IDT Announces Results for Fourth Fiscal Quarter and Full Fiscal Year 2003
Wednesday April 23, 4:06 pm ET
Revenue Growth Resumes as the Company Posts $80.8 Million in the Fourth Fiscal Quarter
SANTA CLARA, Calif.--(BUSINESS WIRE)--April 23, 2003--IDT(TM) (Integrated Device Technology, Inc.; Nasdaq:IDTI), a leading communications IC company, today announced results for the fourth fiscal quarter and full fiscal year 2003, ended March 30, 2003.
Revenues for the fourth quarter were $80.8 million, an increase of 2.3 percent over the third quarter of fiscal 2003 and a decrease of 6.7 percent from the fiscal quarter ended March 31, 2002. Revenues for fiscal year 2003 were $343.9 million, a decrease of 9.5 percent over the previous fiscal year. On a pro-forma basis, net loss for the fourth fiscal quarter was $23.6 million ($0.23 per share), compared to a net loss of $6.6 million ($0.06 per share) for the quarter one year ago; and the net loss for the full fiscal year 2003 was $53.2 million ($0.51 per share), compared to a net loss of $23.7 million ($0.23 per share) during the previous fiscal year.
Including certain costs, charges and gains in accordance with GAAP, the Company lost $239.1 million in the fourth quarter of fiscal 2003 ($2.31 per share). On a GAAP basis, one year ago the Company recorded a net loss of $20.0 million ($0.19 per share) for the fourth quarter. On a GAAP basis for fiscal year 2003, the net loss was $277.9 million ($2.68 per share), compared to a net loss of $46.2 million ($0.44 per share) during the previous fiscal year. Included in the fourth-quarter results were restructuring and impairment charges, and asset write-downs of $213.3 million. This included a $107.9 million write-down of manufacturing fixed assets, a reserve of $88.5 million to fully reserve the Company's net deferred tax assets, and a charge of $13.5 million related to certain intangible technology assets. Of the $213.3 million, only about $3 million represent cash charges, primarily severance related to reducing headcount by approximately 150 positions during the quarter. Further information, including a detailed reconciliation of pro-forma and GAAP results, is provided in the financial tables of this release.
"We are pleased with the progress we've made in substantially reducing our inventory levels and aggressively cutting spending to better align our business model with the current industry conditions and forecasted revenue," said Greg Lang, president and CEO of IDT. "Assuming moderate improvement in economic conditions, we anticipate that the actions we have taken will position us to generate positive cash flow starting as early as the first quarter and achieve pro-forma profitability during the fiscal year."
FY03 Highlights:
IDT added several key senior executives in fiscal 2003. IDT named Clyde Hosein as vice president and chief financial officer, Thomas Brenner as vice president of worldwide marketing, and Scott Sarnikowski as vice president and co-general manager of the IP co-processor division. In addition, Lang completed his planned transition to president and CEO and joined the IDT board of directors.
The Company received several accolades with its network search engines (NSEs), including the EDN Top 100 Products Award for 2002, being named the leading vendor of routing and switching semiconductors by RHK, Inc. and named the technology and volume shipment leader by IDC, and securing several new design wins at key communications customers.
IDT continued to enhance its leadership in packet processing by shipping its one-millionth NSE and introducing the industry's fastest, widest and highest-performance NSE. In addition, IDT also began sampling its devices with fully integrated interfaces to the Intel and AMCC network processors, and introduced a suite of development tools that help speed development time, decrease system costs and improve overall system performance.
IDT acquired Solidum Systems, the leading provider of classification and content-inspection processing solutions. This acquisition combined the packet-processing strengths of two industry leaders and allows for IDT to provide a complete Layer 2-7 classification solution.
IDT introduced the RC32438 Interprise(TM) integrated communications processor for managed Layer-2 and Layer-3 Ethernet switches. This integrated processor received a product-of-the-year award from analogZONE for boosting system bandwidth and efficiency. The RC32438 processor delivers up to 266 MHz in performance and incorporates a DDR memory controller, a 32-bit version 2.2 PCI controller and two on-chip Ethernet interfaces to address the bandwidth-demanding requirements of enterprise and access applications.
The Company extended its leadership in FIFO technology with the introduction of high-speed TeraSync(TM) quad/dual FIFO products that provide two or four TeraSync FIFOs in a single package, thereby reducing board space and overall system costs. These new TeraSync FIFOs are ideal for applications where data-stream convergence and parallel buffering of multiple data paths are required, including bandwidth-demanding communications systems, data acquisition systems and medical equipment.
IDT announced several new multi-port devices, including the industry's first 9-Mbit, monolithic, synchronous dual-ports; the industry's first 2.5-volt synchronous and asynchronous dual-ports; and the industry's fastest and lowest-powered synchronous FourPort(TM) devices. These new families further expand the Company's leadership in multi-port technology.
IDT enhanced its clock portfolio with the new TeraClock(TM) family of zero delay buffers and programmable skew devices that provide the industry's broadest range of translation capabilities between I/O standards. In addition, the Company also announced the industry's first family of zero delay buffers capable of user-selectable 2.5- and 3.3-volt outputs, allowing designers increased flexibility to integrate multiple voltage inputs on a single board.
Webcast and Conference Call Information
Investors can listen to a live or replay Webcast of the Company's quarterly financial conference call at www.idt.com. The live Webcast begins at 1:30 p.m. PDT on April 23, 2003. The Webcast replay will be available after 4 p.m. PDT on April 23 through May 14, 2003. A taped telephone replay of the conference call will be available at 800/475-6701 (access code is 681310) beginning at 5 p.m. PDT on April 23 and will be accessible until 9 p.m. PDT on April 30, 2003.
Investor Information
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. 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. IDT is focused on enhancing system bandwidth with communications-specific products including network search engines, classification and content inspection processors and integrated communications processors. The portfolio is also comprised of products optimized for communications applications, including telecom products, 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 3,100 people worldwide and has a wafer manufacturing facility in Oregon, and test and assembly facilities in the Philippines and Malaysia. Additional information about IDT is easily accessible at www.idt.com.
Forward-looking statements in this release involve a number of risks and uncertainties including, but not limited to, global business and economic conditions, 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.
FourPort, Interprise, IDT, TeraClock and TeraSync are trademarks of Integrated Device Technology, Inc. All other brands, product names and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners. |
