IDT Reports Fiscal Third Quarter 2007 Results
SAN JOSE, Calif., January 23, 2007 — IDTTM (Integrated Device Technology, Inc.; NASDAQ: IDTI), a leading provider of vital semiconductor solutions, today announced results for the fiscal third quarter of 2007, ended December 31, 2006. Revenue for the quarter was $206.2 million, up 28 percent from the fiscal third quarter of 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 third quarter of 2007 was $206.2 million, up 28 percent from the same period one year ago and up slightly from the second fiscal quarter of 2007.
· GAAP net loss for the fiscal third quarter of 2007 was $1.9 million or $0.01 per diluted share, an improvement of approximately $40 million or $0.20 per share when compared to a GAAP net loss of $42.3 million or $0.21 per diluted share in the same period one year ago. GAAP net loss for the fiscal third quarter of 2007 was slightly higher than the $0.7 million GAAP net loss in the previous quarter. Fiscal third quarter 2007 GAAP results include $40.6 million of acquisition-related charges (including $39.7 million in intangibles amortization and $0.9 million of other acquisition-related charges), and $11.2 million of stock-based compensation.
· Non-GAAP net income for the fiscal third quarter of 2007 was$51.7 million or $0.25 per diluted share, an improvement of about 86 percent when compared to non-GAAP net income of $27.8 million or $0.14 per diluted share in the same period one year ago. Non-GAAP net income was down from $59.2 million or $0.29 per diluted share reported in the fiscal second 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 third quarter of 2007 was $85.8 million, compared to GAAP gross profit of $86.7 million reported in the fiscal second quarter of 2007. Non-GAAP gross profit for the fiscal third quarter of 2007 was $109.6 million, compared to non-GAAP gross profit of $114.1 million reported in the fiscal second quarter of 2007.
· GAAP R&D expense for the fiscal third quarter of 2007 was $43.5 million, compared to GAAP R&D expense of $40.9 million in the fiscal second quarter of 2007. Non-GAAP R&D expense for the fiscal third quarter of 2007 was $36.4 million, compared to non-GAAP R&D expense of $33.0 million in the fiscal second quarter of 2007.
· GAAP SG&A expense for the fiscal third quarter of 2007 was $46.8 million, compared to GAAP SG&A expense of $49.0 million in the fiscal second quarter of 2007. Non-GAAP SG&A expense for the fiscal third quarter of 2007 was $24.5 million, compared to non-GAAP SG&A expense of $24.9 million in the fiscal second quarter of 2007.
“We are pleased to deliver our sixth consecutive quarter of revenue growth, led by sales into our computing and consumer end markets,” said Greg Lang, presidentand CEO of IDT. “Strong growth from our advanced memory buffer and PC audio products helped to offset weaker sales in our communications end market. Amid a challenging market environment, we grew revenue in our fiscal third quarter an impressive 28 percent year over year, driven by our investments in innovative products and technologies. We believe these product ramps, combined with a strong pipeline of new products, will enable IDT to continue to grow faster than the overall semiconductor market in calendar 2007.”
Board of Directors Approves New $200 million Share Repurchase Program
The IDT board of directors has approved a new $200 million share repurchase program. The Company’s prior share repurchase program of $100 million was completed during the fiscal third quarter of 2007. Under the prior program, the Company repurchased approximately 6.3 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 December 31, 2006, IDT had approximately 196 million shares outstanding and approximately $291 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. PT on January 23, 2007. The webcast replay will be available after 5 p.m. PT on January 23.
Investors can also listen to the live call at 1:30 p.m. PT on January 23 by calling (888) 428-4480 or (612) 234-9960. The conference call replay will be available after 5 p.m. PT on January 23 through 11:59 p.m. PT on January 30, 2007 at (800) 475-6701 or (320) 365-3844. The access code is 857480.
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 October 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 usedto identify products or services of their respective owners.
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