TriQuint reports large losses due to charges
Fourth quarter earnings on the basis of generally accepted accounting principles were a net loss of $149.6 million, equal to a loss per share of $1.13. This includes a number of charges and adjustments, including an impairment of $49 million to property, plant and equipment relating to excess capacity and facility space in TriQuint s Oregon operation. TriQuint also recorded a charge of $15.7 million relating to certain investments in non-public companies, which are continuing to struggle with the downturn in the technology sector. There was also a $43.1 million charge related to income tax, and a $39.9 million charge for certain intangible assets and goodwill associated with acquisitions.
With out the charges and adjustments, TriQuint would have reported a loss of $2 million, or 1 cent per share.
TriQuint s annual revenue for 2002 was $267.3 million, a drop of 20% compared with $335 million in fiscal 2001. The net loss based on GAAP was $158.6 million compared to a net loss of $26.2 million in fiscal 2001. Excluding charges and adjustments, the company reported a pro-forma profit of $2 million for fiscal 2002 compared to a pro-forma profit of $36 million in fiscal 2001.
Commenting on the results for the fourth quarter 2002, Ralph Quinsey, President and CEO, stated, "Although demand in some of our end markets remains sluggish, we are using this time to prudently invest in the future of TriQuint Semiconductor. We have many new members of the TriQuint family and they are clearly demonstrating that the new TriQuint is greater than the sum of the parts. I am confident we are well positioned for growth and prosperity when our markets recover."
Acquisition of Optoelectronics business from Agere Systems
On January 2, 2003, TriQuint completed the acquisition of a portion of the optoelectronics business from Agere Systems for $40 million in cash. The purchase included the products, technology and some facilities related to Agere s optoelectronics business, which includes active and passive components, amplifiers, transceivers, and transponders.
As part of the transaction, approximately 340 Agere employees have joined TriQuint including approximately 215 in Pennsylvania and approximately 125 in Matamoros, Mexico.
Through a transitional manufacturing agreement, Agere will supply components for TriQuint for a short period following the transaction closing to ensure seamless service to customers. The majority of these components will be manufactured in Agere s facility in Breinigsville, PA, which TriQuint will acquire following the transition period. TriQuint will also operate the back-end assembly and test operations at a leased facility in Matamoros, Mexico.
Outlook
TriQuint believes that its revenue in 2003 could grow by 8% to 12% (excluding the impact of the acquisition of the optoelectronics business from Agere), principally from expected growth from its wireless phone products.
For the quarter ended March 31, 2003, TriQuint forecasts revenue in the range of $60 million to $64 million in its primary markets, down significantly from Q4 2002 due to the normal seasonal softness in its primary markets and lower average selling prices of certain products.
The optoelectronics business purchased from Agere is expected to add approximately $50 million to $75 million in revenue for fiscal 2003 with a forecast of $7 million to $9 million for the quarter ended March 31, 2003. Therefore, on a consolidated basis, revenue is estimated to be between $68 million and $73 million for the quarter ending March 31, 2003, and between $340 million and $375 million for the fiscal year 2003.
On a consolidated basis, the company is estimating a loss per share of between $0.14 and $0.17 for the quarter ending March 31, 2003, and a loss per share of between $0.15 and $0.21 for the fiscal year 2003, largely as a result of integrating the optoelectronics business.
