TriQuint Announces Fourth Quarter and Full Year 2010 Results
HILLSBORO, Ore., Feb 09, 2011 (BUSINESS WIRE) -- TriQuint Semiconductor, Inc.
(TQNT), a leading RF solutions supplier and technology innovator, announces its
financial results for the quarter and year ended December 31, 2010, including the
following highlights:
Revenue for the quarter was $253.4 million, up 7% from Q3'10 and 31% from Q4'09
Revenue for the year was a record $878.7 million Mobile Devices quarterly revenue
grew 12% from Q3'10 and 34% from Q4'09 Networks revenue for Q4'10 grew 50% over
Q4'09 and 2010 revenue grew 54% over 2009 Non-GAAP Net Income for the quarter was
$42.8 million, or $0.25 per diluted share, up nearly 90% from Q4'09 Complete 3G
RF front-end selected by Samsung for its popular Galaxy Tab and Galaxy S
smartphone series Honored by Raytheon Space and Airborne Systems (SAS) with
Supplier Excellence Award Released 77 GHz chipset portfolio used in Delphi
Automotive motion detection products Nearly tripled our 40 Gb/s optical revenue
and a key supplier to Europe's first 100 Gb/s optical data link Announced
availability of first TRIUMF(TM) Multi-Mode Power Amplifier (MMPA) module
Commenting on the results for the quarter ended December 31, 2010, Ralph Quinsey,
President and Chief Executive Officer, stated, "TriQuint turned in record 2010
financial results growing revenue 34%. GAAP net income for the year grew almost
12 fold and non-GAAP earnings almost tripled. I am very pleased with the
performance of the Company. With the world transitioning to a mobile Internet, I
expect a strong market and see another solid growth year for TriQuint in 2011."
Summary Financial Results for the Quarter and Year Ended December 31, 2010:
Revenue for the fourth quarter of 2010 was $253.4 million, up 31% from the fourth
quarter of 2009 and 7% sequentially. Revenue for 2010 was $878.7 million, up 34%
from 2009. Networks continued to enjoy a strong rebound from the lows of 2009,
with quarterly revenue growing 50% year over year. Mobile Devices showed robust
growth, with quarterly revenue increasing 12% sequentially and 34% year over
year.
Gross margin for the fourth quarter of 2010 was 39.0%, up from 37.4% in the
fourth quarter of 2009. Gross margin for 2010 was 39.9%, up from 31.9% for 2009.
On a non-GAAP basis, gross margin for the fourth quarter was 40.1%, up from 38.4%
in the fourth quarter of 2009. Non-GAAP gross margin for 2010 was 41.0%, up from
33.0% for 2009.
Operating expenses for the fourth quarter of 2010 were $61.6 million, or 24% of
revenue, up from $59.1 million in the previous quarter and $53.9 million in the
fourth quarter of 2009. Operating expenses for 2010 were $234.7 million. Non-GAAP
operating expenses for the quarter were $58.0 million or 23% of revenue. Non-GAAP
operating expenses for 2010 were $221.0 million or 25% of revenue.
Net income for the fourth quarter of 2010 was $42.5 million, or $0.25 per diluted
share. Net income for 2010 was $190.8 million or $1.17 per diluted share.
Non-GAAP net income for the fourth quarter was $42.8 million, or $0.25 per
diluted share. Non-GAAP net income for 2010 was $137.7 million, or $0.83 per
diluted 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 first quarter revenue will be between $215 million and $225
million. At the midpoint, this implies revenue growth of 22% over the first
quarter of 2010. For the full year, the Company believes continued robust growth
in demand should lead to revenue growth of about 20%. First quarter non-GAAP net
income is expected to be between $0.14 and $0.16 per share. The Company is 91%
booked to the midpoint of revenue guidance.
Additional Information Regarding December 31, 2010 Results:
GAAP and non-GAAP financial measures are presented in the tables below (in
millions, except for percentage and per share information). Non-GAAP financial
measures are reconciled to the corresponding GAAP financial measures in the
financial statement portion of this press release.
GAAP RESULTS
------------------------------------------------------------------------------------------------------------------------
Three Months EndedYear Ended
----------------------------------------------------------------------------
Q4 2010Q3 2010Change vs.Q4 2009Change vs.20102009Change vs.
