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 2, 2016 |
Dated: | May 2, 2016 | |
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 2, 2016. |
Suzanne Schmidt IDT Investor Relations Phone: (415) 217-4962 E-mail: suzanne@blueshirtgroup.com | Dean Solov IDT Worldwide Marketing Phone: (408) 284-2608 E-mail: dean.solov@idt.com |
• | New IDT Family of RF Devices Targets Broadband and CATV Markets |
• | IDT Introduces New VersaMixer Family of Highly Flexible RF Mixers, Delivering Superior Features for Communications Systems |
• | Huawei Connects Systems with IDT RapidIO Technology to Achieve Superior Video Quality |
• | IDT and Northeastern University Collaborate on Research to Improve Data Analytics, Caching and Bandwidth in Access Networks |
• | IDT Launches Next-Generation RapidIO Switches for 5G Mobile Network Development and Mobile Edge Computing |
• | IDT and 5G Lab Germany Collaborate on Technology to Enable Network-Connected Autonomous Vehicles |
• | IDT and Prodrive Technologies Partner to Develop 100ns Latency, Energy-Efficient RapidIO Switch Appliance Portfolio |
• | IDT Expands Power Portfolio with New Dual-Phase High-Power Digital Power Controller |
• | IDT Memory Interface Devices Qualified for DDR4 Enterprise DIMMs on Intel Xeon Processor E5-2600 v4 Product Family-Based Systems |
• | Galaxy S7 Equips IDT Technology as part of Wireless Fast Charge |
• | IDT Integrating Wireless Power and Sensor Technology for Highly Programmable, Flexible Devices |
• | IDT Celebrates Leadership Position in Wireless Power with 70 Million Units Shipped |
• | IDT Announces Tri-Mode Receiver Family Supporting Both Magnetic Resonance and Induction Wireless Power Standards |
• | IDT Launches Industry’s Highest Efficiency 15 W Wireless Power Transmitter and Receiver Solution |
• | IDT Introduces New Sensor for Detecting UVB and Ambient Light in Mobile Applications |
• | IDT and 5G Lab Germany Collaborate on Technology to Enable Network-Connected Autonomous Vehicles |
• | IDT Introduces Energy-Efficient Sensor Signal Conditioner for Consumer Barometric Pressure and Thermopile Sensors |
• | IDT Introduces High-Sensitivity 2-Channel UVA and UVB Light Sensor Designed to Monitor Environmental Health Risks |
• | Revenue from continuing operations for the fiscal fourth quarter of 2016 was $189.4 million. This compared with $177.6 million reported last quarter, and $158.4 million reported in the same period one year ago. |
• | GAAP net income from continuing operations for the fiscal fourth quarter of 2016 was $81.6 million, or $0.59 per diluted share, versus GAAP net income from continuing operations of $32.5 million or $0.22 per diluted share last quarter, and GAAP net income from continuing operations of $40.4 million or $0.26 per share in the same period one year ago. Fiscal fourth quarter GAAP results include $8.2 million in stock-based compensation, $16.9 million in acquisition and restructuring charges, $3.2 million in non-cash interest expense and $58.4 million in related tax effects. |
• | Non-GAAP net income for the fiscal fourth quarter of 2016 was $51.5 million or $0.36 per diluted share, compared with non-GAAP net income of $52.2 million or $0.35 per diluted share last quarter, and non-GAAP net income of $45.8 million or $0.29 per diluted share reported in the same period one year ago. |
• | GAAP gross profit from continuing operations for the fiscal fourth quarter of 2016 was $108.0 million, or 57.0 percent, compared with GAAP gross profit of $107.9 million or 60.8 percent last quarter, and $98.1 million, or 61.9 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal fourth quarter of 2016 was $117.0 million, or 61.8 percent, compared with non-GAAP gross profit of $111.1 million, or 62.6 percent last quarter, and $99.6 million, or 62.9 percent, reported in the same period one year ago. |
