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 28, 2013, including the following highlights:

• Revenue for the quarter grew 32% sequentially to $250.8 million
• GAAP net income for the quarter was $13.6 million, or $0.08 per diluted share
• Non-GAAP net income for the quarter was $26.3 million, or $0.16 per diluted share
• Mobile Devices market revenue grew 53% sequentially and 42% over the same period a year ago
• Acquired CAP Wireless and its Spatium™ technology
• Won business with multiple customers with new BAW products
• Announced 5G Wi-Fi reference designs with Broadcom
• Introduced industry's most integrated small cell power amplifier for increasing network capacity
• Released new 100-200 Gb/s solutions to support the worldwide build-out of optical fiber networks

Commenting on the results, Ralph Quinsey, President and Chief Executive Officer, stated, "I am pleased with the strong growth and substantially improved earnings we achieved this quarter. Strong mobile demand drove improved factory utilization while expenses were managed closely. RF content growth is being fueled by next-generation smartphones operating in a more crowded spectrum with expanding frequency requirements. TriQuint is uniquely positioned to supply high-performance solutions for the most challenging and complex RF front end requirements."

Summary Financial Results for the Three Months Ended September 28, 2013:

Revenue for the third quarter of 2013 was $250.8 million, up 25% from the third quarter of 2012 and up 32% sequentially. Revenue grew 53% and 11% in the mobile devices and defense end markets respectively, but declined 11% in the networks end market sequentially. The decline in networks was largely driven by a reduction in non-strategic foundry business.

Cash and investments decreased by $62.4 million to $26.9 million in the quarter. Growth in accounts receivable and repayment of debt drove the decline.

GAAP

Gross margin for the third quarter of 2013 was 36.8%, up sequentially from 29.8% due primarily to higher revenue and factory utilization. Operating expenses for the third quarter of 2013 were $73.4 million, consistent with the previous quarter.

Net income for the third quarter of 2013 was $13.6 million or $0.08 per diluted share, compared with a net loss of $14.9 million, or $(0.09) per share, in the previous quarter.

Non-GAAP

Gross margin for the third quarter was 38.0%, up sequentially from 31.3% due to higher revenue and improved factory utilization. Operating expenses for the quarter were $68.6 million, down 1% sequentially.

Net income for the third quarter of 2013 of $26.3 million, or $0.16 per diluted share, improved sequentially from a net loss of $10.9 million or $(0.07) per 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 2013 revenue will be between $260 million and $270 million. Fourth quarter revenue is currently 88% booked to the midpoint of this guidance. Non-GAAP gross margin is expected to be between 35% and 36%. Fourth quarter non-GAAP net income is expected to be between $0.12 and $0.14 per diluted share.

Additional Information regarding September 28, 2013 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 table later in this press release.

GAAP RESULTS
				Three Months Ended																				Nine Months Ended
												Change																				Change
												vs. Q2								Change vs. Q3												vs. Q3
				Q3 2013				Q2 2013				2013				Q3 2012				2012				Q3 2013				Q3 2012				2012
Revenue				$	250.8			$	190.1			32		%		$	200.8			25		%		$	625.1			$	595.6			5		%
Gross Profit				$	92.2			$	56.7			63		%		$	61.6			50		%		$	187.7			$	169.1			11		%
Gross Margin %				36.8		%		29.8		%		7.0		%		30.7		%		6.1		%		30.0		%		28.4		%		1.6		%
Op Income (loss)				$	18.8			$	(16.4	)		215		%		$	(5.5	)		442		%		$	(32.1	)		$	(33.5	)		4		%
Net Income (loss)				$	13.6			$	(14.9	)		191		%		$	(11.2	)		221		%		$	(29.3	)		$	(22.4	)		(31		)%
Inc(loss) per share				$	0.08			$	(0.09	)		$	0.17			$	(0.07	)		$	0.15			$	(0.18	)		$	(0.14	)		$	(0.04	)
NON-GAAP RESULTS A
				Three Months Ended																				Nine Months Ended
												Change																				Change
												vs. Q2								Change vs. Q3												vs. Q3
				Q3 2013				Q2 2013				2013				Q3 2012				2012				Q3 2013				Q3 2012				2012
Revenue				$	250.8			$	190.1			32		%		$	200.8			25		%		$	625.1			$	595.6			5		%
Gross Profit				$	95.2			$	59.5			60		%		$	65.3			46		%		$	196.7			$	180.8			9		%
Gross Margin %				38.0		%		31.3		%		6.7		%		32.5		%		5.5		%		31.5		%		30.4		%		1.1		%
Op Income (loss)				$	26.7			$	(10.1	)		364		%		$	3.3			709		%		$	(9.4	)		$	(7.0	)		(34		)%
Net Income (loss)				$	26.3			$	(10.9	)		341		%		$	2.5			952		%		$	(11.9	)		$	(8.4	)		(42		)%
Inc(loss) per share				$	0.16			$	(0.07	)		$	0.23			$	0.02			$	0.14			$	(0.07	)		$	(0.05	)		$	(0.02	)
A				Excludes stock based compensation charges, non-cash tax (benefit) expense, certain entries associated with acquisitions 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 77085822. 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 6, 2013.

