Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
WASHINGTON, D.C. 20549
______________
 FORM 8-K
______________

 CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported) January 29, 2018
  ______________
Integrated Device Technology, Inc.
(Exact name of registrant as specified in its charter)
  ______________
 
Delaware
0-12695
94-2669985
(State of
Incorporation)
(Commission File Number)
(IRS Employer
Identification No.)

6024 Silver Creek Valley Road, San Jose, California  95138
(Address of principal executive offices) (Zip Code)
 
(408) 284-8200
(Registrant's telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)
 ______________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 
 
Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o












Item 2.02.  Results of Operations and Financial Condition.
 
The information in this Current Report, including Exhibit 99.1 attached hereto, is furnished pursuant to Item 2.02 of this Current Report.  Consequently, it is not deemed “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or the Securities Act of 1933, as amended, if such subsequent filing specifically references this Current Report.
 
On January 29, 2018, Integrated Device Technology, Inc. (the “Company”) announced its results of operations and financial condition as of and for the three and nine months ended December 31, 2017, in a publicly disseminated press release that is attached hereto as Exhibit 99.1.
 
The Company's press release contains non-GAAP financial measures.  Pursuant to the requirements of Regulation G and Item 10(e)(1)(i) of Regulation S-K, the Company has provided reconciliations within the press release of the non-GAAP financial measures to the most directly comparable GAAP financial measures included in the press release.
 
The foregoing description is qualified in its entirety by reference to the Company's press release dated January 29, 2018, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.


Item 9.01 Financial Statements and Exhibits.
 
(d)       Exhibits.
 

Exhibit No.
Description
 
 
99.1
Press Release Dated January 29, 2018






 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 

Dated:
January 29, 2018
 
 
INTEGRATED DEVICE TECHNOLOGY, INC.
 
 
 
 
By:
/S/ BRIAN C. WHITE
 
Brian C. White
 
Senior Vice President and Chief Financial Officer
(duly authorized officer)







































 






EXHIBIT INDEX
 

Exhibit No.
Description
 
 
Press Release Dated January 29, 2018.




Exhibit


Exhibit 99.1
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12008352&doc=3




FOR IMMEDIATE RELEASE
Financial Contact:
 
Press Contact:
Krishna Shankar
Head of Investor Relations
Phone: (408) 574-6995
E-mail: krishna.shankar@idt.com
 
Krista Pavlakos
IDT Director, Communications
Phone: (408) 574-6640
E-mail: krista.pavlakos@idt.com

IDT REPORTS FISCAL 2018 Q3 FINANCIAL RESULTS
Q3 FY18 Revenue of $217.1 M,
Q3 FY18 GAAP Diluted loss per share of $0.51 including one-time tax effect of new tax laws,
Q3 FY18 Non-GAAP Diluted EPS of $0.42 excluding one-time tax impact

SAN JOSE, Calif., January 29, 2018 - Integrated Device Technology, Inc. (IDT®) (NASDAQ: IDTI) today announced results for the fiscal third quarter 2018, ended December 31, 2017.

“Third quarter fiscal 2018 revenues totaled $217.1 million, six percent higher sequentially, and 23 percent higher than the year ago period. Strength in the quarter was driven primarily by increasing demand for products in our high-performance compute and automotive/industrial end markets, ” said Greg Waters, President and Chief Executive Officer. “We expect product cycles in our consumer end market to kick in during our fiscal fourth quarter, driving total company growth beyond normal seasonality”.

Recent Business Highlights - Auto and Industrial
IDT’s Auto and Industrial business continues to expand. New product releases in sensor signal conditioners, position sensors, and custom products are all delivering growth and strong design in traction.
IDT announced a new family of gas sensors that provide better sensitivity, stability, and selectivity improvements over many competing solutions. These qualities are ideal for demanding industrial applications, where low-level gas detection, long service life, and accurate readings are critical for next-generation platforms and proper system operation.
IDT announced the addition of a family of relative humidity (RH) sensor ICs to its fast-growing portfolio of advanced sensor products. IDT's humidity sensors offer high accuracy with the fastest measurement response time of comparable devices currently on the market.
Combining our wireless power and advanced sensor technology capabilities, IDT introduced the SDAWIR0x wireless sensor hub evaluation kit, which wirelessly connects IDT’s high-performance humidity, temperature and flow sensors in the latest industrial IoT, smart home, connected appliances, fluid metering and control and environmental monitoring applications.  Up to one hundred of these sensor modules can be connected to a single Wi-Fi hub; or





