RF Micro reduces net debt by $50 million with cash, convertible note repurchases

By Jennifer Lanning Drey

Portland, Ore., Jan. 8 - RF Micro Devices Inc. reduced net debt by $50 million in December, primarily through generation of cash and open-market repurchases of convertible notes, Dean Priddy, chief financial officer of RF Micro, said Thursday during a presentation at the Needham Growth Stock Conference in New York.

The company generated about $40 million of free cash flow in the December 2008 quarter, he said.

RF Micro is taking a conservative approach in its planning for 2009 with a focus on profitability and sustainable long-term cash flows, Bob Bruggeworth, chief executive officer of RF Micro, said during the presentation.

"December was a great quarter, and we expect fiscal year 2010 to be a great year in terms of cash flow for the company," Priddy said.

RF Micro expects free cash flow will improve in fiscal 2010 to about $80 million to $120 million. Fiscal 2010 begins on March 29 for the company.

During the presentation, Bruggeworth said the company is also looking to reduce capital expenditures, which have been heavy over the past 18 months.

The company expects capital expenditures will be about $20 million in calendar 2009, compared with $113 million through the 12 months ended Sept. 30, 2008.

RF Micro designs and manufactures high-performance radio systems and solutions for mobile communications. The company is based in Greensboro, N.C.

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