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 October 26, 2015 |
Dated: | October 26, 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 October 26, 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 |
• | BAE Systems and IDT Launch New Space-Grade Chip to Speed Data Movement in Space |
• | SMART Modular Selects IDT as Preferred Partner for DDR4 NVDIMM Technology |
• | New VersaClock 6 Programmable Clock Generator Achieves Best Performance to Date for IDT’s Award-Winning VersaClock Family |
• | IDT and Altera Simplify SyncE Compliance for Ethernet Node Designs |
• | IDT Introduces New RF Voltage Variable Attenuators Delivering up to 1,000X Improvement in Linearity Over GaAs Products |
• | IDT expands its RF product portfolio with two low-loss, high-isolation switches |
• | IDT Introduces Ultra-High-Performance Clock Jitter Attenuator/Frequency Synthesizers |
• | IDT Simplifies IEEE 1588 Synchronization with New Hardware and Software Solution |
• | IDT Makes Wireless Power Accessible to the Mass Market |
• | IDT Teams with Samsung to Integrate Wireless Charging |
• | Revenue from continuing operations for the fiscal second quarter of 2016 was $169.5 million, compared with $160.9 million reported last quarter, and $137.1 million reported in the same period one year ago. |
• | GAAP net income from continuing operations for the fiscal second quarter of 2016 was $42.4 million, or $0.28 per diluted share, versus GAAP net income from continuing operations of $38.7 million or $0.25 per diluted share last quarter, and a GAAP net income from continuing operations of $24.2 million or $0.16 per share in the same period one year ago. Fiscal second quarter 2016 GAAP results include $8.6 million in stock-based compensation expense, $1.9 million expense in severance and retention related charges, $0.8 million expense relating to amortization of intangible assets, $0.2 million expense in facility closure costs, and $0.2 million expense in related tax effects. |
• | Non-GAAP net income for the fiscal second quarter of 2016 was $53.9 million or $0.35 per diluted share, compared with non-GAAP net income of $48.2 million or $0.31 per diluted share last quarter, and non-GAAP net income of $31.8 million or $0.20 per diluted share reported in the same period one year ago. |
• | GAAP gross profit from continuing operations for the fiscal second quarter of 2016 was $106.5 million, or 62.9 percent, compared with GAAP gross profit of $99.2 million or 61.7 percent last quarter, and $81.9 million, or 59.7 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal second quarter of 2016 was $107.5 million, or 63.4 percent, compared with non-GAAP gross profit of $100.9 million, or 62.7 percent last quarter, and $83.9 million, or 61.2 percent, reported in the same period one year ago. |
• | GAAP R&D expense for the fiscal second quarter of 2016 was $35.3 million, compared with GAAP R&D expense of $33.8 million last quarter, and $30.7 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal second quarter of 2016 was $31.5 million, compared with non-GAAP R&D expense of $29.7 million last quarter, and $28.2 million in the same period one year ago. |
• | GAAP SG&A expense for the fiscal second quarter of 2016 was $29.2 million, compared with GAAP SG&A expense of $28.1 million last quarter, and $26.8 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal second quarter of 2016 was $23.5 million, compared with non-GAAP SG&A expense of $24.0 million last quarter, and $23.3 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 2016, the Company changed its methodology for reporting non-GAAP taxes to be based on estimated cash tax expense and reserves. The Company forecasts its annual cash tax liability and allocates the tax to each quarter in proportion to earnings for that period. This approach is designed to enhance the ability of investors to understand the impact of the Company's tax expense on its current operations, provide improved modeling accuracy, and substantially reduce fluctuations caused by GAAP to non-GAAP adjustments, which may not reflect actual cash tax expense. Non-GAAP tax amounts for periods prior to March 30, 2015 have not been adjusted to reflect the new methodology. |
• | 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 | Six Months Ended | |||||||||||||||||||||
Sept. 27, | June 28, | Sept. 28, | Sept. 27, | Sept. 28, | ||||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Revenues | $ | 169,498 | $ | 160,907 | $ | 137,093 | $ | 330,405 | $ | 263,395 | ||||||||||||
