TriQuint Semiconductor, Inc. (NASDAQ: TQNT), a leading RF
solutions supplier and technology innovator, announces its
financial results for the quarter ended September 27, 2014,
including the following highlights:
- Revenue grew 18% sequentially to $272.1
million
- GAAP gross margin was 45.5%; non-GAAP
was 46.6%, up 8.6% year-on-year
- GAAP net income was $0.14 per diluted
share, non-GAAP net income was $0.28 per share
- Premium filter revenue grew rapidly,
supporting over 50 unique customers
- Base station revenue up 54% year to
date compared to 2013 on continued LTE build out
- GaN performance, cost and capacity
goals completed as part of the DARPA Title III program
- Expected merger with RFMD anticipated
to close this year; Qorvo name announced
Commenting on the results, Ralph Quinsey, President and Chief
Executive Officer, stated, “Our financial results in the third
quarter were well above expectations due to strong demand and an
improved product mix driven by a strategic focus on delivering high
performance solutions in each of our markets. The success we are
seeing today is due to years of investment in BAW/SAW and high
performance GaAs/GaN technologies. We continue to see robust demand
and are raising our outlook for the fourth quarter. We remain on
track to launch a new combined company, Qorvo, with the merger of
TriQuint and RFMD expected to close by year end."
Summary Financial Results for the Three Months Ended
September 27, 2014:
Revenue for the third quarter of 2014 was $272.1 million, up 8%
from the third quarter of 2013 and 18% sequentially.
Cash and investments increased by $24.4 million this quarter to
$247.9 million, driven by operating results and cash proceeds from
employee stock option exercises and partially offset by continued
investment in premium filter capacity.
GAAP
Gross margin for the third quarter of 2014 was 45.5%, up sharply
from 40.2% in the second quarter of 2014 and from 36.8% in the
third quarter of 2013 due to product mix and strong factory
execution. Operating expenses for the third quarter of 2014 were
$87.8 million, up sequentially due to merger and integration
related costs.
Net income for the third quarter of 2014 was $26.2 million or
$0.14 per diluted share, compared with net income of $5.2 million
or $0.03 per diluted share in the second quarter of 2014 and $0.08
per diluted share in the third quarter of 2013.
Non-GAAP
Gross margin for the third quarter was 46.6%, up sharply from
41.7% in the second quarter of 2014 and 38.0% in the prior year.
Operating expenses for the quarter were $74.7 million, up slightly
sequentially.
Earnings per diluted share for the third quarter of 2014 was
$0.28, compared with $0.13 per share in the second quarter of 2014
and $0.16 per diluted share in the third quarter in 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 expects fourth quarter revenue to range between $330
million and $340 million, up 23% sequentially at the midpoint.
Fourth quarter non-GAAP gross margin is expected to be between 46%
and 48%, driven by strong factory execution and product mix. Fourth
quarter non-GAAP net income per diluted share is expected to be
between $0.40 and $0.45. As of today, the company is fully booked
to the midpoint of revenue guidance.
Additional Information Regarding Results for the Three and
Nine Months Ended September 27, 2014:
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.
Q2
vs.
Q3
vs.
Q3
Q3
2014
Q2
2014
2014
Q3
2013
2013
Q3
2014
Q3
2013
2013
Revenue $ 272.1 $ 230.8 18 % $ 250.8
8 % $ 680.5 $ 625.1
9 % Gross Profit $ 123.7 $ 92.7
33 % $ 92.2 34 % $ 275.5 $ 187.7
47 % Gross Margin % 45.5 % 40.2 % 5.3 %
36.8 % 8.7 % 40.5 % 30.0 % 10.5 % Op
Income (Loss) $ 35.9 $ 7.4 385 % $ 18.8
91 % $ 23.3 $ (32.1 ) 173
% Net Income (Loss) $ 26.2 $ 5.2 404 %
$ 13.6 93 % $ 12.3 $ (29.3 )
142 % Inc (Loss) per share $ 0.14 $ 0.03
$ 0.11 $ 0.08 $
0.06 $ 0.07 $ (0.18 ) $ 0.25
NON-GAAP RESULTS A
Three Months Ended Nine Months Ended
Change
Change
Change
vs.
