July 29, 2008

IDT Reports Fiscal First Quarter 2009 Results

Six Percent Sequential Increase in Revenue Driven by Improving

Trends in Computing, Communications and Consumer End Markets

SAN JOSE, Calif.--(BUSINESS WIRE)--July 29, 2008--IDT® (Integrated Device Technology, Inc.) (NASDAQ:IDTI), a leading provider of essential mixed signal semiconductor solutions that enrich the digital media experience, today announced results for the fiscal first quarter of 2009 ended June 29, 2008.

"Sales into each of our end markets increased sequentially, allowing us to deliver strong results for the first fiscal quarter of 2009," said Ted Tewksbury, president and CEO of IDT. "Solid growth in our computing end market was highlighted by increased sales of low power advanced memory buffer (AMB) devices and PCI Express®-based switches, while significant increases in search accelerator sales and continued strength in communications clocks contributed to growth in the communications end market. In addition, the consumer end market grew sequentially driven by healthy demand in our gaming sub-segment. We've started this fiscal year firing on all cylinders and anticipate that momentum in our core businesses, in addition to new product ramps, will fuel continued growth."

The following highlights the Company's financial performance on both a GAAP and non-GAAP basis. The GAAP results include certain costs, charges, gains and losses in accordance with GAAP which are excluded from non-GAAP results based on management's determination that they are not directly reflective of on-going operations. 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 first quarter of 2009 was $188.2 million, compared to $199.0 million reported in the same period one year ago.

-- GAAP net income for the fiscal first quarter of 2009 was $9.2 million or $0.05 per diluted share, compared to a GAAP net loss of $1.1 million or approximately $0.01 per diluted share in same period one year ago. Fiscal first quarter 2009 GAAP results include $20.9 million in amortization of intangibles, $8.1 million of stock-based compensation and $0.9 million in restructuring related costs.

-- Non-GAAP net income for the fiscal first quarter of 2009 was $39.2 million or $0.23 per diluted share, compared to non-GAAP net income of $44.1 million or $0.22 per diluted share reported in the same period one year ago.

-- GAAP gross profit for the fiscal first quarter of 2009 was $84.5 million, compared to GAAP gross profit of $84.9 million in the same period one year ago. Non-GAAP gross profit for the fiscal first quarter of 2009 was $100.7 million, compared to non-GAAP gross profit of $102.4 million reported in the same period one year ago.

-- GAAP R&D expense for the fiscal first quarter of 2009 was $43.6 million, compared with GAAP R&D expense of $44.7 million in the same period one year ago. Non-GAAP R&D expense for the fiscal first quarter of 2009 was $38.4 million, compared to non-GAAP R&D expense of $37.8 million in the same period one year ago.



-- GAAP SG&A expense for the fiscal first quarter of 2009 was $33.0 million, compared to GAAP SG&A expense of $45.1 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal first quarter of 2009 was $24.5 million, compared to non-GAAP SG&A expense of $25.1 million in the same period one year ago.

Select Fiscal First Quarter 2009 Highlights

-- NEC Corporation selects IDT PCI Express switching products for use in its high-end, integrated-enterprise servers

-- Fujitsu selects IDT application-optimized search accelerator for its next generation packet optical networking platform

-- ZTE adopts IDT central packet switch (CPS) solution for its WCDMA Node-B/baseband card

Webcast and Conference Call Information

Investors can listen to a live or replay webcast of the Company's quarterly financial conference call at http://www.IDT.com. The live webcast will begin at 1:30 p.m. Pacific time on July 29, 2008. The webcast replay will be available after 5:00 p.m. Pacific time on July 29, 2008.

Investors can also listen to the live call at 1:30 p.m. Pacific time on July 29, 2008 by calling (866) 269-9612 or (612) 332-0932. The conference call replay will be available after 5:00 p.m. Pacific time on July 29, 2008 through 11:59 p.m. Pacific time on August 12, 2008 at (800) 475-6701 or (320) 365-3844. The access code is 953722.

About IDT

With the goal of continuously improving the digital media experience, IDT integrates its fundamental semiconductor heritage with essential innovation, developing and delivering low-power, mixed signal solutions that solve customer problems. Headquartered in San Jose, Calif., IDT has design, manufacturing and sales facilities 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.

