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) |
Emerging growth company o |
Exhibit No. | Description | |
99.1 | Press Release Dated April 30, 2018 |
Dated: | April 30, 2018 | |
INTEGRATED DEVICE TECHNOLOGY, INC. | ||
By: | /S/ BRIAN C. WHITE | |
Brian C. White | ||
Senior Vice President and Chief Financial Officer (duly authorized officer) |
Exhibit No. | Description | |
Press Release Dated April 30, 2018 |
Financial Contact: | Press Contact: | |
Krishna Shankar Head of Investor Relations Phone: (408) 574-6995 E-mail: krishna.shankar@idt.com | Krista Pavlakos IDT Director, Communications Phone: (408) 574-6640 E-mail: krista.pavlakos@idt.com |
• | IDT announced the availability of its first DDR5 Registered Clock Driver (RCD), the IDT® 5RCD0144H RCD, which pairs seamlessly with the IDT® P8900 PMIC to form the first complete chipset for the early evaluation of DDR5 server memory modules. Providing the first chipset capable of comprehensively evaluating interconnect and power delivery at the system and module level allows IDT’s ecosystem partners to get a jumpstart on validation of silicon, hardware and software development efforts. Our platform solution enables DDR5 memory to scale up to twice the maximum speed and effective bandwidth of DDR4 and promises to be the most significant evolution in the memory subsystem in nearly two decades. |
• | At the 2018 Optical Forum Conference (OFC), IDT displayed multiple new analog/mixed signal line-driver, transimpedance amplifier (TIA) and clock-data recovery (CDR) timing devices for next generation 200G/400G intra and inter datacenter applications and 400G/600G metro/long distance telecom applications. |
• | At OFC 2018, IDT introduced the IDT® GX72170 25G linear driver for 5G wireless network fiber backhaul applications. The demand for 25G and 50G fiber-based backhaul transceivers in the next 5 years is expected to have 45% CAGR or more, according to the latest LightCounting report. |
• | IDTI announced that its latest wireless charging transmitter and receiver chipset is used in the Xiaomi Mobile flagship MI MIX 2S smartphone and associated wireless charging pad. The Xiaomi smartphone implements the Qi standard Baseline Power Profile (BPP) with a proprietary operations mode for a faster wireless charging experience supported by IDT. |
• | IDTI announced that its latest wireless charging chipset is being used as the receiver system-on-chip (SoC) in Samsung’s flagship Galaxy S9 and Galaxy S9+ Android smartphones as well as the transmitter application in the bundled charging pad. |
• | IDT announced that its latest wireless charging chipset is used in HMD Global’s new premium smartphone, the Nokia 8 Sirocco, which was launched at Mobile World Congress in Barcelona. Using the IDT wireless charging chipset, the Nokia 8 Sirocco supports the popular Qi wireless charging standard, which allows consumers to quickly and easily charge their smartphones wirelessly without the need for cumbersome cables. |
• | IDT’s Auto and Industrial business segment continues to experience healthy growth and design win momentum. New product releases in sensor signal conditioners, position sensors, and fully integrated sensor platforms are delivering growth and new design wins. These fully integrated sensor platforms include the sensor, sensor signal processing IC, software/algorithm, calibration with high-volume assembly/test capabilities. |
