[July 23, 2014] |
|
TriQuint Announces Second Quarter 2014 Results
HILLSBORO, Ore. --(Business Wire)--
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.
GAAP
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.
Non-GAAP
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.
Outlook:
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.
|
GAAP RESULTS
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
Q2 2014
|
|
Q1 2014
|
|
Change vs. Q1 2014
|
|
Q2 2013
|
|
Change vs. Q2 2013
|
|
Q2 2014
|
|
Q2 2013
|
|
Change vs. Q2 2013
|
Revenue
|
|
$
|
230.8
|
|
|
$
|
177.6
|
|
|
30
|
%
|
|
$
|
190.1
|
|
|
21
|
%
|
|
$
|
408.4
|
|
|
$
|
374.3
|
|
|
9
|
%
|
Gross Profit
|
|
$
|
92.7
|
|
|
$
|
59.1
|
|
|
57
|
%
|
|
$
|
56.7
|
|
|
63
|
%
|
|
$
|
151.8
|
|
|
$
|
95.5
|
|
|
59
|
%
|
Gross Margin %
|
|
40.2
|
%
|
|
33.2
|
%
|
|
7.0
|
%
|
|
29.8
|
%
|
|
10.4
|
%
|
|
37.2
|
%
|
|
25.5
|
%
|
|
11.7
|
%
|
Op Income (Loss)
|
|
$
|
7.4
|
|
|
$
|
(20.0
|
)
|
|
137
|
%
|
|
$
|
(16.4
|
)
|
|
145
|
%
|
|
$
|
(12.6
|
)
|
|
$
|
(50.9
|
)
|
|
75
|
%
|
Net Income (Loss)
|
|
$
|
5.2
|
|
|
$
|
(19.1
|
)
|
|
127
|
%
|
|
$
|
(14.9
|
)
|
|
135
|
%
|
|
$
|
(13.9
|
)
|
|
$
|
(42.8
|
)
|
|
68
|
%
|
Inc (Loss) per share
|
|
$
|
0.03
|
|
|
$
|
(0.12
|
)
|
|
$
|
0.15
|
|
|
$
|
(0.09
|
)
|
|
$
|
0.12
|
|
|
$
|
(0.08
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP RESULTS A
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
Q2 2014
|
|
Q1 2014
|
|
Change vs. Q1 2014
|
|
Q2 2013
|
|
Change vs. Q2 2013
|
|
Q2 2014
|
|
Q2 2013
|
|
Change vs. Q2 2013
|
Revenue
|
|
$
|
230.8
|
|
|
$
|
177.6
|
|
|
30
|
%
|
|
$
|
190.1
|
|
|
21
|
%
|
|
$
|
408.4
|
|
|
$
|
374.3
|
|
|
9
|
%
|
Gross Profit
|
|
$
|
96.2
|
|
|
$
|
62.6
|
|
|
54
|
%
|
|
$
|
59.5
|
|
|
62
|
%
|
|
$
|
158.8
|
|
|
$
|
101.5
|
|
|
56
|
%
|
Gross Margin %
|
|
41.7
|
%
|
|
35.3
|
%
|
|
6.4
|
%
|
|
31.3
|
%
|
|
10.4
|
%
|
|
38.9
|
%
|
|
27.1
|
%
|
|
11.8
|
%
|
Op Income (Loss)
|
|
$
|
24.3
|
|
|
$
|
(8.3
|
)
|
|
393
|
%
|
|
$
|
(10.1
|
)
|
|
341
|
%
|
|
$
|
15.9
|
|
|
$
|
(36.1
|
)
|
|
144
|
%
|
Net Income (Loss)
|
|
$
|
23.6
|
|
|
$
|
(9.4
|
)
|
|
351
|
%
|
|
$
|
(10.9
|
)
|
|
317
|
%
|
|
$
|
14.2
|
|
|
$
|
(38.2
|
)
|
|
137
|
%
|
Inc (Loss) per share
|
|
$
|
0.13
|
|
|
$
|
(0.06
|
)
|
|
$
|
0.19
|
|
|
$
|
(0.07
|
)
|
|
$
|
0.20
|
|
|
$
|
0.08
|
|
|
$
|
(0.24
|
)
|
|
$
|
0.32
|
|
A
|
|
Excludes stock based compensation charges, non-cash tax benefit,
certain entries associated with mergers and acquisitions and other
specifically identified non-routine transactions.
|
|
|
|
|
|
|
Conference Call:
TriQuint will host a conference call this afternoon at 1:30 p.m. PDT to
discuss the results for the quarter and our future expectations for the
company. To access the conference call, please dial (888) 813-6582
domestically, or (706) 643-7082 internationally, approximately ten
minutes prior to the beginning of the call, using passcode 59055508. The
call can also be heard via webcast accessed through the "Investors"
section of TriQuint's web site at: http://invest.triquint.com.