thousands in a full mesh network making it ideal for a wide variety of connected devices requiring real-time temperature, humidity and flow data, such as smart thermostats, smart refrigerators, environmental weather stations, pumps and metering equipment and medical infusion pumps and CPAPs*.
Recent Business Highlights - Consumer
LG Electronics and IDT have partnered on the world’s first implementation of Qi wireless charging Extended Power Profile (EPP) in a flagship smartphone, the LG V30, which enables safe, wireless fast charging capability. We believe that IDT is well positoned to be a leader in the Qi/EPP platfom with support for 5W to 15W charging, which will be the preferred standard for Automotive Wireless Power adoption.
IDT announced the commencement of production shipments of wireless power products to a major new Japanese smartphone OEM.

Recent Business Highlights - Communications & Computing
IDT introduced an integrated IEEE 1588 timing platform and software for a variety of Cavium System on Chip solutions. We believe that our IEEE 1588 timing platforms and software are well positioned for fast-growing end markets in data centers, high-performance computing, storage, networking, wireless 4G/5G mobile networks, industrial automation applications, and next-generation video production/transmission networks.
IDT announced that Qualcomm Datacenter Technologies, a subsidiary of Qualcomm Technologies, Inc., will use IDT’s second generation DDR4 chipset with the Qualcomm Centriq™ 2400 processor. This chipset includes the IDT 4RCD0229K register, 4DB0226KB data buffer and TSE2004 temperature sensor.
IDT introduced its new 8SLVS1118 buffer, the industry’s first with 18 outputs and the lowest additive jitter in its class. This combination of 18 outputs - two more than its nearest competitors - and best-in-class additive jitter performance make the 8SLVS1118 ideal for current and emerging telecommunication, industrial and medical applications that have critical timing requirements necessitating well-defined and repeatable clock distribution performance.
The following highlights the Company’s financial performance on both a GAAP and supplemental non-GAAP basis. The Company provides supplemental information regarding its operating performance on a non-GAAP basis that excludes certain gains, losses and charges, or events which occur relatively infrequently and which management considers to be outside our core operating results. Non-GAAP results are not in accordance with GAAP and may not be comparable to non-GAAP information provided by other companies. Non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. A complete reconciliation of GAAP to non-GAAP results is attached to this press release.
Revenue for the fiscal third quarter of 2018 was $217.1 million. This compared with $204.4 million reported last quarter, and $176.4 million reported in the same period one year ago.
GAAP net loss for the fiscal third quarter of 2018 was $68.2 million, or a loss of $0.51 per diluted share (including a one-time GAAP provision of $101.9 million for the estimated impacts of the Tax Cuts and Jobs Act (“TCJA”), which was enacted on December 22, 2017, discussed further below) versus GAAP net income of $18.7 million or $0.14 per diluted share last quarter, and GAAP net income from continuing operations of $33.4 million or $0.24 per diluted share in the same period one year ago. Fiscal third quarter GAAP results include $10.8 million in acquisition-related and restructuring charges, $13.6 million in stock-based compensation, $3.7 million in non-cash interest expense, $0.4





