RF Micro Devices® Achieves 49% Year-Over-Year Growth in Quarterly Revenue

  RF Micro Devices® Achieves 49% Year-Over-Year Growth in Quarterly Revenue

Diversified Revenue Growth Offsets Industry Seasonality

PR Newswire

GREENSBORO, N.C., April 23, 2013

GREENSBORO, N.C., April 23, 2013 /PRNewswire/ --

Quarterly Highlights:

  oQuarterly Revenue Increases Approximately $92.7 Million, Or Approximately
    49%, Year-Over-Year To $280.6 Million
  oQuarterly GAAP Gross Margin Expands To 31.4% Versus 30.1% In Fiscal 2012,
    And Quarterly Non-GAAP Gross Margin Expands To 34.4% Versus 32.4% In
    Fiscal 2012
  oQuarterly GAAP Diluted EPS Is $(0.06), And Quarterly Non-GAAP Diluted EPS
    Is $0.06
  oRFMD Anticipates Revenue Of Approximately $285 Million To $290 Million And
    Non-GAAP EPS Of Approximately $0.07 To $0.08 In The June 2013 Quarter

RF Micro Devices, Inc. (Nasdaq GS: RFMD®), a global leader in the design and
manufacture of high-performance radio frequency solutions, today reported
financial results for the Company's fiscal 2013 fourth quarter, ended March
30, 2013.

RFMD's fourth quarter revenue increased approximately 3.5% sequentially and
49% year-over-year to $280.6 million, versus $271.2 million in the prior
quarter and $187.9 million in the corresponding prior-year quarter. The
increase in sequential revenue reflected increased adoption of RFMD's
best-in-class cellular RF solutions and broad-based growth in high-performance
WiFi, broadband/CATV, and standard products applications.

On a GAAP basis, gross margin totaled 31.4%, quarterly operating income was
$1.7 million, and quarterly net loss was $(16.0) million, or $(0.06) per
share. On a non-GAAP basis, gross margin totaled 34.4%, quarterly operating
income totaled $20.6 million, and quarterly net income was $17.1 million, or
$0.06 per diluted share.

Strategic Highlights

  oRFMD began production shipments in support of a high-volume flagship
    smartphone containing multiple RFMD components, including multimode
    multi-band (MMMB) power amplifiers (PAs), single-band PAs, and antenna
    control solutions
  oRFMD benefited in the entry segment from leadership on major reference
    designs and the expansion of RFMD's entry solutions product portfolio to
    include industry-leading CMOS PAs
  oRFMD's Multi-Market Products Group delivered sequential growth across all
    business units
  oHigh-performance WiFi achieved double-digit quarter-over-quarter revenue
    growth and increased more than 100% over the March 2012 quarter
  oRFMD announced a flexible GaAs sourcing strategy, including its intent to
    exit its pHEMT fabrication facility in the UK, to expand gross margin and
    support aggressive growth
  oRFMD made a $10 million investment to secure duplexer capacity



GAAP RESULTS
(in millions,
except
percentages      Q4 Fiscal     Q3 Fiscal  Change        Q4        Change
and per                                                 Fiscal
share data)      2013          2013       vs. Q3        2012      vs. Q4
                                          2013                    2012
Revenue          $   280.6     $  271.2   3.5%          $ 187.9   49.3%
Gross Margin     31.4%         32.0%      (0.6)    ppt  30.1%     1.3      ppt
Operating        $   1.7       $  5.7     $ (4.0)       $ (11.0)  $ 12.7
Income (Loss)
Net Loss         $   (16.0)    $  (1.4)   $ (14.6)      $ (13.0)  $ (3.0)
Diluted EPS      $   (0.06)    $  (0.01)  $ (0.05)      $ (0.05)  $ (0.01)
NON-GAAP RESULTS
(excluding share-based compensation, amortization of intangibles, acquired
inventory step-up and revaluation, acquisition-related costs, intellectual
property rights (IPR) litigation costs, inventory revaluation resulting from
transfer of molecular beam epitaxy (MBE) operations, start-up costs, loss on
retirement of convertible subordinated notes, restructuring charges, (gain)
loss on PP&E, loss (income) from equity investment, non-cash interest expense
on convertible subordinated notes and tax adjustments)
(in millions,
except
percentages      Q4 Fiscal     Q3 Fiscal  Change        Q4        Change
and per                                                 Fiscal
share data)      2013          2013       vs. Q3        2012      vs. Q4
                                          2013                    2012
Gross Margin     34.4%         35.5%      (1.1)    ppt  32.4%     2.0      ppt
Operating        $   20.6      $  26.8    $ (6.2)       $ (2.9)   $ 23.5
Income (Loss)
Net Income       $   17.1      $  21.3    $ (4.2)       $ (5.4)   $ 22.5
(Loss)
Diluted EPS      $   0.06      $  0.08    $ (0.02)      $ (0.02)  $ 0.08

