IDT Announces Results for Fourth Fiscal Quarter and Full Fiscal Year 2002; Revenue Growth Resumes as Company Posts 8 Percent Sequential Increase.Business Editors SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BUSINESS WIRE)--April 23, 2002 IDT IDT Integrated Device Technology, Inc. (Santa Clara, CA, USA) IDT I Don't Think IDT Identity Theft IDT Interrupt Descriptor Table IDT Integrated DNA Technologies IDT Inactive Duty Training IDT Instructional Design & Technology (Integrated Device Technology IDT (NASDAQ: IDTI) was founded in 1980 as a semiconductor vendor. Employing approximately 2500 people worldwide, headquartered in San Jose, California and operating a fab in Hillsboro, Oregon, the company both designs and fabricates semiconductor components. , Inc.)(Nasdaq:IDTI IDTI Integrated Device Technology Inc ), a leading communications IC company, today announced results for the fourth fiscal quarter and full fiscal year 2002, ended March 31, 2002. Revenues for the fourth quarter were $86.6 million, an increase of 8 percent over the third quarter of fiscal 2002 and a decrease of 59.3 percent from the fiscal quarter ended April 1, 2001. Revenues for fiscal year 2002 were $379.8 million, a decrease of 61.7 percent over the previous fiscal year. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, net loss for the fourth fiscal quarter was $6.6 million ($0.06 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share), compared to net income of $55.6 million ($0.51 per diluted share) for the quarter one year ago, and for fiscal year 2002 net loss was $23.7 million ($0.23 per diluted share), compared to net income of $301.0 million ($2.73 per diluted share) during the previous fiscal year. Including certain costs, charges and gains in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , the Company lost $20.0 million in the fourth quarter of fiscal 2002, ($0.19 per diluted share). On a GAAP basis, one year ago the Company recorded a net loss of $27.7 million ($0.26 per diluted share) for the fourth quarter. On a GAAP basis, for fiscal year 2002 the net loss was $46.2 million ($0.44 per diluted share), compared to net income of $415.2 million ($3.76 per diluted share) during the previous fiscal year. Further information, including a detailed reconciliation of pro forma and GAAP results, is provided in the financial tables of this release. During the quarter ended March 31, 2002, customer order rates improved over prior quarter levels, and backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. shippable in the immediately following quarter to OEMs and CEMs (contract electronic manufacturers) increased. "I am pleased that our business returned to growth in the fourth fiscal quarter," said Jerry Taylor Jerry Taylor (born 1963 or 1964) is a senior fellow at the Cato Institute where he researches environmental policy. He holds a Bachelor of Arts degree in political science from the University of Iowa. , IDT's chief executive officer. "Overall order rates held firm throughout the quarter at levels supporting a resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the in growth in our business. Improvement was led by our OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and and CEM CEM contagious equine metritis. CEM selective medium chocolate agar made with Eugon agar and 5% horse blood; used to cultivate Taylorella equigenitalis. customers primarily in enterprise and storage applications. We see encouraging signs for continuing modest growth in our business, as several new programs begin to ramp and depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able of our customers' inventories continues. We anticipate that revenue growth combined with the cost savings from the closure of our Salinas Salinas, city, United States Salinas (səlē`nəs), city (1990 pop. 108,777), seat of Monterey co., W Calif.; inc. 1874. It is the shipping and processing center of a fertile valley famous for its grain and lettuce. factory, which is running ahead of schedule, should return the company to profitability during the second half of calendar 2002." Q4FY02 Highlights: "IDT made strong progress in several of its new business thrusts this quarter," said Greg GREG Great Egg Harbor National Scenic and Recreational River (US National Park Service) Lang Lang language LANG Louisiana Army National Guard Lang Langobardian (linguistics) LANG Los Angeles Newspaper Guild , IDT's president. "We saw strong growth in revenue from our IP co-processors and believe that it will continue into next quarter. We also made several key alliances and reference design announcements for our integrated communications processor solutions that will speed time to market for our customers in the DSL gateway See cable/DSL gateway. and voice gateway application segments." Highlights include: Packet Processing Solutions: -- IDT developed two reference designs in collaboration with Jungo Software Technologies: a data-only ADSL modem optimized for system cost, and a more fully featured design for gateways and integrated access devices (IADs). Jungo's OpenRG embedded software, based on the