IDT Reports Fiscal Q1 2006 Results; Fiscal Q1 2006 Non-GAAP EPS of $0.05, GAAP EPS of $0.06 on Revenues of $93.8 Million


IDT, Interprise 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.


                  INTEGRATED DEVICE TECHNOLOGY, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                             (Unaudited)
(In thousands, except per share data)

                                               Three Months Ended
----------------------------------------------------------------------
                                           July 3,   Apr. 3  June 27,
                                             2005     2005      2004
                                           -------- -------- ---------

Revenues                                   $93,838  $97,004  $101,307
Cost of revenues                            51,596   47,321    48,361
Restructuring charges, asset impairment
 and other                                    (451)   2,961      (209)
                                           -------- -------- ---------
Gross profit                                42,693   46,722    53,155
                                           -------- -------- ---------
Operating expenses:
  Research and development                  27,456   25,914    26,001
  Selling, general and administrative       19,061   20,537    19,387
  Acquired in-process research
    and development                              -       65     1,736
                                           -------- -------- ---------
Total operating expenses                    46,517   46,516    47,124
                                           -------- -------- ---------
Operating income (loss)                     (3,824)     206     6,031
Interest expense                               (11)     (16)      (47)
Loss on equity investments                       -        -   (12,831)
Other-than-temporary impairment of
 investments                                (1,705)       -         -
Interest income and other, net               3,902    3,377     2,505
                                           -------- -------- ---------
Income (loss) before income taxes           (1,638)   3,567    (4,342)
Provision (benefit) for income taxes        (8,218)  (2,612)      705
                                           -------- -------- ---------
Net income (loss)                           $6,580   $6,179   $(5,047)
                                           ======== ======== =========

Net income (loss) per share:
Basic                                        $0.06    $0.06    $(0.05)
Diluted                                      $0.06    $0.06    $(0.05)
Weighted average shares:
Basic                                      106,474  105,325   106,026
Diluted                                    108,058  107,190   106,026



                  INTEGRATED DEVICE TECHNOLOGY, INC.
                         NON-GAAP ADJUSTMENTS
                             (Unaudited)
(In thousands)
                                                   Three  Months  Ended
----------------------------------------------------------------------
                                                                                          July  3,    Apr.  3,  June  27,
                                                                                                                  
                                                                                              2005          2005          2004
                                                                                          ----------------  --------

Net  income  (loss)                                                        $6,580      $6,179    $(5,047)
                                                                                          ----------------  --------
Non-GAAP  adjustments:
Cost  of  goods  sold:
    Acquisition  Related:
          Amortization  and  impairment  of
            acquisition-related  intangibles  (1)          1,407        2,131        1,014
    Restructuring  Related:
          Restructuring  charges  (2)                                    518        3,208              25
          Facility  closure  costs  (4)                              2,252              20            195
    Other:
          Asset  impairment  (3)                                            (564)        (610)        (209)
          Sales  tax  refund  (5)                                                  -      (4,175)              -
          Patent  settlement                                                        -                -            (18)
Operating  expenses:
    Acquisition  Related:
          Acquired  IPR&D  (1)                                                      -              65        1,736
          Amortization  of  acquisition-
            related  intangibles  (1)                                      322            429            538
          Acquisition  related  costs  (6)                            498            463            592
    Restructuring  Related:
          Restructuring  charges  (2)                                    755        3,490            652
          Facility  closure  costs  (4)                                  702                -                -
    Other:
          Sales  tax  refund  (5)                                                  -      (1,442)              -
          Loss  on  equity  investments  (7)                              -                -      12,831
          Other-than-temporary  impairment  on
            short-term  investments  (8)                            1,705                -                -
          Taxes  (9)                                                              (8,712)    (2,341)          (28)
                                                                                          ----------------  --------
Total  Non-GAAP  adjustments                                      (1,117)      1,238      17,328
                                                                                          ----------------  --------
Non-GAAP  net  income                                                    $5,463      $7,417    $12,281
                                                                                          ================  ========


