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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.
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.
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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.
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