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 May 5, 2014 as corrected for the typographical error. |
Dated: | May 12, 2014 | |
INTEGRATED DEVICE TECHNOLOGY, INC. | ||
By: | /S/ BRIAN C. WHITE | |
Brian C. White | ||
Vice President and Chief Financial Officer (duly authorized officer) |
Exhibit No. | Description |
99.1 | Press Release Dated May 5, 2014 as corrected for the typographical error. |
Suzanne Schmidt IDT Investor Relations Phone: (415) 217-4962 E-mail: suzanne@blueshirtgroup.com | Graham Robertson IDT Worldwide Marketing Phone: (408) 284-2644 E-mail: graham.robertson@idt.com |
• | Nominated for four prestigious ACE awards, presented by UBM Tech's EE Times and EDN publications, IDT won top prize in the “Ultimate Products” category for its third generation Universal Frequency Translator (UFT) clocking family. The three other nominations were for the Timing Commander™ software, an RF-PLL and DDR4 data buffer. |
• | IDT announced the mass production of its JEDEC 1.0-compliant DDR4 chipset-already validated by Intel® to meet the requirements of the future Intel Xeon™ processor E5-2600 v3 product family--for use in RDIMMs and LRDIMMs. |
• | IDT extended its leadership in the timing market with the VersaClock 5 family of programmable clock generators, the best-in-class, complete clock tree solution for cost-sensitive, low-power consumer and low-jitter communication timing applications. |
• | IDT introduced the industry’s first Ethernet and IEEE 1588 timing devices optimized for smart grid and industrial automation applications. The new low-jitter timing products improve the accuracy and reliability of IEEE 1588 time transport and offer important flexibility with an integrated Ethernet digital PLL (DPLL) and digitally-controlled oscillator (DCO) in a single chip. |
• | IDT announced a new family of ultra-compact wireless power receivers offering a board area footprint reduction up to 70% compared to switching regulator-based solutions. The latest Wireless Power Consortium's (WPC) and Power Matter's Alliance (PMA)-compliant devices expand IDT's industry-leading wireless power portfolio to address densely populated, cost-sensitive portable applications. |
• | IDT introduced the industry's first dual-mode wireless power receiver compatible with both the WPC 1.1 standard, as well as the PMA 1.1 standard. The innovative solution enables OEMs to use a single wireless power receiver IC to develop mobile devices fully compatible with the latest versions of both Qi and PMA charging bases. |
• | Revenue from continuing operations for the fiscal fourth quarter of 2014 was $118.6 million, compared with $107.8 million reported in the same period one year ago. |
• | GAAP net income from continuing operations for the fiscal fourth quarter of 2014 was $5.4 million, or $0.04 per diluted share, versus a GAAP net loss from continuing operations of $5.5 million or a loss of $0.04 per share in the same period one year ago. Fiscal fourth quarter 2014 GAAP results include a $14.5 million loss relating to amortization and impairment of intangible assets and other acquisition/divestiture related charges, $2.4 million in stock-based compensation expense, $1.1 million in restructuring related charges, and $1.3 million expense from related tax effects. |
• | Non-GAAP net income for the fiscal fourth quarter of 2014 was $22.1 million or $0.14 per diluted share, compared with non-GAAP net income of $4.9 million or $0.03 per diluted share reported in the same period one year ago. |
• | GAAP gross profit from continuing operations for the fiscal fourth quarter of 2014 was $61.1 million, or 51.5 percent, compared with GAAP gross profit of $59.5 million, or 55.2 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal fourth quarter of 2014 was $72.5 million, or 61.1 percent, compared with non-GAAP gross profit of $62.7 million, or 58.2 percent, reported in the same period one year ago. |
