TriQuint Announces Fourth Quarter and Full Year 2012 Results

  TriQuint Announces Fourth Quarter and Full Year 2012 Results

Business Wire

HILLSBORO, Ore. -- February 6, 2013

TriQuint Semiconductor, Inc (NASDAQ:TQNT), a leading RF solutions supplier and
technology innovator, announces its financial results for the quarter and year
ended December31, 2012, including the following highlights:

  *Revenue for the quarter was $233.6 million, up 16% from Q3 2012
  *Mobile Devices market revenue grew 19% sequentially from Q3 2012
  *Strong demand for 5GHz WLAN drove 66% sequential growth in connectivity in
    smartphones
  *Ramping high-performance LTE filters for Samsung, LG, HTC and Motorola
    Mobility smartphones
  *Record Optical sales in 2012 fueled by industry leading 40/100G modulator
    drivers
  *VSAT revenue up 40% sequentially with production launch of major Ka band
    program
  *Set industry record for gallium nitride (GaN) reliability performance

Commenting on the Company's financial results, Ralph Quinsey, President and
Chief Executive Officer, stated “TriQuint's revenue for Q4 was $233.6 million
and non-GAAP earnings per share was $0.04, both above our guidance. We are
continuing to expand capacity for high performance filters in anticipation of
stronger demand in the second half of 2013 and beyond. I believe these
investments will lead to improved financial results for the company.”

Summary Financial Results for the Quarter and Year Ended December31, 2012:

Revenue for the fourth quarter of 2012 was $233.6 million, up 3% from the
fourth quarter of 2011 and up 16% sequentially. Mobile Devices revenue grew
19%, Networks revenue grew 1% and Defense & Aerospace grew 36%, in each case,
sequentially. Revenue for 2012 was $829.2 million, down 7% from 2011 due to a
decrease in Mobile Devices revenue.

GAAP

Gross margin for the fourth quarter of 2012 was 29.3%, down from 30.7% in the
prior quarter. Gross margin for the year ended December 31, 2012 was 28.7%,
down from 35.9% for 2011. Lower factory utilization drove the year-to-year
decline.

Operating expenses for the fourth quarter of 2012 were $72.0 million, or 31%
of revenue, up from $67.1 million in the prior quarter. Operating expenses for
2012 were $274.7 million, up from $262.9 million in 2011. The increase in the
fourth quarter and for 2012 was due to higher engineering expenses.

Net loss for the fourth quarter of 2012 was $3.8 million, or $(0.02) per
diluted share. Net loss for 2012 was $26.2 million or $(0.16) per diluted
share.

Non-GAAP

Gross margin for the fourth quarter of 2012 was 31.7%, down from 32.5% in the
prior quarter. Gross margin for 2012 was 30.7%, down from 37.2% for 2011.
Lower factory utilization drove the year-to-year decline.

Operating expenses for the fourth quarter of 2012 were $66.6 million or 29% of
revenue, up $4.6 million from the prior quarter. Operating expenses for 2012
were $254.4 million or 31% of revenue, up from $244.4 million in 2011. The
increase in the fourth quarter and for 2012 was due to higher engineering
expenses.

Net income for the fourth quarter of 2012 was $6.2 million, or $0.04 per
diluted share. Net loss for 2012 was $2.2 million, or $(0.01) per diluted
share.

Please see the discussion of non-GAAP financial measures below and the
attached supplemental schedule for a reconciliation of GAAP to non-GAAP
financial measures.

Outlook:

The Company believes first quarter 2013 revenue will be between $180 million
and $190 million. First quarter 2013 non-GAAP net loss is expected to be
between $0.12 and $0.14 per share. The Company is 98% booked to the midpoint
of revenue guidance.

Additional Information Regarding December31, 2012 Results:

GAAP and non-GAAP financial measures are presented in the tables below (in
millions, except for percentage and per share information). Non-GAAP financial
measures are reconciled to the corresponding GAAP financial measures in the
financial statement portion of this press release.


