News

16 December 2008

 

TriQuint cuts Q4 revenue guidance from $160-175m to $140-145m

RF product manufacturer and foundry services provider TriQuint Semiconductor Inc of Hillsboro, OR, USA says that, due to significant order push-outs and a drop in new orders, it has lowered its fourth-quarter 2008 revenue guidance (given on 22 October) from $160-175m to $140-145m (still up 9-13% from $128.5m a year ago, but down a huge 28-33% on last quarter's record $186.3m). Assuming the midpoint of this new range, compared with $475.8m for 2007, full-year 2008 revenue should be about $566m (up 19%) rather than $592m (up 24%).

With its market capitalization well below book value, TriQuint is examining the potential impairment of its goodwill, and currently expects to write off the full balance of $34.2m. The firm says that it is also examining the potential impairment of a cost-based investment in a privately held company and currently expects an impairment charge of about $2m.

Based on results to date and projections for the remainder of Q4/2008, loss is expected to be 20-22 cents per share. Excluding the unusual items mentioned above, earnings are expected to be 2-4 cents per share and non-GAAP earnings 5-7 cents per share. The firm also expects strong positive cash flow during the quarter.

TriQuint also says that it has taken significant cost-control measures, including a sharp reduction in temporary employees, the closure of most open staffing requisitions, restrictions on discretionary spending, and planned shutdowns over the holiday period. However, it adds that it is continuing to invest in innovative new products, technologies and more efficient processes. “We believe TriQuint remains well positioned financially and strategically heading into 2009, with ample cash reserves, continued market share gains, and a strong technical roadmap,” concludes the firm.

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