This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Can TriQuint Ever Be More Than an Apple Derivative?

NEW YORK ( TheStreet) -- There is no question that technology giants such as Apple (AAPL) and Google (GOOG) have a considerable amount of advantage over their peers when it comes to the growing popularity of smartphones and mobile devices. The technological shift encouraged by these devices, which combine various social networking, gaming, scheduling and other business functions, have quickly moved from "wants" to "must-haves." The reason for this new fascination has to do with the fact that consumers have adopted lifestyles that are constantly on-the-go with no signs of slowing down.

One company that benefited from this trend is the once-unknown TriQuint Semiconductor (TQNT), as it would appear that (until of late) its stock had also become somewhat of a "must-have." The company has been a staple in various iterations of both the iPhone and the iPad, and Apple accounts for 35% of its annual $900 million revenue. But will it ever be seen as more than just a derivative play on Apple? This is the question investors are beginning to ask, because after the stock had gained as much as 50% on the year to reach a high of $7.26, it has since lost 30% of its gains as of its recent close of $5.04. But what, exactly, has changed to cause this alteration in sentiment? Investors don't need to look any further than the company's own recent earnings report.

The TriQuint trifecta

The company disappointed Wall Street in three key areas. For the period ending March 31, TriQuint reported 2 cents earnings per share on revenues of $216.7 million. Though it beat analysts' estimates of $214.6, it represented a revenue decrease of 3.4% from the same period a year earlier. Its EPS number also met Wall Street expectations, but on a GAAP basis, it was 86% lower from a year earlier. The third disappointing trend was that it reported gross margins of 29.4%, representing an annual decrease of 960 basis points. Operating and net margins also trended lower.

As disappointing as these numbers were, the company also failed to inspire confidence with a better outlook. Management seems overly cautious with its revenue targets for the next couple of quarters by issuing guidance that was considerably lower than what it has issued in the past for the same periods -- by at least 20%. It seems there are concerns regarding its level of production with the new iteration of the iPhone due out this fall. More than anything else, I think that is what really disrupted its narrative and answered that all important question: Will it ever be more than a derivative play on Apple? It's hard to say no at this point.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,173.90 +41.93 0.24%
S&P 500 1,994.96 -4.02 -0.20%
NASDAQ 4,542.7770 -9.9820 -0.22%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs