IDT Returns to Profitability in Fourth Quarter Fiscal Year 1999

Press Contacts
Financial Contacts

News Tuesday April 20, 1999 Company Press Release IDT Returns to Profitability in Fourth Quarter Fiscal Year 1999 Press Contacts Financial Contacts SANTA CLARA, Calif., April 20, 1999 – IDT (Nasdaq: IDTI) today announced results for the fourth quarter and fiscal year ended March 28, 1999. The Company reported fourth quarter net income of $8.0 million, or $0.10 per fully diluted share, on revenues of $139.4 million. Included in fourth quarter net income are non-recurring net benefits totaling approximately $5.0 million, relating primarily to the resolution of certain intellectual property disputes and litigation. Revenues was were up 2.7 percent compared against the $135.7 million in the immediately preceding quarter, but down 7.2 percent from the $150.2 million of in the fourth quarter one year ago. Earnings were up compared with the $4.6 million loss of the third quarter and up from the $1.4 million profit from in the fourth fiscal quarter one year ago. For fiscal year 1999, revenue was $540.2 million, down 8.0 percent from the $587.1 million recorded in fiscal year 1998. Excluding charges, the Company recorded a net loss of $41.2 million for fiscal year 1999, or $0.50 per share, compared with a fiscal year 1998 profit of $8.2 million, or $0.10 per share. "Our return to profitability is a result of successfully implementing the key actions we announced in our restructuring plan last summer," said Len Perham, IDT’s president and chief executive officer. "While pleased that our restructuring has led to better financial performance, the Company is looking forward to further improvement in its fiscal year 2000, as the industry continues to strengthen and IDT’s new products gain market acceptance." IDT expects the acquisition of Quality Semiconductor, Inc. (QSI) will close during the first quarter of IDT’s fiscal year 2000. The acquisition of QSI’s products and technology, especially in the area of interface logic and clock management devices, adds to IDT’s substantial portfolio of new products and augments IDT’s opportunity for continued revenue growth. Sales of the Company’s communications and SRAM products grew from the third quarter, while revenue for high-performance logic was slightly down. Sales of the Company's microprocessors were lower in the fourth quarter due primarily to lower sales of WinChip™ microprocessor units, which declined from the traditionally strong holiday quarter. The Company’s order backlog grew sequentially for the second consecutive quarter and bookings exceeded billings. The overall average selling price for the Company’s products remained flat. "In fiscal 1999, IDT made significant strides to develop and enhance products for the growing communications markets," said Dave Côté, IDT’s vice president of marketing. "We revitalized our product offerings with many new introductions including the SuperSync™ II FIFO family, the RC32364™ 32-bit microprocessor and the new SWITCHStAR™ support devices. IDT’s market leadership was reinforced with products like our ZBT® memories, the standard in communications SRAM, and key design wins with our communications customers. Q4FY99 Key Product Milestones: IDT introduced two System Controllers that support its 32- and 64-bit microprocessors. These highly integrated System Controllers were developed to complement IDT’s RISController™ product offerings, giving customers a more complete solution. The Company broadened its Advanced Low-Voltage CMOS (ALVC) and Low-Voltage CMOS (LVC) logic families with the introduction of 680 new devices. IDT now offers the industry’s widest range of high-performance logic solutions ranging from single-gate to 36-bit-wide devices. IDT extended its leadership in the communications memory area with the introduction of the industry’s first x36, 1-Mbit dual-port SRAM device running at 100 MHz. IDT also shipped first revenue of this product in fiscal Q4. The RC32364 microprocessor, introduced earlier in fiscal year 1999, won Microprocessor Report’s Editor’s Choice Award for the best price/performance of any embedded processor. This 32-bit processor has recently received a number of design wins in communications and consumer applications, and began revenue shipments to customers in the fourth fiscal quarter. In addition, IDT began volume shipments of its 64-bit RC64474™ processor. View Tables About IDT IDT enables a digitally connected world by providing innovative semiconductor solutions to leading-edge system designers in communications and computing. IDT’s broad product mix consists of communications memories, networking devices, RISC and x86 microprocessors, high-speed SRAMs, and high-performance logic and clock management products. Headquartered in Santa Clara, Calif., the Company employs approximately 4,600 people worldwide and has manufacturing facilities in California, Oregon, the Philippines and Malaysia. IDT stock is traded on the Nasdaq stock market under the symbol "IDTI." Additional information about IDT is easily accessible through the Web (www.idt.com), CD-ROM by calling 800/345-7015, or via fax-on-demand at 800/9-IDT-FAX. The investor hotline is 408/654-6420. Forward-looking statements in this release involve a number of risks and uncertainties including, but not limited to, product demand, manufacturing, capacity and costs, competition, pricing, patent and other intellectual property rights of third parties, timely development and supply of new products and manufacturing processes, availability of capital, cash flow, and other risk factors detailed in the Company’s Securities and Exchange Commission Filings. Actual results may differ materially from the Company’s projections. ### IDT is a registered trademark of Integrated Device Technology. WinChip, RC32364, RC64474, RC64475, RISController , Supersync and SWITCHStAR are trademarks of Integrated Device Technology, Inc. ZBT and Zero Bus Turnaround are trademarks of Integrated Device Technology, Inc. and the architecture is supported by Micron Technology, Inc. and Motorola Inc. All other brands or products are the trademarks or registered trademarks of their respective owners. IDT, Inc. disclaims any proprietary interest in the trademarks of others.

About IDT