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Integrated Device Technology Releases 3rd Quarter FY 2014 Financial Results

February 6, 2014

Integrated Device Technology, Inc. (IDT), an Analog and Digital Company delivering essential mixed-signal semiconductor solutions, announced results for the fiscal third quarter ended Dec. 29, 2013.

In a release on Feb. 3, IDT said third quarter non-GAAP results include the impact of classifying IDT's high speed data converter business as assets held for sale and discontinued operations. The financial impact of this business has been reclassified out of results from continuing operations. IDT will comply with any works council and/or employee representative obligations that may be applicable in non-U.S. jurisdictions with respect to the contemplated divestiture.

"The third quarter of fiscal 2014 marked a breakthrough in terms of financial performance," said Greg Waters, president and chief executive officer. "While revenue was in line with the guidance we provided last quarter, a favorable product mix contributed to non- GAAP gross margins above expectations at 62.4 percent, which, combined with our continued focus on expense control, drove non- GAAP operating margins and non-GAAP EPS from continuing operations to 22.0 percent and $0.17 per share, respectively."

"Underpinning these financial results was the continued success in our Communications business, particularly with our RapidIO switching business, where we are seeing increasing sales due to the ongoing build-out of 4G/LTE infrastructure in China and beyond," continued Waters. "In addition, we are proud to report that we achieved our stated goal of $1 million in sales of our wireless power products, and we continue to be optimistic about our ability to take share in this exciting new market."

"We have several key opportunities for growth driven by new product ramps in each of our Communications, Computing and Consumer end markets. In parallel, we will continue to take the appropriate actions to create a business structure that drives increasing earnings power as our top line expands. We remain focused on operational leverage, continued leadership in our target markets, and taking share in our core businesses," concluded Waters.

Recent Business Highlights:

-IDT announced the industry's first single-chip 5V Wireless Power Transmitter Solution. This highly-integrated solution enables development of Qi-compliant USB-powered wireless charging bases with 75 percent fewer ICs than competing solutions.

-IDT's dual-mode wireless power receiver was awarded 'The most competitive wireless power product' in the China Electronics Market (CEM) 2013 Editor's Choice Awards. The IDTP9021 is the industry's first dual-mode wireless power receiver IC that provides compatibility with both the Power Matters Alliance (PMA) Specification and Wireless Power Consortium (WPC) "Qi" standard.

-A High-performance Digital Pre-Distortion Demodulator for Wireless Base Stations, further expanding IDT's Industry-leading RF Signal Chain Portfolio. IDT's New Integrated DPD Demodulator Improves System Performance while Reducing Solution Cost, Physical Size, and Power Consumption in Wireless Base Stations.

-IDT RapidIO 20 Gbps Interconnect Provides Breakthrough Performance in Data Center Products based on a New RapidIO Trade Association Specification. IDT Serial RapidIO Switches Provide 100ns Latency, Energy Efficiency, and Multi-processor Scalability for Data Center and Supercomputing Analytics Applications.

-A Low-power LVDS Clock Fanout Buffers Offering 60 percent Power Savings versus competitive offerings. IDT's Latest Differential Fanout Buffer Family Operates at 1.8V with Comparable AC Performance to 3.3V Versions, for High-performance Communication, Computing, and Networking Applications.

-The High-performance Programmable Universal Frequency Translator Makes EDN Hot 100 List. The Industry's Only Single-chip Programmable Solutions Capable of Generating Eight Different Output Frequencies with Less Than 300 Femtoseconds Jitter was Selected for this Honor.

-IDT's High performance differential MEMS oscillators and industry first dual-mode wireless power receiver won the 2013 EDN China Innovation Awards. IDT's 4H-series MEMS Oscillators are the world's first differential MEMS oscillators with only 100 femtosecond (fs) typical phase jitter performance and integrated frequency margining capability.

-Revenue from continuing operations for the fiscal third quarter of 2014 was $124.6 million, compared with $114.3 million reported in the same period one year ago.

-GAAP net income from continuing operations for the fiscal third quarter of 2014 was $17.3 million, or $0.11 per diluted share, versus a GAAP net loss from continuing operations of $42 thousand or a loss of $0.00 per share in the same period one year ago. Fiscal third quarter 2014 GAAP results include a $3.4 million loss relating to the divestiture of the Company's Audio business, $3.6 million in acquisition and restructuring-related charges, $3.2 million in stock- based compensation, $0.1 million in other non-operating gains, and $1.4 million benefit from related tax effects.

-Non-GAAP net income for the fiscal third quarter of 2014 was $25.9 million or $0.17 per diluted share, compared with non-GAAP net income of $9.3 million or $0.06 per diluted share reported in the same period one year ago.

-GAAP gross profit from continuing operations for the fiscal third quarter of 2014 was $74.9 million, or 60.1 percent, compared with GAAP gross profit of $63.1 million, or 55.2 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal third quarter of 2014 was $77.8 million, or 62.4 percent, compared with non-GAAP gross profit of $66.4 million, or 58.1 percent, reported in the same period one year ago.

-GAAP R&D expense for the fiscal third quarter of 2014 was $31.1 million, compared with GAAP R&D expense of $36.7 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal third quarter of 2014 was $29.3 million, compared with non-GAAP R&D of $34.3 million in the same period one year ago.

-GAAP SG&A expense for the fiscal third quarter of 2014 was $23.7 million, compared with GAAP SG&A expense of $25.9 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal third quarter of 2014 was $21.1 million, compared with non-GAAP SG&A expense of $21.6 million in the same period one year ago.

Headquartered in San Jose, Calif., IDT has design, manufacturing, sales facilities and distribution partners throughout the world.

More information:

www.IDT.com

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