• | Revenue for the full fiscal 2018 was $842.8 million versus $728.2 million for full fiscal 2017. GAAP net loss for fiscal 2018 was $12.1 million or $0.09 per diluted share (including a GAAP charge of $114.2 million for the estimated impacts of the Tax Cuts and Job Act (“TCJA”)) compared with fiscal 2017 GAAP net income of $109.2 million or $0.79 per diluted share. Non-GAAP net income for full fiscal 2018 was $214.4 million or $1.55 per diluted share versus $195.7 million for full fiscal 2017 or $1.40 per diluted share. |
• | Revenue for the fiscal fourth quarter of 2018 was $224.6 million. This compared with $217.1 million reported last quarter, and $175.7 million reported in the same period one year ago. |
• | GAAP net income for the fiscal fourth quarter of 2018 was $20.7 million, or $0.15 per diluted share versus GAAP net loss for the fiscal third quarter of 2018 of $68.2 million, or a loss of $0.51 per diluted share (including a $101.9 million charge for the estimated impacts of TCJA) and GAAP net income of $30.2 million or $0.22 per diluted share in the same period one year ago. Fiscal fourth quarter GAAP results include $15.1 million in restructuring-related charges, |
• | Non-GAAP net income for the fiscal fourth quarter of 2018 was $63.4 million or $0.46 per diluted share compared with non-GAAP net income of $57.6 million or $0.42 per diluted share last quarter, and non-GAAP net income of $48.2 million or $0.35 per diluted share reported in the same period one year ago. |
• | GAAP gross profit for the fiscal fourth quarter of 2018 was $127.1 million, or 56.6 percent, compared with GAAP gross profit of $128.4 million or 59.1 percent last quarter, and $101.7 million, or 57.9 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal fourth quarter of 2018 was $140.5 million, or 62.6 percent, compared with non-GAAP gross profit of $136.6 million, or 62.9 percent last quarter, and $106.1 million, or 60.4 percent, reported in the same period one year ago. |
• | GAAP R&D expense for the fiscal fourth quarter of 2018 was $55.7 million, compared with GAAP R&D expense of $49.8 million last quarter, and $35.5 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal fourth quarter of 2018 was $42.2 million, compared with non-GAAP R&D expense of $42.8 million last quarter, and $31.0 million in the same period one year ago. |
• | GAAP SG&A expense for the fiscal fourth quarter of 2018 was $41.5 million compared with GAAP SG&A expense of $40.7 million last quarter, and $36.2 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal fourth quarter of 2018 was $30.9 million, compared with non-GAAP SG&A expense of $31.1 million last quarter, and $27.2 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 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 and amortization of certain assets no longer in use or related to discontinued product lines. |
• | 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. |
• | Unrealized foreign currency gains and losses resulting from remeasurement of certain non-functional currency account balances. |
• | Tax effects of non-GAAP adjustments. Non-GAAP tax calculation is 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. The tax |