million in certain unrealized foreign exchange gain and a one-time GAAP provision of $101.9 million for the estimated impacts of the TCJA.
The estimated $101.9 million impact of the TCJA includes $10.2 million from the remeasurement of U.S. deferred tax assets and liabilities at lower enacted corporate tax rates and $91.7 million from the tax on deemed repatriation of historical foreign earnings. The net taxes payable (net of tax attributes of approximately $59.1 million) on deemed repatriation of historical foreign earnings is approximately $32.6 million, which will be payable over 8 years starting in the next fiscal year.
Non-GAAP net income for the fiscal third quarter of 2018 was $57.6 million or $0.42 per diluted share, compared with non-GAAP net income of $48.2 million or $0.35 per diluted share last quarter, and non-GAAP net income from continuing operations of $49.0 million or $0.35 per diluted share reported in the same period one year ago.
GAAP gross profit for the fiscal third quarter of 2018 was $128.4 million, or 59.1 percent, compared with GAAP gross profit of $116.8 million or 57.1 percent last quarter, and $104.1 million, or 59.0 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal third quarter of 2018 was $136.6 million, or 62.9 percent, compared with non-GAAP gross profit of $125.5 million, or 61.4 percent last quarter, and $108.7 million, or 61.6 percent, reported in the same period one year ago.
GAAP R&D expense for the fiscal third quarter of 2018 was $49.8 million, compared with GAAP R&D expense of $48.7 million last quarter, and $38.2 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal third quarter of 2018 was $42.8 million, compared with non-GAAP R&D expense of $41.3 million last quarter, and $33.5 million in the same period one year ago.
GAAP SG&A expense for the fiscal third quarter of 2018 was $40.7 million, compared with GAAP SG&A expense of $44.5 million last quarter, and $32.7 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal third quarter of 2018 was $31.1 million, compared with non-GAAP SG&A expense of $31.2 million last quarter, and $25.7 million in the same period one year ago.

Webcast and Conference Call Information

Investors may listen to the live call at 1:30 p.m. Pacific Time on January 29, 2018 by calling 844-308-4493. The access code is 3787275. Investors may listen to a live or replay webcast of the Company’s quarterly financial conference call at http://ir.idt.com/. The live webcast will begin at 1:30 p.m. Pacific Time on January 29, 2018. The webcast replay will be available after 4:30 p.m. Pacific Time on January 29, 2018 for one week.

IDT’s next regularly scheduled Quiet Period will begin March 19, 2018, during which time IDT representatives will not comment on IDT’s business outlook, financial results or expectations. The Quiet Period will extend until the day when IDT’s fourth quarter fiscal 2018 earnings release is published.

About IDT
Integrated Device Technology, Inc. develops system-level solutions that optimize its customers’ applications. IDT’s market-leading products in RF, timing, wireless power transfer, serial switching, interfaces and sensing solutions are among the company’s broad array of complete mixed-signal solutions for the communications, computing, consumer, automotive and industrial segments. Headquartered in San Jose, Calif., IDT has design, manufacturing, sales facilities and distribution partners





throughout the world. IDT stock is traded on the NASDAQ Global Select Stock Market® under the symbol “IDTI.” Additional information about IDT is accessible at www.IDT.com. Follow IDT on Facebook, LinkedIn, Twitter, YouTube and Google+.

Forward Looking Statements
Investors are cautioned that forward-looking statements in this release, including but not limited to statements regarding demand for Company products, anticipated trends in Company sales, expenses and profits, involve a number of risks and uncertainties that could cause actual results to differ materially from current expectations. Risks include, but are not limited to, global business and economic conditions, fluctuations in product demand, manufacturing capacity and costs, inventory management, competition, pricing, patent and other intellectual property rights of third parties, timely development and introduction of new products and manufacturing processes, dependence on one or more customers for a significant portion of sales, successful integration of acquired businesses and technology, availability of capital, cash flow and other risk factors detailed in the Company’s Securities and Exchange Commission filings. The Company urges investors to review in detail the risks and uncertainties in the Company’s Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the fiscal year ended April 2, 2017. All forward-looking statements are made as of the date of this release and the Company disclaims any duty to update such statements.

Non-GAAP Reporting
To supplement its consolidated financial results presented in accordance with GAAP, IDT uses non-GAAP financial measures which are adjusted from the most directly comparable GAAP financial measures to exclude certain items, as described in detail below. Management believes that these non-GAAP financial measures reflect an additional and useful way of viewing aspects of the Company’s operations that, when viewed in conjunction with IDT’s GAAP results, provide a more comprehensive understanding of the various factors and trends affecting the Company’s business and operations. It should also be noted that IDT's non-GAAP information may be different from the non-GAAP information provided by other companies. Non-GAAP financial measures used by IDT include:
Cost of revenues;
    Gross profit;
Research and development expenses;
Selling, general and administrative expenses;
Interest and other income (expense);
Benefit from (provision for) income taxes;
Operating income;
Net income;
Diluted net income per share; and
Weighted average shares outstanding - diluted

