Triquint Semiconductor Inc fka TQNT

[eastunder]

TriQuint Announces Third Quarter 2010 Results

Wednesday, October 27, 2010 16:05ET

HILLSBORO, Ore.--(BUSINESS WIRE)-- TriQuint Semiconductor, Inc. (NASDAQ:TQNT), a leading RF front-end product and foundry services provider, announces its financial results for the quarter ended October 2, 2010, including the following highlights:

-- Revenue was $237.0 million, up 14% from Q2'10 and 37% from Q3'09
-- Mobile Devices quarterly revenue grew 28% from Q2'10 and 37% from Q3'09
-- Net Income was $110.9 million or $0.68 per diluted share which includes
a tax benefit of $72.1 million
-- Non-GAAP Net Income was $44.2 million or $0.27 per diluted share
-- Named to Forbes.com "Most Trustworthy Companies" list
-- Released TQP15 Foundry process for mmWave applications: VSAT, satellite
and point to point radios
-- Announced integration strategy for Base Station products - four levels
of integration
-- Launched heat spreading capability for high power die sales - Die on Tab
-- Awarded a $17.5 million Title III gallium nitride manufacturing
development contract by the US Air Force Research Laboratory


Commenting on the results for the quarter ended October 2, 2010, Ralph Quinsey, President and Chief Executive Officer, stated, "I am very pleased with our results this quarter and am excited about our long term opportunities. We've turned in record third quarter revenue and, not including favorable non cash tax effects, generated more non-GAAP net income in Q3 than we did in either of the preceding 2 years. Our strategy of RF integration, multi-market innovation, and growth for scale has been effective. Looking forward I expect that the RF market will remain healthy and TriQuint will benefit from a strong product roadmap built on industry leading technology platforms."

Summary Financial Results for the Quarter Ended October 2, 2010:

Revenue for the third quarter of 2010 was $237.0 million, up 37% from the third quarter of 2009 and 14% sequentially. Networks continued to enjoy a strong rebound from the lows of 2009, with revenue growing 61% compared to the third quarter of 2009. Mobile Devices showed robust growth, with revenue increasing 28% sequentially and 37% compared to the third quarter of 2009.

Net income for the third quarter of 2010 was $110.9 million, or $0.68 per diluted share. Non-GAAP net income for the third quarter was $44.2 million, or $0.27 per diluted share. The company recognized a tax benefit of $72.1 million during the third quarter primarily due to the reversal of a valuation allowance previously placed on our net deferred tax assets which are mostly net operating loss carryforwards (NOLs). This reversal is a non-cash event that indicates strengthened conviction in the company's ability to generate sufficient profits to fully utilize these NOLs. 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.

Gross margin for the third quarter of 2010 was 41.3%, up from 33.8% in the third quarter of 2009. On a non-GAAP basis, gross margin was 42.3%, up from 35.0% in the third quarter of 2009.

Operating expenses for the third quarter of 2010 were $59.1 million, or 24.9% of revenue, up from $47.7 million in the third quarter of 2009. Non-GAAP operating expenses for the quarter were $56.0 million or 23.6% of revenue.

Outlook:

The company believes fourth quarter revenue will be between $245 million and $255 million. At the midpoint, this implies revenue growth in 2010 of 33% over the prior year. Looking to 2011, the company believes continued robust growth in demand should lead to revenue growth of about 20%. For the fourth quarter of 2010, the company expects that strong growth in the mobile devices market will lead to a non-GAAP gross margin between 41% and 42%. Non-GAAP operating expenses are expected to grow to about $59 million, or 24% of revenue. Fourth quarter net income is expected to be between $0.26 and $0.28 per share on a non-GAAP basis. The company is 91% booked to the midpoint of revenue guidance.

Additional Information Regarding October 2, 2010 Results:

GAAP and non-GAAP financial measures are presented in the tables below (in millions, except for percentage and per share information). Non-GAAP financial measures are reconciled to the corresponding GAAP financial measures in the financial statement portion of this press release.

Continued at: http://www.knobias.com/story.htm?eid=3.1.7284f13e2331eee3c87d553ab2080de61c84dd983a2c25029c9afd2b9a9c6eac