TriQuint Announces Fourth Quarter and Full Year 2012 Results
HILLSBORO, Ore., Feb 06, 2013 (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, 2012, including the
following highlights:
-- Revenue for the quarter was $233.6 million, up 16% from Q3 2012
-- Mobile Devices market revenue grew 19% sequentially from Q3 2012
-- Strong demand for 5GHz WLAN drove 66% sequential growth in connectivity in
smartphones
-- Ramping high-performance LTE filters for Samsung, LG, HTC and Motorola
Mobility smartphones
-- Record Optical sales in 2012 fueled by industry leading 40/100G modulator
drivers
-- VSAT revenue up 40% sequentially with production launch of major Ka band
program
-- Set industry record for gallium nitride (GaN) reliability performance
Commenting on the Company's financial results, Ralph Quinsey, President and Chief
Executive Officer, stated "TriQuint's revenue for Q4 was $233.6 million and
non-GAAP earnings per share was $0.04, both above our guidance. We are continuing
to expand capacity for high performance filters in anticipation of stronger
demand in the second half of 2013 and beyond. I believe these investments will
lead to improved financial results for the company."
Summary Financial Results for the Quarter and Year Ended December 31, 2012:
Revenue for the fourth quarter of 2012 was $233.6 million, up 3% from the fourth
quarter of 2011 and up 16% sequentially. Mobile Devices revenue grew 19%,
Networks revenue grew 1% and Defense & Aerospace grew 36%, in each case,
sequentially. Revenue for 2012 was $829.2 million, down 7% from 2011 due to a
decrease in Mobile Devices revenue.
GAAP
Gross margin for the fourth quarter of 2012 was 29.3%, down from 30.7% in the
prior quarter. Gross margin for the year ended December 31, 2012 was 28.7%, down
from 35.9% for 2011. Lower factory utilization drove the year-to-year decline.
Operating expenses for the fourth quarter of 2012 were $72.0 million, or 31% of
revenue, up from $67.1 million in the prior quarter. Operating expenses for 2012
were $274.7 million, up from $262.9 million in 2011. The increase in the fourth
quarter and for 2012 was due to higher engineering expenses.
Net loss for the fourth quarter of 2012 was $3.8 million, or $(0.02) per diluted
share. Net loss for 2012 was $26.2 million or $(0.16) per diluted share.
Non-GAAP
Gross margin for the fourth quarter of 2012 was 31.7%, down from 32.5% in the
prior quarter. Gross margin for 2012 was 30.7%, down from 37.2% for 2011. Lower
factory utilization drove the year-to-year decline.
Operating expenses for the fourth quarter of 2012 were $66.6 million or 29% of
revenue, up $4.6 million from the prior quarter. Operating expenses for 2012 were
$254.4 million or 31% of revenue, up from $244.4 million in 2011. The increase in
the fourth quarter and for 2012 was due to higher engineering expenses.
Net income for the fourth quarter of 2012 was $6.2 million, or $0.04 per diluted
share. Net loss for 2012 was $2.2 million, or $(0.01) 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 2013 revenue will be between $180 million and
$190 million. First quarter 2013 non-GAAP net loss is expected to be between
$0.12 and $0.14 per share. The Company is 98% booked to the midpoint of revenue
guidance.
Additional Information Regarding December 31, 2012 Results:
GAAP and non-GAAP financial measures are presented in the tables below (in
millions, except for percentage and per share information). Non-GAAP financial
measures are reconciled to the corresponding GAAP financial measures in the
financial statement portion of this press release.
