Exhibit 99.1
IDT Announces Results for First Quarter Fiscal Year 2004;
Company Posts 3 Percent Sequential Increase in Revenues
SANTA CLARA, Calif.--(BUSINESS WIRE)--July 17, 2003--IDT(TM)
(Integrated Device Technology, Inc.) (Nasdaq:IDTI), a leading
communications IC company, today announced results for the quarter
ended June 29, 2003, its first quarter of fiscal 2004.
Revenues for the first fiscal quarter were $83.0 million, an
increase of 2.8 percent compared to the fourth quarter of fiscal 2003
and a decrease of 9.5 percent from the quarter ended June 30, 2002. On
a pro-forma basis, the net loss for the first fiscal quarter was $4.8
million ($0.05 per diluted share), compared to a net loss of $23.6
million ($0.23 per diluted share) in the fourth quarter of fiscal 2003
and a net loss of $3.5 million ($0.03 per diluted share) for the
quarter one year ago.
Including certain costs, charges and gains in accordance with
GAAP, the Company lost $4.8 million in the first quarter of fiscal
2004 ($0.05 per diluted share) compared to a loss of $239.1 million in
the fourth quarter ($2.31 per diluted share) of fiscal 2003. One year
ago, on a GAAP basis, the Company recorded a net loss of $7.6 million
($0.07 per diluted share) for the first quarter of fiscal 2003.
Further information, including a detailed reconciliation of pro-forma
and GAAP results, is provided in the financial tables of this release.
"We are pleased to report another quarter of revenue growth, the
resumption of positive cash generation, and improved operating results
as well as a substantially improved inventory position," said Greg
Lang, president and CEO of IDT. "Our long-term prospects are
encouraging as the communications infrastructure moves from
circuit-switched to packet-based networks to address the growing
requirements of high-speed broadband connectivity, 3G wireless and
802.11 network access."
Q1FY04 Highlights:
-- IDT strengthened its leadership in the network search engine
(NSE) space, introducing the industry's highest performance
18-Mbit NSE in a 512x36 configuration. The monolithic NSE
operates up to 250 million searches per second (MSPS) and
features a unique simultaneous multi-database lookup (SMDL)
capability that enables designers to simultaneously search in
separate, mutually exclusive databases, increasing the search
rate to support multiple full-speed OC-192 packet searches per
instruction with a single device.
-- Addressing the need for greater security in the SOHO gateway
and wireless access markets, the Company introduced its
RC32365 Interprise(TM) integrated communications processor
with an embedded hardware security acceleration engine that
supports the latest security standards, including DES, 3DES
and the advanced encryption standard (AES). The new RC32365
processor incorporates a 32-bit MIPS(R) core operating up to
150 MHz, and integrates both a PCI and a PCMCIA interface to
allow a seamless connection to a range of peripherals and
chipsets, including wireless LAN (WLAN) solutions. IDT also
announced partnerships with security software vendor, Intoto,
as well as with security co-processor vendors, SafeNet and
Cavium Networks, to deliver complete SME/VPN
security-accelerated gateway platforms.
-- The Company continued its focus on emerging market segments in
Asia Pacific with key design wins in Taiwan. Senao
International selected the IDT RC32438 Interprise(TM)
integrated communications processor to power its new dual-band
wireless access points (WAP) and wireless routers designed for
802.11a-, 802.11b- and 802.11g-based networks.
-- Demonstrating its distinctive competencies in the integration
of advanced memory and logic architectures, IDT announced a
new category of value-added semiconductor devices that the
Company estimates can enable system architects to reduce
functional costs by up to 50 percent. The IDT flow-control
management ICs combine critical functions such as high-speed
buffering, switching, multiplexing/de-multiplexing, domain
transition and random and sequential access. These devices
meet the special requirements of system architects who need to
solve data-flow-control issues in their communications
equipment designs. The IDT family of off-the-shelf devices
replace traditional methods of muxing multiple data streams at
different data rates -- typically accomplished with a
multiplexer, multiple application-specific integrated circuits
(ASICs), field-programmable gate arrays (FPGAs), and external
SRAM, DRAM or FIFOs. The first products included in the IDT
portfolio of flow-control management devices include the
QuadMux and multi-queue flow-control ICs.
-- Addressing new challenges in communications line-card design,
IDT announced its new SuperJET(TM) family of J1/E1/T1
transceivers, including the industry's first monolithic octal
density device. The SuperJET transceivers, which integrate and
expand upon the IDT universal line interface unit (ULIU) and
framer functionality, deliver industry-leading configuration
flexibility, jitter performance and signaling support across
the family's octal, quad, dual and single densities.
