EX-99.1 2 a05-18710_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

P R E S S  R E L E A S E

Press Release #05021

 

FOR IMMEDIATE RELEASE...BUSINESS AND FINANCIAL EDITORS

 

Stephanie Welty

 

Heidi A. Flannery
VP of Finance & Administration, CFO
 
Investor Relations Counsel

TriQuint Semiconductor, Inc.

 

Fi. Comm

Tel: (503) 615-9224

 

Tel: (541) 322-0230

Fax: (503) 615-8904

 

Fax: (541) 322-0231
Email: swelty@tqs.com
 
Email: heidi.flannery@ficomm.com

 

TRIQUINT SEMICONDUCTOR, INC. ANNOUNCES REVENUE AND EARNINGS GROWTH

FOR THE QUARTER ENDED SEPTEMBER 30, 2005

 

Hillsboro, Oregon – October 20, 2005 - TriQuint Semiconductor, Inc. (Nasdaq: TQNT) today reported its financial results for the quarter ended September 30, 2005.

 

Summary Financial Results and Highlights for the Quarter Ended September 30, 2005:

 

•                  Revenues from continuing operations for the third quarter ended September 30, 2005, totaled $75.2 million, an increase of 11% from the previous quarter. The third quarter revenues were consistent with the financial guidance provided on July 21, 2005, and reflected increases in our handset and military markets. As compared to the prior year, third quarter revenue was down 8% as a result of reduced sales of IF filters for handsets and lower average selling prices for some of our products.

 

•                  Gross margin improved in the third quarter of 2005 to 31.4%, an increase of 3.2 percentage points from the second quarter of 2005 and 1.1 percentage points from the third quarter of 2004. The increased gross margin was primarily due to improved capacity utilization in the high-volume factories.

 

•                  Operating expenses for the third quarter of 2005 decreased 7% from the second quarter of 2005, due primarily to a charge for a reduction in force in the second quarter. The expenses in both quarters included a charge of $0.4 million related to the TFR acquisition, which closed in January of 2005.

 

•                  Net income from continuing operations for the quarter ended September 30, 2005 was $2.1 million, a strong increase from the $1.5 million loss from continuing operations reported in the quarter ended June 30, 2005.

 

- more -

 


 

•                  We posted net income of $2.6 million, or $0.02 per diluted share, for the third quarter ended September 30, 2005, $0.01 above the July 21st guidance. The penny increase was primarily due to the sale of intellectual property received. This intellectual property was held at zero book value and the transaction resulted in a gain of approximately $1.0 million, or $0.01 per diluted share. In the previous quarter ended June 30, 2005, we reported net income of $6.2 million, which included a gain from discontinued operations of $7.7 million, which amount was net of income tax of $4.4 million.

 

•                  Cash, cash equivalents and short and long term marketable securities increased to $407.8 million as of September 30, 2005, compared to $401.2 million as of June 30, 2005. During the quarter we received approximately $9.0 million from the sale of our Breinigsville, Pennsylvania, facilities.

 

•                  We continued our strong bookings during the quarter and the book-to-bill ratio for the quarter ended September 30, 2005, was 1.07 to 1.00 overall and 1.15 to 1.00 excluding military.

 

Commenting on the results for the quarter ended September 30, 2005, Ralph Quinsey, President and CEO, stated, “TriQuint Semiconductor benefited from increased shipments to the CDMA handset market and the military market as both returned to more normal demand levels in the third quarter. The outlook for Q4 2005 and beyond is exciting as we booked record orders of over $13 million for our power amplifier products, largely in GSM/GPRS applications.”

 

Outlook for the Fourth Quarter of 2005:

 

The Company has successfully focused on a return to profitability in 2005, continued to generate positive cash flow and is executing on a strategy to penetrate high volume markets.

 

Revenues for the fourth quarter of 2005 are expected to increase 10% to 13% from the third quarter of 2005 due to increased sales of products for wireless phones. Gross margin is expected to improve due to increased capacity utilization. We are projecting earnings per share for the fourth quarter of 2005 to range from $0.01 to $0.03 per diluted share. A summary table of our financial guidance is available on the “Investors” section of our web site.

 

Conference Call:

 

TriQuint will host a conference call this afternoon at 2:00 PM PDT to discuss the results for the quarter as well as our future expectations for the Company. The call can be heard via webcast accessed through the “Investors” section of TriQuint’s web site: www.triquint.com, or through www.Vcall.com. A replay will be available for 7 days by dialing (303) 590-3000, passcode 11040541#.