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 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 charges associated with acquisitions reflect the amortization of intangible and tangible assets and changes to the earnout liability estimates recorded in connection with acquisition accounting and charged to the income statement. 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 strong growth in mobile demand and RF content growth; and statements under "Outlook" regarding TriQuint's anticipated fourth quarter revenues, non-GAAP gross margin and diluted earnings per share for the fourth quarter and our bookings to anticipated revenue. 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: Reach Further, Reach Faster™

TQNT-F

TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
						September 28, 2013					December 31, 2012
Assets
Current assets:
	Cash and cash equivalents					$	26,327				$	116,653
	Investments in marketable securities					553					22,305
	Accounts receivable, net					173,991					132,729
	Inventories					175,583					138,246
	Prepaid expenses					10,635					8,938
	Deferred tax assets, net					12,111					12,530
	Other current assets					51,446					48,382
		Total current assets				450,646					479,783
Property, plant and equipment, net						454,237					448,741
Goodwill						13,790					4,391
Intangible assets, net						25,001					23,163
Deferred tax assets — noncurrent, net						63,109					57,185
Other noncurrent assets, net						32,062					40,415
		Total assets				$	1,038,845				$	1,053,678
Liabilities and Stockholders' Equity
Current liabilities:
	Accounts payable					$	77,588				$	65,388
	Accrued payroll					38,182					33,254
	Other accrued liabilities					13,721					15,132
		Total current liabilities				129,491					113,774
Long-term liabilities:
	Long-term income tax liability					4,070					2,809
	Cross-licensing liability					12,027					12,818
	Other long-term liabilities					16,699					15,878
		Total liabilities				162,287					145,279
Stockholders' equity:
	Common stock					158					161
	Additional paid-in capital					673,635					676,203
	Accumulated other comprehensive loss					(363		)			(366		)
	Retained earnings					203,128					232,401
		Total stockholders' equity				876,558					908,399
		Total liabilities and stockholders' equity				$	1,038,845				$	1,053,678

TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
						Three Months Ended															Nine Months Ended
						September					June 29,					September 29,					September					September 29,
						28, 2013					2013					2012					28, 2013					2012
Revenues						$	250,836				$	190,103				$	200,821				$	625,148				595,553
Cost of goods sold						158,619					133,384					139,208					437,440					426,413
	Gross profit					92,217					56,719					61,613					187,708					169,140
Operating expenses:
	Research, development and engineering					47,023					47,107					40,871					140,201					116,029
	Selling, general and administrative					26,420					25,989					26,264					79,650					86,620
		Total operating expenses				73,443					73,096					67,135					219,851					202,649
	Operating income (loss)					18,774					(16,377		)			(5,522		)			(32,143		)			(33,509		)
Other (expense) income:
	Interest income					7					38					58					83					196
	Interest expense					(1,153		)			(1,137		)			(666		)			(3,429		)			(1,329		)
	Gain/recovery of investment					—					421					—					421					6,957
	Other, net					70					(85		)			23					(324		)			168
		Other (expense) income, net				(1,076		)			(763		)			(585		)			(3,249		)			5,992
Income (loss) before income tax						17,698					(17,140		)			(6,107		)			(35,392		)			(27,517		)
	Income tax expense (benefit)					4,137					(2,255		)			5,139					(6,119		)			(5,104		)
Net income (loss)						$	13,561				$	(14,885	)			$	(11,246	)			$	(29,273	)			$	(22,413	)
Per Share Data:
	Basic per share net income (loss)					$	0.09				$	(0.09	)			$	(0.07	)			$	(0.18	)			$	—
	Diluted per share net income (loss)					0.08					$	(0.09	)			$	(0.07	)			(0.18		)			$	—
Weighted-average shares outstanding:
	Basic					157,105					159,347					163,838					159,057					165,143
	Diluted					163,917					159,347					163,838					159,057					165,143

TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(% of revenue)
						Three Months Ended												Nine Months Ended
						September				June 29,				September				September				September
						28, 2013				2013				29, 2012				28, 2013				29, 2012
Revenues						100.0	%			100.0	%			100.0	%			100.0	%			100.0	%
Cost of goods sold						63.2	%			70.2	%			69.3	%			70.0	%			71.6	%
	Gross profit					36.8	%			29.8	%			30.7	%			30.0	%			28.4	%
Operating expenses:
	Research, development and engineering					18.7	%			24.8	%			20.3	%			22.4	%			19.4	%
	Selling, general and administrative					10.5	%			13.6	%			13.1	%			12.7	%			14.6	%
		Total operating expenses				29.3	%			38.4	%			33.4	%			35.1	%			34.0	%
	Operating income (loss)					7.5	%			(8.6	)%			(2.7	)%			(5.1	)%			(5.6	)%
Other (expense) income:
	Interest income					0.0	%			0.0	%			0.0	%			0.0	%			0.0	%
	Interest expense					(0.5	)%			(0.6	)%			(0.3	)%			(0.6	)%			(0.2	)%
	Gain/recovery of investment					—	%			0.2	%			—	%			0.1	%			1.2	%
	Other, net					0.0	%			(0.0	)%			0.0	%			(0.1	)%			0.0	%
		Other (expense) income, net				(0.4	)%			(0.4	)%			(0.3	)%			(0.6	)%			1.0	%
Income (loss) before income tax						7.1	%			(9.0	)%			(3.0	)%			(5.7	)%			(4.6	)%
	Income tax expense (benefit)					1.5	%			(1.2	)%			2.6	%			(1.0	)%			(0.8	)%
Net income (loss)						5.4	%			(7.8	)%			(5.6	)%			(4.7	)%			(3.8	)%