• | GAAP R&D expense for the fiscal fourth quarter of 2014 was $32.7 million, compared with GAAP R&D expense of $42.1 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal fourth quarter of 2014 was $28.4 million, compared with non-GAAP R&D of $35.0 million in the same period one year ago. |
• | GAAP SG&A expense for the fiscal fourth quarter of 2014 was $23.2 million, compared with GAAP SG&A expense of $27.8 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal fourth quarter of 2014 was $20.9 million, compared with non-GAAP SG&A expense of $22.1 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. |
• | 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 |
• | 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. 30, | Dec. 29, | Mar. 31, | Mar. 30, | Mar. 31, | ||||||||||||||||||
2014 | 2013 | 2013 | 2014 | 2013 | ||||||||||||||||||
Revenues | $ | 118,640 | $ | 124,628 | $ | 107,779 | $ | 484,779 | $ | 484,452 | ||||||||||||
Cost of revenues | 57,509 | 49,689 | 48,256 | 211,826 | 214,728 | |||||||||||||||||
Gross profit | 61,131 | 74,939 | 59,523 | 272,953 | 269,724 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Research and development | 30,223 | 31,063 | 42,096 | 138,162 | 159,471 | |||||||||||||||||
Selling, general and administrative | 23,213 | 23,687 | 27,784 | 101,039 | 117,648 | |||||||||||||||||
Impairment of in-process research and development | 2,433 | — | — | 2,433 | — | |||||||||||||||||
Total operating expenses | 55,869 | 54,750 | 69,880 | 241,634 | 277,119 | |||||||||||||||||
Operating income (loss) | 5,262 | 20,189 | (10,357 | ) | 31,319 | (7,395 | ) | |||||||||||||||
Gain (loss) from divestiture | (302 | ) | (3,415 | ) | 7,986 | 78,632 | 7,986 | |||||||||||||||
Other-than-temporary impairment loss on investments | — | — | (1,708 | ) | — | (1,708 | ) | |||||||||||||||
Other income, net | 786 | 1,108 | 258 | 2,707 | 1,708 | |||||||||||||||||
Income (loss) from continuing operations before income taxes | 5,746 | 17,882 | (3,821 | ) | 112,658 | 591 | ||||||||||||||||
Provision (benefit) for income taxes | 320 | 543 | 1,648 | 981 | (2,120 | ) | ||||||||||||||||
Net income (loss) from continuing operations | 5,426 | 17,339 | (5,469 | ) | 111,677 | 2,711 | ||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||
Gain from divestiture | — | — | — | — | 886 | |||||||||||||||||
Loss from discontinued operations | (5,016 | ) | (10,123 | ) | (4,995 | ) | (22,938 | ) | (23,653 | ) | ||||||||||||
Provision for income taxes | 17 | 268 | 163 | 11 | 116 | |||||||||||||||||
Net income (loss) from discontinued operations | (5,033 | ) | (10,391 | ) | (5,158 | ) | (22,949 | ) | (22,883 | ) | ||||||||||||
Net income (loss) | $ | 393 | $ | 6,948 | $ | (10,627 | ) | $ | 88,728 | $ | (20,172 | ) | ||||||||||
Basic net income (loss) per share continuing operations | $ | 0.04 | $ | 0.11 | (0.04 | ) | $ | 0.75 | 0.02 | |||||||||||||
Basic net income (loss) per share discontinued operations | (0.04 | ) | (0.06 | ) | (0.03 | ) | (0.16 | ) | (0.16 | ) | ||||||||||||
Basic net income (loss) per share | $ | — | $ | 0.05 | (0.07 | ) | $ | 0.59 | $ | (0.14 | ) | |||||||||||
Diluted net income (loss) per share continuing operations | $ | 0.04 | $ | 0.11 | (0.04 | ) | $ | 0.73 | 0.02 | |||||||||||||
Diluted net income (loss) per share discontinued operations | (0.04 | ) | (0.07 | ) | (0.03 | ) | (0.15 | ) | (0.16 | ) | ||||||||||||
Diluted net income (loss) per share | $ | — | $ | 0.04 | (0.07 | ) | $ | 0.58 | $ | (0.14 | ) | |||||||||||
Weighted average shares: | ||||||||||||||||||||||
Basic | 150,033 | 151,018 | 145,626 | 149,480 | 144,014 | |||||||||||||||||
Diluted | 154,390 | 155,035 | 145,626 | 153,369 | 145,678 |
