TriQuint Semiconductor, Inc. Announces Results for the Quarter and Year Ended December 31, 2005

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 yield issues.

-- 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 products.

-- 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.

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