A replay of the conference call will be available until August 6, 2014.
Non-GAAP Financial Measures:
This press release provides financial measures for non-GAAP net income
(loss), diluted earnings (loss) per share, gross profit, gross margin,
operating expenses and operating income (loss) that exclude equity
compensation expense, non-cash tax expense (benefit), certain entries
associated with mergers and acquisitions and other specifically
identified non-routine items, and are therefore not calculated in
accordance with accounting principles generally accepted in the United
States ("GAAP"). The charges associated with mergers and acquisitions
reflect the amortization of intangible and tangible assets, transaction
costs and changes to the earnout liability estimates recorded in
connection with acquisition accounting and charged to the income
statement. The non-cash tax expense (benefit) excludes certain deferred
tax charges and benefits that do not currently result in a tax payment
or tax refund. Management believes that these non-GAAP financial
measures provide meaningful supplemental information that enhances
management's and investors' ability to evaluate TriQuint's operating
results.
These non-GAAP financial measures are not intended to be used in
isolation and should not be considered a substitute for any other
performance measure determined in accordance with GAAP. Investors and
potential investors are cautioned that there are material limitations
associated with the use of non-GAAP financial measures as an analytical
tool, including that other companies may calculate similar non-GAAP
financial measures differently than we do, limiting their usefulness as
a comparative tool. The company compensates for these limitations by
providing specific information regarding the GAAP amount excluded from
the non-GAAP financial measures. The company further compensates for the
limitations of our use of non-GAAP financial measures by presenting
comparable GAAP measures more prominently. Investors and potential
investors are encouraged to review the reconciliation of non-GAAP
financial measures contained within this press release with our GAAP net
income and net income per share.
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. These forward-looking statements include statements
regarding improved financial results in 2014, expectations regarding
discrete premium filter revenue for 2014, and anticipated full year
gross margins and earnings; expected timing and completion of TriQuint's
merger with RFMD; and statements under "Outlook" regarding anticipated
third and fourth quarter revenues, third quarter gross margin, operating
expenses and net income per diluted share. These forward-looking
statements are statements of management's opinion and are subject to
various assumptions, risks, uncertainties and changes in circumstances.
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. More detailed information about risk factors that may affect
actual results are set forth 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, TriQuint undertakes 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 risk
factors described in TriQuint's filings with the Securities and Exchange
Commission to be a complete statement of all potential risks and
uncertainties.
Facts About TriQuint
Founded in 1985, TriQuint Semiconductor (NASDAQ: TQNT) is a leading RF
solutions supplier and technology innovator for the world's top
communications, defense and aerospace companies. People and
organizations around the world need real-time, all-the-time connections;
TriQuint products help reduce the cost and increase the performance of
connected mobile devices and the networks that deliver critical voice,
data and video communications. With the industry's broadest technology
portfolio, recognized R&D leadership, and expertise in high-volume
manufacturing, TriQuint creates standard and custom products using
gallium arsenide (GaAs), gallium nitride (GaN), surface acoustic wave
(SAW) and bulk acoustic wave (BAW) technologies. The company has ISO
9001-certified manufacturing facilities in the U.S., production in Costa
Rica, and design centers in North America and Germany. For more
information, visit www.triquint.com.
