Delaware
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0-12695
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94-2669985
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(State of
Incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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6024 Silver Creek Valley Road, San Jose, California 95138
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(Address of principal executive offices) (Zip Code)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
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Description
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99.1
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Press Release dated October 31, 2011.
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Dated:
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October 31, 2011
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INTEGRATED DEVICE TECHNOLOGY, INC.
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By:
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/s/ RICHARD D. CROWLEY, JR.
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Richard D. Crowley, Jr.
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Vice President and Chief Financial Officer
(duly authorized officer)
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Exhibit No.
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Description
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99.1
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Press Release dated October 31, 2011.
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Financial Contact:
Mike Knapp
IDT Investor Relations
Phone: (408) 284-6515
E-mail: mike.knapp@idt.com
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Press Contact:
Graham Robertson
IDT Worldwide Marketing
Phone: (408) 284-2644
E-mail: graham.robertson@idt.com
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·
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It has released the world's highest performance family of Gen 3 PCI Express® (PCIe) switches optimized for solid-state drive (SSD) storage arrays and cloud computing applications.
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·
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The industry’s lowest power DDR3 register for Dual In-Line Memory Modules (DIMMs) in high-efficiency data centers.
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·
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CoolRACTM technology -- a breakthrough power architecture for enterprise data centers that dramatically increases energy efficiency and lowers operating costs.
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It has expanded its portfolio of CrystalFreeTM CMOS oscillators with the world’s first ultra low power +/-50 parts-per-million (ppm) CMOS oscillator family, as well as the world's first family of oscillators that support the requirements of 5Gbps Super-Speed USB 3.0 controller applications.
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·
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The industry's most flexible Universal Frequency Translators (UFTs) with industry-leading phase noise performance.
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The addition of a low-jitter Voltage Controlled Surface Acoustic Wave (SAW) Oscillator (VCSO) for high-end optical networking and telecom applications.
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·
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It has released the industry's first integrated timing, thermal sensor and fan control solution for PC mobile platforms, digital video recorders (DVRs), set top boxes (STBs), Network Attached Storage (NAS) and enterprise Ethernet switches and routers
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·
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Design wins for its PCIe switch, Low-Power DDR3 register, Serial RapidIO switch, PCI Express to RapidIO bridge, and low-power dual port solutions.
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It intends to sell its Hillsboro, Oregon wafer fabrication facility and related assets to Alpha and Omega Semiconductor Limited ("AOS", NASDAQ: AOSL).
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Revenue for the fiscal second quarter of 2012 was $138.3 million, compared with $159.6 million reported in the same period one year ago.
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·
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GAAP net income from continuing operations for the fiscal second quarter of 2012 was $8.4 million or $0.06 per diluted share, versus GAAP net income of $25.2 million or $0.16 per diluted share in the same period one year ago. Fiscal second quarter 2012 GAAP results include $4.6 million in acquisition and restructuring related charges and $4.3 million in stock-based compensation.
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·
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GAAP net income from discontinued operations for the September quarter was approximately $38.6 million or $0.26 per diluted share driven by a $46 million gain on the sale of HQV video processing business to Qualcomm which offset a $7.4 million loss generated by the video business unit.
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·
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Non-GAAP net income from continuing operations for the fiscal second quarter of 2012 was $16.7 million or $0.11 per diluted share, compared with non-GAAP net income from continuing operations of $35.0 million or $0.22 per diluted share reported in the same period one year ago.
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·
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GAAP gross profit for the fiscal second quarter of 2012 was $74.3 million, or 53.7 percent, compared with GAAP gross profit of $88.1 million, or 55.2 percent, in the same period one year ago. Non-GAAP gross profit for the fiscal second quarter of 2012 was $78.1 million, or 56.5 percent, compared with non-GAAP gross profit of $93.5 million, or 58.6 percent, reported in the same period one year ago.
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·
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GAAP R&D expense for the fiscal second quarter of 2012 was $39.6 million, compared with GAAP R&D expense of $38.0 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal second quarter of 2012 was $38.1 million, compared with non-GAAP R&D of $35.2 million in the same period one year ago.
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·
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GAAP SG&A expense for the fiscal second quarter of 2012 was $24.9 million, compared with GAAP SG&A expense of $25.6 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal second quarter of 2012 was $22.6 million, compared with non-GAAP SG&A expense of $22.8 million in the same period one year ago.
