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 September 29, 2012, including the following highlights:

• Revenue for the quarter was $200.8 million
• GAAP net loss for the quarter was $11.2 million, or $(0.07) per share
• Non-GAAP net income for the quarter was $2.5 million, or $0.02 per share
• Grew MMPA design wins - 2nd generation device delivers 15% more browsing time
• Released the world's first dual-channel 40/100G driver for high speed optical networks
• Won new DARPA contract to achieve 3x GaN Power Handling
• Received Raytheon 3-Star supplier award
• Captured design win in Small Cell base station application

Commenting on the results for the quarter ended September 29, 2012, Ralph Quinsey, President and Chief Executive Officer, stated "TriQuint's third quarter results improved sequentially with 13% revenue growth driven by increased demand from our major smartphone customers and order strength for infrastructure and defense products. We are expecting ten to twelve percent revenue growth in the fourth quarter with continued strength in each of our major markets but with pressure on gross margins due to planned inventory reductions."

Summary Financial Results for the Three and Nine Months Ended September 29, 2012:

Revenues for the third quarter of 2012 were $200.8 million, down 7% from the third quarter of 2011 and up 13% sequentially. Mobile Devices market revenue grew 13%, Networks grew 11% and Defense was up 16%, in each case sequentially. Revenue for the nine months ended September 29, 2012 was $595.6 million, down 11% from the nine months ended October 1, 2011.

GAAP

Gross margin for the third quarter of 2012 was 30.7%, up sequentially from 25.2%. Gross margin for the nine months ended September 29, 2012 was 28.4%, down from 38.1% for the same period in 2011 due to lower factory utilization.

Operating expenses for the third quarter of 2012 were $67.1 million, or 33% of revenue, down from $69.4 million in the previous quarter due to reduced litigation costs. Operating expenses for the nine months ended September 29, 2012 were $202.6 million compared to $201.3 million for the same period in 2011.

Net loss for the third quarter of 2012 was $11.2 million or $(0.07) per share, compared with a net loss of $13.1 million, or $(0.08) per share, in the previous quarter. Net loss for the nine months ended September 29, 2012 was $22.4 million or $(0.14) per share compared to a net income of $43.8 million or $0.25 per diluted share for the nine months ended October 1, 2011.

Cash and investments decreased by $17.8 million to $144.6 million in the quarter due primarily to higher sales volume later in the quarter resulting in a higher accounts receivable ending balance.

Non-GAAP

Gross margin for the third quarter was 32.5%, up sequentially from 27.9%. Improved product mix and utilization drove the change. Gross margin for the nine months ended September 29, 2012 was 30.4% down from 39.3% for the same period in 2011.

Operating expenses for the quarter were $62.1 million, or 31% of revenue, down from $64.3 million in the prior quarter. Operating expenses for the nine months ended September 29, 2012 were $187.8 million or 32% of revenue.

Net income for the third quarter of 2012 was $2.5 million, or $0.02 per diluted share, up sequentially from a net loss of $15.0 million or $(0.09) per share. Net loss for the nine months ended September 29, 2012 was $8.4 million or $(0.05) per share compared to a net income of $74.0 million or $0.43 per diluted share for the nine months ended October 1, 2011.

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 2012 revenues will be between $220 million and $225 million. Non-GAAP gross margin is expected to be about 30% with improvement in inventory turns impacting fourth quarter gross margin. Fourth quarter non-GAAP net income per share is expected to be between one cent and three cents per diluted share. The Company is 96% booked to the midpoint of revenue guidance.

