- Revenue for the fiscal third quarter of 2019 was $240.6 million. This compared with $235.5 million reported last quarter, and $217.1 million reported in the same period one year ago.
- GAAP net income for the fiscal third quarter of 2019 was $21.6 million, or $0.16 per diluted share versus GAAP net income of $35.5 million or $0.26 per diluted share last quarter, and GAAP net loss of $68.2 million or loss of $0.51 per diluted share in the same period one year ago. The year ago period included a one-time GAAP provision of $101.9 million for estimated impacts of the Tax Cuts and Jobs Act ("TCJA"), which was enacted on December 22, 2017. Fiscal third quarter GAAP results include $13.9 million in acquisition-related charges, $37.5 million in stock-based compensation, $3.9 million in non-cash interest expense, $0.8 million in investment impairment loss, $2.0 million loss on available-for-sale securities, $0.4 million in unrealized foreign exchange loss and $11.9 million in related tax effects.
- Non-GAAP net income for the fiscal third quarter of 2019 was $68.3 million or $0.50 per diluted share, compared with non-GAAP net income of $63.5 million or $0.47 per diluted share last quarter, and non-GAAP net income of $57.6 million or $0.42 per diluted share reported in the same period one year ago.
- GAAP gross profit for the fiscal third quarter of 2019 was $149.3 million, or 62 percent, compared with GAAP gross profit of $143.6 million or 61 percent last quarter, and $128.4 million, or 59.1 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal third quarter of 2019 was $156.0 million, or 64.8 percent, compared with non-GAAP gross profit of $151.2 million, or 64.2 percent last quarter, and $136.6 million, or 62.9 percent, reported in the same period one year ago.
- GAAP R&D expense for the fiscal third quarter of 2019 was $62.5 million, compared with GAAP R&D expense of $55.5 million last quarter, and $49.8 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal third quarter of 2019 was $45.9 million, compared with non-GAAP R&D expense of $46.4 million last quarter, and $42.8 million in the same period one year ago.
- GAAP SG&A expense for the fiscal third quarter of 2019 was $58.6 million, compared with GAAP SG&A expense of $46.8 million last quarter, and $40.7 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal third quarter of 2019 was $32.7 million, compared with non-GAAP SG&A expense of $32.7 million last quarter, and $31.1 million in the same period one year ago.
About IDT
Integrated Device Technology, Inc. develops system-level solutions that optimize its customers' applications. IDT's market-leading products in RF, timing, wireless power transfer, serial switching, interfaces and sensing solutions are among the company's broad array of complete mixed-signal solutions for the communications, computing, consumer, automotive and industrial segments. Headquartered in San Jose, Calif., IDT has design, manufacturing, sales facilities and distribution partners throughout the world. IDT stock is traded on the NASDAQ Global Select Stock Market® under the symbol "IDTI." Additional information about IDT is accessible at
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Forward Looking Statements
Investors are cautioned that forward-looking statements in this release, including but not limited to statements regarding demand for Company products, anticipated trends in Company sales, expenses and profits, involve a number of risks and uncertainties that could cause actual results to differ materially from current expectations. Risks include, but are not limited to, global business and economic conditions, fluctuations in product demand, manufacturing capacity and costs, inventory management, competition, pricing, patent and other intellectual property rights of third parties, timely development and introduction of new products and manufacturing processes, dependence on one or more customers for a significant portion of sales, successful integration of acquired businesses and technology, availability of capital, cash flow and other risk factors detailed in the Company's Securities and Exchange Commission filings. The Company urges investors to review in detail the risks and uncertainties in the Company's Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the fiscal year ended April 1, 2018. All forward-looking statements are made as of the date of this release and the Company disclaims any duty to update such statements.
Non-GAAP Reporting
To supplement its consolidated financial results presented in accordance with GAAP, IDT uses non-GAAP financial measures, which are adjusted from the most directly comparable GAAP financial measures to exclude certain items, as described in detail below. Management believes that these non-GAAP financial measures reflect an additional and useful way of viewing aspects of the Company's operations that, when viewed in conjunction with IDT's GAAP results, provide a more comprehensive understanding of the various factors and trends affecting the Company's business and operations. It should also be noted that IDT's non-GAAP information may be different from the non-GAAP information provided by other companies. Non-GAAP financial measures used by IDT include:
- Cost of revenues;
- Gross profit;
- Research and development expenses;
- Selling, general and administrative expenses;
- Interest and other income (expense);
- Benefit from (provision for) income taxes;
- Operating income
- Net income (loss);
- Diluted net income (loss) per share; and
- Weighted average shares outstanding - diluted
The Company presents non-GAAP financial measures because the investor community uses non-GAAP results in its analysis and comparison of historical results and projections of the Company's future operating results. These non-GAAP results exclude acquisition-related expense, restructuring and divestiture related costs (gains), share-based compensation expense, and certain other expenses and benefits. Management uses these non-GAAP measures to manage and assess the profitability of the business. These non-GAAP results are also consistent with the way management internally analyzes IDT's financial results.
There are limitations in using non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP financial measures. The non-GAAP financial measures supplement, and should be viewed in conjunction with, GAAP financial measures. Investors should review the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the accompanying press release.
As presented in the "Reconciliation of GAAP to Non-GAAP" tables in the accompanying press release, each of the non-GAAP financial measures excludes one or more of the following items:
Acquisition-related. Acquisition-related charges are not factored into management's evaluation of potential acquisitions or IDT's performance after completion of acquisitions, because they are not related to the Company's core operating performance. Adjustments of these items provide investors with a basis to compare IDT's performance to other companies without the variability caused by purchase accounting. Acquisition-related expenses primarily include:
