RFMD logoRF Micro Devices, Inc. (NASDAQ: RFMD, RFMD message board) stock rose 6% and continues on the way up since the company's announcement on July 8, 2008. Apparently RF Micro has released a new tuner device for use with cable devices. The S510075-33Z device was made to provide original equipment manufacturers with energy efficiency and performance. The tuner also retains low distortion performance along with all the new improvements.

The general manager of RFMD's Broadband and Consumer Business Unit, Alastair Upton, commented: "As the leading provider of out-of-band tuners, RFMD is committed to bringing our customers innovative new products. Improvements in size reduction and efficiency, like those found in the S510075-33Z, are becoming critical requirements for set-top box manufacturers as they increase the functionality and resulting component content of new devices. In 2008 RFMD will expand our broad portfolio of CATV products to include new generations of active splitters, programmable return path amplifiers and line amplifiers."

While this all sounds pretty and the stock is rocketing up without looking back, investors should still evaluate the company's current financial condition and their ability to sustain the uptrend. RFMD's performance has actually worsened over the last reported quarter. The company's net losses are constantly increasing and the only thing that is keeping them so positive-minded is their plentiful cash resources. Although, these have also decreased significantly over the last 2 quarters.

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RFMD is investing huge amounts into research and development, and their SG&A expenses have been increasing, despite decreases in revenue. This has led the company to report an annual negative EBITDA as of March 31, 2008, for the first time.

In conclusion, the company doesn't seem to be getting profitable soon, which will most likely have a negative impact on the share price in the short run. Currently the upwards stock movement looks risky and most likely will not last long.