Integrated Device Technology Inc (NASDAQ:IDTI) announced results for the fiscal second quarter 2017, ended October 2, 2016.
“Second quarter fiscal 2017 revenue increased by over eight percent as compared with the year ago quarter, and marks our twelfth consecutive quarter of year-over-year revenue growth,” commented Gregory Waters, president and chief executive officer. “We are delivering new growth engines to the already strong IDT franchise, along with operating synergies that support our leadership financial model.”
“We continue to make strong progress on our integration of ZMDI and have a clear line of sight to continued gains in operating results as we move through the fiscal year. Our new design-in funnel is extremely robust, with design-win traction and new technology innovation being delivered across all of our businesses,” concluded Mr. Waters.
Recent Business Highlights – Computing
- IDT and IBM Introduced a high-performance computing solution for 5G and connected car “edge” computing networks that combines its RapidIO technology with IBM’s POWER8-based servers
- Taiwan-based Micro-Star INT’L CO., LTD. (MSI) selected IDT’s distributed-power architecture for two industrial compute boards. IDT’s power management ICs (PMICs) and proprietary distributed power unit (DPU) technology together deliver a solution with unparalleled flexibility and scalability.
- Diablo Technologies selected the IDT® DDR4 LRDIMM chipset as the preferred interface solution for its award-winning Memory1™ 128GB system memory module.
Recent Business Highlights – Communications
- ZTE Corporation, a major international provider of telecommunications, enterprise and consumer technology solutions for the mobile Internet, selected the new IDT® RapidIO 10xN interconnect semiconductors for its next generation of wireless base stations.
- IDT announced its new generation of RapidIO technology is interoperable Xilinx UltraScale™ FPGAs, enabling a key technology for global rollout of 5G and other advanced network systems
Recent Business Highlights – Consumer
- Samsonite selected IDT’s P9038 wireless power transmitter, making IDT the exclusive IC provider of its first generation of wireless charging enabled consumer products.
Recent Business Highlights – Auto and Industrial
- IDT has expanded its automotive capabilities through the TS 16949 certification of a second test and production facility. The company’s longstanding production facility in Penang, Malaysia passed the two-stage certification process for automotive backend manufacturing under the requirements of TS 16949, the International Standard for Automotive Quality Management Systems. The new Penang automotive backend production floor joins the IDT Automotive Center of Excellence of ZMD AG in Dresden, Germany, which has been successfully certified since 2004 as ZMDI, a company IDT acquired in December 2015.
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 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 from continuing operations is attached to this press release.
- Revenue from continuing operations for the fiscal second quarter of 2017 was $184.1 million. This compared with $192.1 million reported last quarter, and $169.5 million reported in the same period one year ago.
- GAAP net income from continuing operations for the fiscal second quarter of 2017 was $24.6 million, or $0.18 per diluted share, versus GAAP net income from continuing operations of $20.9 million or $0.15 per diluted share last quarter, and GAAP net income from continuing operations of $42.4 million or $0.28 per diluted share in the same period one year ago. Fiscal second quarter GAAP results include $9.2 million in stock-based compensation, $10.8 million in acquisition and restructuring charges, $3.3 million in non-cash interest expense, $0.6 million in other income and $0.1 million in related tax effects.
- Non-GAAP net income for the fiscal second quarter of 2017 was $47.4 million or $0.34 per diluted share, compared with non-GAAP net income of $51.2 million or $0.36 per diluted share last quarter, and non-GAAP net income of $53.9 million or $0.35 per diluted share reported in the same period one year ago.
- GAAP gross profit from continuing operations for the fiscal second quarter of 2017 was $106.5 million, or 57.9 percent, compared with GAAP gross profit of $108.3 million or 56.4 percent last quarter, and $106.5 million, or 62.9 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal second quarter of 2017 was $111.4 million, or 60.5 percent, compared with non-GAAP gross profit of $117.9 million, or 61.3 percent last quarter, and $107.5 million, or 63.4 percent, reported in the same period one year ago.
- GAAP R&D expense for the fiscal second quarter of 2017 was $41.8 million, compared with GAAP R&D expense of $49.6 million last quarter, and $35.3 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal second quarter of 2017 was $35.3 million, compared with non-GAAP R&D expense of $37.7 million last quarter, and $31.5 million in the same period one year ago.
- GAAP SG&A expense for the fiscal second quarter of 2017 was $37.4 million, compared with GAAP SG&A expense of $38.8 million last quarter, and $29.2 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal second quarter of 2017 was $28.2 million, compared with non-GAAP SG&A expense of $28.3 million last quarter, and $23.5 million in the same period one year ago. (Original Source)
Shares of IDTI are up nearly 3% to $21.25 in after-hours trading Monday. IDTI has a 1-year high of $29.04 and a 1-year low of $16.22. The stock’s 50-day moving average is $21.44 and its 200-day moving average is $21.02.
On the ratings front, IDTI has been the subject of a number of recent research reports. In a report issued on September 28, Roth Capital analyst Sujeeva De Silva initiated coverage with a Buy rating on IDTI and a price target of $26, which represents a potential upside of 26% from where the stock is currently trading. Separately, on September 16, Needham’s Quinn Bolton reiterated a Buy rating on the stock and has a price target of $25.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Sujeeva De Silva and Quinn Bolton have a yearly average return of 14.1% and 16.8% respectively. Silva has a success rate of 54% and is ranked #163 out of 4178 analysts, while Bolton has a success rate of 67% and is ranked #26.
The street is mostly Bullish on IDTI stock. Out of 6 analysts who cover the stock, 5 suggest a Buy rating and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $24.40, which represents a potential upside of 18% from where the stock is currently trading.
Integrated Device Technology, Inc. designs, develops, manufactures and markets low-power, high-performance mixed signal semiconductor solutions for the advanced communications, computing and consumer industries. It offers communications solutions for customers within the enterprise, data center and wireless markets. The company operates business through two segments: Communications and Computing & Consumer. The Communications segment includes clock and timing solutions, Serial RapidIO switching solutions, Crystal Oscillator replacements, radio frequency, signal path products, flow-control management devices and first in and first out, integrated communications processors, high-speed static random access memory and digital logic and telecommunications products. The Computing & Consumer segment includes clock generation and distribution products, high-performance server memory interfaces, PCI Express switching solutions, signal integrity products, multi-port products, touch controllers, PC audio, power management solutions and video products.