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IDT Reports Fiscal Second Quarter 2008 Results

Better-than-Seasonal Trends in Computing Drives Sequential Growth in Revenue, Gross Margin, & EPS

 

SAN JOSE, Calif., Oct. 24, 2007IDT® (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 second quarter ended September 30, 2007.

 

 

“We delivered solid results in our fiscal second quarter of 2008 with sequential growth in revenue, gross margin, and EPS,” stated Greg Lang, president and CEO of IDT. “Revenue growth came primarily from two areas. First, our computing end market grew better than seasonal expectations with our PC Clock and PC Audio product lines showing double digit sequential growth. Second, our consumer end market showed substantial growth across a range of platforms. Our overall gross margin improved sequentially, and our new product areas continued to gain traction with significant design wins in our PCI Express and Pre-processing Switch product lines.”

 

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 second quarter of 2008 was $204.1 million, compared to $205.2 million reported in the same period one year ago, and up 2.6 percent sequentially. 
  • GAAP net income for the fiscal second quarter of 2008 was $4.8 million or $0.02 per diluted share, compared to a GAAP net loss of $0.7 million or approximately break even in same period one year ago. Fiscal second quarter 2008 GAAP results include $30.5 million of acquisition-related charges (including $29.9 million in amortization of intangibles and $0.6 million of other acquisition-related charges), $11.8 million of stock-based compensation, and $0.9 million in tax effects related to acquisition related items. 
  • Non-GAAP net income for the fiscal second quarter of 2008 was $48.3 million or $0.25 per diluted share, compared to non-GAAP net income of $59.2 million or $0.29 per diluted share reported in the same period one year ago, and up from $0.22 per diluted share in the previous quarter.
  • GAAP gross profit for the fiscal second quarter of 2008 was $88.2 million, compared to GAAP gross profit of $86.7 million in the same period one year ago. Non-GAAP gross profit for the fiscalsecond quarter of 2008 was $105.7 million, compared to non-GAAP gross profit of $114.1 million reported in the same periodone year ago.
  • GAAP R&D expense for the fiscal second quarter of 2008 was $41.9 million, compared with GAAP R&D expense of $40.9 million in the same period one year ago. Non-GAAP R&D expense for the fiscal second quarter of 2008 was $35.1 million, compared to non-GAAP R&D expense of $33.0 million in the same period one year ago. 
  • GAAP SG&A expense for the fiscal second quarter of 2008 was $43.6 million, compared to GAAP SG&A expense of $49.0 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal second quarter of 2008 was $25.3 million, compared to non-GAAP SG&A expense of $24.9 million in the same period one year ago.

 

$200 Million Expansion of Common Stock Repurchase Program

IDT also announced that its Board of Directors has approved a $200 million expansion of the previously authorized share repurchase program to a total of $400 million, of which approximately $236 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 September 30, 2007, IDT had approximately 196 million shares outstanding and approximately $350 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. Pacific time on October 24, 2007.  The webcast replay will be available after 5:00 p.m. Pacific time on October 24, 2007.

Investors can also listen to the live call at 1:30 p.m. Pacific time on October 24, 2007 by calling (888) 428-4480 or (651) 291-5254.  The conference call replay will be available after 5:00 p.m. Pacific time on October 24, 2007 through 11:59 p.m. Pacific time on October 31, 2007 at (800) 475-6701 or (320) 365-3844.  The access code is 887536.

 

About IDT

With the goal of continuously improving the digital media experience, IDT integrates its fundamental semiconductor heritagewith essential innovation, developing and delivering low-power, mixed-signal solutions that solve customer problems. Headquartered in San Jose, Calif., IDT hasdesign, 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 July 1, 2007.

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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.