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 February 2, 2015 |
Dated: | February 2, 2015 | |
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 February 2, 2015. |
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 |
• | IDT Introduces New High-Performance Synthesizer, Delivering Ultra-Low Phase Jitter for Serial Data Communications |
• | IDT’s Universal Frequency Translator Wins Elektra Award for Best Digital Product of the Year |
• | IDT Expands VersaClock 5 Family with Six New Products, Delivering Best-in-Class Jitter Performance in Cost-Effective Configurations |
• | IDT Introduces High-Performance Crystal Oscillators with Best-in-Class Jitter Performance, Low Cost and Short Production Lead Times |
• | IDT Announces New Internally Matched Broadband RF VGA with Ultra-High Linearity |
• | IDT Introduces New Family of Highly Efficient Wireless Power Transmitters, Targeting the Expanding Ecosystem of Wireless Charging Applications |
• | IDT Wireless Power Chips Used for State-of-the-Art ‘Cube’ Remote Control |
• | IDT Surpasses Milestone of 3 Million Low-Power PCIe Gen3 Buffers Shipped |
• | IDT, Orange Silicon Valley, NVIDIA Accelerate Computing Breakthrough with RapidIO-based Clusters Ideal for Gaming, Analytics |
• | IDT Launches RapidIO 40-100 Gbps Interface Portfolio, Reducing Latency and Boosting Bandwidth for Communications and Computing |
• | Revenue from continuing operations for the fiscal third quarter of 2015 was $151.2 million, compared with $137.1 million reported last quarter, and $124.6 million reported in the same period one year ago. |
• | GAAP net income from continuing operations for the fiscal third quarter of 2015 was $32.8 million, or $0.21 per diluted share, versus GAAP net income from continuing operations of $24.2 million or $0.16 per diluted share last quarter, and a GAAP net income from continuing operations of $17.3 million or $0.11 per share in the same period one year ago. Fiscal third quarter 2015 GAAP results include $1.3 million expense relating to amortization of intangible assets, $5.9 million in stock-based compensation expense, $0.1 million in other restructuring related charges, and $1.5 million benefit in related tax effects. |
• | Non-GAAP net income for the fiscal third quarter of 2015 was $38.7 million or $0.25 per diluted share, compared with non-GAAP net income of $31.8 million or $0.20 per diluted share last quarter, and non-GAAP net income of $25.9 million or $0.17 per diluted share reported in the same period one year ago. |
• | GAAP gross profit from continuing operations for the fiscal third quarter of 2015 was $91.4 million, or 60.4 percent, compared with GAAP gross profit of $81.9 million or 59.7 percent last quarter, and $74.9 million, or 60.1 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal third quarter of 2015 was $93.0 |
• | GAAP R&D expense for the fiscal third quarter of 2015 was $32.8 million, compared with GAAP R&D expense of $30.7 million last quarter, and $31.1 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal third quarter of 2015 was $29.7 million, compared with non-GAAP R&D expense of $28.2 million last quarter, and $29.3 million in the same period one year ago. |
• | GAAP SG&A expense for the fiscal third quarter of 2015 was $27.2 million, compared with GAAP SG&A expense of $26.8 million last quarter, and $23.7 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal third quarter of 2015 was $23.9 million, compared with non-GAAP SG&A expense of $23.3 million last quarter, and $21.1 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. |
