Can TriQuint Ever Be More Than an Apple Derivative?
One company that benefited from this trend is the once-unknown TriQuint Semiconductor(TQNT) , as it would appear that (until of late) its stock had also become somewhat of a "must-have." The company has been a staple in various iterations of both the iPhone and the iPad, and Apple accounts for 35% of its annual $900 million revenue. But will it ever be seen as more than just a derivative play on Apple? This is the question investors are beginning to ask, because after the stock had gained as much as 50% on the year to reach a high of $7.26, it has since lost 30% of its gains as of its recent close of $5.04. But what, exactly, has changed to cause this alteration in sentiment? Investors don't need to look any further than the company's own recent earnings report.
The TriQuint trifecta
The company disappointed Wall Street in three key areas. For the period ending March 31, TriQuint reported 2 cents earnings per share on revenues of $216.7 million. Though it beat analysts' estimates of $214.6, it represented a revenue decrease of 3.4% from the same period a year earlier. Its EPS number also met Wall Street expectations, but on a GAAP basis, it was 86% lower from a year earlier. The third disappointing trend was that it reported gross margins of 29.4%, representing an annual decrease of 960 basis points. Operating and net margins also trended lower.