IDT Announces Results of Second Quarter Fiscal Year 1999.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)--Oct. 13, 1998--IDT (Nasdaq:IDTI IDTI Integrated Device Technology Inc ) today announced results for the second quarter ended September September: see month. 27, 1998. Second-quarter revenues were $130.6 million, a 2.9 percent decrease from the immediately prior quarter, and a 9.2 percent decrease from $143.8 million in the year-ago quarter. Excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges, proforma Proforma A financial projection based on assumptions. pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta operating results, projected to be slightly below the $20.9 million loss of the previous quarter, remained flat with a $20.3 million loss. Second-quarter net loss, including non-recurring charges of $216.6 million, was $237.1 million or $2.88 per share. Prior-quarter net loss, including a non-recurring after-tax charge of $31.1 million, was $50 million or $.61 per share. Earnings in the year-ago quarter were $.03 per share. Units shipped were down compared to the immediately prior quarter, reflecting the traditionally slow summer quarter combined with the continuing semiconductor industry slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. . Partially offsetting the decline in revenue associated with decreased unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. was an increase in the Company's average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. (ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). ), in part due to stronger sales of the Company's WinChip(tm) microprocessor microprocessor, integrated circuit containing the arithmetic, logic, and control circuitry required to interpret and execute instructions from a computer program. . "The Company has taken several aggressive steps to bring its cost structure in line with our view of industry conditions during the balance of fiscal 1999 and fiscal 2000," said Len Perham, IDT's president and chief executive officer. "The final implementation of our cost reduction actions will be completed during the third fiscal quarter. This traditionally stronger quarter should allow for an improvement in operating results for that period, and our goal is to return to profitability in the fourth fiscal quarter." Q2 Fiscal 99 Non-Recurring Charge As announced in IDT's July 22, 1998 and September 9, 1998 press releases, second-quarter fiscal 1999 results include a non-recurring charge. The charge totals $216.6 million and was recorded in the statement of operations See Income statement. as follows: -0-
-- Asset impairment and other: $131.9 million. During the second
quarter of fiscal 1999, the Company concluded an asset impairment
review for its Oregon fabrication facility.
-- Provision for taxes: $35.0 million. The Company recorded a
provision for net deferred tax assets, which it carried on the
Balance Sheet.
-- Restructuring charge: $46.4 million. A provision for exit and
closure costs for the San Jose, Calif. manufacturing facility.
-- Other non-recurring operating expenses: $3.3 million.
The majority of the costs recognized in the Q2 non-recurring charge are non-cash in nature. Market Outlook "Despite the industry slowdown, 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 is continuing its focus in product definition and development for the communications market," said Dave Cote, vice president of marketing for IDT. "Revenue from this target market represented 65 percent of our overall revenue this quarter. We have extended this focus to our SRAM See static RAM. SRAM - static random-access memory development efforts with products like ZBT ZBT Zeta Beta Tau (fraternity) ZBT Zero Bus Turnaround (Integrated Device Technology, Inc.) ZBT Zildjian Bronze Technology (cymbal) ZBT Zero Balance Transfer (tm) SRAM, which is becoming a standard for communications. As a result, 75 percent of this quarter's revenue in SRAM was derived from communications customers." Other second quarter product highlights include: -0-
-- Two new 64-bit RISController(tm) microprocessors, the IDT
RC64474(tm)and IDT RC64475(tm). High performance, large internal
and external data bandwidth, and rapid interrupt response make
these processors ideal solutions for communications applications
such as Layer 3 switches and routers, DSLAMs, and WAN access
multiplexers.
-- WinChip x86 processor sales more than doubled compared to the
prior quarter as the product gained momentum worldwide. Sales
were particularly strong in emerging markets throughout Asia and
Europe. IDT will begin volume shipments of the WinChip 2(tm) with
AMD 3DNOW!(R) technology in the third fiscal quarter.
-- First shipments of the SWITCHStAR(tm) chip set in production
systems this quarter, with many designs moving to the prototyping
stage.
-- First shipments of the 4-Mbit asynchronous SRAM using IDT's
0.28-micron, high-performance CMOS process.
