RF Micro Devices Inc. (RFMD, Financial) filed Quarterly Report for the period ended 2008-12-27.
RF Micro Devices Inc. is a global leader in the design and manufacture of high-performance radio systems and solutions for applications that drive mobile communications. RFMD's power amplifiers transmit modules cellular transceivers and system-on-chip solutions enable worldwide mobility provide enhanced connectivity and support advanced functionality in current and next-generation mobile handsets cellular base stations wireless local area networks wireless personal area networks and global positioning systems. Recognized for its diverse portfolio of state-of-the-art semiconductor technologies and vast RF systems expertise RFMD is a preferred supplier enabling the world's leading mobile device manufacturers to deliver advanced wireless capabilities that satisfy current and future market demands. RF Micro Devices Inc. has a market cap of $278.91 million; its shares were traded at around $1.27 with a P/E ratio of 10.4 and P/S ratio of 0.29.
We experienced operating losses of approximately $754.0 million and $812.8 million for the three- and nine-months ended December 27, 2008, respectively. As a result of the lower current and forecasted demand for our products attributable primarily to the overall global economic slowdown, we recorded an impairment charge of $673.0 million to goodwill and other intangibles, tangible asset impairments of $46.1 million and a $6.6 million charge related to our exit from a leased facility during the third quarter of fiscal 2009. In addition, we recorded restructuring expenses of approximately $4.7 million during the third quarter of fiscal 2009 as a result of the restructuring initiated in the first quarter of fiscal 2009 to reduce investments in wireless systems. Our operating losses of approximately $24.4 million and $18.1 million for the three- and nine-months ended December 29, 2007, respectively, were attributable to increased expenses associated with the acquisition of Sirenza on November 13, 2007, including the $13.9 million charge to other operating expense related to the in-process research and development with no alternative future use.
Income tax expense for the three months ended December 27, 2008 was $63.1 million, which is comprised primarily of a tax expense related to domestic and international operations, and a tax expense related to an increase in the United States, the United Kingdom, and the China deferred tax asset valuation reserves. Income tax expense for the nine months ended December 27, 2008 was $39.9 million, which is comprised primarily of a tax benefit related to domestic operations, offset by a tax expense related to international operations, and a tax expense related to an increase in the United States, the United Kingdom, and the China deferred tax asset valuation reserves. Income tax benefit for the three months ended December 29, 2007 was $3.4 million, comprised primarily of a tax benefit related to an increase in federal income tax credits and a tax benefit related to international and domestic operations. Income tax benefit for the nine months ended December 29, 2007 was $21.6 million, which is comprised primarily of a tax benefit related to a reduction in the federal and state deferred tax asset valuation reserve, tax benefit from the revaluation of China related deferred tax assets, tax expense related to an Internal Revenue Service examination, and tax expense related to income taxes on international and domestic operations.
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 December 27, 2008, we had working capital of approximately $405.7 million, including $145.4 million in cash and cash equivalents, compared to working capital at December 29, 2007 of $639.6 million, including $195.2 million in cash and cash equivalents. The decrease in working capital of $233.9 million as of December 27, 2008, as compared to December 29, 2007, was primarily due to the total cash paid of approximately $46.2 million for the acquisitions of Filtronic and UMC and repurchases of shares of our common stock valued at approximately $98.7 million during the fourth quarter of fiscal 2008, as well as total cash paid of approximately $22.2 million for the retirement of a portion of our convertible subordinated notes in the third quarter of fiscal 2009.
Net cash used in investing activities for the nine months ended December 27, 2008 was $42.8 million compared to net cash used in investing activities of $512.8 million for the nine months ended December 29, 2007. During the third quarter of fiscal 2008, we purchased Sirenza for approximately $880.7 million of which cash consideration approximated $258.0 million (net of cash acquired) and we had higher investing activities related to the proceeds received from our convertible debt offering in April 2007. In addition, our capital expenditures totaled $42.2 million for the nine months ended December 27, 2008 compared to $88.5 million for the nine months ended December 29, 2007. During the first quarter of fiscal 2009, we completed the acquisition of UMC for $23.5 million, net of cash acquired.
Net cash used in financing activities was $22.7 million for the nine months ended December 27, 2008, compared to net cash provided by financing activities of $379.1 million for the nine months ended December 29, 2007. This decrease is primarily due to higher financing activities in the first quarter of fiscal 2008 related to the private placement of convertible subordinated notes. In April 2007, we issued $200 million aggregate principal amount of 0.75% Convertible Subordinated Notes due 2012 and $175 million aggregate principal amount of 1.00% Convertible Subordinated Notes due 2014. The two series of notes were issued in a private placement to Merrill Lynch, Pierce, Fenner & Smith Incorporated for resale to qualified institutional buyers. The net proceeds of the offering were approximately $366.2 million after payment of the underwriting discount and expenses of the offering totaling approximately $8.8 million. In the third quarter of fiscal 2009, we repurchased $33.2 million par value convertible subordinated notes due 2010 and 2014 for approximately $22.2 million.