GAAP RESULTS
                                                                                         
             Three Months Ended                                           Year Ended
                                     Change                  Change
                                                                                                  Change
             Q4 2012    Q3 2012    vs. Q3     Q4 2011    vs. Q4       2012       2011      
                                                                                                  vs. 2011
                                     2012                    2011
Revenue      $ 233.6   $ 200.8   16     %    $ 227.0   3       %    $ 829.2   $ 896.1   (7      )%
Gross        $ 68.5    $ 61.6    11     %    $ 67.0    2       %    $ 237.6   $ 321.9   (26     )%
Profit
Gross        29.3    %  30.7    %  (1.4   )%   29.5    %  (0.2    )%   28.7    %  35.9    %  (7.2    )%
Margin %
Op           $ (3.6  )  $ (5.5  )  (35    )%   $ 5.4     (167    )%   $ (37.1 )  $ 59.0    (163    )%
(loss)/Inc
Net          $ (3.8  )  $ (11.2 )  (66    )%   $ 4.3     (188    )%   $ (26.2 )  $ 48.2    (154    )%
(loss)/Inc
Diluted     $ (0.02 )  $ (0.07 )  $ 0.05    $ 0.03    $ (0.05 )    $ (0.16 )  $ 0.28    $ (0.44 )
EPS
                                                                                                  
NON-GAAP RESULTS ^ A
                                                                                                  
             Three Months Ended                                           Year Ended
                                     Change                  Change
                                                                                                  Change
             Q4 2012    Q3 2012    vs. Q3     Q4 2011    vs. Q4       2012       2011      
                                                                                                  vs. 2011
                                     2012                    2011
Revenue      $ 233.6   $ 200.8   16     %    $ 227.0   3       %    $ 829.2   $ 896.1   (7      )%
Gross        $ 74.1    $ 65.3    13     %    $ 70.3    5       %    $ 254.9   $ 333.2   (23     )%
Profit
Gross        31.7    %  32.5    %  (0.8   )%   31.0    %  0.7     %    30.7    %  37.2    %  (6.5    )%
Margin %
Op Income    $ 7.5     $ 3.3     127    %    $ 13.4    (44     )%   $ 0.5     $ 88.7    (99     )%
Net Income   $ 6.2     $ 2.5     148    %    $ 13.3    (53     )%   $ (2.2  )  $ 87.3    (103    )%
Diluted     $ 0.04    $ 0.02    $ 0.02    $ 0.08    $ (0.04 )    $ (0.01 )  $ 0.51    $ (0.52 )
EPS
             
^A           Excludes stock based compensation charges, non-cash tax (benefit) expense, certain charges
             associated with acquisitions, and other specifically identified non-routine transactions.

Conference Call:

TriQuint will host a conference call this afternoon at 1:30 p.m. PST to
discuss the results for the quarter as well as our future expectations for the
Company. To access the conference call, please dial (888) 813-6582
domestically, or (706) 643-7082 internationally, approximately ten minutes
prior to the beginning of the call, using passcode 88651773. The call can also
be heard via webcast accessed through the “Investors” section of TriQuint's
web site at: http://invest.triquint.com/. A replay of the conference call will
be available until February 13, 2013.

Non-GAAP Financial Measures:

This press release provides financial measures for non-GAAP net income,
diluted earnings per share, gross profit, gross margin, operating expenses and
operating income that exclude equity compensation expense, non-cash tax
(benefit) expense, certain charges associated with acquisitions, and other
specifically identified non-routine items, and are therefore not calculated in
accordance with accounting principles generally accepted in the United States
(“GAAP”). The non-cash tax (benefit) expense includes certain deferred tax
charges and benefits that do not result in a tax payment or tax refund.
Management believes that these non-GAAP financial measures provide meaningful
supplemental information regarding our performance that enhances management's
and investors' ability to evaluate TriQuint's operating results.

These non-GAAP financial measures are not intended to be used in isolation and
should not be considered a substitute for any other performance measure
determined in accordance with GAAP. Investors and potential investors are
cautioned that there are material limitations associated with the use of
non-GAAP financial measures as an analytical tool, including that other
companies may calculate similar non-GAAP financial measures differently than
we do, limiting their usefulness as a comparative tool. The Company
compensates for these limitations by providing specific information regarding
the GAAP amount excluded from the non-GAAP financial measures. The Company
further compensates for the limitations of our use of non-GAAP financial
measures by presenting comparable GAAP measures more prominently. Investors
and potential investors are encouraged to review the reconciliation of
non-GAAP financial measures contained within this press release with our GAAP
net income and net income per share.

Forward-Looking Statements:

This press release contains forward-looking statements made pursuant to the
Safe Harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements include statements regarding TriQuint's
anticipated revenues and non-GAAP net income per share, and strong demand in
the second half of 2013 and beyond. Actual results may vary materially from
those expressed or implied in the statements herein or from historical
results, due to changes in economic, business, competitive, technological
and/or regulatory factors, including TriQuint's performance; demand for
TriQuint's products; TriQuint's ability to develop new products, improve
yields, maintain product pricing and reduce costs; the impact on our costs and
customers of product reliability and scrap levels; TriQuint's ability to win
customers, increase market share and continue to provide expected levels of
inventory to customers; inventory levels in TriQuint's markets and market
conditions. Additional considerations and important risk factors are described
in TriQuint's reports on Form 10-K and 10-Q and other filings with the
Securities and Exchange Commission. These reports can be accessed at the SEC
web site, www.sec.gov. Except as required by law, TriQuint undertakes no
obligation to revise or publicly release the results of any revision to these
forward-looking statements.

