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TriQuint Announces First Quarter 2013 Results



  TriQuint Announces First Quarter 2013 Results

Business Wire

HILLSBORO, Ore. -- April 24, 2013

TriQuint Semiconductor, Inc. (NASDAQ: TQNT), a leading RF solutions supplier
and technology innovator, announces its financial results for the quarter
ended March 30, 2013, including the following highlights:

  * Revenue for the quarter was $184.2 million
  * GAAP net loss for the quarter was $27.9 million, or $(0.17) per share
  * Non-GAAP net loss for the quarter was $27.2 million, or $(0.17) per share
  * Received the 2013 CS Industry Award for GaN thermal management
    breakthroughs
  * Released 5 new Transimpedance Amplifiers for Optical market
  * Launched premium TC-SAW and BAW filters to support 4G and Wi-Fi
    Coexistence
  * Healthy design win traction with highly efficient MMPAs at major OEMs

Commenting on the results for the quarter ended March 30, 2013, Ralph Quinsey,
President and Chief Executive Officer, stated, “Q1 results, while
disappointing, should be our low quarter for 2013. We have healthy design win
traction and I expect strong second half revenue will improve utilization and
push us back into profitability for the full year. We are well positioned in
each of our markets to regain growth and margin momentum.”

Summary Financial Results for the Three Months Ended March 30, 2013:

Revenue for the first quarter of 2013 was $184.2 million, down 15% from the
first quarter of 2012 and down 21% sequentially. Mobile Device market revenue
declined 30%, Networks grew 2% and Defense was down 16%, in each case
sequentially.

GAAP

Gross margin for the first quarter of 2013 was 21.0%, down sequentially from
29.3% in the fourth quarter of 2012 and down 28.9% from the first quarter of
2012 due to lower revenue and about $5 million in charges from a now resolved
quality issue.

Operating expenses for the first quarter of 2013 were $73.3 million, or 40% of
revenue, up from $72.0 million in the previous quarter and $66.2 million for
the same period in 2012. Increased R&D spending drove the change.

Net loss for the first quarter of 2013 was $27.9 million or $(0.17) per share,
compared with a net loss of $3.8 million, or $(0.02) per share, in the
previous quarter and net income of $1.9 million or $0.01 per diluted share for
the three months ended March 31, 2012.

Cash and investments increased by $2.2 million to $141.1 million in the
quarter.

Non-GAAP

Gross margin for the first quarter was 22.8%, down sequentially from 31.7% and
down from 30.4% for the same period in 2012. Lower revenue and about $5
million in charges from a now resolved quality issue drove the decline.

Operating expenses for the quarter were $68.0 million, up $1.4 million
sequentially. Increased R&D spending drove the change.

Net loss for the first quarter of 2013 was $27.2 million, or $(0.17) per
share, down sequentially from net income of $6.2 million or $0.04 per diluted
share, and down from net income of $4.1 million or $0.02 per diluted share for
the three months ended March 31, 2012.

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 second quarter 2013 revenue will be between $185 million
and $190 million. Non-GAAP gross margin is expected to be between 27% and 29%
with higher factory utilization and the absence of the first quarter quality
issue driving the expected sequential improvement. Second quarter non-GAAP net
loss per share is expected to be between $(0.10) and $(0.12) per share. The
Company is 92% booked to the midpoint of revenue guidance.

Additional Information regarding March 30, 2013 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
              
                                       Change                       Change
             Q1 2013      Q4 2012      vs.              Q1 2012     vs.
                                                                    Q1 2012
                                       Q4 2012
Revenue      $  184.2     $  233.6     (21       )%     $ 216.7     (15     )%
Gross        $  38.8      $  68.5      (43       )%     $ 62.6      (38     )%
Profit
Gross        21.0      %  29.3      %  (8.3      )%     28.9    %   (7.9    )%
Margin %
Operating    $  (34.5  )  $  (3.6   )  (858      )%     $ (3.6  )   (858    )%
Loss
Net (Loss)   $  (27.9  )  $  (3.8   )  (634      )%     $ 1.9       (1,568  )%
Income
Diluted      $  (0.17  )  $  (0.02  )  $  (0.15  )      $ 0.01      $ (0.18 )
per share
                                                                     