TriQuint: Reach Further, Reach Faster™
TQNT-F
|
TriQuint Semiconductor, Inc.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 28, 2014
|
|
December 31, 2013
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
214,498
|
|
|
$
|
79,026
|
|
Investments in marketable securities
|
|
8,979
|
|
|
-
|
|
Accounts receivable, net
|
|
141,719
|
|
|
177,114
|
|
Inventories
|
|
157,400
|
|
|
159,488
|
|
Prepaid expenses
|
|
10,429
|
|
|
13,617
|
|
Deferred tax assets, net
|
|
15,982
|
|
|
12,787
|
|
Other current assets
|
|
37,341
|
|
|
39,960
|
|
|
Total current assets
|
|
|
586,348
|
|
|
481,992
|
Property, plant and equipment, net
|
|
415,109
|
|
|
420,363
|
Goodwill
|
|
13,519
|
|
|
13,519
|
Intangible assets, net
|
|
20,680
|
|
|
23,510
|
Deferred tax assets - noncurrent, net
|
|
61,679
|
|
|
61,554
|
Other noncurrent assets, net
|
|
|
34,073
|
|
|
32,319
|
|
|
Total assets
|
|
|
$
|
1,131,408
|
|
|
$
|
1,033,257
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
65,779
|
|
|
$
|
52,472
|
|
Accrued payroll
|
|
41,587
|
|
|
39,743
|
|
Other accrued liabilities
|
|
12,101
|
|
|
15,893
|
|
|
Total current liabilities
|
|
119,467
|
|
|
108,108
|
Long-term liabilities:
|
|
|
|
|
|
|
Long-term income tax liability
|
|
3,996
|
|
|
2,062
|
|
Cross-licensing liability
|
|
11,604
|
|
|
11,752
|
|
Other long-term liabilities
|
|
16,402
|
|
|
16,782
|
|
|
Total liabilities
|
|
|
151,469
|
|
|
138,704
|
Stockholders' equity:
|
|
|
|
|
|
|
Common stock
|
|
174
|
|
|
162
|
|
Additional paid-in capital
|
|
799,138
|
|
|
699,903
|
|
Accumulated other comprehensive income
|
|
93
|
|
|
95
|
|
Retained earnings
|
|
180,534
|
|
|
194,393
|
|
|
Total stockholders' equity
|
|
979,939
|
|
|
894,553
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,131,408
|
|
|
$
|
1,033,257
|
|
|
|
|
|
|
|
|
|
|
|
TriQuint Semiconductor, Inc.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
June 28, 2014
|
|
March 29, 2014
|
|
June 29, 2013
|
|
June 28, 2014
|
|
June 29, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
230,771
|
|
|
$
|
177,606
|
|
|
$
|
190,103
|
|
|
$
|
408,377
|
|
|
374,312
|
|
Cost of goods sold
|
|
138,057
|
|
|
118,556
|
|
|
133,384
|
|
|
256,613
|
|
|
278,821
|
|
|
Gross profit
|
|
92,714
|
|
|
59,050
|
|
|
56,719
|
|
|
151,764
|
|
|
95,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research, development and engineering
|
48,001
|
|
|
49,870
|
|
|
47,107
|
|
|
97,871
|
|
|
93,178
|
|
|
Selling, general and administrative
|
37,316
|
|
|
29,163
|
|
|
25,989
|
|
|
66,479
|
|
|
53,230
|
|
|
|
Total operating expenses
|
85,317
|
|
|
79,033
|
|
|
73,096
|
|
|
164,350
|
|
|
146,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
7,397
|
|
|
(19,983
|
)
|
|
(16,377
|
)
|
|
(12,586
|
)
|
|
(50,917
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
42
|
|
|
27
|
|
|
38
|
|
|
69
|
|
|
76
|
|
|
Interest expense
|
(844
|
)
|
|
(855
|
)
|
|
(1,137
|
)
|
|
(1,699
|
)
|
|
(2,276
|
)
|
|
Other, net
|
(624
|
)
|
|
45
|
|
|
336
|
|
|
(579
|
)
|
|
27
|
|
|
|
Other (expense) income, net
|
(1,426
|
)
|
|
(783
|
)
|
|
(763
|
)
|
|
(2,209
|
)
|
|
(2,173
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax
|
5,971
|
|
|
(20,766
|
)
|
|
(17,140
|
)
|
|
(14,795
|
)
|
|
(53,090
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
761
|
|
|
(1,697
|
)
|
|
(2,255
|
)
|
|
(936
|
)
|
|
(10,256
|
)
|
Net income (loss)
|
|
$
|
5,210
|
|
|
$
|
(19,069
|
)
|
|
$
|
(14,885
|
)
|
|
$
|
(13,859
|
)
|
|
$
|
(42,834
