HILLSBORO, Ore.--TriQuint Semiconductor, Inc. (NASDAQ:TQNT - News), a supplier of high performance products for wireless communications, announces its financial results for the quarter and year ended December 31, 2008, including the following highlights:

• Annual revenue grew 21%; quarterly revenue grew 16% over Q4 2007
• Annual 3G revenue grew 254%
• Annual WLAN revenue grew 51%
• Generated operating cash flow of $33.5 million in the fourth quarter
• Launched our second generation TRITIUM Module™ family, offering a 30% size reduction and improved performance for multi-band CDMA Phones
• Announced revolutionary PowerBand™ Technology and new RF transistor family for broadband applications
• Awarded a $4.5 million contract by the Office of Naval Research
• Honored by Raytheon's Space and Airborne Systems division with its top Four-Star Supplier Excellence Award, and received 2008 Supplier-of-the-Year award from ZTE Corporation.

Commenting on the results for the year and quarter ended December 31, 2008, Ralph Quinsey, President and Chief Executive Officer, stated, “In 2008 TriQuint delivered another solid growth year in spite of dramatic economic slowing in Q4. Inventory reductions throughout the supply chain will have a dampening impact on Q1 revenue while strong design-wins and market share gains position us well for Q2 and beyond. We are aggressively managing expenses but low utilization due to existing inventory levels will put pressure on gross margins until Q2 when supply and demand should be better aligned. Our healthy cash balance and absence of debt allow us to stay focused on opportunities. During this challenging business climate TriQuint will deliver innovation and operational efficiency, creating value out of adversity. TriQuint will emerge as a stronger company.”

Summary Financial Results for the Quarter and Year Ended December 31, 2008:

Revenue for the fourth quarter of 2008 was $149.0 million, up 16% from the fourth quarter of 2007 and a decrease of 20% sequentially following a very strong Q3. Revenue for the year ended 2008 was $573.4 million, up 21% from the year ended 2007. Strong growth in 3G handset products combined with revenue from WJ Communications, which we acquired in the second quarter, drove the increase.

Net loss for the fourth quarter of 2008 was $33.8 million, or ($0.23) per share which includes $35.8 million of impairment charges. Net loss for the year ended 2008 was $14.1 million or ($0.10) per share. Non-GAAP net income for the fourth quarter was $6.6 million or $0.05 per diluted share. Non-GAAP financial measures exclude stock based compensation charges, certain impairment 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. Non-GAAP net income for the year ended 2008 was $40.2 million or $0.27 per diluted share compared with $39.5 million or $0.27 per diluted share for the year ended 2007.

Gross margin for the fourth quarter of 2008 was 30.1%, down from 31.4% in the quarter ended September 30, 2008. On a non-GAAP basis, gross margin was 31.5%, down from a non-GAAP gross margin of 33.0% in the prior quarter. Gross margin decreased due to lower utilization in the factories and higher inventory reserves. Gross margin for the year ended 2008 was 32.4%, an increase from gross margin of 31.8% for the year ended 2007.

Operating expenses for the fourth quarter of 2008 were $75.9 million, or 50.9% of revenue. Included in operating expenses for the fourth quarter of 2008 were $33.9 million of charges relating to the impairment of goodwill. Non-GAAP operating expenses for the quarter were $39.9 million or 27.1% of revenue, a decrease of 10% from the prior quarter. Operating expenses for the year ended 2008 were $199.8 million compared with $135.1 million for the year ended 2007. Non-GAAP operating expenses for the year ended 2008 were $156.9 million, an increase of 28% from the year ended 2007. Excluding non-GAAP operating expenses for WJ Communications, the increase was 21%.

Cash, cash equivalents and short-term investments were $86.1 million as of December 31, 2008, an increase of $5.9 million from September 30, 2008. Investments with a maturity between one and two years were $15.9 million. During the quarter, the company paid down the $13.0 million balance on its revolving loan.

Outlook:

The Company estimates that first quarter 2009 revenue will be between $110.0 million and $120.0 million. First quarter net loss is expected to range between ($0.10) and ($0.14) per share and non-GAAP loss is expected to range between ($0.07) and ($0.11) per share. As of today the Company is 90% booked to the midpoint of revenue guidance for the first quarter. The Company is not guiding for full year performance due to the uncertainty caused by the current economy but expects 2009 to be a moderate revenue growth year.

