TriQuint Q4 Results Top View, But Provides Weak Outlook

(RTTNews) - Foundry services provider TriQuint Semiconductor, Inc. (TQNT) reported Wednesday a loss for the fourth quarter that widened from last year, despite double-digit revenue growth and lower expenses, reflecting lower gross margins.

Both adjusted earnings per share and quarterly revenues topped analysts' expectations. Meanwhile, the company provided earnings and revenue outlook for the first quarter and full-year 2014, well below Street view.

"TriQuint's revenue for Q4 was $267.7 million, and non-GAAP earnings per share was $0.16, both above the midpoint of our guidance and well above our results in Q4 of 2012," President and CEO Ralph Quinsey said in a statement.

The Hillsboro, Oregon-based company reported a net loss of $8.74 million or $0.05 per share for the fourth quarter, wider than $3.76 million or $0.02 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $26.4 million or $0.16 per share, compared to $6.2 million $0.04 per share in the year-ago quarter.

On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.13 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 15 percent to $267.73 million from $233.62 million in the same quarter last year, and topped ten Wall Street analysts' consensus estimate of $265.93 million by a whisker.

Gross margin for the quarter contracted 320 basis points to 26.1 percent, partially offset by a 150 basis points improvement in total operating expense, as a percentage of revenues.

For fiscal 2013, the company reported a net loss of $38.01 million or $0.24 per share, wider than $26.17 million or $0.16 per share in the prior year. Adjusted net income for the year was $14.5 million or $0.09 per share, compared to loss of $2.2 million or $0.01 per share in the year ago.

Revenue for the full year grew 8 percent to $892.88 million from the previous year, due to an increase in Mobile Devices and Defense market revenue.

Analysts were looking for full-year 2013 earnings of $0.06 per share on annual revenues of $891.05 million.

Looking ahead to the first quarter, the company expects adjusted net loss in a range of $0.11 to $0.13 per share, on projected quarterly revenues between $170 million and $180 million, due to seasonality and a large customer's inventory correction in Mobile Device products. Street is currently looking for first-quarter earnings of $0.04 per share on revenues of $223.61 million.

For fiscal 2014, the company expects revenue growth in the mid single digits as strong growth in premium filters is partially offset by significant reductions in lower margin amplifiers and non-strategic foundry revenue. The company currently believe full year 2014 adjusted earnings per share will meet or beat the current analyst consensus.

Analysts are looking for full-year 2014 earnings of $0.49 per share on annual revenue growth of 14.4 percent to $1.02 billion.

"We expect lower demand from a major customer in Q1 due to short term inventory corrections but the underlying trends remain very positive. We anticipate revenue growth and significant year over year improvement in profitability during 2014," Quinsey added.

The company noted that it expects adjusted gross margins to average 40 percent and adjusted earnings for 2014 to be 5 to 6 times 2013 results, excluding the first quarter, on improved product mix and focused cost reductions.

TQNT closed Wednesday's regular trading session at $8.07, down $0.23 or 2.77% on a volume of 3.74 million shares. The stock lost a further $0.27 or 3.35% in after-hours trading.