About IDT IDT enables a digitally connected world by providing innovative semiconductor solutions to leading-edge system designers in communications and computing computing - computer . IDT's broad product mix consists of communications memories, networking devices, both RISC RISC in full Reduced Instruction Set Computing Computer architecture that uses a limited number of instructions. RISC became popular in microprocessors in the 1980s. and x86 microprocessors This is a list of microprocessors. Intel
Headquartered in Santa Clara, Calif., the Company employs approximately 4,800 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). , 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. , the Philippines and Malaysia. 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. under the symbol "IDTI." Additional information about IDT is easily accessible through the World Wide Web (www.idt.com), 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, or via fax-on-demand at 800/9-IDT-FAX. 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. Note to Editors: IDT WinChip, Winchip 2, RC64474, RC64475, RISController , SWITCHStAR and ZBT are trademarks of 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. All other brands or products are the trademarks or registered trademarks of their respective owners. IDT, Inc. disclaims any proprietary interest in the trademarks of others. -0-
INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except
per share data)
Three Months Ended Six Months Ended
Sep. 27, Jun. 28, Sep. 28, Sep. 27, Sep. 28,
1998 1998 1997 1998 1997
------------------------------- --------------------
Revenues $ 130,635 $ 134,487 $ 143,807 $ 265,122 $ 292,680
Cost of revenues 89,983 93,198 88,643 183,181 181,180
Asset impairment
and other 131,944 28,916 -- 160,860 --
Restructuring
charges 46,384 -- -- 46,384 --
--------- --------- --------- --------- ---------
Gross profit (137,676) 12,373 55,164 (125,303) 111,500
--------- --------- --------- --------- ---------
Operating expenses:
Research and
development 36,440 39,425 30,632 75,865 60,454
Selling, general
and
administrative 25,709 26,534 20,048 52,243 42,412
--------- --------- --------- --------- ---------
Total operating
expenses 62,149 65,959 50,680 128,108 102,866
--------- --------- --------- --------- ---------
Operating income
(loss) (199,825) (53,586) 4,484 (253,411) 8,634
Interest expense (3,515) (3,287) (3,512) (6,802) (7,255)
Interest income
and other, net 1,428 1,366 2,641 2,794 4,860
--------- --------- --------- --------- ---------
Income (loss)
before income
taxes (201,912) (55,507) 3,613 (257,419) 6,239
Provision
(benefit) for
income taxes 35,173 (5,551) 1,012 29,622 1,747
--------- --------- --------- --------- ---------
Net income
(loss) $(237,085) $ (49,956) $ 2,601 $(287,041) $ 4,492
========= ========= ========= ========= =========
Net income
(loss) per
share:
Basic $ (2.88) $ (0.61) $ 0.03 $ (3.50) $ 0.06
Diluted $ (2.88) $ (0.61) $ 0.03 $ (3.50) $ 0.05
Weighted average
shares:
Basic 82,412 81,668 80,010 82,040 79,889
Diluted 82,412 81,668 83,669 82,040 83,412
INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
Sep. 27, Jun. 28, Mar. 29,
1998 1998 1998
(In thousands) -------- -------- --------
ASSETS
Current assets:
Cash and cash equivalents $128,976 $139,428 $146,114
Short-term investments 73,946 69,159 74,481
Accounts receivable, net 48,499 50,627 68,840
Inventories 55,693 61,420 60,737
Deferred tax assets 23,107 58,107 52,252
Prepayments and other current assets 13,847 18,352 22,179
-------- -------- --------
Total current assets 344,068 397,093 424,603
Property, plant and equipment, net 307,952 481,575 475,440
Other assets 68,582 66,676 68,912
-------- -------- --------
TOTAL ASSETS $720,602 $945,344 $968,955
======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 34,517 $ 44,121 $ 57,572
Accrued compensation and related
expenses 14,894 13,270 15,853
Deferred income on shipments to
distributors 38,905 50,551 51,835
Other accrued liabilities 69,221 51,343 33,821
-------- -------- --------
Total current liabilities 157,537 159,285 159,081
Convertible subordinated notes, net 184,055 183,905 183,756
Long-term obligations 84,596 79,853 56,640
Deferred tax liabilities 23,107 23,107 23,087
-------- -------- --------
Total liabilities 449,295 446,150 422,564
Stockholders' equity 271,307 499,194 546,391
-------- -------- -------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $720,602 $945,344 $968,955
======== ======== ========
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