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: http://invest.triquint.com. A replay of the conference call will be available until November 6, 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 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:
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 strong growth in mobile demand and RF content growth; and statements under "Outlook" regarding TriQuint's anticipated fourth quarter revenues, non-GAAP gross margin and diluted earnings per share for the fourth 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 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™
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TriQuint Semiconductor, Inc. |
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| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||
| (Unaudited) | |||||||||||||
| (In thousands) | |||||||||||||
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September 28, 2013 | December 31, 2012 | |||||||||||
| Assets | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 26,327 | $ | 116,653 | |||||||||
| Investments in marketable securities | 553 | 22,305 | |||||||||||
| Accounts receivable, net | 173,991 | 132,729 | |||||||||||
| Inventories | 175,583 | 138,246 | |||||||||||
| Prepaid expenses | 10,635 | 8,938 | |||||||||||
| Deferred tax assets, net | 12,111 | 12,530 | |||||||||||
| Other current assets | 51,446 | 48,382 | |||||||||||
| Total current assets | 450,646 | 479,783 | |||||||||||
| Property, plant and equipment, net | 454,237 | 448,741 | |||||||||||
| Goodwill | 13,790 | 4,391 | |||||||||||
| Intangible assets, net | 25,001 | 23,163 | |||||||||||
| Deferred tax assets – noncurrent, net | 63,109 | 57,185 | |||||||||||
| Other noncurrent assets, net | 32,062 | 40,415 | |||||||||||
| Total assets | $ | 1,038,845 | $ | 1,053,678 | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable | $ | 77,588 | $ | 65,388 | |||||||||
| Accrued payroll | 38,182 | 33,254 | |||||||||||
| Other accrued liabilities | 13,721 | 15,132 | |||||||||||
| Total current liabilities | 129,491 | 113,774 | |||||||||||
| Long-term liabilities: | |||||||||||||
| Long-term income tax liability | 4,070 | 2,809 | |||||||||||
| Cross-licensing liability | 12,027 | 12,818 | |||||||||||
| Other long-term liabilities | 16,699 | 15,878 | |||||||||||
| Total liabilities | 162,287 | 145,279 | |||||||||||
| Stockholders' equity: | |||||||||||||
| Common stock | 158 | 161 | |||||||||||
| Additional paid-in capital | 673,635 | 676,203 | |||||||||||
| Accumulated other comprehensive loss | (363 | ) | (366 | ) | |||||||||
| Retained earnings | 203,128 | 232,401 | |||||||||||
| Total stockholders' equity | 876,558 | 908,399 | |||||||||||
| Total liabilities and stockholders' equity | $ | 1,038,845 | $ | 1,053,678 | |||||||||
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TriQuint Semiconductor, Inc. |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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| (Unaudited) | ||||||||||||||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
| September | June 29, | September 29, | September | September 29, | ||||||||||||||||||||||||
| 28, 2013 | 2013 | 2012 | 28, 2013 | 2012 | ||||||||||||||||||||||||
| Revenues | $ | 250,836 | $ | 190,103 | $ | 200,821 | $ | 625,148 | 595,553 | |||||||||||||||||||
| Cost of goods sold | 158,619 | 133,384 | 139,208 | 437,440 | 426,413 | |||||||||||||||||||||||
| Gross profit | 92,217 | 56,719 | 61,613 | 187,708 | 169,140 | |||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||
| Research, development and engineering | 47,023 | 47,107 | 40,871 | 140,201 | 116,029 | |||||||||||||||||||||||
| Selling, general and administrative | 26,420 | 25,989 | 26,264 | 79,650 | 86,620 | |||||||||||||||||||||||
| Total operating expenses | 73,443 | 73,096 | 67,135 | 219,851 | 202,649 | |||||||||||||||||||||||
| Operating income (loss) | 18,774 | (16,377 | ) | (5,522 | ) | (32,143 | ) | (33,509 | ) | |||||||||||||||||||
| Other (expense) income: | ||||||||||||||||||||||||||||
| Interest income | 7 | 38 | 58 | 83 | 196 | |||||||||||||||||||||||