Cost of revenues | 62,952 | 61,673 | 55,217 | 124,625 | 107,510 | |||||||||||||||||
Gross profit | 106,546 | 99,234 | 81,876 | 205,780 | 155,885 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Research and development | 35,301 | 33,754 | 30,742 | 69,055 | 62,792 | |||||||||||||||||
Selling, general and administrative | 29,227 | 28,143 | 26,795 | 57,370 | 52,254 | |||||||||||||||||
Total operating expenses | 64,528 | 61,897 | 57,537 | 126,425 | 115,046 | |||||||||||||||||
Operating income | 42,018 | 37,337 | 24,339 | 79,355 | 40,839 | |||||||||||||||||
Gain from divestiture | ||||||||||||||||||||||
Other income, net | 1,016 | 1,818 | 405 | 2,834 | 1,267 | |||||||||||||||||
Income from continuing operations before income taxes | 43,034 | 39,155 | 24,744 | 82,189 | 42,106 | |||||||||||||||||
Provision for income taxes | 611 | 435 | 498 | 1,046 | 749 | |||||||||||||||||
Net income from continuing operations | 42,423 | 38,720 | 24,246 | 81,143 | 41,357 | |||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||
Gain from divestiture | — | — | — | — | 16,840 | |||||||||||||||||
Loss from discontinued operations | — | (547 | ) | (9,747 | ) | (547 | ) | (21,900 | ) | |||||||||||||
Provision for income taxes | — | 15 | 57 | 15 | 12 | |||||||||||||||||
Net loss from discontinued operations | — | (562 | ) | (9,804 | ) | (562 | ) | (5,072 | ) | |||||||||||||
Net income | $ | 42,423 | $ | 38,158 | $ | 14,442 | $ | 80,581 | $ | 36,285 | ||||||||||||
Basic net income per share - continuing operations | $ | 0.29 | $ | 0.26 | $ | 0.16 | $ | 0.55 | $ | 0.28 | ||||||||||||
Basic net loss per share - discontinued operations | — | — | (0.06 | ) | — | (0.04 | ) | |||||||||||||||
Basic net income per share | $ | 0.29 | $ | 0.26 | $ | 0.10 | $ | 0.55 | $ | 0.24 | ||||||||||||
Diluted net income per share - continuing operations | $ | 0.28 | $ | 0.25 | $ | 0.16 | $ | 0.53 | $ | 0.27 | ||||||||||||
Diluted net loss per share - discontinued operations | — | — | (0.07 | ) | — | (0.03 | ) | |||||||||||||||
Diluted net income per share | $ | 0.28 | $ | 0.25 | $ | 0.09 | $ | 0.53 | $ | 0.24 | ||||||||||||
Weighted average shares: | ||||||||||||||||||||||
Basic | 147,724 | 148,396 | 148,683 | 148,058 | 148,983 | |||||||||||||||||
Diluted | 152,152 | 153,758 | 153,784 | 152,997 | 153,816 |
INTEGRATED DEVICE TECHNOLOGY, INC. | ||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (a) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||
Sept. 27, | June 28, | Sept. 28, | Sept. 27, | Sept. 28, | ||||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
GAAP net income from continuing operations | $ | 42,423 | $ | 38,720 | $ | 24,246 | $ | 81,143 | $ | 41,357 | ||||||||||||
GAAP diluted net income per share - continuing operations | $ | 0.28 | $ | 0.25 | $ | 0.16 | $ | 0.53 | $ | 0.27 | ||||||||||||
Acquisition related: | ||||||||||||||||||||||
Amortization of acquisition related intangibles | 751 | 832 | 1,676 | 1,583 | 4,225 | |||||||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | 1,894 | 921 | 319 | 2,815 | 845 | |||||||||||||||||
Facility closure costs | 154 | — | 20 | 154 | 67 | |||||||||||||||||
Assets impairment and other | — | 147 | 401 | 147 | 2,703 | |||||||||||||||||
Other: | ||||||||||||||||||||||
Stock-based compensation expense | 8,581 | 7,866 | 5,929 | 16,447 | 10,891 | |||||||||||||||||
Gain from divestiture | (25 | ) | (51 | ) | — | (76 | ) | — | ||||||||||||||
Asset impairment and other | (28 | ) | (325 | ) | — | (353 | ) | — | ||||||||||||||
Compensation expense (benefit) - deferred compensation plan | (817 | ) | 115 | (242 | ) | (702 | ) | 252 | ||||||||||||||
Loss (gain) on deferred compensation plan securities | 827 | (108 | ) | 245 | 719 | (235 | ) | |||||||||||||||
Non-GAAP tax adjustments | 182 | 83 | (826 | ) | 265 | (1,685 | ) | |||||||||||||||
Non-GAAP net income from continuing operations | $ | 53,942 | $ | 48,200 | $ | 31,768 | $ | 102,142 | $ | 58,420 | ||||||||||||
GAAP weighted average shares - diluted | 152,152 | 153,758 | 153,784 | 152,997 | 153,816 | |||||||||||||||||
Non-GAAP adjustment | 2,600 | 1,836 | 2,128 | 2,149 | 2,017 | |||||||||||||||||
Non-GAAP weighted average shares - diluted | 154,752 | 155,594 | 155,912 | 155,146 | 155,833 | |||||||||||||||||
Non-GAAP diluted net income per share - continuing operations | $ | 0.35 | $ | 0.31 | $ | 0.20 | $ | 0.66 | $ | 0.37 | ||||||||||||
GAAP gross profit | $ | 106,546 | $ | 99,234 | $ | 81,876 | $ | 205,780 | $ | 155,885 | ||||||||||||
