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) April 30, 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 April 30, 2018, Integrated Device Technology, Inc. (the “Company”) announced its results of operations and financial condition as of and for the three and twelve months ended April 1, 2018, 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 April 30, 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 April 30, 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:
April 30, 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 April 30, 2018
 




Exhibit


Exhibit 99.1
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12217497&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 Q4 AND FULL YEAR FINANCIAL RESULTS
Q4 FY18 Revenue of $224.6M, FY18 Revenues of $842.8M
Q4 FY18 GAAP EPS of $0.15, FY18 GAAP loss per share of $0.09
Q4 FY18 Non-GAAP EPS of $0.46, FY18 Non-GAAP EPS of $1.55

SAN JOSE, Calif., April 30, 2018 - Integrated Device Technology, Inc. (IDT®) (NASDAQ: IDTI) today announced results for the fourth quarter and full fiscal year ended April 1, 2018.

Fourth quarter fiscal 2018 revenues totaled $224.6 million, up 3 percent sequentially, and up 28 percent from the year ago period. Strength in the quarter was driven primarily by increased demand for products in the automotive/industrial and consumer end markets.

“We exceeded our original $830 million FY2018 revenue target, delivering revenues of $842.8 million (up 15.7% over FY2017). We also delivered on our Non-GAAP operating margin model target of 30% for the quarter, up from 27.2% in the year ago period. For FY2019, we expect continued diversified revenue growth, coupled with further year over year margin expansion, “said Greg Waters, President and Chief Executive Officer.

Recent Business Highlights - Datacenter/HPC & Communications Infrastructure
IDT announced the availability of its first DDR5 Registered Clock Driver (RCD), the IDT® 5RCD0144H RCD, which pairs seamlessly with the IDT® P8900 PMIC to form the first complete chipset for the early evaluation of DDR5 server memory modules. Providing the first chipset capable of comprehensively evaluating interconnect and power delivery at the system and module level allows IDT’s ecosystem partners to get a jumpstart on validation of silicon, hardware and software development efforts. Our platform solution enables DDR5 memory to scale up to twice the maximum speed and effective bandwidth of DDR4 and promises to be the most significant evolution in the memory subsystem in nearly two decades.
At the 2018 Optical Forum Conference (OFC), IDT displayed multiple new analog/mixed signal line-driver, transimpedance amplifier (TIA) and clock-data recovery (CDR) timing devices for next generation 200G/400G intra and inter datacenter applications and 400G/600G metro/long distance telecom applications.





At OFC 2018, IDT introduced the IDT® GX72170 25G linear driver for 5G wireless network fiber backhaul applications. The demand for 25G and 50G fiber-based backhaul transceivers in the next 5 years is expected to have 45% CAGR or more, according to the latest LightCounting report.

Recent Business Highlights - Consumer
IDTI announced that its latest wireless charging transmitter and receiver chipset is used in the Xiaomi Mobile flagship MI MIX 2S smartphone and associated wireless charging pad. The Xiaomi smartphone implements the Qi standard Baseline Power Profile (BPP) with a proprietary operations mode for a faster wireless charging experience supported by IDT.
IDTI announced that its latest wireless charging chipset is being used as the receiver system-on-chip (SoC) in Samsung’s flagship Galaxy S9 and Galaxy S9+ Android smartphones as well as the transmitter application in the bundled charging pad.
IDT announced that its latest wireless charging chipset is used in HMD Global’s new premium smartphone, the Nokia 8 Sirocco, which was launched at Mobile World Congress in Barcelona. Using the IDT wireless charging chipset, the Nokia 8 Sirocco supports the popular Qi wireless charging standard, which allows consumers to quickly and easily charge their smartphones wirelessly without the need for cumbersome cables.

