News Article
TriQuint reduces Q3 2011 revenue forecast by $ 15 million
The reduction in expected revenue and profitability for the third quarter is primarily the result of reduced demand from the company’s largest customer and the Chinese market and the weakness in the communications infrastructure market.
TriQuint Semiconductor, an RF solutions supplier and technology innovator, now expects third quarter 2011 revenue to be between $210 and $215 million and third quarter non-GAAP net income per share to be between $0.09 and $0.11.
In addition, non-GAAP gross margins for the third quarter are now expected to be 35% to 37% and non-GAAP operating expenses are expected to be about $60 million, including litigation expenses.
The updated outlook compares to the Company’s prior outlook of $225 to $235 million for revenue and $0.16 to $0.18 for non-GAAP net income per share.
The reduction in expected revenue and profitability for the third quarter is primarily the result of reduced demand from the Company’s largest customer, weakness in the communications infrastructure market and softening demand from the China market. Product mix and costs associated with ramping new products are the largest drivers of the sequential reduction in non-GAAP gross margins. The Company expects a return to strong sequential revenue growth in the fourth quarter of 2011.
No conference call will be held in conjunction with this financial outlook update. Additional information will be available when the Company reports its third quarter 2011 results after the market closes on October 26, 2011.
The following table provides a reconciliation of GAAP gross margins, operating expenses (in thousands) and diluted earnings per share to non-GAAP gross margins, operating expenses (in thousands) and diluted earnings per share for Q3 2011 based on the mid-point of updated guidance.
Forward looking GAAP gross profit is expected to be 35 % and GAAP operating expenses are forecast to be $66 million. Forward Looking GAAP diluted earnings per share should be in the region of $ 0.01.
