HILLSBORO, Ore.--(BUSINESS WIRE)-- TriQuint Semiconductor, Inc. (NASDAQ:TQNT), a leading RF solutions supplier and technology innovator, announces its financial results for the quarter ended October 1, 2011, including the following highlights:

• Revenues for the quarter were $216.0 million; revenues for the nine months ended October 1, 2011 were $669.1 million
• GAAP net income for the quarter was $16.2 million, or $0.09 per diluted share
• Non-GAAP net income for the quarter was $19.0 million, or $0.11 per diluted share
• Recognized in Fortune magazine's "100 Fastest Growing Companies" annual list
• Earned the "Green Partner" Award from Huawei
• Released the world's first 40G SMT optical network differential driver

Commenting on the results for the quarter ended October 1, 2011, Ralph Quinsey, President and Chief Executive Officer, stated, "TriQuint's long term growth story remains intact. Mobile broadband and high performance RF are some of the most exciting growth markets in the world today. At TriQuint we are helping customers define the next generation of RF solutions. Additionally, we are investing in the capacity and capability required for future growth. I firmly believe these investments will lead to superior and sustainable long term financial performance for the company."

Summary Financial Results for the Three and Nine Months Ended October 1, 2011:

Revenues for the third quarter of 2011 were $216.0 million, down 9% from the third quarter of 2010 and down 6% sequentially. Revenues for the nine months ended October 1, 2011 were $669.1 million, up 7% from the nine months ended October 2, 2010. Mobile Devices revenue grew 14% over last year on a year to date basis.

GAAP

Gross margin for the third quarter of 2011 was 34.9%, down from 41.3% in the third quarter of 2010 and down sequentially from 40.3%. Gross margin for the nine months ended October 1, 2011 was 38.1%, compared to 40.3% for the same period in 2010.

Operating expenses for the third quarter of 2011 were $63.3 million, or 29% of revenue, up from $59.1 million in the third quarter of 2010 but down from $70.9 million in the previous quarter. Operating expenses for the nine months ended October 1, 2011 were $201.3 million, up from $173.1 million for the nine months ended October 2, 2010.

Net income for the third quarter of 2011 was $16.2 million, or $0.09 per diluted share, relatively consistent with the second quarter of 2011. Net income for the nine months ended October 1, 2011 was $45.2 million or $0.26 per diluted share.

Non-GAAP

Gross margin for the third quarter was 36.3%, down from 42.3% in the third quarter of 2010 and down sequentially from 41.4%. The decline was largely due to product ramp related costs and product mix. Gross margin for the nine months ended October 1, 2011 was 39.3% down from 41.3% for the nine months ended October 2, 2010.

Operating expenses for the quarter were $58.7 million or 27% of revenue, down from $65.6 million in the prior quarter. Operating expenses for the nine months ended October 1, 2011 were $187.5 million or 28% of revenue.

Net income for the third quarter of 2011 was $19.0 million, or $0.11 per diluted share, down sequentially from $0.17 per diluted share and down from $0.28 per diluted share in the third quarter of 2010. Net income for the nine months ended October 1, 2011 was $74.0 million, or $0.43 per diluted 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 revenues will be between $215 million and $225 million. During the fourth quarter, we expect lower factory utilization as we burn through excess inventory and weak product mix to drive gross margin of 32% to 34%. Fourth quarter non-GAAP net income is expected to be between $0.06 and $0.08 per share. The Company is 90% booked to the midpoint of revenue guidance.

