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24 July 2008


TriQuint’s Q2 growth slowed by delayed product ramp

For second-quarter 2008, GaAs-based RF component maker and foundry services provider TriQuint Semiconductor Inc of Hillsboro, OR, USA has reported revenue of $127m. Excluding $5.6m from WJ Communications of San Jose, CA (acquired on 23 May), revenue was $121.4m. This is up 6.7% on $113.8m a year ago and up 9% on last quarter’s $111.1m, driven by strong growth in wireless LAN and 3G handset products (in particular, shipping a high volume of its Tritium III next-generation 3G power amplifier modules). However, in early July, TriQuint had lowered its guidance from $130-135m to ‘about $120m’ due to ‘slower-than-expected new product ramps and shipment timing issues’.

On a non-GAAP basis, gross margin has risen from 35.5% last quarter to 37%, driven by improving product yields and the higher margins of the WJ products. Excluding a $1.6m loss from WJ, net income was $5m, up from $4.5m last quarter and $1.4m a year ago.

Cash, cash equivalents and short-term investments fell by $121m to $98.3m. However, this was due to the WJ purchase, substantial capacity investments, and growth in inventory in preparation for rapid growth in the coming quarter.

“TriQuint is on track for achieving our product development and design win targets for the year, with each of our markets generating strong order activity and a strong book-to-bill ratio of 1.29,” says president and CEO Ralph Quinsey. During Q2/2008, TriQuint won designs at 15 handset customers with its new Hadron PA module.

“Multi-band and multi-mode applications [e.g. 3G handsets and Wi-Fi, particularly 802.11n] are accelerating RF demand, with two to four times the content for TriQuint products in new applications, creating growth opportunities, ” he adds. TriQuint began to ramp new products for 3G and 802.11n in Q2/2008. While the profile of the ramp was slightly delayed compared to original expectations, Quinsey expects second-half 2008 to be a period of solid growth for TriQuint.

In particular, for third-quarter 2008, TriQuint is 95% booked and therefore expects revenue of $155-170m (up 22-34% on Q2).

See related items:

TriQuint lowers Q2 guidance from $130-135m to $120m

TriQuint’s profits hit by military/network R&D costs

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