NON-GAAP RESULTS ^ A
                                                                     
             Three Months Ended
              
                                       Change                       Change
             Q1 2013      Q4 2012      vs.              Q1 2012     vs.
                                       Q4 2012                      Q1 2012
Revenue      $  184.2     $  233.6     (21       )%     $ 216.7     (15     )%
Gross        $  42.0      $  74.1      (43       )%     $ 65.8      (36     )%
Profit
Gross        22.8      %  31.7      %  (8.9      )%     30.4    %   (7.6    )%
Margin %
Op (Loss)    $  (26.0  )  $  7.5       (447      )%     $ 4.4       (691    )%
Income
Net (Loss)   $  (27.2  )  $  6.2       (539      )%     $ 4.1       (763    )%
Income
Diluted      $  (0.17  )  $  0.04      $  (0.21  )      $ 0.02      $ (0.19 )
per share
             Excludes stock based compensation charges, non-cash tax (benefit)
A            expense, certain entries 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. PDT to
discuss the results for the quarter and 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 24313821. 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 May 1, 2013.

Non-GAAP Financial Measures:

This press release provides financial measures for non-GAAP net income (loss),
diluted earnings (loss) per share, gross profit, gross margin, operating
expenses and operating income (loss) that exclude equity compensation expense,
non-cash tax (benefit) expense, certain entries 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 charges associated with acquisitions reflect the
amortization of intangible and tangible assets recorded in connection with
acquisition accounting and charged to the income statement. The non-cash tax
(benefit) expense excludes 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 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 under "Outlook"
regarding TriQuint's anticipated second quarter revenues, non-GAAP gross
margin and net loss per share; our bookings to revenue; and statements
regarding steps that will lead TriQuint back to growth and improved financial
performance in 2013. These forward-looking statements are statements of
management's opinion and are subject to various assumptions, risks,
uncertainties and changes in circumstances. 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. More detailed information about risk factors that
may affect actual results are set forth 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 1985, TriQuint Semiconductor (NASDAQ: TQNT) is a leading RF
solutions supplier and technology innovator 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

TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
                                                                
                                                March 30, 2013   December 31,
                                                                 2012
Assets
Current assets:
  Cash and cash equivalents                     $  120,679       $ 116,653
  Investments in marketable securities          20,461           22,305
  Accounts receivable, net                      106,076          132,729
  Inventories                                   136,177          138,246
  Prepaid expenses                              11,511           8,938
  Deferred tax assets, net                      13,296           12,530
  Other current assets                          48,796           48,382       
    Total current assets                        456,996          479,783
Property, plant and equipment, net              463,746          448,741
Goodwill                                        4,391            4,391
Intangible assets, net                          21,397           23,163
Deferred tax assets – noncurrent, net           65,296           57,185
Other noncurrent assets, net                    36,921           40,415       
    Total assets                                $  1,048,747     $ 1,053,678  
                                                                  
Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable                              $  77,752        $ 65,388
  Accrued payroll                               33,929           33,254
  Other accrued liabilities                     15,722           15,132       
    Total current liabilities                   127,403          113,774
Long-term liabilities:
  Long-term income tax liability                3,366            2,809
  Cross-licensing liability                     12,560           12,818
  Other long-term liabilities                   17,010           15,878       
    Total liabilities                           160,339          145,279
Stockholders' equity:
  Common stock                                  161              161
  Additional paid-in capital                    684,159          676,203
  Accumulated other comprehensive loss          (364         )   (366        )
  Retained earnings                             204,452          232,401      
    Total stockholders' equity                  888,408          908,399      
    Total liabilities and stockholders'         $  1,048,747     $ 1,053,678  
    equity
                                                                              

TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
                                                                  
                                      Three Months Ended
                                      March 30,     December 31,   March 31,
                                      2013          2012           2012
                                                                    
Revenues                              $ 184,209     $  233,621     $ 216,730
Cost of goods sold                    145,437       165,165        154,141    
  Gross profit                        38,772        68,456         62,589
                                                                    
