TriQuint Announces Second Quarter Results

HILLSBORO, Ore.--(Business Wire)--
TriQuint Semiconductor, Inc. (NASDAQ:TQNT), a supplier of high
performance products for wireless communications, announces its
financial results for the quarter ended June 30, 2008, including the
following highlights:

-- Revenues of $127.0 million

-- Gross Margin of 34.6%; Gross Margin excluding WJ
Communications was 35.1%

-- Completed acquisition, WJ Communications joins TriQuint

-- Hired Intel veteran Steve Grant to lead worldwide operations

-- Recognized by Kyocera Wireless Corporation and ZTE Corporation
as RF supplier of the year

-- Won designs at 15 handset customers with new HADRON(TM) PA
Module

-- Shipped a high volume of TRITIUM(TM) III next generation 3G PA
Module

-- Launched innovative high voltage technology for base station
power

-- Announced Gallium Nitride (GaN) power amplifiers for defense,
aerospace and networks applications and released GaN Foundry
Supply to the open market

-- Released 1x2 PA for 802.11n applications to high volume
production

Commenting on the results for the quarter ended June 30, 2008,
Ralph Quinsey, President and Chief Executive Officer, stated,
"TriQuint is on track for achieving our product development and design
win targets for the year with each of our markets generating strong
order activity and a strong book to bill ratio of 1.29. Multi-band and
multi-mode applications are accelerating RF demand with two to four
times the content for TriQuint products in new applications. I expect
the second half of 2008 to be a solid growth period for TriQuint."

Summary Financial Results for the Quarter Ended June 30, 2008:

Revenues for the second quarter of 2008 were $127.0 million,
including $5.6 million from WJ Communications, and were up 12% from
the second quarter of 2007 and 14% sequentially. Strong growth in
wireless LAN and 3G handset products led the way in the quarter.

Net income for the second quarter of 2008 was $3.4 million, or
$0.02 per diluted share, down from $4.5 million or $0.03 per diluted
share in the prior quarter. Excluding all WJ Communications' results,
net income in the second quarter was $5.0 million or $0.03 per diluted
share. Please see below for TriQuint and WJ Communications results
that are reconciled to the consolidated results of the Company.
Non-GAAP net income for the second quarter was $9.6 million or $0.07
per diluted share. Non-GAAP financial measures exclude stock based
compensation charges and certain charges associated with the
acquisition of WJ Communications. Please see the attached supplemental
schedule for a reconciliation of GAAP to non-GAAP financial measures.

Gross margin for the second quarter of 2008 was 34.6%, flat with
the prior quarter. Excluding WJ Communications, gross margin was
35.1%. On a non-GAAP basis, gross margin was 37.0%, up from a non-GAAP
gross margin of 35.5% in the prior quarter. Improving product yields
and the higher margins of the WJ Communications products drove the
increase.

Operating expenses for the second quarter of 2008 were $41.8
million, or 33.0% of revenue, up from $35.8 million in the first
quarter. Excluding WJ Communications, operating expenses totaled $39.0
million. Non-GAAP operating expenses were $38.7 million or 30.5% of
revenue. In the latter half of this year, we expect non-GAAP operating
expenses to converge with our operating model of 25% of revenue.
However, inclusion of the higher margins and operating expenses
associated with the WJ Communications business may cause us to make
slight adjustments to our business model targets.

Cash, cash equivalents and short-term investments were $98.3
million as of June 30, 2008, a decrease of $121.0 million from March
31, 2008. Cash was consumed by the purchase of WJ Communications,
substantial capacity investments and growth in inventory in
preparation for rapid growth in the coming quarter. In addition,
approximately $17.6 million was invested in long term investments with
maturities greater than a year.

Outlook:

We estimate that third quarter 2008 revenue will be $155 million
to $170 million. Third quarter earnings are expected to range between
$0.06 and $0.08 per diluted share. We expect non-GAAP earnings to
range between $0.10 and $0.12 per diluted share. As of today, we are
approximately 95% booked for the third quarter.

Additional Information Regarding June 30, 2008 Results:

GAAP and non-GAAP financial measures are presented in the tables
below. Non-GAAP financial measures are reconciled to the corresponding
GAAP financial measures in the financial statement portion of this
press release.

