I am starting placeholder staked in TriQuint Semiconductor (TQNT) and RF Micro Devices (RFMD) - combined with our already held Skyworks Solutions (SWKS) I have the 3 main players in this niche. [Jul 23: Positive News Out of RF Semi Names: TriQuint Semiconductor and Skyworks Solutions] RFMD just put up a 7 cent quarter last night, when analysts were in for zero. Annualize .07 and you have 28 cents and you have decent value for a stock under $5.

Both these stocks have popped post earnings and I want to build larger stakes lower. But I am going to do a 0.5% combined stake between the two so they are on my sheets and stay in front of my eyes. My watch lists are so immense I tend to lose stocks in them so this way they are front and center. The last player in this group (and the smallest) is Anadigics (ANAD) which reports next week. Haven't looked at that name since 2001 perhaps.

After a quick pop this morning of nearly 10% RFMD is back to +4% around $4.50 where I am beginning the stake. TQNT popped yesterday and is down 3% this morning so I am starting that one around $6.75. The prices I pay today are irrelevent since these are just holding stake sizes... I am looking to make large buys nearer to support and will place limit orders after I have time to review the charts a bit more. First glance, I'd be thrilled to load up on TQNT below $6, and RFMD below $4. TQNT is in the process of filling yesterday's gap as we speak.

id=BLOGGER_PHOTO_ID_5362034350663757506id=BLOGGER_PHOTO_ID_5362034412652005474 TriQuint received a quick mention on TheStreet.com for basically the same thesis I am going for.

EDIT 2 PM: RF Micro Devices (RFMD) report here. While revenues did shrink 12% year over year, it was a substantial beat to analysts (+$25M) and the bottom line of course was way ahead. Just as with TQNT, gross margins exploded higher after some disastrous quarters.

  • RFMD's June quarterly revenue increased approximately 23.3% sequentially to $212.5 million.
  • GAAP gross margin for the quarter increased sequentially from 17.3% to 34.8%, and non-GAAP gross margin increased sequentially from 19.8% to 37.0% during the same period.

  • Operating profit was approximately $12.1 million on a GAAP basis and approximately $24.0 million on a non-GAAP basis, reflecting increased revenue, gross profit and solid expense management. Net income was approximately $4.8 million, or $0.02 per diluted share, on a GAAP basis and approximately $18.9 million, or $0.07 per diluted share, on a non-GAAP basis.
  • 3G Power Amplifiers up >50% sequentially.
  • Revenue related to 3G smartphones increased as substantially as a % of total revenue
  • Same story as above in terms of growth in automatic reader meters

Outlook (not quite so specific other than growth over this quarter)

  • RFMD is experiencing improved order visibility in its primary markets and currently expects sequential revenue growth, driven by the increasing RF content opportunity in 3G smartphones and continued market share gains. RFMD's fiscal 2010 is a 53-week fiscal year, and the September 2009 quarter is a 14-week quarter. (<--- almost Goldman Sachs like in nature)

RF Micro Devices, Inc. (Nasdaq:RFMD - News) is a global leader in the design and manufacture of high-performance semiconductor components. RFMD's products enable worldwide mobility, provide enhanced connectivity and support advanced functionality in the cellular handset, wireless infrastructure, wireless local area network (WLAN), CATV/broadband and aerospace and defense markets.

Long RFMD, TQNT in fund; no personal position