IDT Delivers Record EPS and Revenue of $0.58 On Sales of $231 Million in First Quarter; Results Reflect Strength in Communications Infrastructure Markets
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SANTA CLARA, Calif.--(BUSINESS WIRE)--July 18, 2000--IDT (Nasdaq:IDTI) today announced results for the quarter ended July 2, 2000, the first quarter of fiscal 2001. The Company reported first quarter net income of $62.4 million, or $0.58 per diluted share, on revenue of $231.3 million. Operating earnings per diluted share of $0.58 represent a sequential increase of over 40 percent compared with the $0.41 recorded for IDT's fourth fiscal quarter of 2000, and a 480 percent increase from the first quarter of fiscal 2000.
"IDT's results continue to demonstrate financial leverage available in IDT's business," said Alan Krock, chief
financial officer. "On an operating basis, our gross margin improved for the eighth consecutive quarter, rising
more than seven full percentage points to 57.7 percent and operating income increased by nine percentage
points to 31 percent. IDT's proprietary and limited second-source products, now about half of the Company's
revenue, contributed significantly to our improved margins. These products provide margins in excess of the
Company average and provide opportunity for further margin expansion."
The Company recorded revenue growth of more than 17 percent, compared to the immediately prior quarter,
and greater than 50 percent compared to the corresponding quarter of the preceding fiscal year. For the
quarter, products sold into communications markets continued to account for more than 70 percent of revenue.
The Company posted record bookings for the third consecutive quarter and customer acceptance and
design-in activity for all of IDT's communications ICs continued at a strong pace.
"I continue to be pleased with the progress IDT is making towards delivering improved results," said Jerry
Taylor, president and chief executive officer. "While we are benefiting from strong market demand, IDT's
strategic customer relationships and new product acceptance across all product lines are key factors in this
quarter's record results. As an example, some new families of FIFOs, dual-ports and other communications
ICs are posting quarter-on-quarter revenue increases significantly in excess of the Company average."
Q1 Highlights
"IDT kicked off FY01 with continued focus on delivering more communications-specific products for its
networking and telecommunications customers," said Dave Cote, vice president of communications ASSPs
and worldwide marketing. "With an excellent flow of new product introductions, we continue to offer customers
the broad array of devices they need for their next-generation applications."
Q1 product highlights include:
-- IDT continued to strengthen its position in multi-port
products with the industry's fastest and highest-density true
dual-ports. The new x36 dual-ports have densities as high as 4
Mbits and run at speeds up to 166 MHz. These products are
aimed at meeting the needs of high-speed switching
applications in telecommunications, data communications and
storage area networks (SANs).
-- The RC32334 integrated embedded processor, announced in May
2000, is the first in a family of integrated processors
targeted at communications applications. Based on the RC32300
architecture, this processor lays the groundwork for a family
of integrated processors designed to power the increasing
array of networking and communications applications.
-- In April 2000, IDT introduced a new family of Time Slot
Interchange (TSI) Switch products, which have application in
emerging Voice-over-IP solutions. IDT began sampling TSI
Switches last quarter and shipped first production revenue of
these products in the first quarter of fiscal 2001.
-- In addition to strong acceptance among IDT's largest
communications customers, emerging companies choose IDT
products for their leading-edge applications. As an example,
PixStream, a leading developer of video head-end solutions for
telephone companies, selected a variety of IDT communications
ICs, including SwitchStar(TM) switching devices, board-level
networking devices and communications memories for its digital
video networking systems.
Investor Information
A taped replay of the Company's quarter-end conference call will be available at 888/266-2081 (password is
4381298) beginning at 8 p.m. PDT today and will be accessible through July 25, 2000. IDT stock is traded on
the Nasdaq stock market under the symbol "IDTI." Additional information about IDT is easily accessible at
www.idt.com or CD-ROM by calling 800/345-7015. The investor hotline is 408/654-6420.
About IDT
IDT enhances the global network with semiconductor solutions for communications companies that lead
innovation and drive convergence in voice, data and wireless networks. Communications-industry leaders
choose IDT for its high-performance products that accelerate time to market and boost bandwidth in the
network infrastructure. IDT's communications memories offer the broadest selection of FIFOs and multi-ports;
its communications ASSPs include ATM switches, TSI/TDM switches, high-speed PHYs and embedded
processors; and the product mix also incorporates high-speed SRAMs; high-performance logic; and clock
management products. Headquartered in Santa Clara, Calif., the Company employs approximately 4,800
people worldwide and has manufacturing facilities in California, Oregon, the Philippines and Malaysia.
Forward-looking statements 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: SwitchStar is a trademark of Integrated Device Technology, Inc. All other brands or products
are the trademarks or registered trademarks of their respective owners. IDT disclaims any proprietary interest
in the trademarks of others.
INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per
share data) Three Months Ended
Jul. 2, Apr. 2, Jun. 27,
2000 2000 1999
----------------------------------------------------------------------
Revenues $ 231,255 $ 197,499 $ 153,981
Cost of revenues 97,839 98,486 85,612
Restructuring
charges, asset
impairment and other -- (943) --
--------- --------- ---------
Gross profit 133,416 99,956 68,369
--------- --------- ---------
Operating expenses:
Research and
development 29,720 26,130 27,039
Selling, general and
Administrative 32,078 29,978 31,213
Merger expenses -- -- 4,840
--------- --------- ---------
Total operating
expenses 61,798 56,108 63,092
--------- --------- ---------
Operating income 71,618 43,848 5,277
Interest expense (1,579) (3,400) (3,656)
Interest income
and other, net 7,950 12,642 7,303
--------- --------- ---------
Income before income
taxes 77,989 53,090 8,924
Provision for
income taxes 15,598 2,655 446
--------- --------- ---------
Net income $ 62,391 $ 50,435 $ 8,478
========= ========= =========
Net income per share:
Basic $ 0.62 $ 0.54 $ 0.10
Diluted $ 0.58 $ 0.49 $ 0.09
Weighted average shares:
Basic 100,269 94,247 88,320
Diluted 107,526 102,168 90,754
INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
Jul. 2, Apr. 2,
2000 2000
(In thousands)
----------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 381,764 $ 372,606
Equity securities 160,284 223,906
Other short-term investments 83,079 49,439
Accounts receivable, net 104,683 90,957
Inventories 73,930 72,279
Deferred tax assets 22,423 22,423
Prepayments and other current assets 13,159 18,207
---------- ----------
Total current assets 839,322 849,817
Property, plant and equipment, net 262,681 260,107
Long-term investments and other assets 101,878 52,258
---------- ----------
TOTAL ASSETS $1,203,881 $1,162,182
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 45,881 $ 37,294
Accrued compensation
and related expenses 27,574 28,530
Deferred income on shipments
to distributors 89,464 74,585
Other accrued liabilities 53,748 46,477
---------- ----------
Total current liabilities 216,667 186,886
Convertible subordinated notes, net -- 179,550
Deferred tax liabilities 22,423 22,423
Other liabilities 87,795 92,172
---------- ----------
Total liabilities 326,885 481,031
Stockholders' equity 876,996 681,151
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $1,203,881 $1,162,182
========== ==========
CONTACT: IDT Corporate Communications
Julie Cline, 408/654-6464 (Press Contact)
cline@idt.com
or
IDT Investor Relations, 408/654-6420 (Financial Contact)
ir@idt.com |
