HILLSBORO, Ore.—(BUSINESS WIRE)—Feb. 9, 2006— TriQuint Semiconductor, Inc. (Nasdaq: TQNT) today reported its financial results for the quarter and year ended December 31, 2005.
Summary Financial Results and Highlights for the Quarter Ended
December 31, 2005:
-- Revenues from continuing operations for the fourth quarter
ended December 31, 2005, totaled $84.7 million, a 26.3%
increase over the fourth quarter of 2004. The fourth quarter
revenues were in line with the financial guidance provided on
October 20, 2005. Revenue growth primarily came from increased
sales of GSM handset products. The fourth quarter revenues for
2005 increased 12.5% sequentially from the third quarter of
2005 also due to increased sales of GSM handset and products.
-- Gross margin declined in the fourth quarter of 2005 to 28.7%,
as compared to 31.4% in the third quarter of 2005. The
decrease in the gross margin was primarily due to yield loss
associated with new product ramps. As compared to the fourth
quarter of 2004, gross margin was slightly down, also due to
-- Operating expenses for the fourth quarter of 2005 decreased to
25.6% of revenue from 30.9% of revenue in the third quarter of
2005 and 32.8% of revenue in the fourth quarter of 2004. The
decrease in the current quarter was primarily due to a $0.3
million gain on the disposal of equipment and reductions in
engineering spending. The expenses in the third and fourth
quarters of 2005 include a charge of $0.4 million related to
the TFR acquisition, which closed in January of 2005.
-- For the fourth quarter ended December 31, 2005, TriQuint had
net income, including discontinued operations, of $2.9
million, or $0.02 per diluted share, in line with our guidance
provided on October 20th. In the fourth quarter of 2004, we
reported a net loss of $25.3 million, which included a loss of
$21.7 million from discontinued operations. In the third
quarter of 2005, we reported net income of $2.6 million, which
included a gain from discontinued operations of $0.5 million.
-- As compared to the fourth quarter of 2004, net income from
continuing operations for the fourth quarter of 2005 increased
by $6.5 million. The increase was primarily due to increased
operating income in 2005 combined with an impairment charge
taken in 2004 that negatively impacted net income. Net income
from continuing operations for the fourth quarter of 2005
increased $0.8 million from the third quarter of 2005 to $2.9
million. The increase was primarily due to improved operating
income in the fourth quarter resulting from increased revenue
and reduced operating expense, partially offset by a negative
tax impact in the fourth quarter of $0.6 million.
-- Cash, cash equivalents and short and long term marketable
securities decreased to $406.7 million as of December 31,
2005, compared to $407.8 million as of September 30, 2005. In
the fourth quarter of 2005 the Company reported a plan to
repurchase up to $25 million of the Company's common stock
beginning after this earnings release. Repurchases will be
made under a Rule 10b5-1 plan and the timing of purchases and
the exact number of shares to be purchased will depend on
market conditions. As of December 31, 2005, and September 30,
2005, our outstanding convertible notes were $218.8 million.
As of December 31, 2004, our balance of outstanding
convertible notes was $223.8 million.
-- Fourth quarter 2005 bookings were seasonally strong with a
book-to-bill ratio of 1.05 to 1.00. Excluding military, the
book-to-bill ratio for the quarter was 1.03 to 1.00.
Summary Financial Results and Highlights for the Year Ended
December 31, 2005:
-- For 2005, the Company reported revenues from continuing
operations of $294.8 million, a decrease of 5.8% from 2004
revenues of $313.0 million. The decline was primarily due to
decreases in CDMA revenues from handset and broadband
-- Net income, including discontinued operations, increased to
$4.0 million for 2005, resulting in a profit of $0.03 per
diluted share, compared to a net loss of $29.1 million, $0.21
per diluted share, in 2004. The net income in 2005 includes a
net gain from discontinued operations of $8.2 million, as
compared to a net loss of $36.9 million for the year ended
December 31, 2004.
-- Cash, cash equivalents, and short and long term marketable
securities, net of the convertible notes, increased by $23.7
million in 2005 to $188.0 million as of December 31, 2005, as
compared to $164.3 million as of December 31, 2004.
-- The Company completed the acquisition of TFR Technologies,
Inc., on January 5, 2005. This acquisition added bulk acoustic
wave (BAW) filtering technology to the Company's product
portfolio, critical to developing higher frequency filters for
next generation wireless communication products.
Commenting on the results for the quarter and year ended December
31, 2005, Ralph Quinsey, President and CEO, stated, "During the course
of 2005 we absorbed the anticipated negative impact of reduced handset
IF filter revenue and aggressive filter pricing pressure while
successfully executing our strategy to grow our overall module
revenue. Our continuing operations returned to profitability in the
second half and, including the benefit of the optoelectronics asset
sale, we significantly improved net income to $0.03 per diluted share
from a loss $0.21 per diluted share in 2004. We are now in a position
to build on the momentum we established in the second half of 2005."
Other Highlights in 2005:
-- Won a gallium nitride development contract from DARPA with
revenue potential in excess of $30 million.
-- Launched the world's first E/D mode pHEMT technology enabling
higher levels of GaAs integration.