Delaware | 0-12695 | 94-2669985 |
(State of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
6024 Silver Creek Valley Road, San Jose, California 95138 |
(Address of principal executive offices) (Zip Code) |
Exhibit No. | Description |
99.1 | Press Release Dated January 28, 2013. |
Dated: | January 28, 2013 | |
INTEGRATED DEVICE TECHNOLOGY, INC. | ||
By: | /S/ Richard D. Crowley, Jr. | |
Richard D. Crowley, Jr. | ||
Vice President and Chief Financial Officer (duly authorized officer) |
Exhibit No. | Description |
99.1 | Press Release Dated January 28, 2013. |
Financial Contact: | Press Contact: | |
Mike Knapp IDT Investor Relations Phone: (408) 284-6515 E-mail: mike.knapp@idt.com | Graham Robertson IDT Worldwide Marketing Phone: (408) 284-2644 E-mail: graham.robertson@idt.com |
• | The industry's most integrated wireless power transmitter solutions for the Wireless Power Consortium (WPC) Tx-A5, Tx-A6, and Tx-A11 configurations. The new products expand IDT's portfolio of WPC Qi-compliant magnetic induction transmitters with solutions optimized for single-coil 5V and three-coil 12V applications. |
• | A new RF digital step attenuator that reduces glitches by up to 95 percent in cellular base station and industrial applications, enabling customers to simplify their software interface, improve reliability, and prevent damage to expensive sub-assemblies such as power amplifiers. |
• | The industry's first low-power dual 16-bit 1.5 GSPS digital-to-analog converter (DAC) with an advanced JESD204B serial interface for multi-carrier broadband wireless applications. The new high-speed DAC delivers best-in-class dynamic performance, eases system-level cooling requirements, and simplifies board routing. |
• | The industry's first high-performance quad frequency MEMS oscillators with multiple synchronous outputs. IDT's enhanced MEMS oscillators offer configurable outputs in an industry-standard package footprint, saving board area in communication, networking, and storage applications. |
• | The availability of the industry's first complete chipset for DDR4 load reduced dual inline memory modules (LRDIMMs). The clear advantages afforded by LRDIMMs as a speed-scalable memory technology are expected to drive adoption across a broad array of memory intensive computing and storage applications and IDT is leading the way with DDR4 LRDIMM memory interface solutions. |
• | It was recognized with a product of the year award from Electronic Products Magazine and a 2012 best electronic design award from Electronic Design Magazine for its NVM Express (NVMe) enterprise flash controller. The PCIe Gen3 flash controller family provides a standard solution for PCI Express based SSDs, enabling enterprise storage and server OEMs to dramatically improve latency and throughput performance. |
• | Revenue from continuing operations for the fiscal third quarter of 2013 was $115.1 million, compared with $120.0 million reported in the same period one year ago. |
• | GAAP net loss from continuing operations for the fiscal third quarter of 2013 was $5.2 million, or a loss of $0.04 per diluted share, versus GAAP net loss of $0.9 million or a loss of $0.01 per diluted share in the same period one year ago. Fiscal third quarter 2013 GAAP results include $9.1 million in acquisition and restructuring related charges, $2.8 million in stock-based compensation, and $0.6 million in benefits from tax effects. |
• | Non-GAAP net income from continuing operations for the fiscal third quarter of 2013 was $6.2 million or $0.04 per diluted share, compared with non-GAAP net income from continuing operations of $8.5 million or $0.06 per diluted share reported in the same period one year ago. |
• | GAAP gross profit for the fiscal third quarter of 2013 was $63.0 million, or 54.7 percent, compared with GAAP gross profit of $63.9 million, or 53.2 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal third quarter of 2013 was $66.7 million, or 58.0 percent, compared with non-GAAP gross profit of $65.7 million, or 54.7 percent, reported in the same period one year ago. |
