Strong Sequential Growth in Sales of Timing, PC Audio and PCI Express Devices Company Announces Board of Directors Transition
January 24, 2008
SAN JOSE, Calif., Jan. 24, 2008 — IDT® (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 third quarter ended December 30, 2007.
“We experienced broad strength in sales of timing devices across our computing, consumer and communications end markets. Increased sales of PC audio and PCI Express® devices, combined with robust timing product sales and sequential improvement in gross margin, allowed us to post EPS that was in line with the mid-point of our previous expectations,” stated Greg Lang, president and CEO of IDT. “While revenue growth in these markets was more than offset by weaker demand for our communications and server products, we continue to see strong design win momentum across many of our new product lines including PCI Express and PC audio, and we look forward to a strong second half of calendar year 2008 as these design wins ramp.”
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 third quarter of 2008 was $201.2 million, compared to $206.2 million reported in the same period one year ago.
· GAAP net income for the fiscal third quarter of 2008 was $13.4 million or $0.07 per diluted share, compared to a GAAP net loss of $1.9 million or approximately $0.01 per diluted share in same period one year ago. Fiscal third quarter 2008 GAAP results include $24.9 million of acquisition-related charges (including $24.5 million in amortization of intangibles and $0.4 million of other acquisition-related charges), and $9.4 million of stock-based compensation.
· Non-GAAP net income for the fiscal third quarter of 2008 was $46.7 million or $0.25 per diluted share, compared to non-GAAP net income of $51.7 million or $0.25 per diluted share reported in the same period one year ago.
· GAAP gross profit for the fiscal third quarter of 2008 was $88.3 million, compared to GAAP gross profit of $85.8 million in the same period one year ago. Non-GAAP gross profit for the fiscal third quarter of 2008 was $105.2 million, compared to non-GAAP gross profit of $109.6 million reported in the same period one year ago.
· GAAP R&D expense for the fiscal third quarter of 2008 was $40.6 million, compared with GAAP R&D expense of $43.5 million in the same period one year ago. Non-GAAP R&D expense for the fiscal third quarter of 2008 was $35.7 million, compared to non-GAAP R&D expense of $36.4 million in the same period one year ago.
· GAAP SG&A expense for the fiscal third quarter of 2008 was $38.9 million, compared to GAAP SG&A expense of $46.8 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal third quarter of 2008 was $24.9 million, compared to non-GAAP SG&A expense of $24.5 million in the same period one year ago.
Stock Repurchase Program Update
During the fiscal third quarter of 2008, the Company repurchased approximately $102 million of IDT shares. The Company has approximately $135 million dollars remaining under its authorized repurchase program.
Board of Directors Transition
The Company also announced the addition of Mr. Gordon W. Parnell to its Board of Directors. Mr. Parnell currently serves as Vice President and Chief Financial Officer for Microchip Technology Inc. IDT also announced that its Board of Directors unanimously agreed to reduce the size of the Board. In connection with this reduction, John Bolger, John Howard, Ken Kannappan and Hock Tan have resigned from the IDT Board.
“The integration of IDT and ICS has been successfully completed and now is a good time to streamline the Board,” said John Schofield, newly appointed Chairman of the Board. “On behalf of the Company, I would like to thank each of the departing directors for their dedicated service and valuable contributions. We are also extremely pleased to welcome Gordon Parnell to the Board and believe that his background and skill set make him an ideal successor to John Bolger as Chairman of the Audit Committee,” added Schofield.
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 24, 2008. The webcast replay will be available after 5:00 p.m. Pacific time on January 24, 2008.
Investors can also listen to the live call at 1:30 p.m. Pacific time on January 24, 2008 by calling (888) 428-4478 or (651) 291-0618. The conference call replay will be available after 5:00 p.m. Pacific time on January 24, 2008 through 11:59 p.m. Pacific time on January 31, 2008 at (800) 475-6701 or (320) 365-3844. The access code is 905608.
With the goal of continuously improving the digital media experience, IDT integrates its fundamental semiconductor heritage with essential innovation, developing and delivering low-power, mixed-signal solutions that solve customer problems. 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.
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 September 30, 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.