Forward Looking Statements

Investors are cautioned that forward-looking statements in this release 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 supply 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 March 30, 2008.

IDT and the IDT logo are 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
----------------------------------------------------------------------
                                         June 29,  March 30,  July 1,
                                           2008      2008      2007
                                         --------- --------- ---------

Revenues                                 $188,208  $177,096  $199,016
Cost of revenues                          103,749    99,166   114,128
                                         --------- --------- ---------
Gross profit                               84,459    77,930    84,888
                                         --------- --------- ---------
Operating expenses:
  Research and development                 43,619    38,408    44,699
  Selling, general and administrative      32,965    34,051    45,114
                                         --------- --------- ---------
Total operating expenses                   76,584    72,459    89,813
                                         --------- --------- ---------
Operating income (loss)                     7,875     5,471    (4,925)
Interest expense                              (18)      (13)      (41)
Interest income and other, net              1,465     3,075     5,852
                                         --------- --------- ---------
Income before income taxes                  9,322     8,533       886
Provision (benefit) for income taxes          168    (8,566)    1,982
                                         --------- --------- ---------

Net income (loss)                        $  9,154  $ 17,099  $ (1,096)
                                         ========= ========= =========

Net income (loss) per share:
Basic                                    $   0.05  $   0.10  $  (0.01)
Diluted                                  $   0.05  $   0.10  $  (0.01)
Weighted average shares:
Basic                                     171,080   178,132   193,254
Diluted                                   171,366   178,190   193,254
                  INTEGRATED DEVICE TECHNOLOGY, INC.
                  RECONCILIATION OF GAAP TO NON-GAAP
                             (Unaudited)
(In thousands)
                                              Three Months Ended
----------------------------------------------------------------------
                                         June 29,  March 30,  July 1,
                                           2008      2008      2007
                                         --------- --------- ---------

GAAP Net Income (Loss)                   $  9,154  $ 17,099  $ (1,096)
                                         ========= ========= =========
GAAP Diluted Income (Loss) Per Share     $   0.05  $   0.10  $  (0.01)
                                         ========= ========= =========
  Acquisition Related:
    Amortization of acquisition related
     intangibles                           20,860    24,485    31,075
    Acquisition related costs (1)              (3)      244     1,108
  Restructuring Related:
    Severance and retention costs             834       522        (9)
    Assembly transition costs (2)               -         -       275
    Facility closure costs (3)                 76       106       151
  Other:
    Acquisition related interest income
     (4)                                        -      (781)        -
    Stock-based compensation expense        8,129     8,221    11,830
    Tax effects of Non-GAAP adjustments
     (5)                                      124    (7,216)      801
                                         --------- --------- ---------
Non-GAAP Net Income                      $ 39,174  $ 42,680  $ 44,135
                                         ========= ========= =========
Non-GAAP Diluted Earnings Per Share      $   0.23  $   0.24  $   0.22
                                         ========= ========= =========
Weighted average shares:
Basic                                     171,080   178,132   193,254
Diluted                                   171,366   178,190   197,898

GAAP gross profit                          84,459    77,930    84,888
                                         --------- --------- ---------
  Acquisition Related:
    Amortization of acquisition related
     intangibles                           14,771    15,522    15,630
    Acquisition related costs (1)               -       139       453
  Restructuring Related:
    Severance and retention costs             656        15        (9)
    Assembly transition costs (2)               -         -       275
    Facility closure costs (3)                 25        64        92
  Other:
    Stock-based compensation expense          786       748     1,053
                                         --------- --------- ---------
Non-GAAP gross profit                     100,697    94,418   102,382
                                         --------- --------- ---------

GAAP R&D Expenses:                         43,619    38,408    44,699
                                         --------- --------- ---------
  Acquisition Related:
    Amortization of acquisition related
     intangibles                              (19)      (19)      (62)
    Acquisition related costs (1)               2       (56)      (96)
  Restructuring Related:
    Severance and retention costs              (7)     (468)        -
    Facility closure costs (3)                (37)      (28)      (41)
  Other:
    Stock-based compensation expense       (5,152)   (4,791)   (6,731)
                                         --------- --------- ---------
Non-GAAP R&D Expenses                      38,406    33,046    37,769
                                         --------- --------- ---------