-- IDT marked its entry into the high-precision clock generation
market with the introduction of its new precision clock
generation devices with patent-pending, phased-locked loop
(PLL) technology. The 5T940 clock generators achieve ultra-low
jitter generation of less than 0.5 psRMS, making them ideal
for Gigabit Ethernet and SONET applications up to OC-192.
-- IDT extended its leadership position in multi-port technology
with the introduction of the industry's first 9-Mbit
asynchronous true dual-port products. Unlike alternative
devices, these products operate at access times as low as
10ns, making them the fastest asynchronous dual-port ICs in
the industry. The products also offer a unique set of
features, including a 2.5-volt core for low power consumption,
selectable 2.5-and 3.3-volt I/O options for voltage bus
matching between two separate domains, and an innovative sleep
mode.
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 July 17, 2003. The Webcast replay will be
available after 4 p.m. PDT on July 17 through August 7, 2003. A taped
telephone replay of the conference call will be available at (800)
475-6701 (access code is 690577) beginning at 5 p.m. PDT on July 17
and will be accessible until 9 p.m. PDT on July 24, 2003.
Investor Information
IDT stock is traded on the Nasdaq Stock Market(R) 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.
About IDT
IDT enhances the global network with semiconductor solutions for
communications companies that lead innovation and drive convergence in
voice, data and wireless networks. IDT is focused on enhancing system
bandwidth with communications-specific products including network
search engines, content inspection engines, flow-control management
devices and the Interprise(TM) family of integrated communications
processors. The portfolio is also comprised of products optimized for
communications applications, including telecom products, FIFOs,
multi-ports, and clock management products. In addition, the product
mix includes high-performance digital logic and high-speed SRAMs to
meet the requirements of leading communications companies.
Headquartered in Santa Clara, Calif., the company employs
approximately 3,100 people worldwide and has a wafer manufacturing
facility in Oregon, and test and assembly facilities in the
Philippines and Malaysia.
Forward-looking statements in this release, including statements
made by our executive officers regarding the Company's business
prospects, involve a number of risks and uncertainties including, but
not limited to, global business and economic conditions, product
demand, manufacturing capacity and costs, competition, pricing, patent
and other intellectual property rights of third parties, timely
development and supply of new products and manufacturing processes,
cash flow and other risk factors detailed in the Company's Securities
and Exchange Commission filings. Actual results may differ materially
from the Company's projections.
IDT, Interprise, and SuperJET are trademarks and the IDT logo is a
registered trademark of Integrated Device Technology, Inc. Other
brands, product names and marks are trademarks, registered trademarks,
or trade names of their respective owners.
INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data) Three Months Ended
- ----------------------------------------------------------------------
Jun. 29, Mar. 30, Jun. 30,
2003 2003 2002
------------------------------
Revenues $ 83,045 $ 80,804 $ 91,812
Cost of revenues 48,724 60,893 57,003
Restructuring charges, asset impairment
and other -- 114,085 --
-------- --------- --------
Gross profit (loss) 34,321 (94,174) 34,809
-------- --------- --------
Operating expenses:
Research and development 25,366 39,357 30,241
Selling, general and administrative 18,325 20,557 20,582
-------- --------- --------
Total operating expenses 43,691 59,914 50,823
-------- --------- --------
Operating loss (9,370) (154,088) (16,014)
Interest expense (92) (111) (131)
Interest income and other, net 4,224 3,880 5,923
-------- --------- --------
Loss before income taxes (5,238) (150,319) (10,222)
Provision (benefit) for income taxes (486) 88,782 (2,632)
-------- --------- --------
Net loss $ (4,752) $(239,101) $ (7,590)
========= ========== =========
Net loss per share:
Basic $ (0.05) $ (2.31) $ (0.07)
Diluted $ (0.05) $ (2.31) $ (0.07)
Weighted average shares:
Basic 103,872 103,574 104,232
Diluted 103,872 103,574 104,232
INTEGRATED DEVICE TECHNOLOGY, INC.
