IDT Reports Q2 Fiscal Year 2014 Financial Results
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INTEGRATED DEVICE TECHNOLOGY, INC.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited)
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(In thousands, except per share data)
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Three Months Ended
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Six Months Ended
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Sept. 29,
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June 30,
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Sept. 30,
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Sept. 29,
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Sept. 30,
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2013
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2013
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2012
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2013
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2012
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Revenues
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$
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124,649
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$
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117,982
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$
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133,401
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$
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242,631
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$
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263,562
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Cost of revenues
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53,800
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51,809
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58,774
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105,609
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116,422
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Gross profit
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70,849
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66,173
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74,627
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137,022
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147,140
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Operating expenses:
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Research and development
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42,216
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40,849
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42,387
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83,065
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83,931
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Selling, general and administrative
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28,045
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27,843
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32,750
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55,888
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69,162
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Total operating expenses
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70,261
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68,692
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75,137
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138,953
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153,093
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Operating income (loss)
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588
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(2,519
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)
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(510
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)
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(1,931
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)
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(5,953
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)
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Gain from divestiture
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82,349
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-
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-
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82,349
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-
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Other income (expense), net
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756
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57
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(206
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)
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813
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1,794
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Income (loss) from continuing operations before income taxes
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83,693
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(2,462
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)
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(716
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)
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81,231
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(4,159
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)
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Provision (benefit) for income taxes
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42
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(198
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)
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(33
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)
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(156
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)
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(4,019
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)
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Net income (loss) from continuing operations
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83,651
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(2,264
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)
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(683
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)
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81,387
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(140
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)
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Discontinued operations:
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Gain from divestiture
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-
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-
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886
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-
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886
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Loss from discontinued operations
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-
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-
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(273
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-
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(5,131
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Provision for income taxes
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-
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-
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3
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-
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3
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Net income (loss) from discontinued operations
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-
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-
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610
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-
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(4,248
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)
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Net income (loss)
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$
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83,651
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$
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(2,264
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)
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$
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(73
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)
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$
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81,387
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$
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(4,388
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)
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Basic net income (loss) per share continuing operations
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$
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0.56
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$
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(0.02
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$
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-
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$
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0.55
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$
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-
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Basic net income (loss) per share discontinued operations
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-
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-
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-
