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To: Return to Sender who wrote (11538)	9/10/2003 6:44:24 PM
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TriQuint Says Wireless Is Coming In Strong By K.C. Swanson Staff Reporter 09/10/2003 06:26 PM EDT Click here for more stories by K.C. Swanson Updated from 5:16 p.m. EDT Following upbeat news from other wireless players, chipmaker TriQuint (TQNT:Nasdaq - commentary - research) upped third-quarter guidance for sales, margins and earnings after the bell. The company said it expects sales of $75 million to $77 million for the quarter, up from the range of $70 million to $74 million it had previously outlined. TriQuint will report third-quarter results Oct. 23. Gross margin should be between 25% and 28%, above the earlier projection for 24% to 27%. TriQuint also reduced its projected per-share loss to between 6 cents and 8 cents, from an earlier range of a loss of 8 cents to 11 cents. Leading up to today's update, Wall Street analysts had been expecting sales of $73 million and a pro forma EPS loss of 9 cents. Sales tend to be historically stronger in the second half of the year, explained TriQuint executives on a conference call. But demand also seems to have seen somewhat of a post-SARS snapback, since the epidemic had suppressed Asian purchases of cell phones and gadgets in the second quarter. On top of that, sales have lately gotten a lift from secular growth trends such as demand in emerging markets like China and India and consumer interest in fancy phone features such as built-in cameras and text messaging. TriQuint draws nearly half its revenues from the wireless phone market. In 2002, Motorola (MOT:NYSE - commentary - research) and Nokia (NOK:NYSE - commentary - research) together accounted for just over 25% of its sales. On Monday, Nokia signaled that unit volumes in mobile phones unit should be strong in the third quarter, up more than 10% from last year's levels, according to a Reuters report. Looking down the road, TriQuint says orders look favorable for the fourth quarter, too; as a result, it now expects sales to be at the high end of its previously outlined range of $72 million to $76 million. That's about in line with the analyst consensus estimate of just under $76 million. TriQuint said it has already booked about 70% of its current fourth-quarter guidance, well above the 40% to 50% bookings level that is typical midway through a quarter. On the call CEO Ralph Quinsey acknowledged that handset inventories bear watching, but he said they currently appear to be at normal or slightly below normal levels, having fallen from 13 weeks to a healthier range of 4 to 6 weeks. "It looks to me like it's trending down," he said. Management also forecast that handset components will show price declines of 5% to 10% this year, much slower than the steep dropoffs of 20% or more in the preceding two years. thestreet.com Check out the after hours quotes finance.yahoo.com RtS