IDT Announces Results for Fourth Fiscal Quarter and Full Fiscal Year 2002
Revenue Growth Resumes as Company Posts 8 Percent Sequential Increase
SANTA CLARA, Calif.--(BUSINESS WIRE)--April 23, 2002--IDT (Integrated Device Technology, Inc.)(Nasdaq:IDTI - news), 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 basis, net loss for the fourth fiscal quarter was $6.6 million ($0.06 per diluted 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 with 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 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, IDT's chief executive officer. ``Overall order rates held firm throughout the quarter at levels supporting a resumption in growth in our business. Improvement was led by our OEM and CEM 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 of our customers' inventories continues. We anticipate that revenue growth combined with the cost savings from the closure of our Salinas 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 Lang, 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 and voice gateway application segments.''
Highlights include:
Packet Processing Solutions:
According to a February 2002 report by RHK, Inc., IDT is the number one vendor of switching and routing semiconductors (defined as key data-plane ASSPs for core and edge switches and routers), and the market leader in the subcategory of classification devices based on 2001 revenues of our IP co-processor products. RHK is a market research and consulting firm specializing in the analysis of advanced technologies for the global telecommunications network.
IDT announced a new family of ternary Internet protocol (IP) co-processors which offers a glue-less quad data rate(TM) (QDR) interface to the new Intel® IXP2800 and IXP2400 network processors, and increases searching capabilities to achieve an unprecedented 125 million searches per second (MSPS), allowing for multiple lookups at OC-192 line rates.
IDT participated in the Intel Developer Forum, demonstrating the industry's first complete classification prototyping system with Solidum. The complete solution features IDT's 75P521AD00 IP co-processor evaluation board and Solidum's PAX.ware 1200 Evaluation System on an Intel® IXDP1200 Advanced Development Platform.
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 Leadership:
IDT introduced the high-performance TeraSync(TM) DDR 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 and targets data rates up to 40 Gbps.
Conference Call and Webcast Information
Investors can listen to a live or on-demand 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 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 that lead innovation and drive convergence in voice, data and wireless networks. IDT is focused on enhancing system bandwidth 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 SRAMs to meet the requirements of leading communications companies.
Headquartered in Santa Clara, Calif., the company employs approximately 3,700 people worldwide and has manufacturing facilities in California and Oregon, and test and assembly facilities in the Philippines and Malaysia. IDT stock is traded on the Nasdaq Stock Market® 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, as well as the Nasdaq-100 Index® (NDX), 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 by calling (800) 345-7015. The investor hotline is (408) 654-6420.
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.
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
========== ========== ==========
--------------------------------------------------------------------------------
Contact:
IDT
Investor Relations, 408/654-6420 (Financial)
E-mail: ir@idt.com
or
IDT Corporate Communications (Press)
Diana Pailthorpe, 408/492-8210
E-mail: diana.pailthorpe@idt.com |