• | 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. 1, 2018 | Dec 31, 2017 | Apr. 2, 2017 | Apr. 1, 2018 | Apr. 2, 2017 | ||||||||||||||||
Revenues | $ | 224,578 | $ | 217,075 | $ | 175,698 | $ | 842,764 | $ | 728,243 | ||||||||||
Cost of revenues | 97,478 | 88,690 | 74,026 | 360,479 | 307,605 | |||||||||||||||
Gross profit | 127,100 | 128,385 | 101,672 | 482,285 | 420,638 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 55,694 | 49,836 | 35,533 | 202,721 | 165,104 | |||||||||||||||
Selling, general and administrative | 41,532 | 40,689 | 36,225 | 168,648 | 145,193 | |||||||||||||||
Total operating expenses | 97,226 | 90,525 | 71,758 | 371,369 | 310,297 | |||||||||||||||
Operating income | 29,874 | 37,860 | 29,914 | 110,916 | 110,341 | |||||||||||||||
Interest and other expense, net | (4,875 | ) | (5,068 | ) | (2,153 | ) | (18,744 | ) | (11,056 | ) | ||||||||||
Income from continuing operations before income taxes | 24,999 | 32,792 | 27,761 | 92,172 | 99,285 | |||||||||||||||
Benefit from (provision for) income taxes | (4,288 | ) | (101,033 | ) | 2,448 | (104,308 | ) | 9,899 | ||||||||||||
Net income (loss) from continuing operations | 20,711 | (68,241 | ) | 30,209 | (12,136 | ) | 109,184 | |||||||||||||
Discontinued operations: | ||||||||||||||||||||
Gain from divestiture | — | — | — | — | 1,385 | |||||||||||||||
Provision for income taxes | — | — | — | — | 87 | |||||||||||||||
Net income from discontinued operations | — | — | — | — | 1,298 | |||||||||||||||
Net income (loss) | $ | 20,711 | $ | (68,241 | ) | $ | 30,209 | $ | (12,136 | ) | $ | 110,482 | ||||||||
Basic net income (loss) per share - continuing operations | $ | 0.16 | $ | (0.51 | ) | $ | 0.23 | $ | (0.09 | ) | $ | 0.82 | ||||||||
Basic net income per share - discontinued operations | — | — | — | — | 0.01 | |||||||||||||||
Basic net income (loss) per share | $ | 0.16 | $ | (0.51 | ) | $ | 0.23 | $ | (0.09 | ) | $ | 0.83 | ||||||||
Diluted net income (loss) per share - continuing operations | $ | 0.15 | $ | (0.51 | ) | $ | 0.22 | $ | (0.09 | ) | $ | 0.79 | ||||||||
Diluted net income per share - discontinued operations | — | — | — | — | 0.01 | |||||||||||||||
Diluted net income (loss) per share | $ | 0.15 | $ | (0.51 | ) | $ | 0.22 | $ | (0.09 | ) | $ | 0.80 | ||||||||
Weighted average shares: | ||||||||||||||||||||
Basic | 131,341 | 132,689 | 133,309 | 132,651 | 133,817 | |||||||||||||||
Diluted | 135,016 | 132,689 | 136,903 | 132,651 | 137,440 |
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. 1, 2018 | Dec 31, 2017 | Apr. 2, 2017 | Apr. 1, 2018 | Apr. 2, 2017 | |||||||||||||||
GAAP net income (loss) from continuing operations | $ | 20,711 | $ | (68,241 | ) | $ | 30,209 | $ | (12,136 | ) | $ | 109,184 | |||||||
GAAP diluted net income (loss) per share - continuing operations | $ | 0.15 | $ | (0.51 | ) | $ | 0.22 | $ | (0.09 | ) | $ | 0.79 | |||||||
Acquisition-related: | |||||||||||||||||||
Amortization of acquisition-related intangibles | 9,326 | 9,287 | 4,782 | 36,452 | 21,360 | ||||||||||||||
Acquisition-related costs | — | — | 2,223 | 2,225 | 2,295 | ||||||||||||||
Amortization of fair market value adjustment to inventory | 753 | 1,178 | 407 | 8,023 | 4,079 | ||||||||||||||
Restructuring-related: | |||||||||||||||||||
Severance costs (benefit) | 4,953 | 378 | (387 | ) | 7,549 | 16,139 | |||||||||||||
Facility closure costs | 299 | — | — | 2,913 | 197 | ||||||||||||||
