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TriQuint Announces First Quarter 2014 Results

  TriQuint Announces First Quarter 2014 Results

Business Wire

HILLSBORO, Ore. -- April 23, 2014

TriQuint Semiconductor, Inc. (NASDAQ: TQNT), a leading RF solutions supplier
and technology innovator, announces its financial results for the quarter
ended March29, 2014, including the following highlights:

  *Revenue was $177.6 million with a strong book-to-bill ratio of 1.22
  *GAAP gross margin was 33% and net loss was $(0.12) per share
  *Non-GAAP gross margin was 35% and net loss was $(0.06) per share
  *Received orders for 4th S-Band radar system
  *Strong book-to-bill of 1.74 for discrete premium filters
  *New MMPAs with envelope tracking captured design wins in Korea & China
  *Introduced 130 Watt Spatium^TM Solid State Power Amplifier for Ka-Band
    Satellite Communications
  *Base station product revenue more than doubled from Q1 2013 ^1
  *Received Supplier Excellence Award for Outstanding Performance from Hughes
    Network Systems, LLC

Commenting on the results, Ralph Quinsey, President and Chief Executive
Officer, stated, “Better product mix and successful factory cost management
led to a substantially better gross margin compared to Q1 of 2013 and earnings
well above analyst expectations. Demand for Q2 remains healthy as we
transition into our seasonally stronger quarters and I am confident we
continue to be on track to deliver significantly improved financial results in
2014. Merger preparation and integration planning with RFMD has successfully
ramped up in anticipation of a second half 2014 close.”

^1 Excludes commercial foundry revenue

Summary Financial Results for the Three Months Ended March29, 2014:

Revenue for the first quarter of 2014 was $177.6 million, down 4% from the
first quarter of 2013 and 34% sequentially. First quarter revenue declined 4%
from the first quarter of 2013, driven primarily by the defense market.

Cash and investments increased by $84.5 million to $163.5 million driven by a
reduction in accounts receivable and cash proceeds from employee stock option
exercises.

GAAP

Gross margin for the first quarter of 2014 was 33.2%, up sharply from 21.0% in
the first quarter of 2013 due to product mix and better factory cost
management. Operating expenses for the first quarter of 2014 were $79.0
million, up slightly sequentially.

Net loss for the first quarter of 2014 was $19.1 million or $(0.12) per
diluted share, compared with a net loss of $27.9 million or $(0.17) per share
in Q1 of 2013.

Non-GAAP

Gross margin for the first quarter was 35.3%, up sharply from 22.8% in the
first quarter of 2013. Operating expenses for the quarter were $70.9 million,
down slightly sequentially.

Net loss for the first quarter of 2014 was $9.4 million, or $(0.06) per
diluted share, compared with a net loss of $27.2 million or $(0.17) per share
in Q1 of 2013.

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 is fully booked to our second quarter 2014 revenue expectation of
$215 million to $225 million. Non-GAAP gross margin is expected to be between
37% and 38%. Second quarter non-GAAP net income is expected to be between
$0.06 and $0.08 on an estimated 180 million diluted shares. Both revenue and
earnings guidance are well above current analyst estimates and indicate robust
sequential improvement.

Additional Information Regarding March29, 2014 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
table later in this press release.


GAAP RESULTS
                                                            
                Three Months Ended
                                        Change                   Change
                                            vs. Q4                       vs. Q1
                Q1 2014     Q4 2013     2013         Q1 2013     2013
Revenue         $ 177.6    $ 267.7    (34     )%     $ 184.2    (4     )%
Gross           $ 59.1     $ 70.0     (16     )%     $ 38.8     52     %
Profit
Gross           33.2    %   26.1    %   7.1     %      21.0    %   12.2   %
Margin %
Operating       $ (20.0 )   $ (8.5  )   (135    )%     $ (34.5 )   42     %
Loss
Net Loss        $ (19.1 )   $ (8.7  )   (120    )%     $ (27.9 )   32     %
Loss per        $ (0.12 )   $ (0.05 )   $ (0.07 )      $ (0.17 )   $ 0.05 
share
                                                           
NON-GAAP RESULTS ^ A
                                                               
                Three Months Ended
                                            Change                       Change
                                            vs. Q4                       vs. Q1
                Q1 2014     Q4 2013     2013         Q1 2013     2013
Revenue         $ 177.6    $ 267.7    (34     )%     $ 184.2    (4     )%
Gross           $ 62.6     $ 99.6     (37     )%     $ 42.0     49     %
Profit
Gross           35.3    %   37.2    %   (1.9    )%     22.8    %   12.5   %
Margin %
Op (Loss)       $ (8.3  )   $ 28.4     (129    )%     $ (26.0 )   68     %
Income
Net
(Loss)          $ (9.4  )   $ 26.4     (136    )%     $ (27.2 )   65     %
Income
(Loss)
Inc per         $ (0.06 )   $ 0.16     $ (0.22 )      $ (0.17 )   $ 0.11 
share
                Excludes stock based compensation charges, non-cash tax benefit,
A               certain entries associated with mergers and 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 8679181. 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 7, 2014.

