TriQuint Semiconductor reported considerably slower growth in its second quarter this afternoon, missing revenue targets and sending the stock down in after-hours trading.
The Hillsboro company forecast a sales decline during the current quarter, but promised a "strong" rebound in the last three months of the year.
TriQuint, which makes wireless chips for Apple's iPhone and other popular mobile devices, lacked the capacity to meet rising demand last year and turned away some business. When Apple issued the Verizon iPhone early this year, TriQuint's chips were absent.
Today, chief executive Ralph Quinsey said the company is suffering a hangover from that tough call -- especially in older, "2G" wireless devices.
"We had to say no to mobile device business in 2010, and this has brought a bigger impact than we had anticipated," Quinsey said in a written statement. "We picked certain customers to support; this was the right long-term decision."
Second-quarter revenue totaled $228.8 million, up 10 percent from last year but below the $230 million to $240 million that TriQuint had forecast.
Profits totaled $16.6 million, or 10 cents a share. Analysts had been expecting profits of 12 cents a share.
TriQuint has been one of the Silicon Forest's strongest performers for several quarters and has grown its work force by 34 percent since the start of 2010. The company now has 984 employees at its Hillsboro headquarters and is in the process of adding another 50 jobs.
TriQuint has nearly 2,900 employees worldwide and is expanding its production capacity to meet future demand. The company said today that its long-term growth plans remain on track.
So essentially, they didn't take 2G business, which reduced revenue. But new iPhone got pushed back, so they don't have anything good for 3ird quarter either, but expects a 4th quarter blow out from iPhone and Christmas season.
Then why the heck is this being held to the analyst's standard when TQNT already guided otherwise? Analysts just decides "Nope, we think you are going to make this much money. Don't care what you say"? I certainly think the share's valuation should have been based on TQNT's estimates and not some analysts. I hope you are right and some clarifications comes through.