26.01.2005 22:07:00
|
IDT Reports Earnings for the Third Quarter of Fiscal Year 2005; Compan
Business Editors/Technology Editors
SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 26, 2005--IDT(TM) (Integrated Device Technology, Inc.)(Nasdaq:IDTI), a leading communications IC company, today announced its results for the quarter ended January 2, 2005, its third quarter of fiscal 2005. The Company also disclosed details of restructuring efforts designed to reduce manufacturing and operating costs.
Revenues for the third fiscal quarter were $95.7 million, a decrease of 1 percent compared to the second quarter of fiscal 2005 and an increase of 9.8 percent from the third quarter of fiscal 2004. On a non-GAAP basis, net income for the third fiscal quarter was $6.3 million, or $0.06 per diluted share, compared to net income of $9.5 million, or $0.09 per diluted share, in the second quarter of fiscal 2005 and net income of $4.0 million, or $0.04 per diluted share, for the same quarter one year ago.
Including certain costs, charges and gains in accordance with GAAP, the Company reported net income of $3.3 million, or $0.03 per diluted share, in the third quarter of fiscal 2005 compared to net income of $8.9 million, or $0.08 per diluted share, in the second quarter of fiscal 2005. On a GAAP basis, the Company reported net income of $2.3 million, or $0.02 per diluted share, for the third quarter of fiscal 2004. The second fiscal quarter of 2005 GAAP results include a $1.6 million gain on the sale of assets related to discontinued wafer operations in Salinas, Calif. Further information, including a detailed reconciliation of non-GAAP to GAAP results, is provided in the financial tables of this release. Also, as previously announced in October 2004, the IDT Board of Directors authorized the repurchase of up to $50 million of its Common Stock on the open market. Through the date of this release, the Company has repurchased shares totaling approximately $24 million dollars.
"As we anticipated, the December quarter was difficult," said Greg Lang, president and CEO of IDT. "However, our investments in new markets, notably PC motherboard and DIMM timing solutions, have helped to mitigate the effects of customer inventory issues and the softness in the wireless infrastructure market. Given the environment, we are pleased with last quarter's results and are implementing activities that will enable us to further strengthen our financial performance."
Profitability Measures
In response to the current business environment, IDT began a restructuring program designed to reduce manufacturing and operating costs in order to improve profitability. These measures include the consolidation of the Company's Northern California operations, including Salinas operations, into its new San Jose-based corporate headquarters, enabling an estimated $4 million annual operating-cost savings. In addition, IDT is centralizing and otherwise streamlining a number of manufacturing support, sales, IT and R&D positions. Overall, this reduction in force will result in the elimination of approximately 240 positions in North America, with roughly 50 percent implemented as of today, while the balance will be transitioned over the next few quarters.
In time, the combined effects of these measures are projected to save approximately $5 to $6 million per quarter through the Company's non-GAAP P&L. Approximately 20 percent of these cost savings are in R&D, with the bulk of the savings split between cost-of-sales and SG&A. The Company projects one-time costs of approximately $17 million associated with this consolidation and restructuring, which will be implemented over the next twelve months.
"While the actions we are taking are quite painful, we need to ensure that our resources are dedicated to those areas that will best drive a healthy future for our company," said Lang. "We remain optimistic about the communications infrastructure markets, our portfolio of leading-edge products, and our ability to produce strong financial results over the next year."
Webcast and Conference Call Information
Investors can listen to a live or replay Webcast of the Company's quarterly financial conference call at www.IDT.com. The live Webcast begins at 1:30 p.m. PST on Wednesday, January 26, 2005. The Webcast replay will be available after 5 p.m. PST on January 26 through February 17, 2005. A taped telephone replay of the conference call will be available on January 26, 2005 beginning at 6 p.m. PST by calling (800) 475-6701 or (320) 365-3844 and will be accessible until 11:59 p.m. PST on February 2, 2005. The access code is 764800.
Investor Information
IDT stock is traded on the Nasdaq Stock Market(R) under the symbol "IDTI." The Company is included in the S&P 1000, which is a combination of the S&P MidCap 400 and S&P SmallCap 600 Indices, and is also part of the S&P SuperComposite 1500, which combines the S&P 500, MidCap 400, and SmallCap 600. Additional information about IDT is accessible at www.IDT.com.
