IDT Reports Fiscal Second Quarter 2007 Results
SAN JOSE, Calif., October 24, 2006 — IDTTM (Integrated Device Technology, Inc.; NASDAQ: IDTI), a leading provider of vital semiconductor solutions, today announced results for the fiscal second quarter of 2007, ended October 1, 2006. Revenue, operating margin and EPS were at or above the high end of the Company’s projected ranges provided on the fiscal first quarter earnings call on July 25, 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.
· Revenue for the fiscal second quarter of 2007 was $205.2 million, an increase of 11 percent from the $185.5 million reported in the fiscal first quarter of 2007.
· GAAP net loss for the fiscal second quarter of 2007 was $0.7 million, or approximately break even per diluted share. This compares to a net loss of $1.6 million or a loss of $0.01 per diluted share for the first quarter of fiscal 2007. Fiscal second quarter GAAP results include $43.0 million of acquisition-related charges (including $40.0 million in intangibles amortization and $3.0 million of other acquisition-related charges), $13.2 million of stock based compensation and $3.6 million in restructuring-related charges.
· Non-GAAP net income for the fiscal second quarter of 2007 was $59.2 million or $0.29 per diluted share, an increase of 17 percent over net income of $50.6 million or $0.25 per diluted share reported in the fiscal first quarter of 2007. For further description and a complete reconciliation of GAAP to non-GAAP results, please refer to the attached tables.
· GAAP gross profit for the fiscal second quarter of 2007 was $86.7 million, compared to GAAP gross profit of $84.2 million reported in the fiscal first quarter of 2007. Non-GAAP gross profit for the fiscal second quarter of 2007 was $114.1 million, compared to non-GAAP gross profit of $105.4 million reported in the fiscal first quarter of 2007.
· GAAP R&D expense for the fiscal second quarter of 2007 was $40.9 million, compared to GAAP R&D expense of $39.6 million in the fiscal first quarter of 2007. Non-GAAP R&D expense for the fiscal second quarter of 2007 was $33.0 million, compared to non-GAAP R&D expense of $32.3 million in the fiscal first quarter of 2007.
· GAAP SG&A expense for the fiscal second quarter of 2007 was $49.0 million, compared to GAAP SG&A expense of $48.0 million in the fiscal first quarter of 2007. Non-GAAP SG&A expense for the fiscal second quarter of 2007 was $24.9 million, compared to non-GAAP SG&A expense of $24.2 million in the fiscal first quarter of 2007.
“Strength in our computing and consumer end markets enabled us to deliver our fifth consecutive quarter of revenue and non-GAAP EPS growth, with overall revenue growth of 28 percent so far this calendar year,” said Greg Lang, president and CEO of IDT. “We continue to benefit from multiple product ramps, including our advanced memory buffers, PC and consumer timing devices as well as products from our recently acquired PC audio business. Our key product investments in the computing, consumer, and communication segments have enabled IDT to provide consistent growth during the past year, and we look forward to introducing new products that will continue to support this growth.”
Expansion of Common Stock Repurchase Program
IDT also announced that its Board of Directors has approved a $50 million expansion of the previously authorized share repurchase program to a total of $100 million. Repurchases under the Company’s 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 expansion of the repurchase program is effective immediately and the repurchase program may be discontinued at any time. As of October 1, 2006, IDT had approximately 200 million shares outstanding and approximately $332 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. PT on October 24, 2006. The webcast replay will be available after 5 p.m. PT on October 24 through October 31, 2006.
Investors can also listen to the live call at 1:30 p.m. PT on October 24 by calling (877) 260-8900 or (612) 332-0530. The conference call replay will be available after 5 p.m. PT on October 24 through 11:59 p.m. PT on October 31, 2006 at (800) 475-6701 or (320) 365-3844. The access code is 843804.
IDT is a world leader in developing and delivering vitalsemiconductor 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 August 9, 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.