RF Micro Devices (NASDAQ:RFMD) Faces Revenue Pressure from Nokia (NYSE:NOK)

While the short term looks profitable for RF Micro Devices (NASDAQ:RFMD), in 2012 they could face significant revenue pressure from Nokia (NYSE:NOK).

UBS says, "For F3Q, we expect RFMD to report strong results and outlook, driven by strength in the handset market, especially in China ahead of the Chinese new year. For F3Q, we now expect RFMD to report Rev/EPS (pf) of $295m/19c (cons $285m/18c). For F4Q, we are modelling Rev/EPS of $284m/17c, vs. cons of $258m/15c. While in near term RFMD is benefitting from strength in handset market, revenue headwinds from Nokia transition could limit upside in F2012.

"For F3Q, we raise our Rev/EPS (pf) to $295m/19c (cons $285m/18c), from $287m/18c. For F2011, we raise Rev/EPS to $1,138m/71c (cons $1,103m/68c) from $1,123m/69c & for F2012 to $1,172m/75c from $1,127m/69c."

UBS reiterates a "Neutral" rating on RF Micro Devices (RFMD), which closed Wednesday at $8.19, dropping $0.06, or 0.76 percent. UBS raised their price target on RF Micro Devices from $7 to $9.50.