Exhibit 99.1
IDT Reports Fiscal Fourth Quarter and Year End 2007 Results
-- 52 Percent Revenue Increase Year-Over-Year
-- 184 Percent Non-GAAP Net Income Increase Year-Over-Year
-- GAAP Net Loss Improves 91 Percent
-- Over $200 Million in Operating Cash Flow Generation
Business Editors/High-Tech Editors
SAN JOSE, Calif.--(BUSINESS WIRE)--April 26, 2007--IDT(TM)
(Integrated Device Technology, Inc.) (NASDAQ:IDTI), a leading provider
of vital semiconductor solutions, today announced results for the
fiscal fourth quarter and year ended April 1, 2007.
"Fiscal 2007 was an excellent year for IDT. We broke the $800
million revenue mark as we delivered seven consecutive quarters of
revenue growth," stated Greg Lang, president and CEO of IDT. "In
addition, our non-GAAP EPS has more than doubled from fiscal year
2006."
Year-over-year highlights include:
FY07 FY06 %
$ Change Change
Revenue $803.6 million $527.8 million $275.8 million 52%
Non-GAAP Net
Income $213.7 million $75.2 million $138.5 million 184%
Non-GAAP EPS(a) $1.05 $0.47 $0.58 123%
GAAP Net Loss ($7.6) million ($81.7) million $74.1 million 91%
GAAP EPS ($0.04) ($0.52) $0.48 92%
(a) Fully diluted
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. A
complete reconciliation of GAAP to non-GAAP results is attached to
this press release.
-- Revenue for the fiscal fourth quarter of 2007 was $206.7
million, up 23 percent from the same period one year ago and
up slightly from the third fiscal quarter of 2007. Revenue for
fiscal year 2007 was $803.6 million, up 52 percent from fiscal
year 2006. Revenue for fiscal 2007 included the full effects
of the merger with Integrated Circuit Systems, Inc. as
compared to the inclusion of only six and a half months of
revenue in fiscal 2006. Adjusting for this partial year would
result in approximately 27 percent revenue growth year over
year.
-- GAAP net loss for the fiscal fourth quarter of 2007 was $3.4
million or $0.02 per diluted share, compared to a GAAP net
loss of $26.5 million or $0.13 per diluted share in the same
period one year ago. Fiscal fourth quarter 2007 GAAP results
include $39.9 million of acquisition-related charges
(including $39.3 million in amortization of intangibles and
$600 thousand of other acquisition-related charges), $11.1
million of stock-based compensation, and $4.4 million of
restructuring and impairment related charges. GAAP net loss
for fiscal year 2007 was $7.6 million, an improvement of $74.1
million as compared with a GAAP net loss of $81.7 million in
fiscal year 2006.
-- Non-GAAP net income for the fiscal fourth quarter of 2007 was
$52.2 million or $0.26 per diluted share, an improvement of 70
percent when compared to non-GAAP net income of $30.7 million
or $0.15 per diluted share in the same period one year ago.
Non-GAAP net income for fiscal year 2007 was $213.7 million or
$1.05 per diluted share, an improvement of 123 percent in
earnings per share when compared to $75.2 million or $0.47 per
diluted share in fiscal year 2006.
-- GAAP gross profit for the fiscal fourth quarter of 2007 was
$84.0 million, compared to GAAP gross profit of $53.5 million
in the same period one year ago. Non-GAAP gross profit for the
fiscal fourth quarter of 2007 was $110.2 million, compared to
non-GAAP gross profit of $92.2 million reported in the same
period one year ago. GAAP gross profit for fiscal 2007 was
$340.6 million, compared to $177.6 million for fiscal 2006.
Non-GAAP gross profit was $439.4 million for fiscal 2007,
compared to $278.2 million for fiscal 2006.
-- GAAP R&D expense for the fiscal fourth quarter of 2007 was
$42.5 million, compared with GAAP R&D expense of $35.8 million
in the same period one year ago. Non-GAAP R&D expense for the
fiscal fourth quarter of 2007 was $36.0 million, compared to
non-GAAP R&D expense of $34.9 million in the same period one
year ago. GAAP R&D expense for fiscal 2007 was $166.4 million,
compared to $127.6 million for fiscal 2006. Non-GAAP R&D
expense for fiscal 2007 was $137.7 million, compared to $120.6
million in fiscal 2006.
-- GAAP SG&A expense for the fiscal fourth quarter of 2007 was
$47.4 million, compared to GAAP SG&A expense of $50.0 million
in the same period one year ago. Non-GAAP SG&A expense for the
fiscal fourth quarter of 2007 was $24.9 million, compared to
non-GAAP SG&A expense of $26.4 million in the same period one
year ago. GAAP SG&A expense for fiscal 2007 was $191.2
million, compared to $142.5 million for fiscal 2006. Non-GAAP
SG&A expense for fiscal 2007 was $98.5 million, compared to
$88.4 million for fiscal 2006.
"We will continue investing in new technologies and products,
which will allow us to build additional growth platforms and push us
towards becoming a billion dollar company. I'm extremely proud of our
employees who continue to focus and deliver great results for IDT, our
customers and our shareholders," Mr. Lang continued.
