RFMD® Achieves Record Quarterly Revenue Of $310.7 Million

          RFMD® Achieves Record Quarterly Revenue Of $310.7 Million

Company Projects Continued Margin Expansion, Operating Leverage, And EPS
Growth

PR Newswire

GREENSBORO, N.C., Oct. 22, 2013

GREENSBORO, N.C., Oct. 22, 2013 /PRNewswire/ --

Quarterly Highlights:

  oQuarterly Revenue Increases 48% Year-Over-Year To A Record $310.7 Million
  oGAAP Gross Margin Is 33.7% And GAAP Diluted EPS Is $0.02, Versus $(0.06)
    In Q2 Fiscal 2013
  oNon-GAAP Gross Margin Is 36.2% And Non-GAAP Diluted EPS Is $0.12, Versus
    $0.03 In Q2 Fiscal 2013
  oIn The December 2013 Quarter, RFMD Anticipates Revenue To Be Approximately
    Flat To Up 5% Sequentially
  oRFMD Expects Non-GAAP Gross Margin To Expand Sequentially By Approximately
    120 bps And Non-GAAP EPS Of Approximately $0.13 To $0.14 In The December
    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 2014 second quarter, ended
September 28, 2013.

September quarterly revenue increased approximately 6% sequentially and 48%
year-over-year to a record $310.7 million, compared to $293.0 million in the
prior quarter and $209.7 million in the corresponding quarter of the prior
year. The sequential and year-over-year increases in revenue were due
primarily to generation-over-generation increases of RFMD's best-in-class RF
solutions in the industry's marquee smartphones.

On a GAAP basis, gross margin for the September 2013 quarter was 33.7%,
quarterly operating income was $9.5 million, and quarterly net income was $5.9
million, or $0.02 per share. On a non-GAAP basis, gross margin expanded by 110
basis points sequentially and 100 basis points year-over-year to 36.2%,
quarterly operating income totaled $37.2 million, or 12% of sales, and
quarterly net income was $33.9 million, or $0.12 per diluted share. During the
September quarter, the Company repurchased 2.4 million shares of stock at an
average price of $5.03.

Strategic Highlights

  oRFMD's Cellular Products Group (CPG) grew revenue 7% sequentially and 59%
    year-over-year
  oCPG expanded its dollar content in the September quarter in the world's
    leading 4G LTE smartphones
  oCPG benefited in the entry segment, with leading market share on major
    reference designs and expanded customer engagements with Xiaomi, Coolpad,
    Lenovo, Huawei, and others
  oCPG ramped production of new average power tracking (APT) and envelope
    tracking (ET) power amplifiers (PAs), PA duplexers, antenna control
    solutions, antenna switch modules, and diversity switches
  oCPG enjoyed favorable design activity for its industry-leading carrier
    aggregation switch portfolio
  oYear-over-year, RFMD's Multi-Market Products Group (MPG) delivered 12%
    growth across multiple markets, with high-performance Wi-Fi growing 49%
    and broadband cable TV and Hi-Rel applications both growing over 20%
  oMPG experienced strong design activity for its Wi-Fi front ends for both
    mobile devices and consumer premises equipment



GAAP RESULTS
(in millions,
except
percentages and   Q2 Fiscal      Q1 Fiscal    Change      Q2        Change
per                                                       Fiscal
share data)       2014           2014         vs. Q1      2013      vs. Q2
                                              2014                  2013
Revenue           $   310.7      $   293.0    6.0%        $ 209.7   48.2%
Gross Margin      33.7%          31.9%        1.8    ppt  31.7%     2.0    ppt
Operating         $   9.5        $   3.2      $ 6.3       $ (10.2)  $ 19.7
Income (Loss)
Net Income        $   5.9        $   1.6      $ 4.3       $ (16.5)  $ 22.4
(Loss)
Diluted EPS       $   0.02       $   0.01     $ 0.01      $ (0.06)  $ 0.08
NON-GAAP RESULTS
(excluding share-based compensation, amortization of intangibles, inventory
revaluation associated with MBE transaction, acquisition-related costs,
intellectual property rights (IPR) litigation costs, start-up costs, loss on
retirement of convertible subordinated notes, restructuring and disposal
costs, certain consulting costs, (gain) loss on PP&E, income from equity
investment, non-cash interest expense on convertible subordinated notes and
tax adjustments)
(in millions,
except
percentages and   Q2 Fiscal      Q1 Fiscal    Change      Q2        Change
per                                                       Fiscal
share data)       2014           2014         vs. Q1      2013      vs. Q2
                                              2014                  2013
Gross Margin      36.2%          35.1%        1.1    ppt  35.2%     1.0    ppt
Operating         $   37.2       $   28.0     $ 9.2       $ 9.2     $ 28.0
Income
Net Income        $   33.9       $   25.6     $ 8.3       $ 7.8     $ 26.1
Diluted EPS       $   0.12       $   0.09     $ 0.03      $ 0.03    $ 0.09



