TriQuint Shares Plunge on Outlook, Q3 Results (TQNT)

TriQuint Semiconductor (NASDAQ: TQNT) shares have fallen sharply in trading today after the Hillsboro-based company gave weaker than expected outlook for the current. The company also reported weak third-quarter financial results.

TriQuint shares fell to an intra-day low of $5.12 in trading today. At last check, the stock was down 25.94% to $5.31 on above average volume of 26.50 million. TriQuint shares have fallen 55.72% so far this year.

TriQuint, which supplies modules, components and foundry services for communications applications, today said that it expects fourth-quarter revenue to be between $215 million and $225 million. The company expects fourth-quarter non-GAAP net income to be between $0.06 per share and $0.08 per share. TriQuint’s fourth-quarter revenue and earnings guidance are well below analysts’ estimate of $230 million and $0.09 per share.

TriQuint also released weak third-quarter financial results today. The semiconductor company reported a 9% drop in third-quarter revenue to $216 million. The company’s third-quarter revenue dropped 6% on a sequential basis. The company’s GAAP gross margin for the quarter was 34.9%, compared with 41.3% reported in the third quarter of 2010. On a non-GAAP basis, the company’s gross margin fell from 42.3% to 36.3%.

TriQuint’s GAAP net income for the third quarter was $16.2 million, or $0.09 per share. On a non-GAAP basis, the company’s net income for the quarter was $19 million, or $0.11 per share, down from $0.17 per share reported in the previous quarter and $0.28 per share reported in the third quarter of 2010.

TriQuint’s President and CEO Ralph Quinsey said that the company’s long-term growth story remains intact. Quinsey said that mobile broadband and high performance RF are some of the most exciting growth markets in the world today and the company is helping customers define the next generation of RF solutions. Quinsey added that the company is investing in capacity and capability for future growth and these investments will lead to superior and sustainable long-term financial performance for the company.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.