Hillsboro, Ore. – TriQuint Semiconductor, Inc. (NASDAQ: TQNT), a leading RF solutions supplier and technology innovator, announces its financial results for the quarter ended June 28, 2014, including the following highlights:
- Revenue grew 30% sequentially to $230.8 million
- GAAP gross margin was 40.2% and net income was $0.03 per share
- Non-GAAP gross margin was up 640 basis points sequentially to 41.7%
- Non-GAAP net income was well above guidance at $0.13 per share
- Sold premium filters to over 50 unique customers with discrete filter revenue on track to more than double in 2014
- 5 GHz WLAN front-end modules winning chipset reference design
- Completed GaN performance, cost and capacity goals as part of the Defense Production Act Title III program
- Expected merger with RFMD on track for second half of 2014
Commenting on the results, Ralph Quinsey, President and Chief Executive Officer, stated, "Revenue and earnings in the second quarter exceeded the high end of our previous guidance and our full year outlook remains strong. We continue to see robust demand in our infrastructure and mobile markets as worldwide demand for 4G LTE services ramp up with very strong demand for LTE base station products and premium filters for smartphones. We expect to exceed our goal of 500 basis points of gross margin improvement year over year and are now targeting 2014 full year non-GAAP gross margins to be greater than 40%. Additionally, we expect full year non-GAAP EPS to be up more than 6 times our 2013 results."
Summary Financial Results for the Three Months Ended June 28, 2014:
Revenue for the second quarter of 2014 was $230.8 million, up 21% from the second quarter of 2013 and 30% sequentially.
Cash and investments increased by $60.0 million this quarter to $223.5 million driven by operating results and cash proceeds from employee stock option exercises.
Gross margin for the second quarter of 2014 was 40.2%, up sharply from 29.8% in the second quarter of 2013 due to higher revenue, product mix and better factory execution. Operating expenses for the second quarter of 2014 were $85.3 million, up sequentially due to merger and integration related costs.
Net income for the second quarter of 2014 was $5.2 million or $0.03 per diluted share, compared with a net loss of $14.9 million or $(0.09) per share in the second quarter of 2013.
Gross margin for the second quarter was 41.7%, up sharply from 31.3% in the second quarter of 2013. Operating expenses for the quarter were $72.0 million, up slightly sequentially.
Net income for the second quarter of 2014 was $23.6 million, or $0.13 per diluted share, compared with a net loss of $10.9 million or $(0.07) per share in the second quarter of 2013.
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 second half revenue will be between $550 million and $600 million, up 11% at the midpoint from the prior year. While the split of this revenue between the third and fourth quarters depends on major program timing, the company currently expects third quarter revenue to range between $255 million and $265 million. Third quarter non-GAAP gross margin is expected to be between 43% and 45%, driven by strong execution, higher factory utilization and product mix. Non-GAAP operating expenses are expected to be approximately $70 million. Third quarter non-GAAP net income per diluted share is expected to be between $0.23 and $0.25. As of today, the company is 93% booked to the midpoint of Q3 revenue guidance.
Additional Information Regarding Results for the Three and Six Months Ended June 28, 2014:
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 table later in this press release.
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