IDT Reports Fiscal First Quarter 2007 Results
SAN JOSE, Calif., July 25, 2006 — IDTTM (Integrated Device Technology, Inc.; NASDAQ: IDTI), a leading provider of vital semiconductor solutions, today announced results for the fiscal first quarter of 2007, ended July 2, 2006. The Company’s revenues and EPS for the quarter exceeded the high end of the Company’s projected ranges provided on the fourth quarter earnings call on May 8, 2006.
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.
· Revenues for the fiscal first quarter of 2007 were $185.5 million, an increase of 11 percent from the $167.5 million reported in the fiscal fourth quarter of 2006.
· GAAP net loss for the fiscal first quarter of 2007 was $1.6 million, or a loss of $0.01 per diluted share. This compares to a net loss of $26.5 million or a loss of $0.13 per diluted share for the fourth quarter of fiscal 2006. First quarter GAAP results include $40.5 million of acquisition-related charges(including $37.0 million in intangibles amortization), $11.0 million of stock based compensation and $0.7 million in restructuring-related charges.
· Non-GAAP net income for the first quarter of fiscal 2007 was $50.6 million or $0.25 per diluted share, an increase of 65 percent over net income of $30.7 million or $0.15 per diluted share reported in the fourth quarter of fiscal 2006. For further description and a complete reconciliation of GAAP to non-GAAP results, please refer to the attached tables.
· GAAP gross profit for the first quarter of fiscal 2007 was $84.2 million, compared to GAAP gross profit of $53.5 million reported in the fiscal fourth quarter of 2006. Non-GAAP gross profit for the fiscal first quarter of 2007 was $105.4 million, compared to non-GAAP gross profit of $92.2 million reported in the fiscal fourth quarter of 2006. Non-GAAP gross margins for the fiscal first quarter were 56.8 percent, compared to Non-GAAP gross margins for the fiscal fourth quarter of 55.0 percent.
· GAAP R&D expense for the fiscal first quarter was $39.6 million, compared to GAAP R&D expense of $35.8 million in the fiscal fourth quarter. Non-GAAP R&D expense for the fiscal first quarter of 2007 was $32.3 million, compared to non-GAAP R&D expense of $34.9 million in the fiscal fourth quarter of 2006.
· GAAP SG&A expense for the fiscal first quarter was $48.0 million, compared to GAAP SG&A expense of $50.0 million in the fiscal fourth quarter. Non-GAAP SG&A expense for the fiscal first quarter of 2007 was $24.2 million, compared to non-GAAP SG&A expense of $26.4 million in the fiscal fourth quarter of 2006.
“Our double-digit revenue growth in the fiscal first quarter reflects continued product momentum across our computing and communication end markets,” said Greg Lang, president and CEO of IDT. “An aggressive ramp of our advanced memory buffer products combined with continued strength in our communications’ sub segments allowed us to achieve better results than originally anticipated, despite a softer-than-seasonal market for our PC clock business. We also demonstrated strong profit growth during the quarter resulting from the combination of top line growth and excellent cost and expense management which allowed us to achieve our operating margin target range at least one year ahead of our plans.”
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. PT on July 25, 2006. The webcast replay will be available after 5 p.m. PT on July 25 through August 1, 2006.
Investors can also listen to the live call at 1:30 p.m. PT on July 25 by calling (888) 423-3271 or (612) 332-0530. The conference call replay will be available after 5 p.m. PT on July 25 through 11:59 p.m. PT on August 1, 2006 at (800) 475-6701 or (320) 365-3844. The access code is 835055.
IDT is a world leader in developing and delivering vital semiconductor solutions that enable customers to accelerate innovation. IDT solutions help customers solve complex system design challenges associated with the evolving requirements of communications, computing and consumer applications. By leveraging its system knowledge and extensive blend of technologies, IDT is able to deliver essential solutions, including timing products, network search engines, flow-control management ICs and products for standards-based serial switching. Headquartered in San Jose, Calif., IDT has design, manufacturing and sales facilities throughout the world. IDT stock is traded on the NASDAQ Global Select 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, including integration of both ICS and the assets we acquired from Freescale in September 2005, 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 year ended April 2, 2006 and Quarterly Report on Form 10-Q for the period ended January 1, 2006.
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.
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