TriQuint Announces Second Quarter 2013 Results

TriQuint Announces Second Quarter 2013 Results

HILLSBORO, Ore.--(BUSINESS WIRE)-- TriQuint Semiconductor, Inc. (NAS: TQNT) , a leading RF solutions supplier and technology innovator, announces its financial results for the quarter ending June 29, 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 June 29, 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 June 29, 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 EndedSix Months Ended
Q2 2013 Q1 2013 Change vs. Q1 2013 Q2 2012 Change vs. Q2 2012Q2 2013Q2 2012Change vs. Q2 2012
Revenue$190.1 $184.2 3%$178.0  7%$374.3 $394.7 (5)%
Gross Profit$56.7 $38.8 46%$44.9  26%$95.5 $107.5 (11)%
Gross Margin %29.8%21.0%8.8%25.2% 4.6%25.5%27.2%(1.7)%
Operating Loss$(16.4)$(34.5)52%$(24.4) 33%$(50.9)$(28.0)(82)%
Net Loss$(14.9)$(27.9)47%$(13.1) (14)%$(42.8)$(11.2)(282)%
Loss per share$(0.09)$(0.17)$0.08 $(0.08)$(0.01)$(0.27)$(0.07)$(0.20)
                  
NON-GAAP RESULTSA       
Three Months EndedSix Months Ended
Q2 2013Q1 2013Change vs. Q1 2013Q2 2012Change vs. Q2 2012Q2 2013Q2 2012Change vs. Q2 2012
Revenue$190.1 $184.2 3%$178.0 7%$374.3 $394.7 (5)%
Gross Profit$59.5 $42.0 42%$49.7 20%$101.5 $115.4 (12)%
Gross Margin %31.3%22.8%8.5%27.9%3.4%27.1%29.2%(2.1)%
Operating Loss$(10.1)$(26.0)61%$(14.7)31%$(36.1)$(10.3)(250)%
Net Loss$(10.9)$(27.2)60%$(15.0)27%$(38.2)$(10.9)(250)%
Loss per share$(0.07)$(0.17)$0.10 $(0.09)$0.02 $(0.24)$(0.07)$(0.17)
AExcludes stock based compensation charges, non-cash tax (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 (NAS: 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, 2013December 31, 2012
Assets
Current assets:
Cash and cash equivalents$74,543$116,653
Investments in marketable securities14,78522,305
Accounts receivable, net99,346132,729
Inventories170,678138,246
Prepaid expenses11,3718,938
Deferred tax assets, net13,58612,530
Other current assets39,909 48,382 
Total current assets424,218479,783
Property, plant and equipment, net468,692448,741
Goodwill4,3914,391
Intangible assets, net19,63123,163
Deferred tax assets - noncurrent, net67,37457,185
Other noncurrent assets, net32,796 40,415 
Total assets$1,017,102 $1,053,678 
 
Liabilities and Stockholders' Equity
Current liabilities:
Credit facility borrowing$20,000$
Accounts payable73,77465,388
Accrued payroll38,11633,254
Other accrued liabilities13,000 15,132 
Total current liabilities144,890113,774
Long-term liabilities:
Long-term income tax liability3,5982,809
Cross-licensing liability12,29712,818
Other long-term liabilities16,090 15,878 
Total liabilities176,875145,279
Stockholders' equity:
Common stock156161
Additional paid-in capital650,872676,203
Accumulated other comprehensive loss(368)(366)
Retained earnings189,567 232,401 
Total stockholders' equity840,227 908,399 
Total liabilities and stockholders' equity$1,017,102 $1,053,678 
 
 

TriQuint Semiconductor, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
       
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