Triquint Semiconductor (TQNT, Financial) has been a decent performer in the past and the stock has picked up more than 60% in the last year. With Apple (AAPL) being its significant customer and the proposed merger with RF Micro Devices, the semiconductor producer has pulled in numerous investors. With everything working smoothly, we should see whether Triquint is a decent purchase or not.
Great Prospects
Triquint is certain of outperformance in 2014 because of strategic moves embraced in 2013. The organization is anticipating that its profit margin will develop by 500 basis points in 2014. With the developing smartphone market, strong base station request and cost decrease initiatives, Triquint is expecting a superior future.
The organization is overall positioned to profit from the developing LTE stage. Triquint is widening its item portfolio by presenting new products in both the handset and the infrastructure market. The organization is anticipating that this shift will enhance its profitability. With the developing seasonal interest from customers such as Samsung, Huawei and ZTE, the organization is relied upon to profit. In China, Triquint is having extraordinary expectations. As the LTE stage is taking off strongly in China, the organization is seeing strong interest for Triquint's base-station products, and this could be a driving component in the long run.
The organization also deals in high esteem products such as discrete filters - BAW and TC-SAW, MNPA, and coordinated PA duplex modules. It is constantly investing aggressively in these products to support the developing LTE request across the globe. These high-esteem products prompted development in sales by 36% in the past. In line with the developing pattern, the organization is further anticipating that these will create more gains.
Profiting from China
China is Triquint's prime focus. China Mobile is expecting sales of 200 million LTE handsets this year, giving enormous development opportunities to the organization. Thus, Triquint is doing right by investing in creating high esteem products which will help it to enhance its profitability later on.
Triquint's prospects in LTE look strong in 2015. Besides this, Triquint sees enormous development with the channel advertise as it is required to develop to give or take $2 billion by 2016. As a result of this, Triquint is upgrading its R&d advancements to hold a profitable position later on. With a specific end goal to enhance, Triquint is lessening its revenue from lower margin products, including thing force amplifiers and transmit modules. Subsequently, Triquint looks solidly on track to convey solid earnings development later on.
Better Times ahead
Triquint is focusing on cost effectiveness. It has diminished its unused gas ability to chop down costs further. Triquint has a strong item portfolio as it has dispatched about 190 new products in 2013. The latest dispatch by the organization is TV LTE, which is seeing great response in the Chinese market. With these advancements, Triquint is focusing on a strong strategic position in the radio recurrence industry. Also, Triquint is focusing on 400,000 base stations that are relied upon to be inherent China in 2014 through its base station and optical products, and this could be a paramount development driver going ahead.
Conclusion
Triquint is also expecting a great deal from its RF Micro merger, as it is relied upon to help Triquint to catch more market in mobile devices, system infrastructure, and the aerospace defense market. Despite solid gains this year, Triquint remains in a decent position to develop its business later on. Henceforth, investors should stay invested in this chip stock as it can convey further upside later on.