Additional Information Regarding October 1, 2011 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 Ended																				Nine Months Ended
		Q3 2011				Q2 2011				Change vs. Q2 2011				Q3 2010				Change vs. Q3 2010				Q3 2011				Q3 2010				Change vs. Q3 2010
Revenue		$	216.0			$	228.8			(6		)%		$	237.0			(9		)%		$	669.1			$	625.3			7		%
Gross Profit		$	75.4			$	92.1			(18		)%		$	98.0			(23		)%		$	254.9			$	251.9			1		%
Gross Margin %		34.9		%		40.3		%		(5.4		)%		41.3		%		(6.4		)%		38.1		%		40.3		%		(2.2		)%
Op Income		$	12.0			$	21.3			(44		)%		$	38.9			(69		)%		$	53.6			$	78.8			(32		)%
Net Income		$	16.2			$	16.6			(2		)%		$	112.2			(86		)%		$	45.2			$	148.3			(70		)%
Diluted EPS		$	0.09			$	0.10			$	(0.01	)		$	0.69			$	(0.60	)		$	0.26			$	0.92			$	(0.66	)
NON-GAAP RESULTS A
		Three Months Ended																				Nine Months Ended
		Q3 2011				Q2 2011				Change vs. Q2 2011				Q3 2010				Change vs. Q3 2010				Q3 2011				Q3 2010				Change vs. Q3 2010
Revenue		$	216.0			$	228.8			(6		)%		$	237.0			(9		)%		$	669.1			$	625.3			7		%
Gross Profit		$	78.3			$	94.8			(17		)%		$	100.3			(22		)%		$	262.8			$	258.5			2		%
Gross Margin %		36.3		%		41.4		%		(5.1		)%		42.3		%		(6.0		)%		39.3		%		41.3		%		(2.0		)%
Op Income		$	19.6			$	29.2			(33		)%		$	44.3			(56		)%		$	75.3			$	95.4			(21		)%
Net Income		$	19.0			$	28.9			(34		)%		$	44.2			(57		)%		$	74.0			$	94.9			(22		)%
Diluted EPS		$	0.11			$	0.17			$	(0.06	)		$	0.28			$	(0.17	)		$	0.43			$	0.59			$	(0.16	)
A		Excludes stock based compensation charges, non-cash tax expense, certain entries associated with acquisitions, and other specifically identified non-routine transactions.

Conference Call:

TriQuint will host a conference call this afternoon at 2:00 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 15587215. The call can also be heard via webcast accessed through the "Investors" section of TriQuint's web site at: www.triquint.com/investors/events. A replay of the conference call will be available until November 2, 2011.

Non-GAAP Financial Measures:

This press release provides financial measures for non-GAAP net income, diluted earnings per share, gross profit, operating expenses and operating income that exclude equity compensation expense, non-cash tax 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 non-cash tax 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 regarding TriQuint's anticipated revenues, non-GAAP net income and our bookings to revenue; TriQuint's factory utilization and product mix; expected litigation charges; the impact of our investments in increased capacity; the opportunity to be at the leading edge of RF solutions; growth in demand for TriQuint's products; RF content expansion in smartphones; and expected market growth. 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.

TQNT-F

TriQuint: Connecting the Digital World to the Global Network^®

TriQuint Semiconductor, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands)
		October 1, 2011				July 2, 2011				October 2, 2010
Assets
Current assets:
Cash, cash equivalents and investments		$	147,224			$	180,855			$	187,170
Accounts receivable, net		140,144				135,394				141,795
Inventories		159,330				137,358				103,346
Other current assets		72,363				79,348				75,260
Total current assets		519,061				532,955				507,571
Property, plant and equipment, net		451,642				419,807				309,914
Other, net		85,661				85,200				84,013
Total assets		$	1,056,364			$	1,037,962			$	901,498
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses		$	109,522			$	107,502			$	112,826
Other accrued liabilities		11,731				13,315				13,647
Total current liabilities		121,253				120,817				126,473
Long-term income tax liability		2,183				5,167				9,247
Other long-term liabilities		10,096				10,401				8,878
Total liabilities		133,532				136,385				144,598
Stockholders' equity		922,832				901,577				756,900
Total liabilities and stockholders' equity		$	1,056,364			$	1,037,962			$	901,498

TriQuint Semiconductor, Inc. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share amounts)
		Three Months Ended												Nine Months Ended
		October 1, 2011				July 2, 2011				October 2, 2010				October 1, 2011				October 2, 2010
Revenues		$	215,988			$	228,785			$	236,998			$	669,096			$	625,314
Cost of goods sold		140,632				136,643				139,039				414,204				373,373
Gross profit		75,356				92,142				97,959				254,892				251,941
Operating expenses:
Research, development and engineering		36,479				37,955				32,978				110,910				96,397
Selling, general and administrative		22,799				25,386				23,308				73,415				71,594
Litigation expense		4,058				7,512				2,807				16,968				5,133
Total operating expenses		63,336				70,853				59,093				201,293				173,124
Operating income		12,020				21,289				38,866				53,599				78,817
Other (expense) income:
Interest income		40				106				85				249				308
Interest expense		(367		)		(354		)		(189		)		(1,107		)		(559		)
Foreign currency (loss) gain		(309		)		87				(202		)		(278		)		(411		)
Recovery of investment		360				356				—				867				—
Other, net		7				71				248				101				316
Other (expense) income, net		(269		)		266				(58		)		(168		)		(346		)
Income before income tax		11,751				21,555				38,808				53,431				78,471
Income tax (benefit) expense		(4,464		)		4,990				(73,367		)		8,212				(69,872		)
Net income		$	16,215			$	16,565			$	112,175			$	45,219			$	148,343
Per Share Data:
Basic per share net income		$	0.10			$	0.10			$	0.72			$	0.28			$	0.96
Diluted per share net income		$	0.09			$	0.10			$	0.69			$	0.26			$	0.92
Weighted-average shares outstanding:
Basic		164,812				164,110				155,734				163,773				154,737
Diluted		171,027				173,518				162,653				173,082				161,146

