TriQuint Acquires TriAccess Technologies

HILLSBORO, Ore. & SANTA ROSA, Calif.--(BUSINESS WIRE)--TriQuint Semiconductor, Inc (NASDAQ: TQNT), a leading RF front-end product manufacturer and foundry services provider, announced its acquisition of TriAccess Technologies, a leading provider of Cable TV (CATV) and Fiber-to-the-Premise (FTTP) integrated circuits for the amplification of high-quality multimedia content, effective today. Previously, TriQuint served as TriAccess’ foundry supplier.

Terms of the acquisition were not disclosed. TriAccess’ results are not expected to materially impact TriQuint’s net income. In conjunction with this transaction, the Board of Directors has approved issuance of 170,300 stock options to ten former TriAccess employees under TriQuint’s 2008 Inducement Award Program. The stock option grants are effective September 3, 2009. A majority of TriQuint’s independent directors approved the grant of the stock options in accordance with NASDAQ Listing Standard 5635(c)(4). The stock options granted as part of the award program have a 10-year life, vest 25% twelve months from the date of grant, with the remaining 75% of the option vesting in equal quarterly installments of 6.25% over the next twelve quarters. They have an exercise price of $7.54, which is the closing price of TriQuint’s common stock on September 3, 2009. The options expire on September 3, 2019.

Triquint 10Q

New litigation: "On July 23, 2009, the Company filed a complaint in the United States District Court for the District of Arizona against Avago Technologies Limited, Avago Technologies U.S., and Avago Technologies Wireless IP (collectively, “Avago”). Avago sent letters to the Company’s customers advising them that Avago owns certain U.S. patents (“Avago patents”) identified in the letter. Avago’s letters further stated that Avago has not licensed its patents to any competitors, and that if customers purchase certain radio frequency products from suppliers other than Avago, they will not be protected against Avago’s patents. The Company’s complaint seeks a declaration that the Avago patents are invalid and that no TriQuint products infringe them. The Company’s complaint also alleges that certain Avago products infringe on certain of TriQuint’s U.S. patents. Avago has not yet filed an answer to the Company’s complaint." Editors note: The patents cited in complaint are US 6,879,224; 6,472,954; 6,262,637; 6,384,697; 6,114,635; 5,231,327; 5,894,647

Growth markets: "We experienced 33% overall revenue growth in the second quarter of 2009 compared to the second quarter of 2008, lead by handset growth of 77% and defense & aerospace growth of 41%. The handset growth is primarily attributable to strong growth in 3G and EDGE product revenues with an increase of 195% for the second quarter of 2009 compared to 2008."

Triquint 10K

Revenue and trends by reporting segments:

• "As a percentage of our total revenues, our revenues from handsets products accounted for approximately 52% in 2008, compared to 53% of revenues in 2007 and 51% of revenues in 2006.
• Our revenues from networks products accounted for approximately 37% of our total revenues in 2008, compared to 36% in 2007 and 37% in 2006.
• Our military business accounted for approximately 11% of our total revenues in 2008, compared to 11% in 2007 and 12% in 2006."

Fabrication technology and locations: "The core process technology in our Hillsboro, Oregon wafer fabrication operation employs both implanted and epitaxial structures, 4 micron metal pitch, typically 0.5 or greater micron geometries, involves 10 to 18 mask steps, and is scalable. The recent addition of an optical process for 0.25 and 0.13 micron gates gives a significant advantage in cost, with a small degradation in performance, over the typical e-beam process required to achieve those types of gate structures. The process technology employed in our Texas wafer fabrication operation includes eight advanced performance production processes: 0.5 micron gate length MESFET for amplifier applications; two 0.15, a 0.25 and a 0.5 micron gate length pHEMT for high power and high frequency applications; a 0.15 micron gate length mHEMT process for ultra-high frequency and low noise applications; HBT for high voltage, high linearity and high power density; 0.5 micron gate length HFET for high voltage, high power amplifiers and switches and Vertical P-I-N diode (VPIN) for signal control devices such as switches, limiters and attenuators. In our Florida wafer fabrication operation, we use manufacturing techniques that are very similar to those for integrated circuits to produce our SAW devices. In our Texas and Bend, Oregon wafer fabrication operations, we use manufacturing techniques that are very similar to those for integrated circuits to produce our BAW devices."

Employees: "As of December 31, 2008, we employed approximately 2,297 persons, including approximately 1,630 in manufacturing and support related positions, 335 in process, product and development engineering, 165 in marketing and sales and 167 in general and administration functions."