Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: SemiBull who wrote (11287)	12/6/2001 7:31:09 PM
From: SemiBull	Read Replies (1) \| Respond to of 11555

IDT Revises Financial Outlook for the Third Quarter of Fiscal 2002 SANTA CLARA, Calif.--(BUSINESS WIRE)--Dec. 6, 2001--IDT (Integrated Device Technology, Inc.; Nasdaq: IDTI), a leading communications IC company, today announced during its regular mid-quarter investor teleconference that it has reduced its revenue outlook for the quarter ending December 30, 2001. Based on recent and projected order rates from customers, IDT management now expects revenues in the third quarter of IDT's fiscal 2002 to be down approximately 15 to 20 percent from prior quarter revenues of approximately $97.1 million. The principal reasons for the estimated change in the current quarter's revenue outlook are the decline in economic and business conditions in Europe and Japan, and continuing customer sales channel inventory-reduction initiatives. The scope of this revision to estimated revenue is limited to the current quarter outlook. ``This is the second quarter in which we have seen weak business conditions in Europe and Japan disrupt our business outlook. The effect on our current quarter revenue from weakness in Europe and Japan and ongoing customer inventory reduction programs, particularly at North American OEMs and electronic manufacturer service industry (EMSI) customers, has been more significant than previously projected,'' said Jerry Taylor, IDT's chief executive officer. ``The rate of revenue decline from last quarter continues to appear to be greater than our customers are experiencing in their businesses. We believe this suggests that our products are being consumed by our customers at higher rates than our own current-quarter revenue shipments.'' ``We are encouraged to hear of customers talk about stabilizing conditions in some end markets, and we are seeing some positive signals. Our bookings quarter-to-date, for example, are running ahead of last-quarter's pace. In the markets that we serve, we're continuing to record a large number of design wins for new, high-value products associated with both our existing product families and the new families of communications ICs introduced in the last twelve months,'' said Taylor. ``Assuming economic conditions stabilize in 2002 as existing component inventories are depleted, we believe orders related to current production systems should pick up. When combined with new product designs ramping into production in future quarters, I believe there will be significant opportunity for IDT to resume solid revenue growth.'' ``We believe the Company is well capitalized and positioned to weather the current difficult economic environment,'' said Alan Krock, IDT's chief financial officer. ``In addition to steps taken during the past three years to strengthen IDT's balance sheet and improve IDT's business model, we continue to focus on opportunities to improve our revenue outlook and further reduce operating costs, thereby restoring the Company's strong operating metrics.'' Investor Information Investors can listen to a live or replay Webcast of IDT's regular mid-quarter conference call at www.idt.com. A taped telephone replay of the conference call will be available at (888) 266-2081 (access code is 5681338) beginning at 4:30 p.m. PST on December 6, 2001 and will be accessible until 9 p.m. PST on December 13, 2001. 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. Communications-industry leaders choose IDT for its high-performance products that accelerate time to market and boost bandwidth in the network infrastructure. IDT's communications-specific products include integrated processors, IP co-processors and telecom products; its foundational product portfolio is comprised of the industry's broadest selection of FIFOs, multi-ports, and clock management products; and the company's product mix also incorporates high-performance digital logic and SRAMs to meet the requirements of communications systems. Headquartered in Santa Clara, Calif., the company employs approximately 3,800 people worldwide and has manufacturing facilities in California, Oregon, the Philippines and Malaysia. IDT stock is traded on the Nasdaq stock market under the symbol ``IDTI.'' 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. -------------------------------------------------------------------------------- Contact: IDT Investor Relations Phone, 408/654-6420 E-mail: ir@idt.com or IDT Corporate Communications Diana Pailthorpe, 408/492-8210 E-mail: diana.pailthorpe@idt.com