Exhibit 99.1
IDT Reports 9 Percent Revenue Growth in Fourth
Fiscal Quarter; IDT GAAP Earnings More Than Triple to $0.07 and
Non-GAAP Earnings Double to $0.08
SANTA CLARA, Calif.--(BUSINESS WIRE)--April 22, 2004--IDT(TM)
(Integrated Device Technology, Inc.) (Nasdaq:IDTI), a leading
communications IC company, today announced results for the fourth
fiscal quarter and full fiscal year ended March 28, 2004.
Revenues for the fourth quarter were $94.5 million, an increase of
9 percent compared to the third fiscal quarter of 2004 and an increase
of 17 percent from the fiscal quarter ended March 30, 2003. Revenues
for fiscal year 2004 were $345.4 million, an increase of approximately
1 percent compared to the previous fiscal year. On a non-GAAP basis,
net income for the fourth fiscal quarter was $9.3 million or $0.08 per
diluted share, compared to net income of $4.0 million, or $0.04 per
diluted share, in the third quarter of fiscal 2004 and a net loss of
$23.6 million or $0.23 per share for the same quarter one year ago.
Net income for the full fiscal year 2004 on a non-GAAP basis was $7.4
million or $0.07 per share, compared to a net loss of $53.2 million
($0.51 per share) during the previous fiscal year.
Including certain costs, charges and gains in accordance with
GAAP, the Company earned $7.7 million in the fourth quarter of fiscal
2004 or $0.07 per share. On a GAAP basis, one year ago the Company
recorded a net loss of $239.1 million ($2.31 per share) for the fourth
quarter, which includes restructuring charges. On a GAAP basis for
fiscal year 2004, net income was $6.4 million or $0.06 per share,
compared to a net loss of $277.9 million ($2.68 per share) during the
previous fiscal year. Further information, including a detailed
reconciliation of non-GAAP and GAAP results, is provided in the
financial tables of this release.
"We continued to experience a broad increase in demand, driven by
the deployment of wireless and IP network infrastructure," said Greg
Lang, president and CEO of IDT. "We are pleased with our improved
financial results this quarter with gross margins in excess of 50
percent and earnings that have more than doubled. While our near term
results strengthen, we continue to invest in a strong future with
continued leadership in packet processing and a new division focused
on serial switching solutions."
Recent Highlights:
-- Last week IDT announced its entrance into the serial switching
market with its planned acquisition of ZettaCom, Inc. Through
the creation of a new division focused on Advanced Switching
and PCI-Express technologies, IDT plans to accelerate the
shift from proprietary to standards-based serial switching and
bridging semiconductor solutions, and will make aggressive
investments in technology, products, partnerships and
standards.
-- IDT continued to build on its strength in network search
engines by achieving the highest revenues in the past six
quarters, and a 10 percent increase from the previous quarter.
Additionally, the Company surpassed the cumulative
three-million-units-shipped mark.
-- The Company introduced the industry's lowest-cost network
search engines that are ideally suited for cost-sensitive
applications in the enterprise and access markets. The
products operate at up to 100 million searches per second
(MSPS) and can achieve search rates up to 200 MSPS by
utilizing simultaneous multi-database lookup (SMDL), a feature
that allows for efficient multiple packet searches.
-- IDT announced the industry's first family of 1.8-volt
dual-port devices specifically developed for high-end,
power-sensitive wireless applications. The device family
targets those wireless platforms where multiple low-voltage
processors are used to address the ever-increasing processor
requirements for high-end wireless handset applications.
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 April 22, 2004. The Webcast replay will be
available after 4 p.m. PDT on April 22 through May 13, 2004. A taped
telephone replay of the conference call will be available at (800)
475-6701 (access code is 726742) beginning at 5 p.m. PDT on April 22
and will be accessible until 9 p.m. PDT on April 29, 2004.
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 is a global leader in preemptive semiconductor solutions that
accelerate packet processing for advanced network services. IDT serves
communications equipment vendors by applying its advanced hardware and
software technologies to create flexible, highly integrated solutions
that enhance the functionality and processing of network equipment.
