SAN JOSE, Calif., January 26, 2006 — IDT™ (Integrated Device Technology, Inc.; NASDAQ: IDTI), a vital semiconductor solutions supplier, today announced results for the third quarter of its 2006 fiscal year, ended January 1, 2006. The Company’s revenues and non-GAAP EPS for the quarter were at the high end of the Company’s projections provided on the second quarter earnings call on November 8, 2005. These results reflect the first full quarter of results for the combined company following the Company’s merger with Integrated Circuit Systems (ICS), as well as growth in the Company’s end markets.
The following highlights the Company’s financial performance on both a GAAP and non-GAAP basis. The GAAP results include certain costs, charges and gains 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.
- Revenues for the fiscal third quarter were $160.8 million, an increase of 52 percent compared to the second quarter of fiscal 2006, and an increase of 68 percent from the third quarter of fiscal 2005.
- Non-GAAP net income for the third quarter of fiscal 2006 was $27.8 million or $0.14 per diluted share, compared to net income of $11.2 million or $0.09 per diluted share in the second quarter of fiscal 2006. Non-GAAP net income for the third quarter of fiscal 2005 was $6.3 million, or $0.06 per diluted share.
- GAAP net loss for the third quarter was $42.3 million, or a loss of $0.21 per diluted share. This compares to a net loss of $19.5 million, or a loss of $0.16 per diluted share, for the second quarter of fiscal 2006. GAAP net income for the third quarter of fiscal 2005 was $3.3 million, or $0.03 per diluted share. Third quarter of fiscal 2006 GAAP results include $64.8 million of acquisition related charges (including $56.8 million in intangibles amortization), $4.1 million in taxes related to foreign earnings repatriation under the Homeland Investment Act (HIA) and $0.6 million in restructuring related charges. For further description and a complete reconciliation of GAAP to non-GAAP adjustments, please refer to the attached tables.
“We are very pleased with our financial performance for the third quarter,” said Greg Lang, president and CEO of IDT. “Strong customer demand for our products serving the PC and communications end markets, particularly in the enterprise sub-segment, enabled us to deliver results at the high end of our forecast. Our integration of ICS is on track and we are beginning to realize synergies relating to this merger. Our profitability in the third quarter reflects the benefits of the merger integration as well as our own restructuring plans.”
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. PST on January 26, 2006. The webcast replay will be available after 5 p.m. PST on January 26 through February 2, 2006.
Investors can also listen to the live call at 1:30 p.m. PST January 26, 2006 by calling (888) 423-3271 or (612) 332-0530. The conference call replay will be available after 5 p.m. PST on January 26 through 11:59 p.m. PST on February 2, 2006 at (800) 475-6701 or (320) 365-3844. The access code is 811507.
IDT stock is traded on the NASDAQ Stock Market® under the symbol “IDTI.” The company is included in the S&P 1000, which is a combination of the S&P MidCap 400 and S&P SmallCap 600 Indices, and is also part of the S&P SuperComposite 1500, which combines the S&P 500, MidCap 400, and SmallCap 600. Additional information about IDT is accessible at www.IDT.com.
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.
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, including integration of both ICS and the assets we recently acquired from Freescale, 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 3, 2005 and Quarterly Report on Form 10-Q for the period ended October 2, 2005.
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.
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