Integrated Device Technology, Inc. (IDT® or the Company)
(NASDAQ:IDTI), the Analog and Digital Company™ delivering essential
mixed-signal semiconductor solutions, today announced results for
the fiscal fourth quarter and year ended April 1, 2012.
“We achieved top and bottom line results that exceeded our
expectations for our fiscal fourth quarter as a result of strong
sales from our communications and computing segments and higher
gross margins,” said Dr. Ted Tewksbury, president and CEO of IDT.
“Our Q4 results reflect improving trends in our communications and
enterprise computing businesses, and underscore increased traction
of our new product categories as revenue from new products
increased to 13 percent from 10 percent in the prior quarter. In
addition, gross margins were 300 basis points better than expected,
highlighting improved product mix and lower inventory
reserves.”
“Over the past four years we have significantly revitalized our
new product pipeline and restructured the company for profitable
growth with the sale of our fab and less profitable businesses,
consolidation of our backend operations, and acquisitions of key
products and technologies to better serve customers in our target
markets. Over the same period, we have successfully defended and
grown our core businesses while expanding our available market in
focused areas like 4G/LTE wireless infrastructure and cloud
computing. With the restructuring of the company significantly
complete, IDT is poised to realize the return on our investment in
core and new product categories. At our Analyst Day in March, we
projected $80 million to $100 million in sales from our new product
areas in fiscal 2013, representing 50-80 percent growth. We are
also augmenting our organic growth plan with the acquisitions we
announced today. At the same time, we are working to align our
long-term R&D investment and SG&A with our restructured
business to ensure we are operating as efficiently as possible
while supporting the company's momentum. We believe our operating
model can deliver strong returns in the near future and that we are
well positioned to drive sustainable growth in shareholder value
over the long run.”
IDT Signs Definitive Agreement to Acquire PLX
Technology
The Company announced today in a separate press release that it
has signed a definitive agreement under which IDT will acquire PLX
Technology, Inc. (NASDAQ: PLXT) pursuant to an exchange offer for
approximately $7.00 per share in a cash and stock in a transaction
of approximately $330 million, subject to certain terms and
conditions as described in additional detail in the separate press
release and a related Report on Form 8-K filed with the U.S.
Securities and Exchange Commission.
Recent Highlights
IDT recently announced:
- The acquisition of Fox Electronics
(Fox), a leading supplier of frequency control products including
crystals and crystal oscillators, in an all-cash transaction for
approximately $30 million, of which $26 million was paid at
closing. The combination of Fox’s product portfolio with IDT’s
award-winning CrystalFree™ oscillators make IDT the industry’s most
comprehensive one-stop shop for frequency control products. In
addition, Fox will help accelerate the adoption of CrystalFree™ by
enabling customers to purchase pMEMS and CMOS solid-state
oscillators alongside traditional quartz-based components through
an established and trusted sales channel.
- The world's first single-chip wireless
power transmitter that reduces board footprint by 80 percent and
bill-of-materials cost by 50 percent compared to existing
solutions.
- The industry's highest-output-power
single-chip wireless power receiver that cuts charging time in half
when used with the IDT transmitter.
- The world's most advanced single-phase
power metering SoC for smart grid applications featuring the
industry's widest dynamic range and an unprecedented level of
integration.
- A comprehensive mixed-signal product
portfolio for Intel’s Romley platform, including PCI Express® 3.0
switching and signal conditioning, timing, power management and
memory interface solutions.
- A new family of precision temperature
sensors for ultra-low-power solid state drive applications that
minimizes power consumption and optimizes bill-of-materials
costs.
- A new family of quad-frequency
programmable clock oscillators leveraging IDT's fourth-generation
FemtoClock® NG technology with industry-leading performance for
crystal oscillator and voltage-controlled crystal oscillator
replacements.
- A new series of low-jitter
silicon-germanium voltage-controlled SAW oscillators designed to
meet the stringent requirements of fiber optic telecom
applications.
