TriQuint Semiconductor: Forward Guidance Boosts Shares

Triquint Semiconductor (TQNT, Hold), an original equipment manufacturer (OEM) of semiconductor communication integrated circuits (ICs), announced its fiscal Q1:09 results yesterday. Revenues and proforma EPS both exceeded our and consensus expectation: Proforma EPS for the quarter came in at $(0.07) compared to our estimate of $(0.08) and consensus of $(0.09), while revenues of $118.9 million exceeded consensus expectation of $114 million. The company stated that it is beginning to see signs of “inventory normalization in some of our markets” and issued guidance exceeding our and consensus expectations.

The company continued to see lower inventory levels at its customers as a result of the global economic downturn, resulting in low factory utilizations rates during the quarter. However, TQNT is beginning to see signs of strength in some of its end customers as channel inventory has mostly been burned down.

Revenue upside in Q1 was mostly driven by handsets (24% q/q growth) and aerospace & defense (23% q/q growth), while relative strength in smart phones and the successful integration of its recent WJ Communications acquisition is beginning to pay off.

TQNT issued Q2 revenue guidance in $140 – $150 million range with non-GAAP EPS of $0.02 -$0.04. This is higher than our estimates of $135 million in revenues and break-even non-GAAP EPS and consensus expectation of $138 million in revenues and non-GAAP EPS of $0.01.

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