Q2
vs.
Q3
vs.
Q3
Q3
2014
Q2
2014
2014
Q3
2013
2013
Q3
2014
Q3
2013
2013
Revenue $ 272.1 $ 230.8 18 % $ 250.8
8 % $ 680.5 $ 625.1
9 % Gross Profit $ 126.8 $ 96.2
32 % $ 95.2 33 % $ 285.6
$ 196.7 45 % Gross Margin % 46.6 % 41.7 %
4.9 % 38.0 % 8.6 % 42.0 % 31.5 %
10.5 % Op Income (Loss) $ 52.1 $ 24.3
114 % $ 26.7 95 % $ 68.0 $ (9.4
) 823 % Net Income (Loss) $ 51.4 $ 23.6
118 % $ 26.3 95 % $ 65.6
$ (11.9 ) 651 % Inc (Loss) per share $ 0.28 $
0.13 $ 0.15 $ 0.16 $ 0.12
$ 0.36 $ (0.07 ) $ 0.43
A
Excludes stock based compensation charges, non-cash tax benefit,
certain entries associated with mergers and acquisitions, including
expenses associated with the planned merger with RFMD 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 98159203. 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 10, 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
including expenses associated with the planned merger with RFMD 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
mergers and 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 charges
associated with the planned merger with RFMD include professional
fees and other costs. 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 expectations for discrete premium
filter revenue for 2014; expected timing and completion of
TriQuint’s merger with RFMD; and statements under "Outlook"
regarding anticipated fourth quarter revenues, fourth quarter
non-GAAP gross margin, operating expenses and net income per
diluted share. 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
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In
thousands)
September 27, 2014
December 31, 2013
Assets
Current assets: Cash and cash equivalents $ 223,612 $ 79,026
Investments in marketable securities 24,330 — Accounts receivable,
net 164,397 177,114 Inventories 158,130 159,488 Prepaid expenses
8,791 13,617 Deferred tax assets, net 17,956 12,787 Other current
assets 38,366 39,960 Total current assets 635,582 481,992
Property, plant and equipment, net 428,459 420,363 Goodwill 13,519
13,519 Intangible assets, net 19,199 23,510 Deferred tax assets –
noncurrent, net 51,019 61,554 Other noncurrent assets, net 59,257
32,319 Total assets $ 1,207,035 $ 1,033,257
Liabilities and Stockholders' Equity Current liabilities:
Accounts payable $ 77,702 $ 52,472 Accrued payroll 45,766 39,743
Other accrued liabilities 14,834 15,893 Total current
liabilities 138,302 108,108 Long-term liabilities: Long-term income
tax liability 2,311 2,062 Cross-licensing liability 11,309 11,752
Other long-term liabilities 16,312 16,782 Total liabilities
168,234 138,704 Stockholders' equity: Common stock 177 162
Additional paid-in capital 831,833 699,903 Accumulated other
comprehensive income 73 95 Retained earnings 206,718 194,393
Total stockholders' equity 1,038,801 894,553 Total
liabilities and stockholders' equity $ 1,207,035 $ 1,033,257
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) (In thousands, except per share amounts)
Three Months
Ended Nine Months Ended September June 28,
September September
September
27, 2014 2014 28, 2013 27, 2014
28, 2013
Revenues $ 272,147 $ 230,771 $ 250,836 $ 680,524 625,148
Cost of goods sold 148,427 138,057 158,619
405,040 437,440 Gross profit 123,720 92,714 92,217