Operating expenses:
  Research, development and           46,071        44,453         37,074
  engineering
  Selling, general and                27,241        27,569         29,086     
  administrative
          Total operating expenses    73,312        72,022         66,160
                                                                    
  Operating loss                      (34,540   )   (3,566     )   (3,571    )
                                                                    
Other (expense) income:
  Interest income                     38            45             49
  Interest expense                    (1,139    )   (784       )   (350      )
  Gain/recovery of investment         —             —              6,953
  Other, net                          (309      )   (53        )   110        
          Other (expense) income,     (1,410    )   (792       )   6,762
          net
                                                                    
(Loss) income before income tax       (35,950   )   (4,358     )   3,191
                                                                    
  Income tax (benefit) expense        (8,001    )   (602       )   1,308      
Net (loss) income                     $ (27,949 )   $  (3,756  )   $ 1,883    
                                                                    
Per Share Data:
  Basic per share net (loss) income   $ (0.17   )   $  (0.02   )   $ 0.01
  Diluted per share net (loss)        $ (0.17   )   $  (0.02   )   $ 0.01
  income
                                                                    
Weighted-average shares
outstanding:
  Basic                               160,758       162,083        166,237
  Diluted                             160,758       162,083        170,566
                                                                              

TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(% of revenue)
                                                                   
                                    Three Months Ended                      
                                    March 30, 2013   December 31,   March 31,
                                                     2012           2012
                                                                     
Revenues                            100.0    %       100.0   %      100.0  %
Cost of goods sold                  79.0     %       70.7    %      71.1   %
  Gross profit                      21.0     %       29.3    %      28.9   %
                                                                     
Operating expenses:
  Research, development and         25.0     %       19.0    %      17.1   %
  engineering
  Selling, general and              14.8     %       11.8    %      13.4   %
  administrative
             Total operating        39.8     %       30.8    %      30.5   %
             expenses
                                                                     
  Operating loss                    (18.8    )%      (1.5    )%     (1.6   )%
                                                                     
Other (expense) income:
  Interest income                   0.0      %       0.0     %      0.0    %
  Interest expense                  (0.6     )%      (0.3    )%     (0.2   )%
  Gain/recovery of investment       —        %       —       %      3.2    %
  Other, net                        (0.2     )%      (0.1    )%     0.1    %
             Other (expense)        (0.8     )%      (0.4    )%     3.1    %
             income, net
                                                                     
(Loss) income before income tax     (19.6    )%      (1.9    )%     1.5    %
                                                                     
  Income tax (benefit) expense      (4.4     )%      (0.3    )%     0.6    %
Net (loss) income                   (15.2    )%      (1.6    )%     0.9    %
                                                                            

TriQuint Semiconductor, Inc.
SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Unaudited)
(Dollars in thousands, except per share amounts)
                  Three Months Ended                                           
                  March 30, 2013         December 31,         March 31, 2012   
                                         2012
                  (% of revenues)        (% of revenues)      (% of revenues)
GAAP GROSS        $ 38,772    21.0  %    $ 68,456   29.3 %    $ 62,589   28.9 %
PROFIT
  Adjustment
  for stock
  based           2,036       1.1   %    2,544      1.1  %    2,106      1.0  %
  compensation
  charges
  Adjustment
  for
  accelerated
  depreciation    —           —     %    2,018      0.9  %    —          —    %
  of certain
  machinery and
  equipment
  Adjustment
  for charges
  associated      1,208       0.7   %    1,126      0.4  %    1,095      0.5  %
  with
  acquisitions
NON-GAAP GROSS    $ 42,016    22.8  %    $ 74,144   31.7 %    $ 65,790   30.4 %
PROFIT
                                                                          
GAAP OPERATING    $ 73,312    39.8  %    $ 72,022   30.8 %    $ 66,160   30.5 %
EXPENSES
  Adjustment
  for stock
  based           (4,987    ) (2.7  )%   (5,062   ) (2.2 )%   (4,591   ) (2.1 )%
  compensation
  charges
  Adjustment
  for charges
  associated      (314      ) (0.2  )%   (312     ) (0.1 )%   (202     ) (0.1 )%
  with
  acquisitions
NON-GAAP
OPERATING         $ 68,011    36.9  %    $ 66,648   28.5 %    $ 61,367   28.3 %
EXPENSES
                                                                          
