Updated from 4:41 p.m. EDT
on Tuesday said its fourth-quarter loss will be wider than expected on soft sales due to one-time charges and weakness in the wireless phone and optoelectronics markets. TriQuint also announced plans to acquire privately held
in a cash transaction.
After the bell, the Hillsboro, Ore.-based wireless chipmaker lowered its fourth-quarter revenue target to a range of $73 million to $74 million, down from a previous range of $76 million to $80 million.
As a result of plans to reposition its optoelectonics business -- including the elimination of 200 jobs -- TriQuint said it will incur $20.9 million in one-time charges in the fourth quarter. Those charges, combined with lower revenue, resulted in TriQuint lowering its earnings target to a loss of 21 cents to 23 cents a share, compared with
previous projections in October for a loss of 5 cents to 7 cents a share.
Excluding the one-time charges, TriQuint projects that its loss will be 6 cents to 7 cents a share, within its previously forecast range.
Analysts, who have lowered their targets in the past several weeks, were expecting the company to lose 6 cents a share on $77.9 million in revenue in the fourth quarter, according to Thomson First Call.
TriQuint expects the cuts to eventually result in an $18 million annual decrease in operating expenses, beginning in the second quarter of 2005.
In the first quarter of 2005, TriQuint estimates revenue to be flat to down 5% sequentially as a result of slightly lower sales for products for wireless phones and a reduction in optoelectronic revenue from the elimination of some product lines. That results in a targeted range of $69 million to $73 million in first-quarter sales -- short of the $77 million consensus estimate for first-quarter revenue.
Excluding one-time charges, TriQuint expects to post gross margin of 28% to 30% and a loss per share of 4 cents to 6 cents, which straddles the consensus estimate calling for a loss of 5 cents a share.
Including about $3.6 million in one-time charges, TriQuint expects to lose 7 cents to 9 cents a share.
For the full year, TriQuint estimates revenue to be flat with 2004 and profitability to improve.
Echoing comments from other chipmakers, CEO Ralph Quinsey said the company continues to experience an inventory correction of the supply chain across most markets and handsets in particular, resulting in less demand for TriQuint's products. That correction has stretched out a little longer than initially expected, added Quinsey, who now believes that the inventory reduction should wrap up sometime in the first quarter.
Separately, TriQuint announced that it will acquire Bend, Ore.-based TFR for about $6.75 million, with $3.75 million in a deferred payment. The companies said TFR's technology will enable TriQuint to offer products for existing and higher frequency 3G cellular applications, which are expected to define the future of wireless communications. The deal is expected to close in early January.
TFR employs a staff of 21, had annual revenue of $3 million to $4 million, and is profitable. TriQuint's guidance does not include profits or revenue from TFR, whose technology is widely used by the military.
Shares of TriQuint declined a nickel, or 1.1%, to $4.40 in recent after-hours trading; shares closed up 18 cents, or 4.2%, to $4.45.