Additional Information regarding September 29, 2012 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 2012				Q2 2012				Change vs. Q2 2012				Q3 2011				Change vs. Q3 2011				Q3 2012				Q3 2011				Change vs. Q3 2011
Revenue		$	200.8			$	178.0			13		%		$	216.0			(7		)%		$	595.6			$	669.1			(11		)%
Gross Profit		$	61.6			$	44.9			37		%		$	75.4			(18		)%		$	169.1			$	254.9			(34		)%
Gross Margin %		30.7		%		25.2		%		5.5		%		34.9		%		(4.2		)%		28.4		%		38.1		%		(9.7		)%
Op (Loss) Income		$	(5.5	)		$	(24.4	)		(77		)%		$	12.0			(146		)%		$	(33.5	)		$	53.6			(163		)%
Net (Loss) Income		$	(11.2	)		$	(13.1	)		(15		)%		$	14.8			(176		)%		$	(22.4	)		$	43.8			(151		)%
Diluted per share		$	(0.07	)		$	(0.08	)		$	0.01			$	0.09			$	(0.16	)		$	(0.14	)		$	0.25			$	(0.39	)
NON-GAAP RESULTS A
		Three Months Ended																				Nine Months Ended
		Q3 2012				Q2 2012				Change vs. Q2 2012				Q3 2011				Change vs. Q3 2011				Q3 2012				Q3 2011				Change vs. Q3 2011
Revenue		$	200.8			$	178.0			13		%		$	216.0			(7		)%		$	595.6			$	669.1			(11		)%
Gross Profit		$	65.3			$	49.7			31		%		$	78.3			(17		)%		$	180.8			$	262.8			(31		)%
Gross Margin %		32.5		%		27.9		%		4.6		%		36.3		%		(3.8		)%		30.4		%		39.3		%		(8.9		)%
Op (Loss) Income		$	3.3			$	(14.7	)		(122		)%		$	19.6			(83		)%		$	(7.0	)		$	75.3			(109		)%
Net (Loss) Income		$	2.5			$	(15.0	)		(117		)%		$	19.0			(87		)%		$	(8.4	)		$	74.0			(111		)%
Diluted per share		$	0.02			$	(0.09	)		$	0.11			$	0.11			$	(0.09	)		$	(0.05	)		$	0.43			$	(0.48	)
A		Excludes stock based compensation charges, non-cash tax expense, certain entries associated with acquisitions, restructuring 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 34727786. 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 October 31, 2012.

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, certain entries associated with acquisitions, restructuring charges 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 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 fourth quarter revenues, non-GAAP gross margin and net income; our bookings to revenue; improvements in inventory turns; revenue growth; increased demand from our major smartphone customers; order strength for infrastructure and defense products; and continued strength in our major markets. 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: Connecting the Digital World to the Global Network^®

^{*Other names and brands may be claimed as the property of others}

TQNT-F

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
					September 29, 2012				December 31, 2011
Assets
Current assets:
	Cash and cash equivalents				$	114,398			$	116,305
	Investments in marketable securities				30,191				46,006
	Accounts receivable, net				122,779				129,103
	Inventories				154,133				151,577
	Prepaid expenses				9,101				7,051
	Deferred tax assets, net				9,534				11,857
	Other current assets				49,120				35,756
		Total current assets			489,256				497,655
Property, plant and equipment, net					444,699				469,943
Goodwill					3,376				3,376
Intangible assets, net					22,777				22,732
Deferred tax assets — noncurrent, net					59,655				48,957
Other noncurrent assets, net					33,938				12,605
		Total assets			$	1,053,701			$	1,055,268
Liabilities and Stockholders' Equity
Current liabilities:
	Accounts payable				$	58,316			$	67,812
	Accrued payroll				31,191				28,519
	Other accrued liabilities				12,811				9,901
		Total current liabilities			102,318				106,232
Long-term liabilities:
	Long-term income tax liability				3,238				735
	Cross-licensing liability				13,070				—
	Other long-term liabilities				12,429				11,013
		Total liabilities			131,055				117,980
Stockholders' equity:
	Common stock				164				166
	Additional paid-in capital				686,185				678,412
	Accumulated other comprehensive income				140				140
	Retained earnings				236,157				258,570
		Total stockholders' equity			922,646				937,288
		Total liabilities and stockholders' equity			$	1,053,701			$	1,055,268