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
						September 28, 2013								June 29, 2013							September 29, 2012							September 28, 2013							September 29, 2012
						(% of revenues)								(% of revenues)							(% of revenues)							(% of revenues)							(% of revenues)
GAAP GROSS PROFIT						$	92,217			36.8	%			$	56,719		29.8	%			$	61,613		30.7	%			$	187,708		30.0	%			$	169,140		28.4	%
	Adjustment for stock based compensation charges					1,720				0.7	%			1,570			0.8	%			2,549			1.3	%			5,327			0.9	%			6,477			1.1	%
	Adjustment for restructuring charges					—				—	%			—			—	%			—			—	%			—			—	%			1,763			0.3	%
	Adjustment for charges associated with acquisitions					1,272				0.5	%			1,202			0.7	%			1,185			0.5	%			3,682			0.6	%			3,405			0.6	%
NON-GAAP GROSS PROFIT						$	95,209			38.0	%			$	59,491		31.3	%			$	65,347		32.5	%			196,717			31.5	%			180,785			30.4	%
GAAP OPERATING EXPENSES						$	73,443			29.3	%			$	73,096		38.4	%			$	67,135		33.4	%			$	219,851		35.1	%			$	202,649		34.0	%
	Adjustment for stock based compensation charges					(5,193		)		(2.1	)%			(5,623		)	(3.0	)%			(4,815		)	(2.4	)%			(15,802		)	(2.5	)%			(15,142		)	(2.5	)%
	Adjustment for charges associated with acquisitions					308				0.1	%			2,108			1.2	%			(257		)	—	%			2,103			0.4	%			256			0.0	%
NON-GAAP OPERATING EXPENSES						$	68,558			27.3	%			$	69,581		36.6	%			$	62,063		31.0	%			$	206,152		33.0	%			$	187,763		31.5	%
GAAP OPERATING INCOME (LOSS)						$	18,774			7.5	%			$	(16,377	)	(8.6	)%			$	(5,522	)	(2.7	)%			$	(32,143	)	(5.1	)%			$	(33,509	)	(5.6	)%
	Adjustment for stock based compensation charges					6,913				2.8	%			7,193			3.8	%			7,364			3.7	%			21,129			3.4	%			21,619			3.6	%
	Adjustment for restructuring charges					—				—	%			—			—	%			—			—	%			—			—	%			1,763			0.3	%
	Adjustment for charges associated with acquisitions					964				0.3	%			(906		)	(0.5	)%			1,442			0.6	%			1,579			0.2	%			3,149			0.5	%
NON-GAAP OPERATING INCOME (LOSS)						$	26,651			10.6	%			$	(10,090	)	(5.3	)%			$	3,284		1.6	%			$	(9,435	)	(1.5	)%			$	(6,978	)	(1.2	)%
GAAP NET INCOME (LOSS)						$	13,561			5.4	%			$	(14,885	)	(7.8	)%			$	(11,246	)	(5.6	)%			$	(29,273	)	(4.7	)%			$	(22,413	)	(3.8	)%
	Adjustment for stock based compensation charges					6,913				2.8	%			7,193			3.8	%			7,364			3.7	%			21,129			3.4	%			21,619			3.6	%
	Adjustment for restructuring charges					—				—	%			—			—	%			—			—	%			—			—	%			1,763			0.3	%
	Adjustment for gain/recovery of investment					—				—	%			(421		)	(0.2	)%			—			—	%			(421		)	(0.1	)%			(6,957		)	(1.2	)%
	Adjustment for non-cash tax expense (benefit)					4,482				1.8	%			(2,413		)	(1.4	)%			4,975			2.6	%			(6,243		)	(1.0	)%			(5,585		)	(0.9	)%
	Adjustment for charges associated with acquisitions					1,351				0.5	%			(421		)	(0.2	)%			1,442			0.6	%			2,941			0.5	%			3,174			0.6	%
NON-GAAP NET INCOME (LOSS)						$	26,307			10.5	%			$	(10,947	)	(5.8	)%			$	2,535		1.3	%			$	(11,867	)	(1.9	)%			$	(8,399	)	(1.4	)%
GAAP DILUTED EARNINGS (LOSS) PER SHARE						0.08								$	(0.09	)					$	(0.07	)					$	(0.18	)					(0.14		)
	Adjustment for stock based compensation charges					0.04								0.04							0.04							0.13							0.13
	Adjustment for accelerated depreciation of certain machinery and equipment					—								—							—							—							0.01
	Adjustment for gain/recovery of investment					0.00								—							0.00							(0.00		)					(0.04		)
	Adjustment for non-cash tax expense (benefit)					0.03								(0.02		)					0.04							(0.04		)					(0.03		)
	Adjustment for charges associated with acquisitions					0.01								0.00							0.01							0.02							0.02
NON-GAAP DILUTED EARNINGS (LOSS) PER SHARE						$	0.16							$	(0.07	)					$	0.02						$	(0.07	)					$	(0.05	)

Our earnings release contains forward looking estimates of non-GAAP gross margin and earnings per share for the fourth quarter of 2013. 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 of 2013 based on the mid-point of guidance.

Forward Looking Q4 GAAP Gross Margin					25.7		%
	Adjustment for stock based compensation charges				0.8		%
	Adjustment for assets held for sale				8.5		%
	Adjustment for charges associated with acquisitions				0.5		%
Forward Looking Q4 non-GAAP Gross Margin					35.5		%
Forward Looking Q4 GAAP Net Loss per Share					$	(0.02	)
	Adjustment for stock based compensation charges				0.04
	Adjustment for assets held for sale				0.13
	Adjustment for non-cash tax benefit				(0.03		)
	Adjustment for charges associated with acquisitions				0.01
Forward Looking Q4 non-GAAP Net Earnings per Share					$	0.13

TriQuint Semiconductor, Inc.
Steve Buhaly, +1-503-615-9401
VP of Finance & Administration, CFO
steve.buhaly@triquint.com
or
Grant Brown, +1-503-615-9413
Director, Investor Relations
grant.brown@triquint.com
or
Media Contact:
Brandi Frye, +1-503-615-9488
Sr. Director, Corporate Communications
brandi.frye@triquint.com

Source: TriQuint Semiconductor, Inc.

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