IDT Issues Statement Regarding U.S. Department of Commerce Ruling on ZTE
SAN JOSE, Calif., March 8, 2016 — Integrated Device Technology, Inc. (IDT®) (NASDAQ: IDTI) today provided a statement regarding the publication by the United States Department of Commerce in the Federal Register of a “final rule” amending the Export Administration Regulations to add four entities to the “Entity List” maintained by the Department for actions contrary to the national security and foreign policy interests of the United States. The four entities added to the “Entity List” include Zhongxing Telecommunications Equipment Corporation and its subsidiaries, ZTE Kangxun Telecommunications Ltd., Beijing 8-Star, and ZTE Parsian. This amendment became effective immediately. Zhongxing Telecommunications Equipment Corporation (“ZTE”) is a communications infrastructure customer of IDT.
IDT’s ZTE-related revenue has historically ranged between approximately $3 million and $4 million per quarter. IDT expects this event to have minimal impact to its current fiscal fourth quarter, ending April 3, 2016.
The company believes this ruling could cause changes to revenue trends beginning in its first fiscal quarter of 2017, ending July 3, 2016. The magnitude and longevity of any impact will depend on the timing and specific rebalancing that may occur across the company’s customer base for related applications in similar end markets. The company currently believes that any adverse impact will be transitory, as IDT is strongly positioned across a wide range of customers and applications in communications infrastructure.
Integrated Device Technology, Inc. develops system-level solutions that optimize its customers’ applications. IDT’s market-leading products in timing, serial switching and interfaces 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 March 29, 2015. All forward-looking statements are made as of the date of this release and the Company disclaims any duty to update such statements.