TriQuint Tanks on Disappointing Forecast
HILLSBORO, Oregon (TheStreet) -- Shares of TriQuint Semiconductor(:TQNT) plunged in extended trading on Wednesday as investors balked at the semiconductor specialist's weak guidance.
The Apple(:AAPL) partner, which reported its first-quarter results after market close, brought in revenue of $216.7 billion, down from $224.3 million in the prior year's quarter, but above analysts' forecast of $214.68.
Excluding items, TriQuint earned 2 cents a share, down from 15 cents a share in the same period last year, and in line with Wall Street's estimate.
For the second quarter, however, the company sees revenue between $170 million and $185 million and a loss of 10 to 15 cents a share. Analysts surveyed by Thomson Reuters were looking for sales of $222.95 and earnings of 5 cents a share.
Boosted by Apple's stellar second-quarter results on Tuesday, TriQuint shares had climbed 7.6% during Wednesday's regular trading, but plunged more than 13% to $4.78 after it reported its own numbers.
In a statement, TriQuint CEO Ralph Quinsey blamed the weak guidance on a "challenging second quarter" in the mobile device market, citing the company's "largest customer."
Quinsey, however, struck a bullish tone during a phone interview with TheStreet shortly after the results were announced.
"We're going through a period in Q2 that's a dip," he said. "We expect to return to normal revenue levels in Q3 and have growth in the second half of the year based on good product traction."
Outside of its major customer, TriQuint enjoyed traction on mobile devices during the first quarter, according to Quinsey. "It was 8% growth," he said.
TriQuint's gross margin was 28.9% during the first quarter, down from 29.5% in the prior quarter.
--Written by James Rogers in New York.
>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.
>To submit a news tip, send an email to: firstname.lastname@example.org.