RF Micro Devices Issues Quarterly Earnings Warning
RF Micro Devices, which makes analog chips used in mobile phones, said an expected slowdown in demand from a top-tier customer will hurt its operating results for the first quarter.
"There are certainly challenges in the near term as we navigate through product cycles both at RFMD and at our leading customers in the coming quarters," said CEO Bob Bruggeworth, in a prepared statement.
Shares fell in after-hours trading Wednesday, extended losses of 4% posted in the regular session.
In addition, the company said it expects a decline in second-quarter sales and earnings on a sequential basis.
However, the company backed its previously issued revenue and per-share earnings forecast for the fourth quarter.
RF Micro, which did not provide further details regarding the expected downturn in demand, counts Nokia and Motorola as its two largest customers, at 38% and 20% of fiscal 2006 sales, respectively, according to the company's annual report filed with the U.S. Securities and Exchange Commission.
Motorola cut first-quarter guidance on March 21, citing lower than anticipated sales and operating earnings at its mobile devices business.