TriQuint Semiconductor, Inc.
), an original equipment manufacturer (OEM) of semiconductor
communication integrated circuits (ICs), has recently declared its
stock buyback program to facilitate the purchase of its common
stock through May 2, 2013. According to the program, TriQuint would
be entitled to buy back up to $50 million worth of its common stock
either in the open market or through negotiated purchases,
depending on the existing market condition and other associated
TriQuint intends to fund its share repurchases with its strong
cash flow from operations and existing cash on its balance sheet.
During the first quarter of 2012, TriQuint generated nearly $34.7
million cash from operating activities compared with $10.8 million
in the prior-year quarter.
The buying back of common shares at a low price is likely to be
one of the best strategic moves for the company. Besides, the share
repurchase program will reduce the company's number of shares
outstanding, which is at 168.2 million (approximately) as of May 3,
TriQuint has a well-experienced management team offering a
unique perspective to electronic communications system industry,
such as mobile devices, networks and defense and aerospace
industry. The company's positive asset management policy has the
ability to adapt to the changing market conditions for improving
operating margins while boosting client experience.
However, the company should be aware of the competition existing
in the industry as it consists of large players, such as
DSP Group Inc
Ikanos Comm Inc
The current Zacks Consensus Estimate for both the second quarter
of 2012 and for fiscal 2012 is a loss of 16 cents per share. The
company currently retains a Zacks #5 Rank, which translates into a
short-term "Strong Sell" rating. However, we are maintaining a
Neutral recommendation on the stock.
DSP GROUP INC (DSPG): Free Stock Analysis
IKANOS COMM INC (IKAN): Free Stock Analysis
TRIQUINT SEMICO (TQNT): Free Stock Analysis
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