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
					Three Months Ended												Nine Months Ended
					September 29, 2012				June 30, 2012				October 1, 2011				September 29, 2012				October 1, 2011
Revenues					$	200,821			$	178,002			$	215,988			$	595,553			$	669,096
Cost of goods sold					139,208				133,064				140,632				426,413				414,204
	Gross profit				61,613				44,938				75,356				169,140				254,892
Operating expenses:
	Research, development and engineering				40,871				38,084				36,479				116,029				110,910
	Selling, general and administrative				26,264				27,588				22,799				79,074				73,415
	Litigation expense				—				3,682				4,058				7,546				16,968
		Total operating expenses			67,135				69,354				63,336				202,649				201,293
	Operating (loss) income				(5,522		)		(24,416		)		12,020				(33,509		)		53,599
Other (expense) income:
	Interest income				58				89				40				196				249
	Interest expense				(666		)		(313		)		(367		)		(1,329		)		(1,107		)
	Foreign currency gain (loss)				10				(154		)		(309		)		(108		)		(278		)
	Gain/recovery of investment				—				4				360				6,957				867
	Other, net				13				189				7				276				101
		Other (expense) income, net			(585		)		(185		)		(269		)		5,992				(168		)
(Loss) income before income tax					(6,107		)		(24,601		)		11,751				(27,517		)		53,431
	Income tax expense (benefit)				5,139				(11,551		)		(3,087		)		(5,104		)		9,589
Net (loss) income					$	(11,246	)		$	(13,050	)		$	14,838			$	(22,413	)		$	43,842
Per Share Data:
	Basic per share net (loss) income				$	(0.07	)		$	(0.08	)		$	0.09			$	(0.14	)		$	0.27
	Diluted per share net (loss) income				$	(0.07	)		$	(0.08	)		$	0.09			$	(0.14	)		$	0.25
Weighted-average shares outstanding:
	Basic				163,838				165,355				164,812				165,143				163,773
	Diluted				163,838				165,355				171,027				165,143				173,082

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(% of revenue)
					Three Months Ended									Nine Months Ended
					September 29, 2012			June 30, 2012			October 1, 2011			September 29, 2012			October 1, 2011
Revenues					100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Cost of goods sold					69.3	%		74.8	%		65.1	%		71.6	%		61.9	%
	Gross profit				30.7	%		25.2	%		34.9	%		28.4	%		38.1	%
Operating expenses:
	Research, development and engineering				20.3	%		21.4	%		16.9	%		19.4	%		16.6	%
	Selling, general and administrative				13.1	%		15.4	%		10.6	%		13.3	%		11.0	%
	Litigation expense				—	%		2.1	%		1.8	%		1.3	%		2.5	%
		Total operating expenses			33.4	%		38.9	%		29.3	%		34.0	%		30.1	%
	Operating (loss) income				(2.7	)%		(13.7	)%		5.6	%		(5.6	)%		8.0	%
Other (expense) income:
	Interest income				0.0	%		0.0	%		0.0	%		0.0	%		0.1	%
	Interest expense				(0.3	)%		(0.2	)%		(0.2	)%		(0.2	)%		(0.2	)%
	Foreign currency gain (loss)				0.0	%		(0.1	)%		(0.1	)%		(0.0	)%		(0.0	)%
	Gain/recovery of investment				—	%		0.0	%		0.2	%		1.2	%		0.1	%
	Other, net				0.0	%		0.2	%		0.0	%		0.0	%		0.0	%
		Other (expense) income, net			(0.3	)%		(0.1	)%		(0.1	)%		1.0	%		(0.0	)%
(Loss) income before income tax					(3.0	)%		(13.8	)%		5.5	%		(4.6	)%		8.0	%
	Income tax expense (benefit)				2.6	%		(6.5	)%		(1.4	)%		(0.8	)%		1.4	%
Net (loss) income					(5.6	)%		(7.3	)%		6.9	%		(3.8	)%		6.6	%

SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Unaudited)
(Dollars in thousands, except per share amounts)
					Three Months Ended																					Nine Months Ended
					September 29, 2012							June 30, 2012							October 1, 2011							September 29, 2012							October 1, 2011
					(% of revenues)							(% of revenues)							(% of revenues)							(% of revenues)							(% of revenues)
GAAP GROSS PROFIT					$	61,613			30.7	%		$	44,938			25.2	%		$	75,356			34.9	%		$	169,140			28.4	%		$	254,892			38.1	%
	Adjustment for stock based compensation charges					2,549			1.3	%		1,823				1.0	%		1,906				0.9	%		6,477				1.1	%		4,710				0.7	%
	Adjustment for restructuring charges					—			—	%		1,763				1.0	%		—				—	%		1,763				0.3	%		—				—	%
	Adjustment for charges associated with acquisitions					1,185			0.5	%		1,126				0.7	%		1,079				0.5	%		3,405				0.6	%		3,224				0.5	%
NON-GAAP GROSS PROFIT					$	65,347			32.5	%		$	49,650			27.9	%		$	78,341			36.3	%		180,785				30.4	%		262,826				39.3	%
GAAP OPERATING EXPENSES					$	67,135			33.4	%		$	69,354			38.9	%		$	63,336			29.3	%		$	202,649			34.0	%		$	201,293			30.1	%
	Adjustment for stock based compensation charges					(4,815	)		(2.4	)%		(5,735		)		(3.2	)%		(4,230		)		(1.9	)%		(15,142		)		(2.5	)%		(13,632		)		(2.0	)%
	Adjustment for charges associated with acquisitions					(257	)		(0.0	)%		714				0.4	%		(381		)		(0.2	)%		256				0.0	%		(124		)		(0.0	)%
NON-GAAP OPERATING EXPENSES					$	62,063			31.0	%		$	64,333			36.1	%		$	58,725			27.2	%		$	187,763			31.5	%		$	187,537			28.1	%
GAAP OPERATING (LOSS) INCOME					$	(5,522	)		(2.7	)%		$	(24,416	)		(13.7	)%		$	12,020			5.6	%		$	(33,509	)		(5.6	)%		$	53,599			8.0	%
	Adjustment for stock based compensation charges					7,364			3.7	%		7,558				4.2	%		6,136				2.8	%		21,619				3.6	%		18,342				2.7	%
	Adjustment for restructuring charges					—			—	%		1,763				1.0	%		—				—	%		1,763				0.3	%		—				—	%
	Adjustment for charges associated with acquisitions					1,442			0.6	%		412				0.3	%		1,460				0.7	%		3,149				0.5	%		3,348				0.5	%
NON-GAAP OPERATING INCOME (LOSS)					$	3,284			1.6	%		$	(14,683	)		(8.2	)%		$	19,616			9.1	%		$	(6,978	)		(1.2	)%		$	75,289			11.2	%
GAAP NET (LOSS) INCOME					$	(11,246	)		(5.6	)%		$	(13,050	)		(7.4	)%		$	14,838			7.0	%		$	(22,413	)		(3.8	)%		$	43,842			6.6	%
	Adjustment for stock based compensation charges					7,364			3.7	%		7,558				4.2	%		6,136				2.8	%		21,619				3.6	%		18,342				2.7	%
	Adjustment for restructuring charges					—			0.0	%		1,763				1.0	%		—				—	%		1,763				0.3	%		—				—	%
	Adjustment for gain/recovery of investment					—			0.0	%		(4		)		(0.0	)%		(360		)		(0.2	)%		(6,957		)		(1.2	)%		(867		)		(0.1	)%
	Adjustment for non-cash tax expense (benefit)					4,975			2.6	%		(11,703		)		(6.5	)%		(3,093		)		(1.5	)%		(5,585		)		(0.9	)%		9,245				1.4	%
	Adjustment for charges associated with acquisitions					1,442			0.6	%		412				0.3	%		1,482				0.7	%		3,174				0.6	%		3,432				0.5	%
NON-GAAP NET INCOME (LOSS)					$	2,535			1.3	%		$	(15,024	)		(8.4	)%		$	19,003			8.8	%		$	(8,399	)		(1.4	)%		$	73,994			11.1	%
GAAP DILUTED (LOSS) EARNINGS PER SHARE					$	(0.07	)					$	(0.08	)					$	0.09						$	(0.14	)					$	0.25
	Adjustment for stock based compensation charges					0.04						0.05							0.04							0.13							0.11
	Adjustment for restructuring charges					—						0.01							—							0.01							—
	Adjustment for gain/recovery of investment					0.00						(0.00		)					(0.00		)					(0.04		)					(0.01		)
	Adjustment for non-cash tax expense (benefit)					0.04						(0.07		)					(0.03		)					(0.03		)					0.06
	Adjustment for charges associated with acquisitions					0.01						0.00							0.01							0.02							0.02
NON-GAAP DILUTED EARNINGS (LOSS) PER SHARE					$	0.02						$	(0.09	)					$	0.11						$	(0.05	)					$	0.43

Our earnings release contains forward looking estimates of non-GAAP gross margin and earnings per share for the fourth quarter of 2012. 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 for the fourth quarter of 2012 based on the mid-point of guidance.

Forward Looking GAAP Gross Margin				28.5		%
	Adjustment for stock based compensation charges			1.0		%
	Adjustment for charges associated with acquisitions			0.5		%
Forward Looking non-GAAP Gross Margin				30.0		%
Forward Looking GAAP Loss per Share				$	(0.02	)
	Adjustment for stock based compensation charges			0.05
	Adjustment for non-cash tax expense (benefit)			(0.02		)
	Adjustment for charges associated with acquisitions			0.01
Forward Looking non-GAAP Earnings per Share				$	0.02

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

Source: TriQuint Semiconductor, Inc.

News Provided by Acquire Media