To: Johnny Canuck who wrote (41247 ) 6/2/2004 11:00:52 AM From: Johnny Canuck Read Replies (1) | Respond to 07:09 TQNT TriQuint Semi: Color On Mid-Qtr Update (5.68 ) strong demand for Wireless phone products (37% of revenue). Based on commentary from mgmt, orders for handsets continue to be strong. Mgmt noted that it has already booked $37 mln in wireless phone business for Q304. On top of strong bookings, mgmt has not seen evidence of inventory build in the channel . Also, infrastructure networks remain solid. However, the firm remains cautious on the stock due to the competitive market share fight for Power Amplifiers, the migration to direct conversion radios in 2004 and overall profitability concerns. Reiterates Neutral rating with $8 tgt...JP Morgan out saying they are not concerned with 2Q04, as a turns requirement of only 2%-7% is required to hit the revenue mid-point. However, they are concerned with their 3Q04 revenue estimate of $93.0 mln or 2% QoQ growth as the company is only 41% booked, below the 45% booked at the same time last quarter and the 60% booked at the same time during 4Q03. Firm believes this reduced visibility adds risk to their estimates. With the shares trading at 41x C05 EPS estimate of $0.14, they need some evidence Q2 strenght is sustainable before becoming more positive since TQNT stock. Firm reiterates Underweight rating.