Financial Outlook and Business Commentary

RFMD's financial outlook reflects the Company's current expectations for the
timing of key customer program ramps and continued strength in 2G and
high-performance WiFi.

RFMD currently believes the demand environment in its end markets supports the
following expectations and projections for the June 2013 quarter:

  oRFMD expects quarterly revenue to increase to approximately $285
    million--$290 million
  oRFMD expects a non-GAAP tax rate of approximately 15%--20%
  oRFMD expects non-GAAP EPS of approximately $0.07--$0.08

RFMD's actual quarterly results may differ from these expectations and
projections, and such differences may be material.

Comments From Management

Bob Bruggeworth, president and CEO of RFMD, said, "We're very pleased to
report March quarterly results that reflect market share gains and an
above-seasonal revenue performance. RFMD won share across a broad customer set
and outpaced our industries' underlying growth rates with quarterly revenue
improving 3.5% sequentially and 49% year-over-year. RFMD has, and will
continue to, execute on multiple opportunities to increase our dollar content
generation-over-generation in the world's leading smartphones." 

Dean Priddy, CFO and vice president of administration of RFMD, said, "RFMD has
proven our ability to drive growth and diversification through product
leadership, and we are fundamentally altering the Company's cost structure to
deliver superior and sustainable profitability. We expect to drive substantial
margin improvement through multiple activities, including the migration of our
2G product portfolio to our lower-cost, best-in-class RF CMOS technology, the
addition of internal assembly capacity to increase the percent we insource,
the completion of our exit of our UK facility, and the resulting improvement
in utilization in our Greensboro GaAs fab. We believe these activities will
drive three to four points of margin expansion in the second half of this
fiscal year."

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with
United States (U.S.) generally accepted accounting principles (GAAP), RFMD's
earnings release contains some or all of the following non-GAAP financial
measures: (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating
income (loss) and operating margin, (iii) non-GAAP net income (loss), (iv)
non-GAAP net income (loss) per diluted share, (v) non-GAAP operating expenses
(research and development, marketing and selling and general and
administrative), (vi) free cash flow, (vii), EBITDA, (viii) return on invested
capital (ROIC), and (ix) net debt or positive net cash. Each of these
non-GAAP financial measures is either adjusted from GAAP results to exclude
certain expenses or derived from multiple GAAP measures, which are outlined in
the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables on pages 8
and 9 and the "Additional Selected Non-GAAP Financial Measures And
Reconciliations" tables on page 10.

In managing RFMD's business on a consolidated basis, management develops an
annual operating plan, which is approved by our Board of Directors, using
non-GAAP financial measures. In developing and monitoring performance against
this plan, management considers the actual or potential impacts on these
non-GAAP financial measures from actions taken to reduce unit costs with the
goal of increasing gross margin and operating margin. In addition, management
relies upon these non-GAAP financial measures to assess whether research and
development efforts are at an appropriate level, and when making decisions
about product spending, administrative budgets, and marketing programs. In
addition, we believe that non-GAAP financial measures provide useful
supplemental information to investors and enable investors to analyze the
results of operations in the same way as management. We have chosen to
provide this supplemental information to enable investors to perform
additional comparisons of operating results, to assess our liquidity and
capital position and to analyze financial performance excluding the effect of
expenses unrelated to operations, certain non-cash expenses and share-based
compensation expense, which may obscure trends in RFMD's underlying
performance.