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-
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(0.03
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Basic net income (loss) per share
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$
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0.56
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$
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(0.02
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$
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-
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$
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0.55
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$
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(0.03
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Diluted net income (loss) per share continuing operations
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$
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0.54
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$
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(0.02
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$
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-
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$
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0.54
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$
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-
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Diluted net income (loss) per share discontinued operations
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-
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-
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-
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-
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(0.03
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)
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Diluted net income (loss) per share
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$
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0.54
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$
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(0.02
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)
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$
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-
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$
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0.54
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$
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(0.03
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Weighted average shares:
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Basic
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149,814
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147,056
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143,519
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148,157
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143,055
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Diluted
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153,497
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147,056
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143,519
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151,630
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143,055
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INTEGRATED DEVICE TECHNOLOGY, INC.
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RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (a)
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(Unaudited)
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(In thousands, except per share data)
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Three Months Ended
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Six Months Ended
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Sept. 29,
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June 30,
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Sept. 30,
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Sept. 29,
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Sept. 30,
|
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2013
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2013
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2012
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2013
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2012
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GAAP net income (loss) from continuing operations
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$
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83,651
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$
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(2,264
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)
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$
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(683
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)
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$
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81,387
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$
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(140
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)
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GAAP diluted net income (loss) per share continuing operations
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$
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0.54
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$
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(0.02
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)
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$
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-
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$
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0.54
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$
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-
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Acquisition related:
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Amortization of acquisition related intangibles
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4,238
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4,321
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5,573
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8,559
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10,464
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Acquisition related legal and consulting fees
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271
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730
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3,630
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1,001
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8,466
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Other acquisition related costs
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-
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-
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1,200
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-
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3,000
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Fair market value adjustment to acquired inventory sold
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-
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-
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|
100
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|
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-
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|
458
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|
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Restructuring related:
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Severance and retention costs
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4,499
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1,174
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2,237
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5,673
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2,952
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Facility closure costs
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13
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|
8
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|
34
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|
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21
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|
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|
47
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Gain on divestiture
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(82,349
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)
|
|
|
-
|
|
|
|
-
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|
|
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(82,349
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)
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|
-
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Assets impairment and other
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4,080
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(36
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)
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(59
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)
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4,044
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(118
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)
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Other:
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Stock-based compensation expense
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2,492
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|
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4,986
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|
|
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3,617
