RF (radio frequency) solutions provider and technology
TriQuint Semiconductor Inc.
) reported a net loss of $8.7 million or loss of 5 cents per
share in the fourth quarter of 2013 compared with a net loss of
$3.8 million or loss of 2 cents per share in the year-ago
quarter. The wider loss in the reported quarter was primarily
attributable to high research and development expenses.
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Excluding non-recurring items, non-GAAP earnings in the reported
quarter were $26.3 million or 16 cents per share versus $6.2
million or 4 cents per share in the prior-year quarter. Adjusted
quarterly earnings well exceeded the Zacks Consensus Estimate of
For full year 2013, TriQuint reported a net loss of $38.0 million
or loss of 24 cents per share compared with a net loss of $26.2
million or loss of 16 cents per share in 2012. However, non-GAAP
earnings improved to $14.5 million or 9 cents per share in 2013
from a net loss of $2.2 million or loss of a penny per share in
the previous year. Adjusted earnings for 2013 comfortably beat
the Zacks Consensus Estimate of a loss of 12 cents.
Revenues & Margins
Revenues for the reported quarter were $267.7 million, up 15%
year over year with strong performance across all markets.
Quarterly revenues marginally missed the Zacks Consensus Estimate
of $268 million. For full year 2013, revenues were $892.9
million, up 8% from 2012 due to an increase in revenue from
Mobile Devices and Defense markets.
On an end-market basis, quarterly revenues in the
market improved 26.2% year over year to $190.0 million (71% of
total revenue) driven by healthy demand for new LTE (Long Term
Evolution) products and a significant product ramp up in the
quarter. Mobile Device revenues for the second half of the year
were at a record high of $371 million, increasing 66% over the
first half. However, revenues from the
market decreased 3.4% year over year to $48.7 million (18% of
total revenue) and
revenues were down 10.7% to $29.1 million (11% of total revenue).
The book-to-bill ratio for the reported quarter was 0.71.
During 2013, TriQuint introduced 190 new products, strengthening
its strategic position in the RF industry. The company recorded
less revenue from lower margin products, including commodity
power amplifiers and transmit modules as it focused more on
high-margin products. Sales of high-margin products increased 36%
in 2013 (growing faster than the overall market) due to solid
demand for premium filters and high-performance broadband
amplifiers. On the other hand, revenue from lower margin
amplifiers and transmit modules declined 25% year over year in
Gross profit (non-GAAP) was $99.6 million versus $74.1 million in
the prior-year period. Non-GAAP gross margin improved to 37.2%
from 31.7% in the year-ago period. The increase in margin was
driven by higher revenues, higher factory utilization and better
yields. Operating expenses (GAAP) for the fourth quarter of 2013
increased to $78.5 million from $72.0 million in the year-ago
quarter, primarily due to higher R&D spending.
At year-end 2013, cash and cash equivalents aggregated $79.0
million compared with $116.6 million in the prior-year period.
TriQuint closed the year with no debt on its balance sheet. Cash
flow from operation for full year 2013 was $46.7 million.
Going forward, TriQuint expects first quarter 2014 revenues in
the range of $170 million to $180 million due to seasonality
factors. Non-GAAP loss is expected to be between 11 cents and 13
cents per share. For full year 2014, non-GAAP gross margin is
expected to grow 500 basis points year over year driven by
product mix changes and lower operating costs. Non-GAAP earnings
for the year are expected to be 49 cents per share.
TriQuint is expanding its capacity for high-performance filters
as it anticipates strong demand in 2014 and beyond. This is
likely to improve its performance in the coming quarters. The
company is well positioned in each of its markets to build on its
margin momentum. Bracing itself up for the next and larger LTE
expansion, TriQuint has restructured its factories and aligned
its mobile product strategy around premium filters,
high-efficiency amplifiers and densely integrated solutions.
TriQuint currently has a Zacks Rank #3 (Hold). Notable companies
in the sector that are worth mentioning include
Himax Technologies, Inc.
Freescale Semiconductor, Ltd.
), all of which carry a Zacks Rank #2 (Buy).