TriQuint Corporation (TQNT) recently reported financial results for the second quarter of 2012, which were roughly in line with expectations. Revenues of $178.0 million in the reported quarter were down 18% sequentially and 22% year over year.
The company posted a net loss of $16.5 million in the second quarter of 2012 compared with a net income of $1.9 million in the previous quarter and a net income of $16.6 million in the year-ago quarter.
Earnings per share came in at ($0.10) compared with $0.10 in the year-ago quarter and $0.01 per share in the previous quarter. Excluding restructuring charges but including stock-based compensation, net loss per share came in at $0.14, inline with the Zacks Consensus Estimate.
Revenues from Mobile Devices (the largest of the three major markets that the company serves – Mobile Devices, Networks, and Defense and Aerospace) were down 24%. Demand for Mobile devices was soft in the second quarter although demand for smartphones is expected to be strong in the second half.
Defense and Aerospace were flat sequentially, and expected to be strong for the remainder of the year. Network infrastructure posted a sequential decline of 5%.
Gross margin (excludes stock-based compensation charges and certain charges associated with acquisitions) was 27.9%, down from 30.4% in the previous quarter and 41.4% in the year-ago quarter.
TriQuint ended the quarter with cash and investments of $127.3 million, down from $146.0 million at the end of the previous quarter. The increase was mainly due repurchase of 4.9 million shares for $25 million. Inventory increased to $154.8 million from $145.5 million at the end of the previous quarter.
Going forward, TriQuint expects revenues between $195 million and $205 million in the third quarter of 2012. Gross margin is projected between 30% and 32%. TriQuint is expected to report break-even earnings in the third quarter.
The company has been posting weak results for the last few quarters. We continue to maintain a Neutral recommendation on the stock. Our recommendation is supported by a Zacks #3 Rank on the stock, which translates into a short-term rating of Hold.