 

About TriQuint:

 

TriQuint Semiconductor, Inc. (Nasdaq: TQNT) is a leading supplier of high performance products for communications applications. The company focuses on the specialized expertise, materials and know-how for wireless applications. The company enjoys diversity in its markets, applications, products, technology and customer base. Markets include wireless phones, base stations, broadband wireless access and military. TriQuint provides customers with standard and custom product solutions as well as foundry services. Products are based on advanced process technologies including gallium arsenide, surface acoustic wave (SAW), and bulk acoustic wave (BAW). TriQuint customers include major communications companies worldwide. TriQuint has manufacturing facilities in Oregon, Texas, and Florida, as well as a production assembly plant in Costa Rica, plus sales/application support offices in

 


 

China, Korea, Japan and Taiwan and design centers in New England and Germany. All manufacturing and production facilities are registered to the ISO9001:2000 international quality standard.

 

TriQuint is headquartered at 2300 NE Brookwood Parkway, Hillsboro, OR 97124 and can be reached at 503/615-9000 (fax 503/615-8900). Visit the TriQuint web site at www.triquint.com.

 

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. Readers are cautioned that forward-looking statements such as statements of TriQuint’s projected demand for its products, particularly power amplifier products, expected revenues for the fourth quarter of 2005, gross margins, operating results, capacity utilization, and per share forecasts for the fourth quarter of 2005, and other comments involve risks and uncertainties. The cautionary statements made in this release should be read as being applicable to all related statements wherever they appear. Statements containing such words as “anticipates,” “believes,” “estimates,”  “expects,” “hopeful,” “intends,” “plans,”  “projects,” or similar terms are considered to contain uncertainty and are forward-looking statements. A number of factors affect TriQuint’s operating results and could cause its actual future results to differ materially from any results indicated in this press release or in any other forward-looking statements made by, or on behalf of TriQuint, including those related to TriQuint’s projections for the fourth quarter of 2005. TriQuint cannot provide any assurance that future results will meet expectations. Results could differ materially based on various factors, including TriQuint’s performance, demand for its products, internal operating results, cost of goods and services, and market conditions. In addition, historical information should not be considered an indicator of future performance. 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 also be accessed at the SEC web site, www.sec.gov.

 

A reader of this release should understand that it is not possible to predict or identify all risk factors and should not consider the list to be a complete statement of all potential risks and uncertainties. TriQuint does not assume the obligation to update any forward-looking statements.

 

- end -

 


 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)

 

 

 

Quarter Ended*

 

Nine Months Ended*

 

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

 

 

2005

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

75,235

 

$

67,927

 

$

81,569

 

$

210,127

 

$

245,931

 

Cost of goods sold

 

51,646

 

48,780

 

56,877

 

150,078

 

166,348

 

Gross profit

 

23,589

 

19,147

 

24,692

 

60,049

 

79,583

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research, development and engineering

 

11,570

 

12,312

 

11,285

 

36,335

 

36,043

 

Selling, general and administrative

 

11,234

 

11,902

 

9,760

 

35,346

 

30,647

 

Reduction in workforce

 

—

 

362

 

—

 

362

 

428

 

Impairment of long-lived assets

 

—

 

—

 

—

 

31

 

389

 

Loss (gain) on disposal of equipment

 

22

 

(16

)

1

 

(200

)

(84

)

Acquisition related charges

 

414

 

413

 

—

 

1,241

 

—

 

Total operating expenses

 

23,240

 

24,973

 

21,046

 

73,115

 

67,423

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

349

 

(5,826

)

3,646

 

(13,066

)

12,160

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

3,052

 

2,649

 

1,825

 

8,150

 

5,141

 

Interest expense

 

(2,441

)

(2,470

)

(2,505

)

(7,406

)

(8,235

)

Foreign currency gain (loss)

 

32

 

(69

)

2,372

 

35

 

2,063

 

Impairment charge - investments in other companies

 

(55

)

(100

)

(404

)

(155

)

(404

)

Gain on retirement of debt

 

—

 

114

 

—

 

114

 

539

 

Gain on sale of intellectual property acquired

 

954

 

—

 

—

 

954

 

—

 

Other, net

 

72

 

2

 

19

 

114

 

151

 

Other income (expense), net

 

1,614

 

126

 

1,307

 

1,806

 

(745

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, before income tax

 

1,963

 

(5,700

)

4,953

 

(11,260

)

11,415

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

(90

)

(4,175

)

172

 

(4,173

)

19

 

Income (loss) from continuing operations

 

2,053

 

(1,525

)

4,781

 

(7,087

)

11,396

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations, net of income tax

 

522

 

7,734

 

(8,868

)

8,126

 

(15,195

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

2,575

 

$

6,209

 

$

(4,087

)

$

1,039

 

$

(3,799

)

 

 

 

 

 

 

 

 

 

 

 

 

Basic per share net income (loss):

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

0.02

 

$

(0.01

)

$

0.03

 

$

(0.05

)

$

0.08

 

Income (loss) from discontinued operations

 

0.00

 

0.05

 

(0.06

)

0.06

 

(0.11

)

Basic per share net income (loss)

 

$

0.02

 

$

0.04

 

$

(0.03

)

