$153.2 Million in Revenue; GAAP GM of 53.9 Percent; Non-GAAP GM of 57.5 Percent; GAAP EPS of $0.07; Non-GAAP EPS of $0.15
SAN JOSE, Calif., January 31, 2011 — Integrated Device Technology, Inc. (IDT®) (NASDAQ: IDTI), the Analog and Digital Company™ delivering essential mixed-signal semiconductor solutions, today announced results for the fiscal third quarter ended January 2, 2011.
"Our third quarter results were in line with our prior projections as we continue to execute our long-term strategy," said Dr. Ted Tewksbury, president and CEO of IDT. "We made significant progress reducing channel inventories during the quarter, while growing sales in the enterprise computing end market. We are well positioned to accelerate revenue and earnings growth in the second half of this calendar year as our core business improves and new products continue to ramp, driven by cloud computing and the rollout of 4G/LTE wireless infrastructure."
IDT recently announced:
· The world's first Serial RapidIO Gen2 switches with virtual channel and security functionality to improve network performance and scalability of 4G LTE deployment.
· The industry's first fully JEDEC-compliant Memory Buffer for DDR3 LRDIMM, enabling a new generation of DDR3 memory technology for servers, workstations and storage equipment.
· It demonstrated the world's lowest power DDR3 register running at an industry-first 1,867Mbps in a standard server at the Supercomputing 2010 (SC10) conference.
· The industry's first signal-conditioning re-timers that are fully compliant with the upcoming release of the PCI Express® 3.0 standard, for use in servers, enterprise storage and communications systems.
· The industry's first single-layer multi-touch capacitive touch screen controller, which simplifies the sensor manufacturing process and lowers cost without sacrificing features or performance.
· It demonstrated the world's first usage of the DisplayPort™ auxiliary channel to carry touch screen data to the operating system in tablets, notebooks and other display devices.
· The introduction of the industry's first DisplayPort-over-Ethernet adapter based on the IDT VLX1000 PanelPort™ LinkXtend&trade device.
· A new family of DisplayPort-to-HDMI or DVI translators targeted at tablet and multi-monitor applications.
· Its new real-time clock with temperature compensation, providing high accuracy and ultra-low power for use in utility metering, HVAC, point-of-sale terminals, security alarms, vending machines and other security-related equipment.
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, 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 third quarter of 2011 was $153.2 million, up 8 percent from $142.5 million reported in the same period one year ago.
· GAAP net income for the fiscal third quarter of 2011 was $10.6 million or $0.07 per diluted share, versus a GAAP net loss of $7.4 million or a loss of $0.04 per diluted share in the same period one year ago. Fiscal third quarter 2011 GAAP results include $5.6 million in acquisition and divestiture related charges, $4.5 million in stock-based compensation and $3.3 million in restructuring-related costs.
· Non-GAAP net income for the fiscal third quarter of 2011 was $23.0 million or $0.15 per diluted share, compared with non-GAAP net income of $17.3 million or $0.10 per diluted share reported in the same period one year ago.
· GAAP gross profit for the fiscal third quarter of 2011 was $82.5 million, or 53.9 percent, compared with GAAP gross profit of $59.7 million, or 41.9 percent, in the same period one year ago. Non-GAAP gross profit for the fiscal third quarter of 2011 was $88.2 million, or 57.5 percent, compared with non-GAAP gross profit of $72.8 million, or 51.1 percent, reported in the same period one year ago.
· GAAP R&D expense for the fiscal third quarter of 2011 was $46.1 million, compared with GAAP R&D expense of $38.3 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal third quarter of 2011 was $41.3 million, compared with non-GAAP R&D of $34.6 million in the same period one year ago.
· GAAP SG&A expense for the fiscal third quarter of 2011 was $27.1 million, compared with GAAP SG&A expense of $24.8 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal third quarter of 2011 was $23.3 million, compared with non-GAAP SG&A expense of $21.0 million in the same period one year ago.
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 January 31, 2011. The webcast replay will be available after 5 p.m. Pacific time on January 31, 2011.
Investors can also listen to the live call at 1:30 p.m. Pacific time on January 31, 2011 by calling (800) 230-1096 or (612) 332-0107. The conference call replay will be available after 5 p.m. Pacific time on January 31, 2011 through 11:59 p.m. Pacific time on February 7, 2011 at (800) 475-6701 or (320) 365-3844. The access code is 188185.
Integrated Device Technology, Inc., the Analog and Digital Company™, combines analog and digital technology to develop system-level innovations that optimize customers’ applications and enrich the end-user experience. IDT uses its market leadership in timing, serial switching and interfaces, and adds analog and system expertise to provide complete application-optimized, mixed-signal solutions for the communications, computing and consumer segments. 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. Follow IDT on Facebook, LinkedIn, Twitter, and YouTube.
Forward Looking Statements
Investors are cautioned that forward-looking statements in this release, including but not limited to statements regarding demand for Company products, anticipated trends in Company sales, expenses and profits, 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 introduction 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 March 28, 2010. All forward-looking statements are made as of the date of this release and the Company disclaims any duty to update such statements.
The Company presents non-GAAP financial measures because the investor community uses non-GAAP results in its analysis and comparison of historical results and projections of the Company's future operating results. These non-GAAP results exclude restructuring-related costs, acquisition and divestiture-related charges, share-based compensation expense and certain other expenses and benefits. Management uses these non-GAAP measures to manage and assess the profitability of the business. These non-GAAP results are also consistent with another way management internally analyzes IDT's results and may be useful to investor community. The Company has reconciled non-GAAP results to the most directly comparable GAAP financial measures in the financial tables at the end of this press release.
Reference to these non-GAAP results should be considered in addition to results that are prepared under general accepted accounting standards in the United States (GAAP), but should not be considered a substitute for results that are presented in accordance with GAAP. It should also be noted that IDT's non-GAAP information may be different from the non-GAAP information provided by other companies.
IDT, PanelPort, LinkXtend and the IDT logo are trademarks or registered 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.