A reader of this release should understand that it is not possible to predict
or identify all risk factors and should not consider the risk factors
described in TriQuint's filings with the Securities and Exchange Commission to
be a complete statement of all potential risks and uncertainties.

Facts About TriQuint

Founded in 1981, TriQuint Semiconductor (NASDAQ: TQNT) is a leading global
provider of innovative RF solutions and foundry services for the world's top
communications, defense and aerospace companies. People and organizations
around the world need real-time, all-the-time connections; TriQuint products
help reduce the cost and increase the performance of connected mobile devices
and the networks that deliver critical voice, data and video communications.
With the industry's broadest technology portfolio, recognized R&D leadership,
and expertise in high-volume manufacturing, TriQuint creates standard and
custom products using gallium arsenide (GaAs), gallium nitride (GaN), surface
acoustic wave (SAW) and bulk acoustic wave (BAW) technologies. The Company has
ISO9001-certified manufacturing facilities in the U.S., production in Costa
Rica, and design centers in North America and Germany. For more information,
visit www.triquint.com

TriQuint: Reach Further, Reach Faster™

TQNT-F


CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
                                                          
                                             December 31,    December 31,

                                             2012            2011
Assets
Current assets:
Cash and cash equivalents                    $ 116,653       $  116,305
Investments in marketable securities         22,305          46,006
Accounts receivable, net                     132,729         129,103
Inventories                                  138,246         151,577
Prepaid expenses                             8,938           7,051
Deferred tax assets, net                     12,530          11,857
Other current assets                         48,382         35,756
Total current assets                         479,783         497,655
Property, plant and equipment, net           448,741         469,943
Goodwill                                     4,391           3,376
Intangible assets, net                       23,163          22,732
Deferred tax assets – noncurrent, net        57,185          48,957
Other noncurrent assets, net                 40,415         12,605
Total assets                                 $ 1,053,678    $  1,055,268
                                                             
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable                             $ 65,388        $  67,812
Accrued payroll                              33,254          28,519
Other accrued liabilities                    15,132         9,901
Total current liabilities                    113,774         106,232
Long-term liabilities:
Long-term income tax liability               2,809           735
Cross-licensing liability                    12,818          —
Other long-term liabilities                  15,878         11,013
Total liabilities                            145,279         117,980
Stockholders' equity:
Common stock                                 161             166
Additional paid-in capital                   676,203         678,412
Accumulated other comprehensive income       (366        )   140
Retained earnings                            232,401        258,570
Total stockholders' equity                   908,399        937,288
Total liabilities and stockholders' equity   $ 1,053,678    $  1,055,268


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
                                                                     
                   Three Months Ended                       Year Ended
                   December      September     December      December      December
                   31,           29,           31,           31,           31,

                   2012          2012          2011          2012          2011
                                                                           
Revenues           $ 233,621     $ 200,821     $ 226,987     $ 829,174     $ 896,083
Cost of goods      165,165      139,208      159,948      591,578      574,152   
sold
Gross profit       68,456        61,613        67,039        237,596       321,931
                                                                           
Operating
expenses:
Research,
development and    44,453        40,871        35,992        160,483       146,902
engineering
Selling, general
and                27,569        26,264        23,364        106,642       96,779
administrative
Litigation         —            —            2,256        7,547        19,224    
expense
Total operating    72,022        67,135        61,612        274,672       262,905
expenses
                                                                       
Operating (loss)   (3,566    )   (5,522    )   5,427         (37,076   )   59,026
income
                                                                           
Other (expense)
income:
Interest income    45            58            44            241           293
Interest expense   (784      )   (666      )   (460      )   (2,112    )   (1,567    )
Recovery of        —             —             495           6,957         1,363
investment
Other, net         (53       )   23           35           116          (143      )
Other (expense)    (792      )   (585      )   114           5,202         (54       )
income, net
                                                                       
(Loss) income
before income      (4,358    )   (6,107    )   5,541         (31,874   )   58,972
tax
                                                                           
Income tax
(benefit)          (602      )   5,139        1,232        (5,705    )   10,822    
expense
Net (loss)         $ (3,756  )   $ (11,246 )   $ 4,309      $ (26,169 )   $ 48,150  
income
                   .
Per Share Data
Basic per share
net (loss)         $ (0.02   )   $ (0.07   )   $ 0.03        $ (0.16   )   $ 0.29
income
Diluted per
share net (loss)   $ (0.02   )   $ (0.07   )   $ 0.03        $ (0.16   )   $ 0.28
income
                                                                           