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 expense (benefit), certain entries associated with mergers and
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,
transaction costs and changes to the earnout liability estimates recorded in
connection with acquisition accounting and charged to the income statement.
The non-cash tax expense (benefit) excludes certain deferred tax charges and
benefits that do not currently 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 regarding seasonally
stronger demand in our second quarter, improved financial results in 2014; and
statements under "Outlook" regarding anticipated second quarter revenues,
non-GAAP gross margin and non-GAAP diluted earnings per share for the second
quarter and our bookings to anticipated revenue. 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
ISO 9001-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 29, 2014     December 31, 2013
Assets
Current assets:
   Cash and cash equivalents              $   163,522        $    79,026
   Accounts receivable, net               124,038            177,114
   Inventories                            162,969            159,488
   Prepaid expenses                       12,442             13,617
   Deferred tax assets, net               15,015             12,787
   Other current assets                   29,624             39,960
      Total current assets                507,610            481,992
Property, plant and equipment, net        419,829            420,363
Goodwill                                  13,519             13,519
Intangible assets, net                    21,826             23,510
Deferred tax assets – noncurrent,         70,412             61,554
net
Other noncurrent assets, net              33,915             32,319
      Total assets                        $   1,067,111      $    1,033,257
                                                             
Liabilities and Stockholders'
Equity
Current liabilities:
   Accounts payable                       $   53,665         $    52,472
   Accrued payroll                        37,024             39,743
   Other accrued liabilities              16,044             15,893
      Total current liabilities           106,733            108,108
Long-term liabilities:
   Long-term income tax liability         2,152              2,062
   Cross-licensing liability              11,985             11,752
   Other long-term liabilities            16,819             16,782
      Total liabilities                   137,689            138,704
Stockholders' equity:
   Common stock                           169                162
   Additional paid-in capital             753,834            699,903
   Accumulated other comprehensive        95                 95
   income
   Retained earnings                      175,324            194,393
      Total stockholders' equity          929,422            894,553
      Total liabilities and               $   1,067,111      $    1,033,257
      stockholders' equity
                                                                  


TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
                                                         
                                  Three Months Ended
                                  March 29,       December 31,     March 30,
                                  2014            2013             2013
                                                                             
Revenues                          $ 177,606       $  267,731       $ 184,209
Cost of goods sold                118,556        197,755         145,437   
  Gross profit                    59,050          69,976           38,772
                                                                             
Operating expenses:
  Research, development and       49,870          49,765           46,071
  engineering
  Selling, general and            29,163         28,760          27,241    
  administrative
         Total operating          79,033          78,525           73,312
         expenses
                                                                        
  Operating loss                  (19,983   )     (8,549     )     (34,540   )
                                                                             
Other (expense) income:
  Interest income                 27              23               38
  Interest expense                (855      )     (1,046     )     (1,139    )
  Other, net                      45             (102       )     (309      )
         Other (expense)          (783      )     (1,125     )     (1,410    )
         income, net
                                                                        
Loss before income tax            (20,766   )     (9,674     )     (35,950   )
                                                                             
  Income tax benefit              (1,697    )     (939       )     (8,001    )
Net loss                          $ (19,069 )     $  (8,735  )     $ (27,949 )
                                                                             
Per Share Data:
  Basic per share net loss        $ (0.12   )     $  (0.05   )     $ (0.17   )
  Diluted per share net           $ (0.12   )     $  (0.05   )     $ (0.17   )
  loss
                                                                             
Weighted-average shares
outstanding:
  Basic                           164,386         160,190          160,758
  Diluted                         164,386         160,190          160,758
                                                                             


TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(% of revenue)
                                                           
                                      Three Months Ended
                                      March 29,     December 31,     March 30,
                                      2014          2013             2013
                                                                            
Revenues                              100.0  %      100.0   %        100.0  %
Cost of goods sold                    66.8   %      73.9    %        79.0   %
  Gross profit                        33.2   %      26.1    %        21.0   %
                                                                            
Operating expenses:
  Research, development and           28.1   %      18.6    %        25.0   %
  engineering
  Selling, general and                16.4   %      10.7    %        14.8   %
  administrative
     Total operating expenses         44.5   %      29.3    %        39.8   %
                                                                       
  Operating loss                      (11.3  )%     (3.2    )%       (18.8  )%
                                                                            
Other (expense) income:
  Interest income                     0.0    %      0.0     %        0.0    %
  Interest expense                    (0.4   )%     (0.4    )%       (0.6   )%
  Other, net                          0.0    %      (0.0    )%       (0.2   )%
     Other (expense) income,          (0.4   )%     (0.4    )%       (0.8   )%
     net
                                                                       
Loss before income tax                (11.7  )%     (3.6    )%       (19.6  )%
                                                                            
  Income tax benefit                  (1.0   )%     (0.3    )%       (4.4   )%
Net loss                              (10.7  )%     (3.3    )%       (15.2  )%
                                                                            