GAAP RESULTS
----------------------------------------------------------------------------------------------------------------------
Three Months EndedYear Ended
-----------------------------------------------------------------------
Q4 2012Q3 2012ChangeQ4 2011Change20122011Change
vs. Q3vs. Q4vs. 2011
20122011
-----------------------------------------------------------------------
Revenue$ 233.6$ 200.816 %$ 227.03 %$ 829.2$ 896.1(7)%
-- ------- ----------------- ------------------ ------- ----------------
Gross Profit$68.5$61.611 %$67.02 %$ 237.6$ 321.9(26)%
------- ----------------- ------------------ ------- ----------------
Gross Margin %29.3 %30.7 %(1.4)%29.5 %(0.2)%28.7 %35.9 %(7.2)%
---------------------------------------------------------------------------------------
Op (loss)/Inc$(3.6)$(5.5)(35)%$5.4(167)%$ (37.1)$59.0(163)%
-- ----- ---- ----- -------------- ------------------ ----- ---- ----------------
Net (loss)/Inc$(3.8)$ (11.2)(66)%$4.3(188)%$ (26.2)$48.2(154)%
-- ----- ---- ----- -------------- ------------------ ----- ---- ----------------
Diluted EPS$ (0.02)$ (0.07)$ 0.05$0.03$ (0.05)$ (0.16)$0.28$ (0.44)
---------------- ----- ---- ----- ---- ------ ------- ----- ---- ----- ---- ------- ----- --
NON-GAAP RESULTS A
-------------------------------------------------------------------------------------
Three Months EndedYear Ended
-----------------------------------------------------------------------
Q4 2012Q3 2012ChangeQ4 2011Change20122011Change
vs. Q3vs. Q4vs. 2011
20122011
-----------------------------------------------------------------------
Revenue$ 233.6$ 200.816 %$ 227.03 %$ 829.2$ 896.1(7)%
-- ------- ----------------- ------------------ ------- ----------------
Gross Profit$74.1$65.313 %$70.35 %$ 254.9$ 333.2(23)%
-- ------- ----------------- ------------------ ------- ----------------
Gross Margin %31.7 %32.5 %(0.8)%31.0 %0.7 %30.7 %37.2 %(6.5)%
---------------------------------------------------------------------------------------
Op Income$7.5$3.3127 %$13.4(44)%$0.5$88.7(99)%
-- ------- ----------------- ------------------ ------- ----------------
Net Income$6.2$2.5148 %$13.3(53)%$(2.2)$87.3(103)%
-- ------- ----------------- ------------------ ----- ---- ----------------
Diluted EPS$0.04$0.02$ 0.02$0.08$ (0.04)$ (0.01)$0.51$ (0.52)
---------------- ------- ------- ------ ------- ----- ---- ----- ---- ------- ----- --
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 1:30 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 88651773. 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 February 13, 2013.
Non-GAAP Financial Measures:
This press release provides financial measures for non-GAAP net income, diluted
earnings per share, gross profit, gross margin, 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 per share, and strong demand in the second half
of 2013 and beyond. 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; the impact on our costs and customers of product reliability and
scrap levels; 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 1981, TriQuint Semiconductor (TQNT) is a leading global provider of
innovative RF solutions and foundry services 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: Reach Further, Reach Faster(TM)
TQNT-F
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
December 31,December 31,
20122011
---------------------------------
Assets
Current assets:
Cash and cash equivalents$116,653$116,305
Investments in marketable securities22,30546,006
Accounts receivable, net132,729129,103
Inventories138,246151,577
Prepaid expenses8,9387,051
Deferred tax assets, net12,53011,857
Other current assets48,38235,756
---------------------------------
Total current assets479,783497,655
Property, plant and equipment, net448,741469,943
Goodwill4,3913,376
Intangible assets, net23,16322,732
Deferred tax assets - noncurrent, net57,18548,957
Other noncurrent assets, net40,41512,605
---------------------------------
Total assets$ 1,053,678$ 1,055,268
==== ================ =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$65,388$67,812
Accrued payroll33,25428,519
Other accrued liabilities15,1329,901
---------------------------------
Total current liabilities113,774106,232
Long-term liabilities:
Long-term income tax liability2,809735
Cross-licensing liability12,818--
Other long-term liabilities15,87811,013
---------------------------------
Total liabilities145,279117,980
Stockholders' equity:
Common stock161166
Additional paid-in capital676,203678,412
Accumulated other comprehensive income(366)140
Retained earnings232,401258,570
---------------------------------
Total stockholders' equity908,399937,288
---------------------------------
Total liabilities and stockholders' equity$ 1,053,678$ 1,055,268
==== ================ =========
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Three Months EndedYear Ended
-------------------------------------------------------------- -------------------------------------
December 31,September 29,December 31,December 31,December 31,
20122012201120122011
---------------------------------------------------------------------------------
Revenues$ 233,621$ 200,821$ 226,987$ 829,174$ 896,083
Cost of goods sold165,165139,208159,948591,578574,152
-----------------------------------------------------------------------
Gross profit68,45661,61367,039237,596321,931
Operating expenses:
Research, development and engineering44,45340,87135,992160,483146,902
Selling, general and administrative27,56926,26423,364106,64296,779
Litigation expense----2,2567,54719,224
-----------------------------------------------------------------------
Total operating expenses72,02267,13561,612274,672262,905
Operating (loss) income(3,566)(5,522)5,427(37,076)59,026
Other (expense) income:
Interest income455844241293
Interest expense(784)(666)(460)(2,112)(1,567)
Recovery of investment----4956,9571,363
Other, net(53)2335116(143)
-------------------------------------------------------------------------------
Other (expense) income, net(792)(585)1145,202(54)
(Loss) income before income tax(4,358)(6,107)5,541(31,874)58,972
Income tax (benefit) expense(602)5,1391,232(5,705)10,822
-------------------------------------------------------------------------------
Net (loss) income$(3,756)$ (11,246)$4,309$ (26,169)$48,150
======= ======= =========== ======= ======== =========== ======= ======== =======
.
