HILLSBORO, Ore.—(BUSINESS WIRE)—April 25, 2007— TriQuint Semiconductor, Inc. (Nasdaq: TQNT), a supplier of high performance products for communications applications, today reported its financial results for the quarter ended March 31, 2007, which included the following highlights:
First Quarter 2007
-- Revenues totaled $110.6 million and increased nearly 26% over
the first quarter of 2006
-- Gross margin improved 0.8% over the first quarter of 2006
-- Gross margin improved 1.7% over the fourth quarter of 2006
-- Handset yields improved.
-- Earnings for the first quarter were $6.4 million or $0.05 per
-- Equity compensation expense was $1.7 million or $0.01 per
-- Excluding equity compensation expense earnings were $8.1M or
$0.06 per diluted share
-- TriQuint retired $218.8 million of convertible subordinated
notes upon maturity
-- TriQuint's cash and cash equivalents balance remained strong
at $150.0 million
-- Cash flow from operations was $6.4 million
-- Record number of new handset design wins
-- Began shipments of power amplifier modules to a new top five
-- Booked $7.4 million in R&D supported by military and other
contracts, the largest part coming from year three of our
DARPA GaN development project
Commenting on the results for the quarter ended March 31, 2007,
Ralph Quinsey, President and Chief Executive Officer, stated, "the
first quarter of 2007 was a solid quarter for TriQuint with better
than seasonal revenue performance, improved gross margin percentage
and earnings above the midpoint of our guidance. Revenues grew 26% and
earnings grew 185% as compared to the first quarter of 2006. We
recorded strong design win activity for handset products in the
quarter, increased revenue in the space market and continued strong
quote activity in the military market."
Summary Financial Results and Highlights for the Quarter Ended
March 31, 2007:
Revenue for the first quarter of 2007 was $110.6 million as
compared to revenue for the first quarter of 2006 of $87.9 million and
$114.3 for the fourth quarter of 2006.
Net income for the first quarter of 2007 was $6.4 million or $0.05
per diluted share. Net income for the first quarter of 2006 was $2.2
million or $0.02 per diluted share and net income for the fourth
quarter of 2006 was $5.8 million or $0.04 per diluted share.
Excluding equity compensation expense of $1.7 million, net income
for the first quarter of 2007 was $8.1 million or $0.06 per diluted
share. Excluding equity compensation expense of $2.3 million, net
income for the first quarter of 2006 was $4.5 million or $0.04 per
diluted share. Excluding equity compensation expense of $2.0 million,
net income for the fourth quarter of 2006 was $7.8 million or $0.05
per diluted share.
Gross margin for the first quarter of 2007 was 31.1%, compared to
29.4% for the fourth quarter of 2006 and 30.3% for the first quarter
of 2006. Our margins for the first quarter were affected by a
favorable product mix and improved yields on high volume handset
Excluding equity compensation expense, our gross margin for the
first quarter of 2007 was 31.6%. Gross margin excluding equity
compensation expense was 31.2% in the first quarter of 2006 and 29.9%
in the fourth quarter of 2006.
Operating expenses for the first quarter of 2007 were $29.5
million, or 26.7% of revenue, as compared to $25.4 million, or 28.9%
of revenue, in the first quarter of 2006 and $27.0 million, or 23.6%
of revenue, for the fourth quarter of 2006.
Excluding equity compensation expense, operating expenses for the
first quarter of 2007 were $28.3 million or 25.6% of revenue.
Operating expenses excluding equity compensation expense were $23.9
million or 27.2% of revenue in the first quarter of 2006 and $25.6
million, or 22.3% of revenues in the fourth quarter of 2006.
Cash, cash equivalents and short-term marketable securities were
$150.0 million as of March 31, 2007, representing a decrease of $223.2
million or 59.8% as compared to December 31, 2006. During the first
quarter of 2007, TriQuint retired $218.8 million of its convertible
subordinated notes upon maturity. Additionally, TriQuint acquired
approximately $13.2 million of capital assets during the quarter.
Depreciation and amortization expense for the first quarter of 2007
was approximately $7.7 million. Cash flow from operations was
approximately $6.4 million during the quarter.
Outlook for the Second Quarter of 2007:
Revenue for the second quarter of 2007 is expected to be flat to
slightly up from the first quarter of 2007. Equity compensation
expense is expected to be approximately $2.0 million. Earnings are
expected to be relatively flat, for the second quarter.
TriQuint will host a conference call this afternoon at 2:00 p.m.
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 (719) 457-0820, passcode 8671542.
Non-GAAP Financial Measures:
This press release provides financial measures for net income,
diluted earnings per share, gross margin and operating expenses that
exclude equity compensation expense and the related tax effects, and
are therefore not calculated in accordance with accounting principles
generally accepted in the United States ("GAAP"). Management believes
that these non-GAAP financial measures provide meaningful supplemental
information regarding our performance that enhances management's and
investors' ability to evaluate TriQuint's operating results prior to
the adoption of Statement of Financial Accounting Standards No.
123(R), Share-Based Payments.
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
revenues, growth rates, gross margins, operating expenses, operating
results, and earnings per share for the second quarter of 2007 and
full year 2007 are statements that involve risks and uncertainties.
Statements regarding continued market acceptance of our transmit
modules and other products are also forward looking statements that
contain risks and uncertainties. TriQuint cannot provide any assurance
that future results will meet expectations. Results could materially
differ based on various factors, including TriQuint's performance;
demand for its products, ability to develop new products; improve
yields; maintain product pricing; reduce costs; ability to win
customers; market conditions; and the completion of TriQuint's
independent auditor's review of the first quarter of 2007. 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 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
TriQuint Semiconductor, Inc. (Nasdaq:
TQNT) is a leading supplier
of high performance modules, components and foundry services for the
world's leading communications companies. The Company's focus is on
the specialized expertise, materials and know-how of radio frequency
(RF) and other high intermediate frequency applications. The Company
enjoys diversity in its markets, applications, products, technology
and customer base. Markets include wireless handsets, broadband
communications, wireless base stations and military systems. TriQuint
provides customers with standard and custom products as well as
foundry services. The Company's products are designed on various wafer
substrates including compound semiconductor materials such as gallium
arsenide (GaAs) and piezoelectric crystals such as lithium tantalate
(LiTaO3). The Company also uses a variety of process technologies
using GaAs substrates including hetrojunction bipolar transistor (HBT)
and pseudomophic high electron mobility transistor (pHEMT). Using
various other substrates the Company also manufacture surface acoustic
wave (SAW) and bulk acoustic wave (BAW) products. TriQuint customers
include major communications companies worldwide. TriQuint has
manufacturing facilities in Oregon, Texas, and Florida, as well as an
assembly plant in Costa Rica, plus sales/application support offices
in Asia and design centers in New England, North Carolina and Germany.