Exhibit 99.1
FOR IMMEDIATE RELEASE
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 REPORTS FISCAL 2018 Q3 FINANCIAL RESULTS
Q3 FY18 Revenue of $217.1 M,
Q3 FY18 GAAP Diluted loss per share of $0.51 including one-time tax effect of new tax laws,
Q3 FY18 Non-GAAP Diluted EPS of $0.42 excluding one-time tax impact
SAN JOSE, Calif., January 29, 2018 - Integrated Device Technology, Inc. (IDT®) (NASDAQ: IDTI) today announced results for the fiscal third quarter 2018, ended December 31, 2017.
“Third quarter fiscal 2018 revenues totaled $217.1 million, six percent higher sequentially, and 23 percent higher than the year ago period. Strength in the quarter was driven primarily by increasing demand for products in our high-performance compute and automotive/industrial end markets, ” said Greg Waters, President and Chief Executive Officer. “We expect product cycles in our consumer end market to kick in during our fiscal fourth quarter, driving total company growth beyond normal seasonality”.
Recent Business Highlights - Auto and Industrial
• | IDT’s Auto and Industrial business continues to expand. New product releases in sensor signal conditioners, position sensors, and custom products are all delivering growth and strong design in traction. |
• | IDT announced a new family of gas sensors that provide better sensitivity, stability, and selectivity improvements over many competing solutions. These qualities are ideal for demanding industrial applications, where low-level gas detection, long service life, and accurate readings are critical for next-generation platforms and proper system operation. |
• | IDT announced the addition of a family of relative humidity (RH) sensor ICs to its fast-growing portfolio of advanced sensor products. IDT's humidity sensors offer high accuracy with the fastest measurement response time of comparable devices currently on the market. |
• | Combining our wireless power and advanced sensor technology capabilities, IDT introduced the SDAWIR0x wireless sensor hub evaluation kit, which wirelessly connects IDT’s high-performance humidity, temperature and flow sensors in the latest industrial IoT, smart home, connected appliances, fluid metering and control and environmental monitoring applications. Up to one hundred of these sensor modules can be connected to a single Wi-Fi hub; or |
thousands in a full mesh network making it ideal for a wide variety of connected devices requiring real-time temperature, humidity and flow data, such as smart thermostats, smart refrigerators, environmental weather stations, pumps and metering equipment and medical infusion pumps and CPAPs*.
Recent Business Highlights - Consumer
• | LG Electronics and IDT have partnered on the world’s first implementation of Qi wireless charging Extended Power Profile (EPP) in a flagship smartphone, the LG V30, which enables safe, wireless fast charging capability. We believe that IDT is well positoned to be a leader in the Qi/EPP platfom with support for 5W to 15W charging, which will be the preferred standard for Automotive Wireless Power adoption. |
• | IDT announced the commencement of production shipments of wireless power products to a major new Japanese smartphone OEM. |
Recent Business Highlights - Communications & Computing
• | IDT introduced an integrated IEEE 1588 timing platform and software for a variety of Cavium System on Chip solutions. We believe that our IEEE 1588 timing platforms and software are well positioned for fast-growing end markets in data centers, high-performance computing, storage, networking, wireless 4G/5G mobile networks, industrial automation applications, and next-generation video production/transmission networks. |
• | IDT announced that Qualcomm Datacenter Technologies, a subsidiary of Qualcomm Technologies, Inc., will use IDT’s second generation DDR4 chipset with the Qualcomm Centriq™ 2400 processor. This chipset includes the IDT 4RCD0229K register, 4DB0226KB data buffer and TSE2004 temperature sensor. |
• | IDT introduced its new 8SLVS1118 buffer, the industry’s first with 18 outputs and the lowest additive jitter in its class. This combination of 18 outputs - two more than its nearest competitors - and best-in-class additive jitter performance make the 8SLVS1118 ideal for current and emerging telecommunication, industrial and medical applications that have critical timing requirements necessitating well-defined and repeatable clock distribution performance. |
The following highlights the Company’s financial performance on both a GAAP and supplemental non-GAAP basis. The Company provides supplemental information regarding its operating performance on a non-GAAP basis that excludes certain gains, losses and charges, or events which occur relatively infrequently and which management considers to be outside our core operating results. Non-GAAP results are not in accordance with GAAP and may not be comparable to non-GAAP information provided by other companies. Non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. A complete reconciliation of GAAP to non-GAAP results is attached to this press release.
