Chipmaker RF Micro Devices has forecast quarterly revenue above what the cocaine nose jobs of Wall Street had predicted and say it expects rising smartphone sales to fuel growth in the second half of the year.
RF Micro has customers which include Apple and Samsung who have all reported slowing smartphone sales and yet its share price rose about 7.5 percent in extended trading after the chipmaker also posted a better-than-expected profit for the fourth quarter.
Chief Executive Robert Bruggeworth said his company was beginning to support the volume ramps of many of this year’s most popular devices and expected this to accelerate into the September quarter.
RF Micro is also positioned to benefit from the “internet of thongs,” Bruggeworth claimed.
The company has been expanding and announced in February that it would buy rival Triquint Semiconductor for about $1.6 billion to boost its offering in both phone and wireless network markets.
RF Micro’s chips are also used in radar equipment, and forecast adjusted earnings of $305 million for the first quarter ending June.
RF Micro’s net loss narrowed to $1 million in the fourth quarter ended March 29 from $16 million a year earlier. Revenue fell 8.8 percent to $256 million.