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TriQuint Semiconductor Q4 2007 Earnings Call Transcript

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2008-02-20 19:38:08.0

Tags: TriQuint Semiconductor

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from the line of Amit Kapur from Piper Jaffray.

Amit Kapur - Piper Jaffray

Great- thanks a lot guys. A couple of questions to begin with: obviously, a strong gross margin performance during Q4. Can you maybe talk about how we should think of gross margins in Q1 and what are some of the main factors that are impacting some of the change given where the EPS segment is?

Ralph Quinsey

Sure I will take that. I think that Q4 is a great example of what we can do when we run some volume through the factory and we get our utilization up. We also had some pretty good yield performance in the fourth quarter. Clearly Q1 margin percentage is going to regress based on loading in the fab with the revenues of a $1.10 to $1.15 range. I would expect it in the low 30s. But for the full year, I'd expect to make strong progress towards our strategic model of non-GAAP gross margins of 40%.

Amit Kapur - Piper Jaffray

Great. And then kind of related to that: What is the expected product mix in Q1 versus Q4 and then what kind of products mix trends are you expecting for the (inaudible)?

Ralph Quinsey

Product mix, if you look at its trending over the last several quarters, has stayed fairly constant. And again I expect it to stay fairly constant. I think you will see the impact of seasonality and inventory adjustments that I spoke of largely in the handset space. And as I mentioned you will see disproportionate growth in the networking space, particularly wireless LAN. So the mix should shift slightly.

Amit Kapur - Piper Jaffray

Okay. And may be one final question before turning it over. In terms of your comment I am taking 89% booked for the quarter. Can you remind us again what level that normally ranges or even what it was last quarter?

Steve Buhaly

Yeah, we are pretty much in the normal range. I think at this time a quarter ago we were at 87%. So this is pretty typical and obviously played a role in setting the guidance that we did.

Amit Kapur - Piper Jaffray

Great, thanks a lot guys.

Operator

Your next question comes from the line of Pierre Maccagno with Needham & Company.

Pierre Maccagno - Needham & Company

Congratulations on the quarter, Steve and Ralph.

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