• | 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 including accelerated depreciation of certain assets no longer in use and impairment charge related to a note receivable and subsequent recoveries. |
• | Stock based compensation expense. |
• | 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. Effective first quarter of fiscal 2015 the Company used a projected long-term non-GAAP tax rate of 4%. When projecting this long-term rate, the Company evaluated its current long-term projections, current tax structure and other factors such as the Company’s existing tax positions in various jurisdictions and key legislations in major jurisdictions where the company operates. The Company intends to re-evaluate this long-term rate only on an annual basis. This long-term non-GAAP tax rate eliminates the effects of non-recurring and period specific items which can vary in size and frequency, and will provide better consistency within the interim |
• | 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 | Nine Months Ended | |||||||||||||||||||||
Dec. 28, | Sept. 28, | Dec. 29, | Dec. 28, | Dec. 29, | ||||||||||||||||||
2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Revenues | $ | 151,160 | $ | 137,093 | $ | 124,628 | $ | 414,555 | $ | 366,139 | ||||||||||||
Cost of revenues | 59,796 | 55,217 | 49,689 | 167,306 | 154,317 | |||||||||||||||||
Gross profit | 91,364 | 81,876 | 74,939 | 247,249 | 211,822 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Research and development | 32,825 | 30,742 | 31,063 | 95,617 | 107,939 | |||||||||||||||||
Selling, general and administrative | 27,165 | 26,795 | 23,687 | 79,419 | 77,826 | |||||||||||||||||
Total operating expenses | 59,990 | 57,537 | 54,750 | 175,036 | 185,765 | |||||||||||||||||
Operating income | 31,374 | 24,339 | 20,189 | 72,213 | 26,057 | |||||||||||||||||
Gain (loss) from divestiture | — | — | (3,415 | ) | — | 78,934 | ||||||||||||||||
Other income, net | 1,558 | 405 | 1,108 | 2,825 | 1,921 | |||||||||||||||||
Income from continuing operations before income taxes | 32,932 | 24,744 | 17,882 | 75,038 | 106,912 | |||||||||||||||||
Provision for income taxes | 91 | 498 | 543 | 840 | 661 | |||||||||||||||||
Net income from continuing operations | 32,841 | 24,246 | 17,339 | 74,198 | 106,251 | |||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||
Gain from divestiture | — | — | — | 16,840 | — | |||||||||||||||||
Loss from discontinued operations | (14,538 | ) | (9,747 | ) | (10,123 | ) | (36,438 | ) | (17,922 | ) | ||||||||||||
Provision for (benefit from) income taxes | (55 | ) | 57 | 268 | (43 | ) | (6 | ) | ||||||||||||||
Net loss from discontinued operations | (14,483 | ) | (9,804 | ) | (10,391 | ) | (19,555 | ) | (17,916 | ) | ||||||||||||
Net income | $ | 18,358 | $ | 14,442 | $ | 6,948 | $ | 54,643 | $ | 88,335 | ||||||||||||
Basic net income per share - continuing operations | $ | 0.22 | $ | 0.16 | $ | 0.11 | $ | 0.50 | $ | 0.71 | ||||||||||||
Basic net loss per share - discontinued operations | (0.10 | ) | (0.06 | ) | (0.06 | ) | (0.13 | ) | (0.12 | ) | ||||||||||||
Basic net income per share | $ | 0.12 | $ | 0.10 | $ | 0.05 | $ | 0.37 | $ | 0.59 | ||||||||||||
Diluted net income per share - continuing operations | $ | 0.21 | $ | 0.16 | $ | 0.11 | $ | 0.48 | $ | 0.70 | ||||||||||||
Diluted net loss per share - discontinued operations | (0.09 | ) | (0.07 | ) | (0.07 | ) | (0.12 | ) | (0.12 | ) | ||||||||||||
Diluted net income per share | $ | 0.12 | $ | 0.09 | $ | 0.04 | $ | 0.36 | $ | 0.58 | ||||||||||||
Weighted average shares: | ||||||||||||||||||||||
Basic | 148,552 | 148,683 | 151,018 | 148,844 | 148,835 | |||||||||||||||||