Business Commentary and Financial Outlook

RFMD's markets continue to grow with the expanding demand for
high-performance, broadband connectivity. This is increasing RFMD's dollar
content opportunities and enabling RFMD to expand its dollar content
generation-over-generation in the highest tier smartphones as well as in the
highest volume entry-level phones and reference designs.

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

  oRFMD expects sequential revenue growth in CPG, partially offset by a
    sequential decline in MPG
  oRFMD expects quarterly revenue to be approximately flat to up 5%
    sequentially
  oRFMD expects non-GAAP gross margin to expand sequentially by approximately
    120 basis points
  oRFMD expects a non-GAAP tax rate of approximately 15%
  oRFMD expects non-GAAP EPS of approximately $0.13--$0.14

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, "During the September
quarter, RFMD continued to leverage our product and technology leadership to
help differentiate our customers' products and satisfy the accelerating demand
for always-on broadband connectivity. In the December quarter, RFMD
anticipates another quarter of significantly improved financial performance,
given our expectations for continued dollar content growth, expansion into new
categories, and the benefit of ongoing new product ramps.

"We are increasing our participation on the industry's most critical reference
designs and highest volume devices, across all tiers, and we are executing on
multiple opportunities to further expand our dollar content next year."

Dean Priddy, CFO and vice president of administration of RFMD, said, "RFMD is
delivering diversified revenue growth and executing on our margin expansion
initiatives. In the current quarter, we expect to achieve approximately 120
basis points of gross margin expansion. Beyond December, our confidence in
margin expansion allows us to project margin improvement in a seasonally down
March quarter. In calendar 2014, we currently expect to achieve our quarterly
non-GAAP gross margin model of 40%."

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 10
and 11 and the "Additional Selected Non-GAAP Financial Measures And
Reconciliations" tables on page 12.

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, adjustments for restructuring and
integration charges and certain items associated with the sale of our UK
facility and the transfer of our MBE operations. 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, restructuring and integration
charges and certain items associated with the sale of our UK facility and the
transfer of our MBE operations, 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 the sale of our UK facility
and the transfer of our MBE operations, certain consulting costs, 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 the sale
of our UK facility and the transfer of our MBE operations, certain consulting
costs, 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 the sale of our UK facility and the
transfer of our MBE operations, certain consulting 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, 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, certain consulting costs, and IPR litigation costs. 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, certain consulting costs, and IPR litigation 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 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).

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 4644159.