TriQuint Semiconductor, Inc.
SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Unaudited)
(Dollars in thousands, except per share amounts)

                  Three Months Ended
                      March 29, 2014             December 31, 2013        March 30, 2013
                      (% of revenues)              (% of revenues)            (% of revenues)
GAAP GROSS            $ 59,050      33.2  %      $ 69,976     26.1 %      $ 38,772      21.0  %
PROFIT
  Adjustment
  for stock
  based               1,785           1.0   %      3,222          1.2  %      2,036           1.1   %
  compensation
  charges
  Adjustment
  for
  restructuring       715             0.4   %      25,283         9.4  %      —               —     %
  and
  impairment
  charges
  Adjustment
  for charges
  associated          1,083        0.7   %      1,103       0.5  %      1,208        0.7   %
  with
  acquisitions
NON-GAAP GROSS        $ 62,633        35.3  %      $ 99,584       37.2 %      $ 42,016        22.8  %
PROFIT
                                                                                                    
GAAP OPERATING        $ 79,033        44.5  %      $ 78,525       29.3 %      $ 73,312        39.8  %
EXPENSES
  Adjustment
  for stock
  based               (4,805    )     (2.7  )%     (5,202   )     (1.9 )%     (4,987    )     (2.7  )%
  compensation
  charges
  Adjustment
  for
  restructuring       (1,080    )     (0.6  )%     (1,837   )     (0.7 )%     —               —     %
  and
  impairment
  charges
  Adjustment
  for charges
  associated          (2,200    )   (1.2  )%     (337     )   (0.1 )%     (314      )   (0.2  )%
  with
  acquisitions
NON-GAAP
OPERATING             $ 70,948        40.0  %      $ 71,149       26.6 %      $ 68,011        36.9  %
EXPENSES
                                                                                                    
GAAP OPERATING        $ (19,983 )     (11.3 )%     $ (8,549 )     (3.2 )%     $ (34,540 )     (18.8 )%
LOSS
  Adjustment
  for stock
  based               6,590           3.7   %      8,424          3.1  %      7,023           3.8   %
  compensation
  charges
  Adjustment
  for
  restructuring       1,795           1.0   %      27,120         10.1 %      —               —     %
  and
  impairment
  charges
  Adjustment
  for charges
  associated          3,283        1.9   %      1,440       0.6  %      1,522        0.9   %
  with
  acquisitions
NON-GAAP
OPERATING             $ (8,315  )     (4.7  )%     $ 28,435       10.6 %      $ (25,995 )     (14.1 )%
(LOSS) INCOME
                                                                                                    
GAAP NET LOSS         $ (19,069 )     (10.7 )%     $ (8,735 )     (3.3 )%     $ (27,949 )     (15.2 )%
  Adjustment
  for stock
  based               6,590           3.7   %      8,424          3.2  %      7,023           3.8   %
  compensation
  charges
  Adjustment
  for
  restructuring       1,795           1.0   %      27,120         10.1 %      —               —     %
  and
  impairment
  charges
  Adjustment
  for non-cash        (2,190    )     (1.2  )%     (2,178   )     (0.8 )%     (8,311    )     (4.5  )%
  tax benefit
  Adjustment
  for charges
  associated          3,510        1.9   %      1,721       0.6  %      2,012        1.1   %
  with
  acquisitions
NON-GAAP NET          $ (9,364  )     (5.3  )%     $ 26,352       9.8  %      $ (27,225 )     (14.8 )%
(LOSS) INCOME
                                                                                                    
GAAP DILUTED          (0.12     )                  $ (0.05  )                 $ (0.17   )
LOSS PER SHARE
  Adjustment
  for stock
  based               0.04                         0.05                       0.04
  compensation
  charges
  Adjustment
  for
  restructuring       0.01                         0.16                       0.00
  and
  impairment
  charges
  Adjustment
  for non-cash        (0.01     )                  (0.01    )                 (0.05     )
  tax benefit
  Adjustment
  for charges
  associated          0.02                        0.01                      0.01      
  with
  acquisitions
NON-GAAP
DILUTED (LOSS)        $ (0.06   )                  $ 0.16                     $ (0.17   )
EARNINGS PER
SHARE
                                                                                                    

Our earnings release contains forward looking estimates of non-GAAP gross
margin and loss per share for the second quarter of 2014. 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 anticipated for the second quarter of 2014 based
on the mid-point of guidance.

                                                        
Forward Looking Q2 GAAP Gross Margin                        36.0   %
 Adjustment for stock based compensation charges           1.0    %
  Adjustment for charges associated with acquisitions       0.5    %
Forward Looking Q2 non-GAAP Gross Margin                    37.5   %
                                                                   
Forward Looking Q2 GAAP Net Earnings per Share              $ 0.01
  Adjustment for stock based compensation charges           0.05
  Adjustment for non-cash tax benefit                       (0.01  )
  Adjustment for charges associated with acquisitions       0.02   
Forward Looking Q2 non-GAAP Net Earnings per Share          $ 0.07

Contact:

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