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RF Micro Devices Inc. Reports Operating Results (10-Q)

February 09, 2011 | About:
10qk

10qk

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RF Micro Devices Inc. (RFMD) filed Quarterly Report for the period ended 2011-01-01.

Rf Micro Devices Inc. has a market cap of $1.98 billion; its shares were traded at around $7.545 with a P/E ratio of 11.9 and P/S ratio of 2. Hedge Fund Gurus that owns RFMD: Steven Cohen of SAC Capital Advisors, George Soros of Soros Fund Management LLC, Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns RFMD: RS Investment Management, RS Investment Management.

Highlight of Business Operations:

In the second quarter of fiscal 2011, we purchased and retired $100.0 million original principal amount of our 2012 Notes for $97.0 million, which resulted in a loss of approximately $1.6 million as a result of applying ASC 470-20. In the first quarter of fiscal 2010, we purchased and retired an aggregate of $10.0 million original principal amount of the 2012 Notes and 2014 Notes, which resulted in a gain of approximately $1.9 million as a result of applying ASC 470-20. In the third quarter of fiscal 2010, we purchased and retired, at 100% of the original principal amount, $197.0 million of the 2010 Notes, which resulted in a loss of $0.4 million due to the write off of the unamortized discount and debt issuance costs. ASC 470-20 requires us to record gains and losses on the early retirement of our 2012 Notes and our 2014 Notes in the period of derecognition, depending on whether the fair market value at the time of derecognition was greater than, or less than, the carrying value of the debt.

We have funded our operations to date through sales of equity and debt securities, bank borrowings, capital equipment leases and revenue from product sales. Through public and Rule 144A securities offerings, we have raised approximately $1,053.3 million, net of offering expenses. As of January 1, 2011, we had working capital of approximately $480.9 million, including $158.4 million in cash and cash equivalents, compared to working capital of approximately $356.4 million at January 2, 2010, including $121.5 million in cash and cash equivalents. As of January 1, 2011, our total cash, cash equivalents and short-term investments balance exceeded our remaining principal amount of 2012 Notes and 2014 Notes by $71.6 million.

Net cash used in financing activities was $112.5 million for the nine months ended January 1, 2011, compared to $207.3 million for the nine months ended January 2, 2010. This decrease in cash used in financing activities was primarily due to lower repayment of debt. During the second quarter of 2011 we purchased and retired $100.0 million original principal amount of the 2012 Notes for $97.0 million. During the first quarter of fiscal 2011 we also repaid the $12.9 million balance of a no net cost loan (see Note 5 to the Condensed Consolidated Financial Statements). In addition, the remaining $10.0 million balance of our 2010 Notes matured and was paid on July 1, 2010. During the third quarter of fiscal 2010 we purchased and retired $197.0 million original principal amount of the 2010 Notes for $197.0 million. During the first quarter

In the second quarter of fiscal 2011, we purchased and retired $100.0 million original principal amount of our 2012 Notes for $97.0 million, which resulted in a loss of approximately $1.6 million. During fiscal 2010, we purchased and retired $2.3 million original principal amount of the 2012 Notes at an average price of $78.56, which resulted in a gain of approximately $0.3 million. As of January 1, 2011, the 2012 Notes had a fair value of $108.3 million (excluding $102.3 million of the original principal amount of the 2012 Notes that were purchased and retired) and $182.9 million as of January 2, 2010 (excluding $2.3 million of the original principal amount of the 2012 Notes that were purchased and retired).

During fiscal 2010, we purchased and retired $7.8 million original principal amount of the 2014 Notes at an average price of $61.55, which resulted in a gain of approximately $1.6 million. In addition, during fiscal 2009, we purchased and retired $32.3 million original principal amount of the 2014 Notes at an average price of $41.47, which resulted in a gain of approximately $10.6 million. The 2014 Notes had a fair value of $152.3 million as of January 1, 2011 and $118.2 million as of January 2, 2010 (both years excluded $40.1 million of the original principal amount of the 2014 Notes that were purchased and retired).

During fiscal 2004, we completed the private placement of $230.0 million aggregate principal amount of 1.50% convertible subordinated notes due July 1, 2010 (first quarter of fiscal 2011). The net proceeds of the offering were approximately $224.7 million after payment of the underwriting discount and expenses of the offering totaling $5.3 million. The net proceeds from the 1.50% offering were offset by the purchase of $200.0 million of the $300.0 million aggregate principal amount of our 3.75% convertible subordinated notes due 2005. On August 15, 2004, we redeemed the remainder of the outstanding principal amount of the 3.75% convertible subordinated notes for $100.0 million plus accrued interest with cash flow from operations and cash on hand. In fiscal 2009, we purchased and retired $23.0 million of the original principal amount of the 2010 Notes at an average price of $82.83, which resulted in a gain of approximately $3.8 million and in fiscal 2010, we purchased and retired, at 100% of the original principal amount, $197.0 million of the 2010 Notes, which resulted in a loss of $0.4 million due to the write-off of the unamortized discount and debt issuance cost. The remaining balance of $10.0 million of the 2010 Notes matured on July 1, 2010, and was paid with cash on hand.

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