WASHINGTON (dpa-AFX) - Radio frequency chipmaker RF Micro Devices Inc (RFMD) Thursday reported a surge in profit for the first quarter from last year on higher revenues and margins as well as lower costs.
Both revenue and adjusted earnings per share for the quarter beat analysts' expectations. In addition, the company forecast results for the second quarter above Street estimates.
The Greensboro, North Carolina-based company's net income for the first quarter was $38.65 million or $0.13 per share, up sharply from $1.56 million or $0.01 per share in the same period last year.
Excluding items, adjusted net income for the quarter were $0.24 per share, compared to $0.09 per share in the year-ago period. On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter rose 8 percent to $316.32 million from $293.00 million in the prior-year period. Analysts had a consensus revenue estimate of $304.86 million for the quarter.
Gross margin increased 1,310 basis points from last year to 45 percent. Total costs and expenses declined 7 percent from last year to $270.20 million.
Looking ahead to the second quarter, RF Micro Devices forecast adjusted earnings of about $0.27 per share on revenue of about $345 million. Analysts expect earnings of $0.21 per share for the quarter on revenue of $328.8 million.
Bob Bruggeworth, president and CEO of RFMD, said, 'In the September quarter, RFMD anticipates broad-based revenue growth supported by new smartphone ramps, content increases in LTE, deepening penetration of 802.11 ac, and continued broad market strength. We expect our diversified revenue growth to outpace the growth rate of our underlying markets and drive continued robust growth in RFMD's gross profit, operating profit, and earnings per share.'
RFMD closed Thursday's regular trading session at $10.53, up $0.11 or 1.06 percent n a volume of 20.62 million shares. In after-hours, the stock further gained $0.52 or 4.94 percent to $11.05.
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