• | GAAP R&D expense for the fiscal fourth quarter of 2016 was $41.0 million, compared with GAAP R&D expense of $38.4 million last quarter, and $32.1 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal fourth quarter of 2016 was $36.2 million, compared with non-GAAP R&D expense of $33.8 million last quarter, and $29.7 million in the same period one year ago. |
• | GAAP SG&A expense for the fiscal fourth quarter of 2016 was $40.3 million, compared with GAAP SG&A expense of $38.9 million last quarter, and $27.1 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal fourth quarter of 2016 was $28.9 million, compared with non-GAAP SG&A expense of $25.1 million last quarter, and $23.8 million in the same period one year ago. |
• | Amortization of acquisition related intangibles, which include acquired intangibles such as purchased technology, 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. |
• | Stock based compensation expense. |
• | Compensation expense (benefit) - deferred compensation, consists of gains and losses on marketable equity securities related to our deferred compensation arrangements. |
• | Non-cash interest expense, consists of amortization of issuance cost and accretion of discount related to the convertible notes. |
• | 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. |
• | 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 | Twelve Months Ended | |||||||||||||||||||||
Apr. 3 | Jan. 3 | Mar. 29 | Apr. 3 | Mar. 29 | ||||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Revenues | $ | 189,361 | $ | 177,610 | $ | 158,350 | $ | 697,376 | $ | 572,905 | ||||||||||||
Cost of revenues | 81,398 | 69,699 | 60,295 | 275,722 | 227,601 | |||||||||||||||||
Gross profit | 107,963 | 107,911 | 98,055 | 421,654 | 345,304 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Research and development | 41,023 | 38,429 | 32,071 | 148,507 | 127,688 | |||||||||||||||||
Selling, general and administrative | 40,287 | 38,851 | 27,050 | 136,508 | 106,469 | |||||||||||||||||
Total operating expenses | 81,310 | 77,280 | 59,121 | 285,015 | 234,157 | |||||||||||||||||
Operating income | 26,653 | 30,631 | 38,934 | 136,639 | 111,147 | |||||||||||||||||
Gain from divestiture | ||||||||||||||||||||||
Other income (expense), net | (3,601 | ) | (2,008 | ) | 1,966 | (2,775 | ) | 4,791 | ||||||||||||||
Income from continuing operations before income taxes | 23,052 | 28,623 | 40,900 | 133,864 | 115,938 | |||||||||||||||||
Provision for (benefit from) income taxes | (58,559 | ) | (3,922 | ) | 517 | (61,435 | ) | 1,357 | ||||||||||||||
Net income from continuing operations | 81,611 | 32,545 | 40,383 | 195,299 | 114,581 | |||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||
Gain from divestiture | — | — | — | — | 16,840 | |||||||||||||||||
Loss from discontinued operations | — | — | (799 | ) | (547 | ) | (37,237 | ) | ||||||||||||||
Provision for income taxes | — | — | 318 | 15 | 275 | |||||||||||||||||
Net loss from discontinued operations | — | — | (1,117 | ) | (562 | ) | (20,672 | ) | ||||||||||||||
Net income | $ | 81,611 | $ | 32,545 | $ | 39,266 | $ | 194,737 | $ | 93,909 | ||||||||||||
Basic net income per share - continuing operations | $ | 0.61 | $ | 0.23 | $ | 0.27 | $ | 1.37 | $ | 0.77 | ||||||||||||
Basic net loss per share - discontinued operations | — | — | (0.01 | ) | — | (0.14 | ) | |||||||||||||||
Basic net income per share | $ | 0.61 | $ | 0.23 | $ | 0.26 | $ | 1.37 | $ | 0.63 | ||||||||||||
Diluted net income per share - continuing operations | $ | 0.59 | $ | 0.22 | $ | 0.26 | $ | 1.32 | $ | 0.74 | ||||||||||||
Diluted net loss per share - discontinued operations | — | — | (0.01 | ) | — | (0.13 | ) | |||||||||||||||
Diluted net income per share | $ | 0.59 | $ | 0.22 | $ | 0.25 | $ | 1.32 | $ | 0.61 | ||||||||||||
Weighted average shares: | ||||||||||||||||||||||
Basic | 134,788 | 140,411 | 148,326 | 142,783 | 148,714 | |||||||||||||||||
Diluted | 139,239 | 145,705 | 154,111 | 147,652 | 153,983 |
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 | |||||||||||||||||||||
Apr. 3 | Jan. 3 | Mar. 29 | Apr. 3 | Mar. 29 | ||||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
GAAP net income from continuing operations | $ | 81,611 | $ | 32,545 | $ | 40,383 | $ | 195,299 | $ | 114,581 | ||||||||||||
GAAP diluted net income per share - continuing operations | $ | 0.59 | $ | 0.22 | $ | 0.26 | $ | 1.32 | $ | 0.74 | ||||||||||||
Acquisition related: | ||||||||||||||||||||||
Amortization of acquisition related intangibles | 9,347 | 2,732 | 1,001 | 13,662 | 6,573 | |||||||||||||||||
Acquisition related fees | 245 | 2,113 | — | 2,591 | (125 | ) | ||||||||||||||||
Acquisition related foreign exchange loss | — | 536 | — | 536 | — | |||||||||||||||||
Amortization of fair market value adjustment to inventory | 4,641 | 890 | — | 5,531 | — | |||||||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | 2,587 | 6,091 | — | 11,493 | 974 | |||||||||||||||||
Facility closure costs | 53 | — | — | 207 | 276 | |||||||||||||||||
Assets impairment and other | — | — | 265 | 147 | 2,968 | |||||||||||||||||
Other: | ||||||||||||||||||||||
Stock-based compensation expense | 8,249 | 9,462 | 5,684 | 34,157 | 22,453 | |||||||||||||||||
Non-cash interest expense | 3,191 | 2,164 | — | 5,355 | — | |||||||||||||||||
Loan prepayment penalty | — | 164 | — | 164 | — | |||||||||||||||||
Gain from divestiture | — | (22 | ) | (168 | ) | (98 | ) | (272 | ) | |||||||||||||
Asset impairment and other | — | — | — | (586 | ) | — | ||||||||||||||||
Compensation expense (benefit) - deferred compensation plan | 157 | 366 | 213 | (179 | ) | 990 | ||||||||||||||||
Loss (gain) on deferred compensation plan securities | (151 | ) | (363 | ) | (205 | ) | 205 | (940 | ) | |||||||||||||
Non-GAAP tax adjustments | (58,388 | ) | (4,506 | ) | (1,391 | ) | (62,629 | ) | (4,596 | ) | ||||||||||||
Non-GAAP net income from continuing operations | $ | 51,542 | $ | 52,172 | $ | 45,782 | $ | 205,855 | $ | 142,882 | ||||||||||||
GAAP weighted average shares - diluted | 139,239 | 145,705 | 154,111 | 147,652 | 153,983 | |||||||||||||||||
Non-GAAP adjustment | 2,100 | 1,920 | 1,558 | 2,206 | 2,014 | |||||||||||||||||
Non-GAAP weighted average shares - diluted | 141,339 | 147,625 | 155,669 | 149,858 | 155,997 | |||||||||||||||||
Non-GAAP diluted net income per share - continuing operations | $ | 0.36 | $ | 0.35 | $ | 0.29 | $ | 1.37 | $ | 0.92 | ||||||||||||
GAAP gross profit | $ | 107,963 | $ | 107,911 | $ | 98,055 | $ | 421,654 | $ | 345,304 | ||||||||||||
Acquisition related: | ||||||||||||||||||||||
Amortization of acquisition related intangibles | 3,355 | 1,521 | 625 | 6,110 | 4,534 | |||||||||||||||||
Amortization of fair market value adjustment to inventory | 4,641 | 890 | — | 5,531 | — | |||||||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | 262 | — | — | 450 | 23 | |||||||||||||||||
Assets impairment and other | — | — | 220 | 147 | 2,489 | |||||||||||||||||
Other: | ||||||||||||||||||||||
Compensation expense (benefit) - deferred compensation plan | 58 | 134 | 78 | (65 | ) | 311 | ||||||||||||||||
Stock-based compensation expense | 715 | 666 | 589 | 2,708 | 1,936 | |||||||||||||||||
Non-GAAP gross profit | $ | 116,994 | $ | 111,122 | $ | 99,567 | $ | 436,535 | $ | 354,597 |
GAAP R&D expenses: | $ | 41,023 | $ | 38,429 | $ | 32,071 | $ | 148,507 | $ | 127,688 | ||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | (1,152 | ) | (66 | ) | — | (2,246 | ) | (467 | ) | |||||||||||||
Facility closure costs | — | — | — | (154 | ) | (209 | ) | |||||||||||||||
Assets impairment and other | — | — | (45 | ) | 261 | (479 | ) | |||||||||||||||
Other: | ||||||||||||||||||||||
Compensation benefit (expense) - deferred compensation plan | (61 | ) | (143 | ) | (83 | ) | 70 | (464 | ) | |||||||||||||
