Rda Microelectronics Inc. (NASDAQ:RDA)

WEB NEWS

Thursday, May 8, 2014

Company Rebuttal

SHANGHAI, China, May 8, 2014 (GLOBE NEWSWIRE) -- RDA Microelectronics, Inc. (Nasdaq:RDA) ("RDA Microelectronics" or the "Company"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today responds to the public announcement made by Shanghai Pudong Science and Technology Investment Co., Ltd. ("PDSTI") and an open letter addressed to the Company's Board of Directors dated May 7, 2014 (collectively the "PDSTI Announcement and Letter"). The Company is issuing this announcement to clarify certain facts and correct certain misinformation contained in the PDSTI Announcement and Letter.

1.  During the competitive bidding process last year, the Company did not reach any agreement with PDSTI who did not provide the Company with any credible proof (e.g., bank commitment letter) for the Chinese bank financing guarantee claimed in the PDSTI Announcement and Letter or even PDSTI's own financial statements. The Company was and is not aware of any bank credit committee approval secured by PDSTI for such claimed bank financing guarantee.

2.  Multiple interested parties participated in last year's competitive bidding process. Among these parties, PDSTI's proposal was not only significantly less favorable than Tsinghua Unigroup Ltd.'s proposal in terms of price and other key commercial terms but also much less substantiated in terms of funding capability. The Company also notes that PDSTI has a track record of making non-binding acquisition proposals but to date has not completed any major overseas acquisition.

3.  The Company is required, and has always been open, to consider transactable superior proposals. PDSTI has not made any alternative proposal to the Company or provided further information about its financing capability since last year, and it had not contacted the Company for multiple months prior to issuing the PDSTI Announcement and Letter.

4.  The Company is a foreign private issuer under U.S. securities laws and it complies with all the mandatory reporting requirements including filing the annual report on Form 20-F and furnishing periodic reports on Form 6-K.

5.  The Company is committed to its priority on shareholder value and shareholder responsibility by focusing on its business, customers and employees. The Company's workforce has been stable and our employees have been working collaboratively and diligently to produce more than 10 new products over the past 6 months. In recent months, the Company has noted certain parties proliferating groundless rumors and engineering misleading media reports regarding the Company's employees and business conditions. The Company has found such subversive tactics regrettable and unethical. The Company is also disappointed that the PDSTI Announcement and Letter contains certain similar groundless and/or misleading statements.

The Company reconfirms its clarification and statements in its prior two announcements dated May 2 and 5, 2014, respectively. The Company and its Board of Directors hereby reiterate their commitments to protecting and maximizing shareholder interest. Completing the pending merger transaction with Tsinghua Unigroup Ltd. at $18.50 per share under the framework of the merger agreement may not be in the self interest of particular few shareholders, but the Company firmly believes that expeditiously completing such pending merger transaction (which was overwhelmingly approved by the Company's shareholders) remains in the best interest of the Company's shareholders on the whole.


Monday, May 5, 2014

Going Private News

SHANGHAI, China, May 5, 2014 (GLOBE NEWSWIRE) -- RDA Microelectronics, Inc. (Nasdaq:RDA) ("RDA Microelectronics" or the "Company"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today provides certain updates regarding the pending merger transaction (the "Transaction") with Tsinghua Unigroup Ltd. ("Tsinghua Unigroup").

The Board of Directors of the Company (the "Board") has been closely monitoring the closing process of the Transaction and carefully evaluating developments with the assistance of US and PRC legal counsel and other advisors. Further to the announcements made by the Company on May 2, 2014, which clarified certain aspects of status regarding the Transaction, the Company hereby provides the following additional updates:

  1. The Company has been and will continue working closely and actively with Tsinghua Unigroup to close the Transaction under the terms of the merger agreement entered in November 2013 by and between the Company and Tsinghua Unigroup (as amended, the "Merger Agreement"). 
  2. Tsinghua Unigroup has reiterated to the Company its commitment to completing the Transaction and is taking concrete actions to close the Transaction within the framework of the Merger Agreement.
  3. The Company reconfirms that it stands by its commitments and obligations under the Merger Agreement, and its intention to close the Transaction has not changed. The Company will continue to work with Tsinghua Unigroup to close the Transaction as soon as practicable, which the Board believes is in the best interests of the Company's shareholders as a whole.
  4. The Merger Agreement provides, among other items, a long-stop date spanning until at least August 8, 2014 for the parties to complete the Transaction. Tsinghua Unigroup and the Company currently expect the Transaction will be closed in the second half of this year.

Also, in view of the pending Transaction and the sensitive current interim period, the Company will not announce its financial results for the quarter ended March 31, 2014 by press release or hold a conference call to discuss such quarterly results.


Wednesday, April 16, 2014

Comments & Business Outlook

SHANGHAI, China, April 15, 2014 (GLOBE NEWSWIRE) -- RDA Microelectronics, Inc. (Nasdaq:RDA) ("RDA" or the "Company"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today announced sampling of its RDA5992 SoC solution integrating WiFi, Bluetooth and FM with a GPS receiver for mobile applications.

The RDA5992 single chip solution integrates an 802.11b/g/n MAC, PHY, 2.4Ghz radio, power amplifier and antenna switch with a GPS receiver featuring advanced RF design, a baseband signal processing engine and MIPS compatible XCPU processor to achieve superior positioning performance. The integrated WLAN, Bluetooth and FM capabilities can work simultaneously or independently at low power consumption levels to preserve battery life in mobile devices.

"By adding GPS functionality to our popular WiFi combo chip, RDA offers customers all of the necessary connectivity components on a single CMOS chip for handheld devices," said Shuran Wei, CEO of RDA Microelectronics. "GPS positioning and location-based services are becoming increasingly prevalent across all mobile applications. The 5992 is the smallest chip of its kind and further demonstrates the strength of RDA's integration capabilities. Manufacturers can quickly and easily integrate the chip into their designs to achieve rapid time to market at a reduced cost."


Friday, April 11, 2014

Comments & Business Outlook

SHANGHAI, China, April 10, 2014 (GLOBE NEWSWIRE) -- RDA Microelectronics, Inc. (Nasdaq:RDA) ("RDA" or the "Company"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today announced sampling of its RDA5992 SoC solution integrating WiFi, Bluetooth and FM with a GPS receiver for mobile applications.

The RDA5992 single chip solution integrates an 802.11b/g/n MAC, PHY, 2.4Ghz radio, power amplifier and antenna switch with a GPS receiver featuring advanced RF design, a baseband signal processing engine and MIPS-based RISC processor to achieve superior positioning performance. The integrated WLAN, Bluetooth and FM capabilities can work simultaneously or independently at low power consumption levels to preserve battery life in mobile devices.

"By adding GPS functionality to our popular WiFi combo chip, RDA offers customers all of the necessary connectivity components on a single CMOS chip for handheld devices," said Shuran Wei, CEO of RDA Microelectronics. "GPS positioning and location-based services are becoming increasingly prevalent across all mobile applications. The 5992 is the smallest chip of its kind and further demonstrates the strength of RDA's integration capabilities. Manufacturers can quickly and easily integrate the chip into their designs to achieve rapid time to market at a reduced c


Tuesday, April 8, 2014

Comments & Business Outlook

RDA MICROELECTRONICS, INC.

