TriQuint Semiconductor, Inc. (TQNT) recently updated its guidance for the first quarter of 2010.
The company now expects revenues of $175 million, up 47% year over year and up from the previous guidance of $170 million – $175 million.
Results for the fourth quarter beat management expectations driven by growth from all end-markets. In particular, revenues from mobile devices and defense and aerospace have propelled growth. Mobile Devices grew 55% year over year and 15% sequentially. Defense & Aerospace grew 15% year over year.
Management stated that TriQuint continues to penetrate the high-volume and rapidly expanding mobile devices market and aims to build on its leadership position in networks, defense and aerospace.
TriQuint foresees a sustained demand for handsets and defense products along with a strong recovery in the networks market. Management continues to see solid adoption of its 3G products in multi-band smart phones.
The company should also benefit from China’s investment in 3G infrastructure, which will more than offset lower infrastructure spending in other regions. Management expects to record a tax credit of $1 million in the quarter which should boost the bottom-line.
Earnings per share are now projected at 11 cents compared to the earlier forecast of 8 – 10 cents.
On the fourth quarter conference call, management stated that revenues are expected to grow by 20% in 2010.
We remain cautiously optimistic of the company’s projected path of growth. TriQuint is an original equipment manufacturer of semiconductor communication integrated circuits. The company specifically targets the wireless handset segment, infrastructure networks and defense markets.
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