Stock-based compensation expense | (3,660 | ) | (4,433 | ) | (2,266 | ) | (15,268 | ) | (9,813 | ) | ||||||||||||
Non-GAAP R&D expenses | $ | 36,150 | $ | 33,787 | $ | 29,677 | $ | 131,170 | $ | 116,256 | ||||||||||||
GAAP SG&A expenses: | $ | 40,287 | $ | 38,851 | $ | 27,050 | $ | 136,508 | $ | 106,469 | ||||||||||||
Acquisition related: | ||||||||||||||||||||||
Amortization of acquisition related intangibles | (5,992 | ) | (1,211 | ) | (376 | ) | (7,552 | ) | (2,039 | ) | ||||||||||||
Acquisition related fees | (245 | ) | (2,113 | ) | — | (2,358 | ) | 125 | ||||||||||||||
Restructuring related: | ||||||||||||||||||||||
Severance and retention costs | (1,173 | ) | (6,025 | ) | — | (8,797 | ) | (484 | ) | |||||||||||||
Facility closure costs | (53 | ) | — | — | (53 | ) | (67 | ) | ||||||||||||||
Other: | ||||||||||||||||||||||
Compensation expense - deferred compensation plan | (38 | ) | (89 | ) | (52 | ) | (189 | ) | (215 | ) | ||||||||||||
Stock-based compensation expense | (3,874 | ) | (4,363 | ) | (2,829 | ) | (16,182 | ) | (10,704 | ) | ||||||||||||
Non-GAAP SG&A expenses | $ | 28,912 | $ | 25,050 | $ | 23,793 | $ | 101,377 | $ | 93,085 | ||||||||||||
GAAP interest and other income (expense), net | $ | (3,601 | ) | $ | (2,008 | ) | $ | 1,966 | $ | (2,775 | ) | $ | 4,791 | |||||||||
Non-cash interest expense | 3,191 | 2,164 | — | 5,355 | — | |||||||||||||||||
Loan prepayment penalty | — | 164 | — | 164 | — | |||||||||||||||||
Acquisition related foreign exchange loss | — | 536 | — | 536 | — | |||||||||||||||||
Gain from divestiture | — | (22 | ) | (168 | ) | (98 | ) | (272 | ) | |||||||||||||
Loss (gain) on deferred compensation plan securities | (151 | ) | (363 | ) | (205 | ) | 205 | (940 | ) | |||||||||||||
Assets impairment and other | — | — | — | (325 | ) | — | ||||||||||||||||
Non-GAAP income and other income (expense), net | $ | (561 | ) | $ | 471 | $ | 1,593 | $ | 3,062 | $ | 3,579 | |||||||||||
GAAP provision for (benefit from) income taxes - continuing operations | $ | (58,559 | ) | $ | (3,922 | ) | $ | 517 | $ | (61,435 | ) | $ | 1,357 | |||||||||
Non-GAAP tax adjustments | 58,388 | 4,506 | 1,391 | 62,629 | 4,596 | |||||||||||||||||
Non-GAAP provision for (benefit from) income taxes - continuing operations | $ | (171 | ) | $ | 584 | $ | 1,908 | $ | 1,194 | $ | 5,953 | |||||||||||
(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) | |||||||||
Apr. 3 | Mar. 29, | ||||||||
(In thousands) | 2016 | 2015 | |||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 203,231 | $ | 116,945 | |||||
Short-term investments | 151,233 | 438,115 | |||||||
Accounts receivable, net | 74,386 | 63,618 | |||||||
Inventories | 54,243 | 45,410 | |||||||
Prepaid and other current assets | 15,008 | 16,041 | |||||||
Total current assets | 498,101 | 680,129 | |||||||
Property, plant and equipment, net | 73,877 | 65,508 | |||||||
Goodwill | 305,733 | 135,644 | |||||||
Acquisition-related intangibles | 127,761 | 5,535 | |||||||
Other assets | 93,717 | 26,843 | |||||||
TOTAL ASSETS | $ | 1,099,189 | $ | 913,659 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 39,858 | $ | 28,006 | |||||
Accrued compensation and related expenses | 45,269 | 43,649 | |||||||
Deferred income on shipments to distributors | 7,006 | 15,694 | |||||||
Deferred tax liabilities | — | 1,401 | |||||||
Other accrued liabilities | 14,974 | 17,582 | |||||||
Total current liabilities | 107,107 | 106,332 | |||||||
Deferred tax liabilities | 19,712 | 1,121 | |||||||
Long term income taxes payable | 2,190 | 347 | |||||||
Convertible notes | 272,221 | — | |||||||
Other long term obligations | 21,264 | 17,605 | |||||||
Total liabilities | 422,494 | 125,405 | |||||||
Stockholders' equity | 676,695 | 788,254 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,099,189 | $ | 913,659 |