Diluted | 153,973 | 153,784 | 155,035 | 153,904 | 152,560 |
INTEGRATED DEVICE TECHNOLOGY, INC. | ||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (a) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
Dec. 28, | Sept. 28, | Dec. 29, | Dec. 28, | Dec. 29, | ||||||||||||||||||
2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
GAAP net income from continuing operations | $ | 32,841 | $ | 24,246 | $ | 17,339 | $ | 74,198 | $ | 106,251 | ||||||||||||
GAAP diluted net income per share - continuing operations | $ | 0.21 | $ | 0.16 | $ | 0.11 | $ | 0.48 | $ | 0.70 | ||||||||||||
Acquisition related: | ||||||||||||||||||||||
Amortization of acquisition related intangibles | 1,347 | 1,676 | 3,322 | 5,572 | 9,965 | |||||||||||||||||
Acquisition related legal and consulting fees | (125 | ) | — | 21 | (125 | ) | 729 | |||||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | 129 | 319 | 400 | 974 | 6,073 | |||||||||||||||||
Facility closure costs | 209 | 20 | 6 | 276 | 27 | |||||||||||||||||
Gain from divestiture | — | — | 3,415 | — | (78,934 | ) | ||||||||||||||||
Assets impairment and other | — | 401 | (151 | ) | 2,703 | 3,893 | ||||||||||||||||
Other: | ||||||||||||||||||||||
Stock-based compensation expense | 5,878 | 5,929 | 3,169 | 16,769 | 10,309 | |||||||||||||||||
Gain from divestiture | (104 | ) | — | — | (104 | ) | — | |||||||||||||||
Asset impairment and other | — | — | (114 | ) | — | (114 | ) | |||||||||||||||
Compensation expense (benefit) - deferred compensation plan | 525 | (242 | ) | 557 | 777 | 1,080 | ||||||||||||||||
(Gain) loss on deferred compensation plan securities | (500 | ) | 245 | (627 | ) | (735 | ) | (1,145 | ) | |||||||||||||
Tax effects of Non-GAAP adjustments | (1,521 | ) | (826 | ) | (1,402 | ) | (3,206 | ) | (3,058 | ) | ||||||||||||
Non-GAAP net income from continuing operations | $ | 38,679 | $ | 31,768 | $ | 25,935 | $ | 97,099 | $ | 55,076 | ||||||||||||
GAAP weighted average shares - diluted | 153,973 | 153,784 | 155,035 | 153,904 | 152,560 | |||||||||||||||||
Non-GAAP adjustment | 1,463 | 2,128 | 2,099 | 1,802 | 2,659 | |||||||||||||||||
Non-GAAP weighted average shares - diluted | 155,436 | 155,912 | 157,134 | 155,706 | 155,219 | |||||||||||||||||
Non-GAAP diluted net income per share - continuing operations | $ | 0.25 | $ | 0.20 | $ | 0.17 | $ | 0.62 | $ | 0.35 | ||||||||||||
GAAP gross profit | $ | 91,364 | $ | 81,876 | $ | 74,939 | $ | 247,249 | $ | 211,822 | ||||||||||||
Acquisition related: | ||||||||||||||||||||||
Amortization of acquisition related intangibles | 959 | 1,264 | 2,435 | 3,909 | 7,305 | |||||||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | (96 | ) | 96 | — | 23 | 87 | ||||||||||||||||
Facility closure costs | — | — | 2 | — | 8 | |||||||||||||||||
Assets impairment and other | — | 334 | (28 | ) | 2,269 | (102 | ) | |||||||||||||||
Other: | ||||||||||||||||||||||
Asset impairment and other | — | — | (114 | ) | — | (114 | ) | |||||||||||||||
Compensation expense (benefit) - deferred compensation plan | 156 | (70 | ) | 172 | 233 | 333 | ||||||||||||||||
Stock-based compensation expense | 592 | 436 | 403 | 1,347 | 1,128 | |||||||||||||||||
Non-GAAP gross profit | $ | 92,975 | $ | 83,936 | $ | 77,809 | $ | 255,030 | $ | 220,467 |
GAAP R&D expenses: | $ | 32,825 | $ | 30,742 | $ | 31,063 | $ | 95,617 | $ | 107,939 | ||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | (91 | ) | (136 | ) | (86 | ) | (467 | ) | (3,929 | ) | ||||||||||||
Facility closure costs | (209 | ) | — | (2 | ) | (209 | ) | (9 | ) | |||||||||||||