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INTEGRATED DEVICE TECHNOLOGY, INC.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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||||||||||||||||||||
(Unaudited)
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||||||||||||||||||||
(In thousands, except per share data)
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||||||||||||||||||||
Three Months Ended
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Six Months Ended
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|||||||||||||||||||
October 2,
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July 3,
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September
26,
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October 2,
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September
26,
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||||||||||||||||
2011
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2011
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2010
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2011
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2010
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||||||||||||||||
Revenues
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$ | 138,318 | $ | 149,285 | $ | 159,570 | $ | 287,603 | $ | 313,191 | ||||||||||
Cost of revenues
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64,015 | 67,569 | 71,449 | 131,584 | 144,705 | |||||||||||||||
Gross profit
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74,303 | 81,716 | 88,121 | 156,019 | 168,486 | |||||||||||||||
Operating expenses:
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||||||||||||||||||||
Research and development
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39,567 | 39,667 | 38,012 | 79,234 | 75,992 | |||||||||||||||
Selling, general and administrative
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24,868 | 25,848 | 25,604 | 50,716 | 51,675 | |||||||||||||||
Total operating expenses
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64,435 | 65,515 | 63,616 | 129,950 | 127,667 | |||||||||||||||
Operating income
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9,868 | 16,201 | 24,505 | 26,069 | 40,819 | |||||||||||||||
Other income (expense), net
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(1,828 | ) | 44 | 1,178 | (1,784 | ) | 1,441 | |||||||||||||
Income from continuing operations before income taxes
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8,040 | 16,245 | 25,683 | 24,285 | 42,260 | |||||||||||||||
Provision (benefit) for income taxes
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(367 | ) | 947 | 441 | 580 | 1,386 | ||||||||||||||
Net income from continuing operations
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8,407 | 15,298 | 25,242 | 23,705 | 40,874 | |||||||||||||||
Discontinued operations:
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||||||||||||||||||||
Gain from divestiture
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45,939 | - | - | 45,939 | - | |||||||||||||||
Loss from discontinued operations
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(7,352 | ) | (7,644 | ) | (5,039 | ) | (14,996 | ) | (10,280 | ) | ||||||||||
Provision (benefit) for income taxes
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(60 | ) | (29 | ) | (21 | ) | (89 | ) | (43 | ) | ||||||||||
Net income (loss) from discontinued operations
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38,647 | (7,615 | ) | (5,018 | ) | 31,032 | (10,237 | ) | ||||||||||||
Net income
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$ | 47,054 | $ | 7,683 | $ | 20,224 | $ | 54,737 | $ | 30,637 | ||||||||||
Basic net income per share continuing operations
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$ | 0.06 | $ | 0.10 | $ | 0.16 | $ | 0.16 | $ | 0.26 | ||||||||||
Basic net loss per share discontinued operations
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0.27 | (0.05 | ) | (0.03 | ) | 0.21 | (0.07 | ) | ||||||||||||
Basic net income per share
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$ | 0.33 | $ | 0.05 | $ | 0.13 | $ | 0.37 | $ | 0.19 | ||||||||||
Diluted net income per share continuing operations
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$ | 0.06 | $ | 0.10 | $ | 0.16 | $ | 0.16 | $ | 0.26 | ||||||||||
Diluted net loss per share discontinued operations
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0.26 | (0.05 | ) | (0.03 | ) | 0.21 | (0.07 | ) | ||||||||||||
Diluted net income per share
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$ | 0.32 | $ | 0.05 | $ | 0.13 | $ | 0.37 | $ | 0.19 | ||||||||||
Weighted average shares:
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||||||||||||||||||||
Basic
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144,682 | 147,828 | 157,021 | 146,249 | 159,340 | |||||||||||||||
Diluted
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146,169 | 151,074 | 157,649 | 148,686 | 160,171 |
INTEGRATED DEVICE TECHNOLOGY, INC.
