IDTI ( $51~runup/sell) 13 Percent EPS Growth On Record Results in Third Fiscal Quarter
EPS of $0.87 on Sales of $278.9 Million Demonstrates Continued Leverage in IDT's Business Model
SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 18, 2001--IDT (Integrated Device Technology, Inc.; Nasdaq:IDTI), a leading communications IC company today reported third quarter fiscal 2001 operating results. Revenue for the third quarter was $278.9 million, up 57.8 percent from $176.7 million for the same period last year and up 3.8 percent from $268.7 million for the second quarter of fiscal 2001. Revenue for the first nine months of fiscal 2001 increased 57.1 percent to $778.9 million from $495.8 million for the same period last year. Revenue, earnings, gross margin and operating margin set Company records.
Third quarter fiscal 2001 net income was $96.6 million ($0.87 per diluted share), up 243.3 percent compared to net income of $28.1 million ($0.28 per diluted share) for the third quarter fiscal 2000 and 11.9 percent compared to the previous quarter net income of $86.4 million ($0.77 per diluted share). Net income for the first nine months of fiscal 2001 was $245.4 million ($2.22 per diluted share), up 352.9 percent from net income of $54.2 million ($0.56 per diluted share) during the same period last year.
The above net income and per diluted share amounts exclude a net tax-effected non-operating loss of $7.2 million for the third quarter of fiscal 2001 and a net tax-effected non-operating gain of $197.5 million for the first nine months of fiscal 2001, (included in the tables below, prepared in accordance with generally accepted accounting principles). These non-operating balances are associated with the Company's investment in shares of PMC-Sierra, Inc. Additionally, the fiscal 2000 comparatives exclude net gains associated with IDT's exit from the x86 product markets and with other non-recurring events.
``During the third quarter of fiscal 2001, our gross margin was approximately 62 percent, operating margin was in excess of 38 percent, and net income before tax, excluding the non-operating net loss, was in excess of 43 percent of sales,'' said Alan Krock, IDT's chief financial officer. ``Also during the quarter, the Company's cash and investments, excluding shares in PMC-Sierra, grew to more than $800 million. With IDT's focus on and success with non-commodity products, we are pleased to have driven the preceding metrics to these high levels. Given IDT's demonstrated leverage, management expects that as revenue grows, our margins and cash flows can expand further.''
As previously announced, IDT's Board of Directors authorized the repurchase of up to five million shares of the Company's common stock on the open market. During the third fiscal quarter of 2001, the Company repurchased approximately 1.2 million shares of its common stock.
``While IDT again delivered solid financial results, revenue growth was lower in fiscal Q3, primarily due to reduction in inventory levels in semiconductor sales and distribution channels,'' said Jerry Taylor, IDT's president and chief executive officer. ``During the third fiscal quarter, our end customers have consumed more IDT product than we shipped. We believe this trend will continue into early calendar 2001. As we return to more normal inventory conditions, we believe IDT will resume growth rates in line with the key communications infrastructure markets and customers we serve.''
Q3 Highlights
``IDT continued to drive new design activity for our new communications products in its third fiscal quarter,'' said Dave Cote, vice president of communications ASSPs and worldwide marketing. ``These design wins give us confidence in the value our communications customers place in IDT's product roadmaps. We believe that the markets we serve are among the strongest opportunities for growth in the industry, and with our ongoing high-level of design activity, that IDT is well-positioned to grow faster than the overall semiconductor industry.''
Q3 highlights include:
Revenues from IDT's recently introduced IP co-processor for Cisco's Catalyst family of multi-layer switches grew from $2 million during fiscal Q2 to more than $7 million in the third fiscal quarter. The Company expects continued growth of this product in the current quarter and into fiscal 2002.
IDT secured several significant design wins with its first integrated communications processors, the RC32334 and the recently introduced RC32332. These design wins include LAN switches and Internet access devices from leading communications customers. The combination of features, such as the PCI bridge, performance up to 150 MHz and required software and tools, has made these products an excellent choice for a number of embedded network applications including xDSL gateways, SOHO routers, managed LAN switches and integrated access devices (IADs).
Over the last two quarters, IDT has introduced several families of clock management products aimed at communications systems designers. With the introduction of the new family of Zero Delay PLLs, IDT has the broadest range of clock management products for communications systems. Clock management products have become a significant portion of IDT's logic and timing business, posting more than $15 million in revenue during fiscal Q3.
IDT continues its heritage of serving the wireless/mobile infrastructure market with its most advanced multi-ports, FIFOs and SwitchStar(TM), IDT's ATM switching chip set. As an example, customers like Ericsson and Siemens are among the manufacturers of 3G base station systems using IDT's industry-leading 4-Mbit, 166-MHz dual-ports.
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