Q3Q42009
20102009
----------------------------------------------------------------------------
Revenue$ 253.4$ 237.07 %$ 193.331 %$ 878.7$ 654.334 %
-- ------- -------------------- ------------------- ------- -----------------
GM39.0 %41.3 %(2.3)%37.4 %1.6 %39.9 %31.9 %8.0 %
--------------------------------------------------------------------------------------------
Op Income$37.3$38.9(4)%$18.3104 %$ 116.1$16.6599 %
-- ------- -------------------- ------------------- ------- -----------------
Net Income$42.5$ 112.2(62)%$17.5143 %$ 190.8$16.21,078 %
-- ------- -------------------- ------------------- ------- -----------------
Diluted EPS$0.25$0.69$ (0.44)$0.11$ 0.14$1.17$0.11$ 1.06
------------- ------- -------- ----- ----- -------- ------ ------- -------- ----
NON-GAAP RESULTS A
------------------------------------------------------------------------------------------------------------------------
Three Months EndedYear Ended
----------------------------------------------------------------------------
Q4 2010Q3 2010Change vs.Q4 2009Change vs.20102009Change vs.
Q3Q42009
20102009
----------------------------------------------------------------------------
Revenue$ 253.4$ 237.07 %$ 193.331 %$ 878.7$ 654.334 %
-- ------- -------------------- ------------------- ------- -----------------
GM40.1 %42.3 %(2.2)%38.4 %1.7 %41.0 %33.0 %8.0 %
--------------------------------------------------------------------------------------------
Op Income$43.5$44.3(2)%$23.387 %$ 139.0$38.5261 %
-- ------- -------------------- ------------------- ------- -----------------
Net Income$42.8$44.2(3)%$22.888 %$ 137.7$38.2260 %
-- ------- -------------------- ------------------- ------- -----------------
Diluted EPS$0.25$0.27$ (0.02)$0.14$ 0.11$0.83$0.25$ 0.58
------------- ------- -------- ----- ----- -------- ------ ------- -------- ----
AExcludes stock based compensation charges, non-cash tax (benefit)
expense, certain charges associated with acquisitions, and other
specifically identified non-routine transactions.
Conference Call:
TriQuint will host a conference call this afternoon at 2:00 p.m. PST to discuss
the results for the quarter as well as 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 36925915. The call can also be heard via webcast accessed
through the "Investors" section of TriQuint's web site at:
triquint.com  A replay of the conference call will be
available until February 16, 2011.
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 (benefit) expense, certain
charges 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 non-cash tax
(benefit) expense includes 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 regarding our
performance 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
revenues and non-GAAP net income and growth in demand for TriQuint's products.
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, including
TriQuint's performance; demand for TriQuint's products; TriQuint's ability to
develop new products, improve yields, maintain product pricing and reduce costs;
TriQuint's ability to win customers, increase market share and continue to
provide expected levels of inventory to customers; inventory levels in TriQuint's
markets and market conditions. Additional considerations and important risk
factors are described 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, 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 (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 triquint.com.
TriQuint: Connecting the Digital World to the Global Network(R)
TQNT -F
TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In
thousands)
December 31,October 2,December 31,
201020102009
----------------------------------
Assets
Current assets:
Cash, cash equivalents and investments$ 223,656$ 187,170$ 153,935
Accounts receivable, net138,989141,79588,090
Inventories101,457103,34689,964
Other current assets89,34987,39426,695
----------------------------------------
Total current assets553,451519,705358,684
Property, plant and equipment, net352,188309,914275,985
Other, net72,46371,87945,372
----------------------------------------
Total assets$ 978,102$ 901,498$ 680,041
==== ========== ============= =======
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses$ 115,119$ 112,826$70,547
Other accrued liabilities12,12813,64712,176
