Q2 FY19 Revenue of $235.5 M
SAN JOSE, Calif., Oct. 29, 2018 — (PRNewswire) — Integrated Device Technology, Inc. (IDT®) (NASDAQ: IDTI) today announced results for the fiscal second quarter 2019, ended September 30, 2018 with revenues of $235.5 million; GAAP EPS of $0.26 and non-GAAP EPS of $0.47.
On September 10, 2018, IDT, a leading supplier of high-performance system-level analog/mixed-signal semiconductors, and Renesas Electronics Corporation ("Renesas", TSE: 6723), a premier supplier of advanced semiconductor solutions, announced that they have signed a definitive agreement under which Renesas will acquire IDT for US$49.00 per share in an all-cash transaction representing an equity value of approximately US$6.7 billion (approximately 733.0 billion yen at an exchange rate of 110 yen to the dollar). The acquisition combines two recognized leaders in embedded processors and analog mixed-signal semiconductors, each with unique strengths in delivering products to improve performance and efficiency in high-performance electronic systems. The boards of directors of both companies have unanimously approved the transaction. On October 22, 2018, the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976 expired; thus satisfying one of the closing conditions for the acquisition. Closing of the transaction is expected to occur in the first half of calendar 2019, following approvals by IDT shareholders and other relevant regulatory authorities.
Due to the pending acquisition by Renesas, IDT management will not be hosting an investor conference call and will not provide forward-looking guidance. Investors are requested to review our IR web site for the quarterly financial highlights and SEC filings for the latest updates on the pending deal.
Recent Business Highlights – Datacenter & Communications Infrastructure
- IDT introduced the industry's first integrated CMOS chipset for 56GB multi-channel applications, ideal for 200G/400G Ethernet Datacom modules. The new IDT chipset addresses the rapid migration from 100G to 400G that mega data centers are undergoing to meeting the continuing rise in cloud computing. The chipset is primarily designed for 200G/400G Short-Reach Ethernet optical transceivers and active optical cables (AOCs) used in the short distance between servers and top-of-rack (TOR) switches. The integrated CMOS chipset combines low power, high-performance requirements and a compact form factor that meets all 200G/400G module application requirements.
- IDT announced the release of its high-bandwidth, low-power single lambda Electro-absorption modulation laser (EML) driver and trans-impedance amplifier (TIA) for 200G/400G datacenter applications. Rapid increases in cloud data traffic is driving the demand for low-cost, high-speed optical interconnects, with low power requirements. The sales of optical components and modules for cloud data centers will increase 67% by 2023, with an average annual growth rate of 20%, according to a 2018 report from LightCounting.
Recent Business Highlights – Auto and Industrial
- IDT announced a strategic partnership with Steradian Semiconductor Pvt. Ltd (Bangalore, India) to deliver ultra-high resolution 4D mmWave imaging RADAR for emerging industrial, security, medical, and autonomous vehicle markets. The SenseVerse IC is a multi-channel high-resolution MIMO RADAR device that operates in the 76-81 GHz frequency band offering superior interference performance and the highest number of channels per device in the industry. With integrated beamforming and support for multi-device aggregation, the SenseVerse IC provides best-in-class angular resolution, range, and power consumption in a very small form factor. IDT's SenseVerse RADAR products are currently sampling at selected customers.
- IDT announced that NEXCOM, a global provider of IoT automation solutions and cloud-enabled services, selected IDT's distributed power management ICs for numerous industrial, factory automation and IoT products, such as industrial PCs, high performance point-of-sales (POS) terminals and IP cameras. IDT's innovative distributed power architecture enables leading system power scalability that allows customers to reuse the same power subsystem design across a diverse range of products.
- IDT is enabling its customers to design and create new products for improving indoor air quality with the introduction of its latest firmware for its ZMOD™ family of integrated gas sensors. The ZMOD4410 integrated gas sensors are a superior solution for manufacturers, as the hardware remains constant while the 'method of operation' – the firmware – can be easily upgraded to provide sensitivity for various gases. The ZMOD4410 gas sensors are an excellent solution for a wide range of indoor air-quality applications including smart thermostats, air purifiers, smart HVAC equipment and other "smart home" devices.
- IDT announced that the IDT® SDAWIR03 sensor connectivity kit for IoT applications is now available on the Amazon® Marketplace. The new kit offers real-time sensor data collection that seamlessly integrates into sensor management services hosted on the Amazon Web Services (AWS) cloud. The kit makes it easier for engineers and software developers to design complex IoT solutions and applications and eliminates the need for specific device expertise. The connectivity kit has been specifically developed for new and active AWS users who are interested in offering Sensing as a Service to their customers. The kit includes a sensor node module with real-time humidity, temperature, and gas flow sensors from which data is being collected. When additional sensor node modules are added, it will automatically connect via a mesh network based on IDT's license-free and royalty-free SensorShare 6LoWPAN protocol.
Recent Business Highlights – Consumer
- IDT announced that its innovative wireless charging solutions are used in the new Samsung Galaxy Note9 smartphone and Galaxy Watch. IDT also announced that its start-of-the-art, high efficiency wireless power technology is at the heart of Samsung's new Duo wireless charger pad, the first capable of fast charging two Samsung smartphones simultaneously. The Duo was recently introduced as part of Samsung's launch of its new Galaxy Note9 smartphone and Galaxy smartwatch, which the Duo can charge simultaneously. The Duo can also charge any other smartphone certified to the Wireless Power Consortium's (WPC) popular Qi® charging protocol.
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 second quarter of 2019 was $235.5 million. This compared with $228.5 million reported last quarter, and $204.4 million reported in the same period one year ago.
- GAAP net income for the fiscal second quarter of 2019 was $35.5 million, or $0.26 per diluted share versus GAAP net income of $30.7 million or $0.23 per diluted share last quarter, and GAAP net income of $18.7 million or $0.14 per diluted share in the same period one year ago. Fiscal second quarter GAAP results include $14.5 million in acquisition-related and restructuring charges, $15.6 million in stock-based compensation, $3.9 million in non-cash interest expense, $0.1 million in certain unrealized foreign exchange gains and $5.9 million in related tax effects.
- Non-GAAP net income for the fiscal second quarter of 2019 was $63.5 million or $0.47 per diluted share, compared with non-GAAP net income of $60.1 million or $0.44 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 second quarter of 2019 was $143.6 million , or 61 percent, compared with GAAP gross profit of $136.6 million or 59.8 percent last quarter, and $116.8 million , or 57.1 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal second quarter of 2019 was $151.2 million , or 64.2 percent, compared with non-GAAP gross profit of $144.8 million , or 63.4 percent last quarter, and $125.5 million , or 61.4 percent, reported in the same period one year ago.
- GAAP R&D expense for the fiscal second quarter of 2019 was $55.5 million , compared with GAAP R&D expense of $52.2 million last quarter, and $48.7 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal second quarter of 2019 was $46.4 million , compared with non-GAAP R&D expense of $44.7 million last quarter, and $41.3 million in the same period one year ago.
- GAAP SG&A expense for the fiscal second quarter of 2019 was $46.8 million , compared with GAAP SG&A expense of $43 million last quarter, and $44.5 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal second quarter of 2019 was $32.7 million , compared with non-GAAP SG&A expense of $32.5 million last quarter, and $31.2 million in the same period one year ago.