Recent Business Highlights - Auto and Industrial
IDT’s Auto and Industrial business segment continues to experience healthy growth and design win momentum. New product releases in sensor signal conditioners, position sensors, and fully integrated sensor platforms are delivering growth and new design wins. These fully integrated sensor platforms include the sensor, sensor signal processing IC, software/algorithm, calibration with high-volume assembly/test capabilities.
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 full fiscal 2018 was $842.8 million versus $728.2 million for full fiscal 2017. GAAP net loss for fiscal 2018 was $12.1 million or $0.09 per diluted share (including a GAAP charge of $114.2 million for the estimated impacts of the Tax Cuts and Job Act (“TCJA”)) compared with fiscal 2017 GAAP net income of $109.2 million or $0.79 per diluted share. Non-GAAP net income for full fiscal 2018 was $214.4 million or $1.55 per diluted share versus $195.7 million for full fiscal 2017 or $1.40 per diluted share.
Revenue for the fiscal fourth quarter of 2018 was $224.6 million. This compared with $217.1 million reported last quarter, and $175.7 million reported in the same period one year ago.
GAAP net income for the fiscal fourth quarter of 2018 was $20.7 million, or $0.15 per diluted share versus GAAP net loss for the fiscal third quarter of 2018 of $68.2 million, or a loss of $0.51 per diluted share (including a $101.9 million charge for the estimated impacts of TCJA) and GAAP net income of $30.2 million or $0.22 per diluted share in the same period one year ago. Fiscal fourth quarter GAAP results include $15.1 million in restructuring-related charges,





$12.4 million in stock-based compensation; $10.1 million in acquisition-related charges, and $3.8 million in non-cash interest expense.
Non-GAAP net income for the fiscal fourth quarter of 2018 was $63.4 million or $0.46 per diluted share compared with non-GAAP net income of $57.6 million or $0.42 per diluted share last quarter, and non-GAAP net income of $48.2 million or $0.35 per diluted share reported in the same period one year ago.
GAAP gross profit for the fiscal fourth quarter of 2018 was $127.1 million, or 56.6 percent, compared with GAAP gross profit of $128.4 million or 59.1 percent last quarter, and $101.7 million, or 57.9 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal fourth quarter of 2018 was $140.5 million, or 62.6 percent, compared with non-GAAP gross profit of $136.6 million, or 62.9 percent last quarter, and $106.1 million, or 60.4 percent, reported in the same period one year ago.
GAAP R&D expense for the fiscal fourth quarter of 2018 was $55.7 million, compared with GAAP R&D expense of $49.8 million last quarter, and $35.5 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal fourth quarter of 2018 was $42.2 million, compared with non-GAAP R&D expense of $42.8 million last quarter, and $31.0 million in the same period one year ago.
GAAP SG&A expense for the fiscal fourth quarter of 2018 was $41.5 million compared with GAAP SG&A expense of $40.7 million last quarter, and $36.2 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal fourth quarter of 2018 was $30.9 million, compared with non-GAAP SG&A expense of $31.1 million last quarter, and $27.2 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 April 30, 2018 by calling 844-308-4493. The access code is 7085488. 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 April 30, 2018. The webcast replay will be available after 4:30 p.m. Pacific Time on April 30, 2018 for one week.
IDT’s next regularly scheduled Quiet Period will begin June 18, 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 first quarter fiscal 2019 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 (loss);
Diluted net income (loss) 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 and amortization of certain assets no longer in use or related to discontinued product lines.

