Wednesday, January 26, 2011

RF Micro Devices (NASDAQ:RFMD) Crushed on Nokia (NYSE:NOK) Share Loss

Shares of RF Micro Devices (NASDAQ:RFMD) were getting hit hard today on increasing share loss at Nokia (NYSE:NOK).

Needham says, "A worse-than-seasonal (10%-15%) decline in the core business due to further share loss at Nokia (NYSE: NOK) is compounded by a $25MM Q/Q decline in the transceiver business. GM was guided flat to down 200bps due to lower utilization, lower 3G revenue and the ramp of PowerSmart. We are subsequently lowering our F4Q11 revenue and non-GAAP EPS to $220.0MM/$0.08 from $253MM/$0.15 and compared with the consensus of $259.3/$0.15.

"We will wait through the estimate-reset and until the ramp of PowerSmart lends increased visibility before turning more positive on shares."

Needham & Company maintains a 'Hold' rating on RF Micro Devices (RFMD), which was trading at $7.01, losing $0.65, or 8.55 percent, as of 2:45 PM EST.

1 comment:

Anonymous said...

This is really interesting because I don't see this in Nokia's financial reporting. I think SEC should start knocking at NOK's door.