The Company presents non-GAAP financial measures because the investor community uses non-GAAP results in its analysis and comparison of historical results and projections of the Company's future operating results. These non-GAAP results exclude acquisition-related expense, restructuring and divestiture related costs (gain), share-based compensation expense, results from discontinued operations, and certain other expenses and benefits. Management uses these non-GAAP measures to manage and assess the profitability of the business. These non-GAAP results are also consistent with the way management internally analyzes IDT's financial results.






There are limitations in using non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP financial measures. The non-GAAP financial measures supplement, and should be viewed in conjunction with, GAAP financial measures. Investors should review the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the accompanying press release.

As presented in the “Reconciliation of GAAP to Non-GAAP” tables in the accompanying press release, each of the non-GAAP financial measures excludes one or more of the following items:

Acquisition-related. Acquisition-related charges are not factored into management’s evaluation of potential acquisitions or IDT’s performance after completion of acquisitions, because they are not related to the Company’s core operating performance. Adjustments of these items provide investors with a basis to compare IDT’s performance to other companies without the variability caused by purchase accounting. Acquisition-related expenses primarily include:
Amortization of acquisition-related intangibles, which include acquired intangibles such as purchased technology, patents, customer relationships, trademarks, backlog and non-compete agreements.
Acquisition-related costs such as legal, accounting and other professional or consulting fees directly related to an acquisition.
Fair market value adjustment to acquired inventory sold.

Restructuring-related. Restructuring charges primarily relate to changes in IDT’s infrastructure in efforts to reduce costs and expenses (gains) associated with strategic divestitures and restructuring in force actions. Restructuring charges (gains) are excluded from non-GAAP financial measures because they are not considered core operating activities. Although IDT has engaged in various restructuring activities in the past, each has been a discrete event based on a unique set of business objectives. As such, management believes that it is appropriate to exclude restructuring charges (gains) from IDT’s non-GAAP financial measures as it enhances the ability of investors to compare the Company’s period-over-period operating results. Restructuring-related charges (gains) primarily include:
Severance costs directly related to a restructuring action.
Facility closure costs consist of ongoing costs associated with the exit of our leased and owned facilities.
Gain on divestiture consists of gains recognized upon the strategic sale of business units.
Assets impairments including accelerated depreciation of certain assets no longer in use.

Other adjustments. These items are excluded from non-GAAP financial measures because they are not related to the core operating activities and on-going future operating performance of IDT. Excluding this data allows investors to better compare IDT’s period-over-period performance without such expense, which IDT believes may be useful to the investor community.
Other adjustments primarily include:
Stock based compensation expense.
Compensation expense (benefit) - deferred compensation, consists of gains and losses on marketable equity securities related to our deferred compensation arrangements.





Non-cash interest expense, consists of amortization of issuance cost and accretion of discount related to the convertible notes.
Loss (gain) on deferred compensation plan securities represents the changes in the fair value of the assets in a separate trust that is invested in corporate owned life insurance under our deferred compensation plan.
Unrealized foreign currency gains and losses resulting from remeasurement of certain non-functional currency account balances.
Tax effects of non-GAAP adjustments. Non-GAAP tax calculation is based on estimated cash tax expense and reserves. The Company forecasts its annual cash tax liability and allocates the tax to each quarter in proportion to earnings for that period. This approach is designed to enhance the ability of investors to understand the impact of the Company's tax expense on its current operations, provide improved modeling accuracy, and substantially reduce fluctuations caused by GAAP to non-GAAP adjustments, which may not reflect actual cash tax expense. The one-time tax impacts of the TCJA related to non-current liabilities and deferred tax assets are not reflected in the non-GAAP tax provision.
Diluted weighted average shares non-GAAP adjustment, for purposes of calculating non-GAAP diluted net income per share, the GAAP diluted weighted average shares outstanding is adjusted to exclude the benefits of stock compensation expense attributable to future services not yet recognized in the financial statements that are treated as proceeds assumed to be used to repurchase shares under the GAAP treasury method.
###
IDT and the IDT logo are trademarks or registered trademarks of Integrated Device Technology, Inc. All other brands, product names and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners.






INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
December 31, 2017
 
October 1, 2017
 
January 1, 2017
 
December 31, 2017
 
January 1, 2017
Revenues
 
$
217,075

 
$
204,398

 
$
176,358

 
$
618,186

 
$
552,545

Cost of revenues
 
88,690

 
87,636

 
72,273

 
263,001

 
233,579

Gross profit
 
128,385

 
116,762

 
104,085

 
355,185

 
318,966

Operating expenses:
 
 
 
 
 
 
 
 
 
 
Research and development
 
49,836

 
48,742

 
38,173

 
147,027

 
129,571

Selling, general and administrative
 
40,689

 
44,485

 
32,737

 
127,116

 
108,968

Total operating expenses
 
90,525

 
93,227

 
70,910

 
274,143

 
238,539

 
 
 
 
 
 
 
 
 
 
 
Operating income
 
37,860

 
23,535

 
33,175

 
81,042

 
80,427

Interest and other expense, net
 
(5,068
)
 
(4,886
)
 
(3,810
)
 
(13,869
)
 
(8,903
)
Income from continuing operations before income taxes
 
32,792

 
18,649

 
29,365

 
67,173

 
71,524

Benefit from (provision for) income taxes
 
(101,033
)
 
31

 
4,072

 
(100,020
)
 
7,451

 
 
 
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations
 
(68,241
)
 
18,680

 
33,437

 
(32,847
)
 
78,975

 
 
 
 
 
 
 
 
 
 
 
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
Gain from divestiture
 

 

 
1,385

 

 
1,385

Provision for income taxes
 

 

 
87

 

 
87

Net income from discontinued operations:
 

 

 
1,298

 

 
1,298

 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(68,241
)
 
$
18,680

 
$
34,735

 
$
(32,847
)
 
$
80,273

 
 
 
 
 
 
 
 
 
 
 
Basic net income (loss) per share - continuing operations
 
$
(0.51
)
 
$
0.14

 
$
0.25

 
$
(0.25
)
 
$
0.59

Basic net income per share - discontinued operations
 

 

 
0.01

 

 
0.01

Basic net income (loss) per share
 
$
(0.51
)
 
$
0.14

 
$
0.26

 
$
(0.25
)
 
$
0.60

 
 
 
 
 
 
 
 
 
 
 
Diluted net income (loss) per share - continuing operations
 
$
(0.51
)
 
$
0.14

 
$
0.24

 
$
(0.25
)
 
$
0.57

Diluted net income per share - discontinued operations
 

 

 
0.01

 

 
0.01

Diluted net income (loss) per share
 
$
(0.51
)
 
$
0.14

 
$
0.25

 
$
(0.25
)
 
$
0.58

 
 
 
 
 
 
 
 
 
 
 
Weighted average shares:
 
 
 
 
 
 
 
 
 
 
Basic
 
132,689

 
133,269

 
133,846

 
133,087

 
133,987

Diluted
 
132,689

 
136,059

 
137,167

 
133,087

 
137,581







INTEGRATED DEVICE TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (a)
(Unaudited)
(In thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
December 31, 2017
 
October 1, 2017
 
January 1, 2017
 
December 31, 2017
 
January 1, 2017
GAAP net income (loss) from continuing operation
 
$
(68,241
)
 
$
18,680

 
$
33,437

 
$
(32,847
)
 
$
78,975

GAAP diluted net income (loss) per share - continuing operation
 
$
(0.51
)
 
$
0.14

 
$
0.24

 
$
(0.25
)
 
$
0.57

   Acquisition-related:
 
 
 
 
 
 
 
 
 
 
        Amortization of acquisition-related intangibles
 
9,287

 
8,963

 
5,557

 
27,126

 
16,578

        Acquisition-related costs
 

 

 

 
2,225

 
72

        Amortization of fair market value adjustment to inventory
 
1,178

 
2,011

 
757

 
7,270

 
3,672

   Restructuring-related:
 
 
 
 
 
 
 
 
 
 
        Severance costs (benefit)
 
