Telecoms ♦ news digest
“We had three 10% customers for the quarter, and they were Foxconn, Samsung and Nokia”. It was also revealed that two other firms who are close to the 10% mark are Chinese firms Huawei and ZTE.
Aldrich, President and CEO, mentioned that currently the firm’s revenue was about 65% in the mobile space, and 35% came from its diversified HPA business, and within the high- performance analogue sector. He added, “And within that 65%, our goal would to be as diversified as we possibly can be with the products that we address.”
Aldrich also commented, “We’re seeing some strength in our Korean customer base, we’re seeing strength with some of our Chinese customers like Huawei, our HPA portfolio is performing very well, the catalogue business is strong, and we’re seeing WiFi in some of the connect rate with gaming and some of the home automation markets doing very well for us.” He also mentioned that Skyworks was in avery strong position with the leading chipset provider and that he could see very good visibility into the chipset in the OEM side.
Regarding Nokia, Liam K. Griffin, Executive Vice President and General Manager, High Performance Analogue commented, “
Nokia...are a 10% customer for us, and we have a very broad footprint from 3G, very high-end, even LTE-enabled phones, and in this year, down to the lower-end 2G business. We continue to work very hard to gain share. I think one of the things that you should expect from us, as we get into 2013, is to go beyond the power amplifier space. We’re currently working with them on GPS products. We have a great opportunity for the antenna switch modules. And quite frankly, the power management IP that we bring forth today could be a real driver for us into 2013.”
Mobile and defence & aerospace market hinder
TriQuint shares and revenues The firm predicts continued weak demand from its largest mobile device customer and increased litigation costs in the next quarter. These are two of the contributors to TriQuint shares tumbling nearly 13% after the quarterly earnings release
TriQuint Semiconductor has announced its financial results for the quarter ended March 31, 2012.
Revenues for the first quarter of 2012 were $216.7 million, down 3% from the first quarter of 2011 and down 5% sequentially. Networks market revenue grew 10% sequentially while mobile devices market revenue and defence & aerospace market revenue decreased 8% and 4%, respectively.
GAAP gross margin for the first quarter of 2012 was 28.9%, down from 39.0% from the equivalent quarter last year, and sequentially from 29.5%.
Operating expenses for the first quarter of 2012 were $66.2 million, or 31% of revenue, up from $61.6 million in the previous quarter partially due to an increase in litigation expenses.
Operating income nose dived from $20.3 million in Q1 2011 to a loss of $3.6 million in Q1 2012.
Net income for the first quarter of 2012 was $1.9 million or $0.01 per diluted share, down from $4.3 million, or $0.03 per diluted share, in the previous quarter, and down from $12.4 million in the same quarter last year. Included in net income for Q1 2012 was a gain on a previously impaired investment of $7.0 million.
Cash and investments grew by $32.6 million to $194.9 million in the quarter due primarily to improved working capital management and lower capital expenditures.
During a conference call discussing the first quarter of 2012, Ralph Quinsey, President and Chief Executive Officer, commented, “I would first say that the short-term dip that we’re seeing in the current quarter as, it’s all about existing products. Products that have been in the marketplace.” He also said that last quarter, TriQuint was seeing a good uptake of its MMPA, and transmit modules. “We’re seeing that in Korea, we’re seeing that in greater China,” he added.
“Our revenue was better than normal seasonality in the first quarter and we saw signs of improvement in some of our infrastructure markets. While we anticipate a challenging second quarter in the mobile devices market, specifically with our largest customer, I believe this dip will be temporary and remain confident about our long term position. We have achieved design win success with our new products and I believe we will return to normal revenue levels and growth in the second half of 2012,” concluded Quinsey.
When asked about who TriQuint’s largest customer was, Quinsey remained tight-lipped, but did say that the declining orders were nothing to do with the firm’s produts.
Regarding the mobile market, Steven Buhaly, Chief Financial Officer, TriQuint, said that with 3G/4G, the most important issues were to have the right products, the right technology and have the capacity to grow with the customers. With 2G, however, he pointed out that due to that market being fairly competitive, TriQuint would participate, but was not in a position where it wanted “to chase a lot of low margin 2G opportunity.” Quinsey, on the other hand, said, “We should see some good uptake over the next several quarters in 2G GSM.”
Outlook:
The Company believes second quarter 2012 revenues will be between $170 million and $185 million. The company expects
April/May 2012
www.compoundsemiconductor.net 101
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