IDT accelerates intelligent packet processing with products such as
switching solutions, network search engines (NSEs), programmable
content inspection engines (CIEs), flow-control management (FCM) ICs
and its family of Interprise(TM) integrated communications processors.
The portfolio also comprises products optimized for communications
applications, including telecom products, FIFOs, multi-ports, and
timing solutions. 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 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, 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. Actual results may differ materially from the
Company's projections.
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 Years Ended
------------------------------ --------------------
Mar. 28, Dec. 28, Mar. 30, Mar. 28, Mar. 30,
2004 2003 2003 2004 2003
--------- -------- --------- -------- ---------
Revenues $ 94,521 $ 87,100 $ 80,804 $345,443 $ 343,878
Cost of Revenues 48,065 45,625 60,893 184,615 226,693
Restructuring
charges, asset
impairment and
other - - 114,085 - 115,370
-------- -------- --------- -------- ---------
Gross profit (loss) 46,456 41,475 (94,174) 160,828 1,815
-------- -------- --------- -------- ---------
Operating expenses:
Research and
development 23,846 23,607 39,357 98,535 129,108
Selling,
general and
administrative 17,876 17,888 20,557 72,409 83,145
Acquired
in-process
research and
development - - - 264 2,670
-------- -------- --------- -------- ---------
Total operating
expenses 41,722 41,495 59,914 171,208 214,923
-------- -------- --------- -------- ---------
Operating income
(loss) 4,734 (20) (154,088) (10,380) (213,108)
Interest expense (65) (69) (111) (344) (514)
Gain (loss) on
equity
investments - - - 3,151 (6,557)
Interest income
and other, net 3,545 2,787 3,880 13,698 19,040
-------- -------- --------- -------- ---------
Income (loss)
before income
taxes 8,214 2,698 (150,319) 6,125 (201,139)
Provision
(benefit) for
income taxes 556 358 88,782 (271) 76,757
-------- -------- --------- -------- ---------
Net income (loss) 7,658 2,340 (239,101) 6,396 (277,896)
======== ======== ========= ======== =========
Net income (loss)
per share:
Basic $ 0.07 $ 0.02 $ (2.31) $ 0.06 $ (2.68)
Diluted $ 0.07 $ 0.02 $ (2.31) $ 0.06 $ (2.68)
Weighted average
shares:
Basic 105,432 104,915 103,574 104,607 103,520
Diluted 111,434 108,360 103,574 108,526 103,520
INTEGRATED DEVICE TECHNOLOGY, INC.
NON-GAAP ADJUSTMENTS
(Unaudited)
(In thousands)
Three Months Ended Years Ended
------------------------- ------------------
Mar. 28, Dec. 28, Mar. 30, Mar. 28, Mar. 30,
2004 2003 2003 2004 2003
------ ------ --------- ------- ---------
Net income (loss) $7,658 $2,340 $(239,101) $ 6,396 $(277,896)
------ ------ --------- ------- ---------
Non-GAAP adjustments:
Cost of goods sold:
Restructuring charges(1) - - 1,031 15 2,316
Asset impairment - - 113,054 - 113,054
Plant closure costs(2) 219 269 288 1,050 4,608
Amortization of
acquisition-related
intangibles(3) 573 603 909 1,767 3,390
Patent Settlement 334 - - 334 -
Operating expenses:
Asset impairment(4) - - 8,329 - 8,329
Acquired IPR&D(3) - - - 264 2,670
Plant closure costs(2) - - 9 36 385
Restructuring charges(1) 2 227 2,373 1,522 3,459
Amortization of
acquisition-related
intangibles(3) 518 517 991 1,971 4,191
(Gain) loss on equity
investments(5) - - - (3,151) 6,557
Other income(6) - 108 - (794) -
Taxes(6) - (108) 88,536 (2,038) 75,773
------ ------ --------- ------- ---------
Total Non-GAAP
adjustments 1,646 1,616 215,520 976 224,732
------ ------ --------- ------- ---------
Non-GAAP net income
(loss) 9,304 3,956 (23,581) 7,372 (53,164)
====== ====== ========= ======= =========
(1) Consists of costs, primarily severance, of restructuring actions
related to the restructuring activities announced in
FY 2004 and 2003.
