23 September 2011

TriQuint lowers Q3 revenue guidance by 8%

TriQuint Semiconductor Inc of Hillsboro, OR, USA, which provides RF front-end product maker and foundry services to mobile device, networks, and defense & aerospace markets, says that for third-quarter 2011 it has lowered its guidance for revenue by about 8%, from $225–235m to $210–215m (compared with $228.8m in Q2 and $237m a year ago in Q3/2010).

The firm has also lowered its guidance for non-GAAP net income per share from $0.16–0.18 to $0.09–0.11 (compared with $0.17 in Q2 and $0.27 a year ago in Q3/2010).

The reduction in expected revenue and profitability is attributed primarily to reduced demand from TriQuint’s largest customer, weakness in the communications infrastructure market, and softening demand from the China market.

TriQuint has also lowered its guidance for non-GAAP gross margin from 40–42% to 35–37%. The largest drivers of the sequential reduction in non-GAAP gross margin from Q2’s 41.4% are said to be product mix and costs associated with ramping new products.

However, the firm now expects non-GAAP operating expenses (including litigation expenses) to be cut further from Q2’s $65.6m, to about $60m for Q3 (rather than the previously expected $64–65m).

Despite the downward revisions for Q3, TriQuint concludes that it expects a return to strong sequential revenue growth in fourth-quarter 2011.  

See related items:

TriQuint’s Q2 and Q3 revenue hit by product focus

TriQuint’s quarterly revenue falls 11% to $224.3m

Tags: TriQuint

Visit: www.triquint.com