News

27 October 2010

 

TriQuint’s Q3 revenue exceeds guidance by nearly 8%

For third-quarter 2010, RF front-end product and foundry services provider TriQuint Semiconductor Inc of Hillsboro, OR, USA has reported record revenue of $237m, up 14% on Q2’s $207.5m and 37% on $173m a year ago (and 7.7% above the guidance of $215–225m).

Fiscal	Q4/2009	Q1/2010	Q2/2010	Q3/2010
Revenue	$193.3m	$180.8m	$207.5m	$237m

Networks (23% of overall revenue) continued to enjoy a strong rebound from the lows of 2009, with sales up 61% on a year ago. Mobile Devices (68% of overall revenue) showed robust growth, with sales up 28% on Q2 and 37% on a year ago. Defense comprised 9% of total revenue. “Our strategy of RF integration, multi-market innovation, and growth for scale has been effective,” believes president & CEO Ralph Quinsey.

On a non-GAAP basis, gross margin was 42.3%, level with Q2 and up from 35% a year ago (and well above the expected 40–41%). Operating expenses have been cut from 25.9% of revenue a year ago ($44.8m) and 26.4% of revenue last quarter ($54.7m) to 23.6% of revenue ($56m, slightly below the expected $57m). Net income has risen from $16m a year ago and $33.1m in Q2 to $44.2m.

“Looking forward I expect that the RF market will remain healthy and TriQuint will benefit from a strong product roadmap,” reckons Quinsey. During the quarter, TriQuint released its TQP15 foundry process for millimeter-wave applications (VSAT, satellite and point-to-point radios); announced an integration strategy for base-station products (with four levels of integration); launched heat-spreading capability for high-power die sales (die on tab, or DoT); and was awarded a $17.5m Title III gallium nitride (GaN) manufacturing development contract by the US Air Force Research Laboratory (AFRL).

For fourth-quarter 2010, TriQuint expects revenue of $245–255m (taking full-year 2010 revenue up 33% on 2009, compared with previous forecasts of first 20% then 25–30%) — the firm is currently 91% booked to the midpoint of this Q4 guidance. In particular, strong growth in the mobile devices market should lead to non-GAAP gross margin of 41–42%. Operating expenses are expected to grow to about $59m (24% of revenue).

TriQuint expects that continued robust growth in demand should lead to revenue growth of about 20% for 2011, and that the RF market will remain strong for years to come.

See related items:

TriQuint grows 14.7% in Q2 after faster-than-expected Networks rebound

TriQuint grows 52% despite dip from last quarter

TriQuint grows a more-than-expected 12% in Q4/09

TriQuint’s growth slows prior to expected Q4 pick-up

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