 

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

 

 

 

For the Year
Ended December 31,

 

 

 

2011

 

2012

 

2013

 

 

 

(Amounts in thousands of USD, except number of
shares and per share data)

 

Revenue

 

288,862

 

391,279

 

344,985

 

Cost of revenue

 

(189,116

)

(265,474

)

(235,547

)

 

 

 

 

 

 

 

 

Gross profit

 

99,746

 

125,805

 

109,438

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

(32,756

)

(54,598

)

(64,907

)

Selling, general and administrative

 

(14,074

)

(16,963

)

(15,809

)

 

 

(46,830

)

(71,561

)

(80,716

)

 

 

 

 

 

 

 

 

Income from operations

 

52,916

 

54,244

 

28,722

 

Interest income

 

1,925

 

3,573

 

2,725

 

Impairment on investment

 

 

(48

)

 

Merger related expense

 

 

 

(1,976

)

Other income / (expenses), net

 

1,460

 

(203

)

1,505

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

56,301

 

57,566

 

30,976

 

Income tax expense

 

(4,671

)

(4,662

)

(3,058

)

 

 

 

 

 

 

 

 

Net income and net income attributable to ordinary shareholders

 

51,630

 

52,904

 

27,918

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

Cumulative translation adjustments

 

441

 

71

 

676

 

 

 

 

 

 

 

 

 

Comprehensive income and comprehensive income attributable to ordinary shareholders

 

52,071

 

52,975

 

28,594

 

 

 

 

 

 

 

 

 

Earnings per ordinary share

 

 

 

 

 

 

 

Basic

 

0.20

 

0.20

 

0.10

 

Diluted

 

0.19

 

0.19

 

0.10

 

 

 

 

 

 

 

 

 

Weighted average ordinary shares used in per share calculation

 

 

 

 

 

 

 

Basic

 

262,542,760

 

270,811,925

 

279,027,473

 

Diluted

 

278,805,558

 

284,430,507

 

286,565,896

 

 

 

 

 

 

 

 

 

Share-based compensation was allocated in operating expenses as follows:

 

 

 

 

 

 

 

Research and development

 

2,053

 

1,532

 

1,675

 

Selling, general and administrative

 

1,828

 

1,679

 

1,690

 


Wednesday, April 2, 2014

Comments & Business Outlook

SHANGHAI, China, April 2, 2014 (GLOBE NEWSWIRE) -- RDA Microelectronics, Inc. (Nasdaq:RDA) ("RDA" or the "Company"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today announced volume production of its RDA5851S, a highly integrated multimedia system-on-chip solution with Bluetooth connectivity for music and audio applications such as speaker systems, MP3 players and stereo headsets.

The RDA5851S integrates a baseband, Bluetooth transceiver, power management unit, FM receiver, Class K audio amplifier, multimedia microcontroller and a proprietary digital signal processor (DSP) engine onto a single chip.  The FM tuner and Bluetooth module include complete digital, analog and RF functions. It supports all popular audio formats and provides for system scalability through easy connectivity to SDMMC memory cards, USB, LEDs and keypads. The high level of integration offers RDA customers a best-in-class bill of materials, space requirement and cost/feature ratio for targeted applications.

"The 5851S is a cost-down version of our 5850 Bluetooth SoC for non-handset applications, providing the same turnkey platform for customers at an improved price point," said Shuran Wei, CEO of RDA Microelectronics. "We remain focused on increasing our penetration of the non-handset market by leveraging our proven Bluetooth technology and integration capabilities for products based on price and performance."


Thursday, March 27, 2014

Comments & Business Outlook

SHANGHAI, China, March 27, 2014 (GLOBE NEWSWIRE) -- RDA Microelectronics, Inc. (Nasdaq:RDA) ("RDA" or the "Company"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today announced the launch of its RDA8860 WCDMA/EDGE/GSM baseband SoC for the low-cost smartphone market.

The RDA8860 integrates an RF transceiver, WCDMA modem, EDGE modem, application processor, power management unit, analog baseband, and 32kHz oscillator onto a single 40 nanometer die, significantly reducing the customer bill of materials. Built around a 1GHz ARM � Cortex �-A5 processor with a 256KB L2 cache, the chip uses 400MHz 32-bit LPDDR2 memory, which supplies 3.2GB bandwidth to create a powerful platform for low-cost mobile devices. It supports WiFi, Bluetooth, and GPS connections through various peripheral interfaces and leverages a dedicated CPU, accelerator and memory for the WCDMA/EDGE modem sub-system to further improve performance of the application processor. The chip's video processor supports 720p H.264 video playback at 30 frames per second combined with Vivante Corporation's integrated 3D GPU for high-end graphic interface and gaming capabilities. The RDA8850 is designed for smartphone devices running on Android 4.0 operating system and above.

"We are pleased to launch our first WCDMA baseband solution, a fully integrated SoC that greatly increases our addressable market as well as our handset silicon value," commented Shuran Wei, CEO of RDA Microelectronics. "Low-cost WCDMA smartphones are one of the largest growth drivers in emerging markets today as subscribers in markets such as China continue to transition from feature phones to more advanced devices. The 8860 uses similar production tools as our market-leading feature phone platform, enabling handset manufacturers to easily and quickly migrate to our WCDMA smartphone platform. By offering a fully integrated SoC solution with lowered bill of materials, RDA has once again positioned itself as a price performance leader in a robust growth market.


Friday, December 20, 2013

Going Private News

BEIJING and SHANGHAI, China, Dec. 20, 2013 (GLOBE NEWSWIRE) -- Tsinghua Unigroup Ltd. ("Tsinghua Unigroup"), an operating subsidiary of Tsinghua Holdings Co., Ltd. ("Tsinghua Holdings"), a solely State-owned limited liability corporation funded by Tsinghua University in China, and RDA Microelectronics, Inc. (Nasdaq:RDA) ("RDA"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today jointly announced that the parties have entered into an amendment to the merger agreement dated November 11, 2013 in light of the latest relaxation of certain PRC regulatory approval requirements for overseas investments that are relevant to the announced merger between Tsinghua Unigroup and RDA (the "Merger").

On December 2, 2013, the State Council of the Central Government of China promulgated a new 2013 Government-Approved Investment Projects Catalog (the "New Catalog"), which replaced the 2004 Government-Approved Investment Projects Catalog. Pursuant to Article 13 of the New Catalog, if no sensitive country/region or sensitive industry is concerned, overseas investment projects involving an investment amount between US$300 million and US$1 billion no longer require approval from the National Development and Reform Commission (the "NDRC"), but instead are only required to complete the registration with the NDRC. The NDRC is currently in the process of preparing the relevant implementation rules.

"We and RDA amended the merger agreement to reflect the relaxation of regulatory requirements under the New Catalog. We are continuing to collaborate with the relevant parties to close the Merger smoothly," said Mr. Zhao Weiguo, Chairman and President of Tsinghua Unigroup.  

Steven Tang, Chairman of RDA, said "We are pleased to see the positive de-regulation trend in China under the current administration. RDA's Board of Directors supports and reiterates its recommendation for the shareholders to approve the Merger with Tsinghua Unigroup at the upcoming shareholders meeting on December 27, 2013."


Wednesday, December 4, 2013

Company Rebuttal

SHANGHAI, China, Dec. 4, 2013 (GLOBE NEWSWIRE) -- RDA Microelectronics (Nasdaq:RDA) ("we" or the "Company"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today provided the following comments regarding certain recent media reports:

It has come to our attention that there are certain media reports containing inaccurate information on our announced merger transaction (the "Merger") with Tsinghua Unigroup Ltd. ("Tsinghua Unigroup") which may be misleading to investors. We are providing the following clarifications in view of potential misinformation, and to re-assure the investors that our board of directors (the "Board") has been acting, and will continue to act, in the best interests of our shareholders as a whole:

  1. Before we entered into a definitive merger agreement (the "Merger Agreement") with Tsinghua Unigroup on November 11, 2013, the Board conducted a robust, comprehensive and structured evaluation process of strategic alternatives. The Board considered a wide range of relevant factors, analysis and data points available, with a focus on the commercial terms and closing certainty of various available alternative. After such process, the Board determined that Tsinghua Unigroup's proposal was clearly the most favorable and certain offer among all the proposals that we had received and therefore selected Tsinghua Unigroup as the preferred buyer over other bidders, including Shanghai Pudong Science and Technology Investment Co., Ltd. ("PDSTI"), on November 8, 2013. The Board further approved unanimously the entry into the Merger Agreement with Tsinghua Unigroup on November 11, 2013.
     
