Triquint Semiconductor has a market cap of $715.5 million; its shares were traded at around $4.745 with and P/S ratio of 0.8. Triquint Semiconductor had an annual average earning growth of 12.5% over the past 10 years.
Highlight of Business Operations:Our gross profit as a percentage of revenue decreased to 30.7% for the three months ended September 29, 2012, from 34.9% for the three months ended October 1, 2011. The decrease in gross profit was primarily the result of increased capacity placed into service during the nine months ended September 29, 2012 coupled with lower demand, which resulted in a lower factory utilization rate in the three months ended September 29, 2012.
Other expense, net was relatively flat for the three months ended September 29, 2012 compared to the three months ended October 1, 2011, with an increase of $0.3 million, or less than 1% as a percentage of total revenue.
We recorded an income tax expense of $5.1 million and an income tax benefit of $3.1 million for the three months ended September 29, 2012 and October 1, 2011, respectively. Income tax expense for the three months ended September 29, 2012 was primarily associated with U.S. federal and state income taxes due to the mix of profit and loss between jurisdictions and the recognition of additional valuation allowance. The income tax benefit for the three months ended October 1, 2011 was primarily associated with the release of certain liabilities due to the expiration of the statue of limitations and the recognition of additional tax credits related to Research and Experimental ("R&E") spending.
Our gross profit as a percentage of revenue decreased to 28.4% for the nine months ended September 29, 2012, from 38.1% for the nine months ended October 1, 2011. The decrease in gross profit was primarily the result of increased capacity put in place during 2012, coupled with lower demand, thereby resulting in a lower factory utilization rate.
Our current cash, cash equivalents and short-term investments balances, ($68.4 million domestic and $76.2 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.
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