swung to a profit in the fourth quarter, boosted by an increase in revenue and a gain on the disposal of equipment.
The Hillsboro, Ore.-based company earned $2.9 million, or 2 cents a share, compared with a loss of $25.3 million, or 18 cents a share, a year earlier. The company's earnings were in line with the Thomson First Call consensus estimates.
Fourth-quarter revenue rose 26.3% from a year ago to $84.7 million, helped by higher sales in GSM handset products. Analysts were estimating revenue of $84.12 million.
The company expects to earn less than a penny a share to 1 cent a share in the first quarter of 2006, which includes a $2 million stock option expense, on flat revenue. The Wall Street consensus estimate for breakeven on a per-share basis. TiQunit expects to clock 20% growth in revenue in 2006 over the previous year.
Operating ratio, the ratio of operating expenses to revenue, declined 25.6% from 32.8%, for the fourth quarter, the company said. This was due to a $300,000 gain on the disposal of equipment and reductions in engineering spending. The expenses in the third and fourth quarters of 2005 include a charge of $400,000 related to the TFR acquisition, which closed Jan. 2005.
"During the course of 2005 we absorbed the anticipated negative impact of reduced handset IF filter revenue and aggressive filter pricing pressure while successfully executing our strategy to grow our overall module revenue," the company said. "Our continuing operations returned to profitability in the second half and, including the benefit of the optoelectronics asset sale, we significantly improved net income to 3 cents a share from a loss 21 cents a share in 2004. We are now in a position to build on the momentum we established in the second half of 2005."
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