March 31, 2009
SAN JOSE, Calif., March 31, 2009 — IDT® (Integrated Device Technology, Inc.; NASDAQ: IDTI), a leading provider of essential mixed signal semiconductor solutions that enrich the digital media experience, today updated its projections for the fiscal fourth quarter of 2009 which were previously provided on January 29, 2009.
The Company currently anticipates revenue for the fiscal fourth quarter of 2009 to be between $106 million and $108 million, down 37 to 35 percent sequentially. Based on the revised revenue outlook, fourth quarter non-GAAP loss per share is now projected to be approximately ($0.03). Prior projections for the fiscal fourth quarter of 2009 were for revenue to be in the range of $114 million to $126 million and non-GAAP earnings per share to be between break even and $0.04. These revenue and earnings per share figures are estimates pending the final accounting for the quarter and year ended March 29, 2009.
“Weaker than expected demand from our customers serving the computing end market led to fiscal fourth quarter results that were below our prior projections,” said Ted Tewksbury, president and CEO of IDT. “Reductions in PC-related channel inventory had a greater than anticipated impact on our shipments in the fourth quarter. In addition, we experienced lower demand for our server memory interface products as certain memory module manufacturers faced financial difficulties.”
“Despite declining economic activity, seasonality and channel inventory reductions, we were pleased to see stabilization in our customers’ order patterns late in the March quarter. In fact, our book to bill ratio for our fiscal fourth quarter was comfortably above one. This improved order rate and backlog position gives us increased confidence that revenue in the first quarter of fiscal 2010 will be flat to up on a sequential basis.”
In spite of initial signs of stabilization in customer demand, the global macroeconomic environment remains uncertain. As a result, IDT is taking further steps to reduce operating expenses. These additional cost reductions include:
· No bonus payments for the second half of fiscal 2009
· A salary freeze and no merit increases for fiscal 2010
· Suspension of the Company match for the 401(k) plan
· Required time off for salaried employees and further manufacturing shutdowns in fiscal Q1 2010
Webcast and Conference Call Information
IDT will discuss its financial results for the fiscal fourth quarter of 2009 and its projections for the first quarter of fiscal 2010 on its quarterly earnings call currently scheduled for April 30, 2009. 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 April 30, 2009. The webcast replay will be available after 5:00 p.m. Pacific time on April 30, 2009.
Investors can also listen to the live call at 1:30 p.m. Pacific time on April 30, 2009 by calling (800) 230-1085 or (612) 288-0329. The conference call replay will be available after 5:00 p.m. Pacific time on April 30, 2009 through 11:59 p.m. Pacific time on May 7, 2009 at (800) 475-6701 or (320) 365-3844. The access code is 993533.
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
This release contains forward-looking statements concerning revenue and non-GAAP earnings per share for the fiscal fourth quarter of 2009 which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “anticipates”, “would,” “may,” “will”, “expects,” “believes,” “plans,” “intends,” “projects,” and other terms with similar meaning. These forward-looking statements include statements about the following topics: our expectations regarding future financial results, including revenues, customer demand and inventories, turns-fill requirements, earnings per share, the effect of cost-reduction efforts, customer order patterns; and the nature of macro-economic and industry trends. 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 March 30, 2008 and Quarterly Report on Form 10-Q for the period ended December 28, 2008.
The Company presents non-GAAP financial measures because the financial 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 acquisition-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.
Reference to these non-GAAP results should be considered in addition to results that are prepared under current accounting standards, 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 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.