(1)  Consists  of  costs  related  to  our  acquisition  of  Zettacom  in  Q1
        2005,  TCAM3  acquisition  from  IBM  in  Q2  2004  and  acquisitions  of
        Newave  and  Solidum  in  Q1  2002  and  Q3  2003,  respectively.
        Newave-related  costs  include  stock-based  compensation  and
        amortization  of  intangible  assets.  Zettacom,  TCAM3  and
        Solidum-related  costs  include  only  amortization  of  intangible
        assets.
(2)  Q4  2005  and  Q1  2006  consist  of  costs  for  restructuring  actions
        taken  during  the  past  two  quarters,  primarily  composed  of
        severance  and  retention  payments.  Q1  2005  consists  of
        restructuring  actions  taken  in  the  period,  composed  primarily  of
        severance.
(3)  Consists  of  gains  realized  on  the  sale  of  assets  related  to  our
        closed  Salinas  facility  which  were  previously  impaired.
(4)  Q1  2006  consists  of  costs  associated  with  the  closure  of  our
        Manila  plant,  primarily  composed  of  severance  and  retention
        payments,  and  costs  associated  with  the  exit  of  buildings  at  our
        Santa  Clara  facility.  Q1  05  consists  of  costs  associated  with  the
        closure  of  our  Salinas  plant.
(5)  Consists  of  a  sales  tax  refund  received  in  Q4  2005  related  to  the
        Manufacturers  Investment  Credit.
(6)  Consists  primarily  of  transitional  costs  incurred  in  connection
        with  the  acquisition  of  Zettacom,  such  as  retention  earned  by
        former  Zettacom  employees,  rent  payments  for  the  former  Zettacom
        facility,  and  transitional  services  provided.
(7)  Consists  of  an  impairment  charge  in  Q1  2005  related  to  our
        investment  in  NetLogic.
(8)  Consists  of  an  other-than-temporary  impairment  charge  related  to
        certain  short-term  investments.
(9)  Q1  2006  and  Q4  2005  consists  of  a  net  reduction  in  income  tax
        reserves  as  a  result  of  partial  settlements  with  the  IRS.  In
        addition,  Q4  2005  includes  tax  effects  of  the  Manila  plant  closure
        announcement.


                                    INTEGRATED  DEVICE  TECHNOLOGY,  INC.
                                      NON-GAAP  STATEMENTS  OF  OPERATIONS
                                                            (Unaudited)
                                  (In  thousands,  except  per  share  data)
                                                                                              Three  Months  Ended
----------------------------------------------------------------------
                                                                                      July  3,    Apr.  3,    June  27,
                                                                                            2005          2005            2004
                                                                                      --------  --------  ---------

Revenues                                                                      $93,838    $97,004    $101,307
Cost  of  revenues                                                        47,532      49,708        47,145
                                                                                      --------  --------  ---------
Gross  profit                                                                46,306      47,296        54,162
                                                                                      --------  --------  ---------
Operating  expenses:
    Research  and  development                                    26,196      25,281        24,950
    Selling,  general  and  administrative              18,044      18,230        18,656
                                                                                      --------  --------  ---------
Total  operating  expenses                                        44,240      43,511        43,606
                                                                                      --------  --------  ---------
Operating  income                                                          2,066        3,785        10,556
Interest  expense                                                              (11)          (16)            (47)
Interest  income  and  other,  net                              3,902        3,376          2,505
                                                                                      --------  --------  ---------
Income  before  income  taxes                                      5,957        7,145        13,014
Provision  (benefit)  for  income  taxes                      494          (272)            733
                                                                                      --------  --------  ---------
Net  income                                                                    $5,463      $7,417      $12,281
                                                                                      ========  ========  =========


Net  income  per  share:
Diluted                                                                            $0.05        $0.07          $0.11
Weighted  average  shares:
Diluted                                                                        108,058    107,190      110,344


Non-GAAP  results  exclude  acquisition-related  charges  and  other
expenses  and  benefits  that  management  believes  are  not  directly
related  to  our  ongoing  operations.  These  non-GAAP  results  are
consistent  with  another  way  management  internally  analyzes  IDT's
results  and  may  be  useful;  however,  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.


                                    INTEGRATED  DEVICE  TECHNOLOGY,  INC.
                                  CONDENSED  CONSOLIDATED  BALANCE  SHEETS
                                                            (Unaudited)

                                                                                                        July  3,      Apr.  3
(In  thousands)                                                                                2005            2005
----------------------------------------------------------------------

ASSETS
Current  assets:
Cash  and  cash  equivalents                                                    $266,563    $188,761
Short-term  investments                                                            333,758      392,472
Accounts  receivable,  net                                                          49,915        52,948
Inventories                                                                                    37,318        37,331
Prepaids  and  other  current  assets                                        11,696        11,292
                                                                                                      -------------------
Total  current  assets                                                                699,250      682,804

Property,  plant  and  equipment,  net                                    120,949      124,570
Goodwill                                                                                          55,523        55,523
Acquisition-related  intangibles                                            28,083        29,812
Other  assets                                                                                    9,503          9,431
                                                                                                      -------------------
TOTAL  ASSETS                                                                              $913,308    $902,140
                                                                                                      ===================


LIABILITIES  AND  STOCKHOLDERS'  EQUITY
Current  liabilities:
Accounts  payable                                                                        $25,900      $18,726
Accrued  compensation  and  related  expenses                        14,041        15,293
Deferred  income  on  shipments  to  distributors                  17,283        19,478
Income  taxes  payable                                                                  16,644        25,722
Other  accrued  liabilities                                                        18,959        20,206
                                                                                                      -------------------
Total  current  liabilities                                                        92,827        99,425

Long  term  liabilities                                                                15,478        15,599
                                                                                                      -------------------
Total  liabilities                                                                        108,305      115,024

Stockholders'  equity                                                                805,003      787,116
                                                                                                      -------------------
TOTAL  LIABILITIES  AND  STOCKHOLDERS'  EQUITY                  $913,308    $902,140
                                                                                                      ===================
 





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