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic per share net earnings (loss)
|
$
|
0.03
|
|
|
$
|
(0.12
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.27
|
)
|
|
Diluted per share net earnings (loss)
|
$
|
0.03
|
|
|
$
|
(0.12
|
)
|
|
$
|
(0.09
|
)
|
|
(0.08
|
)
|
|
$
|
(0.27
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
171,770
|
|
|
164,386
|
|
|
159,347
|
|
|
168,140
|
|
|
160,044
|
|
|
Diluted
|
|
181,319
|
|
|
164,386
|
|
|
159,347
|
|
|
168,140
|
|
|
160,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TriQuint Semiconductor, Inc.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
(% of revenue)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
June 28, 2014
|
|
March 29, 2014
|
|
June 29, 2013
|
|
June 28, 2014
|
|
June 29, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost of goods sold
|
|
|
59.8
|
%
|
|
66.8
|
%
|
|
70.2
|
%
|
|
62.8
|
%
|
|
74.5
|
%
|
|
Gross profit
|
|
|
40.2
|
%
|
|
33.2
|
%
|
|
29.8
|
%
|
|
37.2
|
%
|
|
25.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research, development and engineering
|
|
20.8
|
%
|
|
28.1
|
%
|
|
24.8
|
%
|
|
24.0
|
%
|
|
24.9
|
%
|
|
Selling, general and administrative
|
|
16.2
|
%
|
|
16.4
|
%
|
|
13.6
|
%
|
|
16.3
|
%
|
|
14.2
|
%
|
|
|
Total operating expenses
|
|
37.0
|
%
|
|
44.5
|
%
|
|
38.4
|
%
|
|
40.3
|
%
|
|
39.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
3.2
|
%
|
|
(11.3
|
)%
|
|
(8.6
|
)%
|
|
(3.1
|
)%
|
|
(13.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
Interest expense
|
|
|
(0.3
|
)%
|
|
(0.4
|
)%
|
|
(0.6
|
)%
|
|
(0.4
|
)%
|
|
(0.6
|
)%
|
|
Other, net
|
|
|
(0.3
|
)%
|
|
0.0
|
%
|
|
0.2
|
%
|
|
(0.1
|
)%
|
|
0.0
|
%
|
|
|
Other (expense) income, net
|
|
(0.6
|
)%
|
|
(0.4
|
)%
|
|
(0.4
|
)%
|
|
(0.5
|
)%
|
|
(0.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax
|
|
2.6
|
%
|
|
(11.7
|
)%
|
|
(9.0
|
)%
|
|
(3.6
|
)%
|
|
(14.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
0.3
|
%
|
|
(1.0
|
)%
|
|
(1.2
|
)%
|
|
(0.2
|
)%
|
|
(2.8
|
)%
|
Net income (loss)
|
|
|
2.3
|
%
|
|
(10.7
|
)%
|
|
(7.8
|
)%
|
|
(3.4
|
)%
|
|
(11.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TriQuint Semiconductor, Inc.
|
SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
(Unaudited)
|
(Dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
June 28, 2014
|
|
March 29, 2014
|
|
June 29, 2013
|
|
June 28, 2014
|
|
June 29, 2013
|
|
|
|
|
|
(% of revenues)
|
|
(% of revenues)
|
|
(% of revenues)
|
|
(% of revenues)
|
|
(% of revenues)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP GROSS PROFIT
|
|
$
|
92,714
|
|
40.2
|
%
|
|
$
|
59,050
|
|
33.2
|
%
|
|
$
|
56,719
|
|
29.8
|
%
|
|
$
|
151,764
|
|
37.2
|
%
|
|
$
|
95,491
|
|
25.5
|
%
|
|
Adjustment for stock based compensation charges
|
|
2,218
|
|
1.0
|
%
|
|
1,785
|
|
1.0
|
%
|
|
1,570
|
|
0.8
|
%
|
|
4,003
|
|
1.0
|
%
|
|
3,606
|
|
1.0
|
%
|
|
Adjustment for restructuring and impairment charges
|
|
(20
|
)
|
0.0
|
%
|
|
715
|
|
0.4
|
%
|
|
-
|
|
-
|
%
|
|
695
|
|
0.0
|
%
|
|
-
|
|
-
|
%
|
|
Adjustment for charges associated with acquisitions
|
|
1,301
|
|
0.5
|
%
|
|
1,083
|
|
0.7
|
%
|
|
1,202
|
|
0.7
|
%
|
|
2,384
|
|
0.6
|
%
|
|
2,410
|
|
0.6
|
%
|
NON-GAAP GROSS PROFIT
|
|
$
|
96,213
|
|
41.7
|
%
|
|
$
|
62,633
|
|
35.3
|
%
|
|
$
|
59,491
|
|
31.3
|
%
|
|
158,846
|
|
38.9
|
%
|
|
101,507
|
|
27.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING EXPENSES
|
|
$
|
85,317
|
|
37.0
|
%
|
|
$
|
79,033
|
|
44.5
|
%
|
|
$
|
73,096
|
|
38.4
|
%
|
|
$
|
164,350
|
|
40.3
|
%
|
|