Assets impairment and other | 9,862 | — | 156 | 12,744 | 1,026 | ||||||||||||||
Other: | |||||||||||||||||||
Stock-based compensation expense | 12,436 | 13,578 | 10,266 | 50,784 | 39,874 | ||||||||||||||
Non-cash interest expense | 3,792 | 3,744 | 3,393 | 15,123 | 13,329 | ||||||||||||||
Asset impairment and other | (184 | ) | — | — | (184 | ) | (652 | ) | |||||||||||
Loss from divestiture | — | — | — | — | 710 | ||||||||||||||
Certain unrealized foreign exchange gain | (794 | ) | (360 | ) | — | (3,583 | ) | — | |||||||||||
Compensation expense (benefit) - deferred compensation plan | (128 | ) | 525 | 486 | 1,278 | 1,586 | |||||||||||||
Loss (gain) on deferred compensation plan securities | 158 | (518 | ) | (474 | ) | (1,163 | ) | (1,532 | ) | ||||||||||
Non-GAAP tax adjustments | 2,183 | 98,003 | (2,942 | ) | 94,327 | (11,862 | ) | ||||||||||||
Non-GAAP net income from continuing operations | $ | 63,367 | $ | 57,574 | $ | 48,119 | $ | 214,352 | $ | 195,733 | |||||||||
GAAP weighted average shares - diluted | 135,016 | 132,689 | 136,903 | 132,651 | 137,440 | ||||||||||||||
Non-GAAP adjustment | 1,773 | 5,714 | 1,596 | 5,675 | 1,976 | ||||||||||||||
Non-GAAP weighted average shares - diluted | 136,789 | 138,403 | 138,499 | 138,326 | 139,416 | ||||||||||||||
Non-GAAP diluted net income per share - continuing operations | $ | 0.46 | $ | 0.42 | $ | 0.35 | $ | 1.55 | $ | 1.40 | |||||||||
GAAP gross profit | $ | 127,100 | $ | 128,385 | $ | 101,672 | $ | 482,285 | $ | 420,638 | |||||||||
Acquisition-related: | |||||||||||||||||||
Amortization of acquisition-related intangibles | 6,264 | 6,127 | 3,116 | 23,895 | 12,817 | ||||||||||||||
Amortization of fair market value adjustment to inventory | 753 | 1,178 | 407 | 8,023 | 4,079 | ||||||||||||||
Restructuring-related: | |||||||||||||||||||
Severance costs (benefit) | 164 | — | (36 | ) | 390 | 2,505 | |||||||||||||
Assets impairment and other | 5,460 | — | 156 | 5,460 | 492 | ||||||||||||||
Other: | |||||||||||||||||||
Compensation expense (benefit) - deferred compensation plan | (29 | ) | 123 | 114 | 301 | 517 | |||||||||||||
Stock-based compensation expense | 830 | 814 | 660 | 3,040 | 2,936 | ||||||||||||||
Non-GAAP gross profit | $ | 140,542 | $ | 136,627 | $ | 106,089 | $ | 523,394 | $ | 443,984 | |||||||||
GAAP R&D expenses: | $ | 55,694 | $ | 49,836 | $ | 35,533 | $ | 202,721 | $ | 165,104 | |||||||||
Restructuring-related: | |||||||||||||||||||
Severance benefit (costs) | (3,733 | ) | 18 | (44 | ) | (4,078 | ) | (10,531 | ) | ||||||||||
Facility closure costs | — | — | — | — | (147 | ) | |||||||||||||
Assets impairment and other | (4,402 | ) | — | — | (7,202 | ) | (106 | ) | |||||||||||
Other: | |||||||||||||||||||
Compensation benefit (expense) - deferred compensation plan | 66 | (268 | ) | (248 | ) | (651 | ) | (677 | ) | ||||||||||
Stock-based compensation expense | (5,390 | ) | (6,816 | ) | (4,226 | ) | (24,263 | ) | (16,067 | ) | |||||||||
Non-GAAP R&D expenses | $ | 42,235 | $ | 42,770 | $ | 31,015 | $ | 166,527 | $ | 137,576 | |||||||||
GAAP SG&A expenses: | $ | 41,532 | $ | 40,689 | $ | 36,225 | $ | 168,648 | $ | 145,193 | |||||||||
Acquisition-related: | |||||||||||||||||||
Amortization of acquisition-related intangibles | (3,062 | ) | (3,160 | ) | (1,666 | ) | (12,557 | ) | (8,543 | ) | |||||||||
Acquisition-related costs | — | — | (2,223 | ) | (2,225 | ) | (2,295 | ) | |||||||||||
