TriQuint Semiconductor Inc. (TQNT, Financial) filed Quarterly Report for the period ended 2009-03-31.
TriQuint Semiconductor Inc. designs develops manufactures and markets a broad range of high performance analog and mixed signal integrated circuits for communications markets. The integrated circuits are incorporated into a variety of communications products including cellular phones and pagers fiber optic telecommunications equipment satellite communications systems high performance data networking products and aerospace applications. TriQuint Semiconductor Inc. has a market cap of $552.6 million; its shares were traded at around $3.75 with a P/E ratio of 125 and P/S ratio of 1.
In addition, as a result of the sale of our former optoelectronics operations, we received as partial consideration $4.5 million of preferred stock in CyOptics, Inc. (CyOptics) and an unsecured promissory note from CyOptics for $5.6 million, that was discounted by $2.3 million to reflect the current market rate for similar debt of comparable companies. CyOptics paid $0.4 million towards the promissory note for the three months ended March 31, 2009 and $0.4 million for the three months ended March 31, 2008. On October 9, 2007, we participated in an additional bridge financing where we purchased $0.5 million of a subordinated convertible promissory note from CyOptics which converted into preferred stock on July 24, 2008. In December 2008, we received a letter of intent from Millennium Partners (Millennium) and signed a definitive agreement to sell the preferred stock and debt to Millennium for approximately $3.8 million, inclusive of certain purchase adjustments. On February 13, 2009, we received notice from Millennium indicating that it no longer wished to pursue completion of the purchase of our preferred stock and that it believed it had the right to purchase the note for $1.0 million. We dispute Millenniums interpretation of the agreement and do not believe any transaction with them is probable. The carrying value of the investments is $2.8 million as of March 31, 2009.
As of March 31, 2009 our cash, cash equivalents and marketable securities increased $6.2 million, or 7%, to $92.2 million, from $86.1 million as of December 31, 2008. This increase in cash, cash equivalents and marketable securities for the three months ended March 31, 2009 was primarily due to the sale of long-term investments and a decrease in inventories of $19.8 million. The primary use of cash was for capital expenditures.
At March 31, 2009, our net accounts receivable balance increased $1.9 million, or 2%, to $80.3 million, from $78.4 million at December 31, 2008. This increase was primarily a result of shipments that occurred late in the quarter. Our days sales outstanding were 61 days as of March 31, 2009 compared to 48 days as of December 31, 2008.
At March 31, 2009, our net inventory balance decreased $19.8 million, or 18%, to $88.5 million, from $108.3 million at December 31, 2008. Inventory is now at a roughly appropriate level for the business we expect going forward.
At March 31, 2009, our net property, plant and equipment increased $4.0 million, or 2%, to $268.2 million, from $264.3 million at December 31, 2008. The increase was primarily a result of capital expenditures of $11.6 million during the three months ended March 31, 2009, partially offset by depreciation of $9.9 million. The capital expenditures made during the three months ended March 31, 2009 was primarily for equipment to support new products and technologies.
Read the The complete ReportTQNT is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
TriQuint Semiconductor Inc. designs develops manufactures and markets a broad range of high performance analog and mixed signal integrated circuits for communications markets. The integrated circuits are incorporated into a variety of communications products including cellular phones and pagers fiber optic telecommunications equipment satellite communications systems high performance data networking products and aerospace applications. TriQuint Semiconductor Inc. has a market cap of $552.6 million; its shares were traded at around $3.75 with a P/E ratio of 125 and P/S ratio of 1.
Highlight of Business Operations:
We experienced 7% overall revenue growth in the first quarter of 2009 compared to the first quarter of 2008, lead by handset growth of 24%. This handset growth is primarily attributable to strong growth in 3G product revenues with an increase of 206% for the first quarter of 2009 compared to 2008. The current demand for increased RF content required for the higher data rates and increased functionality of 3G handset devices has allowed average selling prices to stabilize. Our opportunity in a 3G phone, which is quad band capable in the GPRS/GSM/EDGE mode and supports 3 bands in the wideband code division multiple access (WCDMA) mode, is $6.00 to $8.00 per unit. By comparison, our content for a low cost dual-band GSM/GPRS phone is $0.90 to $1.50 per unit. Typical functional price erosion is 10-15% per year, offset by increasing content. We believe the fundamental drivers of continued long-term growth in the handset market remain solid as the number of new users in developed countries grows and existing users are adopting 3G enabled handsets that offer additional features and functionality compared to a traditional 2G handset. These more sophisticated handsets, sometimes called Smartphones, which incorporate a variety of features, and offer wireless broadband access enabled by 3G technologies, represent one of the fastest growing portions of the handset market. This transition to more sophisticated handsets increases the RF content in each device, increasing our addressable market. Further, China, India and other emerging countries with improving economies are growing the traditional 2G as well as the new 3G market by introducing a new customer base. In the past, however, during times of growing demand we have also experienced significant selling price pressure on some of our highest volume products.In addition, as a result of the sale of our former optoelectronics operations, we received as partial consideration $4.5 million of preferred stock in CyOptics, Inc. (CyOptics) and an unsecured promissory note from CyOptics for $5.6 million, that was discounted by $2.3 million to reflect the current market rate for similar debt of comparable companies. CyOptics paid $0.4 million towards the promissory note for the three months ended March 31, 2009 and $0.4 million for the three months ended March 31, 2008. On October 9, 2007, we participated in an additional bridge financing where we purchased $0.5 million of a subordinated convertible promissory note from CyOptics which converted into preferred stock on July 24, 2008. In December 2008, we received a letter of intent from Millennium Partners (Millennium) and signed a definitive agreement to sell the preferred stock and debt to Millennium for approximately $3.8 million, inclusive of certain purchase adjustments. On February 13, 2009, we received notice from Millennium indicating that it no longer wished to pursue completion of the purchase of our preferred stock and that it believed it had the right to purchase the note for $1.0 million. We dispute Millenniums interpretation of the agreement and do not believe any transaction with them is probable. The carrying value of the investments is $2.8 million as of March 31, 2009.
As of March 31, 2009 our cash, cash equivalents and marketable securities increased $6.2 million, or 7%, to $92.2 million, from $86.1 million as of December 31, 2008. This increase in cash, cash equivalents and marketable securities for the three months ended March 31, 2009 was primarily due to the sale of long-term investments and a decrease in inventories of $19.8 million. The primary use of cash was for capital expenditures.
At March 31, 2009, our net accounts receivable balance increased $1.9 million, or 2%, to $80.3 million, from $78.4 million at December 31, 2008. This increase was primarily a result of shipments that occurred late in the quarter. Our days sales outstanding were 61 days as of March 31, 2009 compared to 48 days as of December 31, 2008.
At March 31, 2009, our net inventory balance decreased $19.8 million, or 18%, to $88.5 million, from $108.3 million at December 31, 2008. Inventory is now at a roughly appropriate level for the business we expect going forward.
At March 31, 2009, our net property, plant and equipment increased $4.0 million, or 2%, to $268.2 million, from $264.3 million at December 31, 2008. The increase was primarily a result of capital expenditures of $11.6 million during the three months ended March 31, 2009, partially offset by depreciation of $9.9 million. The capital expenditures made during the three months ended March 31, 2009 was primarily for equipment to support new products and technologies.
Read the The complete ReportTQNT is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.