TriQuint Ups First-Quarter Guidance
NEW YORK (
) --
TriQuint Semiconductor
(TQNT)
, long rumored to be an
Apple
(AAPL) - Get Report
, raised its guidance above Wall Street's forecast at its analyst event today.
The revenue hike was driven by robust sales of its technology into telecom networks, according to TriQuint. Investors will be closely watching to see if the firm also receives an iPad boost during the coming months.
TriQuint, which makes components for networking base stations, smartphones and mobile devices, expects first-quarter revenue of $175 million, the high end of its projected range of $170 million to $175 million. TriQuint also raised its earnings estimate to 11 cents a share, above to its prior estimate of 8 cents to 10 cents a share.
Analysts surveyed by Thomson Reuters had expected TriQuint to post first-quarter revenue of $174 million and earnings of 9 cents a share.
"Our guidance is largely based on our strong networks business -- right now we're seeing a recovery in the network market," said Ralph Quinsey, the TriQuint CEO, during his keynote. "I am very pleased with the direction of the company with regard to growth."
Quinsey explained that TriQuint will record a $1 million tax credit in the first quarter, and also predicted a smartphone sales boost this year.
"We continue to focus good growth on smartphones going forward," he said, citing 3G and short product lifecycles for handsets as growth drivers.
TriQuint, which competes with
RF Micro Devices
(RFMD)
and
Skyworks Solutions
(SWKS) - Get Report
,
beat analysts' estimates in its recent fourth-quarter results
and is seen as well positioned for the explosion in high-tech mobile devices.
The company is
for
Apple's
(AAPL) - Get Report
and forthcoming
, but refuses to confirm whether it works with Apple.
The Hillsboro, Ore.-based firm has nonetheless confirmed that
Amazon
(AMZN) - Get Report
uses its technology within a version of its popular
e-reader.
Quinsey told
TheStreet
that he has great respect for Apple, but was cryptic when quizzed on specifics about TriQuint's smartphone partners.
"We have very wide participation with virtually all of the major smartphone and voice players," he said, noting that
Nokia
(NOK) - Get Report
is an exception.
Apple, which is notoriously secretive about impending products, was a notable absentee from a TriQuint presentation slide listing its partners. Investors, however, will be eagerly awaiting the "tear-downs" of Apple's soon-to-be-launched
, when media and analysts dissect the components within the device.
Investors were hardly blown away by TriQuint's bullish guidance in Thursday trading. The company's stock rose 1 cent, or 0.14%, to $7.15, mirroring the broader tech market as the Nasdaq gained 0.03%.
Steve Buhaly, the TriQuint CFO, also took the stage at the analyst event, explaining that the company is closing in on its gross margin target of 40% after achieving a 38% margin last quarter.
"It's getting closer -- we're definitely in the ballpark," he said, adding that he expects to reach the 40% goal in the second half of this fiscal year.
Similarly, TriQuint expects to reach its 25% operating expense goal later this year, according to the CFO.
During his keynote, TriQuint CEO Quinsey vowed to increase his company's presence in the defense market. "We also plan on expanding our military
RF module portfolio," he said. "That will be a good driver for the company in 2012 and 2013 and beyond."
Quinsey, however, did not offer new guidance for fiscal 2010, but reiterated his previous prediction of 20% year-over-year growth. TriQuint achieved sales of $654.3 million in fiscal 2009, a 14% increase on the prior year.
For fiscal 2010, Wall Street expects TriQuint sales of $782.19 million
-- Reported by James Rogers in New York
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