WASHINGTON (dpa-AFX) - Foundry services provider TriQuint Semiconductor, Inc. (TQNT), which is in a merger with peer RF Micro Devices, Inc. (RFMD), reported Wednesday a profit for the second quarter compared to a loss last year, reflecting significantly improved margins, lower expenses and double-digit revenue growth.
Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company provided earnings guidance for the third quarter, in line with Street view, its shares were down 4 percent in extended trading on weak revenue outlook.
The company noted that it is on track to close its all-stock merger with RF Micro Devices, which was agreed upon on February 24, in the second half of 2014. The merger will create a new company with combined revenues of more than $2 billion.
'Revenue and earnings in the second quarter exceeded the high end of our previous guidance and our full year outlook remains strong. We continue to see robust demand in our infrastructure and mobile markets as worldwide demand for 4G LTE services ramp up with very strong demand for LTE base station products and premium filters for smartphones,' President and CEO Ralph Quinsey said in a statement.
The Hillsboro, Oregon-based company reported net income of $5.21 million or $0.03 per share for the second quarter, compared to a net loss of $14.89 million or $0.09 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter was $23.60 million or $0.13 per share, compared to an adjusted net loss of $10.95 million $0.07 per share in the year-ago quarter.
On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter increased 21 percent to $230.77 million from $190.10 million in the same quarter last year, and topped twelve Wall Street analysts' consensus estimate of $218.85 million.
Gross margin for the quarter expanded 1040 basis points to 40.2 percent, and total operating expense, as a percentage of revenues, improved 140 basis points.
Looking ahead to the third quarter, the company expects adjusted earnings in a range of $0.23 to $0.25 per share, on projected quarterly revenues between $255 million and $265 million, primarily depending on major program timing. Street is currently looking for third-quarter earnings of $0.24 per share on revenues of $277.92 million.
The company noted that it believes second-half revenue will be between $550 million and $600 million, up 11 percent at the midpoint from the prior year.
'We expect to exceed our goal of 500 basis points of gross margin improvement year over year and are now targeting 2014 full year non-GAAP gross margins to be greater than 40%. Additionally, we expect full year non-GAAP EPS to be up more than 6 times our 2013 results,' Quinsey added.
TQNT closed Wednesday's regular trading session at $17.25, down $0.53 or 2.98% on a volume of 3.27 million shares. The stock lost a further $0.75 or 4.35% in after-hours trading.
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