RF MICRO DEVICES, INC. 2012 ANNUAL REPORT RF Mic R o Devices, o Devices, i nc. • 2012 Annu A l Repo powered from within R t WWW.RFMD.COM • 7628 THORNDIKE ROAD, GREENSBORO, NC 27409-9421 • PHONE 336.664.1233 OFFICERS AND DIRECTORS CORPORATE INFORMATION EXECUTIVE OFFICERS CORPORATE HEADQUARTERS Robert A. Bruggeworth 7628 Thorndike Road President and Chief Executive Officer Greensboro, NC 27409-9421 Barry D. Church Stock Transfer Agent and Registrar Vice President and Corporate Controller American Stock Transfer & Trust Company 59 Maiden Lane Steven E. Creviston New York, NY 10038 Corporate Vice President and President of Cellular Products Group www.amstock.com phone: (718) 921-8124 Norman A. Hilgendorf toll free: (800) 937-5449 Corporate Vice President and President of Multi-Market Products Group Independent Registered Public Accounting Firm Jerry D. Neal Ernst & Young LLP Executive Vice President of Corporate Marketing 3200 Beechleaf Court, Suite 700 William A. Priddy, Jr. Raleigh, NC 27604 Chief Financial Officer, Corporate Vice President of Administration and Secretary ANNUAL MEETING Suzanne B. Rudy The Annual Meeting of Shareholders will be held on Thursday, August Vice President, Corporate Treasurer, Compliance Officer and 16, 2012, at 8:00 a.m. local time, at the office of Womble Carlyle Assistant Secretary Sandridge & Rice, LLP, One Wells Fargo Center, Suite 3500, 301 South College Street, Charlotte, North Carolina. A notice of the meeting, proxy James D. Stilson and proxy statement will be sent or made available on or about July 2, Corporate Vice President of Operations 2012, at which time proxies will be solicited on behalf of the Board of About the Cover: “Powered From Within” Directors. CORPORATE OFFICERS Gary J. Grant SEC ANNUAL REPORT ON FORM 10-K RF Micro Devices is a global leader in the design and manufacture of Corporate Vice President of Quality Assurance Additional copies of our fiscal 2012 Annual Report on Form 10-K, as high-performance semiconductor components and compound semiconductor J. Forrest Moore filed with the Securities and Exchange Commission, including the technologies. We provide the world’s leading mobile device and communications Chief Information Officer and financial statements and the financial statement schedules but not including the exhibits contained therein, are available without charge Corporate Vice President of Information Technology equipment manufacturers the critical radio frequency (RF) components upon written request, directed to: necessary to transmit and receive signals—enabling worldwide mobility, Hans Schwarz Douglas Delieto Corporate Vice President of Business Development enhanced connectivity, and advanced functionality. Vice President, Investor Relations Investor Relations Department BOARD OF DIRECTORS RF Micro Devices, Inc. 7628 Thorndike Road RFMD competes in multiple growth markets, including smartphones, tablets/ 1,3†,4 Walter H. Wilkinson, Jr. Greensboro, NC 27409-9421 ultra-books, cellular handsets, WiFi, GaN power, and wireless infrastructure. Chairman of the Board www.rfmd.com Founder and General Partner, Kitty Hawk Capital Our unique competitive strengths, and the daily contributions of our highly We will furnish any exhibit to our fiscal 2012 Annual Report on Form 5 skilled and dedicated employees, position us to expand our leadership Robert A. Bruggeworth 10-K upon receipt of payment for our reasonable expenses in furnishing President and Chief Executive Officer, RF Micro Devices, Inc. such exhibit. position and capitalize on the secular growth trends in our target markets. Daniel A. Dileo1,3 Our Company—and the breakthrough devices we enable for our customers Former Executive Vice President, Agere Systems, Inc. PRICE RANGE OF COMMON STOCK —are powered from within. Jeffery R. Gardner2,4† Our common stock trades on the NASDAQ Global Select Market under President, Chief Executive Officer, and member of the Board of the symbol “RFMD.” The table below sets forth the high and low sales Directors of Windstream Corporation prices of our common stock for the quarterly periods during the fiscal years ended April 2, 2011, and March 31, 2012 as reported by the John R. Harding1†,5 NASDAQ Stock Market LLC. Co-founder, Chairman, President and Chief Executive Officer, eSilicon Corporation Fiscal 2012 High Low 2,5† First Quarter $ 6.73 $ 5.14 Masood A. Jabbar Second Quarter 7.41 4.95 Former Executive Vice President, Sun Microsystems, Inc. Third Quarter 7.89 4.97 Casimir S. Skrzypczak2,3 Fourth Quarter 5.69 4.41 Former Senior Vice President, Cisco Systems Fiscal 2011 High Low Erik H. van der Kaay2†,3,4 First Quarter $ 6.05 $ 3.83 Former Chairman of the Board, Symmetricom Inc. Second Quarter 6.25 3.65 1. Compensation Committee 2. Audit Committee 