HILLSBORO, OREGON & SANTA ROSA, CALIFORNIA (USA) – September 3, 2009 – 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.
“The TriAccess team is a great fit for TriQuint,” said Brian Balut, Vice President of TriQuint’s Network Products. “TriAccess brings a portfolio of products for the CATV and FTTP markets, with strong design and market understanding, which accelerates TriQuint’s strategy of serving these applications. The combined resources of TriQuint and TriAccess put the company in a leadership position in these growing markets.”
Cable and telecom operators are competing to provide the consumer with triple-play services (Internet, video and voice) and are upgrading their networks to provide the bandwidth needed for high-speed Internet, multiple HDTV streams, and applications such as Video-on-Demand (VOD). These services require RF components that provide higher performance – such as higher bandwidth, better linearity, lower noise, reduced power consumption, and higher integration – all at reduced cost. It’s not just a U.S. focus; Europe and the Asia-Pacific region are deploying similar systems. TriQuint’s CATV products combined with TriAccess’ product lines address these global needs. TriAccess RFIC amplifiers deliver significant performance improvements over competing products.
“We’re eager to join TriQuint and believe that together we can accelerate our success in multiple CATV and fiber optic video markets worldwide. We are anxious to further utilize TriQuint’s process technology and assembly and test resources. TriQuint is well known and highly respected by our customers, providing additional confidence that we are a dependable and stable source of supply,” said Chris Day, TriAccess’ president and CTO. Mr. Day will now manage this TriQuint Santa Rosa Design Center focused on the growing CATV and fiber optic video markets.
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.
FORWARD LOOKING STATEMENTS
This TriQuint Semiconductor, Inc. (NASDAQ: TQNT) press release contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that forward-looking statements involve risks and uncertainties. The cautionary statements made in this press release should be read as being applicable to all related statements wherever they appear. Statements containing such words as ‘leadership position’, ‘growing markets’, ‘stable source of supply’, ‘significant performance improvements’ or similar terms are considered to contain uncertainty and are forward-looking statements. A number of factors affect TriQuint’s operating results and could cause its actual future results to differ materially from any results indicated in this press release or in any other forward-looking statements made by, or on behalf of, TriQuint including, but not limited to: those associated with the unpredictability and volatility of customer acceptance of and demand for our products and technologies, the ability of our production facilities and those of our vendors to meet demand, the ability of our production facilities and those of our vendors to produce products with yields sufficient to maintain profitability, as well as the other “Risk Factors” set forth in TriQuint’s most recent 10-Q report filed with the Securities and Exchange Commission. This and other reports can be found on the SEC web site, www.sec.gov. A reader of this release should understand that these and other risks could cause actual results to differ materially from expectations expressed / implied in forward-looking statements.
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 in the top five mobile phone manufacturers’ products, 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, gallium nitride (GaN), 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 the lead researcher in a multi-year DARPA program to develop advanced GaN amplifiers. TriQuint, as named by Strategy Analytics1, 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.
1 Announced February 2009 and May 2009, respectively.
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