Exhibit 99.1
IDT Reports Fiscal Second Quarter 2008 Results
Better-than-Seasonal Trends in Computing Drives Sequential Growth
in Revenue, Gross Margin, & EPS
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 24, 2007--IDT(R)
(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
second quarter ended September 30, 2007.
"We delivered solid results in our fiscal second quarter of 2008
with sequential growth in revenue, gross margin, and EPS," stated Greg
Lang, president and CEO of IDT. "Revenue growth came primarily from
two areas. First, our computing end market grew better than seasonal
expectations with our PC Clock and PC Audio product lines showing
double digit sequential growth. Second, our consumer end market showed
substantial growth across a range of platforms. Our overall gross
margin improved sequentially, and our new product areas continued to
gain traction with significant design wins in our PCI Express and
Pre-processing Switch product lines."
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 second quarter of 2008 was $204.1
million, compared to $205.2 million reported in the same
period one year ago, and up 2.6 percent sequentially.
-- GAAP net income for the fiscal second quarter of 2008 was $4.8
million or $0.02 per diluted share, compared to a GAAP net
loss of $0.7 million or approximately break even in same
period one year ago. Fiscal second quarter 2008 GAAP results
include $30.5 million of acquisition-related charges
(including $29.9 million in amortization of intangibles and
$0.6 million of other acquisition-related charges), $11.8
million of stock-based compensation, and $0.9 million in tax
effects related to acquisition related items.
-- Non-GAAP net income for the fiscal second quarter of 2008 was
$48.3 million or $0.25 per diluted share, compared to non-GAAP
net income of $59.2 million or $0.29 per diluted share
reported in the same period one year ago, and up from $0.22
per diluted share in the previous quarter.
-- GAAP gross profit for the fiscal second quarter of 2008 was
$88.2 million, compared to GAAP gross profit of $86.7 million
in the same period one year ago. Non-GAAP gross profit for the
fiscal second quarter of 2008 was $105.7 million, compared to
non-GAAP gross profit of $114.1 million reported in the same
period one year ago.
-- GAAP R&D expense for the fiscal second quarter of 2008 was
$41.9 million, compared with GAAP R&D expense of $40.9 million
in the same period one year ago. Non-GAAP R&D expense for the
fiscal second quarter of 2008 was $35.1 million, compared to
non-GAAP R&D expense of $33.0 million in the same period one
year ago.
-- GAAP SG&A expense for the fiscal second quarter of 2008 was
$43.6 million, compared to GAAP SG&A expense of $49.0 million
in the same period one year ago. Non-GAAP SG&A expense for the
fiscal second quarter of 2008 was $25.3 million, compared to
non-GAAP SG&A expense of $24.9 million in the same period one
year ago.
$200 Million Expansion of Common Stock Repurchase Program
IDT also announced that its Board of Directors has approved a $200
million expansion of the previously authorized share repurchase
program to a total of $400 million, of which approximately $236
million remains available for share repurchases. Repurchases under the
Company's repurchase program will be made in compliance with the SEC's
Rule 10b-18, subject to market conditions, applicable legal
requirements and other factors and may include open market and
negotiated transactions, including block transactions or accelerated
stock repurchase transactions. The expansion of the repurchase program
is effective immediately and may be discontinued at any time at the
Company's discretion. As of September 30, 2007, IDT had approximately
196 million shares outstanding and approximately $350 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. Pacific time on October 24, 2007. The
webcast replay will be available after 5:00 p.m. Pacific time on
October 24, 2007.
Investors can also listen to the live call at 1:30 p.m. Pacific
time on October 24, 2007 by calling (888) 428-4480 or (651) 291-5254.
The conference call replay will be available after 5:00 p.m. Pacific
time on October 24, 2007 through 11:59 p.m. Pacific time on October
31, 2007 at (800) 475-6701 or (320) 365-3844. The access code is
887536.
