) recently reported results for the first quarter of 2012, which
were roughly in-line with expectations but the outlook for the
second quarter was disappointing. Revenues of $216.7 million in the
first quarter of 2012 were down 5% sequentially and down 3% year
Net income plummeted 56% sequentially and 85% year over year
$1.9 million. EPS came in at $0.01 compared to ($0.06) in the
year-ago quarter and $0.03 per share in the previous quarter.
Excluding restructuring charges but including stock-based
compensation, earnings per share came in at $0.01, in-line with the
Zacks Consensus Estimate.
In terms of end markets, Mobile Devices accounted for 68% of
total revenues, Networks accounted for 22% of total revenues while
Defense and Aerospace accounted for the remaining
Revenues from Mobile Devices (the largest of the three major
markets that the company serves - Mobile Devices, Networks, and
Defense and Aerospace) were down 8%. Defense and Aerospace
were down 4%. Nevertheless, network infrastructure posted a
sequential decline of 10%.
The book-to-bill ratio was 0.89, primarily due to weakness in
Mobile Devices which partially offset strength in Networks.
Gross margin (excludes stock-based compensation charges and
certain charges associated with acquisitions) was 30.4% for the
quarter, down from 31.0% in the previous quarter and in-line with
management's guidance. This was attributable due to improved
product and business mix which partially offset increased costs
associated with placing the new 6-inch gas line in production in
TriQuint ended the quarter with cash and investments of $146.0
million, up from $116.3 million at the end of the previous quarter.
The increase was mainly due to improvements in accounts receivable,
reduced capital expenditures and the sale of an equity investment
for $7 million. Day sales outstanding decreased to 44 days due to
strong collections and a linear shipment pattern.
Inventory declined $6.1 million to $145.5 million and turns
improved to $4.2 million.
Going forward, TriQuint expects revenues between $170 million
and $185 million in the second quarter of 2012. Gross margin is
projected between 27% and 31% driven by weak factory utilization.
Operating expenses are estimated around $70 million, including
$11.0 million of litigation expense. EPS is forecasted around $0.10
Although the company reported results in-line with expectations,
the guidance provided by the company was weak. This led to
significant decline in stock price after the results were
The company has been posting weak results for the last few
quarters. Hence, we have a Zacks #5 Rank on the stock, which
translates into a short-term rating of strong sell. Nevertheless,
we maintain a Neutral recommendation on the stock in the
TRIQUINT SEMICO (TQNT): Free Stock Analysis
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