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 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
 
Twelve Months Ended
 
 
Apr. 1, 2018
 
Dec 31, 2017
 
Apr. 2, 2017
 
Apr. 1, 2018
 
Apr. 2, 2017
Revenues
 
$
224,578

 
$
217,075

 
$
175,698

 
$
842,764

 
$
728,243

Cost of revenues
 
97,478

 
88,690

 
74,026

 
360,479

 
307,605

Gross profit
 
127,100

 
128,385

 
101,672

 
482,285

 
420,638

Operating expenses:
 
 
 
 
 
 
 
 
 
 
Research and development
 
55,694

 
49,836

 
35,533

 
202,721

 
165,104

Selling, general and administrative
 
41,532

 
40,689

 
36,225

 
168,648

 
145,193

Total operating expenses
 
97,226

 
90,525

 
71,758

 
371,369

 
310,297

 
 
 
 
 
 
 
 
 
 
 
Operating income
 
29,874

 
37,860

 
29,914

 
110,916

 
110,341

Interest and other expense, net
 
(4,875
)
 
(5,068
)
 
(2,153
)
 
(18,744
)
 
(11,056
)
Income from continuing operations before income taxes
 
24,999

 
32,792

 
27,761

 
92,172

 
99,285

Benefit from (provision for) income taxes
 
(4,288
)
 
(101,033
)
 
2,448

 
(104,308
)
 
9,899

 
 
 
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations
 
20,711

 
(68,241
)
 
30,209

 
(12,136
)
 
109,184

 
 
 
 
 
 
 
 
 
 
 
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
Gain from divestiture
 

 

 

 

 
1,385

Provision for income taxes
 

 

 

 

 
87

Net income from discontinued operations
 

 

 

 

 
1,298

 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
20,711

 
$
(68,241
)
 
$
30,209

 
$
(12,136
)
 
$
110,482

 
 
 
 
 
 
 
 
 
 
 
Basic net income (loss) per share - continuing operations
 
$
0.16

 
$
(0.51
)
 
$
0.23

 
$
(0.09
)
 
$
0.82

Basic net income per share - discontinued operations
 

 

 

 

 
0.01

Basic net income (loss) per share
 
$
0.16

 
$
(0.51
)
 
$
0.23

 
$
(0.09
)
 
$
0.83

 
 
 
 
 
 
 
 
 
 
 
Diluted net income (loss) per share - continuing operations
 
$
0.15

 
$
(0.51
)
 
$
0.22

 
$
(0.09
)
 
$
0.79

Diluted net income per share - discontinued operations
 

 

 

 

 
0.01

Diluted net income (loss) per share
 
$
0.15

 
$
(0.51
)
 
$
0.22

 
$
(0.09
)
 
$
0.80

 
 
 
 
 
 
 
 
 
 
 
Weighted average shares:
 
 
 
 
 
 
 
 
 
 
Basic
 
131,341

 
132,689

 
133,309

 
132,651

 
133,817

Diluted
 
135,016

 
132,689

 
136,903

 
132,651

 
137,440







INTEGRATED DEVICE TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (a)
(Unaudited)
(In thousands, except per share data)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Twelve Months Ended
 
Apr. 1, 2018
 
Dec 31, 2017
 
Apr. 2, 2017
 
Apr. 1, 2018
 
Apr. 2, 2017
GAAP net income (loss) from continuing operations
$
20,711

 
$
(68,241
)
 
$
30,209

 
$
(12,136
)
 
$
109,184

GAAP diluted net income (loss) per share - continuing operations
$
0.15

 
$
(0.51
)
 
$
0.22

 
$
(0.09
)
 
$
0.79

   Acquisition-related:
 
 
 
 
 
 
 
 
 
     Amortization of acquisition-related intangibles
9,326

 
9,287

 
4,782

 
36,452

 
21,360

     Acquisition-related costs

 

 
2,223

 
2,225

 
2,295

     Amortization of fair market value adjustment to inventory
753

 
1,178

 
407

 
8,023

 
4,079

   Restructuring-related:
 
 
 
 
 
 
 
 
 
     Severance costs (benefit)
4,953

 
378

 
(387
)
 
7,549

 
16,139

     Facility closure costs
299

 

 

 
2,913

 
197

     Assets impairment and other
9,862

 

 
156

 
12,744

 
1,026

   Other:
 
 
 
 
 
 
 
 
 
