Needham & Company Downgrades TriQuint Semiconductor (TQNT) to Hold

February 7, 2013 9:08 AM EST Send to a Friend
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Price: $18.35 --0%

Rating Summary:
    7 Buy, 10 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 17 | New: 4
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Needham & Company downgraded TriQuint Semiconductor (NASDAQ: TQNT) from Buy to Hold following Q4 results.

The firm comments, "TriQuint delivered 4Q12 results that exceeded guidance and our expectations primarily due to a surge in Defense revenue. However, 1Q13 revenue guidance was well below our estimate due to platform transitions at major customers and seasonality. Reflecting the lower revenue and utilization, 1Q13 GM is expected to decline to 25%-27% while OPEX steps up as the company invests in new products. In the near-term, with revenue worse than expected, margin lower than expected and OPEX higher than expected, we now model TQNT will generate a loss in 2013 and we expect the company to be cash flow negative for the year. While management is optimistic about a strong 2H13, we would move to the sidelines in the near-term and wait for better visibility into the 2H13 ramp and traction with new products. We are downgrading TQNT shares to a Hold from a Buy."

The firm reduced 2013 estimates to $833MM/($0.25) from $905MM/$0.20. They introduce 2014 estimates of $955MM/$0.05.

For an analyst ratings summary and ratings history on TriQuint Semiconductor click here. For more ratings news on TriQuint Semiconductor click here.

Shares of TriQuint Semiconductor closed at $5.34 yesterday.




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