• | Revenue for the fiscal third quarter of 2018 was $217.1 million. This compared with $204.4 million reported last quarter, and $176.4 million reported in the same period one year ago. |
• | GAAP net loss for the fiscal third quarter of 2018 was $68.2 million, or a loss of $0.51 per diluted share (including a one-time GAAP provision of $101.9 million for the estimated impacts of the Tax Cuts and Jobs Act (“TCJA”), which was enacted on December 22, 2017, discussed further below) versus GAAP net income of $18.7 million or $0.14 per diluted share last quarter, and GAAP net income from continuing operations of $33.4 million or $0.24 per diluted share in the same period one year ago. Fiscal third quarter GAAP results include $10.8 million in acquisition-related and restructuring charges, $13.6 million in stock-based compensation, $3.7 million in non-cash interest expense, $0.4 |
million in certain unrealized foreign exchange gain and a one-time GAAP provision of $101.9 million for the estimated impacts of the TCJA.
• | The estimated $101.9 million impact of the TCJA includes $10.2 million from the remeasurement of U.S. deferred tax assets and liabilities at lower enacted corporate tax rates and $91.7 million from the tax on deemed repatriation of historical foreign earnings. The net taxes payable (net of tax attributes of approximately $59.1 million) on deemed repatriation of historical foreign earnings is approximately $32.6 million, which will be payable over 8 years starting in the next fiscal year. |
• | Non-GAAP net income for the fiscal third quarter of 2018 was $57.6 million or $0.42 per diluted share, compared with non-GAAP net income of $48.2 million or $0.35 per diluted share last quarter, and non-GAAP net income from continuing operations of $49.0 million or $0.35 per diluted share reported in the same period one year ago. |
• | GAAP gross profit for the fiscal third quarter of 2018 was $128.4 million, or 59.1 percent, compared with GAAP gross profit of $116.8 million or 57.1 percent last quarter, and $104.1 million, or 59.0 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal third quarter of 2018 was $136.6 million, or 62.9 percent, compared with non-GAAP gross profit of $125.5 million, or 61.4 percent last quarter, and $108.7 million, or 61.6 percent, reported in the same period one year ago. |
• | GAAP R&D expense for the fiscal third quarter of 2018 was $49.8 million, compared with GAAP R&D expense of $48.7 million last quarter, and $38.2 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal third quarter of 2018 was $42.8 million, compared with non-GAAP R&D expense of $41.3 million last quarter, and $33.5 million in the same period one year ago. |
• | GAAP SG&A expense for the fiscal third quarter of 2018 was $40.7 million, compared with GAAP SG&A expense of $44.5 million last quarter, and $32.7 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal third quarter of 2018 was $31.1 million, compared with non-GAAP SG&A expense of $31.2 million last quarter, and $25.7 million in the same period one year ago. |
Webcast and Conference Call Information
Investors may listen to the live call at 1:30 p.m. Pacific Time on January 29, 2018 by calling 844-308-4493. The access code is 3787275. Investors may listen to a live or replay webcast of the Company’s quarterly financial conference call at http://ir.idt.com/. The live webcast will begin at 1:30 p.m. Pacific Time on January 29, 2018. The webcast replay will be available after 4:30 p.m. Pacific Time on January 29, 2018 for one week.
IDT’s next regularly scheduled Quiet Period will begin March 19, 2018, during which time IDT representatives will not comment on IDT’s business outlook, financial results or expectations. The Quiet Period will extend until the day when IDT’s fourth quarter fiscal 2018 earnings release is published.
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 www.IDT.com. Follow IDT on Facebook, LinkedIn, Twitter, YouTube and Google+.
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 2, 2017. 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;
Diluted net income 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 (gain), share-based compensation expense, results from discontinued operations, 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:
• | 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. |
Restructuring-related. Restructuring charges primarily relate to changes in IDT’s infrastructure in efforts to reduce costs and expenses (gains) associated with strategic divestitures and restructuring in force actions. Restructuring charges (gains) are excluded from non-GAAP financial measures because they are not considered core operating activities. Although IDT has engaged in various restructuring activities in the past, each has been a discrete event based on a unique set of business objectives. As such, management believes that it is appropriate to exclude restructuring charges (gains) from IDT’s non-GAAP financial measures as it enhances the ability of investors to compare the Company’s period-over-period operating results. Restructuring-related charges (gains) primarily include:
• | 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 of certain assets no longer in use. |
Other adjustments. These items are excluded from non-GAAP financial measures because they are not related to the core operating activities and on-going future operating performance of IDT. Excluding this data allows investors to better compare IDT’s period-over-period performance without such expense, which IDT believes may be useful to the investor community.