GAAP SG&A Expenses:                        32,965    34,051    45,114
                                         --------- --------- ---------
  Acquisition Related:
    Amortization of acquisition related
     intangibles                           (6,070)   (8,944)  (15,383)
    Acquisition related costs (1)               1       (50)     (559)
  Restructuring Related:
    Severance and retention costs            (171)      (38)        -
    Facility closure costs (3)                (14)      (14)      (18)
  Other:
    Stock-based compensation expense       (2,191)   (2,682)   (4,046)
                                         --------- --------- ---------
Non-GAAP SG&A Expenses                     24,520    22,323    25,108
                                         --------- --------- ---------

GAAP Interest income and other, net         1,447     3,062     5,811
                                         --------- --------- ---------
    Acquisition related interest income
     (4)                                        -      (781)        -
Non-GAAP Interest income and other, net     1,447     2,281     5,811
                                         --------- --------- ---------

GAAP Provision (benefit) for Income
 Taxes                                        168    (8,566)    1,982
                                         --------- --------- ---------
    Tax effects of Non-GAAP adjustments
     (5)                                     (124)    7,216      (801)
Non-GAAP Provision (benefit) for Income
 Taxes                                         44    (1,350)    1,181
                                         --------- --------- ---------

(1) Consists of costs incurred in connection with merger and
 acquisition-related activities, including legal and accounting fees.
 Also includes costs associated with our merger with ICS, such as
 additional depreciation resulting from purchase accounting and costs
 associated with the exit of previously leased facilities.

(2) Consists of the costs incurred as the Company transitioned its
 assembly operations in Malaysia to a third-party.

(3) Consists of ongoing costs associated with the exit of our leased
 facilities.

(4) Consists of interest income from the tax settlement with IRS
 related to ICS pre-acquisition tax returns.

(5) Consists of the tax effects of acquisition-related non-GAAP
 adjustments. Q4 2008 includes the impact of adjustments to our tax
 liabilities as result of extension of the pioneer tax status in
 Singapore.


                  INTEGRATED DEVICE TECHNOLOGY, INC.
                CONDENSED CONSOLIDATED BALANCE SHEETS
                             (Unaudited)

                                                  June 29,  March 30,
(In thousands)                                      2008       2008
----------------------------------------------------------------------

ASSETS
Current assets:
Cash and cash equivalents                        $  139,398 $  131,986
Short-term investments                              127,826    107,205
Accounts receivable, net                             82,743     81,675
Inventories                                          79,195     79,954
Deferred Taxes                                        4,853      4,853
Prepaid and other current assets                     18,641     26,081
                                                 ---------- ----------
Total current assets                                452,656    431,754

Property, plant and equipment, net                   78,538     81,652
Goodwill                                          1,027,395  1,027,438
Acquisition-related intangibles                     183,630    204,489
Other assets                                         34,402     36,504
                                                 ---------- ----------
TOTAL ASSETS                                     $1,776,621 $1,781,837
                                                 ========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                                 $   44,405 $   48,352
Accrued compensation and related expenses            21,228     26,621
Deferred income on shipments to distributors         22,685     24,312
Income taxes payable                                      -        150
Other accrued liabilities                            20,828     14,865
                                                 ---------- ----------
Total current liabilities                           109,146    114,300

Deferred tax liabilities                              7,873      7,678
Long term income taxes payable                       20,674     20,673
Other long term obligations                          18,573     18,364
                                                 ---------- ----------
Total liabilities                                   156,266    161,015

Stockholders' equity                              1,620,355  1,620,822
                                                 ---------- ----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $1,776,621 $1,781,837
                                                 ========== ==========

CONTACT: IDT
Financial Contact:
Mike Knapp, 408-284-6515
Investor Relations
mike.knapp@idt.com
Press Contact:
Chad Taggard, 408-284-8200
Worldwide Marketing
chad.taggard@idt.com

SOURCE: Integrated Device Technology, Inc.


Close window | Back to top


Copyright 2017 Integrated Device Technology, Inc.