275,484 187,708 Operating expenses: Research, development
and engineering 49,810 48,001 47,023 147,681 140,201 Selling,
general and administrative 38,035 37,316 26,420
104,514 79,650 Total operating expenses 87,845
85,317 73,443 252,195 219,851
Operating income (loss) 35,875
7,397 18,774 23,289 (32,143 ) Other (expense) income:
Interest income 92 42 7 161 83 Interest expense (892 ) (844 )
(1,153 ) (2,591 ) (3,429 ) Other, net 297 (624 ) 70
(282 ) 97 Other (expense) income, net (503 ) (1,426 ) (1,076
) (2,712 ) (3,249 )
Income (loss) before income tax 35,372
5,971 17,698 20,577 (35,392 ) Income tax expense (benefit)
9,188 761 4,137 8,252 (6,119 ) Net
income (loss) $ 26,184 $ 5,210 $ 13,561 $
12,325 $ (29,273 ) Per Share Data: Basic per share
net earnings (loss) $ 0.15 $ 0.03 $ 0.09 $ 0.07 $ (0.18 ) Diluted
per share net earnings (loss) $ 0.14 $ 0.03 $ 0.08 0.07 $ (0.18 )
Weighted-average shares outstanding: Basic 175,764 171,770
157,105 170,709 159,057 Diluted 185,701 181,319 163,917 180,302
159,057
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) (% of revenue)
Three Months Ended Nine Months
Ended September June 28, September
September September 27, 2014 2014
28, 2013 27, 2014 28, 2013 Revenues
100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Cost of goods sold 54.5 %
59.8 % 63.2 % 59.5 % 70.0 % Gross profit 45.5 % 40.2 % 36.8 % 40.5
% 30.0 % Operating expenses: Research, development and
engineering 18.3 % 20.8 % 18.7 % 21.7 % 22.4 % Selling, general and
administrative 14.0 % 16.2 % 10.6 % 15.4 % 12.7 % Total operating
expenses 32.3 % 37.0 % 29.3 % 37.1 % 35.1 %
Operating income
(loss) 13.2 % 3.2 % 7.5 % 3.4 % (5.1 )% Other (expense)
income: Interest income 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % Interest
expense (0.3 )% (0.3 )% (0.5 )% (0.4 )% (0.6 )% Other, net 0.1 %
(0.3 )% 0.0 % 0.0 % 0.0 % Other (expense) income, net (0.2 )% (0.6
)% (0.5 )% (0.4 )% (0.6 )%
Income (loss) before income tax
13.0 % 2.6 % 7.0 % 3.0 % (5.7 )% Income tax expense
(benefit) 3.4 % 0.3 % 1.6 % 1.2 % (1.0 )% Net income (loss) 9.6 %
2.3 % 5.4 % 1.8 % (4.7 )%
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (Unaudited) (Dollars
in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 27, 2014 June 28, 2014
September 28, 2013 September 27, 2014
September 28, 2013 (% of revenues) (% of revenues) (% of
revenues) (% of revenues) (% of revenues) GAAP GROSS PROFIT $
123,720 45.5 % $ 92,714 40.2 % $ 92,217 36.8 %
$ 275,484 40.5 % $ 187,708 30.0 % Adjustment for
stock based compensation charges 1,610 0.6 % 2,218 1.0 % 1,720 0.7
% 5,613 0.8 % 5,327 0.9 % Adjustment for restructuring and
impairment charges 42 0.0 % (20 ) — % — — % 736 0.0 % — — %
Adjustment for charges associated with acquisitions 1,397
0.5 % 1,301 0.5 % 1,272 0.5 %
3,781 0.6 % 3,682 0.6 % NON-GAAP GROSS
PROFIT $ 126,769 46.6 % $ 96,213 41.7 % $ 95,209 38.0 % 285,614
42.0 % 196,717 31.5 % GAAP OPERATING EXPENSES $ 87,845 32.3
% $ 85,317 37.0 % $ 73,443 29.3 % $ 252,195 37.1 % $ 219,851 35.1 %
Adjustment for stock based compensation charges (4,748 ) (1.7 )%
(5,287 ) (2.3 )% (5,193 ) (2.1 )% (14,840 ) (2.2 )% (15,802 ) (2.5
)% Adjustment for restructuring and impairment charges (114 ) 0.0 %