Other adjustments primarily include:
• | 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 one-time tax impacts of the TCJA related to non-current liabilities and deferred tax assets are not reflected in the non-GAAP tax provision. |
• | 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. |
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IDT and the IDT logo are trademarks or registered trademarks of Integrated Device Technology, Inc. All other brands, product names and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners.
INTEGRATED DEVICE TECHNOLOGY, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
December 31, 2017 | October 1, 2017 | January 1, 2017 | December 31, 2017 | January 1, 2017 | ||||||||||||||||
Revenues | $ | 217,075 | $ | 204,398 | $ | 176,358 | $ | 618,186 | $ | 552,545 | ||||||||||
Cost of revenues | 88,690 | 87,636 | 72,273 | 263,001 | 233,579 | |||||||||||||||
Gross profit | 128,385 | 116,762 | 104,085 | 355,185 | 318,966 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 49,836 | 48,742 | 38,173 | 147,027 | 129,571 | |||||||||||||||
Selling, general and administrative | 40,689 | 44,485 | 32,737 | 127,116 | 108,968 | |||||||||||||||
Total operating expenses | 90,525 | 93,227 | 70,910 | 274,143 | 238,539 | |||||||||||||||
Operating income | 37,860 | 23,535 | 33,175 | 81,042 | 80,427 | |||||||||||||||
Interest and other expense, net | (5,068 | ) | (4,886 | ) | (3,810 | ) | (13,869 | ) | (8,903 | ) | ||||||||||
Income from continuing operations before income taxes | 32,792 | 18,649 | 29,365 | 67,173 | 71,524 | |||||||||||||||
Benefit from (provision for) income taxes | (101,033 | ) | 31 | 4,072 | (100,020 | ) | 7,451 | |||||||||||||
Net income (loss) from continuing operations | (68,241 | ) | 18,680 | 33,437 | (32,847 | ) | 78,975 | |||||||||||||
Discontinued operations: | ||||||||||||||||||||
Gain from divestiture | — | — | 1,385 | — | 1,385 | |||||||||||||||
Provision for income taxes | — | — | 87 | — | 87 | |||||||||||||||
Net income from discontinued operations: | — | — | 1,298 | — | 1,298 | |||||||||||||||
Net income (loss) | $ | (68,241 | ) | $ | 18,680 | $ | 34,735 | $ | (32,847 | ) | $ | 80,273 | ||||||||
Basic net income (loss) per share - continuing operations | $ | (0.51 | ) | $ | 0.14 | $ | 0.25 | $ | (0.25 | ) | $ | 0.59 | ||||||||
Basic net income per share - discontinued operations | — | — | 0.01 | — | 0.01 | |||||||||||||||
Basic net income (loss) per share | $ | (0.51 | ) | $ | 0.14 | $ | 0.26 | $ | (0.25 | ) | $ | 0.60 | ||||||||
Diluted net income (loss) per share - continuing operations | $ | (0.51 | ) | $ | 0.14 | $ | 0.24 | $ | (0.25 | ) | $ | 0.57 | ||||||||
Diluted net income per share - discontinued operations | — | — | 0.01 | — | 0.01 | |||||||||||||||
Diluted net income (loss) per share | $ | (0.51 | ) | $ | 0.14 | $ | 0.25 | $ | (0.25 | ) | $ | 0.58 | ||||||||
Weighted average shares: | ||||||||||||||||||||
Basic | 132,689 | 133,269 | 133,846 | 133,087 | 133,987 | |||||||||||||||
Diluted | 132,689 | 136,059 | 137,167 | 133,087 | 137,581 | |||||||||||||||
INTEGRATED DEVICE TECHNOLOGY, INC. | ||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (a) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
December 31, 2017 | October 1, 2017 | January 1, 2017 | December 31, 2017 | January 1, 2017 | ||||||||||||||||
GAAP net income (loss) from continuing operation | $ | (68,241 | ) | $ | 18,680 | $ | 33,437 | $ | (32,847 | ) | $ | 78,975 | ||||||||
GAAP diluted net income (loss) per share - continuing operation | $ | (0.51 | ) | $ | 0.14 | $ | 0.24 | $ | (0.25 | ) | $ | 0.57 | ||||||||
