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Technology Stocks : Triquint Semiconductor (TQNT)

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From: Savant7/25/2012 5:01:53 PM
1 Recommendation   of 995
 
TriQuint Announces Second Quarter 2012 Results

HILLSBORO, Ore., Jul 25, 2012 (BUSINESS WIRE) -- TriQuint Semiconductor, Inc.
(TQNT), a leading RF solutions supplier and technology innovator, announces its
financial results for the quarter ended June 30, 2012, including the following
highlights:

-- Revenue for the quarter was $178.0 million

-- GAAP net loss for the quarter was $16.5 million, or $(0.10) per share

-- Non-GAAP net loss for the quarter was $15.0 million, or $(0.09) per share

-- Booked $13 million in orders for F-35 Lightning II Joint Strike Fighter and
TPQ-53 Army radar

-- Announced $12.3 million GaN DARPA contract to develop Ultra-Fast Power Switch
technology

-- Shipping MMPA & BAW content on new Galaxy* phone for Verizon

-- Introduced industry's first 802.11ac Wi-Fi RF module for next-generation
smartphones and tablets

-- Closed major design wins in Fiber-to-the-Home and optical networks

Commenting on the results for the quarter ended June 30, 2012, Ralph Quinsey,
President and Chief Executive Officer, stated, "TriQuint's second quarter
performance was in line with expectations. Mobile devices demand was soft in the
second quarter as the smartphone industry prepares for a seasonally strong second
half, and our Defense and Networks revenue was slightly up year-to-date with a
healthy outlook for the remainder of the year. We believe TriQuint is well
positioned for revenue growth and improved financial performance in the second
half of 2012."

Summary Financial Results for the Three and Six Months Ended June 30, 2012:

Revenues for the second quarter of 2012 were $178.0 million, down 22% from the
second quarter of 2011 and down 18% sequentially. Mobile Devices market revenue
declined 24%, Networks declined 5% and Defense was consistent sequentially.
Revenue for the six months ended June 30, 2012 was $394.7 million, down 13% from
the six months ended July 2, 2011.

GAAP

Gross margin for the second quarter of 2012 was 25.2%, down sequentially from
28.9%. Gross margin for the six months ended June 30, 2012 was 27.2%, down from
39.6% for the same period in 2011 due to low factory utilization.

Operating expenses for the second quarter of 2012 were $69.4 million, or 39% of
revenue, up from $66.2 million in the previous quarter due primarily to higher
medical and engineering expenses. Operating expenses for the six months ended
June 30, 2012 were $135.5 million compared to $138.0 million for the same period
in 2011.

Net loss for the second quarter of 2012 was $16.5 million or $(0.10) per share,
down from net income of $1.9 million, or $0.01 per diluted share, in the previous
quarter. Net loss for the six months ended June 30, 2012 was $14.6 million or
$(0.09) per share compared to a net income of $29.0 million or $0.17 per share
for the six months ended July 2, 2011.

Cash and investments decreased by $32.5 million to $162.4 million in the quarter
due primarily to the stock repurchase of nearly 4.9 million shares for
approximately $25 million.

Non-GAAP

Gross margin for the second quarter was 27.9%, down sequentially from 30.4%.
Gross margin for the six months ended June 30, 2012 was 29.2% down from 40.7% for
the same period in 2011.

Operating expenses for the quarter were $64.3 million, or 36% of revenue, up from
$61.4 million in the prior quarter. Operating expenses for the six months ended
June 30, 2012 was $125.7 million or 32% of revenue.

Net loss for the second quarter of 2012 was $15.0 million, or $(0.09) per share,
down sequentially from net income of $4.1 million or $0.02 per diluted share. Net
loss for the six months ended June 30, 2012 was $10.9 million or $(0.07) per
share compared to a net income of $55.0 million or $0.32 per diluted share for
the six months ended July 2, 2011.

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 third quarter 2012 revenues will be between $195 million and
$205 million and non-GAAP gross margin is expected to be between 30% and 32%.
Third quarter non-GAAP net income per share is expected to be about breakeven.
The Company is 90% booked to the midpoint of revenue guidance.