• | GAAP R&D expense for the fiscal third quarter of 2013 was $40.2 million, compared with GAAP R&D expense of $38.4 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal third quarter of 2013 was $37.7 million, compared with non-GAAP R&D of $34.9 million in the same period one year ago. |
• | GAAP SG&A expense for the fiscal third quarter of 2013 was $27.4 million, compared with GAAP SG&A expense of $23.7 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal third quarter of 2013 was $21.7 million, compared with non-GAAP SG&A expense of $20.6 million in the same period one year ago. |
INTEGRATED DEVICE TECHNOLOGY, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
Dec. 30, | Sept. 30, | Jan. 1, | Dec. 30, | Jan. 1, | ||||||||||||||||
2012 | 2012 | 2012 | 2012 | 2012 | ||||||||||||||||
Revenues | $ | 115,147 | $ | 133,401 | $ | 119,977 | $ | 378,709 | $ | 407,580 | ||||||||||
Cost of revenues | 52,200 | 58,774 | 56,093 | 168,622 | 190,627 | |||||||||||||||
Gross profit | 62,947 | 74,627 | 63,884 | 210,087 | 216,953 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 40,170 | 42,387 | 38,410 | 124,101 | 117,409 | |||||||||||||||
Selling, general and administrative | 27,389 | 32,750 | 23,661 | 96,551 | 74,478 | |||||||||||||||
Total operating expenses | 67,559 | 75,137 | 62,071 | 220,652 | 191,887 | |||||||||||||||
Operating income (loss) | (4,612 | ) | (510 | ) | 1,813 | (10,565 | ) | 25,066 | ||||||||||||
Other-than-temporary impairment loss on investments | — | — | (2,130 | ) | — | (2,130 | ) | |||||||||||||
Other income (expense), net | (344 | ) | (206 | ) | (10 | ) | 1,450 | (1,794 | ) | |||||||||||
Income (loss) from continuing operations before income taxes | (4,956 | ) | (716 | ) | (327 | ) | (9,115 | ) | 21,142 | |||||||||||
Provision (benefit) for income taxes | 201 | (33 | ) | 576 | (3,818 | ) | 1,176 | |||||||||||||
Net income (loss) from continuing operations | (5,157 | ) | (683 | ) | (903 | ) | (5,297 | ) | 19,966 | |||||||||||
Discontinued operations: | ||||||||||||||||||||
Gain from divestiture | — | 886 | — | 886 | 45,939 | |||||||||||||||
Loss from discontinued operations | — | (273 | ) | (5,290 | ) | (5,131 | ) | (20,286 | ) | |||||||||||
Provision (benefit) for income taxes | — | 3 | — | 3 | (89 | ) | ||||||||||||||
Net income (loss) from discontinued operations | — | 610 | (5,290 | ) | (4,248 | ) | 25,742 | |||||||||||||
Net income (loss) | $ | (5,157 | ) | $ | (73 | ) | $ | (6,193 | ) | $ | (9,545 | ) | $ | 45,708 | ||||||
Basic net income (loss) per share continuing operations | $ | (0.04 | ) | $ | — | $ | (0.01 | ) | $ | (0.04 | ) | $ | 0.14 | |||||||
Basic net income (loss) per share discontinued operations | — | — | (0.03 | ) | (0.03 | ) | 0.18 | |||||||||||||
Basic net income (loss) per share | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | (0.07 | ) | $ | 0.32 | |||||||
Diluted net income (loss) per share continuing operations | $ | (0.04 | ) | $ | — | $ | (0.01 | ) | $ | (0.04 | ) | $ | 0.14 | |||||||
Diluted net income (loss) per share discontinued operations | — | — | (0.03 | ) | (0.03 | ) | 0.17 | |||||||||||||
Diluted net income (loss) per share | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | (0.07 | ) | $ | 0.31 | |||||||
Weighted average shares: | ||||||||||||||||||||
Basic | 144,321 | 143,519 | 141,839 | 143,477 | 144,792 | |||||||||||||||
Diluted | 144,321 | 143,519 | 141,839 | 143,477 | 146,706 |
INTEGRATED DEVICE TECHNOLOGY, INC. | |||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
Dec. 30, | Sept. 30, | Jan. 1, | Dec. 30, | Jan. 1, | |||||||||||||||||
2,012 | 2,012 | 2,012 | 2,012 | 2,011 | |||||||||||||||||
GAAP net income (loss) from continuing operations | $ | (5,157 | ) | $ | (683 | ) | $ | (903 | ) | $ | (5,297 | ) | $ | 19,966 | |||||||
GAAP diluted net income (loss) per share continuing operations | $ | (0.04 | ) | $ | — | $ | (0.01 | ) | $ | (0.04 | ) | $ | 0.14 | ||||||||
Acquisition related: | |||||||||||||||||||||
Amortization of acquisition related intangibles | 4,673 | 5,573 | 4,006 | 15,137 | 11,995 | ||||||||||||||||
