TriQuint Semiconductor Inc. (Hillsboro, OR), a supplier of modules and components for communications applications, reported its financial results for the quarter ended September 30, 2005. Revenues from continuing operations for the third quarter ended September 30, 2005, totaled $75.2 million, an increase of 11 percent from the previous quarter. The third-quarter revenues were consistent with the financial guidance provided on July 21, 2005, and reflected increases in the handset and military markets. As compared to the prior year, third-quarter revenue was down eight percent.
Gross margin improved in the third quarter of 2005 to 31.4 percent, an increase of 3.2 percentage points from the second quarter of 2005 and 1.1 percentage points from the third quarter of 2004. Operating expenses for the third quarter of 2005 decreased seven percent from the second quarter of 2005, due primarily to a charge for a reduction in force in the second quarter. The expenses in both quarters included a charge of $0.4 million related to the TFR acquisition, which closed in January of 2005.
Net income from continuing operations for the quarter ended September 30, 2005, was $2.1 million, a strong increase from the $1.5 million loss from continuing operations reported in the quarter ended June 30, 2005. The company posted net income of $2.6 million, or $0.02 per diluted share, for the third quarter ended September 30, 2005, $0.01 above the July 21st guidance. The increase was primarily due to the sale of intellectual property received, which was held at zero book value, and the transaction resulted in a gain of approximately $1.0 million, or $0.01 per diluted share. In the previous quarter ended June 30, 2005, the company reported net income of $6.2 million, which included a gain from discontinued operations of $7.7 million, which amount was net of income tax of $4.4 million.
President and CEO Ralph Quinsey commented, "TriQuint Semiconductor benefited from increased shipments to the CDMA handset market and the military market as both returned to more normal demand levels in the third quarter. The outlook for fourth-quarter 2005 and beyond is exciting as we booked record orders of over $13 million for our power amplifier products, largely in GSM/GPRS applications."
