INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands,
except per share
data) Three Months Ended Twelve Months Ended
------------------ ------------------------------ --------------------
Mar. 30, Dec. 29, Mar. 31, Mar. 30, Mar. 31,
2003 2002 2002 2003 2002
------------------------------ ---------- ---------
Revenues $80,804 $79,010 $86,621 $343,878 $379,817
Cost of revenues 60,893 59,826 56,163 226,693 241,841
Restructuring
charges, asset
impairment and
other 114,085 1,010 3,870 115,370 24,742
---------- --------- --------- ---------- ---------
Gross profit (loss) (94,174) 18,174 26,588 1,815 113,234
---------- --------- --------- ---------- ---------
Operating
expenses:
Research and
development 39,357 30,126 31,962 129,108 129,146
Selling, general
and
administrative 20,396 21,827 18,707 82,511 83,987
Acquired in-
process
research and
development -- 2,670 -- 2,670 16,000
Amortization of
intangibles 161 161 1,681 634 6,724
---------- --------- --------- ---------- ---------
Total operating
expenses 59,914 54,784 52,350 214,923 235,857
---------- --------- --------- ---------- ---------
Operating loss (154,088) (36,610) (25,762) (213,108) (122,623)
Interest expense (111) (143) (203) (514) (1,238)
Gain (loss) on
equity
investments -- -- -- (6,557) 36,160
Interest income
and other, net 3,880 4,006 6,459 19,040 38,744
---------- --------- --------- ---------- ---------
Loss before income
taxes (150,319) (32,747) (19,506) (201,139) (48,957)
Provision
(benefit) for
income taxes 88,782 (6,424) 474 76,757 (2,765)
---------- --------- --------- ---------- ---------
Net loss $(239,101) $(26,323) $(19,980) $(277,896) $(46,192)
========== ========= ========= ========== =========
Net loss per
share:
Basic $(2.31) $(0.25) $(0.19) $(2.68) $(0.44)
Diluted $(2.31) $(0.25) $(0.19) $(2.68) $(0.44)
Weighted average
shares:
Basic 103,574 103,271 104,351 103,520 104,560
Diluted 103,574 103,271 104,351 103,520 104,560
INTEGRATED DEVICE TECHNOLOGY, INC.
PRO FORMA ADJUSTMENTS
(Unaudited)
(In thousands) Three Months Ended Twelve Months Ended
------------------ ------------------------------ --------------------
Mar. 30, Dec. 29, Mar. 31, Mar. 30, Mar. 31,
2003 2002 2002 2003 2002
---------- --------- --------- ---------- ---------
Net loss $(239,101) $(26,323) $(19,980) $(277,896) $(46,192)
---------- --------- --------- ---------- ---------
Non-GAAP
adjustments:
Cost of goods
sold:
Restructuring
charges (1) 1,031 1,010 3,870 2,316 7,309
Asset
impairment
(2), (3) 113,054 -- -- 113,054 17,433
Other (4) 288 339 3,127 4,608 3,127
Amortization
of
acquisition-
related
charges (3) 909 909 786 3,390 3,144
Operating
expenses:
Asset
impairment
(2) 8,329 -- -- 8,329 --
Acquired IPR&D
(3) -- 2,670 -- 2,670 16,000
Other (4) 9 8 76 385 76
Restructuring
charges (1) 2,373 868 172 3,459 1,289
Amortization
of goodwill
(3) -- -- 1,500 -- 6,000
Other
acquisition-
related costs
(3) 991 1,248 1,752 4,191 5,839
Losses (gains)
on equity
Investments
(5) -- -- -- 6,557 (36,160)
Other income (6) -- -- -- -- (4,785)
Taxes (7) 88,536 (1,285) 2,118 75,773 3,171
---------- --------- --------- ---------- ---------
Total special
items 215,520 5,767 13,401 224,732 (22,443)
---------- --------- --------- ---------- ---------
Pro forma net loss $(23,581) $(20,556) $(6,579) $(53,164) $(23,749)
========== ========= ========= ========== =========
(1) Consists of costs, primarily severance, of restructuring actions
taken during FY 2002 and FY 2003.
(2) We recorded impairment charges related to our Salinas, Calif.
wafer fabrication plant (Q3 2002) and other manufacturing assets,
principally our Hillsboro, Ore. fabrication plant (Q4 2003).
(3) Costs relate to our acquisitions of Newave and Solidum in April
2001 and October 2002, respectively. Newave-related costs include
an IPR&D charge and amortization of contingent compensation,
stock-based compensation and intangible assets. Solidum-related
costs include an IPR&D charge and amortization of intangible
assets. We also recorded an intangible asset impairment charge of
$13.5 million in Q4 2003 related to Newave existing technology.
