Sterne Agee Gives Update on RF Micro Devices

Sterne Agee has published a report on RF Micro Devices Inc. RFMD revising estimates after F1Q12 results. In the report, Sterne Agee wrote, "RFMD reported F1Q12 (Jun) non-GAAP revenues/EPS of $214.2M/$0.08 better than $207.7M/$0.07 consensus. Upside from strong 3G/4G Powersmart ramps ahead of expectations. JunQ Gross Margin (GMs) improved 100bps q/q with mix. Significant 2H11 Design wins & Conservatism Position for Upside: RFMD noted significant design wins in the quarter ramping into C2H11 with PowerSmart and Phenom as below: PowerSmart Wins: RFMD notes new 2H11 wins at HTC (multiple models) along with Samsung, LG and RIMM. We should note that Samsung-HTC-RIMM are new incremental PowerSmart customers here for RFMD. RFMD has had immaterial presence at HTC-RIMMSamsung in C10. Phenom PAs: at HTC, Huawei, ZTE, Mediatek. We believe RFMD is ramping at HTC-RIMM with Qualcomm, all significant new partners and new wins for 2H11/1H12. Switch: new wins at HTC, RIMM and Motorola with Phenom+Switch could drive $4-6 content per phone. We believe the significant backlog and ramps point to market share gains at 3G/4G away from peers." Sterne Agee rated RF Micro Devices a BUY with a price target of $10.00. RF Micro Devices closed Tuesday at $6.45.