We believe that these non-GAAP financial measures offer an additional view of
RFMD's operations that, when coupled with the GAAP results and the
reconciliations to corresponding GAAP financial measures, provide a more
complete understanding of RFMD's results of operations and the factors and
trends affecting RFMD's business. However, these non-GAAP financial measures
should be considered as a supplement to, and not as a substitute for, or
superior to, the corresponding measures calculated in accordance with GAAP.

Our rationale for using these non-GAAP financial measures, as well as their
impact on the presentation of RFMD's operations, are outlined below:

Non-GAAP gross profit and gross margin. Non-GAAP gross profit and gross
margin exclude share-based compensation expense, amortization of intangible
assets and other non-cash expenses, including adjustments for restructuring
and integration charges and certain items associated with acquisitions (such
as inventory step-up and inventory revaluation). We believe that exclusion of
these costs in presenting non-GAAP gross profit and gross margin gives
management and investors a more effective means of evaluating RFMD's
historical performance and projected costs and the potential for realizing
cost efficiencies. We believe that the majority of RFMD's purchased
intangibles are not relevant to analyzing current operations because they
generally represent costs incurred by the acquired company to build value
prior to acquisition, and thus are effectively part of transaction costs
rather than ongoing costs of operating RFMD's business. In this regard, we
note that (i) once the intangibles are fully amortized, the intangibles will
not be replaced with cash costs and therefore, the exclusion of these costs
provides management and investors with better visibility into the actual costs
required to generate revenues over time, and (ii) although we set the
amortization expense based on useful life of the various assets at the time of
the transaction, we cannot influence the timing and amount of the future
amortization expense recognition once the lives are established. Similarly,
we believe that presentation of non-GAAP gross profit and gross margin and
other non-GAAP financial measures that exclude the impact of share-based
compensation expense assists management and investors in evaluating the
period-over-period performance of RFMD's ongoing operations because (i) the
expenses are non-cash in nature, and (ii) although the size of the grants is
within our control, the amount of expense varies depending on factors such as
short-term fluctuations in stock price volatility and prevailing interest
rates, which can be unrelated to the operational performance of RFMD during
the period in which the expense is incurred and generally is outside the
control of management. Moreover, we believe that the exclusion of share-based
compensation expense in presenting non-GAAP gross profit and gross margin and
other non-GAAP financial measures is useful to investors to understand the
impact of the expensing of share-based compensation to RFMD's gross profit and
gross margins and other financial measures in comparison to both prior periods
as well as to its competitors. We also believe that the adjustments to profit
and margin related to other non-cash expenses, including restructuring and
integration charges and certain items associated with acquisitions (such as
inventory step-up and inventory revaluation), do not constitute part of RFMD's
ongoing operations and therefore the exclusion of these costs provides
management and investors with better visibility into the actual costs required
to generate revenues over time and gives management and investors a more
effective means of evaluating our historical and projected performance. We
believe disclosure of non-GAAP gross profit and gross margin has economic
substance because the excluded expenses do not represent continuing cash
expenditures and, as described above, we have little control over the timing
and amount of the expenses in question.

Non-GAAP operating income (loss) and operating margin. Non-GAAP operating
income (loss) and operating margin exclude share-based compensation expense,
amortization of intangible assets, other non-cash expenses, restructuring and
integration charges, certain items associated with acquisitions (such as
inventory step-up and inventory revaluation), intellectual property rights
(IPR) litigation costs, (gain) loss on PP&E and start-up costs. We believe
that presentation of a measure of operating income (loss) and operating margin
that excludes amortization of intangible assets and share-based compensation
expense is useful to both management and investors for the same reasons as
described above with respect to our use of non-GAAP gross profit and gross
margin. We believe that other non-cash expenses, restructuring and
integration charges, certain items associated with acquisitions (such as
inventory step-up and inventory revaluation), IPR litigation costs, (gain)
loss on PP&E and start-up costs do not constitute part of RFMD's ongoing
operations and therefore, the exclusion of these costs provides management and
investors with better visibility into the actual costs required to generate
revenues over time and gives management and investors a more effective means
of evaluating our historical and projected performance. We believe disclosure
of non-GAAP operating income (loss) and operating margin has economic
substance because the excluded expenses are either unrelated to operations or
do not represent current cash expenditures.