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GAAP RESULTS
----------------------------------------------------------------------

Three Months Ended Six Months Ended
==================================== =====================
Change Change Change
Q2 Q1 vs. Q1 Q2 vs. Q2 Q2 Q2 vs. Q2
2008 2008 2008 2007 2007 2008 2007 2007
====== ====== ======= ====== ======= ====== ====== =======
Revenues $127.0 $111.1 14.2% $113.8 11.6% $238.1 $224.4 6.1%
------------------------------------ ---------------------
Gross
Margin 34.6% 34.6% 0.0% 26.5% 8.1% 34.6% 28.8% 5.8%
------------------------------------ ---------------------
Operating
Income $2.1 $2.7 -21.8% $(0.5) 528.2% $4.7 $4.4 7.2%
------------------------------------ ---------------------
Net Income $3.4 $4.5 -24.9% $1.4 149.0% $7.8 $7.7 1.3%
------------------------------------ ---------------------
Diluted EPS $0.02 $0.03 $(0.01) $0.01 $0.01 $0.05 $0.05 $(0.00)
------------------------------------------------ ---------------------

NON-GAAP RESULTS(A)
----------------------------------------------------------------------

Three Months Ended Six Months Ended
==================================== =====================
Change Change Change
Q2 Q1 vs. Q1 Q2 vs. Q2 Q2 Q2 vs. Q2
2008 2008 2008 2007 2007 2008 2007 2007
====== ====== ======= ====== ======= ====== ====== =======
Gross
Margin 37.0% 35.5% 1.5% 27.2% 9.8% 36.3% 29.4% 6.9%
------------------------------------ ---------------------
Operating
Income $8.3 $5.1 64.1% $1.6 412.9% $13.4 $8.3 61.7%
------------------------------------ ---------------------
Net Income $9.6 $6.9 39.3% $3.5 177.5% $16.5 $11.6 42.1%
------------------------------------ ---------------------
Diluted EPS $0.07 $0.05 $0.02 $0.02 $0.05 $0.11 $0.08 $0.03
------------------------------------------------ ---------------------

(A) Excludes stock based compensation charges and charges
associated with the acquisition of WJ Communications.
*T

Key financial results for the Company for the second quarter ended
June 30, 2008 are presented in the table below. TriQuint and WJ
Communications results are reconciled to the consolidated results for
the Company.

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TriQuint WJ Total
-----------------------
Revenues $121.4 $ 5.6 $127.0
-----------------------
Gross Profit $ 42.6 $ 1.3 $ 43.9
-----------------------
Operating Expenses $ 39.0 $ 2.8 $ 41.8
-----------------------
Net Income $ 5.0 $ (1.6) $ 3.4
----------------------------------------------
*T

Conference Call:

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. To access the conference call, investors
may dial (888) 813-6582 domestically or (706) 643-7082 internationally
approximately ten minutes prior to the invitation of the
teleconference using passcode 50642148. The call can also 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 (706) 645-9291, passcode 50642148.

Non-GAAP Financial Measures:

This press release provides financial measures for net income,
diluted earnings per share, gross margin, operating expenses and
operating income that exclude equity compensation expense and the
charges associated with the acquisition of WJ Communications, 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 excluding
the charges relating to the acquisition and noncash charges related 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. Such forward-looking statements include
statements regarding TriQuint's anticipated earnings and revenues,
expected non-GAAP operating expenses, the correlation between bookings
and revenues. Actual results may vary materially from those expressed
or implied in the statements herein or from historical results, due to
changes in economic, business, competitive, technological and/or
regulatory factors, including TriQuint's performance; demand for
TriQuint's products; ability to develop new products, improve yields,
maintain product pricing and reduce costs; ability to win customers
and continue to provide expected levels of inventory to them; and
market conditions. 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. Except as
required by law, we undertake no obligation to revise or publicly
release the results of any revision to these forward-looking
statements.

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
uncertainties.