Weighted-average
shares
outstanding:
Basic              162,083       163,838       165,711       164,366       164,256
Diluted            162,083       163,838       168,753       164,366       172,510


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(% of revenue)
                                                                
                   Three Months Ended                    Year Ended        
                   December     September    December     December    December
                   31,          29,          31,          31,         31,

                   2012         2012         2011         2012        2011
                                                                      
Revenues           100.0  %     100.0  %     100.0  %     100.0  %    100.0 %
Cost of goods      70.7   %     69.3   %     70.5   %     71.3   %    64.1  %
sold
Gross profit       29.3   %     30.7   %     29.5   %     28.7   %    35.9  %
                                                                      
Operating
expenses:
Research,
development and    19.0   %     20.3   %     15.9   %     19.4   %    16.4  %
engineering
Selling, general
and                11.8   %     13.1   %     10.3   %     12.9   %    10.8  %
administrative
Litigation         —           —           0.9    %     0.9    %    2.1   %
expense
Total operating    30.8   %     33.4   %     27.1   %     33.2   %    29.3  %
expenses
                                                                  
Operating (loss)   (1.5   )%    (2.7   )%    2.4    %     (4.5   )%   6.6   %
income
                                                                      
Other income
(expense):
Interest income    0.0    %     0.0    %     0.0    %     0.1    %    0.0   %
Interest expense   (0.3   )%    (0.3   )%    (0.2   )%    (0.2   )%   (0.2  )%
Recovery of        —            —            0.2    %     0.8    %    0.2   %
investment
Other, net         (0.1   )%    0.0    %     0.0    %     0.0    %    0.0   %
Other (expense)    (0.4   )%    (0.3   )%    0.0    %     0.7    %    (0.0  )%
income, net
                                                                  
(Loss) income
before income      (1.9   )%    (3.0   )%    2.4    %     (3.8   )%   6.6   %
tax
                                                                      
Income tax
(benefit)          (0.3   )%    2.6    %     0.5    %     (0.6   )%   1.2   %
expense
Net (loss)         (1.6   )%    (5.6   )%    1.9    %     (3.2   )%   5.4   %
income


SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Unaudited)
(In thousands, except per share amounts and percentages)

               Three Months Ended                                             Year Ended
                December 31,         September 29,         December 31,         December 31,          December 31,
                                                                                                  
                2012                 2012                  2011                 2012                  2011
                (% of revenues)      (% of revenues)       (% of revenues)      (% of revenues)       (% of revenues)
GAAP GROSS      $ 68,456   29.3 %    $ 61,613    30.7 %    $ 67,039   29.5 %    $ 237,596   28.7 %    $ 321,931   35.9 %
PROFIT
Adjustment
for stock
based           2,544      1.1  %    2,549       1.3  %    2,207      1.0  %    9,021       1.1  %    6,918       0.8  %
compensation
charges
Adjustment
for             —          —         —           —         —          —         1,763       0.2  %    —           —
restructuring
charges
Adjustment
for
accelerated
depreciation    2,018      0.9  %    —           —         —          —         2,018       0.2  %    —           —
of certain
machinery and
equipment
Adjustment
for charges
associated      1,126     0.4  %    1,185      0.5  %    1,079     0.5  %    4,531      0.5  %    4,303      0.5  %
with
acquisitions
NON-GAAP        $ 74,144   31.7 %    $ 65,347    32.5 %    $ 70,325   31.0 %    $ 254,929   30.7 %    $ 333,152   37.2 %
GROSS PROFIT
                                                                                                                  
GAAP
OPERATING       $ 72,022   30.8 %    $ 67,135    33.4 %    $ 61,612   27.1 %    $ 274,672   33.2 %    $ 262,905   29.3 %
EXPENSES
Adjustment
for stock
based           (5,062   ) (2.2 )%   (4,815    ) (2.4 )%   (4,532   ) (2.0 )%   (20,204   ) (2.5 )%   (18,164   ) (2.0 )%
compensation
charges
Adjustment
for charges
associated      (312     ) (0.1 )%   (257      ) (0.1 )%   (202     ) (0.1 )%   (56       ) (0.1 )%   (326      ) —    
with
acquisitions
NON-GAAP
OPERATING       $ 66,648   28.5 %    $ 62,063    30.9 %    $ 56,878   25.0 %    $ 254,412   30.6 %    $ 244,415   27.3 %
EXPENSES
                                                                                                                  