3. Governance and Nominating Committee Third Quarter 7.99 5.89 4. Finance Committee 5. Corporate Development Committee † Committee Chairman Fourth Quarter 8.48 6.01 We have never declared or paid cash dividends on our common stock. We currently intend to retain our earnings for use in our business and do not anticipate paying any cash dividends in the foreseeable future. Based on information obtained from our transfer agent, we believe that the number of record holders of our common stock was 2,091 at June 18, 2012. This number does not include beneficial owners, for whom shares are held in a “nominee” or “street” name. At June 18, 2012, we believe that there were approximately 75,447 beneficial owners of our common stock. This report includes “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions and are not historical facts and typically are identified by use of terms such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “poten- tial,” “continue” and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management’s current judgment and expectations, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under the federal securities laws. RF Micro Devices’ business is subject to numerous risks and uncertainties, including variability in operating results, risks asso- ciated with the impact of global macroeconomic and credit conditions on our business and the business of our suppliers and customers, our reliance on a few large customers for a substantial portion of our revenue, the rate of growth and development of wireless markets, our ability to bring new products to market, our reliance on inclusion in third party reference designs for a portion of our revenue, our ability to manage channel partner and customer relationships, risks associated with the operation of our wafer fabrication, molecular beam epitaxy, assembly and test and tape and reel facilities, our ability to complete acquisitions and integrate acquired companies, including the risk that we may not realize expected synergies from our business combinations, our ability to attract and retain skilled personnel and develop leaders, variability in production yields, raw material costs and availability, our ability to reduce costs and improve margins in response to declining average selling prices, our ability to adjust production capacity in a timely fashion in response to changes in demand for our products, dependence on gallium arsenide (GaAs) for the majority of our products, depen- dence on third parties, and substantial reliance on international sales and operations. These and other risks and uncertainties, which are described in more detail in RF Micro Devices’ most recent Annual Report on Form 10-K and other 1 2012 RFMD ANNUAL REPORT TO SHAREHOLDERS reports and statements filed with the Securities and Exchange Commission, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements. RF MICRO DEVICES®, RFMD® and PowerSmart® are trademarks of RFMD, LLC. All other trade names, trademarks and registered trademarks are the property of their respective owners. © 2012 RF Micro Devices, Inc. FINANCIAL HIGHLIGHTS Fiscal Year 2012 2011 2010 2009 2008 (in thousands, except per share data) Total revenue $ 871,352 $ 1,051,756 $ 978,393 $ 886,506 $ 956,270 Income (loss) from operations $ 24,643 $ 139,519 $ 106,406 $ (869,296) $ (50,901) Net income (loss) $ 857 $ 124,558 $ 71,019 $ (887,904) $ (3,394) Diluted net income (loss) per share $ 0.00 $ 0.44 $ 0.25 $ (3.38) $ (0.01) Cash and cash equivalents $ 135,524 $ 131,760 $ 104,778 $ 172,989 $ 129,750 Current assets $ 569,367 $ 600,159 $ 548,824 $ 517,434 $ 616,147 Total assets $ 964,584 $ 1,025,393 $ 1,014,008 $ 1,088,642 $ 2,011,309 Current liabilities $ 148,185 $ 134,937 $ 152,733 $ 99,344 $ 135,591 Total liabilities $ 292,253 $ 349,038 $ 483,924 $ 656,680 $ 715,208 Shareholders’ equity $ 672,331 $ 676,355 $ 530,084 $ 431,962 $ 1,296,101 ABOUT US RF Micro Devices, Inc. (NASdaQ GS: RFMD) is a global leader in the design and manufacture of high-performance RF components and compound semiconductor technologies. RFMD’s products enable worldwide mobility, provide enhanced connectivity and support advanced functionality in the mobile device, wireless infrastructure, wireless local area network (WLAN or WiFi), cable television (CATV)/broadband, Smart Energy/advanced metering infrastructure (AMI), and aerospace and defense markets. RFMD® is recognized for its diverse portfolio of semiconductor technologies and RF systems expertise and is a preferred supplier to the world’s leading mobile device, customer premises and communications equipment providers. Headquartered in Greensboro, N.C., RFMD is an ISO 9001- and ISO 14001-certified manufacturer with worldwide engineering, design, sales and service facilities.