$
|
146,408
|
|
39.1
|
%
|
|
Adjustment for stock based compensation charges
|
|
(5,287
|
)
|
(2.3
|
)%
|
|
(4,805
|
)
|
(2.7
|
)%
|
|
(5,623
|
)
|
(3.0
|
)%
|
|
(10,092
|
)
|
(2.5
|
)%
|
|
(10,610
|
)
|
(2.8
|
)%
|
|
Adjustment for restructuring and impairment charges
|
|
52
|
|
0.0
|
%
|
|
(1,080
|
)
|
(0.6
|
)%
|
|
-
|
|
-
|
%
|
|
(1,028
|
)
|
(0.3
|
)%
|
|
-
|
|
-
|
%
|
|
Adjustment for charges associated with acquisitions
|
|
(8,124
|
)
|
(3.5
|
)%
|
|
(2,200
|
)
|
(1.2
|
)%
|
|
2,108
|
|
1.2
|
%
|
|
(10,324
|
)
|
(2.4
|
)%
|
|
1,794
|
|
0.5
|
%
|
NON-GAAP OPERATING EXPENSES
|
|
$
|
71,958
|
|
31.2
|
%
|
|
$
|
70,948
|
|
40.0
|
%
|
|
$
|
69,581
|
|
36.6
|
%
|
|
$
|
142,906
|
|
35.1
|
%
|
|
$
|
137,592
|
|
36.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING INCOME (LOSS)
|
|
$
|
7,397
|
|
3.2
|
%
|
|
$
|
(19,983
|
)
|
(11.3
|
)%
|
|
$
|
(16,377
|
)
|
(8.6
|
)%
|
|
$
|
(12,586
|
)
|
(3.1
|
)%
|
|
$
|
(50,917
|
)
|
(13.6
|
)%
|
|
Adjustment for stock based compensation charges
|
|
7,505
|
|
3.3
|
%
|
|
6,590
|
|
3.7
|
%
|
|
7,193
|
|
3.8
|
%
|
|
14,095
|
|
3.5
|
%
|
|
14,216
|
|
3.8
|
%
|
|
Adjustment for restructuring and impairment charges
|
|
(72
|
)
|
(0.1
|
)%
|
|
1,795
|
|
1.0
|
%
|
|
-
|
|
-
|
%
|
|
1,723
|
|
0.4
|
%
|
|
-
|
|
-
|
%
|
|
Adjustment for charges associated with acquisitions
|
|
9,425
|
|
4.1
|
%
|
|
3,283
|
|
1.9
|
%
|
|
(906
|
)
|
(0.5
|
)%
|
|
12,708
|
|
3.1
|
%
|
|
616
|
|
0.2
|
%
|
NON-GAAP OPERATING INCOME (LOSS)
|
|
$
|
24,255
|
|
10.5
|
%
|
|
$
|
(8,315
|
)
|
(4.7
|
)%
|
|
$
|
(10,090
|
)
|
(5.3
|
)%
|
|
$
|
15,940
|
|
3.9
|
%
|
|
$
|
(36,085
|
)
|
(9.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NET INCOME (LOSS)
|
|
$
|
5,210
|
|
2.3
|
%
|
|
$
|
(19,069
|
)
|
(10.7
|
)%
|
|
$
|
(14,885
|
)
|
(7.8
|
)%
|
|
$
|
(13,859
|
)
|
(3.4
|
)%
|
|
$
|
(42,834
|
)
|
(11.4
|
)%
|
|
Adjustment for stock based compensation charges
|
|
7,505
|
|
3.3
|
%
|
|
6,590
|
|
3.7
|
%
|
|
7,193
|
|
3.8
|
%
|
|
14,095
|
|
3.5
|
%
|
|
14,216
|
|
3.8
|
%
|
|
Adjustment for restructuring and impairment charges
|
|
(72
|
)
|
0.0
|
%
|
|
1,795
|
|
1.0
|
%
|
|
-
|
|
-
|
%
|
|
1,723
|
|
0.4
|
%
|
|
-
|
|
-
|
%
|
|
Adjustment for impairment (recovery) of investment
|
|
515
|
|
0.2
|
%
|
|
-
|
|
-
|
%
|
|
(421
|
)
|
(0.2
|
)%
|
|
515
|
|
0.1
|
%
|
|
(421
|
)
|
(0.1
|
)%
|
|
Adjustment for non-cash tax expense (benefit)
|
|
803
|
|
0.3
|
%
|
|
(2,190
|
)
|
(1.2
|
)%
|
|
(2,413
|
)
|
(1.4
|
)%
|
|
(1,387
|
)
|
(0.2
|
)%
|
|
(10,725
|
)
|
(2.9
|
)%
|
|
Adjustment for charges associated with acquisitions
|
|
9,643
|
|
4.1
|
%
|
|
3,510
|
|
1.9
|
%
|
|
(421
|
)
|
(0.2
|
)%
|
|
13,153
|
|
3.2
|
%
|
|
1,591
|
|
0.4
|
%
|
NON-GAAP NET INCOME (LOSS)
|
|
$
|
23,604
|
|
10.2
|
%
|
|
$
|
(9,364
|
)
|
(5.3
|
)%
|
|
$
|
(10,947
|
)
|
(5.8
|
)%
|
|
$
|
14,240
|
|
3.6
|
%
|
|
$
|
(38,173
|
)
|
(10.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP DILUTED EARNINGS (LOSS) PER SHARE
|
|
0.03
|
|
|
|
|
$
|
(0.12
|
)
|
|
|
|
$
|
(0.09
|
)
|
|
|
|
$
|
(0.08
|
)
|
|
|
|
(0.27
|
)
|
|
|
|
Adjustment for stock based compensation charges
|
|
0.04
|
|
|
|
|
0.04
|
|
|
|
|
0.04
|
|
|
|
|
0.08
|
|
|
|
|
0.09
|
|
|
|
|
Adjustment for restructuring and impairment charges
|
|
(0.00
|
)
|
|
|
|
0.01
|
|
|
|
|
-
|
|
|
|
|
0.01
|
|
|
|
|
-
|
|
|
|
|
Adjustment for impairment (recovery) of investment
|
|
0.00
|
|
|
|
|
-
|
|
|
|
|
0.00
|
|
|
|
|
0.00
|
|
|
|
|
0.00
|
|
|
|
|
Adjustment for non-cash tax expense (benefit)
|
|
0.01
|
|
|
|
|
(0.01
