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 April 29, 2013. |
Dated: | April 29, 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 April 29, 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 divestiture of its smart meter business to Atmel in an all-cash transaction |
• | The industry's first dual-mode wireless power receiver IC compatible with both WPC and PMA standards. The innovative solution eliminates compatibility barriers between wireless power transmission standards, allowing OEMs to address multiple standards with a single device |
• | The industry's first intelligent, scalable power management solution with distributed output current capability to meet varying SoC power requirements and overcome thermal limitations |
• | It won the Prestigious 2013 China ACE Award and China Electronic Market Magazine's Editor's Choice Award for its wireless power solution |
• | The industry's first low-overshoot RF digital step attenuator with integrated coupling capacitors. This drop-in Glitch-Free™ DSA integrates DC-blocking capacitors to simplify the bill-of-materials and maximize performance in base station and industrial applications |
• | Data compression IP offering industry's highest performance for 3G and 4G wireless infrastructure applications. The patent-protected compression IP reduces system cost by enabling the use of low cost fiber to connect remote radio units to the baseband unit in wireless infrastructure |
• | The world's lowest jitter MEMS oscillators with integrated frequency margining capability. The MEMS oscillators offer only 100 femtoseconds of typical phase jitter and adaptable output frequency to reduce bit error rates in high-performance 10GbE and networking applications |
• | Revenue for the fiscal fourth quarter of 2013 was $108.5 million, compared with $119.1 million reported in the same period one year ago. Revenue for fiscal year 2013 was $487.2 million, compared with $526.7 million in fiscal year 2012. |
• | GAAP net loss from continuing operations for the fiscal fourth quarter of 2013 was $10.6 million, or a loss of $0.07 per diluted share, versus GAAP net income from continuing operations of $17.4 million or $0.12 per diluted share in the same period one year ago. Fiscal fourth quarter 2013 GAAP results include $6.4 million in asset impairments and other adjustments, $4.0 million in stock-based compensation, $0.2 million in acquisition and restructuring related charges and $1.5 million from related tax effects. |
• | Non-GAAP net income from continuing operations for the fiscal fourth quarter of 2013 was $1.5 million or $0.01 per diluted share, compared with non-GAAP net income from continuing operations of $7.1 million or $0.05 per diluted share reported in the same period one year ago. Non-GAAP net income from continuing operations for fiscal year 2013 was $31.3 million, compared with $56.6 million in fiscal year 2012. |
• | GAAP gross profit for the fiscal fourth quarter of 2013 was $59.5 million, or 54.8 percent, compared with GAAP gross profit of $63.6 million, or 53.4 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal fourth quarter of 2013 was $63.2 million, or 58.2 percent, compared with non-GAAP gross profit of $68.7 million, or 57.7 percent, reported in the same period one year ago. |
• | GAAP R&D expense for the fiscal fourth quarter of 2013 was $45.7 million, compared with GAAP R&D expense of $41.3 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal fourth quarter of 2013 was $38.5 million, which was flat with non-GAAP R&D of $38.5 million in the same period one year ago. |
