TriQuint forecasts results above estimates; shares jump
(Reuters) - TriQuint Semiconductor Inc (TQNT.O) forecast current-quarter results well above market expectations, buoyed by demand for its chips used in mobile devices such as smartphones and tablets.
The company's shares rose as much as 12.6 percent to $7.68 in after-hours trading.
TriQuint, which makes chips that help connect cellphones to data and voice networks, has been benefiting from growing sales of smartphones and tablets as such devices use more radio frequency chips than basic phones.
Apple Inc (AAPL.O) supplier Foxconn Technology Group is one of TriQuint's biggest customers, accounting for 31 percent of its revenue last year.
"Apple is a big part of its (TriQuint) guidance for September and December… Apple refreshes its iPhones every September-October," said Northland Securities analyst Tom Sepenzis.
Apple sold 31.2 million iPhones in the quarter ended June, trumping Wall Street estimates and also easing concerns that competition is hurting demand for its products in an almost saturated smartphone market.
TriQuint expects adjusted earnings of 9 cents to 11 cents on revenue of $245 million to $255 million in the third quarter.
Analysts on average were expecting earnings of 3 cents on revenue of $229 million, according to Thomson Reuters I/B/E/S
TriQuint's net loss widened to $14.9 million, or 9 cents per share, in the second quarter, from $13.1 million, or 8 cents per share, a year earlier.
Excluding items, the loss was 7 cents per share, compared with estimates of a loss of 11 cents.
Revenue rose to $190.1 million, beating estimates of $188 million.
The company's rivals Skyworks Solutions Inc (SWKS.O) and RF Micro Devices (RFMD.O) have reported results above estimates.
The Hillsboro, Oregon-based company's shares closed at $6.79 on the Nasdaq on Wednesday. They have gained about 41 percent in the past three months.
(Reporting By Lehar Maan in Bangalore; Editing by Ted Kerr and Sriraj Kalluvila)
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