Financial Releases
TriQuint Announces Third Quarter 2014 Results
-
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,
Summary Financial Results for the Three Months Ended
Revenue for the third quarter of 2014 was
Cash and investments increased by
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
Net income for the third quarter of 2014 was
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
Earnings per diluted share for the third quarter of 2014 was
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
Additional Information Regarding Results for the Three and Nine
Months Ended
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 |
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vs. Q2 |
vs. Q3 |
vs. Q3 |
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Q3 2014 |
Q2 2014 |
2014 |
Q3 2013 |
2013 |
Q3 2014 |
Q3 2013 |
2013 |
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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 |
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vs. Q2 |
|
vs. Q3 |
vs. Q3 |
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Q3 2014 |
Q2 2014 |
2014 |
Q3 2013 |
2013 |
Q3 2014 |
Q3 2013 |
2013 |
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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 |
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Excludes stock based compensation charges, non-cash tax benefit,
certain entries associated with mergers and acquisitions, including
expenses associated with the planned merger with |
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Conference Call:
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
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
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
Facts About TriQuint
Founded in 1985,
TQNT-F
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(Unaudited) | ||||||||||
(In thousands) | ||||||||||
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Assets |
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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 |
|
September | September |
September |
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27, 2014 | 2014 | 28, 2013 | 27, 2014 |
28, 2013 |
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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 |
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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 | |||||||||||||||||||||||||||||||||||||
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(% 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 | |||||
VP
of Finance & Administration, CFO
steve.buhaly@triquint.com
or
Director, Investor Relations
grant.brown@triquint.com
or
Media
Contact:
Sr. Director,
Corporate Communications
brandi.frye@triquint.com
Source:
News Provided by Acquire Media