From: compoundsemiconductor.net

RF Micro Devices is to cease development of transceivers for next-generation handsets and sell off its GPS solutions business, reducing its headcount by 350 employees.

The GaAs chip maker estimates that the move will save it $75 million annually, largely from the decision not to plow research resources into development for broadband wireless transmission protocols, like wideband CDMA, Long-Term Evolution (LTE) and WiMAX.

Although the move will cost $40 million-$50 million in restructuring charges, RFMD should begin to reap the full financial benefit of stopping research on transceiver components, which have typically been fabricated in CMOS and SiGe, by the end of 2008.

The Greensboro, North Carolina, company will now refocus those resources on its more profitable compound semiconductor RF components businesses.

"[Transceivers] hid the amounts of money we're making in other parts of the business," said Bob Bruggeworth, RFMD's CEO. "We said given the amount of money we’re spending on transceivers, we’d be better off spending that in other areas, where we’ve demonstrated we get better returns, without the uncertainty and risk."


RFMD will continue to sell transceivers, so the company expects minimal impact on its overall sales. Indeed, it still expects to see its Polaris 2 and Polaris 3 transceiver modules feature in handsets that are yet to hit the market.


However, the fast pace of development in wireless technology will likely mean that customers will stop buying RFMD's transceivers within three years. Development will continue for integrated front ends, with a focus on GaAs rather than transceivers, that could feature in future handsets.

For the GPS business, RFMD has already engaged with potential buyers for whom the technology would be a strategic fit, and is currently in negotiations over the transaction.

The company's shift in strategy came on the back of a $31.6 million loss in RFMD's closing quarter of fiscal year 2008, a figure that compared badly with the $21.4 million profit that it had posted in the same period last year.

But Bruggeworth anticipates that the latest move will bring about a much more profitable company. He described the decision to drop transceivers and GPS as "a very significant event that positions RFMD to deliver the largest increase in profitability in our company’s history".

Investment analyst John Lau, of Jefferies and Company, agreed with Bruggeworth's outlook, saying that the company should now be significantly more efficient.

"We believe this is one of the most fundamental shifts in product focus for RFMD and will lead to greater profitability going forward," he said.

Richard:

RFMD不在研发和生产收发机（Transceiver），比如著名的Polaris系列。号称要focus在利润率更高的GaAs等化合物半导体的射频前端领域。技术vs.市场，最近越来越感触这两者之间平衡的艺术。想到一个词：看上去很美。

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季度亏损 RFMD开始裁员并退出部分无线领域

由于出现季度亏损，芯片厂商RF Micro Devices Inc.(RFMD)正在削减部分无线领域中的全部产品开发支出，包括蜂窝收发器和GPS解决方案。此举将影响到大约350人的饭碗。RF Micro上月裁过一次员，现在计划把年度支出缩减大约7500万美元。该公司将继续向主要客户提供有关其目前一代Polaris收发器产品的支持。
RF Micro将在未来两个季度提列4000－5000万美元的重组费用。该公司表示，计划把投资集中在RF器件开发方面，包括蜂窝前端和其它手机部件。该公司公布上季营业收入为2.219亿美元，低于上年同期的2.573亿美元；亏损1650万美元，上年同期是获利3010万美元。
目前预计6月当季的营业收入为2.3-2.45亿美元，比上季增长4-10%。按公认会计原则(GAAP)计算，目前预计稀释后的每股净亏损为0.03-0.04美元，而且其中未计入任何重组费用。

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为在大地震中消逝的同胞们默哀。

中国，加油！