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. 30, | Dec. 29, | Mar. 31, | Mar. 30, | Mar. 31, | ||||||||||||||||||
2014 | 2013 | 2013 | 2014 | 2013 | ||||||||||||||||||
GAAP net income (loss) from continuing operations | $ | 5,426 | $ | 17,339 | $ | (5,469 | ) | $ | 111,677 | $ | 2,711 | |||||||||||
GAAP diluted net income (loss) per share continuing operations | $ | 0.04 | $ | 0.11 | (0.04 | ) | $ | 0.73 | 0.02 | |||||||||||||
Acquisition related: | ||||||||||||||||||||||
Amortization of acquisition related intangibles | 11,999 | 3,322 | 4,097 | 21,964 | 16,339 | |||||||||||||||||
Impairment of in-process research and development | 2,433 | — | — | 2,433 | — | |||||||||||||||||
Acquisition related legal and consulting fees | 73 | 21 | 1,009 | 802 | 11,238 | |||||||||||||||||
Fair market value adjustment to acquired inventory sold | — | — | — | — | 358 | |||||||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | 383 | 400 | 1,662 | 6,456 | 5,522 | |||||||||||||||||
Facility closure costs | 107 | 6 | 2 | 134 | 62 | |||||||||||||||||
Loss (Gain) on divestiture | 302 | 3,415 | (7,986 | ) | (78,632 | ) | (7,986 | ) | ||||||||||||||
Assets impairment and other | 334 | (265 | ) | 5,687 | 4,113 | 6,096 | ||||||||||||||||
Other: | ||||||||||||||||||||||
Other-than-temporary impairment loss on investments | — | — | 1,708 | — | 1,708 | |||||||||||||||||
Stock-based compensation expense | 2,368 | 3,169 | 3,813 | 12,677 | 13,054 | |||||||||||||||||
Expenses related to stockholder activities | — | — | (1,000 | ) | — | 1,614 | ||||||||||||||||
Compensation expense—deferred compensation plan | 185 | 557 | 704 | 1,265 | 1,135 | |||||||||||||||||
Gain on deferred compensation plan securities | (171 | ) | (627 | ) | (696 | ) | (1,316 | ) | (941 | ) | ||||||||||||
Life insurance proceeds received | — | — | — | — | (2,313 | ) | ||||||||||||||||
Tax effects of Non-GAAP adjustments | (1,331 | ) | (1,402 | ) | 1,381 | (4,389 | ) | (7,910 | ) | |||||||||||||
Non-GAAP net income from continuing operations | 22,108 | 25,935 | 4,912 | 77,184 | 40,687 | |||||||||||||||||
GAAP weighted average shares - diluted | 154,390 | 155,035 | 145,626 | 153,369 | 145,678 | |||||||||||||||||
Non-GAAP adjustment | 1,492 | 2,099 | 5,026 | 1,981 | 1,934 | |||||||||||||||||
Non-GAAP weighted average shares - diluted | 155,882 | 157,134 | 150,652 | 155,350 | 147,612 | |||||||||||||||||
Non-GAAP diluted net income per share continuing operations | $ | 0.14 | $ | 0.17 | $ | 0.03 | $ | 0.50 | $ | 0.28 | ||||||||||||
GAAP gross profit | 61,131 | 74,939 | 59,523 | 272,953 | 269,724 | |||||||||||||||||
Acquisition and divestiture related: | ||||||||||||||||||||||
Amortization of acquisition related intangibles | 11,016 | 2,435 | 2,740 | 18,321 | 12,413 | |||||||||||||||||
Fair market value adjustment to acquired inventory sold | — | — | — | — | 358 | |||||||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | 117 | — | — | 204 | 607 | |||||||||||||||||
Facility closure costs | — | 2 | (9 | ) | 8 | 4 | ||||||||||||||||
Assets impairment and other | 105 | (142 | ) | (37 | ) | (111 | ) | 372 | ||||||||||||||
Other: | ||||||||||||||||||||||
Compensation expense (benefit)—deferred compensation plan | 55 | 172 | 217 | 388 | 324 | |||||||||||||||||
Stock-based compensation expense | 61 | 403 | 263 | 1,189 | 1,113 | |||||||||||||||||
Non-GAAP gross profit | 72,485 | 77,809 | 62,697 | 292,952 | 284,915 |
INTEGRATED DEVICE TECHNOLOGY, INC. | |||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES, CONTINUED (a) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
Mar. 30, | Dec. 29, | Mar. 31, | Mar. 30, | Mar. 31, | |||||||||||||
2014 | 2013 | 2013 | 2014 | 2013 | |||||||||||||
GAAP R&D expenses: | 30,223 | 31,063 | 42,096 | 138,162 | 159,471 | ||||||||||||
Restructuring related: | |||||||||||||||||