----------------------------------------
Total current liabilities127,247126,47382,723
Long-term income tax liability7,3509,24710,077
Other long-term liabilities9,4868,87810,079
----------------------------------------
Total liabilities144,083144,598102,879
Stockholders' equity834,019756,900577,162
----------------------------------------
Total liabilities and stockholders' equity$ 978,102$ 901,498$ 680,041
==== ========== ============= =======
TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In
thousands, except per share amounts)
Three Months EndedYear Ended
------------------------------------------------------ -------------------------------------
December 31,October 2,December 31,December 31,December 31,
20102010200920102009
-------------------------------------------------------------------------
Revenues$ 253,389$ 236,998$ 193,336$ 878,703$ 654,301
Cost of goods sold154,493139,039121,067527,865445,721
----------------------------------------------------------------
Gross profit98,89697,95972,269350,838208,580
Operating expenses:
Research, development and engineering32,85132,97830,474129,248109,445
Selling, general and administrative24,49623,30822,60896,09078,399
Litigation expense4,2282,8078619,3601,159
Settlement of lawsuit--------2,950
----------------------------------------------------------------
Total operating expenses61,57559,09353,943234,698191,953
Operating income37,32138,86618,326116,14016,627
Other income (expense):
Interest income6885127376805
Interest expense(555)(189)(260)(1,115)(981)
Foreign currency loss(157)(202)(138)(569)(191)
Recovery (impairment) of investment1,340--(116)1,340(116)
Other, net4124868357506
----------------------------------------------------------------
Other income (expense), net737(58)(319)38923
Income before income tax38,05838,80818,007116,52916,650
Income tax (benefit) expense(4,436)(73,367)530(74,308)405
---------------------------------------------------------------------------
Net income$42,494$ 112,175$17,477$ 190,837$16,245
==== ========== =========== =========== =========== =======
Per Share Data
Basic per share net income$0.27$0.72$0.11$1.22$0.11
Diluted per share net income$0.25$0.69$0.11$1.17$0.11
Weighted-average shares outstanding:
Basic159,333155,734152,475155,870149,759
Diluted170,373162,653157,696163,486152,326
TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(%
of revenue)
Three Months EndedYear Ended
------------------------------------------ -----------------------------
December 31,October 2,December 31,December 31,December 31,
20102010200920102009
----------------------------------------------------------
Revenues100.0%100.0%100.0%100.0%100.0%
Cost of goods sold61.0%58.7%62.6%60.1%68.1%
------ ----------- ----------- ------------ ------------ ------
Gross profit39.0%41.3%37.4%39.9%31.9%
Operating expenses:
Research, development and engineering13.0%13.9%15.7%14.7%16.7%
Selling, general and administrative9.7%9.8%11.8%10.9%12.0%
Litigation expense1.6%1.2%0.4%1.1%0.2%
Settlement of lawsuit--%--%--%--%0.5%
------ ----------- ----------- ------------ ------------ ------
Total operating expenses24.3%24.9%27.9%26.7%29.4%
Operating income14.7%16.4%9.5%13.2%2.5%
Other income (expense):
Interest income0.1%0.1%0.1%0.0%0.1%
Interest expense(0.2)%(0.1)%(0.1)%(0.1)%(0.1)%
Foreign currency loss(0.1)%(0.1)%(0.1)%(0.1)%(0.0)%
Recovery (impairment) of investment0.5%--%(0.1)%0.2%(0.0)%
Other, net0.0%0.1%0.0%0.0%0.0%
------ ----------- ----------- ------------ ------------ ------
Other income (expense), net0.3%(0.0)%(0.2)%0.0%(0.0)%
Income before income tax15.0%16.4%9.3%13.2%2.5%
Income tax (benefit) expense(1.8)%(30.9)%0.3%(8.5)%--%
------ ----------- ----------- ------------ ------------ ------
Net income16.8%47.3%9.0%21.7%2.5%
====== =========== =========== ============ ============ ======
TriQuint Semiconductor, Inc.
SUPPLEMENTAL RECONCILIATION
OF GAAP TO NON-GAAP RESULTS
(Unaudited)
(In
thousands, except per share amounts)
Three Months EndedYear Ended
----------------------------------------------------------------------------- ---------------------------------------------------
December 31,October 2,December 31,December 31,December 31,
20102010200920102009
----------------------------------------------------------------------------------------------------
