Exhibit 99.1
IDT Reports Fiscal First Quarter 2008 Results
-- Revenue Up Seven Percent From Same Period One Year Ago
-- Completed $100 Million of Stock Repurchase
SAN JOSE, Calif.--(BUSINESS WIRE)--July 26, 2007--IDT(TM)
(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 first
quarter ended July 1, 2007.
"We delivered seven percent revenue growth from the same period
one year ago primarily due to strong sales into our computing end
market," stated Greg Lang, president and CEO of IDT. "Our advanced
memory buffer business delivered its sixth consecutive quarter of
double digit growth, while sales of other computing products such as
PC clocks and PCI Express switches delivered better-than-seasonal
expectations. Our communications clock and telecom businesses also
grew sequentially which helped offset weaker demand in our gaming sub
segment."
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 first quarter of 2008 was $199.0
million, up seven percent from the $185.5 million reported in
the same period one year ago.
-- GAAP net loss for the fiscal first quarter of 2008 was $1.1
million or a loss of $0.01 per diluted share, compared to a
GAAP net loss of $1.6 million or $0.01 per diluted share in
same period one year ago. Fiscal first quarter 2008 GAAP
results include $32.2 million of acquisition-related charges
(including $31.1 million in amortization of intangibles and
$1.1 million of other acquisition-related charges), $11.8
million of stock-based compensation, $0.8 million in tax
effects related to acquisition related items and $0.4 million
of restructuring related charges.
-- Non-GAAP net income for the fiscal first quarter of 2008 was
$44.1 million or $0.22 per diluted share, compared to non-GAAP
net income of $50.6 million or $0.25 per diluted share
reported in the same period one year ago.
-- GAAP gross profit for the fiscal first quarter of 2008 was
$84.9 million, compared to GAAP gross profit of $84.2 million
in the same period one year ago. Non-GAAP gross profit for the
fiscal first quarter of 2008 was $102.4 million, compared to
non-GAAP gross profit of $105.4 million reported in the same
period one year ago.
-- GAAP R&D expense for the fiscal first quarter of 2008 was
$44.7 million, compared with GAAP R&D expense of $39.6 million
in the same period one year ago. Non-GAAP R&D expense for the
fiscal first quarter of 2008 was $37.8 million, compared to
non-GAAP R&D expense of $32.3 million in the same period one
year ago.
-- GAAP SG&A expense for the fiscal first quarter of 2008 was
$45.1 million, compared to GAAP SG&A expense of $48.0 million
in the same period one year ago. Non-GAAP SG&A expense for the
fiscal first quarter of 2008 was $25.1 million, compared to
non-GAAP SG&A expense of $24.2 million in the same period one
year ago.
Share Repurchase Program Update
During the fiscal first quarter of 2008, the Company repurchased
approximately $100 million of IDT shares. The Company has
approximately $75 million dollars remaining under the current
repurchase program.
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 July 26, 2007. The webcast
replay will be available after 5:00 p.m. PT on July 26, 2007.
Investors can also listen to the live call at 1:30 p.m. PT on July
26, 2007 by calling (877) 209-0397 or (612) 332-0932. The conference
call replay will be available after 5:00 p.m. PT on July 26, 2007
through 11:59 p.m. PT on August 2, 2007 at (800) 475-6701 or (320)
365-3844. The access code is 880289.
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(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 fiscal year
ended April 1, 2007.
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
- ----------------------------------------------------------------------
July 1, April 1, July 2,
2007 2007 2006
--------- --------- ---------
Revenues $199,016 $206,688 $185,536
Cost of revenues 114,128 122,734 101,301
--------- --------- ---------
Gross profit 84,888 83,954 84,235
--------- --------- ---------
Operating expenses:
Research and development 44,699 42,492 39,589
Selling, general and administrative 45,114 47,440 47,993
--------- --------- ---------
Total operating expenses 89,813 89,932 87,582
--------- --------- ---------
Operating loss (4,925) (5,978) (3,347)
Interest expense (41) (53) (79)
Interest income and other, net 5,852 3,942 3,336
--------- --------- ---------
Loss before income taxes 886 (2,089) (90)
Provision (Benefit) for income taxes 1,982 1,322 1,474
--------- --------- ---------
Net Loss $ (1,096) $ (3,411) $ (1,564)
========= ========= =========
Net loss per share:
Basic $ (0.01) $ (0.02) $ (0.01)
Diluted $ (0.01) $ (0.02) $ (0.01)
Weighted average shares:
Basic 193,254 196,527 198,706
Diluted 193,254 196,527 198,706
INTEGRATED DEVICE TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(In thousands)
Three Months Ended
- ----------------------------------------------------------------------
