Earnings Preview For TriQuint



TriQuint Semiconductor, Inc. (TQNT: 7.26 0.00 0.00%) is expected to report results for the fourth quarter of 2009 later today. 

Last month, TriQuint upgraded its guidance for the fourth quarter. The company expects revenues of around $190 million, up from the previous guidance of $175 million to $185 million. The increase in guidance was due to increased demand during the holiday season. 

In October 2009, management had warned that a Korean handset manufacturer was making a material adjustment in its demand to bring down excess inventory, which in turn would impair demand in the fourth quarter. 

Earnings per share (EPS) are expected around 12 – 13 cents. 

For the first quarter of 2010, management estimates revenues to decline by 10 – 15% due to seasonal fluctuations in demand. However, revenue growth is expected to be strong in 2010. 

TriQuint reported revenues of $173.0 million in the third quarter of 2009, down 7% year over year but up 2% sequentially. The sequential revenue growth was broad-based and came from all end-markets. In particular, network markets grew 13% sequentially, driven by the resurgence in demand after clearance of excess inventory in the WLAN market. Gross margin improved to 35.0% from 33.2% in the previous quarter driven by improved factory utilization and efficient cost management. 



With the economy showing signs of recovery, we expect capital spending to pick up in 2010. TriQuint foresees sustained demand for handsets and defense products along with an eventual recovery in the networks market. 

Management continues to see solid adoption of its 3G products in multi-band smart phones. 

TriQuint is an original equipment manufacturer of semiconductor communication integrated circuits and specifically targets the wireless handset segment, infrastructure networks and defense markets.