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23 October 2008


WJ boosts TriQuint’s 47% growth as profit triples

For third-quarter 2008, RF product maker and foundry services provider TriQuint Semiconductor Inc of Hillsboro, OR, USA has reported record revenue of $186.3m, up 52% on $122.9m a year ago and up 47% on last quarter’s $127m.

The increase was driven by 195% sequential growth in product revenue for 3G handsets (which have 3-4 times the RF content of previous phone generations) and 33% revenue growth for wireless local-area-network (WLAN) products (also up 174% year-on-year). This combined with a full quarter of results from WJ Communications Inc of San Jose, CA (acquired on 23 May for $72m), which supplies GaAs-based RF products for wireless infrastructure, RFID and WiMAX markets. Military product revenue grew 22% year-on-year.

Net income has more than tripled to $11.8m from $3.4m last quarter, and $1.9m a year ago. However, gross margin was 31.4%, down from 34.6% last quarter. Precious metals pricing reduced gross profit by about $5m, due mainly to the sharp fall in platinum prices during the quarter. Also, inefficiencies associated with the large increase in sales volume were slightly greater than originally expected. Operating expenses have risen from $41.8m last quarter to $46.3m (24.7% of revenue), driven mainly by the inclusion of a full quarter of expenses from WJ.

During the quarter, cash, cash equivalents and short-term investments fell $18.1m to $80.2m, due to substantial capacity investments and an increase in accounts receivables due to revenue growth.

“TriQuint delivered unprecedented revenue growth in the quarter and solid bottom line results,” comments president & CEO Ralph Quinsey. “Each of our markets is contributing to our growth.”

For fourth-quarter 2008, TriQuint expects revenue to fall back to $160-175m (due to a slowing in orders from some customers in response to the economic uncertainty).

TriQuint is currently about 90% booked to the mid-point of this revenue guidance. Based on this, TriQuint expects record revenue in 2008 (boosted by major design wins in mobile phones, WLAN laptops, and defense markets) and about 30% growth in non-GAAP earnings compared to 2007.

See related items:

TriQuint’s Q2 growth slowed by delayed product ramp

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

TriQuint to acquire WJ for $72m

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