TriQuint Announces Second Quarter 2013 Results

  TriQuint Announces Second Quarter 2013 Results

Business Wire

HILLSBORO, Ore. -- July 24, 2013

TriQuint Semiconductor, Inc. (NASDAQ: TQNT), a leading RF solutions supplier
and technology innovator, announces its financial results for the quarter
ending June29, 2013, including the following highlights:

  *Revenue for the quarter was $190.1 million
  *GAAP net loss for the quarter was $14.9 million, or $(0.09) per share
  *Non-GAAP net loss for the quarter was $10.9 million, or $(0.07) per share
  *Mobile Devices market revenue grew 12% sequentially and 5% over the same
    period a year ago
  *Repurchased 7.7 million shares for $51.1 million
  *Produced industry's first gallium nitride (GaN) transistors using
    GaN-on-diamond wafers
  *Accelerated GaN offerings with 15 new products and two new Foundry
    services
  *Introduced new chipsets for point-to-point radios serving 3G/4G cellular
    backhaul
  *Doubled BAW capacity compared to last year's levels

Commenting on the results, Ralph Quinsey, President and Chief Executive
Officer, stated “It is an exciting time for TriQuint. Our results exceeded our
April guidance, but more importantly, this marks the beginning of the next
phase of growth at TriQuint. In Q3 2013, I expect revenue to jump 30%
sequentially, bringing significantly improved margins and profitability. I
believe Q3 is the beginning of a stronger period of performance for TriQuint,
built on a differentiated strategy that is defensible and sustainable. Our
strategic focus is on innovation, technology and a comprehensive RF
capability. Our investments in proprietary GaN, BAW and advanced SAW are
examples of where we set ourselves apart from the competition and I believe
our Q3 outlook validates our path.”

Summary Financial Results for the Three Months Ended June29, 2013:

Revenue for the second quarter of 2013 was $190.1 million, up 7% from the
second quarter of 2012 and up 3% sequentially. Revenue grew in all three
markets from the second quarter of 2012.

Cash and investments decreased by $51.8 million to $89.3 million in the
quarter due primarily to the share buyback and planned growth in inventory.

GAAP

Gross margin for the second quarter of 2013 was 29.8%, up sequentially from
21.0% due to the absence of a now resolved Q1 quality issue, higher revenue,
higher factory utilization and better yields. Operating expenses for the
second quarter of 2013 were $73.1 million, consistent with the previous
quarter.

Net loss for the second quarter of 2013 was $14.9 million or $(0.09) per
share, compared with a net loss of $27.9 million, or $(0.17) per share, in the
previous quarter.

Non-GAAP

Gross margin for the second quarter was 31.3%, up sequentially from 22.8% due
to the absence of a now resolved Q1 quality issue, higher revenue, improved
factory utilization and better yields. Operating expenses for the quarter were
$69.6 million, up 2% sequentially.

Net loss for the second quarter of 2013 was $10.9 million, or $(0.07) per
share, improved sequentially from a net loss of $27.2 million or $(0.17) per
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 third quarter 2013 revenue will be between $245 million
and $255 million and is currently 90% booked to the midpoint of this guidance.
Non-GAAP gross margin is expected to be between 34% and 36%, driven primarily
by higher expected revenue. Third quarter non-GAAP net income is expected to
be between $0.09 and $0.11 per diluted share. Solid results in the second
quarter and our current expectation for the remainder of the year lead us to
believe non-GAAP earnings of at least $0.05 per diluted share for fiscal 2013
is a reasonable expectation.