- IDT's RapidIO® Gen 2 interface
intellectual property has been selected by Texas Instruments for
its new TMS320C665x multicore digital signal processors.
- IDT has received two prestigious UBM
ACE Awards presented by EE Times and EDN. IDT's Michael S.
McCorquodale, Ph.D. won the Innovator of the Year award and IDT's
3LG CrystalFree™ solid-state oscillators won the Ultimate Products
award in the Analog IC category.
- IDT won the Frost and Sullivan 2012
Technology Innovation Award for the pMEMS technology announced last
November.
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, which are excluded from non-GAAP
results based on management’s determination that they are not
directly reflective of ongoing operations. 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. A complete
reconciliation of GAAP to non-GAAP results from continuing
operations is attached to this press release.
- Revenue for the fiscal fourth quarter
of 2012 was $119.1 million, compared with $144.7 million reported
in the same period one year ago. Revenue for fiscal year 2012 was
$526.7 million, compared with $605.4 million in fiscal year
2011.
- GAAP net income from continuing
operations for the fiscal fourth quarter of 2012 was $17.4 million,
or $0.12 per diluted share, versus GAAP net income of $39.7 million
or $0.26 per diluted share in the same period one year ago. Fiscal
fourth quarter 2012 GAAP results include a $20.7 million gain from
the sale of a fabrication facility, $7.2 million in acquisition and
restructuring related charges, $4.0 million in stock-based
compensation and a $1.4 million benefit from tax effects.
- Non-GAAP net income from continuing
operations for the fiscal fourth quarter of 2012 was $7.1 million
or $0.05 per diluted share, compared with non-GAAP net income from
continuing operations of $28.4 million or $0.19 per diluted share
reported in the same period one year ago. Non-GAAP net income from
continuing operations for fiscal year 2012 was $56.6 million,
compared with $118.4 million in fiscal year 2011.
- GAAP gross profit for the fiscal fourth
quarter of 2012 was $63.6 million, or 53.4 percent, compared with
GAAP gross profit of $81.4 million, or 56.3 percent, reported in
the same period one year ago. Non-GAAP gross profit for the fiscal
fourth quarter of 2012 was $68.7 million, or 57.7 percent, compared
with non-GAAP gross profit of $86.0 million, or 59.4 percent,
reported in the same period one year ago.
- GAAP R&D expense for the fiscal
fourth quarter of 2012 was $41.3 million, compared with GAAP
R&D expense of $37.7 million reported in the same period one
year ago. Non-GAAP R&D expense for the fiscal fourth quarter of
2012 was $38.5 million, compared with non-GAAP R&D of $35.9
million in the same period one year ago.
- GAAP SG&A expense for the fiscal
fourth quarter of 2012 was $26.4 million, compared with GAAP
SG&A expense of $25.9 million in the same period one year ago.
Non-GAAP SG&A expense for the fiscal fourth quarter of 2012 was
$22.4 million, compared with non-GAAP SG&A expense of $23.1
million in the same period one year ago.
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 April 30, 2012. The webcast replay will be
available after 5 p.m. Pacific time on April 30, 2012.
Investors can also listen to the live call at 1:30 p.m. Pacific
time on April 30, 2012 by calling (800) 230-1059 or (612) 234-9960.
The conference call replay will be available after 5 p.m. Pacific
time on April 30, 2012 through 11:59 p.m. Pacific time on May 7,
2012 at (800) 475-6701 or (320) 365-3844. The access code is
243805.
About IDT
Integrated Device Technology, Inc., the Analog and Digital
Company™, develops system-level solutions that optimize its
customers’ applications. IDT uses its market leadership in timing,
serial switching and interfaces, and adds analog and system
expertise to provide complete application-optimized, mixed-signal
solutions for the communications, computing and consumer segments.
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® under the symbol “IDTI.”
Additional information about IDT is accessible at www.IDT.com.
Follow IDT on Facebook, LinkedIn, Twitter, and YouTube.