  2. During the evaluation process, the Board informed all interested buyers that the Board would select the preferred buyer based on the commercial terms and the closing certainty of the received proposals. Until the Board approved the signing of the Merger Agreement with Tsinghua Unigroup, we had not entered into any definitive agreement with, or promised any signing schedule to, any person (including PDSTI) regarding a sale of the Company.   
     
  3. We have been maintaining close discussions with Tsinghua Unigroup regarding the regulatory approvals required to complete the Merger, and have provided Tsinghua Unigroup with assistance and information in such regard in compliance with the Merger Agreement. We and Tsinghua Unigroup will continue to cooperate with each other in obtaining the relevant approvals that are required for the consummation of the Merger. We also understand from Tsinghua Unigroup that it is on track to obtain the preclearance of the Merger from the National Development and Reform Commission of China.

Tuesday, November 12, 2013

Comments & Business Outlook

Third Quarter 2013 Financial Results

  • Revenue was $85.1 million, representing a decrease of 22.8% from the $110.3 million in the second quarter and 22.1% from the $109.3 million in the third quarter of 2012.
  • Non-GAAP net income was $12.2 million, or $0.25 per diluted ADS, compared to $16.9 million, or $0.35 per diluted ADS, in the previous quarter and $16.7 million, or $0.35 per diluted ADS, in the third quarter of 2012.

Commenting on the Company's third quarter financial results, Vincent Tai, chairman and CEO of RDA Microelectronics, said, "Third quarter revenue declined greater than expected due to adverse currency impacts from several emerging markets, including India, which has driven up the cost of imports and reduced orders from customers who typically export to these markets. While the decline in revenue was disappointing, we do not believe it reflects a reduction in demand for feature phones in these countries, where affordability and limited discretionary spending remain key factors.

"Even when considering the revenue decline in the quarter, we were notably able to improve our gross margin sequentially and still generate solid profits and cash flow. This accomplishment clearly highlights the benefit of our low-cost business model and efficient operations. In order to better position RDA against future currency issues, we have accelerated our plans to establish a direct sales channel with Indian domestic handset manufacturers and now have a sales team in place who are quickly penetrating the top brands.

"Also during the quarter, we taped-out our first WCDMA baseband solution, which we expect to begin sampling in the first half of 2014, and continue to make progress on our more advanced WCDMA, TD and LTE solutions to further expand our penetration of the growing 3G market in China."


Monday, November 11, 2013

Going Private News

SHANGHAI, China, Nov. 11, 2013 (GLOBE NEWSWIRE) -- Tsinghua Unigroup Ltd. ("Tsinghua Unigroup"), an operating subsidiary of Tsinghua Holdings Co., Ltd., a solely state-owned limited liability corporation funded by Tsinghua University in China, and RDA Microelectronics, Inc. (Nasdaq:RDA) ("RDA" or the "Company"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today jointly announced that they have entered into a definitive merger agreement under which Tsinghua Unigroup will acquire all of the outstanding ordinary shares of RDA for US$18.50 per American Depositary Share (or US$3.0833 per ordinary share, each American Depositary Share representing six ordinary shares). The merger values RDA's equity at approximately US$910 million, on a fully diluted basis. The purchase price represents a premium of approximately 33.3% over the closing price of RDA's American Depositary Shares on September 26, 2013, the last trading day prior to the announcement by RDA of the receipt of a preliminary non-binding proposal letter to acquire RDA from a third party.

The transaction is subject to approval by the shareholders of RDA, and antitrust and other regulatory approvals, and is not subject to any financing condition. The transaction is expected to close in the first half of 2014.

The Company's Board of Directors unanimously approved the merger agreement and recommends that the Company's shareholders vote to approve the merger agreement. RDA expects to hold a special meeting of its shareholders to consider and act upon the proposed transaction as promptly as practicable. Details regarding the record date for, and the date, time and place of, the special meeting will be included in a press release when finalized.

"We are very excited to be adding RDA to the Tsinghua Unigroup family of companies," commented Mr. Zhao Weiguo, Chairman and President of Tsinghua Unigroup. "RDA will complement our existing portfolio in consumer products, protection and support and will benefit from our vast IP library and unique access to important capital markets in China."

"We are delighted to join as a partner with Tsinghua Unigroup," said Mr. Vincent Tai, RDA's co-founder and its Chairman and Chief Executive Officer. "We believe that Tsinghua Unigroup's reach and importance in the market will serve as a further catalyst to accelerate the growth of our business." Mr. Tai continued, "We also believe the merger offers an extremely attractive exit for the Company's shareholders."

Kilometre Capital acted as strategic consultant advising RDA. Morgan Stanley Asia Limited rendered a fairness opinion to the Board of Directors. Wilson Sonsini Goodrich & Rosati, P.C. and Skadden, Arps, Slate, Meagher & Flom LLP are legal advisors to RDA. Morrison & Foerster LLP is serving as legal advisor to Tsinghua Unigroup.

RDA will furnish to the Securities and Exchange Commission (the "SEC") a Report on Form 6-K regarding the transaction, which will include the merger agreement. All parties desiring details regarding the transaction are urged to review these documents, which will be available at the SEC's website (http://www.sec.gov).

This announcement is neither a solicitation of proxies, an offer to purchase nor a solicitation of an offer to sell any securities and it is not a substitute for any proxy statement or other proxy materials that may be filed or furnished with the SEC with respect to the proposed merger.


Company Rebuttal

SHANGHAI, China, Nov. 11, 2013 (GLOBE NEWSWIRE) -- RDA Microelectronics, Inc. (Nasdaq:RDA) ("RDA" or the "Company"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today provided the following comments regarding certain media reports in China:

It has come to our attention that there is a purported third party offer on the date we announced the signing of the merger agreement between RDA and Tsinghua Unigroup.  RDA is providing the following clarifications in view of potential misinformation, and to assure the investors that our Board has been acting, and will continue to act, in the best interests of our shareholders:

1.  Over the course of past several weeks, the RDA Board of Directors has conducted a robust, comprehensive and structured evaluation process of strategic alternatives.  During such process, the RDA board has considered a wide range of relevant factors, analysis and data points available before recommending and executing a definitive merger agreement with Tsinghua Unigroup as the most favorable and credible offerer.

2.  During the course of today's board meeting approving the entry of the merger agreement with Tsinghua, some of our directors and officers received an unusual and erroneously dated non-binding proposal.  Such proposal was sent from a private QQ email account alleging to be from a PRC-incorporated 3rd party (the "PRC Party"). This PRC Party has never previously contacted our company before or during the evaluation process, nor has it engaged in a semiconductor business to our knowledge.  Such proposal, strangely dated as of September 27, 2013 initially, stated a higher-than-US$18.50/ADS cash offer subject to unspecified combination of equity and debt financing.  The proposal was signed but not sealed by the PRC Party, which suggests a deficiency in the formality of due execution by a PRC incorporated entity. 