Additional Information Regarding June 30, 2012 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 EndedSix Months Ended
------------------------------------------------------------------------
Q2 2012Q1 2012ChangeQ2 2011ChangeQ2 2012Q2 2011Change
vs.vs. Q2vs.
Q12011Q2
20122011
------------------------------------------------------------------------
Revenue$ 178.0$ 216.7(18)%$ 228.8(22)%$ 394.7$ 453.1(13)%
-- ------- ------------------ ------------------ ------- ----------------
Gross Profit$44.9$62.6(28)%$92.1(51)%$ 107.5$ 179.5(40)%
-- ------- ------------------ ------------------ ------- ----------------
Gross Margin %25.2 %28.9 %(3.7)%40.3 %(15.1)%27.2 %39.6 %(12.4)%
----------------------------------------------------------------------------------------
Op (Loss) Income$ (24.4)$(3.6)578 %$21.3(215)%$ (28.0)$41.6(167)%
-- ----- ---- ----- --------------- ------------------ ----- ---- ----------------
Net (Loss) Income$ (16.5)$1.9(968)%$16.6(199)%$ (14.6)$29.0(150)%
-- ----- ---- ------------------ ------------------ ----- ---- ----------------
Diluted per share$ (0.10)$0.01$ (0.11)$0.10$ (0.20)$ (0.09)$0.17$ (0.26)
-- ----- ---- ------- ----- ---- ------- ----- ---- ----- ---- ------- ----- --
NON-GAAP RESULTS A
--------------------------------------------------------------------------------------------------------------------------
Three Months EndedSix Months Ended
------------------------------------------------------------------------
Q2 2012Q1 2012ChangeQ2 2011ChangeQ2 2012Q2 2011Change
vs.vs. Q2vs.
Q12011Q2
20122011
------------------------------------------------------------------------
Revenue$ 178.0$ 216.7(18)%$ 228.8(22)%$ 394.7$ 453.1(13)%
-- ------- ------------------ ------------------ ------- ----------------
Gross Profit$49.7$65.8(24)%$94.8(48)%$ 115.4$ 184.5(37)%
-- ------- ------------------ ------------------ ------- ----------------
Gross Margin %27.9 %30.4 %(2.5)%41.4 %(13.5)%29.2 %40.7 %(11.5)%
----------------------------------------------------------------------------------------
Op (Loss) Income$ (14.7)$4.4(434)%$29.2(150)%$ (10.3)$55.7(118)%
-- ----- ---- ------------------ ------------------ ----- ---- ----------------
Net (Loss) Income$ (15.0)$4.1(466)%$28.9(152)%$ (10.9)$55.0(120)%
-- ----- ---- ------------------ ------------------ ----- ---- ----------------
Diluted per share$ (0.09)$0.02$ (0.11)$0.17$ (0.26)$ (0.07)$0.32$ (0.39)
-- ----- ---- ------- ----- ---- ------- ----- ---- ----- ---- ------- ----- --
AExcludes stock based compensation charges, non-cash tax expense,
certain entries associated with acquisitions, restructuring and
other specifically identified non-routine transactions.

Conference Call:

TriQuint will host a conference call this afternoon at 2:00 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 91818717. The call can also be heard via webcast accessed
through the "Investors" section of TriQuint's web site at:
invest.triquint.com. A replay of the conference call will be available
until August 1, 2012.

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, certain entries associated with acquisitions, restructuring charges
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 recorded in connection with
acquisition accounting and charged to the income statement. The non-cash tax
expense excludes 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 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
third quarter revenues, non-GAAP gross margin, net income and our bookings to
revenue; expected seasonality in the smartphone market; and revenue growth and
improved financial performance. 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, 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)

*Other names and brands may be claimed as the property of others

TQNT - F

TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED
BALANCE SHEETS
(Unaudited)
(In thousands)
June 30, 2012December 31,
2011
-----------------------------
Assets
Current assets:
Cash and cash equivalents$127,296$116,305
Investments in marketable securities35,10246,006
Accounts receivable, net98,367129,103
Inventories154,760151,577
Prepaid expenses9,5997,051
Deferred tax assets, net11,52611,857
Other current assets47,52735,756
---------------------------------
Total current assets484,177497,655
Property, plant and equipment, net456,303469,943
Goodwill3,3763,376
Intangible assets, net19,57622,732
Deferred tax assets - noncurrent, net58,45148,957
Other noncurrent assets, net32,26412,605
---------------------------------
Total assets$ 1,054,147$ 1,055,268
==== ================ =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$62,537$67,812
Accrued payroll31,25528,519
Other accrued liabilities11,6209,901
---------------------------------
Total current liabilities105,412106,232
Long-term liabilities:
Long-term income tax liability2,619735
Cross-licensing liability13,316--
Other long-term liabilities10,97611,013
---------------------------------
Total liabilities132,323117,980
Stockholders' equity:
Common stock164166
Additional paid-in capital677,584678,412
Accumulated other comprehensive income138140
Retained earnings243,938258,570
---------------------------------
Total stockholders' equity921,824937,288
---------------------------------
Total liabilities and stockholders' equity$ 1,054,147$ 1,055,268
==== ================ =========

TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands,
except per share amounts)
Three Months EndedSix Months Ended
------------------------------------------------ -------------------------------
June 30,March 31,July 2,June 30,July 2,
20122012201120122011
-------------------------------------------------------------
Revenues$ 178,002$ 216,730$ 228,785$ 394,732$ 453,108
Cost of goods sold133,064154,141136,643287,205273,572
------------------------------------------------------------
Gross profit44,93862,58992,142107,527179,536
Operating expenses:
Research, development and engineering38,08437,07437,95575,15874,431
Selling, general and administrative27,58825,22225,38652,81050,615
Litigation expense3,6823,8647,5127,54612,911
------------------------------------------------------------
Total operating expenses69,35466,16070,853135,514137,957
Operating (loss) income(24,416)(3,571)21,289(27,987)41,579
Other (expense) income:
Interest income8949106138210
Interest expense(313)(350)(354)(663)(741)
Foreign currency (loss) gain(154)3687(118)31
Gain/recovery of investment46,9533566,957507
Other, net189747126394
------------------------------------------------------------
Other (expense) income, net(185)6,7622666,577101
(Loss) income before income tax(24,601)3,19121,555(21,410)41,680
Income tax (benefit) expense(8,086)1,3084,990(6,778)12,676
----------------------------------------------------------------
Net (loss) income$ (16,515)$1,883$16,565$ (14,632)$29,004
=== ======= ===== ========== ========== ======= ===== =======
Per Share Data:
Basic per share net (loss) income$(0.10)$0.01$0.10$(0.09)$0.18
Diluted per share net (loss) income$(0.10)$0.01$0.10$(0.09)$0.17
Weighted-average shares outstanding:
Basic165,355166,237164,110165,796163,257
Diluted165,355170,566173,518165,796173,222

TriQuint Semiconductor, Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
(% of revenue)
Three Months EndedSix Months Ended
---------------------------------- ----------------------
June 30,March 31,July 2,June 30,July 2,
20122012201120122011
-------------------------------------------
Revenues100.0 %100.0 %100.0 %100.0 %100.0 %
Cost of goods sold74.8 %71.1 %59.7 %72.8 %60.4 %
----- --------- --------- -------- --------- ---
25.2 %28.9 %40.3 %27.2 %39.6 %
Gross profit
Operating expenses:
Research, development and engineering21.4 %17.1 %16.6 %19.0 %16.4 %
Selling, general and administrative15.4 %11.6 %11.1 %13.4 %11.2 %
Litigation expense2.1 %1.7 %3.3 %1.9 %2.8 %
----- --------- --------- -------- --------- ---
Total operating expenses38.9 %30.4 %31.0 %34.3 %30.4 %
Operating (loss) income(13.7)%(1.5)%9.3 %(7.1)%9.2 %
Other (expense) income:
Interest income0.0 %0.0 %0.1 %0.0 %0.1 %
Interest expense(0.2)%(0.2)%(0.2)%(0.2)%(0.2)%
Foreign currency (loss) gain(0.1)%0.0 %0.0 %(0.0)%0.0 %
Gain/recovery of investment0.0 %3.2 %0.2 %1.8 %0.1 %
Other, net0.2 %0.0 %0.0 %0.1 %0.0 %
----- --------- --------- -------- --------- ---
Other (expense) income, net(0.1)%3.0 %0.1 %1.7 %0.0 %
(Loss) income before income tax(13.8)%1.5 %9.4 %(5.4)%9.2 %
Income tax (benefit) expense(4.5)%0.6 %2.2 %(1.7)%2.8 %
----- --------- --------- -------- --------- ---
Net (loss) income(9.3)%0.9 %7.2 %(3.7)%6.4 %
===== ========= ========= ======== ========= ===