     Stock-based compensation expense
12,436

 
13,578

 
10,266

 
50,784

 
39,874

     Non-cash interest expense
3,792

 
3,744

 
3,393

 
15,123

 
13,329

Asset impairment and other
(184
)
 

 

 
(184
)
 
(652
)
     Loss from divestiture

 

 

 

 
710

     Certain unrealized foreign exchange gain
(794
)
 
(360
)
 

 
(3,583
)
 

     Compensation expense (benefit) - deferred compensation plan
(128
)
 
525

 
486

 
1,278

 
1,586

     Loss (gain) on deferred compensation plan securities
158

 
(518
)
 
(474
)
 
(1,163
)
 
(1,532
)
     Non-GAAP tax adjustments
2,183

 
98,003

 
(2,942
)
 
94,327

 
(11,862
)
Non-GAAP net income from continuing operations
$
63,367

 
$
57,574

 
$
48,119

 
$
214,352

 
$
195,733

GAAP weighted average shares - diluted
135,016

 
132,689

 
136,903

 
132,651

 
137,440

     Non-GAAP adjustment
1,773

 
5,714

 
1,596

 
5,675

 
1,976

Non-GAAP weighted average shares - diluted
136,789

 
138,403

 
138,499

 
138,326

 
139,416

Non-GAAP diluted net income per share - continuing operations
$
0.46

 
$
0.42

 
$
0.35

 
$
1.55

 
$
1.40

 
 
 
 
 
 
 
 
 
 
GAAP gross profit
$
127,100

 
$
128,385

 
$
101,672

 
$
482,285

 
$
420,638

   Acquisition-related:
 
 
 
 
 
 
 
 
 
     Amortization of acquisition-related intangibles
6,264

 
6,127

 
3,116

 
23,895

 
12,817

     Amortization of fair market value adjustment to inventory
753

 
1,178

 
407

 
8,023

 
4,079

   Restructuring-related:
 
 
 
 
 
 
 
 
 
     Severance costs (benefit)
164

 

 
(36
)
 
390

 
2,505

     Assets impairment and other
5,460

 

 
156

 
5,460

 
492

   Other:
 
 
 
 
 
 
 
 
 
     Compensation expense (benefit) - deferred compensation plan
(29
)
 
123

 
114

 
301

 
517

     Stock-based compensation expense
830

 
814

 
660

 
3,040

 
2,936

Non-GAAP gross profit
$
140,542

 
$
136,627

 
$
106,089

 
$
523,394

 
$
443,984

 
 
 
 
 
 
 
 
 
 





GAAP R&D expenses:
$
55,694

 
$
49,836

 
$
35,533

 
$
202,721

 
$
165,104

   Restructuring-related:
 
 
 
 
 
 
 
 
 
     Severance benefit (costs)
(3,733
)
 
18

 
(44
)
 
(4,078
)
 
(10,531
)
     Facility closure costs

 

 

 

 
(147
)
     Assets impairment and other
(4,402
)
 

 

 
(7,202
)
 
(106
)
   Other:
 
 
 
 
 
 
 
 
 
     Compensation benefit (expense) - deferred compensation plan
66

 
(268
)
 
(248
)
 
(651
)
 
(677
)
     Stock-based compensation expense
(5,390
)
 
(6,816
)
 
(4,226
)
 
(24,263
)
 
(16,067
)
Non-GAAP R&D expenses
$
42,235

 
$
42,770

 
$
31,015


$
166,527

 
$
137,576

 
 
 
 
 
 
 
 
 
 
GAAP SG&A expenses:
$
41,532

 
$
40,689

 
$
36,225

 
$
168,648

 
$
145,193

   Acquisition-related:
 
 
 
 
 
 
 
 
 
     Amortization of acquisition-related intangibles
(3,062
)
 
(3,160
)
 
(1,666
)
 
(12,557
)
 
(8,543
)
     Acquisition-related costs

 

 
(2,223
)
 