Assets impairment and other | — | (67 | ) | — | (434 | ) | — | |||||||||||||||
Other: | ||||||||||||||||||||||
Asset impairment and other | — | — | 123 | — | (3,995 | ) | ||||||||||||||||
Compensation expense (benefit) - deferred compensation plan | (255 | ) | 114 | (289 | ) | (381 | ) | (560 | ) | |||||||||||||
Stock-based compensation expense | (2,562 | ) | (2,464 | ) | (1,514 | ) | (7,547 | ) | (4,212 | ) | ||||||||||||
Non-GAAP R&D expenses | $ | 29,708 | $ | 28,189 | $ | 29,295 | $ | 86,579 | $ | 95,234 | ||||||||||||
GAAP SG&A expenses: | $ | 27,165 | $ | 26,795 | $ | 23,687 | $ | 79,419 | $ | 77,826 | ||||||||||||
Acquisition related: | ||||||||||||||||||||||
Amortization of acquisition related intangibles | (388 | ) | (412 | ) | (887 | ) | (1,663 | ) | (2,660 | ) | ||||||||||||
Acquisition related legal and consulting fees | 125 | — | (21 | ) | 125 | (729 | ) | |||||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | (134 | ) | (87 | ) | (314 | ) | (484 | ) | (2,057 | ) | ||||||||||||
Facility closure costs | — | (20 | ) | (2 | ) | (67 | ) | (10 | ) | |||||||||||||
Other: | ||||||||||||||||||||||
Compensation expense (benefit) - deferred compensation plan | (114 | ) | 58 | (96 | ) | (163 | ) | (187 | ) | |||||||||||||
Stock-based compensation expense | (2,724 | ) | (3,029 | ) | (1,252 | ) | (7,875 | ) | (4,969 | ) | ||||||||||||
Non-GAAP SG&A expenses | $ | 23,930 | $ | 23,305 | $ | 21,115 | $ | 69,292 | $ | 67,214 | ||||||||||||
GAAP interest income and other, net | $ | 1,558 | $ | 405 | $ | 1,108 | $ | 2,825 | $ | 1,921 | ||||||||||||
Gain from divestiture | (104 | ) | — | — | (104 | ) | — | |||||||||||||||
(Gain) loss on deferred compensation plan securities | (500 | ) | 245 | (627 | ) | (735 | ) | (1,145 | ) | |||||||||||||
Non-GAAP interest income and other, net | $ | 954 | $ | 650 | $ | 481 | $ | 1,986 | $ | 776 | ||||||||||||
GAAP provision for income taxes - continuing operations | $ | 91 | $ | 498 | $ | 543 | $ | 840 | $ | 661 | ||||||||||||
Tax effects of Non-GAAP adjustments | 1,521 | 826 | 1,402 | 3,206 | 3,058 | |||||||||||||||||
Non-GAAP provision for income taxes - continuing operations | $ | 1,612 | $ | 1,324 | $ | 1,945 | $ | 4,046 | $ | 3,719 | ||||||||||||
(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) | |||||||||
Dec. 28, | Mar. 30, | ||||||||
(In thousands) | 2014 | 2014 | |||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 127,787 | $ | 91,211 | |||||
Short-term investments | 383,566 | 362,604 | |||||||
Accounts receivable, net | 76,294 | 68,904 | |||||||
Inventories | 40,945 | 49,622 | |||||||
Prepaid and other current assets | 15,203 | 13,034 | |||||||
Total current assets | 643,795 | 585,375 | |||||||
Property, plant and equipment, net | 64,744 | 69,827 | |||||||
Goodwill | 135,644 | 135,644 | |||||||
Acquisition-related intangibles | 6,535 | 18,741 | |||||||
Other assets | 26,556 | 21,373 | |||||||
TOTAL ASSETS | $ | 877,274 | $ | 830,960 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 26,043 | $ | 25,442 | |||||
Accrued compensation and related expenses | 37,949 | 24,343 | |||||||
Deferred income on shipments to distributors | 15,244 | 14,006 | |||||||
Deferred taxes liabilities | 1,396 | 1,346 | |||||||
Other accrued liabilities | 22,385 | 11,525 | |||||||
Total current liabilities | 103,017 | 76,662 | |||||||
Deferred tax liabilities | 1,494 | 1,494 | |||||||
Long term income taxes payable | 353 | 266 | |||||||
Other long term obligations | 18,469 | 18,683 | |||||||
Total liabilities | 123,333 | 97,105 | |||||||
Stockholders' equity | 753,941 | 733,855 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 877,274 | $ | 830,960 |