Exhibit 99.1
IDT Reports Fiscal Third Quarter 2007 Results
Revenue up 28 Percent Year Over Year
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 23, 2007--IDT(TM) (Integrated
Device Technology, Inc.)(NASDAQ:IDTI), a leading provider of vital semiconductor
solutions, today announced results for the fiscal third quarter of 2007, ended
December 31, 2006. Revenue for the quarter was $206.2 million, up 28 percent
from the fiscal third quarter of 2006.
The following highlights the Company's 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
management's determination that they are not directly reflective of on-going
operations.
-- Revenue for the fiscal third quarter of 2007 was $206.2 million, up 28
percent from the same period one year ago and up slightly from the
second fiscal quarter of 2007.
-- GAAP net loss for the fiscal third quarter of 2007 was $1.9 million or
$0.01 per diluted share, an improvement of approximately $40 million
or $0.20 per share when compared to a GAAP net loss of $42.3 million
or $0.21 per diluted share in the same period one year ago. GAAP net
loss for the fiscal third quarter of 2007 was slightly higher than the
$0.7 million GAAP net loss in the previous quarter. Fiscal third
quarter 2007 GAAP results include $40.6 million of acquisition-related
charges (including $39.7 million in intangibles amortization and $0.9
million of other acquisition-related charges), and $11.2 million of
stock-based compensation.
-- Non-GAAP net income for the fiscal third quarter of 2007 was $51.7
million or $0.25 per diluted share, an improvement of about 86 percent
when compared to non-GAAP net income of $27.8 million or $0.14 per
diluted share in the same period one year ago. Non-GAAP net income was
down from $59.2 million or $0.29 per diluted share reported in the
fiscal second quarter of 2007. For further description and a complete
reconciliation of GAAP to non-GAAP results, please refer to the
attached tables.
-- GAAP gross profit for the fiscal third quarter of 2007 was $85.8
million, compared to GAAP gross profit of $86.7 million reported in
the fiscal second quarter of 2007. Non-GAAP gross profit for the
fiscal third quarter of 2007 was $109.6 million, compared to non-GAAP
gross profit of $114.1 million reported in the fiscal second quarter
of 2007.
-- GAAP R&D expense for the fiscal third quarter of 2007 was $43.5
million, compared to GAAP R&D expense of $40.9 million in the fiscal
second quarter of 2007. Non-GAAP R&D expense for the fiscal third
quarter of 2007 was $36.4 million, compared to non-GAAP R&D expense of
$33.0 million in the fiscal second quarter of 2007.
-- GAAP SG&A expense for the fiscal third quarter of 2007 was $46.8
million, compared to GAAP SG&A expense of $49.0 million in the fiscal
second quarter of 2007. Non-GAAP SG&A expense for the fiscal third
quarter of 2007 was $24.5 million, compared to non-GAAP SG&A expense
of $24.9 million in the fiscal second quarter of 2007.
"We are pleased to deliver our sixth consecutive quarter of revenue growth,
led by sales into our computing and consumer end markets," said Greg Lang,
president and CEO of IDT. "Strong growth from our advanced memory buffer and PC
audio products helped to offset weaker sales in our communications end market.
Amid a challenging market environment, we grew revenue in our fiscal third
quarter an impressive 28 percent year over year, driven by our investments in
innovative products and technologies. We believe these product ramps, combined
with a strong pipeline of new products, will enable IDT to continue to grow
faster than the overall semiconductor market in calendar 2007."
Board of Directors Approves New $200 million Share Repurchase Program
The IDT board of directors has approved a new $200 million share repurchase
program. The Company's prior share repurchase program of $100 million was
completed during the fiscal third quarter of 2007. Under the prior program, the
Company repurchased approximately 6.3 million shares.
Repurchases under the Company's new stock repurchase program may be made
from time-to-time in the open market and in negotiated transactions, including
block transactions or accelerated stock repurchase transactions, at times and at
prices considered appropriate by the Company. The repurchase program is
effective immediately and may be discontinued at any time. As of December 31,
2006, IDT had approximately 196 million shares outstanding and approximately
$291 million in cash and cash equivalents.
Webcast and Conference Call Information
Investors can listen to a live or replay webcast of the Company's quarterly
financial conference call at http://www.IDT.com. The live webcast will begin at
1:30 p.m. PT on January 23, 2007. The webcast replay will be available after 5
p.m. PT on January 23.
Investors can also listen to the live call at 1:30 p.m. PT on January 23 by
calling (888) 428-4480 or (612) 234-9960. The conference call replay will be
available after 5 p.m. PT on January 23 through 11:59 p.m. PT on January 30,
2007 at (800) 475-6701 or (320) 365-3844. The access code is 857480.
About IDT
IDT is a world leader in developing and delivering vital semiconductor
solutions that enable customers to accelerate innovation. IDT solutions help
customers solve complex system design challenges associated with the evolving
requirements of communications, computing and consumer applications. By
leveraging its system knowledge and extensive blend of technologies, IDT is able
to deliver essential solutions, including timing products, network search
engines, flow-control management ICs and products for standards-based serial
switching. Headquartered in San Jose, Calif., IDT has design, manufacturing and
sales facilities throughout the world. IDT stock is traded on the NASDAQ Global
Select Market(R) 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 Company's Securities and Exchange
Commission filings. The Company urges 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
April 2, 2006 and Quarterly Report on Form 10-Q for the period ended October 1,
2006.
