UPDATE 1-RF Micro sees big capex reduction in CY09; shares soar
Jan 8 (Reuters) - Chipmaker RF Micro Devices Inc RFMD.O expects to significantly reduce its capital expenditure and said it continues to see an improvement in free cash flow in fiscal 2010, sending its shares up 35 percent.
Last month, the company, which has been trying to streamline its operations, announced measures to reduce costs, including a scale back in production and job cuts. For calendar 2009, the company expects capital expenditures to be about $20 million. Its capital expenditures had been $113 million through the 12 months ended September 2008.
Additionally, RF Micro reduced net debt by about $50 million during the December 2008 quarter, mainly through the generation of cash and open-market repurchases of convertible notes, it said in a statement.
RF Micro expects to be free cash flow positive in March 2009 quarter, and the company continues to expect free cash flow will improve in fiscal 2010 to about $80 million to $120 million.
Shares of RF Micro, which makes chips for mobile-phone companies like Nokia NOK1V.HE and Motorola MOT.N, were trading up 27 cents at $1.16 Thursday midday on Nasdaq. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Amitha Rajan)
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