Peregrine's shares dip on Apple concerns

Two San Diego semiconductor companies reported financial results last week. Here’s a look at their performance.

Peregrine Semiconductor

Shares of San Diego’s Peregrine Semiconductor tumbled after a weaker than expected forecast for the upcoming quarter linked to its sales to iPhone maker Apple.

The company, which makes power amplifier, antenna tuners and other digital signal chips for mobile phone makers, posted revenue of $63 million for the quarter, slightly higher than analysts’ average estimate of $62.3 million.

Earnings came in at $6.9 million or 19 cents a share, excluding certain charges. Wall Street analysts had predicted earnings of 21 cents a share.

What sent shares falling was Peregrine’s first quarter guidance of revenue of $43 million to $46 million, well below the $58.1 million analysts were expecting.

“Presently we are addressing short-term challenges related to the demand for certain (manufacturers of) mobile devices, but we remain confident that the continued adoption of LTE smartphones, our increasing traction with leading customers worldwide, and the expansion of our non-handset business will all contribute to Peregrine’s continued long-term growth,” said Chief Executive Jim Cable in a statement.

About half of Peregrine’s fourth quarter sales were to Apple, according to analysts at Oppenheimer.

The Wall Street firm downgraded its recommendation on Peregrine’s shares from “outperform” to “perform” after earnings. In a research note, the firm said Peregrine faces increased competition for its Apple business from Skyworks and RF Micro Devices. Specifically, Oppenheimer said its checks indicated that Skyworks had won an antenna switching module in the iPad Mini, replacing Peregrine.

Peregrine announced earnings after markets closed on Wednesday, when its shares ended the day at $10.98 on the Nasdaq. They have since fallen 17 percent and were trading at $9.11 in late day trading Monday.

For its full fiscal year, Peregrine reported revenue of $203.9 million, compared with $107.8 million in 2011.

Under generally accepted accounting principles, the company posted net income of $7.3 million, or 15 cents a share. That compares to net loss of $9.7 million for 2011.


MaxLinear, a Carlsbad maker of digital signal processing chips, reported mixed fourth quarter and full year results on Wednesday, as sales into the cable and set-top box markets boosted revenue but higher expenses swung the company to a loss.

Fourth quarter sales came in at $24.8 million, up 29 percent from the same quarter a year earlier. The company lost $4.6 million, or 14 cents a share – roughly the same as last year.

For its full year, MaxLinear posted sales of $97.7 million, up 36 percent compared with 2011. The net loss for the year was $13.3 million, or 40 cents per share. That compares with a loss of $22 million the prior year.

Looking ahead, the company expects revenue of $26 million to $27 million for the current first quarter.

MaxLinear released results last Tuesday after markets closed, when its shares ended the day at $5.39. They were trading at $5.93 in late day action Monday on the New York Stock Exchange.