Additional Information Regarding December 31, 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.

GAAP RESULTS
		Three Months Ended										Year Ended
		Q4 2008		Q3 2008		Change vs. Q3 2008		Q4 2007		Change vs. Q4 2007		Q4 2008		Q4 2007		Change vs. Q4 2007
Revenue		$ 149.0		$ 186.3		-20.0%		$ 128.5		16.0%		$ 573.4		$ 475.8		20.5%
GM		30.1%		31.4%		-1.3%		36.7%		-6.6%		32.4%		31.8%		0.6%
Op Income		$ (31.1)		$ 12.3		352.8%		$ 11.8		-363.6%		$ (14.1)		$ 16.2		-187.0%
Net Income		$ (33.8)		$ 11.8		-386.4%		$ 13.8		-344.9%		$ (14.1)		$ 23.4		-160.3%
Diluted EPS		$ (0.23)		$ 0.08		$ (0.31)		$ 0.10		$ (0.33)		$ (0.10)		$ 0.16		$ (0.26)
NON-GAAP RESULTS A
		Three Months Ended										Year Ended
		Q4 2008		Q3 2008		Change vs. Q3 2008		Q4 2007		Change vs. Q4 2007		Q4 2008		Q4 2007		Change vs. Q4 2007
GM		31.5%		33.0%		-1.5%		37.6%		-6.1%		33.9%		32.5%		1.6%
Op Income		$ 7.2		$ 17.5		-58.9%		$ 14.1		-48.9%		$ 38.0		$ 32.3		17.6%
Net Income		$ 6.6		$ 17.1		-61.4%		$ 16.1		-59.0%		$ 40.2		$ 39.5		1.8%
Diluted EPS		$ 0.05		$ 0.12		$ (0.07)		$ 0.11		$ (0.06)		$ 0.27		$ 0.27		$ 0.00
A		Excludes stock based compensation charges, certain impairment charges and certain charges associated with the acquisition of WJ Communications.

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 80519580. 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 80519580.

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, certain impairment charges and certain 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.

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 the effect of inventory reductions in our industry’s supply chain, and of our design wins, market share gains and market diversity upon our future results, TriQuint’s anticipated net loss and revenues, expected non-GAAP net income and 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, increase our market share and continue to provide expected levels of inventory to customers; inventory levels in our markets 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”™ 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 mobile phone 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, laptops, GPS/PND, base stations, broadband communications and military. TriQuint is also lead researcher in a multi-year DARPA program to develop advanced gallium nitride (GaN) amplifiers. TriQuint, as named by Strategy Analytics in August 2008, 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 receive new product information and to register for our newsletters.

TriQuint Semiconductor
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
		December 31,			September 30,			December 31,
		2008			2008			2007
Assets
Current assets:
Cash, cash equivalents and investments		$	86,077		$	80,214		$	203,501
Accounts receivable, net			78,419			113,956			73,185
Inventories			108,068			107,244			67,231
Other current assets			23,399			28,268			15,668
Total current assets			295,963			329,682			359,585
Property, plant and equipment, net			264,250			255,606			204,553
Other, net			58,628			96,558			22,323
Total assets		$	618,841		$	681,846		$	586,461
Liabilities and Stockholders' Equity
Current liabilities:
Line of credit		$	-		$	13,048		$	-
Accounts payable and accrued expenses			56,556			75,531			46,602
Other accrued liabilities			12,775			15,547			9,875
Total current liabilities			69,331			104,126			56,477
Long term income tax liability			10,676			10,537			10,193
Other long-term liabilities			12,294			14,176			4,943
Total liabilities			92,301			128,839			71,613
Stockholders' equity			526,540			553,007			514,848
Total liabilities and stockholders' equity		$	618,841		$	681,846		$	586,461

