Rocky Holding will be a powerhouse supplier of radio frequency components to both Apple AAPL and Samsung when it is born. Rocky Holding is the tentative name of a new company that will result from the merger of RF Micro Devices (RFMD) and TriQuint Semiconductor (TQNT). Both companies have approved the merger and a joint proxy statement on Form S4 has been filed with the SEC.
The trends are already positive for both companies. After the market close on Tuesday, RF Micro reported Q4 EPS of $0.12 vs. consensus of $0.09; revenues came at $256 million roughly in line with consensus. For Q1, the company projects EPS of $0.17 vs. consensus of $0.11; company projects revenue of $305 million vs. consensus of $277 million. This is a revenue grow of 19% sequentially.
Earlier this month TriQuint projected Q2 EPS of $0.06 to $0.08 vs. consensus of $0.04; the company projected revenues of $215 to $225 million vs. consensus of $200 million.
Both companies are major suppliers of RF components with some degree of complimentary products. RF Micro is big in power amplifiers and front-end modules. TriQuint is big in RF filters including bulk acoustic wave, surface acoustic wave and temperature compensated surface acoustic wave filters.
Rocky will have an advantage over the competitors in that it will be able to supply end-to-end solutions to both Apple and Samsung as well as other mobile device manufacturers. The new company will have an opportunity to provide $10 to $15 of components per smartphone…Read more at Forbes.
