IDT Reports Fiscal Fourth Quarter and Year End 2008 Results
Strength in Communications End Market and PCI Express Product Sales Drive Better-Than-Expected Results
SAN JOSE, Calif., May 1, 2008 — IDT® (Integrated Device Technology, Inc.; NASDAQ: IDTI), a leading provider of essential mixed signal semiconductor solutions that enrich the digital media experience, today announced results for the fiscal fourth quarter and year ended March 30, 2008.
“We are pleased to report that increased demand for a broad range of our communication product offerings and robust sales of our PCI Express® devices enabled us to post better-than-expected results in our fiscal fourth quarter, despite anticipated weakness in our computing and consumer end markets,” said Ted Tewksbury, president and CEO of IDT. “Strength in our core businesses, increased traction with new products, and tight cost controls allowed us to weather broader economic weakness in fiscal 2008. We are confident that the strong design activity we are experiencing across our industry-leading serial switching, communication clocks, and digital display product lines, combined with improvement in our core businesses, places us in a solid position to deliver increased shareholder value in fiscal 2009 and beyond. I am excited to be a part of this dynamic organization and believe the best is yet to come for IDT.”
Company highlights for the quarter include:
· Introduction of the PanelPort™ family of DisplayPort™-compatible receiver and timing controller products for flat panel displays
· Quality supplier awards from Stack International and Intel Corporation
· EN-Genius “Product of the Year” award for our PCI Express switches
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. Non-GAAP results are not in accordance with GAAP and may not be comparable to non-GAAP information provided by other companies. Non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. A complete reconciliation of GAAP to non-GAAP results is attached to this press release.
· Revenue for the fiscal fourth quarter of 2008 was $177.1 million, compared to $206.7 million reported in the same period one year ago. Revenue for fiscal year 2008 was $781.5 million, compared to $803.6 million in fiscal year 2007.
· GAAP net income for the fiscal fourth quarter of 2008 was $17.1 million or $0.10 per diluted share, compared to a GAAP net loss of $3.4 million or approximately $0.02 per diluted share in same period one year ago. Fiscal fourth quarter 2008 GAAP results include $24.7 million of acquisition-related charges (including $24.5 million in amortization of intangibles and $0.2 million of other acquisition-related charges), and $8.2 million of stock-based compensation. GAAP net income for fiscal year 2008 was $34.2 million, an improvement of $41.8 million as compared with a GAAP net loss of $7.6 million in fiscal year 2007.
· Non-GAAP net income for the fiscal fourth quarter of 2008 was $42.7 million or $0.24 per diluted share, compared to non-GAAP net income of $52.2 million or $0.26 per diluted share reported in the same period one year ago. Non-GAAP net income for fiscal year 2008 was $181.8 million or $0.96 per diluted share, compared to $213.7 million or $1.05 per diluted share in fiscal year 2007.
· GAAP gross profit for the fiscal fourth quarter of 2008 was $77.9 million, compared to GAAP gross profit of $84.0 million in the same period one year ago. Non-GAAP gross profit for the fiscal fourth quarter of 2008 was $94.4 million, compared to non-GAAP gross profit of $110.2 million reported in the same period one year ago. GAAP gross profit for fiscal 2008 was $339.3 million, compared to $340.6 million for fiscal 2007. Non-GAAP gross profit was $407.7 million for fiscal 2008, compared to $439.4 million for fiscal 2007.
· GAAP R&D expense for the fiscal fourth quarter of 2008 was $38.4 million, compared with GAAP R&D expense of $42.5 million in the same period one year ago. Non-GAAP R&D expense for the fiscal fourth quarter of 2008 was $33.0 million, compared to non-GAAP R&D expense of $36.0 million in the same period one year ago. GAAP R&D expense for fiscal 2008 was $165.6 million, compared to $166.4 million for fiscal 2007. Non-GAAP R&D expense for fiscal 2008 was $141.6 million, compared to $137.7 million in fiscal 2007.
· GAAP SG&A expense for the fiscal fourth quarter of 2008 was $34.1 million, compared to GAAP SG&A expense of $47.4 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal fourth quarter of 2008 was $22.3 million, compared to non-GAAP SG&A expense of $24.9 million in the same period one year ago. GAAP SG&A expense for fiscal 2008 was $161.7 million, compared to $191.2 million for fiscal 2007. Non-GAAP SG&A expense for fiscal 2008 was $97.6 million, compared to $98.5 million for fiscal 2007.
$100 Million Expansion of Common Stock Repurchase Program
IDT also announced that its Board of Directors has approved a $100 million expansion of the previously authorized share repurchase program to a total of $500 million, of which approximately $140 million remains available for share repurchases. Repurchases under the Company’s repurchase program will be made in compliance with the SEC’s Rule 10b-18, subject to market conditions, applicable legal requirements and other factors and may include open market and negotiated transactions, including block transactions or accelerated stock repurchase transactions. The expansion of the repurchase program is effective immediately and may be discontinued at any time at the Company’s discretion. As of March 30, 2008, IDT had approximately 178 million shares outstanding and approximately $239 million in cash and investments.
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. Pacific time on May 1, 2008. The webcast replay will be available after 5:00 p.m. Pacific time on May 1, 2008.
Investors can also listen to the live call at 1:30 p.m. Pacific time on May 1, 2008 by calling (800) 230-1093 or (612) 234-9960. The conference call replay will be available after 5:00 p.m. Pacific time on May 1, 2008 through 11:59 p.m. Pacific time on May 15, 2008 at (800) 475-6701 or (320) 365-3844. The access code is 918366.
With the goal of continuously improving the digital media experience, IDT integrates its fundamental semiconductor heritage with essential innovation, developing and delivering low-power, mixed signal solutions that solve customer problems. Headquartered in San Jose, Calif., IDT has design, manufacturing and sales facilities 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.
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 fiscal year ended April 1, 2007 and Quarterly Report on Form 10-Q for the period ended December 30, 2007.
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.