RFMD To Eliminate Approximately $75 Million In Wireless Systems Expenses
RF Micro Devices, Inc. (RFMD) recently announced that effective immediately RFMD is reducing its investments in wireless systems, including cellular transceivers and GPS solutions, in order to focus on core semiconductor component opportunities, including cellular front ends and other components in RFMD’s Cellular Products Group (CPG) and the expanding portfolio of semiconductor components in RFMD’s Multi-Market Products Group (MPG).
As a result, RFMD currently expects to eliminate product development expenses related to its wireless systems business by approximately $75 million this fiscal year beginning in the June 2008 quarter, with the full benefit expected to be realized in the December 2008 quarter.
Bob Bruggeworth, president and CEO of RFMD, said, “These strategic actions will enable RFMD to deliver more predictable financial results and substantially higher profitability. We are the industry leader in RF components and the world’s largest manufacturer of compound semiconductors. We are investing in growing markets where we have a demonstrated track record of success, and we will measure our progress using operating income and return on invested capital (ROIC) as key performance metrics. We anticipate steady financial improvement throughout the year, and we currently forecast at least 10% non-GAAP operating income and double-digit ROIC by the end of the calendar year.
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