| TriQuint Announces Third Quarter 2013 Results |
HILLSBORO, Ore.--(BUSINESS WIRE)--October 23, 2013--
TriQuint Semiconductor, Inc. (NASDAQ: TQNT), a leading RF solutions supplier and technology innovator, announces its financial results for the quarter ended September 28, 2013, including the following highlights:
-- Revenue for the quarter grew 32% sequentially to $250.8 million -- GAAP net income for the quarter was $13.6 million, or $0.08 per diluted share -- Non-GAAP net income for the quarter was $26.3 million, or $0.16 per diluted share -- Mobile Devices market revenue grew 53% sequentially and 42% over the same period a year ago -- Acquired CAP Wireless and its Spatium(TM) technology -- Won business with multiple customers with new BAW products -- Announced 5G Wi-Fi reference designs with Broadcom -- Introduced industry's most integrated small cell power amplifier for increasing network capacity -- Released new 100-200 Gb/s solutions to support the worldwide build-out of optical fiber networks
Commenting on the results, Ralph Quinsey, President and Chief Executive Officer, stated, "I am pleased with the strong growth and substantially improved earnings we achieved this quarter. Strong mobile demand drove improved factory utilization while expenses were managed closely. RF content growth is being fueled by next-generation smartphones operating in a more crowded spectrum with expanding frequency requirements. TriQuint is uniquely positioned to supply high-performance solutions for the most challenging and complex RF front end requirements."
Summary Financial Results for the Three Months Ended September 28, 2013:
Revenue for the third quarter of 2013 was $250.8 million, up 25% from the third quarter of 2012 and up 32% sequentially. Revenue grew 53% and 11% in the mobile devices and defense end markets respectively, but declined 11% in the networks end market sequentially. The decline in networks was largely driven by a reduction in non-strategic foundry business.
Cash and investments decreased by $62.4 million to $26.9 million in the quarter. Growth in accounts receivable and repayment of debt drove the decline.
GAAP
Gross margin for the third quarter of 2013 was 36.8%, up sequentially from 29.8% due primarily to higher revenue and factory utilization. Operating expenses for the third quarter of 2013 were $73.4 million, consistent with the previous quarter.
Net income for the third quarter of 2013 was $13.6 million or $0.08 per diluted share, compared with a net loss of $14.9 million, or $(0.09) per share, in the previous quarter.
Non-GAAP
Gross margin for the third quarter was 38.0%, up sequentially from 31.3% due to higher revenue and improved factory utilization. Operating expenses for the quarter were $68.6 million, down 1% sequentially.
Net income for the third quarter of 2013 of $26.3 million, or $0.16 per diluted share, improved sequentially from a net loss of $10.9 million or $(0.07) 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 fourth quarter 2013 revenue will be between $260 million and $270 million. Fourth quarter revenue is currently 88% booked to the midpoint of this guidance. Non-GAAP gross margin is expected to be between 35% and 36%. Fourth quarter non-GAAP net income is expected to be between $0.12 and $0.14 per diluted share.
Additional Information regarding September 28, 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 table later in this press release.
GAAP RESULTS ------------------------------------------------------------------------------ ---------- ---------- ---------- Three Months Ended Nine Months Ended ================================================================== ================================== Change Change ----------- ---------- Change vs. vs. Q2 Q3 vs. Q3 ----------- ----------- ---------- Q3 2013 Q2 2013 2013 Q3 2012 2012 Q3 2013 Q3 2012 2012 ============ ============ =========== ============ =========== ========== ========== ========== Revenue $250.8 $190.1 32% $200.8 25% $625.1 $595.6 5% ----- ---- ----- ---- ----- --- ----- ---- ----- --- ----- ----- ------ Gross Profit $ 92.2 $ 56.7 63% $ 61.6 50% $187.7 $169.1 11% ----- ---- ----- ---- ----- --- ----- ---- ----- --- ----- ----- ------ Gross Margin % 36.8% 29.8% 7.0% 30.7% 6.1% 30.0% 28.4% 1.6% ------ --- ------ --- ----- --- ------ --- ----- --- ------ ------ ------ Op Income (loss) $ 18.8 $(16.4) 215% $ (5.5) 442% $(32.1) $(33.5) 4% ----- ---- ----- --- ----- --- ----- --- ----- --- ----- ----- ------ Net Income (loss) $ 13.6 $(14.9) 191% $(11.2) 221% $(29.3) $(22.4) (31)% ----- ---- ----- --- ----- --- ----- --- ----- --- ----- ----- ------ Inc(loss) per share $ 0.08 $(0.09) $0.17 $(0.07) $0.15 $(0.18) $(0.14) $(0.04) ----- ---- ----- --- ---- ---- ----- --- ---- ---- ----- ----- ----- NON-GAAP RESULTS (A) ------------------------------------------------------------------------------ ---------- ---------- ---------- Three Months Ended Nine Months Ended ------------------------------------------------------------------ ---------------------------------- Change Change ----------- ---------- Change vs. vs. Q2 Q3 vs. Q3 ----------- ----------- ---------- Q3 2013 Q2 2013 2013 Q3 2012 2012 Q3 2013 Q3 2012 2012 ============ ============ =========== ============ =========== ========== ========== ========== Revenue $250.8 $190.1 32% $200.8 25% $625.1 $595.6 5% ----- ---- ----- ---- ----- --- ----- ---- ----- --- ----- ----- ------ Gross Profit $ 95.2 $ 59.5 60% $ 65.3 46% $196.7 $180.8 9% ----- ---- ----- ---- ----- --- ----- ---- ----- --- ----- ----- ------ Gross Margin % 38.0% 31.3% 6.7% 32.5% 5.5% 31.5% 30.4% 1.1% ------ --- ------ --- ----- --- ------ --- ----- --- ------ ------ ------ Op Income (loss) $ 26.7 $(10.1) 364% $ 3.3 709% $ (9.4) $ (7.0) (34)% ----- ---- ----- --- ----- --- ----- ---- ----- --- ----- ----- ------ Net Income (loss) $ 26.3 $(10.9) 341% $ 2.5 952% $(11.9) $ (8.4) (42)% ----- ---- ----- --- ----- --- ----- ---- ----- --- ----- ----- ------ Inc(loss) per share $ 0.16 $(0.07) $0.23 $ 0.02 $0.14 $(0.07) $(0.05) $(0.02) ----- ---- ----- --- ---- ---- ----- ---- ---- ---- ----- ----- ----- A Excludes 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 77085822. The call can also be heard via webcast accessed through the "Investors" section of TriQuint's web site at: invest.triquint.com. A replay of the conference call will be available until November 6, 2013.
Non-GAAP Financial Measures:
Adjustment for charges associated with acquisitions 0.01 ------ Forward Looking Q4 non-GAAP Net Earnings per Share $ 0.13 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
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 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 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:
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