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RECONCILIATION OF GAAP TO NON-GAAP
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||||||||||||||||||||
(Unaudited)
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||||||||||||||||||||
(In thousands, except per share data)
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||||||||||||||||||||
Three Months Ended
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Six Months Ended
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|||||||||||||||||||
October 2,
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July 3,
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September
26,
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October 2,
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September
26,
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||||||||||||||||
2011
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2011
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2010
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2011
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2010
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GAAP net income from continuing operations
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$ | 8,407 | $ | 15,298 | $ | 25,242 | $ | 23,705 | $ | 40,874 | ||||||||||
GAAP diluted net income per share continuing operations
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$ | 0.06 | $ | 0.10 | $ | 0.16 | $ | 0.16 | $ | 0.26 | ||||||||||
Acquisition related:
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||||||||||||||||||||
Amortization of acquisition related intangibles
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3,861 | 4,128 | 4,937 | 7,989 | 9,794 | |||||||||||||||
Acquisition related costs (1)
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- | - | 432 | - | 1,140 | |||||||||||||||
Assets impairment (2)
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(92 | ) | (90 | ) | (183 | ) | (182 | ) | (277 | ) | ||||||||||
Fair market value adjustment to acquired inventory sold
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- | - | 117 | - | 379 | |||||||||||||||
Restructuring related:
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||||||||||||||||||||
Severance and retention costs
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(15 | ) | 383 | (125 | ) | 368 | 395 | |||||||||||||
Facility closure costs (3)
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(5 | ) | 28 | 285 | 23 | 1,262 | ||||||||||||||
Fabrication production transfer costs (4)
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816 | 1,845 | 1,383 | 2,661 | 2,212 | |||||||||||||||
Other:
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||||||||||||||||||||
Compensation expense (benefit)—deferred compensation plan (5)
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(1,337 | ) | 56 | 865 | (1,281 | ) | 739 | |||||||||||||
Loss (gain) on deferred compensation plan securities (5)
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1,359 | (45 | ) | (600 | ) | 1,314 | (467 | ) | ||||||||||||
Stock-based compensation expense
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4,282 | 3,772 | 3,297 | 8,054 | 7,516 | |||||||||||||||
Tax effects of Non-GAAP adjustments (6)
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(541 | ) | (577 | ) | (699 | ) | (1,118 | ) | (668 | ) | ||||||||||
Non-GAAP net Income from continuing operations
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$ | 16,735 | $ | 24,798 | $ | 34,951 | $ | 41,533 | $ | 62,899 | ||||||||||
GAAP weighted average shares - diluted
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146,169 | 151,074 | 157,649 | 148,686 | 160,171 | |||||||||||||||
Non-GAAP adjustment
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1,994 | 1,747 | 2,087 | 1,840 | 1,920 | |||||||||||||||
Non-GAAP weighted average shares - diluted (7)
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148,163 | 152,821 | 159,736 | 150,526 | 162,091 | |||||||||||||||
Non-GAAP diluted net income per share continuing operations
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$ | 0.11 | $ | 0.16 | $ | 0.22 | $ | 0.28 | $ | 0.39 | ||||||||||
GAAP gross profit
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$ | 74,303 | $ | 81,716 | $ | 88,121 | $ | 156,019 | $ | 168,486 | ||||||||||
Acquisition and divestiture related:
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||||||||||||||||||||
Amortization of acquisition related intangibles
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2,917 | 3,184 | 3,536 | 6,101 | 7,009 | |||||||||||||||
Acquisition related costs (1)
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- | - | - | - | 5 | |||||||||||||||
Assets impairment (2)
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(92 | ) | (90 | ) | (183 | ) | (182 | ) | (277 | ) | ||||||||||
Fair market value adjustment to acquired inventory sold
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- | 117 | - | 379 | ||||||||||||||||
Restructuring related:
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||||||||||||||||||||
Severance and retention costs
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- | (175 | ) | - | (58 | ) | ||||||||||||||
Facility closure costs (3)
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(4 | ) | 2 | 197 | (2 | ) | 896 | |||||||||||||
Fabrication production transfer costs (4)
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816 | 1,845 | 1,383 | 2,661 | 2,212 | |||||||||||||||
Other:
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Compensation expense (benefit) - deferred compensation plan (5)
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(289 | ) | 12 | 381 | (277 | ) | 354 | |||||||||||||
Stock-based compensation expense
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453 | 427 | 133 | 880 | 642 | |||||||||||||||
Non-GAAP gross profit
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$ | 78,104 | $ | 87,096 | $ | 93,510 | $ | 165,200 | $ | 179,648 |
GAAP R&D expenses:
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$ | 39,567 | $ | 39,667 | $ | 38,012 | $ | 79,234 | $ | 75,992 | ||||||||||
Acquisition and divestiture related:
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Acquisition related costs (1)
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- | (402 | ) | - | (796 | ) | ||||||||||||||
Restructuring related:
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Severance and retention costs
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15 | (383 | ) | 98 | (368 | ) | (335 | ) | ||||||||||||
Facility closure costs (3)
