Market Overview

TriQuint Announces Third Quarter 2014 Results

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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 27, 2014, including the following highlights:

  • 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, Ralph Quinsey, President and Chief Executive Officer, stated, “Our financial results in the third quarter were well above expectations due to strong demand and an improved product mix driven by a strategic focus on delivering high performance solutions in each of our markets. The success we are seeing today is due to years of investment in BAW/SAW and high performance GaAs/GaN technologies. We continue to see robust demand and are raising our outlook for the fourth quarter. We remain on track to launch a new combined company, Qorvo, with the merger of TriQuint and RFMD expected to close by year end."

Summary Financial Results for the Three Months Ended September 27, 2014:

Revenue for the third quarter of 2014 was $272.1 million, up 8% from the third quarter of 2013 and 18% sequentially.

Cash and investments increased by $24.4 million this quarter to $247.9 million, driven by operating results and cash proceeds from employee stock option exercises and partially offset by continued investment in premium filter capacity.

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 $87.8 million, up sequentially due to merger and integration related costs.

Net income for the third quarter of 2014 was $26.2 million or $0.14 per diluted share, compared with net income of $5.2 million or $0.03 per diluted share in the second quarter of 2014 and $0.08 per diluted share in the third quarter of 2013.

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 $74.7 million, up slightly sequentially.

Earnings per diluted share for the third quarter of 2014 was $0.28, compared with $0.13 per share in the second quarter of 2014 and $0.16 per diluted share in the third quarter in 2013.

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 $330 million and $340 million, up 23% sequentially at the midpoint. Fourth quarter non-GAAP gross margin is expected to be between 46% and 48%, driven by strong factory execution and product mix. Fourth quarter non-GAAP net income per diluted share is expected to be between $0.40 and $0.45. As of today, the company is fully booked to the midpoint of revenue guidance.

Additional Information Regarding Results for the Three and Nine Months Ended September 27, 2014:

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

vs. Q2

vs. Q3

vs. Q3

Q3 2014

 

Q2 2014

 

2014

 

Q3 2013

   

2013

Q3 2014

 

Q3 2013

 

2013

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  
                                                     
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