IDT Reports Fiscal Fourth Quarter and Year End 2006 Results
SAN JOSE, Calif., May 8, 2006 — IDTTM (Integrated Device Technology, Inc.; NASDAQ: IDTI), a leading provider of vital semiconductor solutions, today announced results for the fiscal fourth quarter and year ended April 2, 2006. The Company’s revenues and EPS for the quarter were at the higher end of the Company’s projections provided on the third quarter earnings call on January 26, 2006.
The following highlights the Company’s financial performance on both a GAAP and non-GAAP basis. Results for fiscal 2006 include the impact of the Integrated Circuit Systems, Inc. (ICS) merger, which was completed on September 16, 2005. 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 fourth quarter of 2006 were $167.5 million, an increase of 4 percent from the $160.8 million reported in the fiscal third quarter of 2006.
· Revenues for fiscal year 2006 were $527.8 million, an increase of 35 percent from the $390.6 million reported in fiscal year 2005.
· GAAP net loss for the fourth quarter was $26.5 million, or a loss of $0.13 per diluted share. This compares to a net loss of $42.3 million, or a loss of $0.21 per diluted share for the third quarter of fiscal 2006. Fourth quarter of fiscal 2006 GAAP results include $60.8 million of acquisition-related charges (including $55.9 million in intangibles amortization), a $3.2 million tax benefit related to the favorable treatment of repatriated earnings and $2.3 million in restructuring-related charges. Non-GAAP net income for the fourth quarter of fiscal 2006 was $30.7 million or $0.15 per diluted share, compared to net income of $27.8 million or $0.14 per diluted share in the third quarter of fiscal 2006. For further description and a complete reconciliation of GAAP to non-GAAP results, please refer to the attached tables.
· GAAP net loss for fiscal year 2006 was $81.7 million, or a loss of $0.52 per diluted share, compared with GAAP net income for fiscal year 2005 of $13.3 million, or $0.12 per diluted share. Non-GAAP net income for fiscal year 2006 was $75.2 million or $0.47 per diluted share, compared to net income of $35.5 million or $0.33 per diluted share in fiscal year 2005. Non-GAAP EPS increased 42 percent year over year.
· GAAP gross profit for the fourth quarter of fiscal 2006 was $53.5 million, compared to GAAP gross profit of $45.6 million in the prior quarter. Non-GAAP gross profit for the fourth quarter of fiscal 2006 was $92.2 million, compared to non-GAAP gross profit of $86.9 million in the prior quarter.
· GAAP operating expenses for the fiscal fourth quarter were $85.8 million, compared to GAAP operating expenses of $83.9 million in the prior quarter. Non-GAAP operating expenses for the fiscal fourth quarter were $61.3 million, compared to non-GAAP operating expenses of $59.7 million in the prior quarter.
“We arevery pleased to close an exciting year with another strong quarter that reflects the health of our end markets and new product momentum,” said Greg Lang, president and CEO of IDT. “We saw significant strength in our communications and consumer end markets that offset seasonal weakness in computing. We also benefited from new digital consumer and server product ramps. We look forward to fiscal 2007 as we continue to drive revenue growth and increase our profitability with best-in-class products targeting communications, computing and consumer end markets.”
Board of Directors Approves New $50 million Share Repurchase Program
The IDT board of directors has approved a new $50 million share repurchase program, which the Company expects to commence in the current quarter. The Company’s prior share repurchase program of $75 million was completed during the fiscal fourth quarter of 2006. Under the prior program, the Company repurchased approximately 5.7 million shares.
Repurchases under the Company’s new stock repurchase program may be made from time-to-time in the open market and in negotiated transactions, including block transactions or accelerated stock repurchase transactions, at times and at prices considered appropriate by the Company. The repurchase program is effective immediately and may be discontinued at any time. As of April 2, 2006, IDT had approximately 198 million shares outstanding and approximately $296 million in cash and cash equivalents.
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. PDT on May 8, 2006. The webcast replay will be available after 5 p.m. PDT on May 8 through May 15, 2006.
Investors can also listen to the live call at 1:30 p.m. PDT May 8, 2006 by calling (888) 423-3271 or (612) 332-0530. The conference call replay will be available after 5 p.m. PDT on May 8 through 11:59 p.m. PDT on May 15, 2006 at (800) 475-6701 or (320) 365-3844. The access code is 823814.
IDT stock is traded on the NASDAQ Stock Market® under the symbol “IDTI.” The company is included in the S&P 1000, which is a combination of the S&P MidCap 400 and S&P SmallCap 600 Indices, and is also part of the S&P SuperComposite 1500, which combines the S&P 500, MidCap 400, and SmallCap 600. Additional information about IDT is accessible at www.IDT.com.
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 andconsumer 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.
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 recently acquired from Freescale, 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 3, 2005 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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