FACTS ABOUT TRIQUINT

Founded in 1985, we "Connect the Digital World to the Global
Network"(TM) by supplying high-performance RF modules, components and
foundry services to the world's leading communications companies.
Specifically, TriQuint supplies products to four out of the top five
cellular handset manufacturers, and is a leading gallium arsenide
(GaAs) supplier to major defense and space contractors. TriQuint
creates standard and custom products using advanced processes that
include gallium arsenide, surface acoustic wave (SAW) and bulk
acoustic wave (BAW) technologies to serve diverse markets including
wireless handsets, base stations, broadband communications and
military. TriQuint is also lead researcher in a 3-year DARPA program
to develop advanced gallium nitride (GaN) amplifiers. TriQuint, as
named by Strategy Analytics in August 2007, is the number-three
worldwide leader in GaAs devices and the world's largest commercial
GaAs foundry. TriQuint has ISO9001 certified manufacturing facilities
in Oregon, Texas, and Florida and a production plant in Costa Rica;
design centers are located in North America and Germany. Visit
TriQuint at www.triquint.com/rf to register for our newsletters.

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TriQuint Semiconductor, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)

June 30, March 31, December 31,
2008 2008 2007
-------- --------- ------------
Assets
Current assets:
Cash, cash equivalents and
investments $ 98,320 $219,357 $ 203,501
Accounts receivable, net 80,380 62,817 73,185
Inventories 109,675 73,173 67,231
Other current assets 31,908 23,650 15,668
-------- --------- ------------
Total current assets 320,283 378,997 359,585

Property, plant and equipment, net 247,973 210,249 204,553
Other, net 99,591 21,928 22,323
-------- --------- ------------
Total assets $667,847 $611,174 $ 586,461
======== ========= ============

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued
expenses $ 91,346 $ 67,173 $ 46,602
Other accrued liabilities 15,989 6,196 9,875
-------- --------- ------------
Total current liabilities 107,335 73,369 56,477

Long term income tax liability 10,520 10,439 10,193
Other long-term liabilities 14,857 5,194 4,943
-------- --------- ------------
Total liabilities 132,712 89,002 71,613

Stockholders' equity 535,135 522,172 514,848
-------- --------- ------------
Total liabilities and
stockholders' equity $667,847 $611,174 $ 586,461
======== ========= ============
*T

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TriQuint Semiconductor, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)

Three Months Ended Six Months Ended
----------------------------- -------------------
June 30, March 31, June 30, June 30, June 30,
2008 2008 2007 2008 2007
--------- --------- --------- --------- ---------
Revenues 126,957 111,138 $113,771 $238,095 $224,374
Cost of goods sold 83,042 72,692 83,603 155,734 159,815
--------- --------- --------- --------- ---------
Gross profit 43,915 38,446 30,168 82,361 64,559

Operating expenses:
Research,
development and
engineering 21,664 19,943 15,040 41,607 29,368
Selling, general
and
administrative 18,758 16,281 15,623 35,039 30,689
In-process
research and
development 1,400 - - 1,400 -
(Gain) loss on
disposal of
equipment 16 (433) (10) (417) 86
--------- --------- --------- --------- ---------
Total operating
expenses 41,838 35,791 30,653 77,629 60,143
--------- --------- --------- --------- ---------
Operating income 2,077 2,655 (485) 4,732 4,416

Other income
(expense):
Interest income 1,115 2,001 1,928 3,116 5,365
Interest expense (10) (4) (5) (14) (1,636)
Foreign currency
gain 399 180 129 579 195
Recovery of
impairment - 105 - 105 -
Other, net 18 1 (2) 19 33
--------- --------- --------- --------- ---------
Other income,
net 1,522 2,283 2,050 3,805 3,957
--------- --------- --------- --------- ---------
Income before
income tax 3,599 4,938 1,565 8,537 8,373

Income tax expense 235 458 214 693 626
--------- --------- --------- --------- ---------
Net Income $ 3,364 $ 4,480 $ 1,351 $ 7,844 $ 7,747
========= ========= ========= ========= =========

Per Share Data
Basic per share
net income $ 0.02 $ 0.03 $ 0.01 $ 0.05 $ 0.06
Diluted per
share net
income $ 0.02 $ 0.03 $ 0.01 $ 0.05 $ 0.05

