TriQuint Semiconductor, Inc. (TQNT) reported preliminary results for the fourth quarter of 2009.
The company now expects revenues of around $190 million, up from the previous guidance of $175 million to $185 million. The increase in guidance has been primarily due to increased demand during the holiday season.
In October, management had warned that a Korean handset manufacturer was making a material adjustment in its demand to bring down excess inventory, which in turn would impair demand in the fourth quarter.
Earnings per share (EPS) is now projected in the range of 12 cents to 13 cents, up from the earlier forecast of 10 cents to 12 cents.
For the first quarter of 2010, management estimates revenues to decline by 10% – 15% due to seasonal fluctuations in demand. However, revenue growth is expected to be strong in 2010.
With the economy showing signs of recovery, we expect capital spending to pick up in 2010. TriQuint foresees sustained demand for handset and defense products along with an eventual recovery in the networks market. The company is all set to benefit from China’s investment in 3G infrastructure, which more than offsets lower infrastructure spending in other regions. Management continues to see solid adoption of its 3G products in multi-band smart phones.
TriQuint is pitted against players such as Skyworks Solutions (SWKS) ANADIGICS Inc. (ANAD) and RF Micro Devices (RFMD). It remains to be seen how TriQuint fares and wins market share as the economy picks up. Based in Hillsborough, OR, TriQuint is an original equipment manufacturer of semiconductor communication integrated circuits and specifically targets the wireless handset segment, infrastructure networks and defense markets.
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