Acquisition related legal and consulting fees (1) | 2,999 | 3,630 | 109 | 11,465 | 109 | ||||||||||||||||
Other acquisition related costs (2) | — | 1,200 | — | 3,000 | — | ||||||||||||||||
Assets impairment (3) | 527 | (59 | ) | (73 | ) | 409 | (255 | ) | |||||||||||||
Fair market value adjustment to acquired inventory sold | — | 100 | — | 458 | — | ||||||||||||||||
Restructuring related: | |||||||||||||||||||||
Severance and retention costs | 908 | 2,237 | (1,978 | ) | 3,860 | 625 | |||||||||||||||
Facility closure costs (4) | 13 | 34 | 16 | 60 | 39 | ||||||||||||||||
Fabrication production transfer costs (5) | — | — | 1,233 | — | 3,894 | ||||||||||||||||
Expenses related to stockholder activities (6) | — | 38 | — | 2,614 | — | ||||||||||||||||
Compensation expense (benefit)—deferred compensation plan (7) | 87 | 480 | 649 | 431 | (632 | ) | |||||||||||||||
Loss (gain) on deferred compensation plan securities (7) | (82 | ) | (477 | ) | (629 | ) | (245 | ) | 685 | ||||||||||||
Life insurance proceeds received (7) | — | — | — | (2,313 | ) | — | |||||||||||||||
Tax effects of Non-GAAP adjustments | (588 | ) | (3,076 | ) | (347 | ) | (9,341 | ) | (1,413 | ) | |||||||||||
Non-GAAP net income from continuing operations | $ | 6,154 | $ | 12,614 | $ | 8,525 | $ | 29,751 | $ | 49,509 | |||||||||||
GAAP weighted average shares - diluted | 144,321 | 143,519 | 141,839 | 143,477 | 146,706 | ||||||||||||||||
Non-GAAP adjustment | 3,362 | 2,907 | 2,676 | 3,030 | 1,835 | ||||||||||||||||
Non-GAAP weighted average shares - diluted (8) | 147,683 | 146,426 | 144,515 | 146,507 | 148,541 | ||||||||||||||||
Non-GAAP diluted net income per share continuing operations | $ | 0.04 | $ | 0.09 | $ | 0.06 | $ | 0.20 | $ | 0.33 | |||||||||||
GAAP gross profit | $ | 62,947 | $ | 74,627 | $ | 63,884 | $ | 210,087 | $ | 216,953 | |||||||||||
Acquisition and divestiture related: | |||||||||||||||||||||
Amortization of acquisition related intangibles | 2,944 | 3,890 | 2,733 | 10,456 | 8,834 | ||||||||||||||||
Assets impairment (3) | 527 | (59 | ) | (73 | ) | 409 | (255 | ) | |||||||||||||
Restructuring related: | |||||||||||||||||||||
Severance and retention costs | — | 306 | (2,784 | ) | 607 | (824 | ) | ||||||||||||||
Facility closure costs (4) | 4 | 3 | 3 | 13 | 1 | ||||||||||||||||
Fabrication production transfer costs (5) | — | — | 1,233 | — | 3,894 | ||||||||||||||||
Other: | |||||||||||||||||||||
Compensation expense (benefit)—deferred compensation plan (7) | 21 | 120 | 140 | 107 | (137 | ) | |||||||||||||||
Stock-based compensation expense | 295 | 252 | 535 | 850 | 1,415 | ||||||||||||||||
Non-GAAP gross profit | $ | 66,738 | $ | 79,239 | $ | 65,671 | $ | 222,987 | $ | 229,881 |
INTEGRATED DEVICE TECHNOLOGY, INC. | ||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP (continued) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
Dec. 30, | Sept. 30, | Jan. 1, | Dec. 30, | Jan. 1, | ||||||||||||||||
2,012 | 2,012 | 2,012 | 2,012 | 2,011 | ||||||||||||||||
GAAP R&D expenses: | $ | 40,170 | $ | 42,387 | $ | 38,410 | $ | 124,101 | $ | 117,409 | ||||||||||
Restructuring related: | ||||||||||||||||||||
Severance and retention costs | (912 | ) | (1,070 | ) | (870 | ) | (2,322 | ) | (1,473 | ) | ||||||||||
Facility closure costs (4) | (5 | ) | (28 | ) | (4 | ) | (37 | ) | (14 | ) | ||||||||||
Other: | ||||||||||||||||||||
Compensation expense (benefit)—deferred compensation plan (7) | (53 | ) | (290 | ) | (421 | ) | (261 | ) | 409 | |||||||||||
Stock-based compensation expense | (1,531 | ) | (1,873 | ) | (2,174 | ) | (4,946 | ) | (6,493 | ) | ||||||||||
Non-GAAP R&D expenses | $ | 37,669 | $ | 39,126 | $ | 34,941 | $ | 116,535 | $ | 109,838 | ||||||||||
GAAP SG&A expenses: | $ | 27,389 | $ | 32,750 | $ | 23,661 | $ | 96,551 | $ | 74,478 | ||||||||||
Acquisition and divestiture related: | ||||||||||||||||||||
Amortization of acquisition related intangibles | (1,729 | ) | (1,683 | ) | (1,273 | ) | (4,681 | ) | (3,161 | ) | ||||||||||
Acquisition related legal and consulting fees (1) | (2,999 | ) | (3,630 | ) | (109 | ) | (11,465 | ) | (109 | ) | ||||||||||