Acquisition-related: | ||||||||||||||||||||
Amortization of acquisition-related intangibles | 9,287 | 8,963 | 5,557 | 27,126 | 16,578 | |||||||||||||||
Acquisition-related costs | — | — | — | 2,225 | 72 | |||||||||||||||
Amortization of fair market value adjustment to inventory | 1,178 | 2,011 | 757 | 7,270 | 3,672 | |||||||||||||||
Restructuring-related: | ||||||||||||||||||||
Severance costs (benefit) | 378 | 1,637 | (216 | ) | 2,596 | 16,723 | ||||||||||||||
Facility closure costs | — | 2,542 | — | 2,614 | — | |||||||||||||||
Assets impairment and other | — | 917 | — | 2,882 | 870 | |||||||||||||||
Other: | ||||||||||||||||||||
Stock-based compensation expense | 13,578 | 12,950 | 9,912 | 38,348 | 29,608 | |||||||||||||||
Non-cash interest expense | 3,744 | 3,695 | 3,360 | 11,331 | 9,936 | |||||||||||||||
Asset impairment and other | — | — | — | — | (652 | ) | ||||||||||||||
Loss from divestiture | — | — | 710 | — | 710 | |||||||||||||||
Certain unrealized foreign exchange gain | (360 | ) | (754 | ) | — | (2,789 | ) | — | ||||||||||||
Compensation expense - deferred compensation plan | 525 | 469 | 262 | 1,406 | 1,100 | |||||||||||||||
Gain on deferred compensation plan securities | (518 | ) | (443 | ) | (249 | ) | (1,321 | ) | (1,058 | ) | ||||||||||
Non-GAAP tax adjustments | 98,003 | (2,518 | ) | (4,527 | ) | 92,144 | (8,920 | ) | ||||||||||||
Non-GAAP net income from continuing operation | $ | 57,574 | $ | 48,149 | $ | 49,003 | $ | 150,985 | $ | 147,614 | ||||||||||
GAAP weighted average shares - diluted | 132,689 | 136,059 | 137,167 | 133,087 | 137,581 | |||||||||||||||
Non-GAAP adjustment | 5,714 | 2,780 | 2,006 | 5,787 | 2,168 | |||||||||||||||
Non-GAAP weighted average shares - diluted | 138,403 | 138,839 | 139,173 | 138,874 | 139,749 | |||||||||||||||
Non-GAAP diluted net income per share - continuing operation | $ | 0.42 | $ | 0.35 | $ | 0.35 | $ | 1.09 | $ | 1.06 | ||||||||||
GAAP gross profit | $ | 128,385 | $ | 116,762 | $ | 104,085 | $ | 355,185 | $ | 318,966 | ||||||||||
Acquisition-related: | ||||||||||||||||||||
Amortization of acquisition-related intangibles | 6,127 | 5,822 | 3,178 | 17,631 | 9,701 | |||||||||||||||
Amortization of fair market value adjustment to inventory | 1,178 | 2,011 | 757 | 7,270 | 3,672 | |||||||||||||||
Restructuring-related: | ||||||||||||||||||||
Severance costs (benefit) | — | 30 | (146 | ) | 226 | 2,541 | ||||||||||||||
Assets impairment and other | — | — | — | — | 336 | |||||||||||||||
Other: | ||||||||||||||||||||
Compensation expense - deferred compensation plan | 123 | 110 | 96 | 330 | 403 | |||||||||||||||
Stock-based compensation expense | 814 | 764 | 695 | 2,210 | 2,276 | |||||||||||||||
Non-GAAP gross profit | $ | 136,627 | $ | 125,499 | $ | 108,665 | $ | 382,852 | $ | 337,895 | ||||||||||
GAAP R&D expenses: | $ | 49,836 | $ | 48,742 | $ | 38,173 | $ | 147,027 | $ | 129,571 | ||||||||||
Restructuring-related: | ||||||||||||||||||||
Severance costs | 18 | (318 | ) | (225 | ) | (345 | ) | (10,634 | ) | |||||||||||
Assets impairment and other | — | (835 | ) | — | (2,800 | ) | (106 | ) | ||||||||||||
Other: | ||||||||||||||||||||
Compensation expense - deferred compensation plan | (268 | ) | (239 | ) | (102 | ) | (717 | ) | (429 | ) | ||||||||||
Stock-based compensation expense | (6,816 | ) | (6,094 | ) | (4,342 | ) | (18,873 | ) | (11,841 | ) | ||||||||||
Non-GAAP R&D expenses | $ | 42,770 | $ | 41,256 | $ | 33,504 | $ | 124,292 | $ | 106,561 | ||||||||||
GAAP SG&A expenses: | $ | 40,689 | $ | 44,485 | $ | 32,737 | $ | 127,116 | $ | 108,968 | ||||||||||