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 Nine Months Ended
- ----------------------------------------------------------------------
Dec. 31, Oct. 1, Jan. 1, Dec. 31, Jan. 1,
2006 2006 2006 2006 2006
--------- --------- --------- --------- ---------
Revenues $206,196 $205,176 $160,792 596,908 360,319
Cost of revenues 120,406 118,506 115,194 340,213 236,289
--------- --------- --------- --------- ---------
Gross profit 85,790 86,670 45,598 256,695 124,030
--------- --------- --------- --------- ---------
Operating expenses:
Research and
development 43,474 40,878 36,229 123,941 91,766
Selling, general
and
administrative 46,791 48,987 47,844 143,771 92,562
Acquired in-
process research
and development - 500 (200) 500 2,300
--------- --------- --------- --------- ---------
Total operating
expenses 90,265 90,365 83,873 268,212 186,628
--------- --------- --------- --------- ---------
Operating loss (4,475) (3,695) (38,275) (11,517) (62,598)
Interest expense (59) (72) (61) (210) (135)
Other-than-
temporary
impairment of
investments - - - - (1,705)
Interest income and
other, net 4,027 3,905 3,005 11,268 10,074
--------- --------- --------- --------- ---------
Income (Loss)
before income
taxes (507) 138 (35,331) (459) (54,364)
Provision for
income taxes 1,433 801 6,957 3,708 804
--------- --------- --------- --------- ---------
Net Loss $ (1,940) $ (663) $(42,288) (4,167) (55,168)
========= ========= ========= ========= =========
Net loss per share:
Basic $ (0.01) $ (0.00) $ (0.21) $ (0.02) $ (0.38)
Diluted $ (0.01) $ (0.00) $ (0.21) $ (0.02) $ (0.38)
Weighted average
shares:
Basic 197,332 199,860 199,568 198,633 143,516
Diluted 197,332 199,860 199,568 198,633 143,516
INTEGRATED DEVICE TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(In thousands)
Three Months Ended Nine Months Ended
- ----------------------------------------------------------------------
Dec. 31, Oct. 1, Jan. 1, Dec. 31, Jan. 1,
2006 2006 2006 2006 2006
-------- -------- --------- --------- ---------
GAAP Net Loss $(1,940) $(663) $(42,288) $(4,167) $(55,168)
======== ======== ========= ========= =========
GAAP Diluted Loss Per
Share $(0.01) $(0.00) $(0.21) $(0.02) $(0.38)
======== ======== ========= ========= =========
Acquisition
Related:
Amortization
of
acquisition
related
intangibles
(1) 39,664 39,476 56,755 116,125 70,934
Inventory FMV
write-up (1) 207 2,006 5,539 3,722 10,480
Acquired In-
process
research and
development
(1) - 500 (200) 500 2,300
Acquisition
related
costs (2) 727 1,030 2,746 3,719 3,751
Restructuring
Related:
Reduction in
Force (3) 1,241 807 199 2,580 2,324
Facility
closure
costs (4) 232 322 327 761 11,580
Asset
impairment
(5) - 2,482 (168) 2,482 (824)
Other:
Stock-Based
Compensation
Expense (6) 11,178 13,231 - 35,419 -
Loss on
short-term
investments
(7) - - - - 2,597
Taxes affects
of Non-GAAP
adjustments
(8) 366 - 4,897 366 (3,473)
-------- -------- --------- --------- ---------
Non-GAAP Net Income $51,675 $59,191 $27,807 $161,507 $44,501
======== ======== ========= ========= =========
Non-GAAP Diluted
Earnings Per Share $0.25 $0.29 $0.14 $0.79 $0.31
======== ======== ========= ========= =========
Weighted average
shares:
Basic 197,332 199,860 199,568 198,633 143,516
Diluted 202,904 204,827 200,441 203,335 144,495
GAAP gross profit 85,790 86,670 45,598 256,695 124,030
-------- -------- --------- --------- ---------
Acquisition
Related:
Amortization
of
acquisition
related
intangibles
(1) 20,878 20,641 34,551 59,843 44,101
Inventory FMV
write-up (1) 207 2,006 5,539 3,722 10,480
Acquisition
related
costs (2) 515 323 914 1,570 978
Restructuring
Related:
Reduction in
Force (3) 1,001 733 30 1,834 945
Facility
closure
costs (4) 150 197 481 495 6,145
Asset
impairment
(5) - 2,482 (168) 2,482 (824)
Other:
Stock-Based
Compensation
Expense (6) 1,107 1,028 - 2,489 -
-------- -------- --------- --------- ---------
Non-GAAP gross profit 109,648 114,080 86,945 329,130 185,855
-------- -------- --------- --------- ---------
GAAP R&D Expenses: 43,474 40,878 36,229 123,941 91,766
-------- -------- --------- --------- ---------
Acquisition
Related:
Amortization
of
acquisition
related
intangibles
(1) (125) (125) (123) (375) (333)
Acquisition
related
costs (2) (148) (600) (1,759) (1,822) (2,688)
Restructuring
Related:
Reduction in
Force (3) (240) - (26) (559) (231)
Facility
closure
costs (4) (47) (71) (69) (152) (2,783)
Other:
Stock-Based
Compensation
Expense (6) (6,510) (7,087) - (19,321) -
-------- -------- --------- --------- ---------
Non-GAAP R&D Expenses 36,404 32,995 34,252 101,712 85,731