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 April 26, 2007. The webcast
replay will be available after 5 p.m. PT on April 26.
Investors can also listen to the live call at 1:30 p.m. PT on
April 26 by calling (888) 276-0007 or (612) 332-0107. The conference
call replay will be available after 5 p.m. PT on April 26 through
11:59 p.m. PT on May 3, 2007 at (800) 475-6701 or (320) 365-3844. The
access code is 868755.
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
December 31, 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 Twelve Months Ended
- ----------------------------------------------------------------------
April 1, Dec. 31, April 2, April 1, April 2,
2007 2006 2006 2007 2006
---------- --------- --------- --------- ---------
Revenues $206,688 $206,196 $167,459 803,596 527,778
Cost of revenues 122,734 120,406 113,922 462,948 350,211
---------- --------- --------- --------- ---------
Gross profit 83,954 85,790 53,537 340,648 177,567
---------- --------- --------- --------- ---------
Operating
expenses:
Research and
development 42,492 43,474 35,825 166,433 127,591
Selling, general
and
administrative 47,440 46,791 49,956 191,211 142,518
Acquired in-
process
research and
development - - - 500 2,300
---------- --------- --------- --------- ---------
Total operating
expenses 89,932 90,265 85,781 358,144 272,409
---------- --------- --------- --------- ---------
Operating loss (5,978) (4,475) (32,244) (17,496) (94,842)
Interest expense (53) (59) (87) (263) (222)
Other-than-
temporary
impairment of
investments - - - - (1,705)
Interest income
and other, net 3,942 4,027 2,586 15,211 12,660
---------- --------- --------- --------- ---------
Loss before income
taxes (2,089) (507) (29,745) (2,548) (84,109)
Provision
(Benefit) for
income taxes 1,322 1,433 (3,205) 5,030 (2,401)
---------- --------- --------- --------- ---------
Net Loss $ (3,411) $ (1,940) $(26,540) (7,578) (81,708)
========== ========= ========= ========= =========
Net loss per
share:
Basic $ (0.02) $ (0.01) $ (0.13) $ (0.04) $ (0.52)
Diluted $ (0.02) $ (0.01) $ (0.13) $ (0.04) $ (0.52)
Weighted average
shares:
Basic 196,527 197,332 198,830 198,106 157,345
Diluted 196,527 197,332 198,830 198,106 157,345
INTEGRATED DEVICE TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(In thousands)
Three Months Ended Twelve Months Ended
- ----------------------------------------------------------------------
April 1, Dec. 31, April 2, April 1, April 2,
2007 2006 2006 2007 2006
--------- ---------- --------- --------- ---------
GAAP Net Loss $ (3,411) $ (1,940) $(26,540) $ (7,578) $(81,708)
========= ========== ========= ========= =========
GAAP Diluted Loss
Per Share $ (0.02) $ (0.01) $ (0.13) $ (0.04) $ (0.52)
========= ========== ========= ========= =========
Acquisition
Related:
Amortization
of
acquisition
related
intangibles
(1) 39,263 39,664 56,537 155,388 127,470
Inventory FMV
write-up (1) - 207 2,868 3,722 13,348
Acquired In-
process
research and
development
(1) - - - 500 2,300
Acquisition
related
costs (2) 592 727 1,375 4,311 5,126
Restructuring
Related:
Reduction in
Force (3) 407 814 1,081 2,560 3,405
Assembly
Transition
Costs (4) 1,935 427 - 2,362 -
Facility
closure
costs (5) 187 232 1,251 948 12,832
Asset
impairment
(6) 1,915 - (11) 4,397 (835)
Other:
Stock-Based
Compensation
Expense (7) 11,085 11,178 - 46,504 -
Loss on
short-term
investments
(8) - - - - 2,597
Taxes affects
of Non-GAAP
adjustments
(9) 235 366 (5,881) 601 (9,354)
--------- ---------- --------- --------- ---------
Non-GAAP Net
Income $ 52,208 $ 51,675 $ 30,680 $213,715 $ 75,181
========= ========== ========= ========= =========
Non-GAAP Diluted
Earnings Per
Share $ 0.26 $ 0.25 $ 0.15 $ 1.05 $ 0.47
========= ========== ========= ========= =========
Weighted average
shares:
Basic 196,527 197,332 198,830 198,106 157,345
Diluted 202,007 202,904 205,582 202,959 159,450
GAAP gross profit 83,954 85,790 53,537 340,648 177,567
--------- ---------- --------- --------- ---------
Acquisition
Related:
Amortization
of
acquisition
related
intangibles
(1) 20,477 20,878 33,616 80,320 77,716
Inventory FMV
write-up (1) - 207 2,868 3,722 13,348
Acquisition
related
costs (2) 417 515 739 1,987 1,717
Restructuring
Related:
Reduction in
Force (3) 214 574 926 1,621 1,871
Assembly
Transition
Costs (4) 1,935 427 - 2,362 -
Facility
closure
costs (5) 76 150 510 571 6,824
Asset
impairment
(6) 1,915 - (11) 4,397 (835)
Other:
Stock-Based
Compensation
Expense (7) 1,251 1,107 - 3,740 -
--------- ---------- --------- --------- ---------
Non-GAAP gross
profit 110,239 109,648 92,185 439,368 278,208
