For third-quarter 2012, RF front-end component maker and foundry services provider TriQuint Semiconductor Inc of Hillsboro, OR, USA has reported revenue of $200.8m, down 7% on $216m a year ago but up 13% on $178m last quarter, driven by increased demand from major smartphone customers and order strength for both infrastructure and defense products.
Compared with last quarter, Mobile Devices revenue grew 13% from $112.3m to $126.9m (remaining 63% of total revenue), boosted by the launch of Apple’s iPhone 5 in mid-September (since Apple contractor Foxconn contributes more than a third of TriQuint’s sales). Networks revenue grew 11% from $44.8m to $49.9m (remaining 25% of total revenue). Defense revenue was up 16% from $20.8m to $24m (12% of total revenue).
In particular, during the quarter, TriQuint grew design wins for multi-mode power amplifier (MMPA) modules (a second-generation device delivers 15% more browsing time) and captured a design win in small-cell base-station applications. The firm also launched what is claimed to be the first dual-channel 40/100G driver for high-speed optical networks. In addition, TriQuint won a $2.7m contract from the US Defense Advanced Research Projects Agency (DARPA) to triple the power handling performance of gallium nitride (GaN) circuits.
Although still down on 36.3% a year ago, gross margin has rebounded from 27.9% last quarter to 32.5% (above the guidance of 30-32%), driven by improved product mix and factory utilization. Although up on $58.7m a year ago, operating expenses have been cut from $64.3m (operating margin of 36% of revenue) last quarter to $62.1m (31% of revenue).
After entering into net loss last quarter (of $15m, or $0.09 per share), earnings rebounded to a net income of $2.5m ($0.02 per diluted share, better than the expected breakeven), although this is still down on $19m ($0.11 per diluted share) a year ago.
During the quarter, cash and investments fell further, by $17.8m from $162.4m to $144.6m, due mainly to higher sales volume later in the quarter resulting in a higher accounts receivable ending balance.
For fourth-quarter 2012, TriQuint expects revenue to grow 10–12% to $220–225m, with continued strength in each of its major markets but with pressure on gross margins due to planned inventory reductions. Non-GAAP gross margin is expected to fall back to about 30%, impacted by an improvement in inventory turns. Net income per diluted share should be $0.01-0.03.