Additional Information
The exchange offer in connection with the IDT’s proposed
acquisition of PLX Technology has not yet commenced. This press
release is for informational purposes only and shall not constitute
an offer to sell or the solicitation of an offer to buy any
securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. Any offer will only be
made through a prospectus, which is part of a registration
statement on Form S-4, as well as a Tender Offer Statement on
Schedule TO, which will contain an offer to purchase, form of
letter of transmittal and other documents relating to the exchange
offer (collectively, the “Exchange Offer Materials”), each to be
filed with the U.S. Securities and Exchange Commission (the “SEC”)
by IDT. In addition, PLX Technology will file with the SEC a
solicitation/recommendation statement on Schedule 14D-9 with
respect to the exchange offer. IDT and PLX Technology expect to
mail the Exchange Offer Materials, as well as the Schedule 14D-9,
to PLX Technology stockholders. Investors and security holders are
urged to carefully read these documents and the other documents
relating to the transactions when they become available because
these documents will contain important information relating to the
exchange offer and related transactions. Investors and security
holders may obtain a free copy of these documents after they have
been filed with the SEC, and other annual, quarterly and special
reports and other information filed with the SEC by IDT or PLX
Technology, at the SEC’s website at www.sec.gov. In addition, such
materials will be available from IDT or PLX Technology, or by
calling Innisfree M&A Incorporated, the information agent for
the exchange offer, toll-free at (877) 456-3463 (banks and brokers
may call collect at (212) 750-5833).
Neither PLX Technology nor IDT is asking for stockholders to
vote or soliciting proxies in connection with the exchange offer
transaction at this time. Upon consummation of the offer, PLX
Technology and IDT may seek votes or proxies in connection with the
proposed back-end merger from holders of PLX Technology shares not
tendered in the offer. PLX Technology, IDT and their respective
officers and directors therefore may be deemed to be participants
in the solicitation of proxies from PLX Technology's stockholders
in connection with the proposed merger. A description of certain
interests of the directors and executive officers of PLX Technology
is set forth in PLX Technology's Form 10-K/A, Amendment No. 1, in
Part III thereof, which was filed with the SEC on April 27, 2012. A
description of certain interests of the directors and executive
officers of IDT is set forth in IDT's proxy statement for its 2011
annual meeting, which was filed with the SEC on August 1, 2011. To
the extent holdings of either company's securities by their
respective directors and certain officers have subsequently
changed, such changes have been reflected on Forms 4 filed with the
SEC.
Forward Looking Statements
Investors are cautioned that forward-looking statements in this
release, including but not limited to statements regarding demand
for Company products, anticipated trends in Company sales, expenses
and profits and IDT’s expectations for the proposed acquisition of
PLX Technology, 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 introduction 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, the completion of the proposed acquisition of
PLX Technology the timing of the exchange offer and the subsequent
merger with PLX Technology, uncertainties as to how many of PLX
Technology’s stockholders will tender their shares of common stock
in the exchange offer, the risk that competing offers or
acquisition proposals will be made, the risk that the exchange
offer and the subsequent merger will not close because of a failure
to satisfy one or more of the offer closing conditions (including
regulatory approvals) and other risk factors detailed in the
Company’s SEC filings. The Company urges investors to review in
detail the risks and uncertainties in the Company’s SEC filings,
including but not limited to the Annual Report on Form 10-K for the
fiscal year ended April 3, 2011. All forward-looking statements are
made as of the date of this release and the Company disclaims any
duty to update such statements.
Non-GAAP Reporting
The Company presents non-GAAP financial measures because the
investor community uses non-GAAP results in its analysis and
comparison of historical results and projections of the Company's
future operating results. These non-GAAP results exclude
restructuring-related costs, acquisition and divestiture-related
charges, share-based compensation expense, results from
discontinued operations and certain other expenses and benefits.