3.  Our Board immediately instructed our advisors to reach out to the PRC Party, with the objective of seeking further information and verifying the intent and credibility of such party.  The proposal from the PRC Party also refers to a highly confident letter that the PRC Party claimed it has obtained from several leading financial institutions. Our legal advisor promptly spoke with the sender of such proposal, who claimed he did not know anything about the proposal other than being instructed to send the proposal via his personal QQ email account. The sender also referred our legal advisor to the PRC Party's in-house counsel.  Our legal advisor then spoke with such in-house counsel, who was not able to provide contact information of any of their project team members, including the signatory of the proposal letter.  Given that we were not able to obtain any credible information about the financial capability of the PRC Party, we have also conducted a public search which indicated that the PRC Party was incorporated in 2011 with a registered capital of RMB60 million (less than US$10 million).

4.  Our Board has determined that based on the currently available information, we have no basis to believe that the unusual proposal from the PRC Party is credible.  

5.  After thorough review and formal evaluation, our Board has approved the definitive merger agreement with Tsinghua Unigroup.  We would nevertheless point out that under the signed merger agreement with Tsinghua Unigroup, RDA may still respond to a bona fide, unsolicited written proposal if our Board determines such proposal is reasonably expected to lead to a superior proposal.  


Thursday, November 7, 2013

Going Private News

SHANGHAI, China, Nov. 7, 2013 (GLOBE NEWSWIRE) -- RDA Microelectronics, Inc. (Nasdaq:RDA) ("RDA Microelectronics" or the "Company"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today announced that its Board of Directors (the "Board") received a preliminary, non-binding proposal letter (the "Unigroup Proposal") from Tsinghua Unigroup Ltd. ("Unigroup"), an operating subsidiary of Tsinghua Holdings Co. Ltd., a solely state-owned limited liability corporation funded by Tsinghua University in China, pursuant to which Unigroup proposes to acquire the Company for US$18.00 in cash per American Depositary Share of the Company (the "ADSs," each ADS representing six ordinary shares of the Company). A copy of the proposal letter is attached hereto as Appendix 1.

At the time of its delivery of the Unigroup Proposal to the Board on October 25, 2103, Unigroup requested the Board to refrain from disclosing the Unigroup Proposal to the public during a 21-day period and indicated to the Board that Unigroup may retract the Unigroup Proposal if the proposal was disclosed. On November 7, 2013, Unigroup notified the Board that it withdrew its requirement for confidential treatment of the Unigroup Proposal. 

The Board is continuing its review and evaluation of the Unigroup Proposal and the previously disclosed acquisition proposal from Shanghai Pudong Science and Technology Investment Co., Ltd. No decision has been made with respect to the Company's response to either proposal or other potential strategic alternatives. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to either proposal or any other transaction, except as required under applicable law.  


Thursday, October 17, 2013

Comments & Business Outlook

SHANGHAI, China, Oct. 17, 2013 (GLOBE NEWSWIRE) -- RDA Microelectronics (Nasdaq:RDA) ("RDA Microelectronics" or the "Company"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today announced preliminary unaudited third quarter 2013 revenue.

For the third quarter ended September 30, 2013, the Company currently estimates that its revenue would be in the range of $84 million to $85 million, which is lower than the bottom range of its previous guidance of $105 million to $115 million. The Company's revenue was adversely affected by currency volatility in certain emerging markets, including India, in the third quarter ended September 30, 2013, which led to a reduction in orders from customers who typically export to these emerging markets. The Company still expects gross margin for the quarter to be approximately 32.6%, consistent with its previous guidance.

The Company plans to announce its third quarter 2013 earnings results before mid-November, at which time management will discuss the Company's financials in more detail.


Friday, September 27, 2013

Going Private News

SHANGHAI, China, Sept. 27, 2013 (GLOBE NEWSWIRE) -- RDA Microelectronics, Inc. (Nasdaq:RDA) ("RDA Microelectronics" or the "Company"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today announced that its Board of Directors has received an unsolicited, preliminary non-binding proposal letter dated September 27, 2013 from Shanghai Pudong Science and Technology Investment Co., Ltd. ("PDSTI"), a wholly state-owned limited liability company directly under Pudong New Area government of Shanghai, pursuant to which PDSTI proposes to acquire all of the outstanding ordinary shares of the Company (the "Shares) and American Depositary Shares of the Company (the "ADSs," each ADS representing six Shares), in each case other than those Shares or ADSs owned by PDSTI and its affiliates, for US$2.5833 in cash per Share or US$15.50 per ADS. A copy of the proposal letter is attached hereto as Appendix 1.

The Company's Board of Directors is reviewing and evaluating PDSTI's proposal. No decision has been made with respect to the Company's response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.


Tuesday, August 6, 2013

Comments & Business Outlook

Second Quarter 2013 Results

  • Revenue was $110.3 million, within the Company's guidance of $109 million to $111 million, and representing an increase of 13.5% from the $97.1 million in the first quarter and 16.9% from the $94.4 million in the second quarter of 2012.
  • Non-GAAP net income was $16.9 million, or $0.35 per diluted ADS, compared to $13.7 million, or $0.28 per diluted ADS, in the previous quarter and $15.2 million, or $0.32 per diluted ADS, in the second quarter of 2012.

In regards to the Company's second quarter financial results, Vincent Tai, chairman and CEO of RDA Microelectronics commented, "Second quarter revenue increased 17% over the prior year quarter as a result of increased sales of our baseband products as well as higher volumes of our WiFi combo chip. We are pleased with our continued progress to penetrate the ultra-low cost feature phone market with our highly integrated 2G baseband solution. The 8851, which represents the large majority of our shipments, continues to be well-received by customers as we increase our silicon content and addressable market.

"To further expand our future growth opportunities, we have sampled our 8810 EDGE baseband solution for low-cost smartphones. In addition to the rapid growth of smartphones in China, this product is well suited for emerging markets where EDGE is the predominate network for low-cost smartphones. We remain on track to reach volume shipments of our smartphone baseband in the fourth quarter of this year.

"In addition to the smartphone market, we began sampling our 8811 EDGE product specifically designed to address significant opportunities in the tablet market. Similar to its sister product, RDA8811 is a highly integrated solution that incorporates an ARM® Cortex®-A5 application processor with the EDGE modem on a single chip, which provides significant competitive advantages. RDA is once again offering the highest level of product integration available in the market. We also recently launched our second generation WiFi combo chip, which integrates WiFi 802.11n, Bluetooth and FM on a single die for both smartphone and tablet applications.

"These recent product introductions serve as good examples of RDA's ability to leverage our advanced R&D capabilities and broad range of IP to efficiently develop products and aggressively penetrate large and growing markets. We also remain on track to begin sampling our WCDMA baseband by year-end and continue to make further progress on our TD-SCDMA and LTE solutions."

Commenting on the dividend declaration, Mr. Tai concluded, "We are also pleased to announce a recurring quarterly dividend for RDA shareholders. This decision reflects our confidence in the Company's business model and sustainable free cash flow to not only support our growth initiatives, but also return capital to our investors on a regular basis."


Wednesday, May 15, 2013

Contract Awards

SHANGHAI, China, May 15, 2013 (GLOBE NEWSWIRE) -- RDA Microelectronics, Inc. (Nasdaq:RDA) (the "Company"), a fabless semiconductor company that designs, develops and markets wireless systems-on-chip and radio-frequency (RF) semiconductors for cellular, connectivity and broadcast applications, today announced that Samsung has selected the RDASW36 switch for two Samsung models, the 2G Samsung Galaxy Star smartphone and the 3G Samsung Galaxy Pocket Neo smartphone. Both smartphones are expected to be released in the second quarter of 2013 and will be sold in Europe and emerging markets, such as South America.