|
)
|
|
|
|
(0.02
|
)
|
|
|
|
(0.01
|
)
|
|
|
|
(0.07
|
)
|
|
|
|
Adjustment for charges associated with acquisitions
|
|
0.05
|
|
|
|
|
0.02
|
|
|
|
|
0.00
|
|
|
|
|
0.08
|
|
|
|
|
0.01
|
|
|
|
NON-GAAP DILUTED EARNINGS (LOSS) PER SHARE
|
|
$
|
0.13
|
|
|
|
|
$
|
(0.06
|
)
|
|
|
|
$
|
(0.07
|
)
|
|
|
|
$
|
0.08
|
|
|
|
|
$
|
(0.24
|
)
|
|
|
|
|
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Our earnings release contains forward looking estimates of non-GAAP
gross margin and loss per share for the third quarter of 2014. We
provide these non-GAAP measures on a prospective basis for the same
reasons that we provide them to investors on a historical basis. The
following table provides a reconciliation of GAAP gross margin and loss
per share to non-GAAP gross margin and earnings per share anticipated
for the third quarter of 2014 based on the mid-point of guidance.
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Forward Looking Q3 GAAP Gross Margin
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42.0
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%
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Adjustment for stock based compensation charges
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1.0
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%
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Adjustment for charges associated with acquisitions
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1.0
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%
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Forward Looking Q3 non-GAAP Gross Margin
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44.0
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%
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Forward Looking Q3 GAAP Operating Expenses (in millions)
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$
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82.7
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Adjustment for stock based compensation charges
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(5.0
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)
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Adjustment for charges associated with acquisitions
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(7.7
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Forward Looking Q3 non-GAAP Operating Expenses
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$
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70.0
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Forward Looking Q3 GAAP Net Earnings per Share
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$
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0.10
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Adjustment for stock based compensation charges
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0.04
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Adjustment for non-cash tax expense
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0.02
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Adjustment for charges associated with acquisitions
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0.08
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Forward Looking Q3 non-GAAP Net Earnings per Share
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$
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0.24
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