GAAP
OPERATING       $ (3,566 ) (1.5 )%   $ (5,522  ) (2.7 )%   $ 5,427    2.4  %    $ (37,076 ) (4.5 )%   $ 59,026    6.6  %
(LOSS) INCOME
Adjustment
for stock
based           7,606      3.3  %    7,364       3.7  %    6,739      3.0  %    29,225      3.6  %    25,082      2.8  %
compensation
charges
Adjustment
for             —          —         —           —         —          —         1,763       0.2  %    —           —
restructuring
charges
Adjustment
for
accelerated
depreciation    2,018      0.9  %    —           —         —          —         2,018       0.2  %    —           —
of certain
machinery and
equipment
Adjustment
for charges
associated      1,438     0.5  %    1,442      0.6  %    1,281     0.6  %    4,587      0.6  %    4,629      0.5  %
with
acquisitions
NON-GAAP
OPERATING       $ 7,496    3.2  %    $ 3,284     1.6  %    $ 13,447   6.0  %    $ 517       0.1  %    $ 88,737    9.9  %
INCOME
                                                                                                                  
GAAP NET        $ (3,756 ) (1.6 )%   $ (11,246 ) (5.6 )%   $ 4,309    1.9  %    $ (26,169 ) (3.2 )%   $ 48,150    5.4  %
(LOSS) INCOME
Adjustment
for stock
based           7,606      3.3  %    7,364       3.7  %    6,739      3.0  %    29,225      3.6  %    25,082      2.8  %
compensation
charges
Adjustment
for             —          —         —           —         —          —         1,763       0.2  %    —           —
restructuring
charges
Adjustment
for
accelerated
depreciation    2,018      0.9  %    —           —         —          —         2,018       0.2  %    —           —
of certain
machinery and
equipment
Adjustment
for recovery    —          —         —           —         (495     ) (0.2 )%   (6,957    ) (0.9 )%   (1,363    ) (0.2 )%
of investment
Adjustment
for non-cash    (1,196   ) (0.5 )%   4,955       2.6  %    1,307      0.5  %    (6,801    ) (0.8 )%   10,552      1.2  %
tax (benefit)
expense
Adjustment
for charges
associated      1,540     0.6  %    1,442      0.6  %    1,402     0.6  %    4,715      0.6  %    4,833      0.5  %
with
acquisitions
NON-GAAP NET    $ 6,212    2.7  %    $ 2,515     1.3  %    $ 13,262   5.8  %    $ (2,206  ) (0.3 )%   $ 87,254    9.7  %
INCOME (LOSS)
                                                                                                                  
GAAP DILUTED
(LOSS)          $ (0.02  )           $ (0.07   )           $ 0.03               $ (0.16   )           $ 0.28
EARNINGS PER
SHARE
Adjustment
for stock
based           0.05                 0.04                  0.04                 0.18                  0.15
compensation
charges
Adjustment
for             —                    —                     —                    0.01                  —
restructuring
charges
Adjustment
for
accelerated
depreciation    0.01                 —                     —                    0.01                  —
of certain
machinery and
equipment
Adjustment
for recovery    —                    —                     0.00                 (0.04     )           (0.01     )
of investment
Adjustment
for non-cash    (0.01    )           0.04                  0.00                 (0.04     )           0.06
tax (benefit)
expense
Adjustment
for charges
associated      0.01                0.01                 0.01                0.03                 0.03      
with
acquisitions
NON-GAAP
DILUTED
EARNINGS        $ 0.04               $ 0.02                $ 0.08               $ (0.01   )           $ 0.51
(LOSS) PER
SHARE

Our earnings release contains forward looking estimates of non-GAAP diluted
earnings per share for the first quarter of 2013. We provide these non-GAAP
measures on a prospective basis for the same reasons that we provide them to
investors on a historical basis. The following table provides a reconciliation
of GAAP diluted earnings per share to non-GAAP diluted earnings per share for
Q1 2013 based on the mid-point of guidance.


Forward Looking GAAP Loss per Share                  $ (0.10 )
Adjustment for stock based compensation charges       0.05
Adjustment for non-cash tax (benefit) expense         (0.09   )
Adjustment for charges associated with acquisitions   0.01    
Forward Looking non-GAAP Diluted Loss per Share       $ (0.13 )

Contact:

TriQuint Semiconductor, Inc
VP of Finance & Administration, CFO
Steve Buhaly, +1-503-615-9401
sbuhaly@tqs.com
or
Media Contact:
TriQuint Semiconductor, Inc.
Sr Director, Marketing Comms
Brandi Frye, +1-503-615-9488
bfrye@tqs.com
 
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