2 May 2011

TriQuint’s quarterly revenue falls 11% to $224.3m

For first-quarter 2011, RF front-end product and foundry services provider TriQuint Semiconductor Inc of Hillsboro, OR, USA has reported revenue of $224.3m, down 11% on $253.4m last quarter but up 24% on $180.8m a year ago, driven by strong demand in the smartphone market.



Defense & Aerospace revenue fell 13% sequentially and 24% year-on-year (falling from 13% of total revenue to 8%).

Networks revenue grew just 6% year-on-year (falling from 24% of total revenue to 20%). By product classification, Radio Access has fallen from 39% of Networks revenue to 30% and Emerging Markets/Other from 20% to 17% while Transport has risen from 41% to 53% (becoming the largest Networks subcategory). During the quarter, TriQuint also launched three new cable products, expanding its transport portfolio.

In contrast, Mobile Devices revenue grew 41% year-on-year (rising from 63% of total revenue to 72%). In particular, by air interface standard, 2G (low-end, voice-only phones) has fallen from 8% of Mobile Devices revenue to 2% while 3G/4G has risen from 74% to 77% and Connectivity from 18% to 21% (largely wireless LAN). To support the strong market demand for WiFi connectivity, during the quarter, TriQuint introduced new single- and dual-band WLAN power amplifiers that augment the Texas Instruments WiLink 6.0 and WiLink 7.0 solutions.

On a non-GAAP basis, gross margin was 40%, down only slightly on 40.1% last quarter (due to inefficiencies associated with capacity expansion) and up from 39% a year ago (and almost double the 21% of Q1/2009 two year ago). Compared with Q1/2010, TriQuint has increased GaAs capacity about 25%, bulk acoustic wave (BAW) filter capacity about 95%, and surface acoustic wave (SAW) filter capacity about 30%. In Q1/2011, GaAs fab utilization was 90%.

Including $5.4m of expenses related to litigation with Avago over BAW filters, operating expenses were $63.2m (28.2% of revenue), up from $58m (22.9% of revenue) last quarter.

Although up 47% on $17.7m ($0.11 per diluted share) a year ago (despite litigation expenses being $4.4m higher), net income of $26.1m ($0.15 per diluted share) is down 39% on $42.8m ($0.25 per diluted share) last quarter. During the quarter, cash, cash equivalents and investments fell by $24.9m, from $223.7m to $198.8m. Capital expenditure of $51.8m was partially offset by $10.8m of cash flow from operations and $12m of cash from stock option exercises.

“Looking ahead, I expect continued solid traction in mobile devices, strength in high-performance optical amplifiers, and good progress in the cable market,” says president & CEO Ralph Quinsey.

For second-quarter 2011, TriQuint expects revenue to rebound to $230–240m. The firm is currently 86% booked to the mid-point of this revenue guidance. With GaAs fab utilization expected to be 85–90%, non-GAAP gross margin should be 40–42%. Non-GAAP operating expenses are expected to grow to $65–67m (including litigation expense rising to about $7m). However, non-GAAP net income is expected to rebound to $0.16–0.18 per share.

“We continue to expect strong revenue growth in second-half 2011, as we have had in past years like 2010,” says chief financial officer Steven Buhaly. Last year, about 55% of revenue was in the second half. “It’s not unheard of that we have 55–58% of the year’s revenue show up in the second half,” he adds.

For full-year 2011, TriQuint expects revenue to grow by 20%, and gross margin to be 40–43%.

See related items:

TriQuint grows revenue 7% in Q4, but more-than-seasonal 13% drop expected in Q1

TriQuint’s Q3 revenue exceeds guidance by nearly 8%

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

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