Developed on Silicon-On-Insulator (SOI) CMOS process technology, RDA's single pole three throw (SP3T) switch combines high power with low insertion loss on a small form factor, making it ideally suited for WiFi and Bluetooth applications in 2G and 3G handsets.

"We are very pleased to secure these additional smartphone design wins with Samsung for our SP3T high power switch, expanding upon the success we achieved with these products in previous Samsung 2G handsets," commented Vincent Tai, chairman and CEO of RDA Microelectronics. "This achievement is another example to RDA's commitment of growing our global smartphone market share in developed regions, such as Europe, as well as emerging markets. Samsung is a valued partner and customer, and we look forward to further expanding our relationship and content through exceptional customer service and product support."


Tuesday, May 7, 2013

Comments & Business Outlook

First Quarter 2013 Financial Results:

  • Revenue was $97.1 million, exceeding the Company's guidance of $96 million to $97 million, and representing an increase of 34.9% from the $72.0 million in the first quarter of 2012.
  • Gross margin was 32.1%, compared to 31.7% in the previous quarter and 35.9% in the first quarter of 2012.
  • GAAP net income was $10.7 million, or $0.22 per diluted ADS, compared to $13.4 million, or $0.28 per diluted ADS, in the previous quarter and $13.9 million, or $0.30 per diluted ADS, in the first quarter of 2012.
  • Non-GAAP net income was $13.7 million, or $0.28 per diluted ADS, compared to $16.4 million, or $0.34 per diluted ADS, in the previous quarter and $15.1 million, or $0.33 per diluted ADS, in the first quarter of 2012.

For a reconciliation of non-GAAP financial measures, please refer to the tables included in this press release.

"First quarter revenue increased 35% year-over-year as a result of strong baseband shipments and increasing volumes of our WiFi combo chip for low-cost smartphones," said Vincent Tai, chairman and CEO of RDA Microelectronics. "Our 8851 baseband, the most integrated and advanced SoC for the high volume GSM handset market, reached record shipment levels in March enabling us to strengthen our position as the second leading supplier to China handset manufacturers. We also further expanded our penetration of the smartphone market with increasing shipments of our WiFi combo solutions and TD-SCDMA PA products as market demand improved following the Chinese New Year holiday.

"To further expand our smartphone silicon content, we began sampling our RDA8810 EDGE baseband product. This product integrates an ARM Cortex-A5 processor, dedicated modem processor, RF transceiver and power management unit in a single 40nm CMOS die. Our competitors require multiple dies and multiple chips to provide equivalent functions. In addition to superior integration, the 8810 uses more advanced memory interfaces and handles 1080p video playback at 30 frames per second. These powerful features enable the highest performance at the lowest cost, which is ideally suited for low-cost smartphone market as well as the rapidly growing tablet market. We also launched sampling of the RDA6861, our first multimode front-end module for GSM/EDGE and WCDMA/CDMA/LTE handsets.

"The rapid adoption of our baseband and smartphone products is proof of our ability to capture share of large and growing markets with our advanced integration capabilities, technical expertise and strong customer relationships. I believe we will be able to replicate this success in the smartphone market with our EDGE and multimode products as well as our future WCDMA and LTE offerings. Our aggressive product roadmap and consistent execution have positioned the Company to further extend our successful market share strategy and expand into other high volume and high ASP markets to drive growth."

Second Quarter 2013 Business Outlook:

For the second quarter of 2013, the Company expects revenue to be in the range of $109 million to $111 million, an increase of 12.2% to 14.3% sequentially and an increase of 15.5% to 17.6% year-over-year. The Company expects gross margins to be approximately 32.3%.


Tuesday, November 6, 2012

Comments & Business Outlook

Third Quarter 2012 Results

  • Revenue was $109.3 million, increasing 15.8% from the $94.4 million in the previous quarter and 30.2% from the $83.9 million in the third quarter of 2011.
  • Gross margin was 31.1%, compared to 31.0% in the previous quarter and 34.9% in the third quarter of 2011.
  • GAAP net income was $13.5 million, or $0.28 per diluted ADS, compared to $12.2 million, or $0.25 per diluted ADS, in the second quarter of 2012 and $15.7 million, or $0.34 per diluted ADS, in the third quarter of 2011.
  • Non-GAAP net income was $16.7 million, or $0.35 per diluted ADS, compared to $15.2 million, or $0.32 per diluted ADS, in the previous quarter and $16.8 million, or $0.36 per diluted ADS, in the third quarter of 2011.
  • The Company declared a special one-time cash dividend of US$0.20 per ordinary share, or US$1.20 per American depositary share ("ADS") for a total amount of US$55.9 million.

Commenting on the results, Vincent Tai, chairman and CEO of RDA Microelectronics, said, "Revenue grew 16% sequentially as a result of increased customer demand for our baseband products and WiFi combo chips. Baseband shipments continued to ramp quickly throughout the quarter. Shipment volumes exceeded 10 million units per month beginning in August due to strong adoption in the high volume GSM feature phone market. Our newly launched RDA8851, the most integrated and cost-effective 2G baseband available, reached 1 million units shipped in the third quarter. Due to rapidly growing demand for this product, we expect unit volumes to continue ramping as we capture additional market share. The RDA8851 is ideally suited for ultra-low cost handsets where growth rates are the highest in the 2G market, in particular for emerging markets outside of China. We are very pleased with our initial success at expanding our baseband customer base and expect to begin shipping to additional local Tier-one brands in China and the emerging markets in the fourth quarter.

"We are also increasing our participation in the fast growing smartphone market to expand RDA's addressable market opportunities. During the quarter, our WiFi combo chips surpassed 1 million units shipped per month, and our current design win activity supports further volume growth. We are building on this base with new product development efforts to further expand our penetration of the smartphone market, including our highly anticipated 2.75G EDGE smartphone baseband product, which will be launched in early 2013. We are also securing design wins for our 3G PA solutions, while devoting resources for further development of multi-mode multi-band PAs, standalone and integrated GPS solutions and more advanced baseband chips for 3G handsets.

"Our strong financial results reflect our continued commitment to gaining market share in the 2G market and expanding our penetration of the low-cost smartphone market while investing aggressively in the development of highly integrated products for 3G and 4G."

Fourth Quarter 2012 Business Outlook:

For the fourth quarter of 2012, the Company expects revenue to be in the range of $100 million to $110 million, an increase of 21.4% to 33.6% year-over-year. The Company expects gross margins to be in the range of 31.1% to 32.1%.


Friday, September 14, 2012

Special Dividend

SHANGHAI, China, Sept. 13, 2012 (GLOBE NEWSWIRE) -- RDA Microelectronics (Nasdaq:RDA) ("RDA Microelectronics" or the "Company"), a fabless semiconductor company that designs, develops and markets Radio Frequency (RF) and mixed-signal wireless SoC semiconductors for cellular, connectivity and broadcast applications, today announced that its Board of Directors declared a special one-time cash dividend of US$0.20 per ordinary share, or US$1.20 per American depositary share ("ADS"), each representing six ordinary shares of the Company. The cash dividend will be payable on October 18, 2012 to shareholders of record at the close of business on October 1, 2012. Dividends to be paid to the Company's ADS holders through the depositary bank will be subject to the terms of the deposit agreement, including the fees and expenses payable thereunder.

The board of directors authorized and approved the Company's payment of this special one-time, cash dividend in the aggregate amount of approximately US$57 million. As of June 30, 2012, the Company had a total of approximately US$159.0 million in cash, cash equivalents and short-term investments.