July 1, April 1, July 2,
2007 2007 2006
--------- --------- ---------
GAAP Net Income $ (1,096) $ (3,411) $ (1,564)
========= ========= =========
GAAP Diluted Income Per Share $ (0.01) $ (0.02) $ (0.01)
========= ========= =========
Acquisition Related:
Amortization of acquisition
related intangibles (1) 31,075 39,263 36,985
Inventory FMV write-up (1) - - 1,509
Acquisition related costs (2) 1,108 592 1,962
Restructuring Related:
Reduction in Force (3) (9) 407 532
Assembly Transition Costs (4) 275 1,935 -
Facility closure costs (5) 151 187 207
Asset impairment (6) - 1,915 -
Other:
Stock-Based Compensation Expense
(7) 11,830 11,085 11,010
Taxes affects of Non-GAAP
adjustments (8) 801 235 -
--------- --------- ---------
Non-GAAP Net Income $ 44,135 $ 52,208 $ 50,641
========= ========= =========
Non-GAAP Diluted Earnings Per Share $ 0.22 $ 0.26 $ 0.25
========= ========= =========
Weighted average shares:
Basic 193,254 196,527 198,706
Diluted 197,898 202,007 202,504
GAAP gross profit 84,888 83,954 84,235
--------- --------- ---------
Acquisition Related:
Amortization of acquisition
related intangibles (1) 15,630 20,477 18,324
Inventory FMV write-up (1) - - 1,509
Acquisition related costs (2) 453 417 732
Restructuring Related:
Reduction in Force (3) (9) 214 100
Assembly Transition Costs (4) 275 1,935 -
Facility closure costs (5) 92 76 148
Asset impairment (6) - 1,915 -
Other:
Stock-Based Compensation Expense
(7) 1,053 1,251 354
--------- --------- ---------
Non-GAAP gross profit 102,382 110,239 105,402
--------- --------- ---------
GAAP R&D Expenses: 44,699 42,492 39,589
--------- --------- ---------
Acquisition Related:
Amortization of acquisition
related intangibles (1) (62) (125) (125)
Acquisition related costs (2) (96) (218) (1,074)
Restructuring Related:
Reduction in Force (3) - (125) (319)
Facility closure costs (5) (41) (65) (34)
Other:
Stock-Based Compensation Expense
(7) (6,731) (5,979) (5,724)
--------- --------- ---------
Non-GAAP R&D Expenses 37,769 35,980 32,313
--------- --------- ---------
GAAP SG&A Expenses: 45,114 47,440 47,993
--------- --------- ---------
Acquisition Related:
Amortization of acquisition
related intangibles (1) (15,383) (18,661) (18,536)
Acquisition related costs (2) (559) 43 (156)
Restructuring Related:
Reduction in Force (3) - (68) (113)
Facility closure costs (5) (18) (46) (25)
Other:
Stock-Based Compensation Expense
(7) (4,046) (3,855) (4,932)
--------- --------- ---------
Non-GAAP SG&A Expenses 25,108 24,853 24,231
--------- --------- ---------
GAAP Interest income and other, net 5,811 3,889 3,257
--------- --------- ---------
Non-GAAP Interest income and other, net 5,811 3,889 3,257
--------- --------- ---------
GAAP Provision (Benefit) for Income
Taxes 1,982 1,322 1,474
--------- --------- ---------
Taxes affects of Non-GAAP
adjustments (8) (801) (235) -
Non-GAAP Provision for Income Taxes 1,181 1,087 1,474
--------- --------- ---------
(1) Consists of amortization charges of acquisition-related
intangible assets and the incremental cost related to the sale of
acquired inventory.
(2) 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 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.
(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) Consists of impairment charges related to our manufacturing
facility in the Philippines.
(7) Consists of stock-based compensation expense recorded in
connection with FAS 123R.
(8) Consists of the tax effects of acquisition-related non-GAAP
adjustments.
INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
July 1, April 1,
(In thousands) 2007 2007
- ----------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 202,127 $ 246,589
Short-term investments 103,342 113,344
Accounts receivable, net 93,473 89,986
Inventories 82,147 85,076
Deferred Taxes 7,910 7,308
Prepaid and other current assets 18,370 18,484
---------- ----------
Total current assets 507,369 560,787
Property, plant and equipment, net 88,854 93,058
Goodwill 1,035,611 1,038,064
Acquisition-related intangibles 283,409 314,484
Other assets 30,752 24,386
---------- ----------
TOTAL ASSETS $1,945,995 $2,030,779
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 52,645 $ 47,854
Accrued compensation and related expenses 20,832 30,882
Deferred income on shipments to distributors 30,523 34,343
Income taxes payable 18,217 21,973
Other accrued liabilities 24,353 20,033
---------- ----------
Total current liabilities 146,570 155,085
Deferred tax liabilities 21,359 20,603
Long term liabilities 17,130 16,001
---------- ----------
Total liabilities 185,059 191,689
Stockholders' equity 1,760,936 1,839,090
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,945,995 $2,030,779
========== ==========
CONTACT: IDT Investor Relations
Mike Knapp, 408-284-6515 (Financial)
mike.knapp@idt.com
Chad Taggard, 408-284-8200 (Press)
chad.taggard@idt.com