Per Share Data
Basic per share net (loss) income$(0.02)$(0.07)$0.03$(0.16)$0.29
Diluted per share net (loss) income$(0.02)$(0.07)$0.03$(0.16)$0.28
Weighted-average shares outstanding:
Basic162,083163,838165,711164,366164,256
Diluted162,083163,838168,753164,366172,510
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(% of revenue)
Three Months EndedYear Ended
---------------------------------------------------------------------------
December 31,September 29,December 31,December 31,December 31,
20122012201120122011
----------------------------------------------------------------------------
Revenues100.0 %100.0 %100.0 %100.0 %100.0 %
Cost of goods sold70.7 %69.3 %70.5 %71.3 %64.1 %
-------------- -------------------- ------------ ------------ ------------ ------
Gross profit29.3 %30.7 %29.5 %28.7 %35.9 %
Operating expenses:
Research, development and engineering19.0 %20.3 %15.9 %19.4 %16.4 %
Selling, general and administrative11.8 %13.1 %10.3 %12.9 %10.8 %
Litigation expense----0.9 %0.9 %2.1 %
---------------------------------- ------------ ------------ ------
Total operating expenses30.8 %33.4 %27.1 %33.2 %29.3 %
Operating (loss) income(1.5)%(2.7)%2.4 %(4.5)%6.6 %
Other income (expense):
Interest income0.0 %0.0 %0.0 %0.1 %0.0 %
Interest expense(0.3)%(0.3)%(0.2)%(0.2)%(0.2)%
Recovery of investment----0.2 %0.8 %0.2 %
Other, net(0.1)%0.0 %0.0 %0.0 %0.0 %
-------------- -------------------- ------------ ------------ ------------ ------
Other (expense) income, net(0.4)%(0.3)%0.0 %0.7 %(0.0)%
(Loss) income before income tax(1.9)%(3.0)%2.4 %(3.8)%6.6 %
Income tax (benefit) expense(0.3)%2.6 %0.5 %(0.6)%1.2 %
-------------- -------------------- ------------ ------------ ------------ ------
Net (loss) income(1.6)%(5.6)%1.9 %(3.2)%5.4 %
============== ==================== ============ ============ ============ ======
SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Unaudited)
(In thousands, except per share amounts and percentages)
Three Months EndedYear Ended
-------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------
December 31,September 29,December 31,December 31,December 31,
20122012201120122011
-------------------------------------------------------------------------------------------------------------------------------------------------------
(% of revenues)(% of revenues)(% of revenues)(% of revenues)(% of revenues)
GAAP GROSS PROFIT$68,45629.3 %$61,61330.7 %$67,03929.5 %$ 237,59628.7 %$ 321,93135.9 %
Adjustment for stock based compensation charges2,5441.1 %2,5491.3 %2,2071.0 %9,0211.1 %6,9180.8 %
Adjustment for restructuring charges------------1,7630.2 %----
Adjustment for accelerated depreciation of certain machinery and2,0180.9 %--------2,0180.2 %----
equipment
Adjustment for charges associated with acquisitions1,1260.4 %1,1850.5 %1,0790.5 %4,5310.5 %4,3030.5 %
------------------------------ -------------------------------- -------------------------------- ------------------ -------------------------------- --
NON-GAAP GROSS PROFIT$74,14431.7 %$65,34732.5 %$70,32531.0 %$ 254,92930.7 %$ 333,15237.2 %
GAAP OPERATING EXPENSES$72,02230.8 %$67,13533.4 %$61,61227.1 %$ 274,67233.2 %$ 262,90529.3 %
Adjustment for stock based compensation charges(5,062)(2.2)%(4,815)(2.4)%(4,532)(2.0)%(20,204)(2.5)%(18,164)(2.0)%
Adjustment for charges associated with acquisitions(312)(0.1)%(257)(0.1)%(202)(0.1)%(56)(0.1)%(326)--