Additional Information regarding June29, 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                                            Six Months Ended
                                    Change                 Change vs.                             Change vs.
            Q2 2013    Q1 2013    vs. Q1    Q2 2012    Q2 2012        Q2 2013     Q2 2012     Q2 2012
                                    2013
Revenue     $ 190.1    $ 184.2    3      %   $ 178.0   7       %      $ 374.3    $ 394.7    (5      )%
Gross       $ 56.7     $ 38.8     46     %   $ 44.9    26      %      $ 95.5     $ 107.5    (11     )%
Profit
Gross       29.8    %   21.0    %   8.8    %   25.2    %  4.6     %      25.5    %   27.2    %   (1.7    )%
Margin %
Operating   $ (16.4 )   $ (34.5 )   52     %   $ (24.4 )  33      %      $ (50.9 )   $ (28.0 )   (82     )%
Loss
Net Loss    $ (14.9 )   $ (27.9 )   47     %   $ (13.1 )  (14     )%     $ (42.8 )   $ (11.2 )   (282    )%
Loss per    $ (0.09 )   $ (0.17 )   $ 0.08    $ (0.08 )   $ (0.01 )      $ (0.27 )   $ (0.07 )   $ (0.20 )
share
                                                                                 
NON-GAAP RESULTS ^ A                                                                        
            Three Months Ended                                            Six Months Ended
                                    Change                 Change vs.                             Change vs.
            Q2 2013     Q1 2013     vs. Q1     Q2 2012     Q2 2012        Q2 2013     Q2 2012     Q2 2012
                                    2013
Revenue     $ 190.1    $ 184.2    3      %   $ 178.0    7       %      $ 374.3    $ 394.7    (5      )%
Gross       $ 59.5     $ 42.0     42     %   $ 49.7     20      %      $ 101.5    $ 115.4    (12     )%
Profit
Gross       31.3    %   22.8    %   8.5    %   27.9    %   3.4     %      27.1    %   29.2    %   (2.1    )%
Margin %
Operating   $ (10.1 )   $ (26.0 )   61     %   $ (14.7 )   31      %      $ (36.1 )   $ (10.3 )   (250    )%
Loss
Net Loss    $ (10.9 )   $ (27.2 )   60     %   $ (15.0 )   27      %      $ (38.2 )   $ (10.9 )   (250    )%
Loss per    $ (0.07 )   $ (0.17 )   $ 0.10    $ (0.09 )   $ 0.02        $ (0.24 )   $ (0.07 )   $ (0.17 )
share
            Excludes stock based compensation charges, non-cash tax
A           (benefit) 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 14965216. 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 July 30, 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 third quarter revenues, non-GAAP gross margin
and diluted earnings (loss) per share for the third quarter and for the year;
our bookings to revenue; and statements regarding steps that will lead
TriQuint back to growth and improved financial performance in fiscal 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)
                                                        
                                             June 29, 2013   December 31, 2012
Assets
Current assets:
  Cash and cash equivalents                  $ 74,543        $   116,653
  Investments in marketable securities       14,785          22,305
  Accounts receivable, net                   99,346          132,729
  Inventories                                170,678         138,246
  Prepaid expenses                           11,371          8,938
  Deferred tax assets, net                   13,586          12,530
  Other current assets                       39,909         48,382         
    Total current assets                     424,218         479,783
Property, plant and equipment, net           468,692         448,741
Goodwill                                     4,391           4,391
Intangible assets, net                       19,631          23,163
Deferred tax assets – noncurrent, net        67,374          57,185
Other noncurrent assets, net                 32,796         40,415         
    Total assets                             $ 1,017,102    $   1,053,678  
                                                             
Liabilities and Stockholders' Equity
Current liabilities:
  Credit facility borrowing                  $ 20,000        $   —
  Accounts payable                           73,774          65,388
  Accrued payroll                            38,116          33,254
  Other accrued liabilities                  13,000         15,132         
    Total current liabilities                144,890         113,774
Long-term liabilities:
  Long-term income tax liability             3,598           2,809
  Cross-licensing liability                  12,297          12,818
  Other long-term liabilities                16,090         15,878         
    Total liabilities                        176,875         145,279
Stockholders' equity:
  Common stock                               156             161
  Additional paid-in capital                 650,872         676,203
  Accumulated other comprehensive loss       (368        )   (366           )
  Retained earnings                          189,567        232,401        
    Total stockholders' equity               840,227        908,399        
    Total liabilities and stockholders'      $ 1,017,102    $   1,053,678  
    equity
                                                                            


TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
                                                                   
                   Three Months Ended                        Six Months Ended
                   June 29,      March 30,     June 30,      June 29,      June 30,
                   2013          2013          2012          2013          2012
                                                                           
Revenues           $ 190,103     $ 184,209     $ 178,002     $ 374,312     394,732
Cost of goods      133,384      145,437      133,064      278,821      287,205   
sold
  Gross profit     56,719        38,772        44,938        95,491        107,527
                                                                           
Operating
expenses:
  Research,
  development      47,107        46,071        38,084        93,178        75,158
  and
  engineering
  Selling,
  general and      25,989       27,241       31,270       53,230       60,356    
  administrative
       Total
       operating   73,096        73,312        69,354        146,408       135,514
       expenses
                                                                       
  Operating loss   (16,377   )   (34,540   )   (24,416   )   (50,917   )   (27,987   )
                                                                           
Other (expense)
income:
  Interest         38            38            89            76            138
  income
  Interest         (1,137    )   (1,139    )   (313      )   (2,276    )   (663      )
  expense
  Gain/recovery    421           —             4             421           6,957
  of investment
  Other, net       (85       )   (309      )   35           (394      )   145       
       Other
       (expense)   (763      )   (1,410    )   (185      )   (2,173    )   6,577
       income,
       net
                                                                       
Loss before        (17,140   )   (35,950   )   (24,601   )   (53,090   )   (21,410   )
income tax
                                                                           
  Income tax       (2,255    )   (8,001    )   (11,551   )   (10,256   )   (10,243   )
  benefit
Net loss           $ (14,885 )   $ (27,949 )   $ (13,050 )   $ (42,834 )   $ (11,167 )
                                                                           
Per Share
Data:
  Basic per        $ (0.09   )   $ (0.17   )   $ (0.08   )   $ (0.27   )   $ (0.07   )
  share net loss
  Diluted per      $ (0.09   )   $ (0.17   )   $ (0.08   )   $ (0.27   )   $ (0.07   )
  share net loss
                                                                           
Weighted-average
shares
outstanding:
  Basic            159,347       160,758       165,355       160,044       165,796
  Diluted          159,347       160,758       165,355       160,044       165,796
                                                                                     

                                                                            
TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(% of revenue)
                                                              
                      Three Months Ended                  Six Months Ended 
                      June 29,     March 30,    June 30,   June 29,   June 30,
                      2013         2013         2012       2013       2012
                                                                      
Revenues              100.0  %     100.0  %     100.0 %    100.0 %    100.0 %
Cost of goods         70.2   %     79.0   %     74.8  %    74.5  %    72.8  %
sold
  Gross profit        29.8   %     21.0   %     25.2  %    25.5  %    27.2  %
                                                                      
Operating
expenses:
  Research,
  development and     24.8   %     25.0   %     21.4  %    24.9  %    19.0  %
  engineering
  Selling, general
  and                 13.6   %     14.8   %     17.5  %    14.2  %    15.3  %
  administrative
        Total
        operating     38.4   %     39.8   %     38.9  %    39.1  %    34.3  %
        expenses
                                                                  
  Operating loss      (8.6   )%    (18.8  )%    (13.7 )%   (13.6 )%   (7.1  )%
                                                                      
Other (expense)
income:
  Interest            0.0    %     0.0    %     0.0   %    0.0   %    0.0   %
  income
  Interest            (0.6   )%    (0.6   )%    (0.2  )%   (0.6  )%   (0.2  )%
  expense
  Gain/recovery of    0.2    %     —      %     0.0   %    0.1   %    1.8   %
  investment
  Other, net          (0.0   )%    (0.2   )%    0.1   %    (0.1  )%   0.1   %
        Other
        (expense)     (0.4   )%    (0.8   )%    (0.1  )%   (0.6  )%   1.7   %
        income, net
                                                                  