Weighted-average
shares outstanding:
Basic 143,712 142,973 139,666 143,332 139,150
Diluted 146,888 144,737 142,183 145,761 141,536
*T

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TriQuint Semiconductor, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended Six Months Ended
--------------------------- -----------------
June 30, March 31, June 30, June 30, June 30,
2008 2008 2007 2008 2007
-------- --------- -------- -------- --------

Revenues 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of goods sold 65.4% 65.4% 73.5% 65.4% 71.2%
-------- --------- -------- -------- --------
Gross profit 34.6% 34.6% 26.5% 34.6% 28.8%

Operating expenses:
Research, development
and engineering 17.1% 18.0% 13.2% 17.5% 13.1%
Selling, general and
administrative 14.8% 14.6% 13.7% 14.7% 13.7%
In-process research
and development 1.1% 0.0% 0.0% 0.6% 0.0%
(Gain) loss on
disposal of equipment 0.0% -0.4% 0.0% -0.2% 0.0%
-------- --------- -------- -------- --------
Total operating
expenses 33.0% 32.2% 26.9% 32.6% 26.8%
-------- --------- -------- -------- --------
Operating income 1.6% 2.4% -0.4% 2.0% 2.0%

Other income (expense):
Interest income 0.9% 1.8% 1.7% 1.3% 2.4%
Interest expense 0.0% 0.0% 0.0% 0.0% -0.7%
Foreign currency gain 0.3% 0.1% 0.1% 0.2% 0.1%
Recovery of impairment 0.0% 0.1% 0.0% 0.1% 0.0%
Other, net 0.0% 0.0% 0.0% 0.0% 0.0%
-------- --------- -------- -------- --------
Other income, net 1.2% 2.0% 1.8% 1.6% 1.8%
-------- --------- -------- -------- --------
Income before income
tax 2.8% 4.4% 1.4% 3.6% 3.8%

Income tax expense 0.2% 0.4% 0.2% 0.3% 0.3%
-------- --------- -------- -------- --------

Net Income 2.6% 4.0% 1.2% 3.3% 3.5%
======== ========= ======== ======== ========
*T

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TriQuint Semiconductor, Inc.

SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Unaudited)
(In thousands, except per share amounts)

Three Months Ended
-----------------------------------------------------
June 30, 2008 March 31, 2008 June 30, 2007
----------------- ----------------- -----------------
(% of (% of (% of
revenues) revenues) revenues)
GAAP GROSS
PROFIT $43,915 34.6% $38,446 34.6% $30,168 26.5%
Adjustment for
equity
compensation
charges 1,099 0.9% 986 0.9% 784 0.7%
Adjustment
for charges
associated
with the
purchase of
WJ
Communications
Amortization
of intangible
assets 272 0.2% - 0.0% - 0.0%
Increase in
value of
inventory 1,706 1.3% - 0.0% - 0.0%
----------------- ----------------- -----------------
NON-GAAP GROSS
PROFIT $46,992 37.0% $39,432 35.5% $30,952 27.2%

GAAP OPERATING
EXPENSES $41,838 33.0% $35,791 32.2% $30,653 26.9%
Adjustment for
equity
compensation
charges (1,677) -1.3% (1,415) -1.3% (1,319) -1.1%
Adjustment for
charges
associated
with the
purchase of WJ
Communications
Amortization
of intangible
assets (68) -0.1% - 0.0% - 0.0%
In-process
research and
development (1,400) -1.1% - 0.0% - 0.0%
----------------- ----------------- -----------------
NON-GAAP
OPERATING
EXPENSES $38,693 30.5% $34,376 30.9% $29,334 25.8%

GAAP OPERATING
INCOME $2,077 1.6% $2,655 2.4% $(485) -0.4%
Adjustment for
equity
compensation
charges 2,776 2.2% 2,401 2.2% 2,103 1.7%
Adjustment for
charges
associated
with the
purchase of WJ
Communications 3,446 2.7% - 0.0% - 0.0%
----------------- ----------------- -----------------
NON-GAAP
OPERATING
INCOME $8,299 6.5% $5,056 4.6% $1,618 1.4%