| Interest expense | (1,153 | ) | (1,137 | ) | (666 | ) | (3,429 | ) | (1,329 | ) | ||||||||||||||||||
| Gain/recovery of investment | — | 421 | — | 421 | 6,957 | |||||||||||||||||||||||
| Other, net | 70 | (85 | ) | 23 | (324 | ) | 168 | |||||||||||||||||||||
| Other (expense) income, net | (1,076 | ) | (763 | ) | (585 | ) | (3,249 | ) | 5,992 | |||||||||||||||||||
| Income (loss) before income tax | 17,698 | (17,140 | ) | (6,107 | ) | (35,392 | ) | (27,517 | ) | |||||||||||||||||||
| Income tax expense (benefit) | 4,137 | (2,255 | ) | 5,139 | (6,119 | ) | (5,104 | ) | ||||||||||||||||||||
| Net income (loss) | $ | 13,561 | $ | (14,885 | ) | $ | (11,246 | ) | $ | (29,273 | ) | $ | (22,413 | ) | ||||||||||||||
| Per Share Data: | ||||||||||||||||||||||||||||
| Basic per share net income (loss) | $ | 0.09 | $ | (0.09 | ) | $ | (0.07 | ) | $ | (0.18 | ) | $ | — | |||||||||||||||
| Diluted per share net income (loss) | 0.08 | $ | (0.09 | ) | $ | (0.07 | ) | (0.18 | ) | $ | — | |||||||||||||||||
| Weighted-average shares outstanding: | ||||||||||||||||||||||||||||
| Basic | 157,105 | 159,347 | 163,838 | 159,057 | 165,143 | |||||||||||||||||||||||
| Diluted | 163,917 | 159,347 | 163,838 | 159,057 | 165,143 | |||||||||||||||||||||||
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TriQuint Semiconductor, Inc. |
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| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (% of revenue) | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September | June 29, | September | September | September | |||||||||||||||||||
| 28, 2013 | 2013 | 29, 2012 | 28, 2013 | 29, 2012 | |||||||||||||||||||
| Revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||
| Cost of goods sold | 63.2 | % | 70.2 | % | 69.3 | % | 70.0 | % | 71.6 | % | |||||||||||||
| Gross profit | 36.8 | % | 29.8 | % | 30.7 | % | 30.0 | % | 28.4 | % | |||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research, development and engineering | 18.7 | % | 24.8 | % | 20.3 | % | 22.4 | % | 19.4 | % | |||||||||||||
| Selling, general and administrative | 10.5 | % | 13.6 | % | 13.1 | % | 12.7 | % | 14.6 | % | |||||||||||||
| Total operating expenses | 29.3 | % | 38.4 | % | 33.4 | % | 35.1 | % | 34.0 | % | |||||||||||||
| Operating income (loss) | 7.5 | % | (8.6 | )% | (2.7 | )% | (5.1 | )% | (5.6 | )% | |||||||||||||
| Other (expense) income: | |||||||||||||||||||||||
| Interest income | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||
| Interest expense | (0.5 | )% | (0.6 | )% | (0.3 | )% | (0.6 | )% | (0.2 | )% | |||||||||||||
| Gain/recovery of investment | — | % | 0.2 | % | — | % | 0.1 | % | 1.2 | % | |||||||||||||
| Other, net | 0.0 | % | (0.0 | )% | 0.0 | % | (0.1 | )% | 0.0 | % | |||||||||||||
| Other (expense) income, net | (0.4 | )% | (0.4 | )% | (0.3 | )% | (0.6 | )% | 1.0 | % | |||||||||||||
| Income (loss) before income tax | 7.1 | % | (9.0 | )% | (3.0 | )% | (5.7 | )% | (4.6 | )% | |||||||||||||
| Income tax expense (benefit) | 1.5 | % | (1.2 | )% | 2.6 | % | (1.0 | )% | (0.8 | )% | |||||||||||||
| Net income (loss) | 5.4 | % | (7.8 | )% | (5.6 | )% | (4.7 | )% | (3.8 | )% | |||||||||||||
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TriQuint Semiconductor, Inc. |
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SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP RESULTS |
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| (Unaudited) | |||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
| September 28, 2013 | June 29, 2013 | September 29, 2012 | September 28, 2013 | September 29, 2012 | |||||||||||||||||||||||||||||||||||
| (% of revenues) | (% of revenues) | (% of revenues) | (% of revenues) | (% of revenues) | |||||||||||||||||||||||||||||||||||
| GAAP GROSS PROFIT | $ | 92,217 | 36.8 | % | $ | 56,719 | 29.8 | % | $ | 61,613 | 30.7 | % | $ | 187,708 | 30.0 | % | $ | 169,140 | 28.4 | % | |||||||||||||||||||
| Adjustment for stock based compensation charges | 1,720 | 0.7 | % | 1,570 | 0.8 | % | 2,549 | 1.3 | % | 5,327 | 0.9 | % | 6,477 | 1.1 | % | ||||||||||||||||||||||||
| Adjustment for restructuring charges | — | — | % | — | — | % |