Management uses these non-GAAP measures to manage and assess the
profitability of the business. These non-GAAP results are also
consistent with another way management internally analyzes IDT’s
results and may be useful to investor community. The Company has
reconciled non-GAAP results to the most directly comparable GAAP
financial measures in the financial tables at the end of this press
release.
Reference to these non-GAAP results should be considered in
addition to results that are prepared under general accepted
accounting standards in the United States (GAAP), but should not be
considered a substitute for results that are presented in
accordance with GAAP. It should also be noted that IDT's non-GAAP
information may be different from the non-GAAP information provided
by other companies.
IDT and the IDT logo are trademarks or
registered 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, January 1, April 3, April 1,
April 3, 2012 2012
2011 (1)
2012 (1)
2011 (1)
Revenues $ 119,116 $ 119,977 $ 144,674 $ 526,696 $ 605,389 Cost of
revenues 55,563 56,093 63,225
246,190 276,447 Gross profit
63,553 63,884 81,449 280,506 328,942 Operating expenses: Research
and development 41,340 38,410 37,691 158,749 154,465 Selling,
general and administrative 26,429 23,661
25,888 100,907 103,620
Total operating expenses 67,769 62,071
63,579 259,656 258,085
Operating income (4,216 ) 1,813
17,870 20,850 70,857
Other-than-temporary impairment loss on investments (667 )
(2,130 ) - (2,797 ) - Gain on sale of wafer fab facility 20,656 -
20,656 - Other income (expense), net 676 (10 )
904 (1,118 ) 3,697 Income (loss)
from continuing operations before income taxes 16,449 (327 ) 18,774
37,591 74,554 Provision (benefit) for income taxes (908 )
576 (20,931 ) 268 (19,272
) Net income (loss) from continuing operations 17,357 (903 )
39,705 37,323 93,826 Discontinued operations: Gain from
divestiture - - - 45,939 - Loss from discontinued operations (4,605
) (5,290 ) (8,856 ) (24,891 ) (24,260 ) Provision (benefit) for
income taxes - - (21 )
(89 ) (85 ) Net income (loss) from discontinued operations
(4,605 ) (5,290 ) (8,835 ) 21,137 (24,175 ) Net income
(loss) $ 12,752 $ (6,193 ) $ 30,870 $ 58,460 $
69,651 Basic net income (loss) per share continuing
operations $ 0.12 $ (0.01 ) $ 0.27 $ 0.26 $ 0.61 Basic net income
(loss) per share discontinued operations (0.03 )
(0.03 ) (0.06 ) 0.15 (0.16 ) Basic net
income (loss) per share $ 0.09 $ (0.04 ) $ 0.21 $
0.41 $ 0.45 Diluted net income (loss) per
share continuing operations $ 0.12 $ (0.01 ) $ 0.26 $ 0.26 $ 0.60
Diluted net income (loss) per share discontinued operations
(0.03 ) (0.03 ) (0.06 ) 0.14
(0.15 ) Diluted net income (loss) per share $ 0.09 $ (0.04 )
$ 0.20 $ 0.40 $ 0.45 Weighted average
shares: Basic 141,455 141,839
148,181 143,958 154,511 Diluted
143,476 141,839 150,852
145,848 155,918 1) The
Company's prior period financial results have been revised to
reflect an immaterial correction. During the third quarter of
fiscal 2012 the Company identified errors related to its accounting
for certain accrued employee retention costs and other accrued
liabilities. The Company assessed the materiality of these errors
individually and in the aggregate on prior periods’ financial
statements in accordance with the SEC’s Staff Accounting Bulletin
No. 99 (“SAB 99”), and concluded that the errors were not material
to any of its prior annual or interim financial statements. As
permited by the SEC’s Staff Accounting Bulletin No. 108 (“SAB
108”), the Company elected to revise previously issued consolidated
financial statements the next time they are filed. As a
result of the revisions, net income for the three and twelve months
ended April 3, 2011 decreased by $0.5 million and $3.0 million,
respectively.
