SANTA CLARA, Calif., May 3, 2005 — IDT™ (Integrated Device Technology, Inc.; Nasdaq: IDTI), a leading communications IC company, today announced its results for the fourth fiscal quarter and full fiscal year ended April 3, 2005. The results announced were in line with the Company’s projections, and represented significant revenue and earnings per share growth on a year-to-year basis. The following outlines the Company’s financial performance on a GAAP and Non-GAAP basis:
- Revenues for the fourth fiscal quarter were $97 million, an increase of just over 1 percent compared to the third quarter of fiscal 2005 and an increase of 3 percent from the fourth quarter of fiscal 2004.
- Revenues for fiscal year 2005 were $391 million, an increase of 13 percent compared to the previous fiscal year.
- Non-GAAP net income for the fourth quarter of fiscal 2005 was $7 million, or $0.07 per diluted share, compared to net income of $6 million, or $0.06 per diluted share, in the third quarter of fiscal 2005 and net income of $9 million, or $0.08 per diluted share, for the same quarter one year ago.
- Non-GAAP net income for the full fiscal year 2005 was $35 million, or $0.33 per share, compared to net income of $7 million, or $0.07 per share, during the previous fiscal year.
- GAAP net income for the fourth quarter of fiscal 2005 was $6 million, or $0.06 per diluted share, compared to net income of $3 million, or $0.03 per diluted share, for the third quarter of fiscal 2005. GAAP net income for the fourth quarter of fiscal 2004 was $8 million, or $0.07 per diluted share.
- GAAP net income for full fiscal year 2005 was $13 million, or $0.12 per share, compared to net income of $6 million, or $0.06 per share, during the previous fiscal year.
- GAAP net income includes certain costs, charges and gains in accordance with GAAP. For example, the fourth quarter of fiscal 2005 GAAP results include a $6 million tax refund and a $2 million net tax benefit relating both to the partial settlement of an ongoing US tax audit and adjustments associated with the Company’s decision to close its Manila facilities. For a complete reconciliation of GAAP to Non-GAAP results see the attached tables.
“We are pleased with our fiscal year end results and are encouraged by a resumption of growth in the March quarter,” said Greg Lang, president and CEO of IDT. “We view this improvement as a positive indicator that inventory correction issues are largely behind us.”
Continuation of Profitability Measures
During the past 3 months, the Company has disclosed details of its financial restructuring efforts to further improve profitability. In January, the Company announced a reduction in force, consolidation of certain functions, and the consolidation of California operations into a new San Jose campus. In April, the Company announced the pending closure of its assembly and test facility in Manila, the Philippines, which when completed will result in a reduction in force of approximately 750 employees. The test and finish work currently performed at the Manila facility will be transferred to the Company’s assembly and test facility in Penang, Malaysia at or around June 2005. Certain assembly functions will be transferred to third party sub-contractors, planned for the end of September 2005. These actions are a result of the Company’s continued focus on improving profitability by fully utilizing its existing resources. In time, the combined effects of all these measures are projected to save approximately $5 to$6 million per quarter through the Company’s P&L.
“We are committed to continue strengthening our financial performance in fiscal 2006,” added Lang. “We believe we can achieve stronger results through the combination of our restructuring efforts and the anticipated revenue growth resulting from our investments in leading-edge products.”
Webcast and Conference Call Information
Investors can listen to a live or replay Webcast of the Company’s quarterly financial conference call at www.IDT.com. The live Webcast begins at 1:30 p.m. PDT on Tuesday, May 3, 2005. The Webcast replay will be available after 5 p.m. PDT on May 3 through May 25, 2005. A taped telephone replay of the conference call will be available on May 3, 2005 beginning at 5 p.m. PDT by calling (800) 475-6701 or (320) 365-3844 and will be accessible until 11:59 p.m. PDT on May 8, 2005. The access code is 776488.
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.
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. We urge 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 March 28, 2004, and the Quarterly Report on Form 10-Q for the quarter ended January 2, 2005.
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