• | GAAP SG&A expense for the fiscal fourth quarter of 2013 was $29.1 million, compared with GAAP SG&A expense of $26.4 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal fourth quarter of 2013 was $22.5 million, compared with non-GAAP SG&A expense of $22.4 million in the same period one year ago. |
• | Amortization of acquisition related intangibles, which include acquired intangibles such as purchased technology, patents, customer relationships, trademarks, backlog and non-compete agreements. |
• | Acquisition related costs such as legal, accounting and other professional or consulting fees directly related to an acquisition. |
• | Other acquisition related costs which consists of an accrued deferred closing date fee associated with the acquisition of NXP's high-speed data converter assets. |
• | Fair market value adjustment to acquired inventory sold. |
• | Severance and retention costs directly related to a restructuring action. |
• | Facility closure costs consist of ongoing costs associated with the exit of our leased and owned facilities. |
• | Fabrication production transfer costs consists of expenses incurred in connection with the transition of our wafer fabrication processes in our Oregon facility to TSMC. |
• | Gain on sale of wafer fabrication facility. |
• | Gain on divestiture consists of gains recognized upon the strategic sale of business units. |
• | Assets impairments consists of an impairment charge related to a note receivable and subsequent recoveries. |
• | Asset impairments, consists of the accelerated depreciation of certain design tools no longer in use and the release of capitalized financing fees associated with a financing facility which expired unused. |
• | Other-than-temporary impairment loss on investments consists of fair value write-downs of certain private equity investments. |
• | Stock based compensation expense. |
• | Expenses related to stockholder activities reflect advisory fees related to inquiries of Starboard Value LP. |
• | Compensation expense (benefit) - deferred compensation, consists of gains and losses on marketable equity securities related to our deferred compensation arrangements. |
• | Loss (gain) on deferred compensation plan securities represents 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. |
• | Life insurance proceeds received, represents proceeds received under corporate owned life insurance under our deferred compensation plan. |
• | Tax effects of non-GAAP adjustments. |
• | Diluted weighted average shares non-GAAP adjustment, 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 STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
Mar. 31, | Dec. 30, | Apr. 1, | Mar. 31, | Apr. 1, | ||||||||||||||||||
2013 | 2012 | 2012 | 2013 | 2012 | ||||||||||||||||||
Revenues | $ | 108,527 | $ | 115,147 | $ | 119,116 | $ | 487,236 | $ | 526,696 | ||||||||||||
Cost of revenues | 49,014 | 52,200 | 55,563 | 217,636 | 246,190 | |||||||||||||||||
Gross profit | 59,513 | 62,947 | 63,553 | 269,600 | 280,506 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Research and development | 45,732 | 40,170 | 41,340 | 169,833 | 158,749 | |||||||||||||||||
Selling, general and administrative | 29,133 | 27,389 | 26,429 | 125,684 | 100,907 | |||||||||||||||||
Total operating expenses | 74,865 | 67,559 | 67,769 | 295,517 | 259,656 | |||||||||||||||||
Operating income | (15,352 | ) | (4,612 | ) | (4,216 | ) | (25,917 | ) | 20,850 | |||||||||||||
Gain from divestiture | 7,986 | — | — | 7,986 | — | |||||||||||||||||