PRO FORMA ADJUSTMENTS
(Unaudited)
(In thousands) Three Months Ended
- ----------------------------------------------------------------------
Jun. 29, Mar. 30, Jun. 30,
2003 2003 2002
----------------------------
Net loss $(4,752) $(239,101) $(7,590)
-------- ---------- --------
Non-GAAP adjustments:
Cost of goods sold:
Restructuring charges (1) 15 1,031 --
Asset impairment (2), (3) -- 113,054 --
Other (4) 282 288 3,637
Amortization of acquisition-related
charges (3) 234 909 786
Operating expenses:
Asset impairment (2) -- 8,329 --
Other (4) 36 9 478
Restructuring charges (1) 541 2,373 --
Other acquisition-related costs (3) 444 991 976
Other income (5) (722) -- --
Taxes (5) (849) 88,536 (1,763)
-------- ---------- --------
Total special items (19) 215,520 4,114
-------- ---------- --------
Pro forma net loss $(4,771) $(23,581) $(3,476)
======== ========== ========
(1) Q1 2004 includes non-recurring period costs, primarily facility
exit costs, related to final implementation of restructuring
activities originally announced in Q4 2003. Q4 2003 consists of
costs, primarily severance, of restructuring actions taken during
Q4 2003.
(2) We recorded impairment charges related to manufacturing assets,
principally our Hillsboro, Ore. fabrication plant, in Q4 2003.
(3) Costs relate to our acquisitions of Newave and Solidum in April
2001 and October 2002, respectively. Newave-related costs include
stock-based compensation, and amortization of intangible assets,
and (in Q4 2003 and Q1 2003 only) contingent compensation.
Solidum-related costs include amortization of intangible assets.
We also recorded an intangible asset impairment charge of $13.5
million in Q4 2003 related to Newave existing technology.
(4) Consist mostly of costs related to ceasing manufacturing
operations at our Salinas facility at the end of June 2002,
including $3.0 million in retention bonuses for Q1 2003.
(5) We recorded a valuation allowance of $88.5 million against our net
deferred tax assets in Q4 2003. In Q1 2004, we received a
non-recurring California state tax refund for the 1995 tax year
plus interest accrued thereon.
INTEGRATED DEVICE TECHNOLOGY, INC.
PRO FORMA STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data) Three Months Ended
- ----------------------------------------------------------------------
Jun. 29, Mar. 30, Jun. 30,
2003 2003 2002
----------------------------
Revenues $ 83,045 $ 80,804 $ 91,812
Cost of revenues 48,193 59,696 52,580
-------- -------- --------
Gross profit 34,852 21,108 39,232
-------- -------- --------
Operating expenses:
Research and development 24,592 29,354 29,161
Selling, general and administrative 18,078 18,858 20,208
-------- -------- --------
Total operating expenses 42,670 48,212 49,369
-------- -------- --------
Operating loss (7,818) (27,104) (10,137)
Interest expense (92) (111) (131)
Interest income and other, net 3,502 3,880 5,923
-------- -------- --------
Loss before income taxes (4,408) (23,335) (4,345)
Provision (benefit) for income taxes 363 246 (869)
-------- -------- --------
Net loss $ (4,771) $(23,581) $ (3,476)
======== ======== ========
Net loss per share:
Diluted $ (0.05) $ (0.23) $ (0.03)
Weighted average shares:
Diluted 103,872 103,574 104,232
Our pro forma results exclude acquisition-related charges and unusual
or infrequent expenses and benefits that management believes are not
directly related to our ongoing operations. We believe that these pro
forma results provide useful information; however, our presentation of
pro forma results is not in accordance with GAAP and may not be
comparable to pro forma information provided by other companies. Pro
forma 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)
Jun. 29, Mar. 30,
(In thousands) 2003 2003
- ----------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $166,365 $144,400
Short-term investments 404,258 410,425
Accounts receivable, net 42,705 40,111
Inventories 34,286 41,189
Prepayments and other current assets 23,161 29,420
--------- ---------
Total current assets 670,775 665,545
Property, plant and equipment, net 123,467 129,923
Goodwill and other intangibles 46,950 47,266
Other assets 38,401 38,578
--------- ---------
TOTAL ASSETS $879,593 $881,312
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 15,836 $ 17,514
Accrued compensation and related expenses 13,264 11,020
Deferred income on shipments to distributors 17,925 17,911
Income taxes payable 33,265 32,280
Other accrued liabilities 18,590 20,120
--------- ---------
Total current liabilities 98,880 98,845
Other liabilities 21,813 23,775
--------- ---------
Total liabilities 120,693 122,620
Stockholders' equity 758,900 758,692
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $879,593 $881,312
========= =========