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TriQuint Semiconductor Inc. Reports Operating Results (10-Q)

August 08, 2012 | About:
10qk

10qk

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TriQuint Semiconductor Inc. (TQNT) filed Quarterly Report for the period ended 2012-06-30.

Triquint Semiconductor has a market cap of $952.2 million; its shares were traded at around $5.7 with and P/S ratio of 1.1. Triquint Semiconductor had an annual average earning growth of 12.5% over the past 10 years.
This is the annual revenues and earnings per share of TQNT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of TQNT.


Highlight of Business Operations:

Mobile devices represents the largest of our three major end markets. Revenue from the sales of our products in the mobile devices end market for the six months ended June 30, 2012 decreased 19% compared to the six months ended July 2, 2011. The decrease is due to a decline in revenue from our largest customer during the six months ended June 30, 2012 and reduced revenue from some customers as end demand shifts away from them to top smartphone suppliers. Revenue from our connectivity products, largely Wireless LAN, was about $21.1 million, up 7% sequentially due to the uptake of new products.

Revenue from the sales of our products in the mobile devices market decreased approximately 30% for the three months ended June 30, 2012 compared to the three months ended July 2, 2011. The revenue decrease resulted primarily from declines in the sales of our 3G/4G, 2G and connectivity products, which experienced revenue decreases of approximately 25%, 30% and 44%, respectively. 3G/4G revenue declined primarily as a result of decreased demand from our largest customer. 2G revenue declined as we shifted focus away from this product area. Connectivity revenue declined primarily as a result of the end of a relationship with a WLAN foundry customer. Sales of these products collectively accounted for the following percentages of total mobile devices revenue:

Revenue from the sales of our products in the networks market decreased approximately 2% for the three months ended June 30, 2012 compared to the three months ended July 2, 2011. The decrease was primarily driven by a 27% decline in the sales of our radio access products. The decline in radio access product sales compared to the same period of the prior year was primarily due to lower capital investment in the expansion of base station capacity by telecommunications companies. The decrease in revenue from sales of our products in the radio access submarket was offset by an increase of product sales in the transport submarket of 15% that was primarily driven by strong growth in the demand for our optical products. Sales of our products in the multi-market category were flat when comparing the three months ended June 30, 2012 and July 2, 2011. Sales of these products collectively accounted for the following percentages of total networks revenues:

Revenue from the sales of our products in the mobile devices market decreased approximately 19% for the six months ended June 30, 2012 compared to the six months ended July 2, 2011. The revenue decrease resulted primarily from declines in the sales of our 3G/4G, 2G and connectivity products which experienced revenue decreases of approximately 9%, 42% and 43%, respectively. 3G/4G revenue declined primarily as a result of reduced demand from our largest customer. 2G revenue declined as we shifted focus away from this product area. Connectivity revenue declined as a result of the end of a foundry program for WLAN products. Sales of these products collectively accounted for the following percentages of total mobile devices revenue:

Our current cash, cash equivalents and short-term investments balances, ($97.3 million domestic and $65.1 million foreign) together with cash anticipated to be generated from operations and the balance available on our $200 million syndicated credit facility, constitute our principal sources of liquidity. We believe these sources will satisfy our projected expenditures through the next twelve months. We intend to permanently reinvest all foreign earnings except for liquidated foreign entities and existing earnings that have been previously taxed. We are not presently aware of any restrictions on the repatriation of these funds. If these funds were needed to fund our operations in the U.S., they could be repatriated. Repatriation of our foreign funds would require board approval and could result in additional U.S. income taxes and foreign withholding taxes which could be partially offset by net operating losses and/or foreign tax credits. Determining the amount of possible future taxes is not practicable. At this time, we believe our domestic funds, along with the syndicated credit facility, are sufficient to meet our net domestic cash requirements for the next twelve months. The principal risks to these sources of liquidity are lower than expected earnings or capital expenditures in excess of our expectations, in which case we may be required to finance any shortfall through additional equity offerings, debt financing or credit facilities. We may not be able to obtain additional financing or credit facilities, or if these funds are available, they may not be available on satisfactory terms.

Read the The complete Report

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