Non-GAAP net income (loss) and non-GAAP net income (loss) per diluted share.
Non-GAAP net income (loss) and non-GAAP net income (loss) per diluted share
exclude the effects of share-based compensation expense, amortization of
intangible assets, other non-cash expenses, restructuring and integration
charges, certain items associated with acquisitions (such as inventory
step-up, inventory revaluation and transaction costs), IPR litigation costs,
(gain) loss on PP&E, start-up costs, loss on retirement of convertible
subordinated notes, non-cash interest expense on convertible subordinated
notes, loss (income) from equity investment and also reflect an adjustment of
income taxes for cash basis. We believe that presentation of measures of net
income (loss) and net income (loss) per diluted share that exclude these items
is useful to both management and investors for the reasons described above
with respect to non-GAAP gross profit and gross margin and non-GAAP operating
income (loss) and operating margin. We believe disclosure of non-GAAP net
income (loss) and non-GAAP net income (loss) per diluted share has economic
substance because the excluded expenses are either unrelated to operations or
do not represent current cash expenditures.

Non-GAAP research and development, marketing and selling and general and
administrative expenses. Non-GAAP research and development, marketing and
selling and general and administrative expenses exclude share-based
compensation expense, amortization of intangible assets, other non-cash
expenses, IPR litigation costs and restructuring and integration charges. We
believe that presentation of measures of these operating expenses that exclude
amortization of intangible assets and share-based compensation expense is
useful to both management and investors for the same reasons as described
above with respect to our use of non-GAAP gross profit and gross margin. We
believe that other non-cash expenses, IPR litigation costs, and restructuring
and integration charges do not constitute part of RFMD's ongoing operations
and therefore, the exclusion of these costs provides management and investors
with better visibility into the actual costs required to generate revenues
over time and gives management and investors a more effective means of
evaluating our historical and projected performance. We believe disclosure of
these non-GAAP operating expenses has economic substance because the excluded
expenses are either unrelated to operations or do not represent current cash
expenditures.

Free cash flow. RFMD defines free cash flow as net cash provided by operating
activities during the period minus property and equipment expenditures made
during the period. We use free cash flow as a supplemental financial measure
in our evaluation of liquidity and financial strength. Management believes
that this measure is useful as an indicator of our ability to service our
debt, meet other payment obligations and make strategic investments. Free cash
flow should be considered in addition to, rather than as a substitute for, net
income as a measure of our performance and net cash provided by operating
activities as a measure of our liquidity. Additionally, our definition of free
cash flow is limited, in that it does not represent residual cash flows
available for discretionary expenditures due to the fact that the measure does
not deduct the payments required for debt service and other contractual
obligations. Therefore, we believe it is important to view free cash flow as a
measure that provides supplemental information to our entire statement of cash
flows.

EBITDA. RFMD defines EBITDA as earnings before interest expense and interest
income, income tax expense (benefit), depreciation and intangible
amortization. Management believes that this measure is useful to evaluate our
ongoing operations and as a general indicator of our operating cash flow (in
conjunction with a cash flow statement which also includes among other items,
changes in working capital and the effect of non-cash charges). The amounts
shown for EBITDA as presented herein differ from the amounts calculated under
the definition of EBITDA used in our equipment term loan agreement. The
definition of EBITDA as used in the loan agreement is further adjusted for
certain cash and non-cash charges, including stock compensation expense, and
is used to determine compliance with financial covenants.

Non-GAAP ROIC. Return on invested capital (ROIC) is a non-GAAP financial
measure that management believes provides useful supplemental information for
management and the investor by measuring the effectiveness of our operations'
use of invested capital to generate profits. We use ROIC to track how much
value we are creating for our shareholders. Non-GAAP ROIC is calculated by
dividing annualized non-GAAP operating income, net of cash taxes, by average
invested capital. Average invested capital is calculated by subtracting the
average of the beginning balance and the ending balance of current liabilities
(excluding the current portion of long-term debt and other short-term
financings) from the average of the beginning balance and the ending balance
of net accounts receivable, inventories, other current assets, net property
and equipment and a cash amount equal to seven days of quarterly revenue.