Vincent Tai, chairman and CEO of RDA Microelectronics, commented, "We are pleased to announce this special one-time dividend as a result of our strong balance sheet and exceptional financial performance over the past several years. In 2011, we grew our revenue by 51% and generated over US$63 million in cash flow from operations, which we have extended into the first half of 2012 by generating approximately US$39 million in operating cash flow. We have invested US$36 million in cash in total for the baseband technology from Coolsand and digital TV SoC IP from Trident. We believe we have acquired all of the key know-how to support the Company's growth in the next three to five years. Our ability to rapidly grow our business and generate consistent cash flow has provided us the resources to bring a return of capital to our shareholders without impacting our investment in R&D and pursuit of strategic growth opportunities. This special dividend is the first in our Company's history and underscores our commitment to delivering value to our shareholders."


Thursday, May 3, 2012

Comments & Business Outlook

First Quarter 2012 Results

  • Revenue was $72.0 million, exceeding the Company's guidance of $69 million to $71 million, and representing an increase of 30.5% from the $55.2 million in the first quarter 2011 and a decrease of 12.6% from the $82.4 million in the fourth quarter of 2011.
  • Gross margin of 35.9% was at the high end of the Company's guidance, compared to 35.3% in the previous quarter and 33.3% in the first quarter of 2011.
  • Operating margin was 20.0%, an increase from 15.0% in the first quarter of 2011 and comparable to the previous quarter.
  • GAAP net income was $13.9 million, or $0.30 per diluted ADS, compared to $7.6 million, or $0.16 per diluted ADS, in the first quarter of 2011 and $16.6 million, or $0.37 per diluted ADS, in the previous quarter.
  • Non-GAAP net income was $15.1 million, or $0.33 per diluted ADS, compared to $8.5 million, or $0.18 per diluted ADS, in the first quarter of 2011 and $17.4 million, or $0.39 per diluted ADS, in the previous quarter.

Commenting on the results, Vincent Tai, chairman and CEO of RDA Microelectronics, said, "During the first quarter, we continued to achieve strong results as revenue and profit increased significantly over the prior year comparable period. Our efficient operating model continued to produce solid margin performance and strong cash flow generation. First quarter revenue exceeded our guidance as demand strengthened after the Chinese New Year holiday. Increased shipment volumes of our Bluetooth and Power Amplifier products offset price declines experienced during the quarter. Additionally, our aggressive cost-down efforts for these products allowed us to meet our operating performance targets and maintain our market share leadership position. We were also pleased to reach a significant milestone for the Company in which cumulative IC shipments exceeded 2 billion units.

"Also notable in the quarter, we announced our acquisition of Coolsand's baseband IP, which significantly expands our total addressable market. We have completed the integration and hired the necessary personnel to support our future development work and ramping volume shipments. Initial customer demand for our 55nm integrated baseband product is very strong, and we are tracking well to our roadmap for future product introductions. RDA is solidly positioned for further market share gains in the global 2G marketplace with both our RF and baseband products, especially in the emerging markets outside of China. We have also taken steps to increase our presence in 3G with the introduction of new high performance products for the WCDMA and TD-SCDMA markets. Our second quarter growth will be driven by expanding volumes of our baseband product. Additionally, our products targeted at the smartphone market, such as the WiFi, Bluetooth and FM three-in-one combo chip, are on track with design-ins with our customers, and we expect to generate revenue from our WiFi combo chip in the second quarter, ahead of our original schedule. We remain focused on gaining meaningful share of the low cost smartphone market in China as the transition from feature phone to smart phone accelerates."

Second Quarter 2012 Business Outlook:

For the second quarter of 2012, the Company expects revenue to be in the range of $94 million to $100 million, an increase of 40% to 48% year-over-year and 31% to 39% sequentially, reflecting the addition of baseband revenue. The Company expects gross margins to be in the range of 30.5% to 30.9% as a result of the consolidation of the lower margin baseband revenue from the Coolsand acquisition. The Company expects to expand gross margin toward the 35% corporate target in the coming quarters through cost-down efforts for its baseband products as well as increased shipments of higher margin products.


Tuesday, March 27, 2012

Acquisition Activity

SHANGHAI, China, March 26, 2012 (GLOBE NEWSWIRE) -- RDA Microelectronics (Nasdaq:RDA) ("RDA"), a fabless semiconductor company that designs, develops and markets Radio Frequency (RF) and mixed-signal semiconductors for cellular, connectivity and broadcast applications, today announced that it has acquired all of the baseband intellectual property of Coolsand Holding Co., Ltd., a privately held baseband company with business operations in China, and its subsidiaries ("Coolsand"). The consideration paid is $46 million, comprised of approximately $20 million in cash and 15 million RDA ordinary shares. The market value of the shares totals approximately $26 million as determined by the March 21, 2012 NASDAQ closing price of RDA's American Depositary Shares, each representing six ordinary shares.  

The asset purchase provides significant strategic benefits to RDA's business, including:

  • Expanding its product offerings to provide a comprehensive portfolio of integrated and standalone solutions for China handset manufacturers;
  • Increasing silicon content per handset significantly;
  • Extending its total addressable market (TAM) to include the worldwide baseband market;
  • Diversifying and expanding its long-term revenue growth prospects; and
  • Increasing its customer leverage and market share expansion opportunities.

Commenting on the purchase, Vincent Tai, chairman and CEO of RDA Microelectronics, stated, "We are now able to provide competitive baseband products alongside our comprehensive RF and mixed-signal offerings for the handset market. The addition of baseband products expands our total addressable market and silicon content per handset, simplifies the supply chain for our customers, and opens the way for further market share gains. Baseband is a large and growing market and potentially represents a significant revenue opportunity for RDA. We believe we are in a good position to be a strong competitor in this market and take share as a result of our strong product roadmap.

"Our collaboration with Coolsand over the past two years has yielded valuable knowledge in development, sales, marketing and support for baseband products. We have established a strong working relationship, which we believe will reduce integration risk and ultimately contribute to the reception and success of our products in the marketplace. Our co-developed baseband product is the most integrated 2G baseband available in its category with superior hardware integration and best-in-class architecture. Development work is currently in process for our next generation baseband products, including WCDMA and TD-SCDMA products. We expect to hire approximately 45 of Coolsand's employees, most of which are engineers. Coolsand baseband products have been gaining market share rapidly, and we plan to leverage our existing sales channels and strong customer base, which currently exceeds 800 companies, to continue the market share expansion.  

"We expect that our strong R&D capabilities and efficient operating model, combined with our core competencies in product integration, circuit design know-how and cost control, will allow us to further extend our success to the baseband market. I believe this is the right time to enter this market based on RDA's market position and solid customer relationships. We have proven technological advantages that we believe will enable us to capitalize on the tremendous opportunities in the baseband market and drive our future growth."


Thursday, February 9, 2012

Comments & Business Outlook

Fourth Quarter 2011 Results

  • Revenue was $82.4 million, exceeding the Company's guidance of $80 million to $82 million, and represented a decrease of 1.9% from the $83.9 million in the third quarter of 2011 and an increase of 43.3% from the $57.5 million in the fourth quarter 2010.
  • Gross margin was 35.3%, which was at the high end of the Company's guidance of 35.0% to 35.3%, compared to 34.9% in the previous quarter and 32.4% in the fourth quarter of 2010.
  • Operating margin was 20.0%, expanded from 18.8% in the previous quarter and 4.2% in the fourth quarter of 2010.
  • Net income was $16.6 million, or $0.37 per diluted ADS, compared to $15.7 million, or $0.34 per diluted ADS in the previous quarter, and $2.5 million, or $0.05 per diluted ADS, in the fourth quarter of 2010.

