) recently reported better-than-expected financial results for
the third quarter of 2012.
The company posted a net loss of $11.2 million in the third
quarter, improving considerably from a net loss of $13.1 million
in the second quarter of 2012 and a net income of $16.6 million
in the year-ago quarter.
Net loss per share came in at 7 cents compared with a net
income of 9 cents in the year-ago quarter and a loss of 8 cents
in the previous quarter. Excluding restructuring charges but
including stock-based compensation, net loss per share came in at
2 cents, better than the Zacks Consensus Estimate of a loss of 4
cents per share.
Revenues of $200.8 million in the third quarter of 2012 were
down 7% year over year but up 13% sequentially.
The sequential growth was driven by increased demand from
major smartphone customers and order strength for infrastructure
and defense products.
On a segment basis, revenues from Mobile Devices (the largest
of the three major markets that the company serves - Mobile
Devices, Networks, and Defense and Aerospace) grew 13%
sequentially. Defense and Aerospace were up 16% sequentially.
Network infrastructure posted a sequential growth of 11%.
Gross margin (excludes stock-based compensation charges and
certain charges associated with acquisitions) was 32.5%, down
from 36.3% in the year-ago quarter but up from 27.9% in the
previous quarter. The sequential growth was driven by improved
product mix and utilization.
TriQuint ended the quarter with cash and investments of $114.4
million, down from $127.3 million at the end of the previous
quarter. The decrease was primarily due to higher sales volume
later in the quarter, resulting in a higher accounts receivable
ending balance. Inventory decreased to $154.1 million, versus
$154.8 million at the end of the previous quarter.
Going forward, TriQuint, which competes with
Avago Technologies Limited
), expects revenues between $220 million and $225 million in the
fourth quarter of 2012, driven by broad based strength across all
Gross margin is projected around 30%, down from the third
quarter due to planned inventory reductions. TriQuint is expected
to report EPS of 1 cent - 3 cents in the fourth quarter of
We maintain an Outperform recommendation on TriQuint. However,
we have a Zacks #3 Rank on the stock, which translates into a
short-term rating of Hold.
AVAGO TECHNOLOG (AVGO): Free Stock Analysis
TRIQUINT SEMICO (TQNT): Free Stock Analysis
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