378

 
1,637

 
(216
)
 
2,596

 
16,723

        Facility closure costs
 

 
2,542

 

 
2,614

 

        Assets impairment and other
 

 
917

 

 
2,882

 
870

   Other:
 
 
 
 
 
 
 
 
 
 
        Stock-based compensation expense
 
13,578

 
12,950

 
9,912

 
38,348

 
29,608

        Non-cash interest expense
 
3,744

 
3,695

 
3,360

 
11,331

 
9,936

Asset impairment and other
 

 

 

 

 
(652
)
        Loss from divestiture
 

 

 
710

 

 
710

       Certain unrealized foreign exchange gain
 
(360
)
 
(754
)
 

 
(2,789
)
 

       Compensation expense - deferred compensation plan
 
525

 
469

 
262

 
1,406

 
1,100

       Gain on deferred compensation plan securities
 
(518
)
 
(443
)
 
(249
)
 
(1,321
)
 
(1,058
)
        Non-GAAP tax adjustments
 
98,003

 
(2,518
)
 
(4,527
)
 
92,144

 
(8,920
)
Non-GAAP net income from continuing operation
 
$
57,574

 
$
48,149

 
$
49,003

 
$
150,985

 
$
147,614

GAAP weighted average shares - diluted
 
132,689

 
136,059

 
137,167

 
133,087

 
137,581

        Non-GAAP adjustment
 
5,714

 
2,780

 
2,006

 
5,787

 
2,168

Non-GAAP weighted average shares - diluted
 
138,403

 
138,839

 
139,173

 
138,874

 
139,749

Non-GAAP diluted net income per share - continuing operation
 
$
0.42

 
$
0.35

 
$
0.35

 
$
1.09

 
$
1.06

 
 
 
 
 
 
 
 
 
 
 
GAAP gross profit
 
$
128,385

 
$
116,762

 
$
104,085

 
$
355,185

 
$
318,966

   Acquisition-related:
 
 
 
 
 
 
 
 
 
 
        Amortization of acquisition-related intangibles
 
6,127

 
5,822

 
3,178

 
17,631

 
9,701

        Amortization of fair market value adjustment to inventory
 
1,178

 
2,011

 
757

 
7,270

 
3,672

   Restructuring-related:
 
 
 
 
 
 
 
 
 
 
        Severance costs (benefit)
 

 
30

 
(146
)
 
226

 
2,541

        Assets impairment and other
 

 

 

 

 
336

   Other:
 
 
 
 
 
 
 
 
 
 
       Compensation expense - deferred compensation plan
 
123

 
110

 
96

 
330

 
403

        Stock-based compensation expense
 
814

 
764

 
695

 
2,210

 
2,276

Non-GAAP gross profit
 
$
136,627

 
$
125,499

 
$
108,665

 
$
382,852

 
$
337,895

 
 
 
 
 
 
 
 
 
 
 





GAAP R&D expenses:
 
$
49,836

 
$
48,742

 
$
38,173

 
$
147,027

 
$
129,571

   Restructuring-related:
 
 
 
 
 
 
 
 
 
 
        Severance costs
 
18

 
(318
)
 
(225
)
 
(345
)
 
(10,634
)
        Assets impairment and other
 

 
(835
)
 

 
(2,800
)
 
(106
)
   Other:
 
 
 
 
 
 
 
 
 
 
       Compensation expense - deferred compensation plan
 
(268
)
 
(239
)
 
(102
)
 
(717
)
 
(429
)
        Stock-based compensation expense
 
(6,816
)
 
(6,094
)
 
(4,342
)
 
(18,873
)
 
(11,841
)
Non-GAAP R&D expenses
 
$
42,770

 
$
41,256

 
$
33,504


$
124,292

 
$
106,561

 
 
 
 
 
 
 
 
 
 
 
GAAP SG&A expenses:
 
$
40,689

 
$
44,485

 
$
32,737

 
$
127,116

 
$
108,968

   Acquisition-related:
 
 
 
 
 
 
 
 
 
 
        Amortization of acquisition-related intangibles
 
(3,160
)
 
(3,141
)
 
(2,379
)
 
(9,495
)
 