Net debt or positive net cash. Net debt or positive net cash is defined as
unrestricted cash, cash equivalents and short-term investments minus the
principal amount of RFMD's convertible subordinated notes. Management believes
that net debt or positive net cash provides useful information regarding the
level of RFMD's indebtedness by reflecting cash and investments that could be
used to repay debt.

Limitations of non-GAAP financial measures. The primary material limitations
associated with the use of non-GAAP gross profit and gross margin, non-GAAP
operating expenses, non-GAAP operating income (loss) and operating margin,
non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, free
cash flow, EBITDA, non-GAAP ROIC and net debt or positive net cash, as
compared to the most directly comparable GAAP financial measures of gross
profit and gross margin, operating expenses, operating income (loss), net
income (loss), net income (loss) per diluted share and net cash provided by
operating activities are (i) they may not be comparable to similarly titled
measures used by other companies in RFMD's industry, and (ii) they exclude
financial information that some may consider important in evaluating our
performance. We compensate for these limitations by providing full disclosure
of the differences between these non-GAAP financial measures and the
corresponding GAAP financial measures, including a reconciliation of the
non-GAAP financial measures to the corresponding GAAP financial measures, to
enable investors to perform their own analysis of our gross profit and gross
margin, operating expenses, operating income (loss), net income (loss), net
income (loss) per diluted share and net cash provided by operating activities.

RF Micro Devices will conduct a conference call at 5:00 p.m. EDT today to
discuss today's press release. The conference call will be broadcast live
over the Internet and can be accessed by any interested party at
http://www.rfmd.com (under "Investors"). A telephone playback of the
conference call will be available approximately one hour after the call's
completion by dialing 303-590-3030 and entering pass code 4612553#.

About RFMD

RF Micro Devices, Inc. (Nasdaq:RFMD) is a global leader in the design and
manufacture of high-performance radio frequency solutions. RFMD's products
enable worldwide mobility, provide enhanced connectivity and support advanced
functionality in the mobile device, wireless infrastructure, wireless local
area network (WLAN or WiFi), cable television (CATV)/broadband, Smart
Energy/advanced metering infrastructure (AMI), and aerospace and defense
markets. RFMD is recognized for its diverse portfolio of semiconductor
technologies and RF systems expertise and is a preferred supplier to the
world's leading mobile device, customer premises and communications equipment
providers.

Headquartered in Greensboro, N.C., RFMD is an ISO 9001-, ISO 14001-, and
ISO/TS 16949-certified manufacturer with worldwide engineering, design, sales
and service facilities. RFMD is traded on the NASDAQ Global Select Market
under the symbol RFMD. For more information, please visit RFMD's web site at
www.rfmd.com.

This press release includes "forward-looking statements" within the meaning of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements include, but are not limited to,
statements about our plans, objectives, representations and contentions and
are not historical facts and typically are identified by use of terms such as
"may," "will," "should," "could," "expect," "plan," "anticipate," "believe,"
"estimate," "predict," "potential," "continue" and similar words, although
some forward-looking statements are expressed differently. You should be aware
that the forward-looking statements included herein represent management's
current judgment and expectations, but our actual results, events and
performance could differ materially from those expressed or implied by
forward-looking statements. We do not intend to update any of these
forward-looking statements or publicly announce the results of any revisions
to these forward-looking statements, other than as is required under the
federal securities laws. RF Micro Devices' business is subject to numerous
risks and uncertainties, including variability in operating results, risks
associated with the impact of global macroeconomic and credit conditions on
our business and the business of our suppliers and customers, our reliance on
a few large customers for a substantial portion of our revenue, the rate of
growth and development of wireless markets, our ability to bring new products
to market, our reliance on inclusion in third party reference designs for a
portion of our revenue, our ability to manage channel partner and customer
relationships, risks associated with the operation of our wafer fabrication,
molecular beam epitaxy, assembly and test and tape and reel facilities, our
ability to complete acquisitions and integrate acquired companies, including
the risk that we may not realize expected synergies from our business
combinations, our ability to attract and retain skilled personnel and develop
leaders, variability in production yields, raw material costs and
availability, our ability to reduce costs and improve margins in response to
declining average selling prices, our ability to adjust production capacity in
a timely fashion in response to changes in demand for our products, dependence
on gallium arsenide (GaAs) for the majority of our products, dependence on
third parties, and substantial reliance on international sales and operations.
These and other risks and uncertainties, which are described in more detail in
RF Micro Devices' most recent Annual Report on Form 10-K and other reports and
statements filed with the Securities and Exchange Commission, could cause
actual results and developments to be materially different from those
expressed or implied by any of these forward-looking statements.