Linux operating system, is optimized for IDT's integrated communications processors, delivering a feature-rich platform that incorporates advanced system management functions to simplify the installation, management and network configuration functions associated with gateway products. -- IDT and VoicePump, Inc., a wholly owned subsidiary of DSP Group, Inc., announced a strategic alliance to deliver a voice-enabled ADSL reference platform for customers designing customer premises equipment (CPE). The combination of IDT's RC32355 integrated communications processor and VoicePump's VP140 intelligent CODEC is intended to provide a highly scalable IAD platform that addresses support of data and voice traffic. Network Edge Solutions: -- IDT developed two reference designs in collaboration with Jungo Software Technologies: a data-only ADSL modem optimized for system cost, and a more fully featured design for gateways and integrated access devices (IADs). Jungo's OpenRG embedded software, based on the Linux operating system, is optimized for IDT's integrated communications processors, delivering a feature-rich platform that incorporates advanced system management functions to simplify the installation, management and network configuration functions associated with gateway products. -- IDT and VoicePump, Inc., a wholly owned subsidiary of DSP Group, Inc., announced a strategic alliance to deliver a voice-enabled ADSL reference platform for customers designing customer premises equipment (CPE). The combination of IDT's RC32355 integrated communications processor and VoicePump's VP140 intelligent CODEC is intended to provide a highly scalable IAD platform that addresses support of data and voice traffic. FIFO (First In First Out) A storage method that retrieves the item stored for the longest time. Contrast with LIFO. See traffic engineering methods. FIFO - first-in first-out Leadership: -- IDT introduced the high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" TeraSync(TM) DDR (Double Data Rate) Refers to an SDRAM memory chip that increases performance by doubling the effective data rate of the frontside bus. For more details, see SDRAM. DDR - Double Data Rate Random Access Memory FIFO family, the industry's only FIFO family with double data rate capabilities. Designed to offer the next level of performance through a DDR interface and advanced feature set, this family of devices offers clock cycle speeds up to 250 MHz (MegaHertZ) One million cycles per second. It is used to measure the transmission speed of electronic devices, including channels, buses and the computer's internal clock. A one-megahertz clock (1 MHz) means some number of bits (16, 32, 64, etc. and targets data rates up to 40 Gbps. Conference Call and Webcast Information Investors can listen to a live or on-demand On-Demand refers to a service or feature which addresses the user's need for instant gratification and immediacy of use. In most cases the value proposition for an on-demand service is wrapped up in the fact that the user or consumer of the service avoids a significant up-front replay Webcast of IDT's quarterly financial conference call at www.idt.com. A taped replay of the Company's quarter-end conference call will also be available by calling (888) 266-2081 (pass code is 5938892) beginning at 4:30 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT on April 23 and will be accessible until 9:00 p.m. PDT on April 30, 2002. About IDT IDT enhances the global network with semiconductor solutions for communications companies Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. that lead innovation and drive convergence convergence Mathematical property of infinite series, integrals on unbounded regions, and certain sequences of numbers. An infinite series is convergent if the sum of its terms is finite. in voice, data and wireless networks. IDT is focused on enhancing system bandwidth bandwidth Measurement of the capacity of a communications signal. For digital signals, the bandwidth is the data speed or rate, measured in bits per second (bps). For analog signals, it is the difference between the highest and lowest frequency components, measured in hertz with communications-specific products including integrated communications processors, IP co-processors and telecom products. The portfolio is also comprised of key support products optimized for communications applications, including the industry's broadest selection of FIFOs, multi-ports, and clock management products. In addition, the product mix includes high-performance digital logic and high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. SRAMs to meet the requirements of leading communications companies. Headquartered in Santa Clara, Calif., the company employs approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3,700 people worldwide and has manufacturing facilities in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , and test and assembly facilities in the Philippines Philippines officially Republic of the Philippines Island country, western Pacific Ocean, on an archipelago off the southeast coast of Asia. Area: 122,121 sq mi (316,294 sq km). Population (2005 est.): 84,191,000. and Malaysia Malaysia (məlā`zhə), independent federation (2005 est. pop. 23,953,000), 128,430 sq mi (332,633 sq km), Southeast Asia. The official capital and by far the largest city is Kuala Lumpur; Putrajaya is the adminstrative capital. . IDT stock is traded on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. (R) under the symbol "IDTI." The company is included in the S&P 1000, which is a combination of the S&P MidCap mid·cap adj. 1. Or or relating to corporations whose retained earnings and outstanding shares of common stock have a value between those of small cap companies and large cap corporations. 