52 — % — — % (1,143 ) (0.2 )% — — % Adjustment for charges
associated with acquisitions (8,310 ) (3.1 )% (8,124 )
(3.5 )% 308 0.1 % (18,631 ) (2.7 )%
2,103 0.4 % NON-GAAP OPERATING EXPENSES $ 74,673 27.5
% $ 71,958 31.2 % $ 68,558 27.3 % $ 217,581 32.0 % $ 206,152 33.0 %
GAAP OPERATING INCOME (LOSS) $ 35,875 13.2 % $ 7,397 3.2 % $
18,774 7.5 % $ 23,289 3.4 % $ (32,143 ) (5.1 )% Adjustment for
stock based compensation charges 6,358 2.3 % 7,505 3.3 % 6,913 2.8
% 20,453 3.0 % 21,129 3.4 % Adjustment for restructuring and
impairment charges 156 — % (72 ) (0.1 )% — % 1,879 0.3 % — — %
Adjustment for charges associated with acquisitions 9,707
3.6 % 9,425 4.1 % 964 0.3 %
22,412 3.3 % 1,579 0.2 % NON-GAAP
OPERATING INCOME (LOSS) $ 52,096 19.1 % $ 24,255 10.5 % $ 26,651
10.6 % $ 68,033 10.0 % $ (9,435 ) (1.5 )% GAAP NET INCOME
(LOSS) $ 26,184 9.6 % $ 5,210 2.3 % $ 13,561 5.4 % $ 12,325 1.8 % $
(29,273 ) (4.7 )% Adjustment for stock based compensation charges
6,358 2.3 % 7,505 3.3 % 6,913 2.8 % 20,453 3.0 % 21,129 3.4 %
Adjustment for restructuring and impairment charges 156 0.1 % (72 )
— % — — % 1,879 0.3 % — — % Adjustment for impairment (recovery) of
investment — — % 515 0.2 % — — % 515 0.1 % (421 ) (0.1 )%
Adjustment for non-cash tax expense (benefit) 9,338 3.4 % 803 0.3 %
4,482 1.8 % 7,950 1.2 % (6,243 ) (1.0 )% Adjustment for charges
associated with acquisitions 9,374 3.5 % 9,643
4.1 % 1,351 0.5 % 22,526 3.2 %
2,941 0.5 % NON-GAAP NET INCOME (LOSS) $ 51,410 18.9
% $ 23,604 10.2 % $ 26,307 10.5 % $ 65,648 9.6 % $ (11,867 ) (1.9
)% GAAP DILUTED EARNINGS (LOSS) PER SHARE 0.14 $ 0.03 $ 0.08
$ 0.07 (0.18 ) Adjustment for stock based compensation charges 0.03
0.04 0.04 0.11 0.13 Adjustment for restructuring and impairment
charges 0.01 (0.00 ) — 0.01 — Adjustment for impairment (recovery)
of investment 0.00 — 0.00 0.00 0.00 Adjustment for non-cash tax
expense (benefit) 0.05 0.01 0.03 0.04 (0.04 ) Adjustment for
charges associated with acquisitions 0.05 0.05 0.01
0.13 0.02 NON-GAAP DILUTED EARNINGS (LOSS) PER
SHARE $ 0.28 $ 0.13 $ 0.16 $ 0.36 $ (0.07 )
Our earnings release contains forward looking estimates of
non-GAAP gross margin and earnings per share for the fourth 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 fourth quarter based on the
mid-point of guidance.
Forward Looking Q4 GAAP Gross Margin 46.0 %
Adjustment for stock based compensation charges 0.5 % Adjustment
for charges associated with acquisitions 0.5 % Forward Looking Q4
non-GAAP Gross Margin 47.0 % Forward Looking Q4 GAAP Net
Earnings per Share $ 0.14 Adjustment for stock based compensation
charges 0.04 Adjustment for non-cash tax expense 0.06 Adjustment
for charges associated with acquisitions 0.19 Forward
Looking Q4 non-GAAP Net Earnings per Share $ 0.43
TriQuint Semiconductor, Inc.Steve Buhaly, +1-503-615-9401VP of
Finance & Administration, CFOsteve.buhaly@triquint.comorGrant Brown,
+1-503-615-9413Director, Investor Relationsgrant.brown@triquint.comorMedia
Contact:Brandi Frye, +1-503-615-9488Sr. Director, Corporate
Communicationsbrandi.frye@triquint.com
Triquint (NASDAQ:TQNT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Triquint (NASDAQ:TQNT)
Historical Stock Chart
From Sep 2023 to Sep 2024