· Yesterday, R.F. Micro
Devices held a conference call whereby they stated that overall
business is quite good. While the company did not officially
raise guidance, the comments regarding business certainly
suggest that they may do so. This is quite a turnaround from
the cautious comments made by R.F. Micro Devices during its
earnings announcement. Our conclusion is that Wall Street
has overreacted and that current prices are very attractive.
· While the company’s TDMA business (10% of
revenues) will be declining, RFMD is leading company in the
dominant systems (W-CDMA, GSM, GPRS, EDGE) for power amplifiers
· The dollar content of RFMD’s products in cellular
handsets has increased 40% since 2001. The company anticipates
that the dollar content would further increase in 2004.