Loss before income    (9.0   )%    (19.6  )%    (13.8 )%   (14.2 )%   (5.4  )%
tax
                                                                      
  Income tax          (1.2   )%    (4.4   )%    (6.5  )%   (2.8  )%   (2.6  )%
  benefit
Net loss              (7.8   )%    (15.2  )%    (7.3  )%   (11.4 )%   (2.8  )%
                                                                            

                                                                                                                                        
TriQuint Semiconductor, Inc.
SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Unaudited)
(Dollars in thousands, except per share amounts)
              Three Months Ended                                                      Six Months Ended                            
                  June 29, 2013         March 30, 2013         June 30, 2012           June 29, 2013          June 30, 2012      
                  (% of revenues)         (% of revenues)          (% of revenues)          (% of revenues)          (% of revenues)
GAAP GROSS        $ 56,719     29.8 %    $ 38,772     21.0  %    $ 44,938     25.2  %    $ 95,491     25.5  %    $ 107,527    27.2 %
PROFIT
  Adjustment
  for stock
  based           1,570         0.8  %    2,036         1.1   %    1,823         1.0   %    3,606         1.0   %    3,929         1.0  %
  compensation
  charges
  Adjustment
  for
  accelerated
  depreciation    —             —    %    —             —     %    1,763         1.0   %    —             —     %    1,763         0.5  %
  of certain
  machinery and
  equipment
  Adjustment
  for charges
  associated      1,202        0.7  %    1,208        0.7   %    1,126        0.7   %    2,410        0.6   %    2,221        0.5  %
  with
  acquisitions
NON-GAAP GROSS    $ 59,491      31.3 %    $ 42,016      22.8  %    $ 49,650      27.9  %    101,507       27.1  %    115,440       29.2 %
PROFIT
                                                                                                                                   
GAAP OPERATING    $ 73,096      38.4 %    $ 73,312      39.8  %    $ 69,354      38.9  %    $ 146,408     39.1  %    $ 135,514     34.3 %
EXPENSES
  Adjustment
  for stock
  based           (5,623    )   (3.0 )%   (4,987    )   (2.7  )%   (5,735    )   (3.2  )%   (10,610   )   (2.8  )%   (10,326   )   (2.6 )%
  compensation
  charges
  Adjustment
  for charges
  associated      2,108        1.2  %    (314      )   (0.2  )%   714          0.4   %    1,794        0.5   %    512          0.1  %
  with
  acquisitions
NON-GAAP
OPERATING         $ 69,581      36.6 %    $ 68,011      36.9  %    $ 64,333      36.1  %    $ 137,592     36.8  %    $ 125,700     31.8 %
EXPENSES
                                                                                                                                   
GAAP OPERATING    $ (16,377 )   (8.6 )%   $ (34,540 )   (18.8 )%   $ (24,416 )   (13.7 )%   $ (50,917 )   (13.6 )%   $ (27,987 )   (7.1 )%
LOSS
  Adjustment
  for stock
  based           7,193         3.8  %    7,023         3.8   %    7,558         4.2   %    14,216        3.8   %    14,255        3.6  %
  compensation
  charges
  Adjustment
  for
  accelerated
  depreciation    —             —    %    —             —     %    1,763         1.0   %    —             —     %    1,763         0.5  %
  of certain
  machinery and
  equipment
  Adjustment
  for charges
  associated      (906      )   (0.5 )%   1,522        0.9   %    412          0.3   %    616          0.2   %    1,709        0.4  %
  with
  acquisitions
NON-GAAP          $ (10,090 )   (5.3 )%   $ (25,995 )   (14.1 )%   $ (14,683 )   (8.2  )%   $ (36,085 )   (9.6  )%   $ (10,260 )   (2.6 )%
OPERATING LOSS
                                                                                                                                   