2. 400 and S&P SmallCap 600 Indices, as well as the Nasdaq-100 Index(R) (NDX NDX Index NDX Index (File Name Extension) NDX Northern Document Exchange NDX Index File ), which includes the largest non-financial companies on the Nasdaq Stock Market. Additional information about IDT is easily accessible at www.idt.com or on CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). by calling (800) 345-7015. The investor hotline 1. (company) Hotline - Hotline Communications Ltd.. 2. (messaging) Hotline - Hotline Connect. is (408) 654-6420. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in this release involve a number of risks and uncertainties including, but not limited to, product demand, manufacturing capacity and costs, competition, pricing, patent and other intellectual property rights of third parties, timely development and supply of new products and manufacturing processes, availability of capital, cash flow and other risk factors detailed in the Company's Securities and Exchange Commission filings. Actual results may differ materially from the Company's projections. TeraSync is a trademark of Integrated Device Technology, Inc. All other trademarks mentioned are the property 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
--------------------------- -------------------
Mar. 31, Dec. 30, Apr. 1, Mar. 31, Apr. 1,
2002 2001 2001 2002 2001
--------------------------- ------------------
Revenues $ 86,621 $ 80,171 $212,897 $379,817 $991,789
Cost of revenues 56,163 53,555 95,300 241,841 406,450
Restructuring
charges, asset
impairment and other 3,870 18,571 -- 24,742 --
-------- -------- -------- -------- --------
Gross profit 26,588 8,045 117,597 113,234 585,339
-------- -------- -------- -------- --------
Operating expenses:
Research and
development 31,962 31,542 33,071 129,146 128,749
Selling, general
and administrative 18,707 20,176 27,957 83,987 124,177
Acquired in-process
research and
development -- -- -- 16,000 --
Amortization of
intangibles 1,681 1,681 -- 6,724 --
-------- -------- -------- -------- --------
Total operating
expenses 52,350 53,399 61,028 235,857 252,926
-------- -------- -------- -------- --------
Operating income
(loss) (25,762) (45,354) 56,569 (122,623) 332,413
Gains (losses) on
equity investments -- 36,160 (141,938) 36,160 86,994
Interest expense (203) (153) (475) (1,238) (3,134)
Interest income and
other, net 6,459 7,136 13,430 38,744 46,948
--------- ------- ------- ------- --------
Income (loss) before
income taxes (19,506) (2,211) (72,414) (48,957) 463,221
Provision (benefit)
for income taxes 474 (2,425) (44,726) (2,765) 48,018
-------- ------- ------- ------- --------
Net income (loss) $(19,980) $ 214 $(27,688) $(46,192) $415,203
========= ======== ======== ========= ========
Net income (loss)
per share:
Basic $ (0.19) $ 0.00 $ (0.26) $ (0.44) $ 3.99
Diluted $ (0.19) $ 0.00 $ (0.26) $ (0.44) $ 3.76
Weighted
average shares:
Basic 104,351 104,111 105,284 104,560 104,042
Diluted 104,351 107,680 105,284 104,560 110,287
INTEGRATED DEVICE TECHNOLOGY, INC.
PRO FORMA ADJUSTMENTS
(Unaudited)
(In thousands)
Three Months Ended Twelve Months Ended
--------------------------- --------------------
March 31, Dec. 30, Apr. 1, March 31, Apr. 1,
2002 2001 2001 2002 2001
--------------------------- -------------------
Net income (loss) $ (19,980) $ 214 $(27,688) $(46,192) $415,203
--------- -------- --------- --------- --------
Special items:
Cost of goods sold:
Restructuring
charges (1) (3,870) (1,138) -- (7,309) --
Asset impairment (2) -- (17,433) -- (17,433) --
Other (6) (3,127) -- -- (3,127) --
Amortization of
acquisition-related
charges (3) (786) (786) -- (3,144) --
Operating expenses:
Acquired IPR&D (3) -- -- -- (16,000) --
Other (6) (76) -- -- (76) --
Restructuring
charges (1) (172) (902) -- (1,289) --
Acquisition-related
costs (3) (3,252) (2,990) -- (11,839) --
Interest income and
other, net:
Gains and losses on
equity investments,
net (4) -- 36,160 (141,938) 36,160 86,994
Other, net (5) -- (300) -- 4,785 --
Tax effects (2,118) (539) 58,618 (3,171) 27,226
--------- --------- --------- -------- --------
Total special items (13,401) 12,072 (83,320) (22,443) 114,220
========= ========= ========= ======== ========
Pro forma
net income (loss) $ (6,579) $(11,858) $ 55,632 $(23,749) $300,983
========= ========= ========= ========= ========
(1) Represents costs, primarily severance, of restructuring
actions taken in Q1, Q3 and Q4 2002.