RF MICRO DEVICES® and RFMD® are trademarks of RFMD, LLC. All other trade
names, trademarks and registered trademarks are the property of their
respective owners.

[Tables To Follow]



RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
                             Three Months Ended        Twelve Months Ended
                             March30,    March31,    March30,    March31,
                             2013         2012         2013         2012
Revenue                      $ 280,603    $ 187,925    $ 964,147    $ 871,352
Costs and expenses:
Cost of goods sold           192,387      131,281      658,332      582,586
Research and development     48,740       40,697       178,793      151,697
Marketing and selling        18,652       16,316       68,674       63,217
General and administrative   16,508       11,710       64,242       50,107
Other operating expense      2,659        (1,032)      9,786        (898)
(income)
Total costs and expenses     278,946      198,972      979,827      846,709
Income (loss) from           1,657        (11,047)     (15,680)     24,643
operations
Other expense                (2,593)      (1,002)      (10,219)     (9,015)
(Loss) income before income  $ (936)      $ (12,049)   $ (25,899)   $ 15,628
taxes
Income tax expense           (15,025)     (942)        (27,100)     (14,771)
Net (loss) income            $ (15,961)   $ (12,991)   $ (52,999)   $ 857
Net (loss) income per share, $ (0.06)     $ (0.05)     $ (0.19)     $ 0.00
diluted
Weighted average outstanding 279,612      276,313      278,602      282,576
diluted shares



RF MICRO DEVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except percentages and per share data)
(Unaudited)
                                          Three Months Ended
                                          March30,  December 29,  March31,
                                          2013       2012          2012
GAAP operating income (loss)              $ 1,657    $  5,680      $ (11,047)
 Share-based compensation expense       6,695      8,832         4,553
 Amortization of intangible assets      7,327      6,456         4,593
 Acquired inventory step-up and         582        2,558         —
revaluation
 Acquisition-related costs and          746        2,019         —
restructuring expenses
 Restructuring and disposal costs
associated with the                       1,365      —             —
 exit of the UK facility
 IPR litigation costs                   1,264      1,173         —
 Other expenses (income)
(restructuring, (gain) loss on            972        56            (1,033)
 PP&E, start-up costs and other
expenses)
Non-GAAP operating income (loss)          20,608     26,774        (2,934)
GAAP net loss                             (15,961)   (1,443)       (12,991)
 Share-based compensation expense       6,695      8,832         4,553
 Amortization of intangible assets      7,327      6,456         4,593
 Acquired inventory step-up and         582        2,558         —
revaluation
 Acquisition-related costs and          746        2,019         —
restructuring expenses
 Restructuring and disposal costs
associated with the exit of               1,365      —             —
 the UK facility
 IPR litigation costs                   1,264      1,173         —
 Other expenses (income)
(restructuring, (gain) loss on            972        56            (1,033)
 PP&E, start-up costs and other
expenses)
 Loss on retirement of convertible      —          —             110
subordinated notes
 Non-cash interest expense on           1,266      1,230         2,215
convertible subordinated notes
 (Income) loss from equity investment   (95)       8             (1,079)
 Tax adjustments                        12,932     391           (1,812)
Non-GAAP net income (loss)                $ 17,093   $  21,280     $ (5,444)
GAAP weighted average outstanding diluted 279,612    279,523       276,313
shares
 Diluted share-based awards            5,930      3,763         —
Non-GAAP weighted average outstanding     285,542    283,286       276,313
diluted shares
Non-GAAP net income (loss) per share,     $ 0.06     $  0.08       $ (0.02)
diluted



