Financial Releases
TriQuint Announces Third Quarter 2011 Results
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Revenues for the quarter were
$216.0 million ; revenues for the nine months endedOctober 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,
Summary Financial Results for the Three and Nine Months Ended October 1, 2011:
Revenues for the third quarter of 2011 were
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
Net income for the third quarter of 2011 was
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
Net income for the third quarter of 2011 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 believes fourth quarter revenues will be between
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 |
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Q3 2011 |
Q2 2011 |
Change |
Q3 2010 |
Change |
Q3 2011 |
Q3 2010 |
Change |
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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 |
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Q3 2011 |
Q2 2011 |
Change |
Q3 2010 |
Change |
Q3 2011 |
Q3 2010 |
Change |
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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:
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
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
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
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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 | |||||
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Three Months Ended | Nine Months Ended | |||||||||||||||||||
October 1, |
July 2, |
October 2, |
October 1, |
October 2, |
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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 | |||||||||||||||
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Three Months Ended | Nine Months Ended | ||||||||||||||
October 1, |
July 2, |
October 2, |
October 1, |
October 2, |
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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 | % | |||||
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Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
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(% 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 | ||
VP of Finance & Administration, CFO
steve.buhaly@tqs.com
or
Director,
Investor Relations
roger.rowe@tqs.com
or
Media
Contact:
Director, Marketing Comms
brandi.frye@tqs.com
Source:
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