(2) Consists of costs associated with the closure of our Salinas
plant.
(3) Consists of costs related to our Q2 2004 TCAM3 acquisition from
IBM and acquisitions of Newave and Solidum in Q1 2002 and
Q3 2003, respectively. Newave-related costs include stock-based
compensation, amortization of intangible assets, and (in the
years ended FY 2004 and FY 2003 only) contingent compensation.
TCAM3 and Solidum-related costs include only amortization of
intangible assets. The impairment charge of $13.5 million in
Q4 2003 related to Newave existing technology.
(4) Consists of impairment charges related to our manufacturing
assets, principally our Hillsboro, OR fabrication plant
(Q4 2003).
(5) YTD 2004 consists of the net gain realized on the sale of our
investment in PMC-Sierra Inc. YTD 2003 consists of an
other-than temporary impairment recorded on our investment in
PMC-Sierra Inc.
(6) In Q2 and Q1 2004, we received non-recurring federal and state
tax refunds for tax years prior to 1996 plus interest accrued
thereon. In Q4 2003, we established a valuation allowance to
reserve 100% of our deferred tax assets and ceased to recognize
any tax benefit associated with period losses.
INTEGRATED DEVICE TECHNOLOGY, INC.
NON-GAAP STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended Years Ended
----------------------------- ------------------
Mar. 28, Dec. 28, Mar. 30, Mar. 28, Mar. 30,
2004 2003 2003 2004 2003
-------- -------- -------- -------- --------
Revenues $ 94,521 $ 87,100 $ 80,804 $345,443 $343,878
Cost of Revenues 46,939 44,753 59,696 181,449 218,695
-------- -------- -------- -------- --------
Gross profit 47,582 42,347 21,108 163,994 125,183
-------- -------- -------- -------- --------
Operating expenses:
Research and
development 23,485 23,210 29,354 96,548 115,810
Selling, general
and
administrative 17,717 17,541 18,858 70,867 80,079
-------- -------- -------- -------- --------
Total operating
expenses 41,202 40,751 48,212 167,415 195,889
-------- -------- -------- -------- --------
Operating income
(loss) 6,380 1,596 (27,104) (3,421) (70,706)
Interest expense (65) (69) (111) (344) (514)
Interest income and
other, net 3,545 2,895 3,880 12,904 19,040
-------- -------- -------- -------- --------
Income (loss) before
income taxes 9,860 4,422 (23,335) 9,139 (52,180)
Provision for income
taxes 556 466 246 1,767 984
-------- -------- -------- -------- --------
Net income (loss) 9,304 3,956 (23,581) 7,372 (53,164)
======== ======== ======== ======== ========
Net income (loss)
per share:
Diluted $ 0.08 $ 0.04 $ (0.23) $ 0.07 $ (0.51)
Weighted average shares:
Diluted 111,434 108,360 103,574 108,526 103,520
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)
(In thousands)
Mar. 28, Mar. 30,
2004 2003
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $223,360 $144,400
Short-term investments 384,854 410,425
Accounts receivable, net 53,091 40,111
Inventories 32,745 41,189
Prepaids and other current assets 12,101 29,420
-------- --------
Total current assets 706,151 665,545
Property, plant and equipment, net 108,424 129,923
Goodwill and other intangibles 52,784 47,266
Other assets 38,194 38,578
-------- --------
TOTAL ASSETS $905,553 $881,312
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 20,190 $ 17,514
Accrued compensation and related expenses 11,560 11,020
Deferred income on shipments to distributors 21,411 17,911
Income taxes payable 33,267 32,280
Other accrued liabilities 19,250 20,120
-------- --------
Total current liabilities 105,678 98,845
Long term liabilities 15,651 23,775
-------- --------
Total liabilities 121,329 122,620
Stockholders' equity 784,224 758,692
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $905,553 $881,312
======== ========
CONTACT: IDT
Tom McCallum, 408-654-6515 (Investor Relations)
ir@idt.com
Diana Pailthorpe, 408-492-8210 (Corporate Communications)
diana.pailthorpe@idt.com
or
Porter Novelli
Brad Langley, 408-369-4636
brad.langley@porternovelli.com