As expected, Q1 2009 revenue was seasonally down, compared to Q4, in a challenging economic environment of inventory correction and reduced short term demand. Still, total revenue was up 7% as compared to Q1 2008. These results were led by Handset growth of 24% and Defense / Aerospace growth of 23%. The reduction of both channel and TriQuint inventory drove Oregon fab’s utilization to 35% and pushed gross margin down, resulting in a Non-GAAP net loss of ($0.07) per share on revenue of $118.9 million, both on the favorable end of our expectations. Fortunately, an inflection point of increasing demand occurred late in the quarter as Handset inventory normalized.
Highlights from the quarter included:
* Revenue for the first quarter was $118.9 million, up 7% from Q1’08
* Inventory was reduced $19.8 million from the fourth quarter of 2008
* Book to bill ratio for the quarter was 1.14
* Honored by Intel Corporation with its 2008 Preferred Quality Supplier award
* Achieved cumulative shipments of more than a half billion total RF modules
* Introduced the market’s first SMT device for 40Gb/s optical communications
* Unveiled TRIUMF™, 3G/4G converged mobile solution
* First design win for TriPower™ – Next generation infrastructure RF power solution
* Fulfilled initial production orders of GaAs and BAW devices for multi-nation F-35 Joint Strike Fighter
Commenting on the results for the quarter ended March 31, 2009, Ralph Quinsey, President and Chief Executive Officer, stated “The global economic downturn prompted lower inventory at our customers and very low factory utilization in Q1. We are now seeing signs of inventory normalization in some of our markets which should translate into stronger demand in the coming months."
Quinsey also commented that, "Market strength in smart-phones, the acquisition of WJ Communications and positive momentum in major military programs contributed to our year over year growth.”