Commenting on the results, Vincent Tai, chairman and CEO of RDA Microelectronics, said, "I am very pleased to report record results for 2011, in which we grew revenue by over 50 percent and generated exceptional profitability and cash flow despite the challenging global economic conditions. During the year, we became the leading market share provider for both Bluetooth and Front End Module/Power Amplifier products for the Chinese handset manufacturer market, complementing our number one position in FM and DVB-S Tuner products. In the fourth quarter, our Power Amplifiers reached record shipments as a result of continued market share gains for our IPD Front End Module. In addition to these achievements, we also expanded our operating margin to 20% in the fourth quarter due to our efficient operating model and cost structure, which allows us to be highly competitive in the marketplace.

"To further expand our penetration of the 3G/4G smartphone market, we also introduced several new products that will increase our addressable silicon content in handsets. These products include a highly integrated Wi-Fi combo chip, a WCDMA four transmit mode power amplifier, and a CMMB Mobile TV Chip for TD-SCDMA. We believe there are growing opportunities for low-end smartphones, specifically in China, as this market segment is expected to ramp quickly in the coming year to meet the demand for additional feature sets as the 3G market evolves."

First Quarter 2012 Business Outlook:

For the first quarter of 2012, the Company expects revenue to be in the range of $69 million to $71 million, an increase of 25% to 29% year-over-year or down 14% to 16% sequentially, reflecting typical seasonal patterns including the shortened sales period due to the Chinese New Year. The Company expects gross margins to be in the range of 35.6% to 35.9% as it benefits from continued cost reductions through design enhancement and further growth of higher gross margin products.


Wednesday, January 4, 2012

Comments & Business Outlook

SHANGHAI, China, Jan. 4, 2012 (GLOBE NEWSWIRE) -- RDA Microelectronics (Nasdaq:RDA) ("RDA Microelectronics" or the "Company"), a fabless semiconductor company that designs, develops and markets Radio Frequency (RF) and mixed-signal semiconductors for cellular, connectivity and broadcast applications, today announced that it has signed an IP license and development agreement with Trident Microsystems. According to the terms of the agreement, RDA will pay US$16.0 million in cash to secure a non-exclusive, worldwide, non-transferrable license to develop, manufacture and sell derivative versions of the Trident SX5 Digital TV SoC platform for a period of 10 years.

"We are pleased to have entered into this agreement, positioning RDA to expand into the TV market and replicate the success we have achieved in the mobile handset market. We have taken advantage of a unique opportunity to license some of the best TV-related IP and patents available in the market today," commented Vincent Tai, chairman and CEO of RDA Microelectronics. "Licensing these technologies from Trident provides RDA a solid foundation to begin developing products for the TV and display markets. We anticipate it will require around two years of development to launch our first product, which we believe is approximately half the time it would have taken if we had internally developed the technology on our own.


Tuesday, November 8, 2011

Comments & Business Outlook

Third Quarter 2011 Results

  • Record revenue of $83.9 million exceeded the Company's guidance of $77 million to $79 million and represented an increase of 24.5% from the $67.4 million in the second quarter of 2011 and 46.0% from the $57.5 million in the third quarter 2010.
  • Gross margin was 34.9%, exceeding the Company's guidance, compared to 34.1% in the previous quarter and 30.2% in the third quarter of 2010.
  • Cash flow from operations was $30.5 million, compared to $18.1 million in the previous quarter and $1.0 million in the third quarter of 2010.
  • Net income was $15.7 million, or $0.34 per diluted American Depository Share (ADS), compared to $11.8 million, or $0.25 per ADS, in the previous quarter and $8.3 million, or $0.17 per ADS, in the third quarter of 2010.

Commenting on the results, Vincent Tai, chairman and CEO of RDA Microelectronics, said, "We achieved a record quarter by delivering strong revenue growth that exceeded our above market guidance as we continued to gain market share across multiple product categories. We also further expanded our gross margin as we accelerated our migration to 55-nanometer process technology. These achievements generated significant free cash flow to support R&D investment for future products and to fund the repurchase of shares for the benefit of our long-term shareholders.

"These financial successes achieved during a difficult global market environment underscore RDA's significant growth opportunities with Chinese handset manufacturers, and we believe this trend will continue. Furthermore, RDA products are available for use with any mobile platform offered in China today, giving us broad and diverse market opportunities in the fast growing mobile market. We also continued to make solid progress with further penetrating global tier one customers and have several ongoing design projects as a result of our commitment to comprehensive engineering support and customer service.

"Looking forward, our continued growth will be driven by increasing market share gains with China handset manufacturers and global tier-one OEMs. Additionally, our record shipments of TD-SCDMA transceivers this quarter are indicative of the growing momentum in the 3G market in China. We are aggressively expanding our new product portfolio with the development of our WCDMA power amplifiers, CMMB Mobile TV ICs for TD-SCDMA handsets, and WiFi products to capitalize on the growth in smartphones. These upcoming new products, along with our current IPD Front End Module and Bluetooth SoC offerings, will drive our future growth and increase our addressable silicon content with new and existing customers."

Fourth Quarter 2011 Business Outlook:

For the fourth quarter of 2011, the Company expects revenue to be in the range of $80 million to $82 million, up 39.2% to 42.7% year-over-year and down 2.3% to 4.7% sequentially, reflecting normal seasonal patterns and continued strong momentum for the Company's IPD Front End Module, Bluetooth system-on-chip, and TD-SCDMA transceivers. The Company expects gross margins to be in the range of 35.0% to 35.3% as it benefits from the continued migration to 55-nanometer for its Bluetooth system-on-chip products and the further growth of higher gross margin products.


Friday, September 23, 2011

Notable Share Transactions
SHANGHAI, China, Sept. 23, 2011 (GLOBE NEWSWIRE) -- RDA Microelectronics (Nasdaq:RDA) ("RDA Microelectronics" or the "Company"), a fabless semiconductor company that designs, develops and markets Radio Frequency (RF) and mixed-signal chips for cellular, broadcast and connectivity applications, today announced that the Company plans to execute a share repurchase program whereby the Company may purchase its own American Depositary Shares ("ADSs") with an aggregate value of up to US$5 million. The Company has obtained board approval for the share repurchase program. The Company expects to fund the repurchase out of its existing cash balance, with the cash consideration of such repurchase being paid on its behalf to the relevant ADS holders (or their agents) at the direction of the depositary. The proposed share repurchase may be effected on the open market at prevailing market prices and/or in negotiated transactions off the market from time to time as market conditions warrant in accordance with applicable requirements of Rule 10b5-1 and/or Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended.

Sunday, June 19, 2011

Liquidity Requirements
We believe that our current cash and cash equivalents and our anticipated cash flows from operations will be sufficient to meet our anticipated working capital requirements and capital expenditures for the 12 months following the date of this annual report. We do not anticipate that our current expansion plans will require significant capital commitments due to the scalability of our business model. We do, however, expect to invest in the further development of our technology platform to support our long-term growth.

Tuesday, May 10, 2011

Comments & Business Outlook

SHANGHAI, May 9, 2011 (GLOBE NEWSWIRE) -- RDA Microelectronics , a fabless semiconductor company that designs, develops and markets Radio Frequency (RF) and mixed-signal chips for cellular, broadcast and connectivity applications, today announced its financial results for the first quarter ended March 31, 2011.

