TriQuint posts unexpected quarterly gains, but forecasts a big dip ahead
Feb 06, 2013 (The Oregonian - McClatchy-Tribune Information Services via COMTEX) --
TriQuint Semiconductor posted unexpectedly strong fourth-quarter sales this afternoon, but the Hillsboro mobile chip company -- coming off a very disappointing 2012 -- forecast a big dip in revenue during the current quarter.
TriQuint makes specialized communications chips for networking equipment and smartphones. Its biggest customer is Foxconn, the contractor that makes Apple's iPhone.
Fourth-quarter sales totaled $233.6 million, up 2.9 percent from the same three months last year. TriQuint had told investors to expect quarterly sales between $220 million and $225 million.
TriQuint lost $3.8 million, 2 cents a share, in the fourth quarter. That's down from a profit of $4.3 million, 3 cents a share, in the last three months of 2011.
Lack of production capacity began costing TriQuint business in 2011, around the time that growth was peaking in the smartphone industry. That's created a long hangover for the company as it works to put its chips into more devices.
TriQuint said it expects first quarter sales will be below $190 million, down at least 12 percent from the same quarter last year.
Chief executive Ralph Quinsey said the company is continuing to expand its production capacity, anticipating stronger demand beginning late this year. Investors remain skeptical. TriQuint's shares fell 6.4 percent in after-hours trading following the quarterly release, to $5. The stock has traded between $4.30 and $7.26 in the past year.
-- Mike Rogoway; twitter: @rogoway; phone: 503-294-7699
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