About RFMD
RFMD(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 Wi-Fi), 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. RFMD is an ISO
9001-, ISO 14001-, and ISO/TS 16949-certified manufacturer with worldwide
engineering, design, sales and service facilities. For more information,
please visit RFMD's web site atrfmd.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, the
inability of certain of our customers or suppliers to access their traditional
sources of credit, our industry's rapidly changing technology, our dependence
on a few large customers for a substantial portion of our revenue, our ability
to implement innovative technologies, our ability to bring new products to
market and achieve design wins, the efficient and successful operation of our
wafer fabrication facilities, assembly facilities and test and tape and reel
facilities, our ability to adjust production capacity in a timely fashion in
response to changes in demand for our products, variability in manufacturing
yields, industry overcapacity and current macroeconomic conditions, inaccurate
product forecasts and corresponding inventory and manufacturing costs,
dependence on third parties and our ability to manage channel partners and
customer relationships, our dependence on international sales and operations,
our ability to attract and retain skilled personnel and develop leaders, the
possibility that future acquisitions may dilute our shareholders' ownership
and cause us to incur debt and assume contingent liabilities, fluctuations in
the price of our common stock, additional claims of infringement on our
intellectual property portfolio, lawsuits and claims relating to our products,
security breaches and other similar disruptions compromising our information
and exposing us to liability and the impact of stringent environmental
regulations. These and other risks and uncertainties, which are described in
more detail inRF Micro Devices'most recent Annual Report on Form 10-K and
other reports and statements filed with theSecurities 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, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)
                 Three Months Ended                Six Months Ended
                 September28,    September29,    September28,    September29,

                 2013             2012             2013             2012
Revenue        $ 310,716        $ 209,671        $ 603,712        $ 412,331
Costs and
expenses:
Cost of goods  206,060          143,136          405,587          281,542
sold
Research and   49,204           41,968           97,529           83,544
development
Marketing and  18,918           16,238           38,327           33,116
selling
General and    24,062           18,593           43,554           31,988
administrative
Other
operating      3,016            (114)            6,024            5,158
expense
(income)
Total costs    301,260          219,821          591,021          435,348
and expenses
Income (loss)
from           9,456            (10,150)         12,691           (23,017)
operations
Other expense  (999)            (2,997)          (2,059)          (6,452)
Income (loss)
before income  $ 8,457          $ (13,147)       $ 10,632         $ (29,469)
taxes
Income tax     (2,565)          (3,309)          (3,179)          (6,126)
expense
Net income     $ 5,892          $ (16,456)       $ 7,453          $ (35,595)
(loss)
Net income
(loss) per     $ 0.02           $ (0.06)         $ 0.03           $ (0.13)
share, diluted
Weighted
average        287,629          278,105          287,367          277,625
outstanding
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
                                    September28,    June 29,    September29,

                                    2013             2013        2012
GAAP operating income (loss)      $ 9,456          $ 3,235     $ (10,150)
Share-based compensation expense  10,436           9,433       9,546
Amortization of intangible assets 6,746            7,217       4,752
Restructuring and disposal costs
associated with the phase out of
                                  3,254            4,555       —
 manufacturing and sale of the
UK facility
Certain consulting costs          4,800            2,200       —
IPR litigation costs              1,902            824         2,775
Inventory revaluation resulting   —                —           2,436
from transfer of MBE operations
Other expenses (income)
(including restructuring,
acquisition-                      594              519         (114)

 related costs, (gain) loss on
PP&E, and start-up costs)
Non-GAAP operating income         37,188           27,983      9,245
GAAP net income (loss)            5,892            1,561       (16,456)
Share-based compensation expense  10,436           9,433       9,546
Amortization of intangible assets 6,746            7,217       4,752
Restructuring and disposal costs
associated with the phase out of
                                  3,254            4,555       —
 manufacturing and sale of the
UK facility
Certain consulting costs          4,800            2,200       —
IPR litigation costs              1,902            824         2,775
Inventory revaluation resulting   —                —           2,436
from transfer of MBE operations
Other expenses (income)
(including restructuring,
acquisition-                      594              519         (114)

 related costs, (gain) loss on
PP&E, and start-up costs)
Loss on retirement of convertible —                —           2,034
subordinated notes
Non-cash interest expense on      1,213            1,261       1,457
convertible subordinated notes
Income from equity investment     (116)            (98)        (10)
Tax adjustments                   (780)            (1,919)     1,406
Non-GAAP net income               $ 33,941         $ 25,553    $ 7,826
GAAP weighted average outstanding 287,629          287,105     278,105
diluted shares
Diluted share-based awards       —                —           3,218
Non-GAAP weighted average         287,629          287,105     281,323
outstanding diluted shares
Non-GAAP net income per share,    $ 0.12           $ 0.09      $ 0.03
diluted



