IDT Reports Fiscal Fourth Quarter and Year End 2007 Results
- 52 Percent Revenue Increase Year-Over-Year
- 184 Percent Non-GAAP Net Income Increase Year-Over-Year
- GAAP Net Loss Improves 91 Percent
- Over $200 Million in Operating Cash Flow Generation
SAN JOSE, Calif., Apr. 26, 2007 — 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 1, 2007.
“Fiscal 2007 was an excellent year for IDT. We broke the $800 million revenue mark as we delivered seven consecutive quarters of revenue growth,” stated Greg Lang, president and CEO of IDT. “In addition, our non-GAAP EPS has more than doubled from fiscal year 2006.”
Year-over-year highlights include:
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. A complete reconciliation of GAAP to non-GAAP results is attached to this press release.
- Revenue for the fiscal fourth quarter of 2007 was $206.7 million, up 23 percent from the same period one year ago and up slightly from the third fiscal quarter of 2007. Revenue for fiscal year 2007 was $803.6 million, up 52 percent from fiscal year 2006. Revenue for fiscal 2007 included the full effects of the merger with Integrated Circuit Systems, Inc. as compared to the inclusion of only six and a half months of revenue in fiscal 2006. Adjusting for this partial year would result in approximately 27 percent revenue growth year over year.
- GAAP net loss for the fiscal fourth quarter of 2007 was $3.4 million or $0.02 per diluted share, compared to a GAAP net loss of $26.5 million or $0.13 per diluted share in the same period one year ago. Fiscal fourth quarter 2007 GAAP results include $39.9 million of acquisition-related charges (including $39.3 million in amortization of intangibles and $600 thousand of other acquisition-related charges), $11.1 million of stock-based compensation, and $4.4 million of restructuring and impairment related charges. GAAP net loss for fiscal year 2007 was $7.6 million, an improvement of $74.1 million as compared with a GAAP net loss of $81.7 million in fiscal year 2006.
- Non-GAAP net income for the fiscal fourth quarter of 2007 was $52.2 million or $0.26 per diluted share, an improvement of 70 percent when compared to non-GAAP net income of $30.7 million or $0.15 per diluted share in the same period one year ago. Non-GAAP net income for fiscal year 2007 was $213.7 million or $1.05 per diluted share, an improvement of 123 percent in earnings per share when compared to $75.2 million or $0.47 per diluted share in fiscal year 2006.
- GAAP gross profit for the fiscal fourth quarter of 2007 was $84.0 million, compared to GAAP gross profit of $53.5 million in the same period one year ago. Non-GAAP gross profit for the fiscal fourth quarter of 2007 was $110.2 million, compared to non-GAAP gross profit of $92.2 million reported in the same period one year ago. GAAP gross profit for fiscal 2007 was $340.6 million, compared to $177.6 million for fiscal 2006. Non-GAAP gross profit was $439.4 million for fiscal 2007, compared to $278.2 million for fiscal 2006.
- GAAP R&D expense for the fiscal fourth quarter of 2007 was $42.5 million, compared with GAAP R&D expense of $35.8 million in the same period one year ago. Non-GAAP R&D expense for the fiscal fourth quarter of 2007 was $36.0 million,compared to non-GAAP R&D expense of $34.9 million in the same period one year ago. GAAP R&D expense for fiscal 2007 was $166.4 million, compared to $127.6 million for fiscal 2006. Non-GAAP R&D expense for fiscal 2007 was $137.7 million, compared to $120.6 million in fiscal 2006.
- GAAP SG&A expense for the fiscal fourth quarter of 2007 was $47.4 million, compared to GAAP SG&A expense of $50.0 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal fourth quarter of 2007 was $24.9 million, compared to non-GAAP SG&A expense of $26.4 million in the same period one year ago. GAAP SG&A expense for fiscal 2007 was $191.2 million, compared to $142.5 million for fiscal 2006. Non-GAAP SG&A expense for fiscal 2007 was $98.5 million, compared to $88.4 million for fiscal 2006.
“We will continue investing in new technologies and products, which will allow us to build additional growth platforms and push us toward becoming a billion dollar company. I’m extremely proud of our employees who continue to focus and deliver great results for IDT, our customers and our shareholders,” Mr. Lang continued.
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 April 26, 2007. The webcast replay will be available after 5 p.m. PT on April 26.
Investors can also listen to the live call at 1:30 p.m. PT on April 26 by calling (888) 276-0007 or (617) 332-0107. The conference call replay will be available after 5 p.m. PT on April 26 through 11:59 p.m. PT on May 3, 2007 at (800) 475-6701 or (320) 365-3844. The access code is 868755.
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, 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 December 31, 2006.
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