Restructuring-related: | |||||||||||||||||||
Severance benefit (costs) | (1,056 | ) | (396 | ) | 395 | (3,081 | ) | (3,103 | ) | ||||||||||
Facility closure costs | (299 | ) | — | — | (2,913 | ) | (50 | ) | |||||||||||
Assets impairment and other | — | — | — | (82 | ) | (428 | ) | ||||||||||||
Other: | |||||||||||||||||||
Compensation benefit (expense) - deferred compensation plan | 33 | (134 | ) | (124 | ) | (326 | ) | (392 | ) | ||||||||||
Stock-based compensation expense | (6,216 | ) | (5,948 | ) | (5,380 | ) | (23,481 | ) | (20,871 | ) | |||||||||
Non-GAAP SG&A expenses | $ | 30,932 | $ | 31,051 | $ | 27,227 | $ | 123,983 | $ | 109,511 | |||||||||
GAAP interest and other expense, net | $ | (4,875 | ) | $ | (5,068 | ) | $ | (2,153 | ) | $ | (18,744 | ) | $ | (11,056 | ) | ||||
Non-cash interest expense | 3,792 | 3,744 | 3,393 | 15,123 | 13,329 | ||||||||||||||
Assets impairment and other | (184 | ) | — | — | (184 | ) | (652 | ) | |||||||||||
Loss from divestiture | — | — | — | — | 710 | ||||||||||||||
Loss (gain) on deferred compensation plan securities | 158 | (518 | ) | (474 | ) | (1,163 | ) | (1,532 | ) | ||||||||||
Certain unrealized foreign exchange gain | (794 | ) | (360 | ) | — | (3,583 | ) | — | |||||||||||
Non-GAAP interest and other income (expense), net | $ | (1,903 | ) | $ | (2,202 | ) | $ | 766 | $ | (8,551 | ) | $ | 799 | ||||||
GAAP benefit from (provision for) income taxes - continuing operations | $ | (4,288 | ) | $ | (101,033 | ) | $ | 2,448 | $ | (104,308 | ) | $ | 9,899 | ||||||
Non-GAAP tax adjustments | (2,183 | ) | (98,003 | ) | 2,942 | (94,327 | ) | 11,862 | |||||||||||
Non-GAAP provision for income taxes - continuing operations | $ | (2,105 | ) | $ | (3,030 | ) | $ | (494 | ) | $ | (9,981 | ) | $ | (1,963 | ) | ||||
(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.1, | Apr. 2, | ||||||||
(In thousands) | 2018 | 2017 | |||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 136,873 | $ | 214,554 | |||||
Short-term investments | 222,026 | 191,492 | |||||||
Accounts receivable, net | 108,779 | 89,312 | |||||||
Inventories | 68,702 | 52,288 | |||||||
Prepayments and other current assets | 12,734 | 13,054 | |||||||
Total current assets | 549,114 | 560,700 | |||||||
Property, plant and equipment, net | 86,845 | 80,961 | |||||||
Goodwill | 420,117 | 306,925 | |||||||
Intangible assets, net | 180,781 | 108,818 | |||||||
Deferred tax assets | 11,764 | 85,831 | |||||||
Other assets | 61,910 | 40,399 | |||||||
TOTAL ASSETS | $ | 1,310,531 | $ | 1,183,634 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 41,070 | $ | 42,020 | |||||
Accrued compensation and related expenses | 44,002 | 26,624 | |||||||
Deferred income on shipments to distributors | — | 1,985 | |||||||
Current portion of bank loan | 2,000 | — | |||||||
Other accrued liabilities | 26,524 | 20,205 | |||||||
Total current liabilities | 113,596 | 90,834 | |||||||
Deferred tax liabilities | 10,221 | 13,835 | |||||||
Long-term income tax payable | 25,034 | 867 | |||||||
Convertible notes | 299,551 | 285,541 | |||||||
Long-term bank loan, net | 191,073 | — | |||||||
Other long-term liabilities | 25,684 | 18,894 | |||||||
Total liabilities | 665,159 | 409,971 | |||||||
Stockholders' equity | 645,372 | 773,663 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,310,531 | $ | 1,183,634 |