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RF Micro Devices Inc. is a global leader in the design and manufacture of high-performance radio systems and solutions for applications that drive mobile communications. RFMD's power amplifiers transmit modules cellular transceivers and system-on-chip solutions enable worldwide mobility provide enhanced connectivity and support advanced functionality in current and next-generation mobile handsets cellular base stations wireless local area networks wireless personal area networks and global positioning systems. Recognized for its diverse portfolio of state-of-the-art semiconductor technologies and vast RF systems expertise RFMD is a preferred supplier enabling the world's leading mobile device manufacturers to deliver advanced wireless capabilities that satisfy current and future market demands. RF Micro Devices Inc. has a market cap of $278.91 million; its shares were traded at around $1.27 with a P/E ratio of 10.4 and P/S ratio of 0.29.
Highlight of Business Operations:
Operating loss was $754.0 million for the third quarter of fiscal 2009 as compared to an operating loss of $24.4 million for the corresponding quarter of fiscal 2008. As a result of lower current and forecasted demand for our products attributable primarily to the overall global economic slowdown, we recorded an impairment charge of $673.0 million to goodwill and intangibles, tangible asset impairments of $46.1 million and a $6.6 million charge related to our exit from a leased facility during the third quarter of fiscal 2009. In addition, we recorded restructuring expenses of approximately $4.7 million during the third quarter of fiscal 2009 as a result of the restructuring initiated in the first quarter of fiscal 2009 to reduce investments in wireless systems.We experienced operating losses of approximately $754.0 million and $812.8 million for the three- and nine-months ended December 27, 2008, respectively. As a result of the lower current and forecasted demand for our products attributable primarily to the overall global economic slowdown, we recorded an impairment charge of $673.0 million to goodwill and other intangibles, tangible asset impairments of $46.1 million and a $6.6 million charge related to our exit from a leased facility during the third quarter of fiscal 2009. In addition, we recorded restructuring expenses of approximately $4.7 million during the third quarter of fiscal 2009 as a result of the restructuring initiated in the first quarter of fiscal 2009 to reduce investments in wireless systems. Our operating losses of approximately $24.4 million and $18.1 million for the three- and nine-months ended December 29, 2007, respectively, were attributable to increased expenses associated with the acquisition of Sirenza on November 13, 2007, including the $13.9 million charge to other operating expense related to the in-process research and development with no alternative future use.
Income tax expense for the three months ended December 27, 2008 was $63.1 million, which is comprised primarily of a tax expense related to domestic and international operations, and a tax expense related to an increase in the United States, the United Kingdom, and the China deferred tax asset valuation reserves. Income tax expense for the nine months ended December 27, 2008 was $39.9 million, which is comprised primarily of a tax benefit related to domestic operations, offset by a tax expense related to international operations, and a tax expense related to an increase in the United States, the United Kingdom, and the China deferred tax asset valuation reserves. Income tax benefit for the three months ended December 29, 2007 was $3.4 million, comprised primarily of a tax benefit related to an increase in federal income tax credits and a tax benefit related to international and domestic operations. Income tax benefit for the nine months ended December 29, 2007 was $21.6 million, which is comprised primarily of a tax benefit related to a reduction in the federal and state deferred tax asset valuation reserve, tax benefit from the revaluation of China related deferred tax assets, tax expense related to an Internal Revenue Service examination, and tax expense related to income taxes on international and domestic operations.
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 December 27, 2008, we had working capital of approximately $405.7 million, including $145.4 million in cash and cash equivalents, compared to working capital at December 29, 2007 of $639.6 million, including $195.2 million in cash and cash equivalents. The decrease in working capital of $233.9 million as of December 27, 2008, as compared to December 29, 2007, was primarily due to the total cash paid of approximately $46.2 million for the acquisitions of Filtronic and UMC and repurchases of shares of our common stock valued at approximately $98.7 million during the fourth quarter of fiscal 2008, as well as total cash paid of approximately $22.2 million for the retirement of a portion of our convertible subordinated notes in the third quarter of fiscal 2009.
Net cash used in investing activities for the nine months ended December 27, 2008 was $42.8 million compared to net cash used in investing activities of $512.8 million for the nine months ended December 29, 2007. During the third quarter of fiscal 2008, we purchased Sirenza for approximately $880.7 million of which cash consideration approximated $258.0 million (net of cash acquired) and we had higher investing activities related to the proceeds received from our convertible debt offering in April 2007. In addition, our capital expenditures totaled $42.2 million for the nine months ended December 27, 2008 compared to $88.5 million for the nine months ended December 29, 2007. During the first quarter of fiscal 2009, we completed the acquisition of UMC for $23.5 million, net of cash acquired.
Net cash used in financing activities was $22.7 million for the nine months ended December 27, 2008, compared to net cash provided by financing activities of $379.1 million for the nine months ended December 29, 2007. This decrease is primarily due to higher financing activities in the first quarter of fiscal 2008 related to the private placement of convertible subordinated notes. In April 2007, we issued $200 million aggregate principal amount of 0.75% Convertible Subordinated Notes due 2012 and $175 million aggregate principal amount of 1.00% Convertible Subordinated Notes due 2014. The two series of notes were issued in a private placement to Merrill Lynch, Pierce, Fenner & Smith Incorporated for resale to qualified institutional buyers. The net proceeds of the offering were approximately $366.2 million after payment of the underwriting discount and expenses of the offering totaling approximately $8.8 million. In the third quarter of fiscal 2009, we repurchased $33.2 million par value convertible subordinated notes due 2010 and 2014 for approximately $22.2 million.
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