RF MICRO DEVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except percentages)
(Unaudited)
                          Three Months Ended
                          March30,         December29,      March31,
                          2013              2012              2012
GAAP gross margin         $ 88,216  31.4 %  $ 86,810  32.0 %  $ 56,644  30.1 %
Adjustment for intangible 6,302     2.2  %  5,147     1.9  %  3,515     1.9  %
amortization
Adjustment for            1,127     0.4  %  1,578     0.6  %  693       0.4  %
share-based compensation
Acquired inventory        582       0.2  %  2,558     1.0  %  —         —    %
step-up and revaluation
Disposal costs associated
with the exit of the UK   423       0.2  %  —         —    %  —         —    %
 facility
Other expenses            —         —    %  107       —    %  —         —    %
Non-GAAP gross margin     $ 96,650  34.4 %  $ 96,200  35.5 %  $ 60,852  32.4 %



                                                            Three Months Ended
Non-GAAP Operating Income                                   March30, 2013
(as a percentage of sales)
GAAP operating income                                       0.6        %
Share-based compensation expense                            2.4
Amortization of intangible assets                           2.6
Acquired inventory step-up and revaluation                  0.2
Acquisition-related costs and restructuring expenses        0.3
Restructuring and disposal costs associated with the exit   0.5
of the UK facility
IPR litigation costs                                        0.4
Other expenses (restructuring, (gain) loss on PP&E,
start-up costs and                                          0.3
 other expenses)
Non-GAAP operating income                                   7.3        %



RF MICRO DEVICES, INC. AND SUBSIDIARIES
ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(In thousands)
(Unaudited)
                                            Three Months Ended
                                            March30,  December29,  March31,
                                            2013       2012          2012
GAAP research and development expense       $ 48,740   $  46,509     $ 40,697
Less:
 Share-based compensation expense         1,938      1,973         1,531
 Amortization of intangible assets        —          —             8
Non-GAAP research and development expense   $ 46,802   $  44,536     $ 39,158
                                            Three Months Ended
                                            March30,  December29,  March31,
                                            2013       2012          2012
GAAP marketing and selling expense          $ 18,652   $  16,906     $ 16,316
Less:
 Share-based compensation expense         975        1,195         791
 Amortization of intangible assets        1,025      1,309         1,070
Non-GAAP marketing and selling expense      $ 16,652   $  14,402     $ 14,455
                                            Three Months Ended
                                            March30,  December29,  March31,
                                            2013       2012          2012
GAAP general and administrative expense     $ 16,508   $  15,746     $ 11,710
Less:
 Share-based compensation expense         2,655      4,086         1,538
 IPR litigation costs                     1,264      1,173         —
Non-GAAP general and administrative expense $ 12,589   $  10,487     $ 10,172



RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                           March30, 2013  March31, 2012
ASSETS
Current assets:
Cash and cash equivalents                  $   101,662     $   135,524
Short-term investments                     77,987          164,863
Accounts receivable, net                   143,250         100,446
Inventories                                161,193         130,372
Other current assets                       31,747          38,162
Total current assets                       515,839         569,367
Property and equipment, net                191,083         197,921
Goodwill                                   104,846         95,628
Intangible assets, net                     93,197          65,141
Long-term investments                      4,281           4,325
Other non-current assets                   21,912          32,202
Total assets                               $   931,158     $   964,584
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities   $   178,387     $   110,580
Current portion of long term debt, net     —               32,759
Other current liabilities                  6,486           4,846
Total current liabilities                  184,873         148,185
Long-term debt, net                        82,035          118,949
Other long-term liabilities                25,236          25,119
Total liabilities                          292,144         292,253
Shareholders' equity                       639,014         672,331
Total liabilities and shareholders' equity $   931,158     $   964,584



SOURCE RF Micro Devices, Inc.

Website: http://www.rfmd.com
Contact: At RFMD®: Doug DeLieto, VP, Investor Relations, 336-678-7088, or Dean
Priddy, CFO, 336-678-7975; At The Financial Relations Board: Joe Calabrese,
Vice President, 212-827-3772
 
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