TriQuint Semiconductor, Inc.
SUPPLEMENTAL RECONCILIATION
OF GAAP TO NON-GAAP RESULTS
(Unaudited)
(Dollars in
thousands, except per share amounts)
Three Months EndedSix Months Ended
------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------
June 30, 2012March 31, 2012July 2, 2011June 30, 2012July 2, 2011
------------------------- -------------------------------------- -------------------------------------- ------------------------ --------------------------------------
(% of revenues)(% of revenues)(% of revenues)(% of revenues)(% of revenues)
GAAP GROSS PROFIT$44,93825.2 %$62,58928.9 %$92,14240.3 %$ 107,52727.2 %$ 179,53639.6 %
Adjustment for stock based compensation charges1,8231.0 %2,1061.0 %1,5850.7 %3,9291.0 %2,8040.6 %
Adjustment for restructuring charges1,7631.0 %---- %---- %1,7630.5 %---- %
Adjustment for charges associated with acquisitions1,1260.7 %1,0950.5 %1,0790.4 %2,2210.5 %2,1440.5 %
----------------- -------------------------------- -------------------------------- ------------------ -------------------------------- --
NON-GAAP GROSS PROFIT$49,65027.9 %$65,79030.4 %$94,80641.4 %115,44029.2 %184,48440.7 %
GAAP OPERATING EXPENSES$69,35438.9 %$66,16030.5 %$70,85331.0 %$ 135,51434.3 %$ 137,95730.4 %
Adjustment for stock based compensation charges(5,735)(3.2)%(4,591)(2.1)%(5,716)(2.5)%(10,326)(2.6)%(9,402)(2.1)%
Adjustment for charges associated with acquisitions7140.4 %(202)(0.1)%4730.2 %5120.1 %2570.2 %
----------------- ---------------------------------- -------------------------------- ------------------ -------------------------------- --
NON-GAAP OPERATING EXPENSES$64,33336.1 %$61,36728.3 %$65,61028.7 %$ 125,70031.8 %$ 128,81228.4 %
GAAP OPERATING (LOSS) INCOME$ (24,416)(13.7)%$(3,571)(1.6)%$21,2899.3 %$ (27,987)(7.1)%$41,5799.2 %
Adjustment for stock based compensation charges7,5584.2 %6,6973.1 %7,3013.2 %14,2553.6 %12,2062.7 %
Adjustment for restructuring charges1,7631.0 %---- %---- %1,7630.5 %---- %
Adjustment for charges associated with acquisitions4120.3 %1,2970.6 %6060.3 %1,7090.4 %1,8870.4 %
----------------- -------------------------------- -------------------------------- ------------------ -------------------------------- --
NON-GAAP OPERATING (LOSS) INCOME$ (14,683)(8.2)%$4,4232.1 %$29,19612.8 %$ (10,260)(2.6)%$55,67212.3 %
GAAP NET (LOSS) INCOME$ (16,515)(9.3)%$1,8830.9 %$16,5657.2 %$ (14,632)(3.7)%$29,0046.4 %
Adjustment for stock based compensation charges7,5584.2 %6,6973.1 %7,3013.2 %14,2553.6 %12,2062.7 %
Adjustment for restructuring charges1,7631.0 %---- %---- %1,7630.5 %---- %
Adjustment for gain/recovery of investment(4)0.0 %(6,953)(3.2)%(356)(0.2)%(6,957)(1.8)%(507)(0.1)%
Adjustment for non-cash tax expense(8,238)(4.6)%1,1430.5 %4,7342.1 %(7,095)(1.9)%12,3382.7 %
Adjustment for charges associated with acquisitions4120.3 %1,3230.6 %6280.3 %1,7350.5 %1,9490.4 %
----------------- -------------------------------- -------------------------------- ------------------ -------------------------------- --
NON-GAAP NET (LOSS) INCOME$ (15,024)(8.4)%$4,0931.9 %$28,87212.6 %$ (10,931)(2.8)%$54,99012.1 %
GAAP DILUTED (LOSS) EARNINGS PER SHARE$(0.10)$0.01$0.10$(0.09)$0.17
Adjustment for stock based compensation charges0.050.040.040.090.07
Adjustment for restructuring charges0.010.000.000.010.00
Adjustment for gain/recovery of investment(0.00)(0.04)(0.00)(0.04)(0.00)
Adjustment for non-cash tax expense(0.05)0.000.03(0.05)0.07
Adjustment for charges associated with acquisitions0.000.010.000.010.01
------------------------------------------------------------------------
NON-GAAP DILUTED (LOSS) EARNINGS PER SHARE$(0.09)$0.02$0.17$(0.07)$0.32

Our earnings release contains forward looking estimates of non-GAAP gross margin
and earnings per share for the third quarter of 2012. 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 for the third quarter of 2012 based on the mid-point of guidance.

Forward Looking GAAP Gross Margin29.5 %
Adjustment for stock based compensation charges1.0 %
Adjustment for charges associated with acquisitions0.5 %
------------------------
Forward Looking non-GAAP Gross Margin31.0 %
Forward Looking GAAP Loss per Share$(0.06)
Adjustment for stock based compensation charges0.05
Adjustment for non-cash tax expense--
Adjustment for charges associated with acquisitions0.01
-----------------------
Forward Looking non-GAAP Earnings per Share$ --

SOURCE: TriQuint Semiconductor, Inc.

TriQuint Semiconductor, Inc.
VP of Finance & Administration, CFO
Steve Buhaly, +1-503-615-9401
steve.buhaly@tqs.com
or
Media Contact:
Director, Marketing Comms
Brandi Frye, +1-503-615-9488
brandi.frye@tqs.com
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