Shares of RF (radio frequency) semiconductor supplier TriQuint Semiconductor Inc. (TQNT) touched a new intraday high of $8.54 on Wednesday before settling at $8.49. TriQuint's high performance gallium arsenide, or GaAs integrated circuits span the RF and millimeter wave frequency ranges and are used in wireless communications, telecommunications, data communications and aerospace systems.
With network operators seeing substantial increases in radio, optical and cable network traffic, TriQuint is in good position to take advantage of the growing demand, according to industry experts. The company is slated to release its third-quarter results on October 21.
For the third-quarter ended September 26, 2009, TriQuint had forecast net income to range between $0.05 and $0.07 per share and non-GAAP net income to range between $0.08 and $0.10 per share. The company expects revenue for the quarter in the range of $170 million - $180 million. Analysts polled by Thomson Reuters expect the company to earn $0.09 per share on revenue of $177.17 million.
The company derives revenue primarily from the sale of standard and customer-specific products and foundry services in the handset, networks and defense & aerospace markets. In the second-quarter ended June 27, 2009 the company's revenue was $169.1 million, up 33% compared to the year-ago quarter, lead by handset growth of 77% and defense & aerospace growth of 41%.
TriQuint's net income for the second quarter of 2009 was $3.9 million or $0.03 per share, up from $3.36 million or $0.02 per share in the comparable quarter a year before. The non-GAAP net income for the second-quarter of 2009 was $11.5 million or $0.08 per share, compared to $9.6 million or $0.07 per share in the year-ago quarter. The non-GAAP financial measures excluded stock based compensation charges, a charge for the anticipated settlement of a derivative lawsuit and certain charges associated with the acquisition of WJ Communications. TriQuint acquired WJ Communications Inc., a supplier of RF (radio frequency) solutions for wireless infrastructure, in 2008 for $72 million in stock.
According to TriQuint, the fundamental drivers of continued long-term growth in the handset market remain solid as the number of new users in developed countries keeps growing and existing users are adopting 3G enabled handsets that offer additional features and functionality compared to a traditional 2G handset. TriQuint supplies its products to leading cellular handset manufacturers, namely Samsung, LG, RIM and Apple.
The market has begun transitioning toward smart phones, which incorporate a variety of features, and offer wireless broadband access enabled by 3G technologies. The transition bodes well for TriQuint as it increases the company's addressable market. In addition, the company expects to add new customer base, now that China, India and other emerging countries with improving economies are growing the traditional 2G as well as the new 3G market.
Agreed! TriQuint's networks revenue decreased 27% in the second quarter of 2009 compared to 2008. But now, TriQuint is of the view that revenue from its networks submarkets are gradually recovering from the slump in the fourth quarter of 2008 and first quarter of 2009 when companies delayed build outs and capital purchases due to the economic downturn.
In June of 2009, Triquint was awarded leadership of phase III of a multi-year gallium nitride (GaN) research and development contract by the Army Research Laboratory. The contract, funded by the DARPA (Defense Advanced Research Projects Agency), was awarded based on TriQuint surpassing phase II goals. The overall program is designed to develop new high power, wideband GaN amplifiers for a range of defense applications. The contract, which the company is currently executing, represents approximately $16 million of revenue over 2 years.
Last October, the company was awarded a 21-month, $4.5 million contract by the Office of Naval Research to advance manufacturing methods for producing high-power, high-frequency GaAs (gallium arsenide) amplifiers.
After more than a year of keeping a tight grip on the purse strings, TriQuint opened its wallet last month to acquire privately-held TriAccess Technologies, a provider of CATV (Cable TV) and FTTP (Fiber-to-the-Premise) integrated circuits. TriAccess is believed to be a great fit for TriQuint. The combined resources of TriQuint and TriAccess are expected to put the company in a leadership position in the growing CATV and FTTP markets. The terms of the acquisition were not disclosed. TriAccess' results are not expected to materially impact TriQuint's net income.
On the deal-making front, TriQuint inked a strategic agreement on September 21 with China-based telecommunications equipment manufacturer Huawei to deploy driver amplifiers and related products for Next Generation optical transport systems. TriQuint will work closely with Huawei to develop higher-speed and wider-bandwidth networks solutions, with lower power consumption for operators across the world.
TriQuint has a sound balance sheet. At the end of the second quarter of 2009, the company had zero debt and $99 million in total cash.
TriQuint shares have grown more than four-fold in value from their March low of $1.94 to their current price of $8.49, thanks to the company's strategy of focusing on multiple communications markets such as mobile handsets, network infrastructure, and defense communications. Will the stock continue its winning streak? Stay tuned...
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.