(2,225
)
 
(2,295
)
   Restructuring-related:
 
 
 
 
 
 
 
 
 
     Severance benefit (costs)
(1,056
)
 
(396
)
 
395

 
(3,081
)
 
(3,103
)
     Facility closure costs
(299
)
 

 

 
(2,913
)
 
(50
)
     Assets impairment and other

 

 

 
(82
)
 
(428
)
   Other:
 
 
 
 
 
 
 
 
 
     Compensation benefit (expense) - deferred compensation plan
33

 
(134
)
 
(124
)
 
(326
)
 
(392
)
     Stock-based compensation expense
(6,216
)
 
(5,948
)
 
(5,380
)
 
(23,481
)
 
(20,871
)
Non-GAAP SG&A expenses
$
30,932

 
$
31,051

 
$
27,227


$
123,983

 
$
109,511

 
 
 
 
 
 
 
 
 
 
GAAP interest and other expense, net
$
(4,875
)
 
$
(5,068
)
 
$
(2,153
)
 
$
(18,744
)
 
$
(11,056
)
     Non-cash interest expense
3,792

 
3,744

 
3,393

 
15,123

 
13,329

     Assets impairment and other
(184
)
 

 

 
(184
)
 
(652
)
     Loss from divestiture

 

 

 

 
710

     Loss (gain) on deferred compensation plan securities
158

 
(518
)
 
(474
)
 
(1,163
)
 
(1,532
)
     Certain unrealized foreign exchange gain
(794
)
 
(360
)
 

 
(3,583
)
 

Non-GAAP interest and other income (expense), net
$
(1,903
)
 
$
(2,202
)
 
$
766


$
(8,551
)
 
$
799

 
 
 
 
 
 
 
 
 
 
GAAP benefit from (provision for) income taxes - continuing operations
$
(4,288
)
 
$
(101,033
)
 
$
2,448

 
$
(104,308
)
 
$
9,899

     Non-GAAP tax adjustments
(2,183
)
 
(98,003
)
 
2,942

 
(94,327
)
 
11,862

Non-GAAP provision for income taxes - continuing operations
$
(2,105
)
 
$
(3,030
)
 
$
(494
)

$
(9,981
)
 
$
(1,963
)
(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)
 
 
 
 
 
 
 
 
 
Apr.1,
 
Apr. 2,
(In thousands)
 
 
2018
 
2017
ASSETS
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
 
 
$
136,873

 
$
214,554

Short-term investments
 
 
222,026

 
191,492

Accounts receivable, net
 
 
108,779

 
89,312

Inventories
 
 
68,702

 
52,288

Prepayments and other current assets
 
 
12,734

 
13,054

Total current assets
 
 
549,114

 
560,700

Property, plant and equipment, net
 
 
86,845

 
80,961

Goodwill
 
 
420,117

 
306,925

Intangible assets, net
 
 
180,781

 
108,818

Deferred tax assets
 
 
11,764

 
85,831

Other assets
 
 
61,910

 
40,399

TOTAL ASSETS
 
 
$
1,310,531

 
$
1,183,634

 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable
 
 
$
41,070

 
$
42,020

Accrued compensation and related expenses
 
 
44,002

 
26,624

Deferred income on shipments to distributors
 
 

 
1,985

Current portion of bank loan
 
 
2,000

 

Other accrued liabilities
 
 
26,524

 
20,205

Total current liabilities
 
 
113,596

 
90,834

Deferred tax liabilities
 
 
10,221

 
13,835

Long-term income tax payable
 
 
25,034

 
867

Convertible notes
 
 
299,551

 
285,541

Long-term bank loan, net
 
 
191,073

 

Other long-term liabilities
 
 
25,684

 
18,894

Total liabilities
 
 
665,159

 
409,971

Stockholders' equity
 
 
645,372

 
773,663

 
 
 
 
 
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
$
1,310,531

 
$
1,183,634