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7,478
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|
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6,739
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Expenses related to stockholder activities
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-
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-
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38
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|
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-
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2,614
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|
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Compensation expense (benefit)—deferred compensation plan
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623
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(100
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)
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|
480
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|
523
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|
344
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Loss (gain) on deferred compensation plan securities
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(619
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)
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|
101
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|
|
(477
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)
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|
|
|
(518
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)
|
|
|
(163
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)
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Life insurance proceeds received
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|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
(2,313
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)
|
|
Tax effects of Non-GAAP adjustments
|
|
|
(1,169
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)
|
|
|
(761
|
)
|
|
|
(3,076
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)
|
|
|
|
|
(1,930
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)
|
|
|
(8,753
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)
|
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Non-GAAP net income from continuing operations
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$
|
15,730
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|
|
$
|
8,159
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|
|
$
|
12,614
|
|
|
|
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$
|
23,889
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|
|
$
|
23,597
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|
|
GAAP weighted average shares - diluted
|
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|
153,497
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|
|
|
147,056
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|
|
|
143,519
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|
|
|
|
|
151,630
|
|
|
|
143,055
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|
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Non-GAAP adjustment
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|
3,065
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|
|
|
5,884
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|
|
|
2,907
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|
|
|
|
|
2,836
|
|
|
|
2,929
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|
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Non-GAAP weighted average shares - diluted
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|
156,562
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|
|
|
152,940
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|
|
|
146,426
|
|
|
|
|
|
154,466
|
|
|
|
145,984
|
|
|
Non-GAAP diluted net income per share continuing operations
|
|
$
|
0.10
|
|
|
$
|
0.05
|
|
|
$
|
0.09
|
|
|
|
|
$
|
0.15
|
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
|
70,849
|
|
|
|
66,173
|
|
|
|
74,627
|
|
|
|
|
|
137,022
|
|
|
|
147,140
|
|
|
Acquisition and divestiture related:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition related intangibles
|
|
|
2,905
|
|
|
|
2,905
|
|
|
|
3,890
|
|
|
|
|
|
5,810
|
|
|
|
7,512
|
|
|
Fair market value adjustment to acquired inventory sold
|
|
|
-
|
|
|
|
-
|
|
|
|
100
|
|
|
|
|
|
-
|
|
|
|
458
|
|
|
Restructuring related:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance and retention costs
|
|
|
86
|
|
|
|
1
|
|
|
|
306
|
|
|
|
|
|
87
|
|
|
|
607
|
|
|
Facility closure costs
|
|
|
4
|
|
|
|
2
|
|
|
|
3
|
|
|
|
|
|
6
|
|
|
|
9
|
|
|
Assets impairment and other
|
|
|
(38
|
)
|
|
|
(36
|
)
|
|
|
(59
|
)
|
|
|
|
|
(74
|
)
|
|
|
(118
|
)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation expense (benefit)—deferred compensation plan
|
|
|
192
|
|
|
|
(31
|
)
|
|
|
120
|
|
|
|
|
|
161
|
|
|
|
86
|
|
|
Stock-based compensation expense
|
|
|
392
|
|
|
|
333
|
|
|
|
252
|
|
|
|
|
|
725
|
|
|
|
555
|
|
|
Non-GAAP gross profit
|
|
|
74,390
|
|
|
|
69,347
|
|
|
|
79,239
|
|
|
|
|
|
143,737
|
|
|
|
156,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP R&D expenses:
|
|
|
42,216
|
|
|
|
40,849
|
|
|
|
42,387
|
|
|
|
|
|
83,065
|
|
|
|
83,931
|
|
|
Restructuring related:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance and retention costs
|
|
|
(2,751
|
)
|
|
|
(1,092
|
)
|
|
|
(1,070
|
)
|
|
|
|
|
(3,843
|
)
|
|
|
(1,410
|
)
|
|
Facility closure costs
|
|
|
(5
|
)
|
|
|
(2
|
)
|
|
|
(28
|
)
|
|
|
|
|
(7
|
)
|
|
|
(32
|
)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets impairment & other
|
|
|
(4,118
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
(4,118
|
)
|
|
|
-
|
|
|
Compensation expense (benefit)—deferred compensation plan
|
|
|
(323
|
)
|
|
|
52
|
|
|
|
(290
|
)
|
|
|
|
|
(271
|
)
|
|
|
(208
|
)
|
|
Stock-based compensation expense
|
|
|
(550
|
)
|
|
|
(2,472
|
)
|
|
|
(1,873
|
)
|
|
|
|
|
(3,022
|
)
|
|
|
(3,415
|
)
|
|
Non-GAAP R&D expenses
|
|
|
34,469
|
|
|
|
37,335
|
|
|
|
39,126
|
|
|
|
|
|
71,804
|
|
|
|
78,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP SG&A expenses:
|
|
|
28,045
|
|
|
|
27,843
|
|
|
|
32,750
|
|
|
|
|
|
55,888
|
|
|
|
69,162
|
|
|
Acquisition and divestiture related:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition related intangibles
|
|
|
(1,333
|
)
|
|
|
(1,416
|
)
|
|
|
(1,683
|
)
|
|
|
|
|
(2,749
|
)
|
|
|
(2,952
|
)
|
|
Acquisition related legal and consulting fees
|
|
|
(271
|
)
|
|
|
(730
|
)
|
|
|
(3,630
|
)
|
|
|
|
|
(1,001
|
)
|
|
|
(8,466
|
)
|
|
Other acquisition related costs
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,200
|
)
|
|
|
|
|
-
|
|
|
|
(3,000
|
)
|
|
Restructuring related:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance and retention costs
|
|
|
(1,662
|
)
|
|
|
(81
|
)
|
|
|
(861
|
)
|
|
|
|
|
(1,743
|
)
|
|
|
(935
|
)
|
|
Facility closure costs
|
|
|
(4
|
)
|
|
|
(4
|
)
|
|
|
(3
|
)
|
|
|
|
|
(8
|
)
|
|
|
(6
|
)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation expense (benefit)—deferred compensation plan
|
|
|
(108
|
)
|
|
|
17
|
|
|
|
(70
|
)
|
|
|
|
|
(91
|
)
|
|
|
(50
|
)
|
|
Stock-based compensation expense
|
|
|
(1,550
|
)
|
|
|
(2,181
|
)
|
|
|
(1,492
|
)
|
|
|
|
|
(3,731
|
)
|
|
|
(2,769
|
)
|
|
Expenses related to stockholder activities
|
|
|
-
|
|
|
|
-
|
|
|
|
(38
|
)
|
|
|
|
|
-
|
|
|
|
(2,614
|
)
|
|
Non-GAAP SG&A expenses
|
|
|
23,117
|
|
|
|
23,448
|
|
|
|
23,773
|
|
|
|
|
|
46,565
|
|
|
|
48,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP interest income and other, net
|
|
|
756
|
|
|
|
57
|
|
|
|
(206
|
)
|
|
|
|
|
813
|
|
|
|
1,794
|
|
|
Loss (gain) on deferred compensation plan securities
|
|
|
(619
|
)
|
|
|
101
|
|
|
|
(477
|
)
|
|
|
|
|
(518
|
)
|
|
|
(163
|
)
|
|
Life insurance proceeds received
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
(2,313
|
)
|
|
Non-GAAP interest income and other, net
|
|
|
137
|
|
|
|
158
|
|
|
|
(683
|
)
|
|
|
|
|
295
|
|
|
|
(682
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP provision (benefit) for income taxes continuing operations
|
|
|
42
|
|
|
|
(198
|
)
|
|
|
(33
|
)
|
|
|
|
|
(156
|
)
|
|
|
(4,019
|
)
|
|
Tax effects of Non-GAAP adjustments (7)
|
|
|
1,169
|
|
|
|
761
|
|
|
|
3,076
|
|
|
|
|
|
1,930
|
|
|
|
8,753
|
|
|
Non-GAAP provision for income taxes continuing operations
|
|
|
1,211
|
|
|
|
563
|
|
|
|
3,043
|
|
|
|
|
|
1,774
|
|
|
|
4,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. 29,
|
|
|
March 31,
|
|
(In thousands)
|
|
|
2013
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
109,671
|
|
|
$
|
130,837
|
|
Short-term investments
|
|
|
|
320,237
|
|
|
|
166,333
|
|
Accounts receivable, net
|
|
|
|
71,491
|
|
|
|
62,083
|
|
Inventories
|
|
|
|
57,675
|
|
|
|
56,555
|
|
Prepaid and other current assets
|
|
|
|
15,614
|
|
|
|
24,697
|
|
Total current assets
|
|
|
|
574,688
|
|
|
|
440,505
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
73,470
|
|
|
|
74,988
|
|
Goodwill
|
|
|
|
137,601
|
|
|
|
144,924
|
|
Acquisition-related intangibles
|
|
|
|
40,042
|
|
|
|
48,602
|
|
Other assets
|
|
|
|
18,992
|
|
|
|
19,560
|
|
TOTAL ASSETS
|
|
|
$
|
844,793
|
|
|
$
|
728,579
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
27,928
|
|
|
$
|
23,244
|
|
Accrued compensation and related expenses
|
|
|
|
20,931
|
|
|
|
21,090
|
|
Deferred income on shipments to distributors
|
|
|
|
13,566
|
|
|
|
14,539
|
|
Deferred taxes liabilities
|
|
|
|
997
|
|
|
|
1,000
|
|
Other accrued liabilities
|
|
|
|
14,943
|
|
|
|
14,652
|
|
Total current liabilities
|
|
|
|
78,365
|
|
|
|
74,525
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
|
1,552
|
|
|
|
1,552
|
|
Long term income taxes payable
|
|
|
|
299
|
|
|
|
454
|
|
Other long term obligations
|
|
|
|
20,411
|
|
|
|
22,022
|
|
Total liabilities
|
|
|
|
100,627
|
|
|
|
98,553
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
744,166
|
|
|
|
630,026
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
$
|
844,793
|
|
|
$
|
728,579
|
|