  • Revenue for the first quarter of 2011 was US$55.2 million, exceeding the Company's guidance of US$52-$54 million, compared to US$57.5 million in the immediately preceding quarter and US$35.8 million in the first quarter of 2010, representing a 54.1% year-over-year increase.
  • Gross margin for the first quarter of 2011 was 33.3%, exceeding the Company's guidance range of 32%-33%, compared to 32.4% in the immediately preceding quarter and 24.9% in the first quarter of 2010.
  • Net income for the first quarter of 2011 was US$7.6 million, compared to US$2.5 million in the immediately preceding quarter and US$2.7 million in the first quarter of 2010.
  • Net income per diluted American Depository Share (ADS) for the first quarter of 2011 was US$0.16, compared to US$0.05 in the immediately preceding quarter and US$0.05 in the first quarter of 2010.

"We are pleased with our first quarter financial results, having achieved 54.1% revenue growth year-over-year and continued gross margin improvement," said Vincent Tai, chairman and CEO. "We exceeded our guidance for both revenue and gross margin with strong shipments of our Bluetooth and IPD Front End Module products. We believe that we are continuing to gain market share with our innovative IPD Front End Modules, Bluetooth, FM and Low Noise Block products. Looking ahead, we see two main drivers of near-term revenue growth and margin expansion. First, we expect the IPD Front End Module to continue to gain share; and secondly, we expect to significantly ramp production of our 55-nanometer Bluetooth system-on-chip products during the second quarter of 2011. Both of these factors give us confidence that RDA is in an excellent competitive position.

For the second quarter of 2011, the Company expects revenues to be in the range of US$65 - $67 million, reflecting historical seasonal growth patterns during the second quarter of each year and the strong momentum of the Company's IPD Front End Module, Bluetooth system-on-chip, Low Noise Block, and DVB-S tuner products. The Company expects gross margins to be in the range of 33.4 % - 34.0%, as it benefits from the migration to 55-nanometer for its Bluetooth system-on-chip products and the further growth of higher gross margin products. This outlook reflects the Company's current and preliminary view and may be subject to change. Please see "Forward-Looking Statements" at the end of this press release.


Tuesday, February 22, 2011

Comments & Business Outlook

Fourth Quarter Highlights:

  • Revenue for the fourth quarter of 2010 was US$57.5 million, unchanged from US$57.5 million for the previous quarter, and an increase of 74.4% compared to US$33.0 million for the fourth quarter of 2009.
  • For 2010, revenue was US$191.2 million, an increase of 61.5% compared to US$118.4 million for 2009.
  • Adjusted (non-GAAP) net income, which excludes share-based compensation, was US$10.2 million for the fourth quarter of 2010, a 20.5% increase compared to US$8.5 million for the previous quarter, and a 703.4% increase compared to US$1.3 million for the fourth quarter of 2009. 
  • Adjusted (non-GAAP) net income for 2010 was US$27.5 million, an increase of 126.4% compared to US$12.1 million for 2009.
  • Adjusted (non-GAAP) net income per diluted American Depository Share (ADS) for the fourth quarter of 2010 was US$0.24, compared to US$0.23 for the previous quarter and US$0.03 for the fourth quarter of 2009.
  • Adjusted (non-GAAP) net income per ADS for 2010 was US$0.71, compared to US$0.34 for 2009.

"We are very pleased with our financial results in the fourth quarter, which was our first quarter as a publicly traded company," said Vincent Tai, chairman and CEO. "For the fourth quarter of 2010, we achieved 74.4% revenue growth year-over-year. Gross margin improved by more than two percentage points sequentially to 32.4%, due to significant cost reductions with the migration to advanced technologies and ramping volumes of new products that carry higher gross margins. During 2010, with enhanced products and customer support, we continued to expand the market share of our Bluetooth system-on-chip and ramped up innovative new products, such as our IPD Front End Module and Low Noise Block products."

"Looking ahead, we will continue to leverage our RF and mixed-signal design expertise to expand our highly integrated and innovative product offerings and provide more competitive solutions to our customers. We are encouraged that Chinese handset manufacturers continue to do well in emerging markets, which will be favorable for RDA going forward."

For the first quarter of 2011, we expect

  • revenues to be in the range of $52 - $54 million, reflecting historical seasonal patterns during the first quarter of each year due to the Chinese New Year holiday and the resulting shortened sales period, as well as a modest component supply constraint related to our IPD Front End Module product. This constraint has already been resolved and we do not expect it to impact shipments beyond the first quarter of 2011.
  • gross margins to be in the range of 32.0 % - 33.0 %, as we continue to benefit from the migration to advanced process technologies. This outlook reflects our current and preliminary view and may be subject to change.

Friday, October 29, 2010

IPO Activity

RDA Microelectronics, Inc. plans for Initial Public Offering

Company Snapshot:

China-based fabless semiconductor company

Industry Snapshot:

  • Wireless communications technologies have evolved through generations of wireless protocols. Most mobile handsets are based on 2G (including 2.5G and 2.75G) technologies, while the increasing availability and adoption of 3G services will lead to greater demand for handsets based on 3G technologies. According to the iSuppli Report, 2G technology is expected to remain the dominant standard in emerging markets and will make up 44% of total mobile handset shipments worldwide in 2014.
  • A parallel industry development has been the increasing connectivity, computing and multimedia capabilities of mobile handsets, broadly defined as smartphones or rich feature handsets, for both 2G and 3G technologies. There is growing worldwide demand for smartphones due to the sophisticated computing capabilities, enhanced user interfaces, rich multimedia experiences, and proliferation of internet-centric applications of these devices. The creative use of these features enhances user experience and drives the sale of both 2G and 3G mobile handsets. The attach rates of these rich features are growing, and we believe most of these features will eventually become standard offerings in 2G and 3G mobile handsets.

Use Of proceeds:

We intend to use the net proceeds received by us from this offering for working capital and other general corporate purposes, including to finance our growth, develop new products, and fund capital expenditures. In addition, we may choose to expand our current business through acquisitions of other technologies, products, or businesses. However, we do not have legally binding agreements or commitments for any specific acquisitions at this time.

Underwriter(s):

  • Morgan Stanley & Co. International plc
  • Credit Suisse Securities (USA) LLC
  • Caris & Company, Inc.

Proposed offering price: $8.50 to $10.50

Post IPO Share Calculation: (Using a 6 to 1 Ordinary to ADS conversion ratio).

  • 11,007,266: Pre IPO fully diluted share count used in EPS calculation.
  • 26,271,607: converted shares immediately prior to the completion of this offering;
  •   7,500,000: Newly issued ADS shares
  • 1,125,000 : Underwriter over-allotments ADS shares 

GeoTeam® best effort calculation of total post IPO ADS count to be used in EPS calculations, assuming full conversions and a Ordinary to ADS conversion ratio of 6 to 1:   45,903,873

Financial Snapshot:

  • Revenue of $118.4 million in 2009 compared to $55.6 million in 2009.
  • Net income of $11.3 million in 2009 compared to $657 thousand in 2008.
  • Our revenue increased by 66.1% from $45.9 million for the six months ended June 30, 2009 to $76.2 million for the six months ended June 30, 2010
  • Net income increased significantly from $3.0 million, or 6.5% of revenue, for the six months ended June 30, 2009 to $8.4 million, or 11.0% of revenue, for the six months ended June 30, 2010.

Our independent registered public accounting firm has not conducted an audit of our internal control over financial reporting. However, in connection with the audits of our consolidated financial statements as of and for the year ended December 31, 2009, we and our independent registered public accounting firm identified one “material weakness” in our internal control over financial reporting, as defined in the standards established by the Public Company Accounting Oversight Board of the United States. A “material weakness” is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. The material weakness identified related to a failure to maintain effective controls over the period-end financial reporting process. We are in the process of implementing a number of measures to address the weakness that has been identified, including a more comprehensive and thorough review process for the month-end and year-end closing procedures to strengthen our internal controls and help us establish sustainable operational stability and produce our financial statements in a timely manner going forward.