INTEGRATED DEVICE TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP (Unaudited) (In
thousands, except per share data)
Three Months Ended Twelve Months Ended
April 1, January 1, April 3, April 1,
April 3, 2012 2012 2011 2012
2011 GAAP net income (loss) from continuing
operations $ 17,357 $ (903
) $ 39,705 $ 37,323
$ 93,826 GAAP diluted net income
(loss) per share continuing operations $ 0.12
$ (0.01 ) $ 0.26
$ 0.26 $ 0.60 Acquisition
related: Amortization of acquisition related intangibles 4,360
4,006 4,765 16,355 19,298 Acquisition related costs (1) 689 109 98
798 1,932 Assets impairment (2) (60 ) (73 ) (63 ) (315 ) (447 )
Fair market value adjustment to acquired inventory sold - - - - 379
Restructuring related: Severance and retention costs 1,439 (1,978 )
827 2,064 4,865 Facility closure costs (3) 48 16 (1,353 ) 87 33
Fabrication production transfer costs (4) 678 1,233 1,412 4,572
5,263 Gain on sale of fabrication facility (20,656 ) (20,656 )
Other: Other-than-temporary impairment loss on investments
(5) 667 2,130 - 2,797 - Compensation expense (benefit)—deferred
compensation plan (6) 819 649 503 187 1,809 Loss (gain) on deferred
compensation plan securities (6) (798 ) (629 ) (507 ) (113 ) (1,767
) Stock-based compensation expense 3,967 4,312 2,897 16,333 14,668
Tax effects of Non-GAAP adjustments (7) (1,405 ) (347
) (19,925 ) (2,818 ) (21,439 )
Non-GAAP net
income from continuing operations $ 7,105
$ 8,525 $ 28,359 $ 56,614
$ 118,420 GAAP weighted average shares - diluted
143,476 141,839 150,852 145,848 155,918 Non-GAAP adjustment
1,515 2,676 1,775 1,805
1,989 Non-GAAP weighted average shares -
diluted (8) 144,991 144,515
152,627 147,653 157,907
Non-GAAP diluted net income per share continuing operations
$ 0.05 $ 0.06 $
0.19 $ 0.38 $ 0.75
GAAP gross profit 63,553
63,884 81,449
280,506 328,942 Acquisition and
divestiture related: Amortization of acquisition related
intangibles 2,763 2,733 3,391 11,597 13,765 Acquisition related
costs (1) - - - - 5 Assets impairment (2) (60 ) (73 ) (63 ) (315 )
(447 ) Fair market value adjustment to acquired inventory sold - -
379 Restructuring related: Severance and retention costs 1,181
(2,784 ) 721 357 2,721 Facility closure costs (3) 4 3 (1,483 ) 5
(583 ) Fabrication production transfer costs (4) 678 1,233 1,412
4,572 5,263 Other: Compensation expense (benefit) - deferred
compensation plan (6) 205 140 109 68 391 Stock-based compensation
expense 369 535 423
1,784 1,683
Non-GAAP gross
profit 68,693 65,671
85,959 298,574
352,119 GAAP R&D expenses:
41,340 38,410
37,691 158,749
154,465 Acquisition and divestiture related:
Acquisition related costs (1) - - (67 ) - (1,263 ) Restructuring
related: Severance and retention costs (246 ) (870 ) (45 ) (1,719 )
(1,433 ) Facility closure costs (3) (6 ) (4 ) (82 ) (20 ) (204 )
Other: Compensation expense (benefit) - deferred compensation plan
(6) (495 ) (421 ) (326 ) (86 ) (1,173 ) Stock-based compensation
expense (2,073 ) (2,174 ) (1,239 )
(8,566 ) (7,985 )
Non-GAAP R&D expenses
38,520 34,941
35,932 148,358
142,407 GAAP SG&A expenses:
26,429 23,661
25,888 100,907
103,620 Acquisition and divestiture related:
Amortization of acquisition related intangibles (1,597 ) (1,273 )
(1,374 ) (4,758 ) (5,533 ) Acquisition related costs (1) (689 )
(109 ) (31 ) (798 ) (664 ) Restructuring related: Severance and
retention costs (12 ) 64 (61 ) 12 (711 ) Facility closure costs (3)
(38 ) (9 ) (48 ) (62 ) (412 ) Other: Compensation expense (benefit)