Other acquisition related costs (2) | — | (1,200 | ) | — | (3,000 | ) | — | |||||||||||||
Restructuring related: | ||||||||||||||||||||
Severance and retention costs | 4 | (861 | ) | 64 | (931 | ) | 24 | |||||||||||||
Facility closure costs (4) | (4 | ) | (3 | ) | (9 | ) | (10 | ) | (24 | ) | ||||||||||
Other: | ||||||||||||||||||||
Compensation expense (benefit)—deferred compensation plan (7) | (13 | ) | (70 | ) | (88 | ) | (63 | ) | 86 | |||||||||||
Stock-based compensation expense | (948 | ) | (1,492 | ) | (1,603 | ) | (3,717 | ) | (4,458 | ) | ||||||||||
Expenses related to stockholder activities (6) | — | (38 | ) | — | (2,614 | ) | — | |||||||||||||
Non-GAAP SG&A expenses | $ | 21,700 | $ | 23,773 | $ | 20,643 | $ | 70,070 | $ | 66,836 | ||||||||||
GAAP interest income and other, net | $ | (344 | ) | $ | (206 | ) | $ | (10 | ) | $ | 1,450 | $ | (1,794 | ) | ||||||
Loss (gain) on deferred compensation plan securities (7) | (82 | ) | (477 | ) | (629 | ) | (245 | ) | 685 | |||||||||||
Life insurance proceeds received (7) | — | — | — | (2,313 | ) | — | ||||||||||||||
Non-GAAP interest income and other, net | $ | (426 | ) | $ | (683 | ) | $ | (639 | ) | $ | (1,108 | ) | $ | (1,109 | ) | |||||
GAAP provision (benefit) for income taxes continuing operations | $ | 201 | $ | (33 | ) | $ | 576 | $ | (3,818 | ) | $ | 1,176 | ||||||||
Tax effects of Non-GAAP adjustments | 588 | 3,076 | 347 | 9,341 | 1,413 | |||||||||||||||
Non-GAAP provision (benefit) for income taxes continuing operations | $ | 789 | $ | 3,043 | $ | 923 | $ | 5,523 | $ | 2,589 | ||||||||||
(1) Consists of costs incurred in connection with merger and acquisition-related activities, including legal, accounting and other consulting fees. | ||||||||||||||||||||
(2) Consists of an accrued deferred closing date fee associated with the acquisition of NXP’s high-speed data converter assets. | ||||||||||||||||||||
(3) Consists of an impairment charge related to tangible assets and a note receivable, net of subsequent recoveries. | ||||||||||||||||||||
(4) Consists of ongoing costs associated with the exit of our leased and owned facilities. | ||||||||||||||||||||
(5) Consists of costs incurred in connection with the transition of our wafer fabrication processes in our Oregon facility to TSMC. | ||||||||||||||||||||
(6) This adjustment reflects the expenses in response to our activities and inquiries of Starboard Value LP. | ||||||||||||||||||||
(7) 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 and life insurance proceeds received to this trust. | ||||||||||||||||||||
(8) 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. | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(Unaudited) | |||||||||
Dec. 30, | April 1, | ||||||||
(In thousands) | 2,012 | 2,012 | |||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 112,802 | $ | 134,924 | |||||
Short-term investments | 167,298 | 190,535 | |||||||
Accounts receivable, net | 62,423 | 60,609 | |||||||
Inventories | 59,982 | 71,780 | |||||||
Prepaid and other current assets | 30,449 | 23,684 | |||||||
Total current assets | 432,954 | 481,532 | |||||||
Property, plant and equipment, net | 75,725 | 69,984 | |||||||
Goodwill | 145,129 | 96,092 | |||||||
Acquisition-related intangibles | 54,004 | 40,548 | |||||||
Other assets | 28,199 | 29,478 | |||||||
TOTAL ASSETS | $ | 736,011 | $ | 717,634 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 23,011 | $ | 25,211 | |||||
Accrued compensation and related expenses | 23,554 | 26,156 | |||||||
Deferred income on shipments to distributors | 14,122 | 14,263 | |||||||
Deferred taxes liabilities | 465 | 421 | |||||||
Other accrued liabilities | 15,872 | 13,443 | |||||||
Total current liabilities | 77,024 | 79,494 | |||||||
Deferred tax liabilities | 5,897 | 1,552 | |||||||
Long term income taxes payable | 458 | 706 | |||||||
Other long term obligations | 21,923 | 16,494 | |||||||
Total liabilities | 105,302 | 98,246 | |||||||
Stockholders' equity | 630,709 | 619,388 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 736,011 | $ | 717,634 | |||||