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5 | (15 | ) | (8 | ) | (10 | ) | (116 | ) | |||||||||||
Other:
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Compensation expense (benefit) - deferred compensation plan (5)
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867 | (37 | ) | (400 | ) | 830 | (318 | ) | ||||||||||||
Stock-based compensation expense
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(2,320 | ) | (1,999 | ) | (2,078 | ) | (4,319 | ) | (4,346 | ) | ||||||||||
Non-GAAP R&D expenses
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$ | 38,134 | $ | 37,233 | $ | 35,222 | $ | 75,367 | $ | 70,081 | ||||||||||
GAAP SG&A expenses:
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$ | 24,868 | $ | 25,848 | $ | 25,604 | $ | 50,716 | $ | 51,675 | ||||||||||
Acquisition and divestiture related:
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Amortization of acquisition related intangibles
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(944 | ) | (944 | ) | (1,401 | ) | (1,888 | ) | (2,785 | ) | ||||||||||
Acquisition related costs (1)
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- | (30 | ) | - | (339 | ) | ||||||||||||||
Restructuring related:
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||||||||||||||||||||
Severance and retention costs
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- | (148 | ) | - | (118 | ) | ||||||||||||||
Facility closure costs (3)
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(4 | ) | (11 | ) | (80 | ) | (15 | ) | (250 | ) | ||||||||||
Other:
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Compensation expense (benefit) - deferred compensation plan (5)
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181 | (7 | ) | (84 | ) | 174 | (67 | ) | ||||||||||||
Stock-based compensation expense
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(1,509 | ) | (1,346 | ) | (1,086 | ) | (2,855 | ) | (2,528 | ) | ||||||||||
Non-GAAP SG&A expenses
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$ | 22,592 | $ | 23,540 | $ | 22,775 | $ | 46,132 | $ | 45,588 | ||||||||||
GAAP interest income and other, net
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$ | (1,828 | ) | $ | 44 | $ | 1,178 | $ | (1,784 | ) | $ | 1,441 | ||||||||
Loss (gain) on deferred compensation plan securities (5)
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1,359 | (45 | ) | (600 | ) | 1,314 | (467 | ) | ||||||||||||
Non-GAAP interest income and other, net
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$ | (469 | ) | $ | (1 | ) | $ | 578 | $ | (470 | ) | $ | 974 | |||||||
GAAP provision (benefit) for income taxes continuing operations
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$ | (367 | ) | $ | 947 | $ | 441 | $ | 580 | $ | 1,386 | |||||||||
Tax effects of Non-GAAP adjustments (6)
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541 | 577 | 699 | 1,118 | 668 | |||||||||||||||
Non-GAAP provision (benefit) for income taxes continuing operations
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$ | 174 | $ | 1,524 | $ | 1,140 | $ | 1,698 | $ | 2,054 | ||||||||||
(1) Consists of costs incurred in connection with merger and acquisition-related activities, including legal and accounting fees. | ||||||||||||||||||||
(2) Consists of an impairment charge related to a note receivable and subsequent recoveries. | ||||||||||||||||||||
(3) Consists of ongoing costs associated with the exit of our leased and owned facilities. | ||||||||||||||||||||
(4) Consists of costs incurred in connection with the transition of our wafer fabrication processes in Oregon facility to TSMC. | ||||||||||||||||||||
(5) Consists of gains and losses on marketable equity securities related to our deferred compensation arrangements and the changes in the fair value of the assets in a separate trust that is invested in Corporate owned life insurance under our deferred compensation plan. | ||||||||||||||||||||
(6) Consists of the tax effects of non-GAAP adjustments. | ||||||||||||||||||||
(7) For purposes of calculating non-GAAP diluted net income per share, the GAAP diluted weighted average shares outstanding is adjusted to exclude the benefits of stock compensation expense attributable to future services not yet recognized in the financial statements that are treated as proceeds assumed to be used to repurchase shares under the GAAP treasury method. |
INTEGRATED DEVICE TECHNOLOGY, INC.
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CONDENSED CONSOLIDATED BALANCE SHEETS
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||||||||
(Unaudited)
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||||||||
October 2,
|
April 3,
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|||||||
(In thousands)
|
2011
|
2011
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||||||
ASSETS
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Current assets:
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||||||||
Cash and cash equivalents
|
$ | 133,391 | $ | 104,680 | ||||
Short-term investments
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186,755 | 194,512 | ||||||
Accounts receivable, net
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76,440 | 81,798 | ||||||
Inventories
|
79,808 | 67,041 | ||||||
Prepaid and other current assets
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22,012 | 23,929 | ||||||
Total current assets
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498,406 | 471,960 | ||||||
Property, plant and equipment, net
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72,054 | 67,754 | ||||||
Goodwill
|
95,452 | 104,020 | ||||||
Acquisition-related intangibles
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41,080 | 51,021 | ||||||
Other assets
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36,003 | 32,705 | ||||||
TOTAL ASSETS
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$ | 742,995 | $ | 727,460 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 30,293 | $ | 36,470 | ||||
Accrued compensation and related expenses
|
26,531 | 28,212 | ||||||
Deferred income on shipments to distributors
|
16,033 | 12,853 | ||||||
Deferred taxes liabilities
|
2,220 | 2,224 | ||||||
Other accrued liabilities
|
29,018 | 30,886 | ||||||
Total current liabilities
|
104,095 | 110,645 | ||||||
Deferred tax liabilities
|
1,516 | 1,513 | ||||||
Long term income taxes payable
|
726 | 712 | ||||||
Other long term obligations
|
15,223 | 15,808 | ||||||
Total liabilities
|
121,560 | 128,678 | ||||||
Stockholders' equity
|
621,435 | 598,782 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 742,995 | $ | 727,460 | ||||