Integrated Device Sees FY03 Capital Spending $65M-$70 Million
WASHINGTON -(Dow Jones)- Integrated Device Technology Inc. expects capital expenditures for fiscal 2003 to total about $65 million to $70 million, according to the company's annual report filed Friday with the Securities and Exchange Commission.
The company curtailed its capital spending in the fiscal year ended March 31 ; its expenditures fell to $45.5 million from $116.2 million in fiscal 2001.
Integrated Device said its capital spending for the fiscal year ending March 28, 2003 , will depend on business conditions and be financed primarily through cash generated from operations and existing cash and investments.
Integrated Device Technology said it is considering terminating a synthetic lease related to its Hillsboro, Ore., manufacturing site.
The company said that if it decides to terminate the facility, it would exercise its option to purchase about $64 million in additional fixed assets, with about $50 million of the purchase price funded with money already pledged to collateralize the lease.
The balance of about $14 million would be funded by cash and investments, the company said in the filing.
A synthetic lease is a form of off-balance-sheet financing, under which an unrelated third party funds 100% of the costs of the property and leases the asset back to the company.
During fiscal 2000, Integrated Device renegotiated its synthetic lease and extended the term to May 2005 .
Integrated Device, based in Santa Clara, Calif. , designs, develops, manufactures and markets high-performance semiconductor products and modules for communications and computing. |
