IDT Reports Fiscal Second Quarter 2009 Results (Revenue down 2%)
[ Back ]   [ More News ]   [ Home ]
IDT Reports Fiscal Second Quarter 2009 Results (Revenue down 2%)

SAN JOSE, Calif.—(BUSINESS WIRE)—October 23, 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 second quarter of 2009 ended September 28, 2008.

 

During our fiscal second quarter of 2009, we posted a greater than six percent sequential increase in revenue for the second consecutive quarter, said Ted Tewksbury, president and CEO of IDT. Strong growth in our computing end market was driven by increased sales of PC clock and PC Audio devices, while sales of timing solutions into our gaming segment enabled our consumer end market to grow double digits. However, like many semiconductor companies, our bookings slowed in late September and have remained below normal seasonal levels so far in October. This has reduced our visibility into end customer demand and makes it difficult to predict revenue for the third quarter.

The following highlights the Companys 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 managements 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.

Recent Highlights

The Company recently announced it:

Webcast and Conference Call Information

Investors can listen to a live or replay webcast of the Companys quarterly financial conference call at http://www.IDT.com. The live webcast will begin at 1:30 p.m. Pacific time on October 23, 2008. The webcast replay will be available after 5:00 p.m. Pacific time on October 23, 2008.

Investors can also listen to the live call at 1:30 p.m. Pacific time on October 23, 2008 by calling (800) 230-1059 or (612) 234-9959. The conference call replay will be available after 5:00 p.m. Pacific time on October 23, 2008 through 11:59 p.m. Pacific time on October 30, 2008 at (800) 475-6701 or (320) 365-3844. The access code is 963455.

About IDT

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 Companys Securities and Exchange Commission filings. The Company urges investors to review in detail the risks and uncertainties in the Companys 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 June 29, 2008.

Non-GAAP Reporting

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 IDTs results and may be useful. The Company has reconciled such 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 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.

INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
Sept 28, June 29, Sept. 30, Sept. 28, Sept. 30,
2008 2008 2007 2008 2007
Revenues $ 200,541 $ 188,208 $ 204,127 388,749 403,143
Cost of revenues 113,388 103,749 115,937 217,137 230,065
Gross profit 87,153 84,459 88,190 171,612 173,078
Operating expenses:
Research and development 41,532 43,619 41,876 85,151 86,575
Selling, general and administrative 32,211 32,965 43,615 65,176 88,729
Total operating expenses 73,743 76,584 85,491 150,327 175,304
Operating income (loss) 13,410 7,875 2,699 21,285 (2,226 )
Interest expense (15 ) (18 ) (28 ) (33 ) (69 )
Interest income and other, net 384 1,465 4,446 1,849 10,298
Income before income taxes 13,779 9,322 7,117 23,101 8,003
Provision for income taxes 2,104 168 2,358 2,272 4,340
Net income $ 11,675 $ 9,154 $ 4,759 20,829 3,663
Net income per share:
Basic $ 0.07 $ 0.05 $ 0.02 $ 0.12 $ 0.02
Diluted $ 0.07 $ 0.05 $ 0.02 $ 0.12 $ 0.02
Weighted average shares:
Basic 169,570 171,080 190,745 170,325 192,000
Diluted 169,752 171,366 195,923 170,586 196,914

 

INTEGRATED DEVICE TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(In thousands)
Three Months Ended Six Months Ended
Sept 28, June 29, Sept. 30, Sept. 28, Sept. 30,
2008 2008 2007 2008 2007
GAAP Net Income $ 11,675 $ 9,154 $ 4,759 $ 20,829 $ 3,663
GAAP Diluted Income Per Share $ 0.07 $ 0.05 $ 0.02 $ 0.12 $ 0.02
Acquisition Related:
Amortization of acquisition related intangibles 20,592 20,860 29,942 41,452 61,017
Acquisition related costs (1) (3 ) (3 ) 540 (6 ) 1,648
Restructuring Related:
Severance and retention costs 471 834 - 1,305 (9 )
Assembly transition costs (2) - - 193

