HILLSBORO, Ore. — (BUSINESS WIRE) — April 23, 2014 — TriQuint Semiconductor, Inc. (NASDAQ: TQNT), a leading RF solutions supplier and technology innovator, announces its financial results for the quarter ended March 29, 2014, including the following highlights:
- Revenue was $177.6 million with a strong book-to-bill ratio of 1.22
- GAAP gross margin was 33% and net loss was $(0.12) per share
- Non-GAAP gross margin was 35% and net loss was $(0.06) per share
- Received orders for 4th S-Band radar system
- Strong book-to-bill of 1.74 for discrete premium filters
- New MMPAs with envelope tracking captured design wins in Korea & China
- Introduced 130 Watt SpatiumTM Solid State Power Amplifier for Ka-Band Satellite Communications
- Base station product revenue more than doubled from Q1 2013 1
- Received Supplier Excellence Award for Outstanding Performance from Hughes Network Systems, LLC
Commenting on the results, Ralph Quinsey, President and Chief Executive Officer, stated, “Better product mix and successful factory cost management led to a substantially better gross margin compared to Q1 of 2013 and earnings well above analyst expectations. Demand for Q2 remains healthy as we transition into our seasonally stronger quarters and I am confident we continue to be on track to deliver significantly improved financial results in 2014. Merger preparation and integration planning with RFMD has successfully ramped up in anticipation of a second half 2014 close.”
1 Excludes commercial foundry revenue
Summary Financial Results for the Three Months Ended March 29, 2014:
Revenue for the first quarter of 2014 was $177.6 million, down 4% from the first quarter of 2013 and 34% sequentially. First quarter revenue declined 4% from the first quarter of 2013, driven primarily by the defense market.
Cash and investments increased by $84.5 million to $163.5 million driven by a reduction in accounts receivable and cash proceeds from employee stock option exercises.
GAAP
Gross margin for the first quarter of 2014 was 33.2%, up sharply from 21.0% in the first quarter of 2013 due to product mix and better factory cost management. Operating expenses for the first quarter of 2014 were $79.0 million, up slightly sequentially.
Net loss for the first quarter of 2014 was $19.1 million or $(0.12) per diluted share, compared with a net loss of $27.9 million or $(0.17) per share in Q1 of 2013.
Non-GAAP
Gross margin for the first quarter was 35.3%, up sharply from 22.8% in the first quarter of 2013. Operating expenses for the quarter were $70.9 million, down slightly sequentially.
Net loss for the first quarter of 2014 was $9.4 million, or $(0.06) per diluted share, compared with a net loss of $27.2 million or $(0.17) per share in Q1 of 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 is fully booked to our second quarter 2014 revenue expectation of $215 million to $225 million. Non-GAAP gross margin is expected to be between 37% and 38%. Second quarter non-GAAP net income is expected to be between $0.06 and $0.08 on an estimated 180 million diluted shares. Both revenue and earnings guidance are well above current analyst estimates and indicate robust sequential improvement.
Additional Information Regarding March 29, 2014 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 | ||||||||||||||||||||||||||
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Three Months Ended |
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Change |
Change |
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vs. Q4 |
vs. Q1 |
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Q1 2014 |
Q4 2013 |
2013 |
Q1 2013 |
2013 |
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| Revenue | $ | 177.6 | $ | 267.7 | (34 | )% | $ | 184.2 | (4 | )% | ||||||||||||||||
| Gross Profit | $ | 59.1 | $ | 70.0 | (16 | )% | $ | 38.8 | 52 | % | ||||||||||||||||
| Gross Margin % | 33.2 | % | 26.1 | % | 7.1 | % | 21.0 | % | 12.2 | % | ||||||||||||||||
| Operating Loss | $ | (20.0 | ) | $ | (8.5 | ) | (135 | )% | $ | (34.5 | ) | 42 | % | |||||||||||||
| Net Loss | $ | (19.1 | ) | $ | (8.7 | ) | (120 | )% | $ | (27.9 | ) | 32 | % | |||||||||||||
| Loss per share | $ | (0.12 | ) | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.17 | ) | $ | 0.05 | ||||||||||||
| NON-GAAP RESULTS A | ||||||||||||||||||||||||||
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Three Months Ended |
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Change |
Change |
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vs. Q4 |
vs. Q1 |
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Q1 2014 |
Q4 2013 |
2013 |
Q1 2013 |
2013 |
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| Revenue | $ | 177.6 | $ | 267.7 | (34 | )% | $ | 184.2 | (4 | )% | ||||||||||||||||
| Gross Profit | $ | 62.6 | $ | 99.6 | (37 | )% | $ | 42.0 | 49 | % | ||||||||||||||||
| Gross Margin % | 35.3 | % | 37.2 | % | (1.9 | )% | 22.8 | % | 12.5 | % | ||||||||||||||||
| Op (Loss) Income | $ | (8.3 | ) | $ | 28.4 | (129 | )% | $ | (26.0 | ) | 68 | % | ||||||||||||||
| Net (Loss) Income | $ | (9.4 | ) | $ | 26.4 | (136 | )% | $ | (27.2 | ) | 65 | % | ||||||||||||||
| (Loss) Inc per share | $ | (0.06 | ) | $ | 0.16 | $ | (0.22 | ) | $ | (0.17 | ) | $ | 0.11 | |||||||||||||
| A | Excludes stock based compensation charges, non-cash tax benefit, certain entries associated with mergers and acquisitions and other specifically identified non-routine transactions. | |||||||||||||||||||||||||