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 and Quarterly Report on Form 10-Q for the period
ended July 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 Six Months Ended
- ----------------------------------------------------------------------
Sept. 30, July 1, Oct. 1, Sept. 30, Oct. 1,
2007 2007 2006 2007 2006
--------- --------- --------- --------- ---------
Revenues $204,127 $199,016 $205,176 403,143 390,712
Cost of revenues 115,937 114,128 118,506 230,065 219,807
--------- --------- --------- --------- ---------
Gross profit 88,190 84,888 86,670 173,078 170,905
--------- --------- --------- --------- ---------
Operating expenses:
Research and
development 41,876 44,699 40,878 86,575 80,467
Selling, general
and
administrative 43,615 45,114 48,987 88,729 96,980
Acquired in-
process research
and development - - 500 - 500
--------- --------- --------- --------- ---------
Total operating
expenses 85,491 89,813 90,365 175,304 177,947
--------- --------- --------- --------- ---------
Operating income
(loss) 2,699 (4,925) (3,695) (2,226) (7,042)
Interest expense (28) (41) (72) (69) (151)
Interest income and
other, net 4,446 5,852 3,905 10,298 7,241
--------- --------- --------- --------- ---------
Income before
income taxes 7,117 886 138 8,003 48
Provision for
income taxes 2,358 1,982 801 4,340 2,275
--------- --------- --------- --------- ---------
Net income (loss) $ 4,759 $ (1,096) $ (663) 3,663 (2,227)
========= ========= ========= ========= =========
Net Income (loss)
per share:
Basic $ 0.02 $ (0.01) $ (0.00) $ 0.02 $ (0.01)
Diluted $ 0.02 $ (0.01) $ (0.00) $ 0.02 $ (0.01)
Weighted average
shares:
Basic 190,745 193,254 199,860 192,000 199,283
Diluted 195,923 193,254 199,860 196,914 199,283
INTEGRATED DEVICE TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP
(Unaudited)
(In thousands)
Three Months Ended Six Months Ended
- ----------------------------------------------------------------------
Sept. 30, July 1, Oct. 1, Sept. 30, Oct. 1,
2007 2007 2006 2007 2006
--------- --------- --------- --------- ---------
GAAP Net Income
(Loss) $ 4,759 $ (1,096) $ (663) $ 3,663 $ (2,227)
========= ========= ========= ========= =========
GAAP Diluted Loss
Per Share $ 0.02 $ (0.01) $ (0.00) $ 0.02 $ (0.01)
========= ========= ========= ========= =========
Acquisition
Related:
Amortization
of
acquisition
related
intangibles
(1) 29,942 31,075 39,476 61,017 76,461
Inventory FMV
write-up (1) - - 2,006 - 3,515
Acquired In-
process
research and
development
(1) - - 500 - 500
Acquisition
related
costs (2) 540 1,108 1,030 1,648 2,992
Restructuring
Related:
Reduction in
force (3) - (9) 807 (9) 1,339
Assembly
transition
costs (4) 193 275 - 468 -
Facility
closure
costs (5) 183 151 322 334 529
Asset
impairment
(6) - - 2,482 - 2,482
Other:
Stock-based
compensation
expense (7) 11,800 11,830 13,231 23,630 24,241
Tax effects
of Non-GAAP
adjustments
(8) 853 801 - 1,654 -
--------- --------- --------- --------- ---------
Non-GAAP Net Income $ 48,270 $ 44,135 $ 59,191 $ 92,405 $109,832
========= ========= ========= ========= =========
Non-GAAP Diluted
Earnings Per Share $ 0.25 $ 0.22 $ 0.29 $ 0.47 $ 0.54
========= ========= ========= ========= =========
Weighted average
shares:
Basic 190,745 193,254 199,860 192,000 199,283
Diluted 195,923 197,898 204,827 196,914 203,596
GAAP gross profit 88,190 84,888 86,670 173,078 170,905
--------- --------- --------- --------- ---------
Acquisition
Related:
Amortization
of
acquisition
related
intangibles
(1) 15,614 15,630 20,641 31,244 38,965
Inventory FMV
write-up (1) - - 2,006 - 3,515
Acquisition
related
costs (2) 442 453 323 895 1,055
Restructuring
Related:
Reduction in
Force (3) - (9) 733 (9) 833
Assembly
transition
costs (4) 193 275 - 468 -
Facility
closure
costs (5) 120 92 197 212 345
Asset
impairment
(6) - - 2,482 - 2,482
Other:
Stock-based
compensation
expense (7) 1,189 1,053 1,028 2,242 1,382
--------- --------- --------- --------- ---------
Non-GAAP gross
