HILLSBORO, Ore. — (BUSINESS WIRE) — February 5, 2014 — TriQuint Semiconductor, Inc. (NASDAQ: TQNT), a leading RF solutions supplier and technology innovator, announces its financial results for the quarter and year ended December 31, 2013, including the following highlights:
- Revenue for the quarter was $267.7 million, up 7% from Q3 2013
- GAAP gross margin for Q4 2013 was 26.1%, GAAP loss per share was ($0.05)
- Non-GAAP gross margin as a percent of revenue grew 550 basis points over Q4 2012
- Achieved record Mobile Devices revenue in the 2nd half, up over 66% from the 1st half
- Grew premium discrete filter revenue 52% to over $90 million in 2013
- Key design wins for BAW filters at Samsung, Huawei, ZTE, Yulong and Sony
- Base Station revenue up 50% in 2013 supporting the TD-LTE build-out in China
- Announced new GaN solutions, Optical drivers and small cell Base Station amplifiers
- Released over 190 new products in 2013
- Authorized increase in share repurchase program from existing balance of $24 million to $75 million
Commenting on the company's financial results, Ralph Quinsey, President and Chief Executive Officer, stated, “TriQuint's revenue for Q4 was $267.7 million, and non-GAAP earnings per share was $0.16, both above the midpoint of our guidance and well above our results in Q4 of 2012. We expect lower demand from a major customer in Q1 due to short term inventory corrections but the underlying trends remain very positive. We anticipate revenue growth and significant year over year improvement in profitability during 2014. Excluding Q1 we expect non-GAAP gross margins to average 40% and non-GAAP earnings for 2014 to be 5 to 6 times our 2013 results on improved product mix and focused cost reductions.”
Summary Financial Results for the Quarter and Year Ended December 31, 2013:
Revenue for the fourth quarter of 2013 was $267.7 million, up 15% from the fourth quarter of 2012 and up 7% sequentially. Mobile Devices revenue grew 5%, Networks revenue grew 21% and Defense & Aerospace declined 2%, in each case, sequentially. Revenue for 2013 was $892.9 million, up 8% from 2012 due to an increase in Mobile Devices and Defense market revenue.
Gross margin for the fourth quarter of 2013 was 26.1%, down from 36.8% in the prior quarter. The decrease was primarily due to charges associated with the reduction in GaAs capacity, of which the majority of the costs were non-cash. Gross margin for the year ended December 31, 2013 was 28.9%, relatively consistent with 2012.
Operating expenses for the fourth quarter of 2013 were $78.5 million, or 29% of revenue, up from $73.4 million in the prior quarter. Operating expenses for 2013 were $298.4 million, up from $274.7 million in 2012. The increases in the fourth quarter and for 2013 were due to higher engineering expenses.
Net loss for the fourth quarter of 2013 was $8.7 million, or $(0.05) per diluted share. Net loss for 2013 was $38.0 million or $(0.24) per diluted share.
Gross margin for the fourth quarter of 2013 was 37.2%, down from 38.0% in the prior quarter. Gross margin for 2013 was 33.2%, up from 30.7% for 2012. Higher revenue drove the year-to-year improvement.
Operating expenses for the fourth quarter of 2013 were $71.1 million or 27% of revenue, up $2.5 million from the prior quarter. Operating expenses for 2013 were $277.3 million or 31% of revenue, up from $254.4 million in 2012. The increases in the fourth quarter and for 2013 were due to higher engineering expenses.
Net income for the fourth quarter of 2013 was $26.4 million, or $0.16 per diluted share. Net income for 2013 was $14.5 million, or $0.09 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.
The company believes first quarter 2014 revenue will be between $170
million and $180 million due to seasonality and a large customer's
inventory correction in Mobile Device products. First quarter 2014
non-GAAP net loss is expected to be between $0.11 and $0.13 per share.
The company is 94% booked to the midpoint of revenue guidance. Looking
at 2014 as a whole, we expect revenue growth in the mid single digits as
strong growth in premium filters is partially offset by significant
reductions in lower margin amplifiers and non-strategic foundry revenue.
Revenue seasonality should be roughly similar to 2013 with about 40% of
revenue coming in the first half of the year. Non-GAAP gross margin is
expected to grow about 500 basis points from 2013 levels due to these
product mix changes and cost reductions in operations. Operating
expenses are expected to decline modestly from 2013. We currently
believe non-GAAP earnings per share will meet or beat the current
analyst consensus of $0.49.