(4) Consists of costs related to the June 2002 closure of our Salinas
plant, including $3.0 million and $2.9 million in retention
bonuses for Q1 2003 and Q4 2002, respectively.
(5) We recorded an other-than-temporary impairment charge related to
an equity investment in Q2 2003. We sold another equity investment
in Q3 2002 and recorded a pretax gain of $35.7 million.
(6) In Q2 2002, we exercised an option to purchase land. The land was
immediately sold at a pretax gain of $5.1 million.
(7) We recorded a valuation allowance of $88.5 million against our net
deferred tax assets in Q4 2003. Page 6/7 - IDT Announces Results
for Fourth Fiscal Quarter and Full Fiscal Year 2003
INTEGRATED DEVICE TECHNOLOGY, INC.
PRO FORMA STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except
per share data) Three Months Ended Twelve Months Ended
--------------------- ---------------------------- -------------------
Mar. 30, Dec. 29, Mar. 31, Mar. 30, Mar. 31,
2003 2002 2002 2003 2002
---------------------------- --------- ---------
Revenues $80,804 $79,010 $86,621 $343,878 $379,817
Cost of revenues 59,696 58,578 52,250 218,695 235,570
--------- --------- -------- --------- ---------
Gross profit 21,108 20,432 34,371 125,183 144,247
--------- --------- -------- --------- ---------
Operating expenses:
Research and
development 29,354 28,839 30,143 115,810 123,448
Selling, general
and administrative 18,858 21,151 18,707 80,079 83,205
--------- --------- -------- --------- ---------
Total operating
expenses 48,212 49,990 48,850 195,889 206,653
--------- --------- -------- --------- ---------
Operating loss (27,104) (29,558) (14,479) (70,706) (62,406)
Interest expense (111) (143) (203) (514) (1,238)
Interest income and
other, net 3,880 4,006 6,459 19,040 33,959
--------- --------- -------- --------- ---------
Loss before income
taxes (23,335) (25,695) (8,223) (52,180) (29,685)
Provision (benefit)
for income taxes (1) 246 (5,139) (1,644) 984 (5,936)
--------- --------- -------- --------- ---------
Net loss $(23,581) $(20,556) $(6,579) $(53,164) $(23,749)
========= ========= ======== ========= =========
Net loss per share:
Diluted $(0.23) $(0.20) $(0.06) $(0.51) $(0.23)
Weighted average
shares:
Diluted 103,574 103,271 104,351 103,520 104,560
(1) In the fourth quarter of fiscal 2003, we established a valuation
allowance to reserve 100% of our deferred tax assets and ceased to
recognize any tax benefit associated with period losses.
Therefore, pro forma results presented for the three and twelve
month periods ended March 30, 2003 exclude any domestic tax
benefits associated with losses for those periods and include only
estimated foreign taxes payable of $246 thousand and $984
thousand, respectively.
Our pro forma results exclude acquisition-related charges and unusual
or infrequent expenses and benefits that are not directly related to
our ongoing operations. We believe that these pro forma results
provide useful information; however, our presentation of pro forma
results is not in accordance with GAAP and may not be comparable to
pro forma information provided by other companies. Pro forma
information should be considered a supplement to, and not a substitute
for, financial statements prepared in accordance with GAAP.
INTEGRATED DEVICE TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
Mar. 30, Mar. 31,
(In thousands) 2003 2002
------------------------------------------- ----------- ------------
ASSETS
Current assets:
Cash and cash equivalents $144,400 $256,172
Short-term investments 410,425 418,228
Accounts receivable, net 40,111 40,067
Inventories 41,189 78,247
Deferred tax assets -- 74,874
Prepayments and other current assets 29,420 19,787
----------- ------------
Total current assets 665,545 887,375
Property, plant and equipment, net 129,923 221,499
Goodwill and other intangibles 47,266 57,281
Other assets 38,578 59,664
----------- ------------
TOTAL ASSETS $881,312 $1,225,819
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $17,514 $18,342
Accrued compensation and related expenses 11,020 14,068
Deferred income on shipments to
distributors 17,911 36,443
Income taxes payable 32,280 21,863
Other accrued liabilities 20,120 29,173
----------- ------------
Total current liabilities 98,845 119,889
Other liabilities 23,775 51,221
----------- ------------
Total liabilities 122,620 171,110
Stockholders' equity 758,692 1,054,709
----------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 881,312 $1,225,819
=========== ============
--------------------------------------------------------------------------------
Contact:
Integrated Device Technology
Diana Pailthorpe 408/492-8210 (Corporate Communications)
diana.pailthorpe@idt.com
Investor Relations, 408/654-6420
ir@idt.com
or
Porter Novelli
Ricky Gradwohl, 408/369-1500 ext. 31 (Press)
ricky.gradwohl@porternovelli.com
--------------------------------------------------------------------------------
Source: IDT |