TriQuint Semiconductor
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2008				2008				2007				2008				2007
Revenues		$	148,989			$	186,347			$	128,484			$	573,431			$	475,776
Cost of goods sold			104,142				127,787				81,305				387,664				324,476
Gross profit			44,847				58,560				47,179				185,767				151,300
Operating expenses:
Research, development and engineering			24,634				25,234				19,461				91,475				65,361
Selling, general and administrative			17,426				21,148				15,922				73,613				61,993
Impairment of goodwill			33,871				-				-				33,871				-
In-process research and development			-				-				-				1,400				7,600
Loss (gain) on disposal of equipment			4				(101	)			39				(514	)			127
Total operating expenses			75,935				46,281				35,422				199,845				135,081
Operating (loss) income			(31,088	)			12,279				11,757				(14,078	)			16,219
Other income (expense):
Interest income			478				603				2,336				4,197				9,928
Interest expense			(400	)			(134	)			(4	)			(548	)			(1,646	)
Foreign currency gain			18				136				70				733				343
(Impairment)/recovery of investment			(1,902	)			-				-				(1,797	)			-
Other, net			16				19				(4	)			54				80
Other (expense) income, net			(1,790	)			624				2,398				2,639				8,705
(Loss) income before income tax			(32,878	)			12,903				14,155				(11,439	)			24,924
Income tax expense			957				1,060				386				2,710				1,530
Net (loss) income		$	(33,835	)		$	11,843			$	13,769			$	(14,149	)		$	23,394
Per Share Data
Basic per share net income		$	(0.23	)		$	0.08			$	0.10			$	(0.10	)		$	0.17
Diluted per share net income		$	(0.23	)		$	0.08			$	0.10			$	(0.10	)		$	0.16
Weighted-average shares outstanding:
Basic			146,298				145,029				141,709				144,518				140,189
Diluted			146,298				148,082				144,701				144,518				142,490

TriQuint Semiconductor
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,			December 31,
		2008			2008			2007			2008			2007
Revenues		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Cost of goods sold		69.9	%		68.6	%		63.3	%		67.6	%		68.2	%
Gross profit		30.1	%		31.4	%		36.7	%		32.4	%		31.8	%
Operating expenses:
Research, development and engineering		16.5	%		13.5	%		15.2	%		16.0	%		13.8	%
Selling, general and administrative		11.7	%		11.3	%		12.4	%		12.8	%		13.0	%
Impairment of goodwill		22.7	%		-			-			5.9	%		-
In-process research and development		-			-			-			0.2	%		1.6	%
Loss (gain) on disposal of equipment		0.0	%		-0.1	%		0.0	%		-0.1	%		0.0	%
Total operating expenses		50.9	%		24.7	%		27.6	%		34.8	%		28.4	%
Operating (loss) income		-20.8	%		6.7	%		9.1	%		-2.4	%		3.4	%
Other income (expense):
Interest income		0.3	%		0.3	%		1.9	%		0.7	%		2.1	%
Interest expense		-0.2	%		-0.1	%		0.0	%		-0.1	%		-0.3	%
Foreign currency gain		0.0	%		0.1	%		0.0	%		0.1	%		0.0	%
Recovery of impairment		-1.3	%		-			-			-0.3	%		-
Other, net		-0.0	%		-0.0	%		-0.0	%		0.0	%		0.0	%
Other (expense) income, net		-1.2	%		0.3	%		1.9	%		0.4	%		1.8	%
(Loss) income before income tax		-22.0	%		7.0	%		11.0	%		-2.0	%		5.2	%
Income tax expense		0.6	%		0.6	%		0.3	%		0.5	%		0.3	%
Net (loss) income		-22.6	%		6.4	%		10.7	%		-2.5	%		4.9	%