-------- -------- --------- --------- ---------
GAAP SG&A Expenses: 46,791 48,987 47,844 143,771 92,562
-------- -------- --------- --------- ---------
Acquisition
Related:
Amortization
of
acquisition
related
intangibles
(1) (18,661) (18,710) (22,081) (55,907) (26,500)
Acquisition
related
costs (2) (64) (107) (73) (327) (85)
Restructuring
Related:
Reduction in
Force (3) - (74) (143) (187) (1,148)
Facility
closure
costs (4) (35) (54) (116) (114) (2,823)
Other:
Stock-Based
Compensation
Expense (6) (3,561) (5,116) - (13,609) -
-------- -------- --------- --------- ---------
Non-GAAP SG&A
Expenses 24,470 24,926 25,431 73,627 62,006
-------- -------- --------- --------- ---------
GAAP Interest income
and other, net 3,968 3,833 2,944 11,058 8,234
-------- -------- --------- --------- ---------
Loss on
short-term
investments
(7) - - - - 2,597
Facility
closure
costs (4) - - (339) - (339)
Non-GAAP Interest
income and other,
net 3,968 3,833 2,605 11,058 10,492
-------- -------- --------- --------- ---------
GAAP Provision for
Income Taxes 1,433 801 6,957 3,708 804
-------- -------- --------- --------- ---------
Taxes affects
of Non-GAAP
adjustments
(8) (366) - (4,897) (366) 3,473
Non-GAAP Provision
for Income Taxes 1,067 801 2,060 3,342 4,277
-------- -------- --------- --------- ---------
(1) Consists of amortization charges of acquisition-related
intangible assets and the FMV adjustment of acquired inventory sold.
In addition, the nine month periods presented include acquired IPR&D
related to our acquisition of Sigmatel's PC audio business and
Integrated Circuit Systems (ICS) in Q2 2007 and Q2 2006,
respectively.
(2) Consists of costs incurred in connection with our merger with ICS
and the acquisition of Freescale assets in Q2 2006, such as
additional depreciation resulting from purchase accounting and costs
associated with the exit of previously leased facilities. In
addition, all periods presented include retention costs incurred in
connection with our acquisition of Zettacom.
(3) Consists of costs associated with restructuring actions initiated
by the Company, primarily composed of severance and retention costs.
(4) Consists of ongoing costs associated with the exit of our leased
facilities in Santa Clara and Salinas (Q1 2006) and the closure of
our manufacturing facility in the Philippines (Q1 2006).
(5) Q2 2007 consists of an impairment charge related to our
manufacturing facility in the Philippines. All other periods reflect
the exclusion of gains realized on the sale of assets at our former
manufacturing facility in Salinas, which were previously impaired.
(6) Consists of stock-based compensation expense resulting from our
adoption of SFAS 123R in Q1 2007.
(7) Consists of other-than-temporary impairment charges and losses on
the sale of securities incurred primarily as a result of our merger
with ICS.
(8) Consists of the tax effects of acquisition-related non-GAAP
adjustments. In addition, the nine months ended Q2 2006 consists of a
net reduction in income tax reserves as a result of partial
settlements with the IRS.
INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
Dec. 31, Apr. 2,
(In thousands) 2006 2006
- ---------------------------------------------------------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 174,544 $ 266,173
Short-term investments 116,158 29,800
Accounts receivable, net 96,668 90,882
Inventories 91,271 58,692
Deferred Taxes 326 4,085
Prepaid and other current assets 28,535 20,370
----------- -----------
Total current assets 507,502 470,002
Property, plant and equipment, net 95,399 108,663
Goodwill 1,038,976 1,010,659
Acquisition-related intangibles 353,749 427,772
Other assets 22,306 20,595
----------- -----------
TOTAL ASSETS $2,017,932 $2,037,691
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 51,750 $ 39,891
Accrued compensation and related expenses 23,864 23,198
Deferred income on shipments to distributors 33,972 29,797
Income taxes payable 16,675 29,119
Other accrued liabilities 22,656 25,633
----------- -----------
Total current liabilities 148,917 147,638
Deferred tax liabilities 13,289 16,273
Long term liabilities 18,000 15,581
----------- -----------
Total liabilities 180,206 179,492
Stockholders' equity 1,837,726 1,858,199
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,017,932 $2,037,691
=========== ===========
CONTACT: IDT Investor Relations
Mike Knapp, 408-284-6515 (Financial)
mike.knapp@idt.com
or
IDT Worldwide Marketing
Chad Taggard, 408-284-8200 (Press)
chad.taggard@idt.com