TriQuint Says Loss Will Widen After Acquisition

Communications chipmaker TriQuint TQNT said today that earnings for the first quarter of 2003 will fall short of analysts' expectations. Earnings per share are expected to show a loss of 8 cents, primarily due to costs from the acquisition of Agere's optoelectronics business. The acquisition will take place in January.

Wall Street had been expecting a pro forma loss of 1 cent per share in the first quarter, according to Thomson Financial/First Call.

Though it will hit the bottom line, the Agere purchase will lift TriQuint's sales, according to the company. Including the acquisition, revenue for the first quarter should be up 5% sequentially and 20% above the previous year's levels, TriQuint says. Analysts had been modeling a 4% sequential sales increase in the first quarter.

Without the Agere unit, revenue would be down 10% sequentially in the first quarter from the fourth quarter of 2002 compared to a year ago.

Meanwhile, TriQuint says it's sticking by an earlier forecast for the December quarter for revenues in the range of $71 million to $75 million and earnings at break-even.

Analysts forecasts are for break-even earnings and revenues of $73 million. TriQuint ended the day down 13 cents, or 1.8%, to $7.04.