(6,877
)
        Acquisition-related fees
 

 

 

 
(2,225
)
 
(72
)
   Restructuring-related:
 
 
 
 
 
 
 
 
 
 
        Severance costs (benefit)
 
(396
)
 
(1,289
)
 
295

 
(2,025
)
 
(3,548
)
        Facility closure costs
 

 
(2,542
)
 

 
(2,614
)
 

        Assets impairment and other
 

 
(82
)
 

 
(82
)
 
(428
)
   Other:
 
 
 
 
 
 
 
 
 
 
       Compensation expense - deferred compensation plan
 
(134
)
 
(120
)
 
(64
)
 
(359
)
 
(268
)
        Stock-based compensation expense
 
(5,948
)
 
(6,092
)
 
(4,875
)
 
(17,265
)
 
(15,491
)
Non-GAAP SG&A expenses
 
$
31,051

 
$
31,219

 
$
25,714


$
93,051

 
$
82,284

 
 
 
 
 
 
 
 
 
 
 
GAAP interest and other expense, net
 
$
(5,068
)
 
$
(4,886
)
 
$
(3,810
)
 
$
(13,869
)
 
$
(8,903
)
        Non-cash interest expense
 
3,744

 
3,695

 
3,360

 
11,331

 
9,936

        Assets impairment and other
 

 

 

 

 
(652
)
        Loss from divestiture
 

 

 
710

 

 
710

       Gain on deferred compensation plan securities
 
(518
)
 
(443
)
 
(249
)
 
(1,321
)
 
(1,058
)
       Certain unrealized foreign exchange gain
 
(360
)
 
(754
)
 

 
(2,789
)
 

Non-GAAP interest and other income (expense), net
 
$
(2,202
)
 
$
(2,388
)
 
$
11


$
(6,648
)
 
$
33

 
 
 
 
 
 
 
 
 
 
 
GAAP benefit from (provision for) income taxes - continuing operation
 
$
(101,033
)
 
$
31

 
$
4,072

 
$
(100,020
)
 
$
7,451

        Non-GAAP tax adjustments
 
(98,003
)
 
2,518

 
4,527

 
(92,144
)
 
8,920

Non-GAAP provision for income taxes - continuing operation
 
$
(3,030
)
 
$
(2,487
)
 
$
(455
)

$
(7,876
)
 
$
(1,469
)
(a) Refer to the accompanying “Notes to Non-GAAP Financial Measures” for a detailed discussion of Management’s use of non-GAAP financial measures.






INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
 
 
 
 
 
 
 
 
December 31,
 
April 2,
(In thousands)
 
 
2017
 
2017
ASSETS
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
 
 
$
132,800

 
$
214,554

Short-term investments
 
 
264,066

 
191,492

Accounts receivable, net
 
 
109,701

 
89,312

Inventories
 
 
63,892

 
52,288

Prepayments and other current assets
 
 
14,590

 
13,054

Total current assets
 
 
585,049

 
560,700

Property, plant and equipment, net
 
 
86,636

 
80,961

Goodwill
 
 
420,117

 
306,925

Intangible assets, net
 
 
196,977

 
108,818

Deferred tax assets
 
 
18,390

 
85,831

Other assets
 
 
61,668

 
40,399

TOTAL ASSETS
 
 
$
1,368,837

 
$
1,183,634

 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable
 
 
$
41,950

 
$
42,020

Accrued compensation and related expenses
 
 
34,055

 
26,624

Deferred income on shipments to distributors
 
 
3,521

 
1,985

Current portion of bank loan
 
 
2,000

 

Other accrued liabilities
 
 
22,523

 
20,205

Total current liabilities
 
 
104,049

 
90,834

Deferred tax liabilities
 
 
11,046

 
13,835

Long-term income tax payable
 
 
31,812

 
867

Convertible notes
 
 
295,983

 
285,541

Long-term bank loan, net
 
 
191,368

 

Other long-term liabilities
 
 
26,288

 
18,894

Total liabilities
 
 
660,546

 
409,971

Stockholders' equity
 
 
708,291

 
773,663

 
 
 
 
 
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
$
1,368,837

 
$
1,183,634