------------------- -------------- --------------------- -------------- --------------------- -------------- ----------------- ---- --------------------- --------------
NON-GAAP OPERATING EXPENSES$66,64828.5 %$62,06330.9 %$56,87825.0 %$ 254,41230.6 %$ 244,41527.3 %
GAAP OPERATING (LOSS) INCOME$(3,566)(1.5)%$(5,522)(2.7)%$5,4272.4 %$ (37,076)(4.5)%$59,0266.6 %
Adjustment for stock based compensation charges7,6063.3 %7,3643.7 %6,7393.0 %29,2253.6 %25,0822.8 %
Adjustment for restructuring charges------------1,7630.2 %----
Adjustment for accelerated depreciation of certain machinery and2,0180.9 %--------2,0180.2 %----
equipment
Adjustment for charges associated with acquisitions1,4380.5 %1,4420.6 %1,2810.6 %4,5870.6 %4,6290.5 %
------------------------------ -------------------------------- -------------------------------- ------------------ -------------------------------- --
NON-GAAP OPERATING INCOME$7,4963.2 %$3,2841.6 %$13,4476.0 %$5170.1 %$88,7379.9 %
GAAP NET (LOSS) INCOME$(3,756)(1.6)%$ (11,246)(5.6)%$4,3091.9 %$ (26,169)(3.2)%$48,1505.4 %
Adjustment for stock based compensation charges7,6063.3 %7,3643.7 %6,7393.0 %29,2253.6 %25,0822.8 %
Adjustment for restructuring charges------------1,7630.2 %----
Adjustment for accelerated depreciation of certain machinery and2,0180.9 %--------2,0180.2 %----
equipment
Adjustment for recovery of investment--------(495)(0.2)%(6,957)(0.9)%(1,363)(0.2)%
Adjustment for non-cash tax (benefit) expense(1,196)(0.5)%4,9552.6 %1,3070.5 %(6,801)(0.8)%10,5521.2 %
Adjustment for charges associated with acquisitions1,5400.6 %1,4420.6 %1,4020.6 %4,7150.6 %4,8330.5 %
------------------------------ -------------------------------- -------------------------------- ------------------ -------------------------------- --
NON-GAAP NET INCOME (LOSS)$6,2122.7 %$2,5151.3 %$13,2625.8 %$(2,206)(0.3)%$87,2549.7 %
GAAP DILUTED (LOSS) EARNINGS PER SHARE$(0.02)$(0.07)$0.03$(0.16)$0.28
Adjustment for stock based compensation charges0.050.040.040.180.15
Adjustment for restructuring charges------0.01--
Adjustment for accelerated depreciation of certain machinery and0.01----0.01--
equipment
Adjustment for recovery of investment----0.00(0.04)(0.01)
Adjustment for non-cash tax (benefit) expense(0.01)0.040.00(0.04)0.06
Adjustment for charges associated with acquisitions0.010.010.010.030.03
----------------------------------------------------------------------------
NON-GAAP DILUTED EARNINGS (LOSS) PER SHARE$0.04$0.02$0.08$(0.01)$0.51
Our earnings release contains forward looking estimates of non-GAAP diluted
earnings per share for the first quarter of 2013. We provide these non-GAAP
measures on a prospective basis for the same reasons that we provide them to
investors on a historical basis. The following table provides a reconciliation of
GAAP diluted earnings per share to non-GAAP diluted earnings per share for Q1
2013 based on the mid-point of guidance.
Forward Looking GAAP Loss per Share$ (0.10)
Adjustment for stock based compensation charges0.05
Adjustment for non-cash tax (benefit) expense(0.09)
Adjustment for charges associated with acquisitions0.01
---------
Forward Looking non-GAAP Diluted Loss per Share$ (0.13)
cts.businesswire.com
SOURCE: TriQuint Semiconductor, Inc.
TriQuint Semiconductor, Inc
VP of Finance & Administration, CFO
Steve Buhaly, +1-503-615-9401
sbuhaly@tqs.com
or
Media Contact:
TriQuint Semiconductor, Inc.
Sr Director, Marketing Comms
Brandi Frye, +1-503-615-9488
bfrye@tqs.com |
