historical and projected performance.  We believe disclosure of non-GAAP operating income and operating margin has economic substance because the excluded expenses are either unrelated to operations or do not represent current cash expenditures.

Non-GAAP net income and non-GAAP net income per diluted share. Non-GAAP net income and non-GAAP net income per diluted share exclude the effects of share-based compensation expense, amortization of intangible assets, other non-cash expenses, restructuring and integration charges, loss on PP&E, start-up costs, loss on retirement of convertible subordinated notes, non-cash interest expense on convertible subordinated notes and also reflect an adjustment of income taxes for cash basis. We believe that presentation of measures of net income and net income per diluted share that exclude these items is useful to both management and investors for the reasons described above with respect to non-GAAP gross profit and gross margin and non-GAAP operating income and operating margin. We believe disclosure of non-GAAP net income and non-GAAP net income per diluted share has economic substance because the excluded expenses are either unrelated to operations or do not represent current cash expenditures.

Non-GAAP research and development, marketing and selling and general and administrative expenses. Non-GAAP research and development, marketing and selling and general and administrative expenses exclude share-based compensation expense, amortization of intangible assets, other non-cash expenses and restructuring and integration charges. We believe that presentation of measures of these operating expenses that exclude amortization of intangible assets and share-based compensation expense is useful to both management and investors for the same reasons as described above with respect to our use of non-GAAP gross profit and gross margin. We believe that other non-cash expenses and restructuring and integration charges do not constitute part of RFMD's ongoing operations and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and gives management and investors a more effective means of evaluating our historical and projected performance. We believe disclosure of these non-GAAP operating expenses has economic substance because the excluded expenses are either unrelated to operations or do not represent current cash expenditures.

Free cash flow. RFMD defines free cash flow as net cash provided by operating activities during the period minus property and equipment expenditures made during the period. We use free cash flow as a supplemental financial measure in our evaluation of liquidity and financial strength. Management believes that this measure is useful as an indicator of our ability to service our debt, meet other payment obligations and make strategic investments. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our entire statement of cash flows.

EBITDA.  RFMD defines EBITDA as earnings before interest expense and interest income, income tax expenses, depreciation and intangible amortization.  Management believes that this measure is useful to evaluate our ongoing operations and as a general indicator of our operating cash flow (in conjunction with a cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges).  The amounts shown for EBITDA as presented herein differ from the amounts calculated under the definition of EBITDA used in our equipment term loan agreement.  The definition of EBITDA as used in the loan agreement is further adjusted for certain cash and non-cash charges, including stock compensation expense, and is used to determine compliance with financial covenants.

Non-GAAP ROIC. Return on invested capital (ROIC) is a non-GAAP financial measure that management believes provides useful supplemental information for management and the investor by measuring the effectiveness of our operations' use of invested capital to generate profits. We use ROIC to track how much value we are creating for our shareholders. Non-GAAP ROIC is calculated by dividing annualized non-GAAP operating income, net of cash taxes, by average invested capital.  Average invested capital is calculated by subtracting the average of the beginning balance and the ending balance of current liabilities (excluding the current portion of long-term debt and other short-term financings) from the average of the beginning balance and the ending balance of net accounts receivable, inventories, other current assets, net property and equipment and a cash amount equal to seven days of quarterly revenue.

Net debt or positive net cash. Net debt or positive net cash is defined as unrestricted cash, cash equivalents and short-term investments minus the principal amount of RFMD's convertible subordinated notes due 2012 and 2014. Management believes that net debt or positive net cash provides useful information regarding the level of RFMD's indebtedness by reflecting cash and investments that could be used to repay debt.

Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP gross profit and gross margin, non-GAAP operating expenses, non-GAAP operating income and operating margin, non-GAAP net income, non-GAAP net income per diluted share, free cash flow, EBITDA, non-GAAP ROIC and net debt or positive net cash, as compared to the most directly comparable GAAP financial measures of gross profit and gross margin, operating expenses, operating income, net income, net income per diluted share and net cash provided by operating activities are (i) they may not be comparable to similarly titled measures used by other companies in RFMD's industry, and (ii) they exclude financial information that some may consider important in evaluating our performance. We compensate for these limitations by providing full disclosure of the differences between these non-GAAP financial measures and the corresponding GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the corresponding GAAP financial measures, to enable investors to perform their own analysis of our gross profit and gross margin, operating expenses, operating income, net income, net income per diluted share and net cash provided by operating activities.

RF Micro Devices will conduct a conference call at 5:00 p.m. EDT today to discuss today's press release.  The conference call will be broadcast live over the Internet and can be accessed by any interested party at http://www.rfmd.com (under "Investors").  A telephone playback of the conference call will be available approximately one hour after the call's completion by dialing 303-590-3030 and entering pass code 4326183.  