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— | — | % | — | — | % | 1,763 | 0.3 | % | |||||||||||||||||||||||
| Adjustment for charges associated with acquisitions | 1,272 | 0.5 | % | 1,202 | 0.7 | % | 1,185 | 0.5 | % | 3,682 | 0.6 | % | 3,405 | 0.6 | % | ||||||||||||||||||||||||
| NON-GAAP GROSS PROFIT | $ | 95,209 | 38.0 | % | $ | 59,491 | 31.3 | % | $ | 65,347 | 32.5 | % | 196,717 | 31.5 | % | 180,785 | 30.4 | % | |||||||||||||||||||||
| GAAP OPERATING EXPENSES | $ | 73,443 | 29.3 | % | $ | 73,096 | 38.4 | % | $ | 67,135 | 33.4 | % | $ | 219,851 | 35.1 | % | $ | 202,649 | 34.0 | % | |||||||||||||||||||
| Adjustment for stock based compensation charges | (5,193 | ) | (2.1 | )% | (5,623 | ) | (3.0 | )% | (4,815 | ) | (2.4 | )% | (15,802 | ) | (2.5 | )% | (15,142 | ) | (2.5 | )% | |||||||||||||||||||
| Adjustment for charges associated with acquisitions | 308 | 0.1 | % | 2,108 | 1.2 | % | (257 | ) | — | % | 2,103 | 0.4 | % | 256 | 0.0 | % | |||||||||||||||||||||||
| NON-GAAP OPERATING EXPENSES | $ | 68,558 | 27.3 | % | $ | 69,581 | 36.6 | % | $ | 62,063 | 31.0 | % | $ | 206,152 | 33.0 | % | $ | 187,763 | 31.5 | % | |||||||||||||||||||
| GAAP OPERATING INCOME (LOSS) | $ | 18,774 | 7.5 | % | $ | (16,377 | ) | (8.6 | )% | $ | (5,522 | ) | (2.7 | )% | $ | (32,143 | ) | (5.1 | )% | $ | (33,509 | ) | (5.6 | )% | |||||||||||||||
| Adjustment for stock based compensation charges | 6,913 | 2.8 | % | 7,193 | 3.8 | % | 7,364 | 3.7 | % | 21,129 | 3.4 | % | 21,619 | 3.6 | % | ||||||||||||||||||||||||
| Adjustment for restructuring charges | — | — | % | — | — | % | — | — | % | — | — | % | 1,763 | 0.3 | % | ||||||||||||||||||||||||
| Adjustment for charges associated with acquisitions | 964 | 0.3 | % | (906 | ) | (0.5 | )% | 1,442 | 0.6 | % | 1,579 | 0.2 | % | 3,149 | 0.5 | % | |||||||||||||||||||||||
| NON-GAAP OPERATING INCOME (LOSS) | $ | 26,651 | 10.6 | % | $ | (10,090 | ) | (5.3 | )% | $ | 3,284 | 1.6 | % | $ | (9,435 | ) | (1.5 | )% | $ | (6,978 | ) | (1.2 | )% | ||||||||||||||||
| GAAP NET INCOME (LOSS) | $ | 13,561 | 5.4 | % | $ | (14,885 | ) | (7.8 | )% | $ | (11,246 | ) | (5.6 | )% | $ | (29,273 | ) | (4.7 | )% | $ | (22,413 | ) | (3.8 | )% | |||||||||||||||
| Adjustment for stock based compensation charges | 6,913 | 2.8 | % | 7,193 | 3.8 | % | 7,364 | 3.7 | % | 21,129 | 3.4 | % | 21,619 | 3.6 | % | ||||||||||||||||||||||||
| Adjustment for restructuring charges | — | — | % | — | — | % | — | — | % | — | — | % | 1,763 | 0.3 | % | ||||||||||||||||||||||||
| Adjustment for gain/recovery of investment | — | — | % | (421 | ) | (0.2 | )% | — | — | % | (421 | ) | (0.1 | )% | (6,957 | ) | (1.2 | )% | |||||||||||||||||||||
| Adjustment for non-cash tax expense (benefit) | 4,482 | 1.8 | % | (2,413 | ) | (1.4 | )% | 4,975 | 2.6 | % | (6,243 | ) | (1.0 | )% | (5,585 | ) | (0.9 | )% | |||||||||||||||||||||
| Adjustment for charges associated with acquisitions | 1,351 | 0.5 | % | (421 | ) | (0.2 | )% | 1,442 | 0.6 | % | 2,941 | 0.5 | % | 3,174 | 0.6 | % | |||||||||||||||||||||||
| NON-GAAP NET INCOME (LOSS) | $ | 26,307 | 10.5 | % | $ | (10,947 | ) | (5.8 | )% | $ | 2,535 | 1.3 | % | $ | (11,867 | ) | (1.9 | )% | $ | (8,399 | ) | (1.4 | )% | ||||||||||||||||
| GAAP DILUTED EARNINGS (LOSS) PER SHARE | 0.08 | $ | (0.09 | ) | $ | (0.07 | ) | $ | (0.18 | ) | (0.14 | ) | |||||||||||||||||||||||||||
| Adjustment for stock based compensation charges | 0.04 | 0.04 | 0.04 | 0.13 | 0.13 | ||||||||||||||||||||||||||||||||||
| Adjustment for accelerated depreciation of certain machinery and equipment | — | — | — | — | 0.01 | ||||||||||||||||||||||||||||||||||
| Adjustment for gain/recovery of investment | 0.00 | — | 0.00 | (0.00 | ) | (0.04 | ) | ||||||||||||||||||||||||||||||||
| Adjustment for non-cash tax expense (benefit) | 0.03 | (0.02 | ) | 0.04 | (0.04 | ) | (0.03 | ) | |||||||||||||||||||||||||||||||
| Adjustment for charges associated with acquisitions | 0.01 | 0.00 | 0.01 | 0.02 | 0.02 | ||||||||||||||||||||||||||||||||||
| NON-GAAP DILUTED EARNINGS (LOSS) PER SHARE | $ | 0.16 | $ | (0.07 | ) | $ | 0.02 | $ | (0.07 | ) | $ | (0.05 | ) | ||||||||||||||||||||||||||