TriQuint Semiconductor
SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Unaudited)
(In thousands, except per share amounts)
		Three Months Ended																		Year Ended
		December 31, 2008						September 30, 2008						December 31, 2007						December 31, 2008						December 31, 2007
					(% of revenues)						(% of revenues)						(% of revenues)						(% of revenues)						(% of revenues)
GAAP GROSS PROFIT		$	44,847		30.1	%		$	58,560		31.4	%		$	47,179		36.7	%		$	185,767		32.4	%		$	151,300		31.8	%
Adjustment for equity compensation charges			1,090		0.7	%			1,163		0.6	%			1,079		0.8	%			4,338		0.7	%			3,170		0.7	%
Adjustment for charges associated with acquisitions
Amortization of intangible assets			796		0.5	%			814		0.4	%			-		0.0	%			1,882		0.3	%			-		0.0	%
Increase in value of inventory			287		0.2	%			966		0.5	%			-		0.0	%			2,959		0.5	%			-		0.0	%
NON-GAAP GROSS PROFIT		$	47,020		31.5	%		$	61,503		33.0	%		$	48,258		37.5	%		$	194,946		33.9	%		$	154,470		32.5	%
GAAP OPERATING EXPENSES		$	75,935		50.9	%		$	46,281		24.7	%		$	35,422		27.6	%		$	199,845		34.8	%		$	135,081		28.4	%
Adjustment for equity compensation charges			(2,008	)	-1.2	%			(2,064	)	-1.0	%		$	(1,226	)	-1.0	%			(7,164	)	-1.2	%			(5,318	)	-1.1	%
Adjustment for impairment of goodwill			(33,871	)	-22.5	%			-		0.0	%			-		0.0	%			(33,871	)	-5.9	%			-		0.0	%
Adjustment for charges associated with acquisitions
Amortization of intangible assets			(205	)	-0.1	%			(205	)	-0.1	%			-		0.0	%			(478	)	-0.1	%			-		0.0	%
In-process research and development			-		0.0	%			-		0.0	%			-		0.0	%			(1,400	)	-0.2	%			(7,600	)	-1.6	%
NON-GAAP OPERATING EXPENSES		$	39,851		27.1	%		$	44,012		23.6	%		$	34,196		26.6	%		$	156,932		27.4	%		$	122,163		25.7	%
GAAP OPERATING (LOSS) INCOME		$	(31,088	)	-20.8	%		$	12,279		6.7	%		$	11,757		9.1	%		$	(14,078	)	-2.4	%		$	16,219		3.4	%
Adjustment for equity compensation charges			3,098		2.1	%			3,227		1.7	%			2,305		1.8	%			11,502		1.9	%			8,488		1.8	%
Adjustment for impairment of goodwill			33,871		22.6	%			-		0.0	%			-		0.0	%			33,871		5.9	%			-		0.0	%
Adjustment for charges associated with the purchase of WJ Communications			1,288		0.9	%			1,985		1.1	%			-		0.0	%			6,719		1.3	%			7,600		1.6	%
NON-GAAP OPERATING INCOME		$	7,169		4.8	%		$	17,491		9.5	%		$	14,062		10.9	%		$	38,014		6.7	%		$	32,307		6.8	%
GAAP NET (LOSS) INCOME		$	(33,835	)	-22.6	%		$	11,843		6.4	%		$	13,769		10.7	%		$	(14,149	)	-2.5	%		$	23,394		4.9	%
Adjustment for equity compensation charges			3,098		2.1	%			3,227		1.7	%			2,305		1.8	%			11,502		1.9	%			8,488		1.8	%
Adjustment for impairment charges			35,773		23.9	%			-		0.0	%			-		0.0	%			35,773		6.2	%			-		0.0	%
Adjustment for charges associated with the purchase of WJ Communications			1,598		1.1	%			1,985		1.1	%			-		0.0	%			7,029		1.3	%			7,600		1.6	%
NON-GAAP NET INCOME		$	6,634		4.5	%		$	17,055		9.2	%		$	16,074		12.5	%		$	40,155		6.9	%		$	39,482		8.3	%
GAAP DILUTED (LOSS) EARNINGS PER SHARE		$	(0.23	)				$	0.08					$	0.10					$	(0.10	)				$	0.16
Adjustment for equity compensation charges			0.03						0.02						0.01						0.08						0.06
Adjustment for impairment charges			0.24						-						-						0.24						-
Adjustment for charges associated with the purchase of WJ Communications			0.01						0.02						-						0.05						0.05
NON-GAAP DILUTED EARNINGS PER SHARE		$	0.05					$	0.12					$	0.11					$	0.27					$	0.27
GAAP COMMON SHARES ASSUMING DILUTION			146,298						148,082						144,701						144,518						142,490
Adjustment for equity compensation charges			237						20						1,216						2,368						346
COMMON SHARES ASSUMING DILUTION EXCLUDING EQUITY COMPENSATION			146,535						148,102						145,917						146,886						142,836

TriQuint Semiconductor, Inc.
VP of Finance & Administration, CFO
Steve Buhaly, +1-503-615-9401
sbuhaly@tqs.com
or
Fi. Comm
Investor Relations Counsel
Heidi A. Flannery, +1-541-322-0230
heidi.flannery@ficomm.com
or
Media Contact:
TriQuint Semiconductor, Inc.
Director, Marketing Comms
Brandi Frye, +1-503-615-9488
bfrye@tqs.com