About IDT
IDT is a global leader in preemptive semiconductor solutions that accelerate packet processing for advanced network services. IDT serves communications equipment vendors by applying its advanced hardware and software technologies to create flexible, highly integrated solutions that enhance the functionality and processing of network equipment. IDT accelerates intelligent packet processing with products such as switching solutions, network search engines (NSEs), programmable content inspection engines (CIEs), flow-control management (FCM) ICs and its family of Interprise(TM) integrated communications processors. The portfolio also comprises products optimized for communications applications, including telecom products, FIFOs, multi-ports, and timing solutions. In addition, the product mix includes high-performance digital logic and high-speed SRAMs to meet the requirements of leading communications companies.
Currently headquartered in Santa Clara, Calif., the Company employs approximately 3,000 people worldwide and has a wafer manufacturing facility in Oregon, and test and assembly facilities in the Philippines and Malaysia. Additional information about IDT is accessible at www.IDT.com.
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. We urge 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 March 28, 2004, and the Quarterly Report on Form 10-Q for the quarter ended September 26, 2004.
IDT, Interprise 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 ---------------------------------------------------------------------- Jan. 2, Sep. 26, Dec. 28, Jan. 2, Dec. 28, 2005 2004 2003 2005 2003 -------- -------- -------- --------- ---------
Revenues $95,658 $96,671 $87,100 $293,636 $250,922
Cost of revenues 49,833 48,247 45,625 146,441 136,550
Restructuring and asset impairment 213 (1,585) - (1,581) - -------- -------- -------- --------- ---------
Gross profit 45,612 50,009 41,475 148,776 114,372 -------- -------- -------- --------- ---------
Operating expenses:
Research and development 26,365 25,449 23,607 77,815 74,689
Selling, general and administrative 18,291 17,801 17,888 55,479 54,533
Acquired in-process research and development 29 - - 1,765 264 -------- -------- -------- --------- ---------
Total operating expenses 44,685 43,250 41,495 135,059 129,486 -------- -------- -------- --------- ---------
Operating income (loss) 927 6,759 (20) 13,717 (15,114)
Interest expense (13) (26) (69) (86) (279)
Gain (loss) on equity investments - - - (12,831) 3,151
Interest income and other, net 3,657 2,824 2,787 8,986 10,153 -------- -------- -------- --------- ---------
Income (loss) before income taxes 4,571 9,557 2,698 9,786 (2,089)
Provision (benefit) for income taxes 1,223 704 358 2,632 (827) -------- -------- -------- --------- ---------
Net income (loss) $3,348 $8,853 $2,340 $7,154 $(1,262) ======== ======== ======== ========= =========
Net income (loss) per share: Basic $0.03 $0.08 $0.02 $0.07 $(0.01) Diluted $0.03 $0.08 $0.02 $0.07 $(0.01) Weighted average shares: Basic 105,806 106,144 104,915 105,992 104,332 Diluted 107,444 107,661 108,360 108,544 104,332
INTEGRATED DEVICE TECHNOLOGY, INC. NON-GAAP ADJUSTMENTS (Unaudited)
(In thousands) Three Months Ended Nine Months Ended ---------------------------------------------------------------------- Jan. 2, Sep. 26, Dec. 28, Jan. 2, Dec. 28, 2005 2004 2003 2005 2003 -------- -------- -------- -------- --------
Net income (loss) $3,348 $8,853 $2,340 $7,154 $(1,262) -------- -------- -------- -------- --------
Non-GAAP adjustments:
Cost of goods sold:
Restructuring charges(1) 322 - - 347 15 Asset Impairment(2) (109) (1,585) - (1,903) - Plant closure costs(2) 33 44 269 272 831 Amortization of acquisition-related intangibles(3) 1,626 1,313 603 3,953 1,194 Patent Settlement - - - (18) -
Operating expenses:
Acquired IPR&D(3) 29 - - 1,765 264 Plant closure costs(2) - - - - 36 Restructuring charges(1) 98 - 227 750 1,520 Amortization of acquisition- related intangibles(3) 421 364 517 1,323 1,453 Acquisition related costs(4) 507 494 - 1,593 -
(Gain) Loss on equity investments(5) - - - 12,831 (3,151)
Other income(6) - - 108 - (794)
Taxes(6) (21) 18 (108) (31) (2,038) -------- -------- -------- -------- -------- Total Non-GAAP adjustments 2,906 648 1,616 20,882 (670) -------- -------- -------- -------- -------- Non-GAAP net income (loss) $6,254 $9,501 $3,956 $28,036 $(1,932) ======== ======== ======== ======== ========
(1) Consists of costs for restructuring actions announced in fiscal years 2004-2005, primarily related to severance.
(2) Consists of costs associated with the closure of our Salinas plant and gains realized on the sale of related assets held for sale.