RF MICRO DEVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except percentages)

(Unaudited)
                    Three Months Ended
                    September28, 2013     June29, 2013      September29,
                                                              2012
GAAP gross margin   $   104,656    33.7 %  $ 93,469   31.9 %  $ 66,535  31.7 %
Adjustment for
intangible          5,559          1.8  %  6,030      2.1  %  3,682     1.8  %
amortization
Adjustment for
share-based         1,357          0.4  %  1,242      0.4  %  1,201     0.6  %
compensation
Disposal costs
associated with the
phase out of
                    763            0.3  %  1,974      0.7  %  —         —    %
 manufacturing
and sale of the UK
facility
Inventory
revaluation
resulting from
transfer            —              —    %  —          —    %  2,436     1.1  %

 of MBE
operations
Non-GAAP gross      $   112,335    36.2 %  $ 102,715  35.1 %  $ 73,854  35.2 %
margin
                                                              Three Months
                                                              Ended
Non-GAAP Operating Income                                     September28,
                                                              2013
(as a percentage of sales)
GAAP operating income                                         3.0            %
Share-based compensation expense                              3.4
Amortization of intangible assets                             2.2
Restructuring and disposal costs associated with the phase
out of manufacturing and sale of the                          1.1

 UK facility
Certain consulting costs                                      1.5
IPR litigation costs                                          0.6
Other expenses (income) (including restructuring,
acquisition-related costs, (gain) loss on PP&E,               0.2

 and start-up costs)
Non-GAAP operating income                                     12.0           %



RF MICRO DEVICES, INC. AND SUBSIDIARIES

ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

(In thousands)

(Unaudited)
                               Three Months Ended
                               September28,         June29,    September29,

                               2013                  2013        2012
GAAP research and            $ 49,204              $ 48,325    $ 41,968
development expense
Less:
Share-based compensation     2,109                 2,046       1,569
expense
Other expense                92                    92          —
Non-GAAP research and        $ 47,003              $ 46,187    $ 40,399
development expense
                               Three Months Ended
                               September28, 2013    June29,    September29,
                                                     2013        2012
GAAP marketing and selling   $ 18,918              $ 19,409    $ 16,238
expense
Less:
Share-based compensation     1,556                 1,185       1,171
expense
Amortization of intangible   1,187                 1,187       1,070
assets
Non-GAAP marketing and       $ 16,175              $ 17,037    $ 13,997
selling expense
                               Three Months Ended
                               September28, 2013    June29,    September29,
                                                     2013        2012
GAAP general and             $ 24,062              $ 19,492    $ 18,593
administrative expense
Less:
Share-based compensation     5,391                 4,960       5,605
expense
Certain consulting costs     4,800                 2,200       —
IPR litigation costs         1,902                 824         2,775
Non-GAAP general and         $ 11,969              $ 11,508    $ 10,213
administrative expense



RF MICRO DEVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)
                                           September28, 2013  March30, 2013
ASSETS
Current assets:
Cash and cash equivalents                  $    101,489        $   101,662
Short-term investments                     47,999              77,987
Accounts receivable, net                   188,715             143,647
Inventories                                144,294             161,193
Other current assets                       41,686              31,748
Total current assets                       524,183             516,237
Property and equipment, net                196,590             191,526
Goodwill                                   103,901             104,846
Intangible assets, net                     79,893              93,197
Long-term investments                      4,494               4,281
Other non-current assets                   21,606              21,912
Total assets                               $    930,667        $   931,999
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities   $    171,726        $   179,228
Current portion of long term debt, net     84,580              —
Other current liabilities                  148                 6,486
Total current liabilities                  256,454             185,714
Long-term debt, net                        —                   82,035
Other long-term liabilities                23,339              25,236
Total liabilities                          279,793             292,985
Shareholders' equity                       650,874             639,014
Total liabilities and shareholders' equity $    930,667        $   931,999



SOURCE RF Micro Devices, Inc.

Website: http://www.rfmd.com
Contact: At RFMD(R), 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
 
Press spacebar to pause and continue. Press esc to stop.