(2) We recorded an asset impairment charge related to our Salinas,
Calif. wafer fabrication plant in Q3 2002.
(3) Costs relate to our Newave acquisition in April 2001 and
include an IPR&D charge, deferred stock compensation and
amortization of goodwill.
(4) We sold all of our holdings in Monolithic Systems Technology
(MoSys) in Q3 2002 and recorded a pretax gain of $35.7
million. We sold portions of our holdings in PMC Sierra (PMC)
in Q3 2002 and Q3 2001. In Q2 2001, we recorded a pretax gain
of $240.9 million resulting from the acquisition of Quantum
Effect Devices, Inc., an IDT investee, by PMC. In Q4 2001, we
recorded a $141.9 million charge related to the
other-than-temporary impairment of our PMC holdings.
(5) Relates primarily to our Q2 2002 exercise of an option to
purchase land adjacent to our manufacturing facility in
Oregon. We immediately sold the land at a pretax gain of $5.1
million.
(6) Represents other costs associated with the closure of our
Salinas plant, primarily $2.9 million in retention bonuses.
INTEGRATED DEVICE TECHNOLOGY, INC.
PRO FORMA STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per
share data) Three Months Ended Twelve Months Ended
--------------------------- -------------------
Mar. 31, Dec. 30, Apr. 1, Mar. 31, Apr. 1,
2002 2001 2001 2002 2001
--------------------------- -------------------
Revenues $ 86,621 $ 80,171 $212,897 $379,817 $991,789
Cost of revenues 52,250 52,769 95,300 235,570 406,450
------- -------- -------- -------- --------
Gross profit 34,371 27,402 117,597 144,247 585,339
------- -------- -------- -------- --------
Operating expenses:
Research and
development 30,143 29,842 33,071 123,448 128,749
Selling, general
and administrative 18,707 19,665 27,957 83,205 124,177
------- -------- -------- -------- --------
Total operating
expenses 48,850 49,507 61,028 206,653 252,926
------- -------- -------- -------- --------
Operating income
(loss) (14,479) (22,105) 56,569 (62,406) 332,413
Interest expense (203) (153) (475) (1,238) (3,134)
Interest income and
other, net 6,459 7,436 13,430 33,959 46,948
------- -------- -------- -------- --------
Income (loss) before
income taxes (8,223) (14,822) 69,524 (29,685) 376,227
Provision (benefit)
for income taxes (1,644) (2,964) 13,892 (5,936) 75,244
------- -------- -------- -------- --------
Net income (loss) $ (6,579) $(11,858) $ 55,632 $(23,749) $300,983
======== ======== ======== ======== ========
Net income (loss)
per share:
Diluted $ (0.06) $ (0.11) $ 0.51 $ (0.23) $ 2.73
Weighted
average shares:
Diluted 104,351 104,111 109,654 104,560 110,287
Our pro forma results exclude acquisition-related charges and
unusual or infrequent expenses or benefits that are not directly
related to our ongoing operations. We believe that these pro forma
results provide useful information; however, our presentation of pro
forma results is not in accordance with GAAP and may not be comparable
to pro forma information provided by other companies. Pro forma
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)
Mar. 31, Dec. 30, Apr. 1,
2002 2001 2001
(In thousands)
-------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 256,172 $ 223,500 $ 397,709
Short-term investments 418,228 303,727 280,620
Accounts receivable, net 40,067 30,224 94,362
Inventories 78,247 76,880 75,614
Deferred tax assets 74,874 81,975 81,370
Prepayments and
other current assets 19,787 17,515 25,542
---------- ---------- ----------
Total current assets 887,375 733,821 955,217
Property, plant and
equipment, net 221,499 235,476 284,702
Long-term investments -- 167,479 160,273
Goodwill and other intangibles 57,281 59,748 --
Other assets 59,664 68,227 60,720
---------- ---------- ----------
TOTAL ASSETS $1,225,819 $1,264,751 $1,460,912
========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 18,342 $ 21,573 $ 45,915
Accrued compensation
and related expenses 14,068 15,709 53,543
Deferred income on
shipments to distributors 36,443 38,399 91,374
Income taxes payable 21,863 15,720 24,122
Other accrued liabilities 29,173 21,525 39,532
---------- ---------- ----------
Total current liabilities 119,889 112,926 254,486
Other liabilities 51,221 70,981 66,529
---------- ---------- ----------
Total liabilities 171,110 183,907 321,015
Stockholders' equity 1,054,709 1,080,844 1,139,897
---------- ---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,225,819 $1,264,751 $1,460,912
========== ========== ==========
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