TriQuint Semiconductor, Inc (TQNT) reported revenues of $228.8 million in the second quarter of 2011, up 10% year over year and up 2% sequentially.
TriQuint is an original equipment manufacturer of semiconductor communication integrated circuits.
In particular, revenues from Mobile Devices (the largest of the three major markets that the company serves – Mobile Devices, Networks, and Defense and Aerospace) accounted for 70% of total revenues and grew 19% year over year.
Networks, accounting for 20% of total revenues, declined 3% sequentially primarily due to softness in point-to-point radio and inventory burn in AMI/AMR. A portion of the weakness in point-to-point radio was attributed to tsunami as some Japanese customers slowed their order rates during the crisis.
Management expects safety stocks will be elevated with the customers due to the tsunami. The AMI/AMR market has worked through its inventory bubble and management expects to return to its normal revenue levels late in the third quarter and fourth quarter.
Defense and Aerospace revenues accounted for 10% of total revenues and were down 11% year over year but up 31% sequentially.
Foxconn accounted for more than 10% of total revenues. Book-to-bill ratio for the quarter was 0.62.
Gross margin (excludes stock-based compensation charges and certain charges associated with acquisitions) came in at 41.4% compared to 42.3% in the year-ago quarter and 40.0% in the previous quarter.
Net income came in at $16.6 million or $0.10 per diluted share compared to a net income of $12.5 million or $0.07 per diluted share in the previous quarter and a net income of $22.5 million or $0.14 per diluted share in the year-ago quarter.
Excluding restructuring charges but including stock-based compensation, earnings per share came in at 13 cents, missing the Zacks Consensus Estimate by a penny.
During the quarter, TriQuint generated $31.6 million of cash from operations and used $60.7 million in capital expenditures. TriQuint ended the quarter with cash and investments of $180.6 million, down from $198.8 million at the end of the previous quarter.
Business in the second quarter was impacted by macroeconomic weakness, including the tsunami, largely impacting the networking business and a steeper decline in the 2G business than management’s expectations.
Going forward, TriQuint expects revenues between $225 million and $235 million in the third quarter of 2011. Management expects the company to return to strong sequential growth in the fourth quarter.
Litigation expense is expected to be approximately $5 million. Net income (excluding stock-based compensation and one-time items) per share is forecasted between $0.16 and $0.18.
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