Severance and retention costs | (264 | ) | (86 | ) | (1,560 | ) | (4,193 | ) | (3,882 | ) | |||||||
Facility closure costs | — | (2 | ) | (6 | ) | (9 | ) | (43 | ) | ||||||||
Assets impairment and other | (63 | ) | 123 | (3,203 | ) | (4,058 | ) | (3,203 | ) | ||||||||
Other: | |||||||||||||||||
Compensation expense—deferred compensation plan | (90 | ) | (289 | ) | (365 | ) | (650 | ) | (626 | ) | |||||||
Stock-based compensation expense | (1,389 | ) | (1,514 | ) | (2,001 | ) | (5,601 | ) | (6,691 | ) | |||||||
Non-GAAP R&D expenses | 28,417 | 29,295 | 34,961 | 123,651 | 145,026 | ||||||||||||
GAAP SG&A expenses: | 23,213 | 23,687 | 27,784 | 101,039 | 117,648 | ||||||||||||
Acquisition and divestiture related: | |||||||||||||||||
Amortization of acquisition related intangibles | (983 | ) | (887 | ) | (1,357 | ) | (3,643 | ) | (3,926 | ) | |||||||
Acquisition related legal and consulting fees | (73 | ) | (21 | ) | (1,009 | ) | (802 | ) | (11,238 | ) | |||||||
Restructuring related: | |||||||||||||||||
Severance and retention costs | (2 | ) | (314 | ) | (102 | ) | (2,059 | ) | (1,033 | ) | |||||||
Facility closure costs | (107 | ) | (2 | ) | (5 | ) | (117 | ) | (15 | ) | |||||||
Assets impairment and other | (166 | ) | — | (2,521 | ) | (166 | ) | (2,521 | ) | ||||||||
Other: | |||||||||||||||||
Compensation expense—deferred compensation plan | (40 | ) | (96 | ) | (122 | ) | (227 | ) | (185 | ) | |||||||
Stock-based compensation expense | (918 | ) | (1,252 | ) | (1,549 | ) | (5,887 | ) | (5,250 | ) | |||||||
Expenses related to stockholder activities | — | — | 1,000 | — | (1,614 | ) | |||||||||||
Non-GAAP SG&A expenses | 20,924 | 21,115 | 22,119 | 88,138 | 91,866 | ||||||||||||
GAAP interest income and other, net | 786 | 1,108 | 258 | 2,707 | 1,708 | ||||||||||||
Gain on deferred compensation plan securities | (171 | ) | (627 | ) | (696 | ) | (1,316 | ) | (941 | ) | |||||||
Life insurance proceeds received | — | — | — | — | (2,313 | ) | |||||||||||
Non-GAAP interest income and other, net | 615 | 481 | (438 | ) | 1,391 | (1,546 | ) | ||||||||||
GAAP provision (benefit) for income taxes continuing operations | 320 | 543 | 1,648 | 981 | (2,120 | ) | |||||||||||
Tax effects of Non-GAAP adjustments | 1,331 | 1,402 | (1,381 | ) | 4,389 | 7,910 | |||||||||||
Non-GAAP provision for income taxes continuing operations | 1,651 | 1,945 | 267 | 5,370 | 5,790 | ||||||||||||
(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. 30, | Mar. 31, | ||||||||
(In thousands) | 2014 | 2013 | |||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 91,211 | $ | 130,837 | |||||
Short-term investments | 362,604 | 166,333 | |||||||
Accounts receivable, net | 68,904 | 62,083 | |||||||
Inventories | 49,622 | 56,555 | |||||||
Prepaid and other current assets | 13,034 | 24,697 | |||||||
Total current assets | 585,375 | 440,505 | |||||||
Property, plant and equipment, net | 69,827 | 74,988 | |||||||
Goodwill | 135,644 | 144,924 | |||||||
Acquisition-related intangibles | 18,741 | 48,602 | |||||||
Other assets | 21,373 | 19,560 | |||||||
TOTAL ASSETS | $ | 830,960 | $ | 728,579 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 25,442 | $ | 23,244 | |||||
Accrued compensation and related expenses | 24,343 | 21,090 | |||||||
Deferred income on shipments to distributors | 14,006 | 14,539 | |||||||
Deferred taxes liabilities | 1,346 | 1,000 | |||||||
Other accrued liabilities | 11,160 | 14,652 | |||||||
Total current liabilities | 76,297 | 74,525 | |||||||
Deferred tax liabilities | 1,494 | 1,552 | |||||||
Long term income taxes payable | 266 | 454 | |||||||
Other long term obligations | 18,683 | 22,022 | |||||||
Total liabilities | 96,740 | 98,553 | |||||||
Stockholders' equity | 734,220 | 630,026 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 830,960 | $ | 728,579 |