GAAP OPERATING    $ (34,540 ) (18.8 )%   $ (3,566 ) (1.5 )%   $ (3,571 ) (1.6 )%
LOSS
  Adjustment
  for stock
  based           7,023       3.8   %    7,606      3.3  %    6,697      3.1  %
  compensation
  charges
  Adjustment
  for
  accelerated
  depreciation    —           —     %    2,018      0.9  %    —          —    %
  of certain
  machinery and
  equipment
  Adjustment
  for charges
  associated      1,522       0.9   %    1,438      0.5  %    1,297      0.6  %
  with
  acquisitions
NON-GAAP
OPERATING         $ (25,995 ) (14.1 )%   $ 7,496    3.2  %    $ 4,423    2.1  %
(LOSS) INCOME
                                                                          
GAAP NET (LOSS)   $ (27,949 ) (15.2 )%   $ (3,756 ) (1.6 )%   $ 1,883    0.9  %
INCOME
  Adjustment
  for stock
  based           7,023       3.8   %    7,606      3.3  %    6,697      3.1  %
  compensation
  charges
  Adjustment
  for
  accelerated
  depreciation    —           —     %    2,018      0.9  %    —          —    %
  of certain
  machinery and
  equipment
  Adjustment
  for             —           —     %    —          —    %    (6,953   ) (3.2 )%
  gain/recovery
  of investment
  Adjustment
  for non-cash    (8,311    ) (4.5  )%   (1,196   ) (0.5 )%   1,143      0.5  %
  tax (benefit)
  expense
  Adjustment
  for charges
  associated      2,012       1.1   %    1,540      0.6  %    1,323      0.6  %
  with
  acquisitions
NON-GAAP NET      $ (27,225 ) (14.8 )%   $ 6,212    2.7  %    $ 4,093    1.9  %
(LOSS) INCOME
                                                                          
GAAP DILUTED
(LOSS) EARNINGS   $ (0.17   )            $ (0.02  )           $ 0.01
PER SHARE
  Adjustment
  for stock
  based           0.04                   0.05                 0.04
  compensation
  charges
  Adjustment
  for
  accelerated
  depreciation    —                      0.01                 —
  of certain
  machinery and
  equipment
  Adjustment
  for             —                      —                    (0.04    )
  gain/recovery
  of investment
  Adjustment
  for non-cash    (0.05     )            (0.01    )           0.00
  tax (benefit)
  expense
  Adjustment
  for charges
  associated      0.01                   0.01                 0.01      
  with
  acquisitions
NON-GAAP
DILUTED (LOSS)    $ (0.17   )            $ 0.04               $ 0.02
EARNINGS PER
SHARE

Our earnings release contains forward looking estimates of non-GAAP gross
margin and earnings per share for the second 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 gross margin and loss per share to non-GAAP gross
margin and earnings per share for the second quarter of 2013 based on the
mid-point of guidance.

Forward Looking GAAP Gross Margin                       26.5    %
  Adjustment for stock based compensation charges       1.0     %
  Adjustment for charges associated with acquisitions   0.5     %
Forward Looking non-GAAP Gross Margin                   28.0    %
   
Forward Looking GAAP Loss per Share                     $ (0.13 )
  Adjustment for stock based compensation charges       0.05
  Adjustment for non-cash tax (benefit) expense         (0.04   )
  Adjustment for charges associated with acquisitions   0.01     
Forward Looking non-GAAP Loss per Share                 $ (0.11 )

Contact:

TriQuint Semiconductor, Inc
VP of Finance & Administration, CFO
Steve Buhaly, +1-503-615-9401
steve.buhaly@triquint.com
or
Media Contact:
TriQuint Semiconductor, Inc.
Sr. Director, Corporate Communications
Brandi Frye, +1-503-615-9488
brandi.frye@triquint.com
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