About RFMD

RF Micro Devices, Inc. (Nasdaq GS: RFMD) is a global leader in the design and manufacture of high-performance radio frequency components and compound semiconductor technologies. RFMD's products enable worldwide mobility, provide enhanced connectivity and support advanced functionality in the cellular handset, wireless infrastructure, wireless local area network (WLAN), CATV/broadband and aerospace and defense markets. RFMD is recognized for its diverse portfolio of semiconductor technologies and RF systems expertise and is a preferred supplier to the world's leading mobile device, customer premises and communications equipment providers.

Headquartered in Greensboro, N.C., RFMD is an ISO 9001- and ISO 14001-certified manufacturer with worldwide engineering, design, sales and service facilities. RFMD is traded on the NASDAQ Global Select Market under the symbol RFMD. For more information, please visit RFMD's web site at www.rfmd.com.

This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions and are not historical facts and typically are identified by use of terms such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management's current judgment and expectations, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under the federal securities laws. RF Micro Devices' business is subject to numerous risks and uncertainties, including variability in operating results, risks associated with the impact of global macroeconomic and credit conditions on our business and the business of our suppliers and customers, our reliance on a few large customers for a substantial portion of our revenue, the rate of growth and development of wireless markets, our ability to bring new products to market, our reliance on inclusion in third party reference designs for a portion of our revenue, our ability to manage channel partner and customer relationships, risks associated with the operation of our wafer fabrication, molecular beam epitaxy, assembly and test and tape and reel facilities, our ability to complete acquisitions and integrate acquired companies, including the risk that we may not realize expected synergies from our business combinations, our ability to attract and retain skilled personnel and develop leaders, variability in production yields, raw material costs and availability, our ability to reduce costs and improve margins in response to declining average selling prices, our ability to adjust production capacity in a timely fashion in response to changes in demand for our products, dependence on gallium arsenide (GaAs) for the majority of our products, dependence on third parties, and substantial reliance on international sales and operations. These and other risks and uncertainties, which are described in more detail in RF Micro Devices' most recent Annual Report on Form 10-K and other reports and statements filed with the Securities and Exchange Commission, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

RF MICRO DEVICES® and RFMD® are trademarks of RFMD, LLC. All other trade names, trademarks and registered trademarks are the property of their respective owners.

Financial Tables To Follow

RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)


Three Months Ended



October 2,
2010



October 3,
2009

Total revenue

$

285,794


$

254,757







Costs and expenses:






  Cost of goods sold  


177,139



163,208

  Research and development


35,604



34,846

  Marketing and selling


15,094



14,741

  General and administrative


14,836



16,721

  Other operating expense


729



1,114







  Total costs and expenses


243,402



230,630







Operating income


42,392



24,127

Other expense


(4,816)



(6,047)







Income before income taxes

$

37,576


$

18,080

Income tax expense


(2,493)



(3,501)







Net income

$

35,083


$

14,579







Net income per share, diluted

$

0.13


$

0.05







Weighted average outstanding diluted shares


277,458



298,668










RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)


Six Months Ended



October 2,
2010



October 3,
2009

Total revenue

$

559,636


$

467,297







Costs and expenses:






  Cost of goods sold  


348,575



301,746

  Research and development


71,705



70,479

  Marketing and selling


29,462



28,310

  General and administrative


25,905



27,933

  Other operating expense


1,038



2,650







  Total costs and expenses


476,685



431,118







Operating income


82,951



36,179

Other expense


(9,357)



(10,245)







Income before income taxes

$

73,594


$

25,934

Income tax expense


(10,397)



(6,571)







Net income

$

63,197


$

19,363







Net income per share, diluted

$

0.23


$

0.07







Weighted average outstanding diluted shares


277,696



297,573










RF MICRO DEVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except percentages and per share data)

(Unaudited)



Three Months Ended



October 2,
2010



July 3,
2010



October 3,
2009










GAAP operating income

$

42,392


$

40,559


$

24,127

Share-based compensation expense


9,135



5,311



11,125

Amortization of intangible assets


4,615



4,615



4,804

Restructuring charges related to fiscal 2009 strategic
       restructuring and adverse macroeconomic conditions


110



205



1,072

Other expenses (restructuring, loss on PP&E, integration,
       start-up costs and other non-cash expenses)


881



999



609

Non-GAAP operating income


57,133



51,689



41,737










GAAP net income


35,083



28,115



14,579

Share-based compensation expense


9,135



5,311



11,125

Amortization of intangible assets


4,615



4,615



4,804

Restructuring charges related to fiscal 2009 strategic
       restructuring and adverse macroeconomic conditions


110



205



1,072

Other expenses (restructuring, loss on PP&E, integration,
       start-up costs, and other non-cash expenses)


881



999



609

Loss on retirement of convertible subordinated notes


1,646



-



-

Non-cash interest expense on convertible subordinated notes


3,262



4,414



4,602

Tax adjustments


(2,415)



684



151










Non-GAAP net income


52,317



44,343



36,942

Plus:  Income impact of assumed conversions for interest on
   1.50% convertible notes      