profit 105,748 102,382 114,080 208,130 219,482
--------- --------- --------- --------- ---------
GAAP R&D Expenses: 41,876 44,699 40,878 86,575 80,467
--------- --------- --------- --------- ---------
Acquisition
Related:
Amortization
of
acquisition
related
intangibles
(1) (19) (62) (125) (81) (250)
Acquisition
related
costs (2) (77) (96) (600) (173) (1,674)
Restructuring
Related:
Reduction in
force (3) - - - - (319)
Facility
closure
costs (5) (36) (41) (71) (77) (105)
Other:
Stock-based
compensation
expense (7) (6,615) (6,731) (7,087) (13,346) (12,811)
--------- --------- --------- --------- ---------
Non-GAAP R&D
Expenses 35,129 37,769 32,995 72,898 65,308
--------- --------- --------- --------- ---------
GAAP SG&A Expenses: 43,615 45,114 48,987 88,729 96,980
--------- --------- --------- --------- ---------
Acquisition
Related:
Amortization
of
acquisition
related
intangibles
(1) (14,309) (15,383) (18,710) (29,692) (37,246)
Acquisition
related
costs (2) (21) (559) (107) (580) (263)
Restructuring
Related:
Reduction in
force (3) - - (74) - (187)
Facility
closure
costs (5) (27) (18) (54) (45) (79)
Other:
Stock-based
compensation
expense (7) (3,996) (4,046) (5,116) (8,042) (10,048)
--------- --------- --------- --------- ---------
Non-GAAP SG&A
Expenses 25,262 25,108 24,926 50,370 49,157
--------- --------- --------- --------- ---------
GAAP Interest
income and other,
net 4,418 5,811 3,833 10,229 7,090
--------- --------- --------- --------- ---------
Non-GAAP Interest
income and other,
net 4,418 5,811 3,833 10,229 7,090
--------- --------- --------- --------- ---------
GAAP Provision for
Income Taxes 2,358 1,982 801 4,340 2,275
--------- --------- --------- --------- ---------
Tax effects
of Non-GAAP
adjustments
(8) (853) (801) - (1,654) -
Non-GAAP Provision
for Income Taxes 1,505 1,181 801 2,686 2,275
--------- --------- --------- --------- ---------
(1) Consists of amortization charges of acquisition-related
intangible assets and the FMV adjustment of acquired inventory sold.
Q2 2007 includes acquired IPR&D related to our acquisition of
Sigmatel's PC audio business.
(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 composed of severance and retention costs.
(4) Consists of the 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 and the closure of our
manufacturing facility in the Philippines.
(6) Consists of an impairment charge related to our manufacturing
facility in the Philippines.
(7) Consists of stock-based compensation expense resulting from our
adoption of SFAS 123R in fiscal 2007.
(8) Consists of the tax effects of acquisition-related non-GAAP
adjustments.
INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
Sept. 30, Apr. 1,
(In thousands) 2007 2007
- ---------------------------------------------------------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 251,440 $ 246,589
Short-term investments 98,458 113,344
Accounts receivable, net 94,183 89,986
Inventories 80,784 85,076
Deferred Taxes 7,910 7,308
Prepaid and other current assets 27,953 29,437
---------- ----------
Total current assets 560,728 571,740
Property, plant and equipment, net 84,698 93,058
Goodwill 1,034,118 1,038,064
Acquisition-related intangibles 253,466 314,484
Other assets 32,806 24,386
---------- ----------
TOTAL ASSETS $1,965,816 $2,041,732
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 52,004 $ 47,854
Accrued compensation and related expenses 28,111 30,882
Deferred income on shipments to distributors 29,808 34,343
Income taxes payable 8,734 30,514
Other accrued liabilities 28,697 22,445
---------- ----------
Total current liabilities 147,354 166,038
Deferred tax liabilities 21,653 20,603
Long term income taxes payable 21,400 -
Long term liabilities 16,968 16,001
---------- ----------
Total liabilities 207,375 202,642
Stockholders' equity 1,758,441 1,839,090
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,965,816 $2,041,732
========== ==========
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