-

468
Facility closure costs (3) 19 76 183 95 334
Other:
Stock-based compensation expense 8,642 8,129 11,800 16,771 23,630
Tax effects of Non-GAAP adjustments (4) 1,910 124 853 2,034 1,654
Non-GAAP Net Income $ 43,306 $ 39,174 $ 48,270 $ 82,480 $ 92,405
Non-GAAP Diluted Earnings Per Share $ 0.26 $ 0.23 $ 0.25 $ 0.48 $ 0.47
Weighted average shares:
Basic 169,570 171,080 190,745 170,325 192,000
Diluted 169,752 171,366 195,923 170,586 196,914
GAAP gross profit 87,153 84,459 88,190 171,612 173,078
Acquisition Related:
Amortization of acquisition related intangibles 14,570 14,771 15,614 29,341 31,244
Acquisition related costs (1) - - 442 - 895
Restructuring Related:
Severance and retention costs - 656 - 656 (9 )
Assembly transition costs (2) - - 193 - 468
Facility closure costs (3) 3 25 120 28 212
Other:
Stock-based compensation expense 1,184 786 1,189 1,970 2,242
Non-GAAP gross profit 102,910 100,697 105,748 203,607 208,130
GAAP R&D Expenses: 41,532 43,619 41,876 85,151 86,575
Acquisition Related:
Amortization of acquisition related intangibles (19 ) (19 ) (19 ) (38 ) (81 )
Acquisition related costs (1) 2 2 (77 ) 4 (173 )
Restructuring Related:
Severance and retention costs (453 ) (7 ) - (460 ) -
Facility closure costs (3) (16 ) (37 ) (36 ) (53 ) (77 )
Other:
Stock-based compensation expense (5,149 ) (5,152 ) (6,615 ) (10,301 ) (13,346 )
Non-GAAP R&D Expenses 35,897 38,406 35,129 74,303 72,898
GAAP SG&A Expenses: 32,211 32,965 43,615 65,176 88,729
Acquisition Related:
Amortization of acquisition related intangibles (6,003 ) (6,070 ) (14,309 ) (12,073 ) (29,692 )
Acquisition related costs (1) 1 1 (21 ) 2 (580 )
Restructuring Related:
Severance and retention costs (18 ) (171 ) - (189 ) -
Facility closure costs (3) - (14 ) (27 ) (14 ) (45 )
Other:
Stock-based compensation expense (2,309 ) (2,191 ) (3,996 ) (4,500 ) (8,042 )
Non-GAAP SG&A Expenses 23,882 24,520 25,262 48,402 50,370
GAAP Interest income and other, net 369 1,447 4,418 1,816 10,229
Non-GAAP Interest income and other, net 369 1,447 4,418 1,816 10,229
GAAP Provision for Income Taxes 2,104 168 2,358 2,272 4,340
Tax effects of Non-GAAP adjustments (4) (1,910 ) (124 ) (853 ) (2,034 ) (1,654 )
Non-GAAP Provision for Income Taxes 194 44 1,505 238 2,686

(1)  Consists of costs incurred in connection with merger and acquisition-related activities, including legal and accounting fees. Also includes costs associated with our merger with ICS, such as additional depreciation resulting from purchase accounting and costs associated with the exit of previously leased facilities.

(2)  Consists of the costs incurred as the Company transitioned its assembly operations in Malaysia to a third-party.

(3)  Consists of ongoing costs associated with the exit of our leased facilities.

(4)  Consists of the tax effects of acquisition-related non-GAAP adjustments.

 

INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
Sept 28, March 30,
(In thousands) 2008 2008
ASSETS
Current assets:
Cash and cash equivalents $ 186,071 $ 131,986
Short-term investments 121,443 107,205
Accounts receivable, net 88,254 83,091
Inventories 76,373 79,954
Deferred Taxes 4,853 4,853
Prepaid and other current assets 16,658 26,081
Total current assets 493,652 433,170
Property, plant and equipment, net 77,173 81,652
Goodwill 1,026,724 1,027,438
Acquisition-related intangibles 163,038 204,489
Other assets 32,143 36,504
TOTAL ASSETS $ 1,792,730 $ 1,783,253
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 45,321 $ 44,655
Accrued compensation and related expenses 27,177 26,621
Deferred income on shipments to distributors 22,377 24,312
Income taxes payable 755 150
Other accrued liabilities 21,866 19,978
Total current liabilities 117,496 115,716
Deferred tax liabilities 8,152 7,678
Long term income taxes payable 20,826 20,673
Other long term obligations 17,763 18,364
Total liabilities 164,237 162,431
Stockholders' equity 1,628,493 1,620,822
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,792,730 $ 1,783,253

 

 

 

 



Contact:

IDT Investor Relations
Mike Knapp, 408-284-6515 (Financial)
Email Contact
or
IDT Worldwide Marketing
Chad Taggard, 408-284-8200 (Press)
Email Contact