TriQuint Semiconductor, Inc. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (% of revenue)
		Three Months Ended									Nine Months Ended
		October 1, 2011			July 2, 2011			October 2, 2010			October 1, 2011			October 2, 2010
Revenues		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Cost of goods sold		65.1	%		59.7	%		58.7	%		61.9	%		59.7	%
Gross profit		34.9	%		40.3	%		41.3	%		38.1	%		40.3	%
Operating expenses:
Research, development and engineering		16.9	%		16.6	%		13.9	%		16.6	%		15.4	%
Selling, general and administrative		10.6	%		11.1	%		9.8	%		11.0	%		11.4	%
Litigation expense		1.8	%		3.3	%		1.2	%		2.5	%		0.8	%
Total operating expenses		29.3	%		31.0	%		24.9	%		30.1	%		27.7	%
Operating income		5.6	%		9.3	%		16.4	%		8.0	%		12.6	%
Other (expense) income:
Interest income		0.0	%		0.1	%		0.1	%		0.1	%		0.0	%
Interest expense		(0.2	)%		(0.2	)%		(0.1	)%		(0.2	)%		(0.1	)%
Foreign currency (loss) gain		(0.1	)%		0.0	%		(0.1	)%		(0.0	)%		(0.1	)%
Recovery of investment		0.2	%		0.2	%		—	%		0.1	%		—	%
Other, net		0.0	%		0.0	%		0.1	%		0.0	%		0.1	%
Other (expense) income, net		(0.1	)%		0.1	%		(0.0	)%		(0.0	)%		(0.1	)%
Income before income tax		5.5	%		9.4	%		16.4	%		8.0	%		12.5	%
Income tax (benefit) expense		(2.0	)%		2.2	%		(30.9	)%		1.2	%		(11.2	)%
Net income		7.5	%		7.2	%		47.3	%		6.8	%		23.7	%