-



15



768

Non-GAAP net income plus assumed conversion of notes-
   Numerator for diluted income per share

$

52,317


$

44,358


$

37,710










GAAP and Non-GAAP weighted average outstanding diluted
   shares


277,458



277,933



298,668










Non-GAAP net income per share, diluted

$

0.19


$

0.16


$

0.13















Three Months Ended



October 2, 2010



July 3, 2010



October 3, 2009

GAAP gross margin

$

108,655

38.0%


$

102,407

37.4%


$

91,549

35.9%

Adjustment for intangible amortization


3,514

1.2%



3,514

1.3%



3,705

1.5%

Adjustment for share-based compensation


1,248

0.5%



960

0.3%



1,389

0.5%

Other expenses (restructuring, integration
        and other non-cash expenses)


262

0.1%



508

0.2%



385

0.2%

Non-GAAP gross margin

$

113,679

39.8%


$

107,389

39.2%


$

97,028

38.1%
















RF MICRO DEVICES, INC. AND SUBSIDIARIES

ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

(In thousands, except percentages)
(Unaudited)



Three Months Ended

Non-GAAP Operating Income

October 2, 2010

(as a percentage of sales)




GAAP operating income

14.8%

Share-based compensation expense

3.2%

Amortization of intangible assets

1.6%

Restructuring charges related to fiscal 2009 strategic restructuring and adverse
        macroeconomic conditions

0.1%

Other expenses (restructuring, loss on PP&E, integration, start-up costs and other
        non-cash expenses)

0.3%

Non-GAAP operating income

20.0%








Three Months Ended


October 2, 2010


July 3, 2010


October 3, 2009

GAAP research and development expense

$

35,604


$

36,101


$

34,846

Less:









Share-based compensation expense


1,392



1,343



1,399

Amortization of intangible assets


14



14



12

Other expenses (restructuring, integration  
       and other non-cash expenses)


-



384



118

Non-GAAP research and development
   expense

$

34,198


$

34,360


$

33,317













Three Months Ended


October 2, 2010


 July 3, 2010


 October 3, 2009

GAAP marketing and selling expense

$

15,094


$

14,368


$

14,741

Less:









Share-based compensation expense


1,493



1,198



1,915

Amortization of intangible assets


1,087



1,087



1,087

Other expenses (restructuring, integration
       and other non-cash expenses)


-



3



8

Non-GAAP marketing and selling expense

$

12,514


$

12,080


$

11,731













Three Months Ended


October 2, 2010


July 3, 2010


October 3, 2009

GAAP general and administrative expense

$

14,836


$

11,070


$

16,721

Less:









Share-based compensation expense


5,002



1,810



6,422

Other expenses (restructuring, integration)


-



-



17

Non-GAAP general and administrative  
   expense

$

9,834


$

9,260


$

10,282















RF MICRO DEVICES, INC. AND SUBSIDIARIES

ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

(Unaudited)


Free Cash Flow (1)


Three Months Ended


October 2, 2010

(In millions)






Net cash provided by operating activities

$

61.3

Purchases of property and equipment


(5.2)

Free Cash Flow

$

56.1




(1)   Free Cash Flow is calculated as net cash provided by operating activities minus property and equipment expenditures.





EBITDA (2)


Three Months Ended
October 2, 2010

(In millions)






Net Income

$

35.1

  Interest


3.9

  Income Tax Expense


2.5

  Depreciation


15.9

  Amortization


4.6

EBITDA

$

62.0




(2)  EBITDA is calculated by adjusting net income for interest expense and interest income, income tax expense, depreciation and intangible amortization.




RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)




October 2,
2010



April 3,
2010

ASSETS






Current assets:






Cash and cash equivalents

$

133,801


$

104,778

Restricted cash and trading security investments


439



17,698

Short-term investments


105,931



134,882

Accounts receivable, net


134,739



108,219

Inventories


130,887



122,509

Other current assets


62,776



60,738

Total current assets


568,573



548,824







Property and equipment, net


226,568



247,085

Intangible assets, net


92,912



102,169

Goodwill


95,628



95,628

Long-term investments


2,150



2,175

Other non-current assets


19,769



18,127

Total assets

$

1,005,600


$

1,014,008







LIABILITIES AND SHAREHOLDERS' EQUITY






Current liabilities:






Accounts payable and accrued liabilities


143,316



124,253

Current portion of long-term debt


6,459



15,053

Other short-term liabilities, net


7,804



13,427

Total current liabilities


157,579



152,733







Long-term debt, net


204,217



289,837

Other long-term liabilities


40,111



41,354

Total liabilities


401,907



483,924







Shareholders' equity


603,693



530,084







Total liabilities and shareholders' equity

$

1,005,600


$

1,014,008
















SOURCE RF Micro Devices, Inc.



RELATED LINKS
http://www.rfmd.com

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