Gain on sale of wafer fab facility | — | — | 20,656 | — | 20,656 | |||||||||||||||||
Other-than-temporary impairment loss on investments | (1,708 | ) | — | (667 | ) | (1,708 | ) | (2,797 | ) | |||||||||||||
Other income (expense), net | 258 | (344 | ) | 676 | 1,708 | (1,118 | ) | |||||||||||||||
Income (loss) from continuing operations before income taxes | (8,816 | ) | (4,956 | ) | 16,449 | (17,931 | ) | 37,591 | ||||||||||||||
Provision (benefit) for income taxes | 1,811 | 201 | (908 | ) | (2,007 | ) | 268 | |||||||||||||||
Net income (loss) from continuing operations | (10,627 | ) | (5,157 | ) | 17,357 | (15,924 | ) | 37,323 | ||||||||||||||
Discontinued operations: | ||||||||||||||||||||||
Gain from divestiture | — | — | — | 886 | 45,939 | |||||||||||||||||
Loss from discontinued operations | — | — | (4,605 | ) | (5,131 | ) | (24,891 | ) | ||||||||||||||
Provision (benefit) for income taxes | — | — | — | 3 | (89 | ) | ||||||||||||||||
Net income (loss) from discontinued operations | — | — | (4,605 | ) | (4,248 | ) | 21,137 | |||||||||||||||
Net income (loss) | $ | (10,627 | ) | $ | (5,157 | ) | $ | 12,752 | $ | (20,172 | ) | $ | 58,460 | |||||||||
Basic net income (loss) per share continuing operations | $ | (0.07 | ) | $ | (0.04 | ) | $ | 0.12 | $ | (0.11 | ) | $ | 0.26 | |||||||||
Basic net income (loss) per share discontinued operations | — | — | (0.03 | ) | (0.03 | ) | 0.15 | |||||||||||||||
Basic net income (loss) per share | $ | (0.07 | ) | $ | (0.04 | ) | $ | 0.09 | $ | (0.14 | ) | $ | 0.41 | |||||||||
Diluted net income (loss) per share continuing operations | $ | (0.07 | ) | $ | (0.04 | ) | $ | 0.12 | $ | (0.11 | ) | $ | 0.26 | |||||||||
Diluted net income (loss) per share discontinued operations | — | — | (0.03 | ) | (0.03 | ) | 0.14 | |||||||||||||||
Diluted net income (loss) per share | $ | (0.07 | ) | $ | (0.04 | ) | $ | 0.09 | $ | (0.14 | ) | $ | 0.40 | |||||||||
Weighted average shares: | ||||||||||||||||||||||
Basic | 145,626 | 144,321 | 141,455 | 144,014 | 143,958 | |||||||||||||||||
Diluted | 145,626 | 144,321 | 143,476 | 144,014 | 145,848 |
INTEGRATED DEVICE TECHNOLOGY, INC. | ||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (a) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
Mar. 31, | Dec. 30, | Apr. 1, | Mar. 31, | Apr. 1, | ||||||||||||||||||
2013 | 2012 | 2012 | 2013 | 2012 | ||||||||||||||||||
GAAP net income (loss) from continuing operations | $ | (10,627 | ) | $ | (5,157 | ) | $ | 17,357 | $ | (15,924 | ) | $ | 37,323 | |||||||||
GAAP diluted net income (loss) per share continuing operations | $ | (0.07 | ) | $ | (0.04 | ) | $ | 0.12 | $ | (0.11 | ) | $ | 0.26 | |||||||||
Acquisition related: | ||||||||||||||||||||||
Amortization of acquisition related intangibles | 5,409 | 4,673 | 4,360 | 20,546 | 16,355 | |||||||||||||||||
Acquisition related legal and consulting fees | 1,129 | 2,999 | 689 | 12,594 | 798 | |||||||||||||||||
Other acquisition related costs | — | — | — | 3,000 | — | |||||||||||||||||
Fair market value adjustment to acquired inventory sold | — | — | — | 458 | — | |||||||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | 1,662 | 908 | 1,439 | 5,522 | 2,064 | |||||||||||||||||
Facility closure costs | 2 | 13 | 48 | 62 | 87 | |||||||||||||||||
Fabrication production transfer costs | — | — | 678 | — | 4,572 | |||||||||||||||||
Gain on divestiture | (7,986 | ) | (7,986 | ) | ||||||||||||||||||
Gain on sale of fabrication facility | — | — | (20,656 | ) | — | (20,656 | ) | |||||||||||||||
Assets impairment | (37 | ) | (57 | ) | (60 | ) | (212 | ) | (315 | ) | ||||||||||||