--------- ---------- --------- --------- ---------
GAAP R&D Expenses: 42,492 43,474 35,825 166,433 127,591
--------- ---------- --------- --------- ---------
Acquisition
Related:
Amortization
of
acquisition
related
intangibles
(1) (125) (125) (124) (500) (457)
Acquisition
related
costs (2) (218) (148) (561) (2,040) (3,249)
Restructuring
Related:
Reduction in
Force (3) (125) (240) 198 (684) (33)
Facility
closure
costs (5) (65) (47) (421) (217) (3,204)
Other:
Stock-Based
Compensation
Expense (7) (5,979) (6,510) - (25,300) -
--------- ---------- --------- --------- ---------
Non-GAAP R&D
Expenses 35,980 36,404 34,917 137,692 120,648
--------- ---------- --------- --------- ---------
GAAP SG&A
Expenses: 47,440 46,791 49,956 191,211 142,518
--------- ---------- --------- --------- ---------
Acquisition
Related:
Amortization
of
acquisition
related
intangibles
(1) (18,661) (18,661) (22,797) (74,568) (49,297)
Acquisition
related
costs (2) 43 (64) (76) (284) (161)
Restructuring
Related:
Reduction in
Force (3) (68) - (352) (255) (1,500)
Facility
closure
costs (5) (46) (35) (320) (160) (3,143)
Other:
Stock-Based
Compensation
Expense (7) (3,855) (3,561) - (17,464) -
--------- ---------- --------- --------- ---------
Non-GAAP SG&A
Expenses 24,853 24,470 26,411 98,480 88,417
--------- ---------- --------- --------- ---------
GAAP Interest
income and other,
net 3,889 3,968 2,499 14,948 10,733
--------- ---------- --------- --------- ---------
Loss on
short-term
investments
(8) - - - - 2,597
Facility
closure
costs (5) - - - - (339)
Non-GAAP Interest
income and other,
net 3,889 3,968 2,499 14,948 12,991
--------- ---------- --------- --------- ---------
GAAP Provision
(Benefit) for
Income Taxes 1,322 1,433 (3,205) 5,030 (2,401)
--------- ---------- --------- --------- ---------
Taxes affects
of Non-GAAP
adjustments
(9) (235) (366) 5,881 (601) 9,354
Non-GAAP Provision
for Income Taxes 1,087 1,067 2,676 4,429 6,953
--------- ---------- --------- --------- ---------
(1) Consists of amortization charges of acquisition-related
intangible assets and the FMV adjustment of acquired inventory
sold. In addition, the twelve month periods presented include acquired
IPR&D related to our acquisition of Sigmatel's PC audio business and
merger with 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 severance and retention costs.
(4) Consists of incremental costs incurred as the Company
transitions its assembly operations in Malaysia to a third-party.
(5) 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).
(6) Fiscal 2007 consists of impairment charges related to our
manufacturing facility in the Philippines. Fiscal 2006 reflects the
exclusion of gains realized on the sale of assets at our former
manufacturing facility in Salinas, which were previously impaired.
(7) Consists of stock-based compensation expense resulting from
our adoption of SFAS 123R.
(8) Consists of other-than-temporary impairment charges and losses
on the sale of securities incurred primarily as a result of our merger
with ICS.
(9) Consists of the tax effects of acquisition-related non-GAAP
adjustments. In addition, the nine months ended Q3 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)
April 1, Apr. 2,
(In thousands) 2007 2006
- ----------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 246,589 $ 266,173
Short-term investments 113,344 29,800
Accounts receivable, net 89,986 90,882
Inventories 85,076 58,692
Deferred Taxes 318 4,085
Prepaid and other current assets 18,484 20,370
----------------------
Total current assets 553,797 470,002
Property, plant and equipment, net 93,058 108,663
Goodwill 1,038,064 1,010,659
Acquisition-related intangibles 314,484 427,772
Other assets 24,386 20,595
----------------------
TOTAL ASSETS $2,023,789 $2,037,691
======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 47,854 $ 39,891
Accrued compensation and related expenses 30,882 23,198
Deferred income on shipments to distributors 34,343 29,797
Income taxes payable 22,050 29,119
Other accrued liabilities 20,034 25,633
----------------------
Total current liabilities 155,163 147,638
Deferred tax liabilities 13,535 16,273
Long term liabilities 16,001 15,581
----------------------
Total liabilities 184,699 179,492
Stockholders' equity 1,839,090 1,858,199
----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,023,789 $2,037,691
======================
CONTACT: IDT Investor Relations
Mike Knapp, 408-284-6515 (Financial Contact)
mike.knapp@idt.com
or
IDT Worldwide Marketing
Chad Taggard, 408-284-8200 (Press Contact)
chad.taggard@idt.com