TriQuint Corporation (
TQNT ) recently reported financial results for the
second quarter of 2012, which were roughly in line with
expectations. Revenues of $178.0 million in the reported quarter
were down 18% sequentially and 22% year over year.
The company posted a net loss of $16.5 million in the second
quarter of 2012 compared with a net income of $1.9 million in the
previous quarter and a net income of $16.6 million in the year-ago
Earnings per share came in at ($0.10) compared with $0.10 in the
year-ago quarter and $0.01 per share in the previous quarter.
Excluding restructuring charges but including stock-based
compensation, net loss per share came in at $0.14, inline with the
Zacks Consensus Estimate.
Revenues from Mobile Devices (the largest of the three major
markets that the company serves - Mobile Devices, Networks, and
Defense and Aerospace) were down 24%. Demand for Mobile devices was
soft in the second quarter although demand for smartphones is
expected to be strong in the second half.
Defense and Aerospace were flat sequentially, and expected to be
strong for the remainder of the year. Network infrastructure posted
a sequential decline of 5%.
Gross margin (excludes stock-based compensation charges and
certain charges associated with acquisitions) was 27.9%, down from
30.4% in the previous quarter and 41.4% in the year-ago
TriQuint ended the quarter with cash and investments of $127.3
million, down from $146.0 million at the end of the previous
quarter. The increase was mainly due repurchase of 4.9 million
shares for $25 million. Inventory increased to $154.8 million from
$145.5 million at the end of the previous quarter.
Going forward, TriQuint expects revenues between $195 million
and $205 million in the third quarter of 2012. Gross margin is
projected between 30% and 32%. TriQuint is expected to report
break-even earnings in the third quarter.
The company has been posting weak results for the last few
quarters. We continue to maintain a Neutral recommendation on the
stock. Our recommendation is supported by a Zacks #3 Rank on the
stock, which translates into a short-term rating of Hold.
TRIQUINT SEMICO (TQNT): Free Stock Analysis
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