Other: | ||||||||||||||||||||||
Other-than-temporary impairment loss on investments | 1,708 | — | 667 | 1,708 | 2,797 | |||||||||||||||||
Stock-based compensation expense | 3,966 | 2,774 | 3,967 | 13,479 | 16,333 | |||||||||||||||||
Assets impairment | 5,724 | 584 | — | 6,308 | — | |||||||||||||||||
Expenses related to stockholder activities | (1,000 | ) | — | — | 1,614 | — | ||||||||||||||||
Compensation expense (benefit)—deferred compensation plan | 704 | 87 | 819 | 1,135 | 187 | |||||||||||||||||
Loss (gain) on deferred compensation plan securities | (696 | ) | (82 | ) | (798 | ) | (941 | ) | (113 | ) | ||||||||||||
Life insurance proceeds received | — | — | — | (2,313 | ) | — | ||||||||||||||||
Tax effects of Non-GAAP adjustments | 1,544 | (588 | ) | (1,405 | ) | (7,797 | ) | (2,818 | ) | |||||||||||||
Non-GAAP net income from continuing operations | $ | 1,502 | $ | 6,154 | $ | 7,105 | $ | 31,253 | $ | 56,614 | ||||||||||||
GAAP weighted average shares - diluted | 145,626 | 144,321 | 143,476 | 144,014 | 145,848 | |||||||||||||||||
Non-GAAP adjustment | 5,026 | 3,362 | 1,515 | 3,598 | 1,805 | |||||||||||||||||
Non-GAAP weighted average shares - diluted | 150,652 | 147,683 | 144,991 | 147,612 | 147,653 | |||||||||||||||||
Non-GAAP diluted net income per share continuing operations | $ | 0.01 | $ | 0.04 | $ | 0.05 | $ | 0.21 | $ | 0.38 |
INTEGRATED DEVICE TECHNOLOGY, INC. | |||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP (continued) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
Mar. 31, | Dec. 30, | Apr. 1, | Mar. 31, | Apr. 1, | |||||||||||||
2013 | 2012 | 2012 | 2013 | 2012 | |||||||||||||
GAAP gross profit | 59,513 | 62,947 | 63,553 | 269,600 | 280,506 | ||||||||||||
Acquisition and divestiture related: | |||||||||||||||||
Amortization of acquisition related intangibles | 3,210 | 2,944 | 2,763 | 13,666 | 11,597 | ||||||||||||
Fair market value adjustment to acquired inventory sold | — | — | — | 458 | — | ||||||||||||
Restructuring related: | |||||||||||||||||
Severance and retention costs | — | — | 1,181 | 607 | 357 | ||||||||||||
Facility closure costs | (9 | ) | 4 | 4 | 4 | 5 | |||||||||||
Fabrication production transfer costs | — | — | 678 | — | 4,572 | ||||||||||||
Assets impairment | (37 | ) | (57 | ) | (60 | ) | (212 | ) | (315 | ) | |||||||
Other: | |||||||||||||||||
Assets impairment | — | 584 | 584 | — | |||||||||||||
Compensation expense (benefit)—deferred compensation plan | 217 | 21 | 205 | 324 | 68 | ||||||||||||
Stock-based compensation expense | 263 | 295 | 369 | 1,113 | 1,784 | ||||||||||||
Non-GAAP gross profit | 63,157 | 66,738 | 68,693 | 286,144 | 298,574 | ||||||||||||
GAAP R&D expenses: | 45,732 | 40,170 | 41,340 | 169,833 | 158,749 | ||||||||||||
Restructuring related: | |||||||||||||||||
Severance and retention costs | (1,560 | ) | (912 | ) | (246 | ) | (3,882 | ) | (1,719 | ) | |||||||
Facility closure costs | (6 | ) | (5 | ) | (6 | ) | (43 | ) | (20 | ) | |||||||
Other: | |||||||||||||||||
Assets impairment | (3,203 | ) | — | — | (3,203 | ) | — | ||||||||||
Compensation expense (benefit)—deferred compensation plan | (365 | ) | (53 | ) | (495 | ) | (626 | ) | (86 | ) | |||||||
Stock-based compensation expense | (2,146 | ) | (1,531 | ) | (2,073 | ) | (7,092 | ) | (8,566 | ) | |||||||
Non-GAAP R&D expenses | 38,452 | 37,669 | 38,520 | 154,987 | 148,358 | ||||||||||||
GAAP SG&A expenses: | 29,133 | 27,389 | 26,429 | 125,684 | 100,907 | ||||||||||||
Acquisition and divestiture related: | |||||||||||||||||
