Communications-chip maker

TriQuint Semiconductor


narrowly beat consensus and its own guidance for the second quarter of 2002. The company also raised guidance on anticipated increased cell-phone business.

Shares of TriQuint closed the day down 28 cents, or 4.31% to $6.22, but rallied slightly after earnings were reported after the bell.

The company, which provides integrated circuits and filters for wireless phones and base stations, reported GAAP earnings of $2.4 million, or 2 cents a share on revenue of $61.2 million, a nearly 50% plunge compared with $4.7 million, or 4-cents-a-share profit, on revenue of $79.4 million in the same period last year. It logged a slight sequential gain on revenue and a sharp reversal of a $2.2 million net loss in the prior quarter.

The company said the surprise gains were a result of a one-time $4.6 million gain on hedging foreign currency for the acquisition of the



gallium arsenide business, a $2.3 million gain from early retirement of a part of its long-term debt. That was offset by a $3.3 million writedown of an equity investment. Excluding these charges, the company reported a pre-tax loss of $297,000, and flat earnings per share.

Wall Street analysts expected the company to report a net loss of 2 cents a share, on revenue of $60.9 million. The company managed to narrowly beat its own revised estimates of a net loss of a penny to 2 cents a share, which were not premised on the one-time gains, according to the company. It also managed to achieve a book-to-bill ratio of 1.07, the first time in six quarters that it has been over 1. That means that for every $100 billed during the quarter, the company booked orders for $107.

Cash, short-term investments and long-term marketable securities stood at $562.6 million at the end of the second quarter.

Looking ahead, the company raised guidance for third-quarter revenues from 10% to 23% from a range of $60 million to $63 million to a range of $69 million to $74 million, with earnings per share from break-even to a loss of 2 cents. The company also plans to write off acquisition-related costs of $5 million to $10 million in the period. The company said it expected increasing business from wireless handset manufacturers, including


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in the third quarter.

The company also reported this morning that it has tapped Ralph Quinsey to be the new president and chief executive officer, replacing 11-year-veteran Steven J. Sharp, who announced intentions to leave the company to pursue other interests last October. Sharp will remain as chairman.