Acquisition-related: | ||||||||||||||||||||
Amortization of acquisition-related intangibles | (3,160 | ) | (3,141 | ) | (2,379 | ) | (9,495 | ) | (6,877 | ) | ||||||||||
Acquisition-related fees | — | — | — | (2,225 | ) | (72 | ) | |||||||||||||
Restructuring-related: | ||||||||||||||||||||
Severance costs (benefit) | (396 | ) | (1,289 | ) | 295 | (2,025 | ) | (3,548 | ) | |||||||||||
Facility closure costs | — | (2,542 | ) | — | (2,614 | ) | — | |||||||||||||
Assets impairment and other | — | (82 | ) | — | (82 | ) | (428 | ) | ||||||||||||
Other: | ||||||||||||||||||||
Compensation expense - deferred compensation plan | (134 | ) | (120 | ) | (64 | ) | (359 | ) | (268 | ) | ||||||||||
Stock-based compensation expense | (5,948 | ) | (6,092 | ) | (4,875 | ) | (17,265 | ) | (15,491 | ) | ||||||||||
Non-GAAP SG&A expenses | $ | 31,051 | $ | 31,219 | $ | 25,714 | $ | 93,051 | $ | 82,284 | ||||||||||
GAAP interest and other expense, net | $ | (5,068 | ) | $ | (4,886 | ) | $ | (3,810 | ) | $ | (13,869 | ) | $ | (8,903 | ) | |||||
Non-cash interest expense | 3,744 | 3,695 | 3,360 | 11,331 | 9,936 | |||||||||||||||
Assets impairment and other | — | — | — | — | (652 | ) | ||||||||||||||
Loss from divestiture | — | — | 710 | — | 710 | |||||||||||||||
Gain on deferred compensation plan securities | (518 | ) | (443 | ) | (249 | ) | (1,321 | ) | (1,058 | ) | ||||||||||
Certain unrealized foreign exchange gain | (360 | ) | (754 | ) | — | (2,789 | ) | — | ||||||||||||
Non-GAAP interest and other income (expense), net | $ | (2,202 | ) | $ | (2,388 | ) | $ | 11 | $ | (6,648 | ) | $ | 33 | |||||||
GAAP benefit from (provision for) income taxes - continuing operation | $ | (101,033 | ) | $ | 31 | $ | 4,072 | $ | (100,020 | ) | $ | 7,451 | ||||||||
Non-GAAP tax adjustments | (98,003 | ) | 2,518 | 4,527 | (92,144 | ) | 8,920 | |||||||||||||
Non-GAAP provision for income taxes - continuing operation | $ | (3,030 | ) | $ | (2,487 | ) | $ | (455 | ) | $ | (7,876 | ) | $ | (1,469 | ) | |||||
(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) | |||||||||
December 31, | April 2, | ||||||||
(In thousands) | 2017 | 2017 | |||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 132,800 | $ | 214,554 | |||||
Short-term investments | 264,066 | 191,492 | |||||||
Accounts receivable, net | 109,701 | 89,312 | |||||||
Inventories | 63,892 | 52,288 | |||||||
Prepayments and other current assets | 14,590 | 13,054 | |||||||
Total current assets | 585,049 | 560,700 | |||||||
Property, plant and equipment, net | 86,636 | 80,961 | |||||||
Goodwill | 420,117 | 306,925 | |||||||
Intangible assets, net | 196,977 | 108,818 | |||||||
Deferred tax assets | 18,390 | 85,831 | |||||||
Other assets | 61,668 | 40,399 | |||||||
TOTAL ASSETS | $ | 1,368,837 | $ | 1,183,634 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 41,950 | $ | 42,020 | |||||
Accrued compensation and related expenses | 34,055 | 26,624 | |||||||
Deferred income on shipments to distributors | 3,521 | 1,985 | |||||||
Current portion of bank loan | 2,000 | — | |||||||
Other accrued liabilities | 22,523 | 20,205 | |||||||
Total current liabilities | 104,049 | 90,834 | |||||||
Deferred tax liabilities | 11,046 | 13,835 | |||||||
Long-term income tax payable | 31,812 | 867 | |||||||
Convertible notes | 295,983 | 285,541 | |||||||
Long-term bank loan, net | 191,368 | — | |||||||
Other long-term liabilities | 26,288 | 18,894 | |||||||
Total liabilities | 660,546 | 409,971 | |||||||
Stockholders' equity | 708,291 | 773,663 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,368,837 | $ | 1,183,634 | |||||