GAAP NET LOSS     $ (14,885 )   (7.8 )%   $ (27,949 )   (15.2 )%   $ (13,050 )   (7.3  )%   $ (42,834 )   (11.4 )%   $ (11,167 )   (2.8 )%
  Adjustment
  for stock
  based           7,193         3.8  %    7,023         3.8   %    7,558         4.2   %    14,216        3.8   %    14,255        3.6  %
  compensation
  charges
  Adjustment
  for
  accelerated
  depreciation    —             —    %    —             —     %    1,763         1.0   %    —             —     %    1,763         0.5  %
  of certain
  machinery and
  equipment
  Adjustment
  for             (421      )   (0.2 )%   —             —     %    (4        )   —     %    (421      )   (0.1  )%   (6,957    )   (1.8 )%
  gain/recovery
  of investment
  Adjustment
  for non-cash    (2,413    )   (1.4 )%   (8,311    )   (4.5  )%   (11,703   )   (6.6  )%   (10,725   )   (2.9  )%   (10,560   )   (2.8 )%
  tax benefit
  Adjustment
  for charges
  associated      (421      )   (0.2 )%   2,012        1.1   %    412          0.3   %    1,591        0.4   %    1,735        0.5  %
  with
  acquisitions
NON-GAAP NET      $ (10,947 )   (5.8 )%   $ (27,225 )   (14.8 )%   $ (15,024 )   (8.4  )%   $ (38,173 )   (10.2 )%   $ (10,931 )   (2.8 )%
LOSS
                                                                                                                                   
GAAP DILUTED
(LOSS) EARNINGS   $ (0.09   )             $ (0.17   )              $ (0.08   )              $ (0.27   )              (0.07     )
PER SHARE
  Adjustment
  for stock
  based           0.04                    0.04                     0.05                     0.09                     0.09
  compensation
  charges
  Adjustment
  for
  accelerated
  depreciation    —                       —                        0.01                     —                        0.01
  of certain
  machinery and
  equipment
  Adjustment
  for             (0.00     )             —                        (0.00     )              (0.00     )              (0.04     )
  gain/recovery
  of investment
  Adjustment
  for non-cash    (0.02     )             (0.05     )              (0.07     )              (0.07     )              (0.07     )
  tax benefit
  Adjustment
  for charges
  associated      0.00                   0.01                    0.00                    0.01                    0.01      
  with
  acquisitions
NON-GAAP
DILUTED LOSS      $ (0.07   )             $ (0.17   )              $ (0.09   )              $ (0.24   )              $ (0.07   )
PER SHARE
                                                                                                                                   

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

Forward Looking Q3 GAAP Gross Margin                    33.5    %
  Adjustment for stock based compensation charges       1.0     %
   Adjustment for charges associated with acquisitions   0.5     %
Forward Looking Q3 non-GAAP Gross Margin                 35.0    %
   
Forward Looking Q3 GAAP Net Income per Share             $ —
   Adjustment for stock based compensation charges       0.04
   Adjustment for non-cash tax expense                   0.05
   Adjustment for charges associated with acquisitions   0.01    
Forward Looking Q3 non-GAAP Net Income per Share         $ 0.10
                                                         
Forward Looking 2013 GAAP Net Income per Share           $ (0.15 )
   Adjustment for stock based compensation charges       0.18
   Adjustment for non-cash tax expense                   (0.01   )
   Adjustment for charges associated with acquisitions   0.03    
Forward Looking 2013 non-GAAP Net Income per Share       $ 0.05
                                                                 

Contact:

TriQuint Semiconductor, Inc.
Steve Buhaly
VP of Finance & Administration, CFO
Tel: +1-503-615-9401
E-mail: steve.buhaly@triquint.com
or
TriQuint Semiconductor, Inc.
Grant Brown
Director, Investor Relations
Tel: +1-503-615-9413
E-mail: grant.brown@triquint.com
or
TriQuint Semiconductor, Inc.
Media Contact: Brandi Frye
Sr. Director, Corporate Communications
Tel: +1-503-615-9488
E-mail: brandi.frye@triquint.com