TriQuint Semiconductor, Inc. SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP RESULTS (Unaudited) (Dollars in thousands, except per share amounts)
		Three Months Ended																					Nine Months Ended
		October 1, 2011							July 2, 2011							October 2, 2010							October 1, 2011							October 2, 2010
		(% of revenues)							(% of revenues)							(% of revenues)							(% of revenues)							(% of revenues)
GAAP GROSS PROFIT		$	75,356			34.9	%		$	92,142			40.3	%		$	97,959			41.3	%		$	254,892			38.1	%		$	251,941			40.3	%
Adjustment for stock based compensation charges		1,906				0.9	%		1,585				0.7	%		1,321				0.6	%		4,710				0.7	%		3,407				0.5	%
Adjustment for charges associated with acquisitions:
Amortization of intangible assets		1,079				0.5	%		1,079				0.4	%		1,039				0.4	%		3,224				0.5	%		3,124				0.5	%
NON-GAAP GROSS PROFIT		$	78,341			36.3	%		$	94,806			41.4	%		$	100,319			42.3	%		$	262,826			39.3	%		$	258,472			41.3	%
GAAP OPERATING EXPENSES		$	63,336			29.3	%		$	70,853			31.0	%		$	59,093			24.9	%		$	201,293			30.1	%		$	173,124			27.7	%
Adjustment for stock based compensation charges		(4,230		)		(1.9	)%		(5,716		)		(2.5	)%		(3,336		)		(1.4	)%		(13,632		)		(2.0	)%		(9,532		)		(1.5	)%
Adjustment for charges associated with acquisitions:
Change in estimate of earnout liability		—				—	%		681				0.3	%		467				0.2	%		681				0.1	%		467				0.1	%
Writeoff IPR&D for abandoned development effort		(186		)		(0.1	)%		—				—	%		—				—	%		(186		)		—	%		—				—	%
Amortization of intangible assets		(195		)		(0.1	)%		(208		)		(0.1	)%		(213		)		(0.1	)%		(619		)		(0.1	)%		(1,011		)		(0.2	)%
NON-GAAP OPERATING EXPENSES		$	58,725			27.2	%		$	65,610			28.7	%		$	56,011			23.6	%		$	187,537			28.1	%		$	163,048			26.1	%
GAAP OPERATING INCOME		$	12,020			5.6	%		$	21,289			9.3	%		$	38,866			16.4	%		53,599				8.0	%		78,817				12.6	%
Adjustment for stock based compensation charges		6,136				2.8	%		7,301				3.2	%		4,657				2.0	%		18,342				2.7	%		12,939				2.1	%
Adjustment for charges associated with acquisitions		1,460				0.7	%		606				0.2	%		785				0.3	%		3,348				0.5	%		3,668				0.6	%
NON-GAAP OPERATING INCOME		$	19,616			9.1	%		$	29,196			12.7	%		$	44,308			18.7	%		$	75,289			11.2	%		$	95,424			15.3	%
GAAP NET INCOME		$	16,215			7.5	%		$	16,565			7.2	%		$	112,175			47.3	%		$	45,219			6.8	%		$	148,343			23.7	%
Adjustment for stock based compensation charges		6,136				2.8	%		7,301				3.2	%		4,657				2.0	%		18,342				2.7	%		12,939				2.1	%
Adjustment for recovery of investment		(360		)		(0.2	)%		(356		)		(0.2	)%		—				—	%		(867		)		(0.1	)%		—				—	%
Adjustment for non-cash tax (benefit) expense		(4,470		)		(2.0	)%		4,734				2.1	%		(73,511		)		(31.0	)%		7,868				1.2	%		(70,341		)		(11.2	)%
Adjustment for charges associated with acquisitions		1,482				0.7	%		628				0.3	%		873				0.3	%		3,432				0.5	%		3,995				0.6	%
NON-GAAP NET INCOME		$	19,003			8.8	%		$	28,872			12.6	%		$	44,194			18.6	%		$	73,994			11.1	%		$	94,936			15.2	%
GAAP DILUTED EARNINGS PER SHARE		$	0.09						$	0.10						$	0.69						$	0.26						$	0.92
Adjustment for stock based compensation charges		0.04							0.04							0.02							0.11							0.08
Adjustment for recovery of investment		(0.00		)					(0.00		)					—							(0.01		)					—
Adjustment for non-cash tax (benefit) expense		(0.03		)					0.03							(0.44		)					0.05							(0.42		)
Adjustment for charges associated with acquisitions		0.01							0.00							0.01							0.02							0.02
NON-GAAP DILUTED EARNINGS PER SHARE		$	0.11						$	0.17						$	0.28						$	0.43						$	0.59

Our earnings release contains forward looking estimates of non-GAAP gross margin and diluted earnings per share for the fourth quarter of 2011. 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 diluted earnings per share to non-GAAP gross margin and diluted earnings per share for Q4 2011 based on the mid-point of guidance.

Forward Looking GAAP Gross Margin		31.6		%
Adjustment for stock based compensation charges		0.9		%
Adjustment for charges associated with acquisitions		0.5		%
Forward Looking non-GAAP Gross Margin		33.0		%
Forward Looking GAAP Diluted Earnings per Share		$	(0.02	)
Adjustment for stock based compensation charges		0.04
Adjustment for non-cash tax expense		0.04
Adjustment for charges associated with acquisitions		0.01
Forward Looking non-GAAP Diluted Earnings per Share		$	0.07

TriQuint Semiconductor, Inc.
VP of Finance & Administration, CFO
Steve Buhaly, +1-503-615-9401
steve.buhaly@tqs.com
or
Director, Investor Relations
Roger Rowe, +1-503-615-9189
roger.rowe@tqs.com
or
Media Contact:
Director, Marketing Comms
Brandi Frye, +1-503-615-9488
brandi.frye@tqs.com

Source: TriQuint Semiconductor, Inc.

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