Amortization of acquisition related intangibles | (2,199 | ) | (1,729 | ) | (1,597 | ) | (6,880 | ) | (4,758 | ) | |||||||
Acquisition related legal and consulting fees | (1,129 | ) | (2,999 | ) | (689 | ) | (12,594 | ) | (798 | ) | |||||||
Other acquisition related costs | — | — | — | (3,000 | ) | — | |||||||||||
Restructuring related: | |||||||||||||||||
Severance and retention costs | (102 | ) | 4 | (12 | ) | (1,033 | ) | 12 | |||||||||
Facility closure costs | (5 | ) | (4 | ) | (38 | ) | (15 | ) | (62 | ) |
INTEGRATED DEVICE TECHNOLOGY, INC. | |||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP (continued) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
Mar. 31, | Dec. 30, | Apr. 1, | Mar. 31, | Apr. 1, | |||||||||||||
2013 | 2012 | 2012 | 2013 | 2012 | |||||||||||||
Other: | |||||||||||||||||
Assets impairment | (2,521 | ) | — | (2,521 | ) | — | |||||||||||
Compensation expense (benefit)—deferred compensation plan | (122 | ) | (13 | ) | (119 | ) | (185 | ) | (33 | ) | |||||||
Stock-based compensation expense | (1,557 | ) | (948 | ) | (1,525 | ) | (5,274 | ) | (5,983 | ) | |||||||
Expenses related to stockholder activities | 1,000 | — | — | (1,614 | ) | — | |||||||||||
Non-GAAP SG&A expenses | 22,498 | 21,700 | 22,449 | 92,568 | 89,285 | ||||||||||||
GAAP interest income and other, net | 258 | (344 | ) | 676 | 1,708 | (1,118 | ) | ||||||||||
Loss (gain) on deferred compensation plan securities | (696 | ) | (82 | ) | (798 | ) | (941 | ) | (113 | ) | |||||||
Life insurance proceeds received | — | — | — | (2,313 | ) | — | |||||||||||
Non-GAAP interest income and other, net | (438 | ) | (426 | ) | (122 | ) | (1,546 | ) | (1,231 | ) | |||||||
GAAP provision (benefit) for income taxes continuing operations | 1,811 | 201 | (908 | ) | (2,007 | ) | 268 | ||||||||||
Tax effects of Non-GAAP adjustments (7) | (1,544 | ) | 588 | 1,405 | 7,797 | 2,818 | |||||||||||
Non-GAAP provision (benefit) for income taxes continuing operations | 267 | 789 | 497 | 5,790 | 3,086 | ||||||||||||
(a) Refer to the accompanying “Notes to Non-GAAP Financial Measures” for a detailed discussion of management’s use of non-GAAP financial measures. |
INTEGRATED DEVICE TECHNOLOGY, INC. | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(Unaudited) | |||||||||
Mar. 31, | April 1, | ||||||||
(In thousands) | 2013 | 2012 | |||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 130,837 | $ | 134,924 | |||||
Short-term investments | 166,333 | 190,535 | |||||||
Accounts receivable, net | 62,083 | 60,609 | |||||||
Inventories | 56,555 | 71,780 | |||||||
Prepaid and other current assets | 23,741 | 23,684 | |||||||
Total current assets | 439,549 | 481,532 | |||||||
Property, plant and equipment, net | 74,988 | 69,984 | |||||||
Goodwill | 144,924 | 96,092 | |||||||
Acquisition-related intangibles | 48,602 | 40,548 | |||||||
Other assets | 19,560 | 29,478 | |||||||
TOTAL ASSETS | $ | 727,623 | $ | 717,634 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 22,288 | $ | 25,211 | |||||
Accrued compensation and related expenses | 21,090 | 26,156 | |||||||
Deferred income on shipments to distributors | 14,539 | 14,263 | |||||||
Deferred taxes liabilities | 1,000 | 421 | |||||||
Other accrued liabilities | 14,652 | 13,443 | |||||||
Total current liabilities | 73,569 | 79,494 | |||||||
Deferred tax liabilities | 1,552 | 1,552 | |||||||
Long term income taxes payable | 454 | 706 | |||||||
Other long term obligations | 22,022 | 16,494 | |||||||
Total liabilities | 97,597 | 98,246 | |||||||
Stockholders' equity | 630,026 | 619,388 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 727,623 | $ | 717,634 |