GAAP NET INCOME $3,364 2.6% $4,480 4.0% $1,351 1.2%
Adjustment for
equity
compensation
charges 2,776 2.2% 2,401 2.2% 2,103 1.7%
Adjustment for
charges
associated
with the
purchase of WJ
Communications 3,446 2.7% - 0.0% - 0.0%
----------------- ----------------- -----------------
NON-GAAP NET
INCOME $9,586 7.5% $6,881 6.2% $3,454 3.0%

GAAP DILUTED
EARNINGS PER
SHARE $0.02 $0.03 $0.01
Adjustment for
equity
compensation
charges 0.02 0.02 0.01
Adjustment for
charges
associated
with the
purchase of WJ
Communications 0.03 - -
------- ------- -------
NON-GAAP DILUTED
EARNINGS PER
SHARE $0.07 $0.05 $0.02

GAAP COMMON
SHARES ASSUMING
DILUTION 146,888 144,737 142,183
Adjustment for
equity
compensation
charges 530 253 788
------- ------- -------
COMMON SHARES
ASSUMING
DILUTION
EXCLUDING
EQUITY
COMPENSATION 147,418 144,990 142,971

Six Months Ended
-----------------------------------
June 30, 2008 June 30, 2007
----------------- -----------------
(% of (% of
revenues) revenues)
GAAP GROSS
PROFIT $82,361 34.6% $64,559 28.8%
Adjustment for
equity
compensation
charges 2,085 0.9% 1,359 0.6%
Adjustment
for charges
associated
with the
purchase of
WJ
Communications
Amortization
of intangible
assets 272 0.1% - 0.0%
Increase in
value of
inventory 1,706 0.7% - 0.0%
----------------- -----------------
NON-GAAP GROSS
PROFIT $86,424 36.3% $65,918 29.4%

GAAP OPERATING
EXPENSES $77,629 32.6% $60,143 26.8%
Adjustment for
equity
compensation
charges (3,092) -1.3% (2,482) -1.1%
Adjustment for
charges
associated
with the
purchase of WJ
Communications
Amortization
of intangible
assets (68) 0.0% - 0.0%
In-process
research and
development (1,400) -0.6% - 0.0%
----------------- -----------------
NON-GAAP
OPERATING
EXPENSES $73,069 30.7% $57,661 25.7%

GAAP OPERATING
INCOME $4,732 2.0% $4,416 2.0%
Adjustment for
equity
compensation
charges 5,177 2.2% 3,841 1.7%
Adjustment for
charges
associated
with the
purchase of WJ
Communications 3,446 1.4% - 0.0%
----------------- -----------------
NON-GAAP
OPERATING
INCOME $13,355 5.6% $8,257 3.7%

GAAP NET INCOME $7,844 3.3% $7,747 3.5%
Adjustment for
equity
compensation
charges 5,177 2.2% 3,841 1.7%
Adjustment for
charges
associated
with the
purchase of WJ
Communications 3,446 1.4% - 0.0%
----------------- -----------------
NON-GAAP NET
INCOME $16,467 6.9% $11,588 5.2%

GAAP DILUTED
EARNINGS PER
SHARE $0.05 $0.05
Adjustment for
equity
compensation
charges 0.04 0.03
Adjustment for
charges
associated
with the
purchase of WJ
Communications 0.02 -
------- -------
NON-GAAP DILUTED
EARNINGS PER
SHARE $0.11 $0.08

GAAP COMMON
SHARES ASSUMING
DILUTION 145,761 141,536
Adjustment for
equity
compensation
charges 281 748
------- -------
COMMON SHARES
ASSUMING
DILUTION
EXCLUDING
EQUITY
COMPENSATION 146,042 142,284
*T

TriQuint Semiconductor, Inc.
VP of Finance, CFO
Steven Buhaly, 503-615-9401
Fax: 503-615-8904
steve.buhaly@tqs.com
or
Fi. Comm
Investor Relations Counsel
Heidi A. Flannery, 541-322-0230
Fax: 541-322-0231
heidi.flannery@ficomm.com

Copyright Business Wire 2008