SANTA CLARA, Calif.--(BUSINESS WIRE)--October 14, 1997-- Integrated Device Technology, Inc. (IDT)
(NASDAQ:IDTI) today announced results for the second quarter of fiscal 1998, ended September 28, 1997.
Revenue for the quarter was $143,807,000, a 19.4 percent increase compared to the $120,485,000 recorded for the same period
one year ago. Revenue declined 3.4 percent compared to the $148,873,000 posted in the immediately prior quarter.
Fully diluted quarterly earnings per share were a profit of $0.03, compared to a loss of $0.13 for the year-ago quarter and a profit
of $0.02 for the immediately prior quarter. Fully diluted and primary share earnings were the same due to anti-dilution criteria.
Results for the six months ended September 28, 1997 were a profit of $4,492,000 or $0.05 per share, compared to a loss of
$1,465,000 or $0.02 per share on a fully diluted basis for the first six months of the prior fiscal year.
"I am very pleased that we maintained profitability for the third quarter in a row," said Len Perham, IDT's president and chief
executive officer. "We achieved this in the face of seasonal summer weakness, softer business activity among our
communications customers, and some increased spending to ramp manufacturing of new products like the IDT WinChip C6," said
Perham.
"As we expected, new orders were seasonally weak in July and August," continued Perham. "While orders may have bottomed in
August, the improvement in September was modest - not the sharp rebound that some in the industry had forecast."
Orders were up compared with the same period one year ago, but down from the immediately prior quarter.
After falling sequentially in each of the five previous quarters, the Company's average selling price (ASP) across all products was
flat with the immediately prior quarter. ASPs for each major product division were either flat with the immediately prior quarter or
improved. The Company's unit sales were down very slightly compared with the prior quarter.
New Product Momentum Continued in Second Quarter
"This quarter has seen a solid stream of new IDT products," said Dave Cote, IDT's vice president of marketing.
In this quarter, IDT recorded first revenue shipments to customers for the IDT WinChip C6 processor. Additionally, the product
received Windows certification from Microsoft as well as the platinum level of certification by XXCAL, for hardware and
software compatibility. The WinChip C6 is currently being qualified at board and system manufacturers and is supported by BIOS
vendors Award Software, Phoenix Technologies, Systemsoft, and American Megatrends.
IDT also continued its commitment to the important communications markets during fiscal Q2. IDT, Motorola and Micron
announced a partnership to bring to market ZBT SRAM technology developed by IDT under the common name "ZBT." This
effort and the design efforts of communications customers will help to establish ZBT SRAM as the standard for high-performance
SRAM in switching and routing applications.
Two new families of communications memories were brought to market this quarter. The Bank-Switchable Dual-Port family
represents a performance advantage to multiplexed SRAM applications and the 36-bit synchronous FIFO family enables high
performance, flexible bus matching capabilities for ease of design.
IDT also significantly enhanced the performance of its 64-bit MIPS RISC microprocessors used in a variety of communications
products. The company introduced 180 and 200 MHz versions of its popular RV4640 and RV4650, improving performance by as
much as 50 percent.
Electronic Media Program
Information about IDT is easily accessible through CD-ROM by calling (800) 345-7015, the World Wide Web
(http://www.idt.com), and fax-on-demand services by calling (800) 9-IDT-FAX. To receive IDT's Q2FY98 earnings release from
fax-on-demand, call 800-9-IDT-FAX (800-943-8329) and request document No. 0084. Request document NO. 1000 for an index
of all current product and press release information.
About IDT
IDT enables a digitally-connected world - delivering innovative, high-performance, integrated circuits and modules to its key
markets: data and telecommunications equipment, including routers, hubs, switches, and cellular base stations; personal computers;
and shared network devices, including workstations, servers, and printers.
IDT's product mix consists of advanced communications products and specialty memories, high-speed SRAM, and
high-performance logic and microprocessors. Headquartered in Santa Clara, Calif., with manufacturing facilities located in
California, Oregon, the Philippines and Malaysia, IDT employs approximately 4,600 people worldwide. The company's stock is
traded on the NASDAQ stock market under the symbol "IDTI."
Forward-looking statements in this release involve a number of risks and uncertainties including, but not limited to, product demand,
pricing, patent and other intellectual property rights of third parties, timely development and supply of new products, 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: Bank-Switchable, C6, IDT WinChip, RV4640 and RV4650 are trademarks of Integrated Device
Technology, Inc. ZBT is a trademark of IDT, and the architecture is supported by Micron Technology, Inc. and Motorola, Inc.
MIPS is a registered trademark of MIPS Technologies, Inc. Windows is a registered trademark of Microsoft Corporation.
INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Quarter Ended Six Months Ended
9/28/97 9/29/96 9/28/97 9/29/96
(In thousands, except per share data)
Revenues $143,807 $120,485 $292,680 $263,024
Cost of revenues 88,643 82,291 181,180 153,907
----------------------------------------------------------------------
Gross profit 55,164 38,194 111,500 109,117
----------------------------------------------------------------------
Operating expenses:
Research and development 30,632 37,753 60,454 76,838
Selling, general and
administrative 20,048 18,262 42,412 39,199 |