Acquisition related: | ||||||||||||||||||||||
Amortization of acquisition related intangibles | 617 | 617 | 1,264 | 1,234 | 2,950 | |||||||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | 6 | 182 | 96 | 188 | 119 | |||||||||||||||||
Assets impairment and other | — | 147 | 334 | 147 | 2,269 | |||||||||||||||||
Other: | ||||||||||||||||||||||
Compensation expense (benefit) - deferred compensation plan | (299 | ) | 42 | (70 | ) | (257 | ) | 77 | ||||||||||||||
Stock-based compensation expense | 645 | 682 | 436 | 1,327 | 755 | |||||||||||||||||
Non-GAAP gross profit | $ | 107,515 | $ | 100,904 | $ | 83,936 | $ | 208,419 | $ | 162,055 |
GAAP R&D expenses: | $ | 35,301 | $ | 33,754 | $ | 30,742 | $ | 69,055 | $ | 62,792 | ||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | (681 | ) | (347 | ) | (136 | ) | (1,028 | ) | (376 | ) | ||||||||||||
Facility closure costs | (154 | ) | — | — | (154 | ) | — | |||||||||||||||
Assets impairment and other | 261 | — | (67 | ) | 261 | (434 | ) | |||||||||||||||
Other: | ||||||||||||||||||||||
Compensation benefit (expense) - deferred compensation plan | 319 | (45 | ) | 114 | 274 | (126 | ) | |||||||||||||||
Stock-based compensation expense | (3,543 | ) | (3,632 | ) | (2,464 | ) | (7,175 | ) | (4,985 | ) | ||||||||||||
Non-GAAP R&D expenses | $ | 31,503 | $ | 29,730 | $ | 28,189 | $ | 61,233 | $ | 56,871 | ||||||||||||
GAAP SG&A expenses: | $ | 29,227 | $ | 28,143 | $ | 26,795 | $ | 57,370 | $ | 52,254 | ||||||||||||
Acquisition related: | ||||||||||||||||||||||
Amortization of acquisition related intangibles | (134 | ) | (215 | ) | (412 | ) | (349 | ) | (1,275 | ) | ||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | (1,207 | ) | (392 | ) | (87 | ) | (1,599 | ) | (350 | ) | ||||||||||||
Facility closure costs | — | — | (20 | ) | — | (67 | ) | |||||||||||||||
Assets impairment and other | (233 | ) | — | — | (233 | ) | — | |||||||||||||||
Other: | ||||||||||||||||||||||
Compensation benefit (expense) - deferred compensation plan | 199 | (28 | ) | 58 | 171 | (49 | ) | |||||||||||||||
Stock-based compensation expense | (4,393 | ) | (3,552 | ) | (3,029 | ) | (7,945 | ) | (5,151 | ) | ||||||||||||
Non-GAAP SG&A expenses | $ | 23,459 | $ | 23,956 | $ | 23,305 | $ | 47,415 | $ | 45,362 | ||||||||||||
GAAP interest income and other, net | $ | 1,016 | $ | 1,818 | $ | 405 | $ | 2,834 | $ | 1,267 | ||||||||||||
Gain from divestiture | (25 | ) | (51 | ) | — | (76 | ) | — | ||||||||||||||
Loss (gain) on deferred compensation plan securities | 827 | (108 | ) | 245 | 719 | (235 | ) | |||||||||||||||
Assets impairment and other | — | (325 | ) | — | (325 | ) | — | |||||||||||||||
Non-GAAP interest income and other, net | $ | 1,818 | $ | 1,334 | $ | 650 | $ | 3,152 | $ | 1,032 | ||||||||||||
GAAP provision for income taxes - continuing operations | $ | 611 | $ | 435 | $ | 498 | $ | 1,046 | $ | 749 | ||||||||||||
Non-GAAP tax adjustments | (182 | ) | (83 | ) | 826 | (265 | ) | 1,685 | ||||||||||||||
Non-GAAP provision for income taxes - continuing operations | $ | 429 | $ | 352 | $ | 1,324 | $ | 781 | $ | 2,434 | ||||||||||||
(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) | |||||||||
Sept. 27, | Mar. 29, | ||||||||
(In thousands) | 2015 | 2015 | |||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 91,557 | $ | 116,945 | |||||
Short-term investments | 467,364 | 438,115 | |||||||
Accounts receivable, net | 63,373 | 63,618 | |||||||
Inventories | 43,946 | 45,410 | |||||||
Prepaid and other current assets | 15,095 | 16,041 | |||||||
Total current assets | 681,335 | 680,129 | |||||||
Property, plant and equipment, net | 64,890 | 65,508 | |||||||
Goodwill | 135,644 | 135,644 | |||||||
Acquisition-related intangibles | 12,983 | 5,535 | |||||||
Other assets | 25,487 | 26,843 | |||||||
TOTAL ASSETS | $ | 920,339 | $ | 913,659 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 31,730 | $ | 28,006 | |||||
Accrued compensation and related expenses | 27,492 | 43,649 | |||||||
Deferred income on shipments to distributors | 11,476 | 15,694 | |||||||
Deferred taxes liabilities | 1,629 | 1,401 | |||||||
Other accrued liabilities | 11,305 | 17,582 | |||||||
Total current liabilities | 83,632 | 106,332 | |||||||
Deferred tax liabilities | 1,135 | 1,121 | |||||||
Long term income taxes payable | 226 | 347 | |||||||
Other long term obligations | 19,619 | 17,605 | |||||||
Total liabilities | 104,612 | 125,405 | |||||||
Stockholders' equity | 815,727 | 788,254 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 920,339 | $ | 913,659 |