(% of revenues)(% of revenues)(% of revenues)(% of revenues)(% of revenues)
GAAP GROSS PROFIT$98,89639.0%$97,95941.3%$ 72,26937.4%$ 350,83839.9%$ 208,58031.9%
Adjustment for stock based compensation charges1,2460.5%1,3210.6%9610.5%4,6520.5%3,4920.5%
Adjustment for charges associated with acquisitions
Amortization of intangible assets1,0450.4%1,0390.4%1,0210.5%4,1330.5%3,4920.5%
Writeoff IPR&D for abandoned development effort3260.2%----%----%3650.1%----%
Increase in value of inventory----%----%----%----%3380.1%
-------------- ------------------ ------------- ----------------- ----------------- ---
NON-GAAP GROSS PROFIT$ 101,51340.1%$ 100,31942.3%$ 74,25138.4%$ 359,98841.0%$ 215,90233.0%
GAAP OPERATING EXPENSES$61,57524.3%$59,09324.9%$ 53,94327.9%$ 234,69826.7%$ 191,95329.4%
Adjustment for stock based compensation charges(3,375)(1.3)%(3,336)(1.4)%(2,714)(1.4)%(12,908)(1.5)%(10,692)(1.6)%
Adjustment for settlement of lawsuit--%----%----%----%(2,950)(0.5)%
Adjustment for restructuring expense(11)(0.0)%(11)(0.0)%----%(417)(0.0)%----%
Adjustment for charges associated with acquisitions
Amortization of intangible assets(202)(0.1)%(202)(0.1)%(239)(0.1)%(806)(0.1)%(860)(0.1)%
Change in estimate of earnout liability----%4670.2%----%4670.1%----%
-------------- ------------------ ------------- ----------------- ----------------- ---
NON-GAAP OPERATING EXPENSES$57,98722.9%$56,01123.6%$ 50,99026.4%$ 221,03425.2%$ 177,45127.2%
GAAP OPERATING INCOME$37,32114.7%$38,86616.4%$ 18,3269.5%$ 116,14013.2%$16,6272.5%
Adjustment for stock based compensation charges4,6211.8%4,6572.0%3,6761.9%17,5602.0%14,1842.1%
Adjustment for restructuring expense110.0%110.0%----%4170.0%----%
Adjustment for settlement of lawsuit----%----%----%----%2,9500.5%
Adjustment for charges associated with acquisitions1,5730.7%7740.3%1,2600.6%4,8370.6%4,6900.7%
-------------- ------------------ ------------- ----------------- ----------------- ---
NON-GAAP OPERATING INCOME$43,52617.2%$44,30818.7%$ 23,26212.0%$ 138,95415.8%$38,4515.8%
GAAP NET INCOME$42,49416.8%$ 112,17547.3%$ 17,4779.0%$ 190,83721.7%$16,2452.5%
Adjustment for stock based compensation charges4,6211.8%4,6572.0%3,6761.9%17,5602.0%14,1852.1%
Adjustment for restructuring expense110.0%110.0%----%4170.0%----%
Adjustment for settlement of lawsuit----%----%----%----%2,9500.5%
Adjustment for recovery of investment(1,340)(0.5)%----%----%(1,340)(0.2)%----%
Adjustment for non-cash tax (benefit) expense(4,720)(1.9)%(73,510)(31.0)%1720.1%(75,061)(8.5)%(632)(0.1)%
Adjustment for charges associated with acquisitions1,7360.7%8620.3%1,4640.8%5,3280.7%5,4550.8%
-------------- ------------------ ------------- ----------------- ----------------- ---
NON-GAAP NET INCOME$42,80216.9%$44,19518.6%$ 22,78911.8%$ 137,74115.7%$38,2035.8%
GAAP DILUTED EARNINGS PER SHARE$0.25$0.69$0.11$1.17$0.11
Adjustment for stock based compensation charges0.030.030.020.100.09
Adjustment for restructuring expense0.000.00--0.00--
Adjustment for settlement of lawsuit--------0.02
Adjustment for recovery of investment(0.01)----(0.02)--
Adjustment for non-cash tax (benefit) expense(0.03)(0.45)0.00(0.45)(0.00)
Adjustment for charges associated with acquisitions0.01(0.00)0.010.030.03
-------------------------------------------------
NON-GAAP DILUTED EARNINGS PER SHARE$0.25$0.27$0.14$0.83$0.25
Our earnings release contains forward looking estimates of non-GAAP diluted
earnings per share for the first quarter of 2011. We provide these non-GAAP
measures on a prospective basis for the same reasons that we provide them to
investors on a historical basis. The following table provides a reconciliation of
GAAP diluted earnings per share to non-GAAP diluted earnings per share for Q1
2011 based on the mid-point of guidance.
Forward Looking GAAP Diluted Earnings per Share$ 0.09
Adjustment for stock based compensation charges0.03
Adjustment for non-cash tax expense0.02
Adjustment for charges associated with acquisitions0.01
--------
Forward Looking non-GAAP Diluted Earnings per Share$ 0.15
SOURCE: TriQuint Semiconductor, Inc.
TriQuint Semiconductor, Inc.
VP of Finance & Administration, CFO
Steve Buhaly, +1-503-615-9401
sbuhaly@tqs.com
or
Investor Relations
Roger Rowe, +1-503-615-9189
roger.rowe@tqs.com
or
Media Contact:
Director, Marketing Comms
Brandi Frye, +1-503-615-9488
bfrye@tqs.com |