- deferred compensation plan (6) (119 ) (88 ) (68 ) (33 ) (245 )
Stock-based compensation expense (1,525 ) (1,603 )
(1,235 ) (5,983 ) (5,000 )
Non-GAAP
SG&A expenses 22,449
20,643 23,071
89,285 91,055 GAAP
interest income and other, net 676
(10 ) 904 (1,118
) 3,697 Loss (gain) on deferred
compensation plan securities (6) (798 ) (629 )
(507 ) (113 ) (1,767 )
Non-GAAP interest income
and other, net (122 ) (639
) 397 (1,231 )
1,930 GAAP provision (benefit) for
income taxes continuing operations (908 )
576 (20,931 )
268 (19,272 ) Tax effects of
Non-GAAP adjustments (7) 1,405 347
19,925 2,818 21,439
Non-GAAP provision (benefit) for income taxes continuing
operations 497 923
(1,006 ) 3,086
2,167
(1) Consists of costs incurred in
connection with merger and acquisition-related activities,
including legal and accounting fees.
(2) Consists of an impairment charge
related to a note receivable and subsequent recoveries.
(3) Consists of ongoing costs associated
with the exit of our leased and owned facilities.
(4) Consists of costs incurred in
connection with the transition of our wafer fabrication processes
in Oregon facility to TSMC.
(5) Consists of an other-than-temporary
impairment charges related to investments in a non-marketable
equity security, offset in part by a gain on the sale of a
non-marketable security
(6) Consists of gains and losses on
marketable equity securities related to our deferred compensation
arrangements and the changes in the fair value of the assets in a
separate trust that is invested in Corporate owned life insurance
under our deferred compensation plan.
(7) Consists of the tax effects of
non-GAAP adjustments.
(8) For purposes of calculating non-GAAP
diluted net income per share, the GAAP diluted weighted average
shares outstanding is adjusted to exclude the benefits of stock
compensation expense attributable to future services not yet
recognized in the financial statements that are treated as proceeds
assumed to be used to repurchase shares under the GAAP treasury
method.
INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
April 1, April 3, (In thousands)
2012
2011 (1)
ASSETS Current assets: Cash and cash equivalents $
134,924 $ 104,680 Short-term investments 190,535 194,512 Accounts
receivable, net 60,609 81,798 Inventories 71,780 67,041 Prepaid and
other current assets 23,684 23,929 Total current
assets 481,532 471,960 Property, plant and equipment, net
69,984 67,754 Goodwill 96,092 104,020 Acquisition-related
intangibles 40,548 51,021 Other assets 29,478 32,705
TOTAL ASSETS $ 717,634 $ 727,460
LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $
25,211 $ 35,419 Accrued compensation and related expenses 26,156
32,784 Deferred income on shipments to distributors 14,263 12,853
Deferred taxes liabilities 421 2,224 Other accrued liabilities
13,443 30,886 Total current liabilities 79,494
114,166 Deferred tax liabilities 1,552 1,513 Long term
income taxes payable 706 712 Other long term obligations
16,494 15,808 Total liabilities 98,246 132,199
Stockholders' equity 619,388 595,261
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY $ 717,634 $ 727,460
(1) Amounts as of April 3, 2011 are revised due to the correction
of an immaterial error. As a result of the revision, current
liabilities increased and stockholders' equity decreased by $3.5
million.
Integrated Device Technology, Inc. (NASDAQ:IDTI)
Historical Stock Chart
From Sep 2024 to Oct 2024
Integrated Device Technology, Inc. (NASDAQ:IDTI)
Historical Stock Chart
From Oct 2023 to Oct 2024