(3) Consists of costs related to our acquisition of Zettacom in Q1 2005, TCAM3 acquisition from IBM in Q2 2004 and acquisitions of Newave and Solidum in Q1 2002 and Q3 2003, respectively. Newave-related costs include stock-based compensation and amortization of intangible assets. Zettacom, TCAM3 and Solidum-related costs include only amortization of intangible assets.
(4) Consists primarily of transitional costs incurred in connection with the acquisition of Zettacom, such as retention earned by former Zettacom employees, rent payments for the former Zettacom facility, and transitional services provided.
(5) Consists of an impairment charge related to our investment in NetLogic in Q1 2005 and a gain on the sale of our investment in PMC Sierra in Q2 2004.
(6) In Q1 and Q2 2004, we received non-recurring federal and state tax refunds for tax years prior to 1996 plus interest.
INTEGRATED DEVICE TECHNOLOGY, INC. NON-GAAP STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data) Three Months Ended Nine Months Ended ---------------------------------------------------------------------- Jan. 2, Sep. 26, Dec. 28, Jan. 2, Dec. 28, 2005 2004 2003 2005 2003 ---------- -------- -------- --------- ---------
Revenues $95,658 $96,671 $87,100 $293,636 $250,922
Cost of Revenues 48,174 46,890 44,753 142,209 134,510 ---------- -------- -------- --------- --------- Gross profit 47,484 49,781 42,347 151,427 116,412 ---------- -------- -------- --------- --------- Operating expenses:
Research and development 25,596 24,775 23,210 75,321 73,063 Selling, general and administrative 18,034 17,617 17,541 54,307 53,150 ---------- -------- -------- --------- ---------
Total operating expenses 43,630 42,392 40,751 129,628 126,213 ---------- -------- -------- --------- --------- Operating income (loss) 3,854 7,389 1,596 21,799 (9,801)
Interest expense (13) (26) (69) (86) (279)
Interest income and other, net 3,657 2,824 2,895 8,986 9,359 ---------- -------- -------- --------- ---------
Income (loss) before income taxes 7,498 10,187 4,422 30,699 (721)
Provision for income taxes 1,244 686 466 2,663 1,211 ---------- -------- -------- --------- --------- Net income (loss) $6,254 $9,501 $3,956 $28,036 $(1,932) ========== ======== ======== ========= =========
Net income (loss) per share: Diluted $0.06 $0.09 $0.04 $0.26 $(0.02) Weighted average shares: Diluted 107,444 107,661 108,360 108,544 104,332
Non-GAAP results exclude acquisition-related charges, and other expenses and benefits that management believes are not directly related to our ongoing operations. These non-GAAP results are consistent with another way management internally analyzes IDT's results and may be useful; however, 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.
INTEGRATED DEVICE TECHNOLOGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
Jan. 2, Mar. 28, (In thousands) 2005 2004 ---------------------------------------------------------------------- ASSETS
Current assets: Cash and cash equivalents $247,392 $223,360 Short-term investments 342,374 384,854 Accounts receivable, net 50,115 53,091 Inventories 44,425 32,745 Prepaids and other current assets 11,431 12,101 --------- --------- Total current assets 695,737 706,151
Property, plant and equipment, net 105,455 108,424 Goodwill and other intangibles 86,558 52,784 Other assets 9,170 38,194 --------- --------- TOTAL ASSETS $896,920 $905,553 ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $23,289 $20,190 Accrued compensation and related expenses 15,170 11,560 Deferred income on shipments to distributors 19,783 21,411 Income taxes payable 33,743 33,267 Other accrued liabilities 19,135 19,250 --------- --------- Total current liabilities 111,120 105,678
Long term liabilities 12,903 15,651 --------- --------- Total liablities 124,023 121,329
Stockholders' equity 772,897 784,224 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $896,920 $905,553 ========= =========
--30--EB/sf*
CONTACT: IDT Dawn Morse, 408-654-6515 (Investor Relations) dawn.morse@idt.com Phil Bourekas, 408-727-6116 (Worldwide Marketing) phil.bourekas@idt.com or Porter Novelli Brad Langley, 408-369-1500 brad.langley@porternovelli.com
KEYWORD: CALIFORNIA INDUSTRY KEYWORD: HARDWARE MANUFACTURING TELECOMMUNICATIONS NETWORKING EARNINGS CONFERENCE CALLS SOURCE: Integrated Device Technology, Inc.
Copyright Business Wire 2005
Wenn Sie mehr über das Thema Aktien erfahren wollen, finden Sie in unserem Ratgeber viele interessante Artikel dazu!
Jetzt informieren!
Nachrichten zu Integrated Device Technology Inc.mehr Nachrichten
Keine Nachrichten verfügbar. |