$

0.01

 

$

(0.03

)

 

 

 

 

 

 

 

 

 

 

 

 

Diluted per share net income (loss):

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

0.02

 

$

(0.01

)

$

0.03

 

$

(0.05

)

$

0.08

 

Income (loss) from discontinued operations

 

0.00

 

0.05

 

(0.06

)

0.06

 

(0.11

)

Diluted per share net income (loss)

 

$

0.02

 

$

0.04

 

$

(0.03

)

$

0.01

 

$

(0.03

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

139,917

 

139,194

 

137,432

 

139,297

 

136,590

 

Diluted

 

141,210

 

139,194

 

138,845

 

139,297

 

140,784

 

 

* Certain amounts in the prior quarters statements of operations have been reclassified to conform to the current quarter presentation.

 


 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

 

 

 

September 30,

 

June 30,

 

December 31,

 

 

 

2005

 

2005

 

2004

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash, cash equivalents and investments

 

$

247,401

 

$

225,777

 

$

198,497

 

Accounts receivable, net

 

43,619

 

38,148

 

35,654

 

Inventories, net

 

45,845

 

42,751

 

49,619

 

Other current assets

 

12,108

 

12,006

 

10,345

 

Assets held for sale

 

—

 

8,377

 

33,890

 

Total current assets

 

348,973

 

327,059

 

328,005

 

 

 

 

 

 

 

 

 

Investments in marketable securities

 

160,407

 

175,387

 

189,555

 

Property, plant and equipment, net

 

189,481

 

190,493

 

199,518

 

Other, net

 

15,745

 

15,822

 

5,322

 

Total assets

 

$

714,606

 

$

708,761

 

$

722,400

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

43,000

 

$

39,461

 

$

34,450

 

Deferred tax liability

 

7,727

 

7,727

 

7,607

 

Capital leases, current portion

 

69

 

138

 

275

 

Liabilities held for sale

 

—

 

343

 

14,682

 

Total current liabilities

 

50,796

 

47,669

 

57,014

 

 

 

 

 

 

 

 

 

Convertible subordinated notes

 

218,755

 

218,755

 

223,755

 

Other long-term liabilities

 

845

 

728

 

244

 

Total liabilities

 

270,396

 

267,152

 

281,013

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

444,210

 

441,609

 

441,387

 

Total liabilities and stockholders’ equity

 

$

714,606

 

$

708,761

 

$

722,400

 

 


 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Quarter Ended*

 

Nine Months Ended*

 

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

 

 

2005

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

Cost of goods sold

 

68.6

%

71.8

%

69.7

%

71.4

%

67.6

%

Gross profit

 

31.4

%

28.2

%

30.3

%

28.6

%

32.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research, development and engineering

 

15.4

%

18.1

%

13.8

%

17.3

%

14.7

%

Selling, general and administrative

 

14.9

%

17.5

%

12.0

%

16.8

%

12.5

%

Reduction in workforce

 

—

 

0.6

%

—

 

0.2

%

0.2

%

Impairment of long-lived assets

 

—

 

—

 

—

 

0.0

%

0.2

%

Loss (gain) on disposal of equipment

 

0.0

%

-0.0

%

0.0

%

-0.1

%

-0.1

%

Acquisition related charges

 

0.6

%

0.6

%

—

 

0.6

%

—

 

Total operating expenses

 

30.9

%

36.8

%

25.8

%

34.8

%

27.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

0.5

%

-8.6

%

4.5

%

-6.2

%

4.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

4.1

%

3.9

%

2.2

%

3.9

%

2.1

%

Interest expense

 

-3.3

%

-3.6

%

-3.1

%

-3.5

%

-3.3

%

Foreign currency gain (loss)

 

0.0

%

-0.1

%

3.0

%

0.0

%

0.8

%

Impairment charge - investments in other companies

 

-0.1

%

-0.2

%

-0.5

%

-0.1

%

-0.2

%

Gain on retirement of debt

 

—

 

0.2

%

—

 

0.0

%

0.2

%

Gain on sale of intellectual property acquired

 

1.3

%

—

 

—

 

0.5

%

—

 

Other, net

 

0.1

%

0.0

%

0.0

%

0.0

%

0.1

%

Other income (expense), net

 

2.1

%

0.2

%

1.6

%

0.8

%

-0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, before income tax

 

2.6

%

-8.4

%

6.1

%

-5.4

%

4.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

-0.1

%

-6.1

%

0.2

%

-2.0

%

0.0

%

Income (loss) from continuing operations

 

2.7

%

-2.3

%

5.9

%

-3.4

%

4.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations, net of income tax

 

0.7

%

11.4

%

-10.9

%

3.9

%

-6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

3.4

%

9.1

%

-5.0

%

0.5

%

-1.5

%

 

* Certain amounts in the prior quarters statements of operations have been reclassified to conform to the current quarter presentation.