Integrated Device Technology Earnings: Beats the Street on Big Profit Rise

Integrated Device Technology, Inc. (NASDAQ:IDTI) reported net income above Wall Street’s expectations for the fourth quarter. Integrated Device Technology, Inc. designs, develops, manufactures and markets a broad range of low-power, high-performance mixed signal semiconductor solutions for the advanced communications, computing and consumer industries.

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Integrated Device Technology Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Integrated Device Technology, Inc. rose to $31.4 million (21 cents/share) vs. $967,000 (1 cent/share) in the same quarter a year earlier. A substantial increase from the year earlier quarter.

Revenue: Rose 6.8% to $147.3 million YoY.

Actual vs. Wall St. Expectations: IDTI reported adjusted net income of of 13 cents/share. By that measure, the company beat the mean estimate of 11 cents/share. Estimates ranged from 11 cents per share to 11 cents per share.

Quoting Management: “Our better-than-expected fourth quarter results reflected increasing adoption of our mixed-signal solutions by enterprise computing and wireless infrastructure customers, and highlighted continuing gross margin expansion and solid execution across all of our business units,” said Dr. Ted Tewksbury, president and CEO of IDT. “We grew revenue 17 percent in fiscal 2011 from the prior year despite significant old product rolloffs like advanced memory buffers, network search engines, and PC clocks. New product revenue grew by more than 60 percent, and our core businesses had an outstanding year as we grew communications clock revenue 40 percent to a record high and our DDR3 memory interface revenue doubled. We also more than doubled our non-GAAP operating income and EPS in fiscal 2011 from the prior year while gross margins reached a 10-year high. “As we enter fiscal year 2012, we believe that continued growth in our new and core businesses, driven by cloud computing and the ongoing deployment of 4G/LTE wireless infrastructure, will drive continuing top line improvement. By focusing on higher margin solutions and maintaining disciplined operating expense controls, we believe we can continue to demonstrate significant leverage in our model and deliver improved value for our shareholders.”

Key Stats: Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 6.1 percentage points to 54.6% from the year earlier quarter. Over that span, margins have grown on average 12.1 percentage points per quarter on a year-over-year basis.

Over the last five quarters, revenue has increased 19.8% on average year over year. The biggest increase came in the first quarter, when revenue rose 36.5% from the year earlier quarter.

Competitors to Watch: Texas Instruments Inc. (NYSE:TXN), Intel Corporation (NASDAQ:INTC), Advanced Micro Devices (NYSE:AMD), IBM (NYSE:IBM), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), NVIDIA (NASDAQ:NVDA), Oracle (NASDAQ:ORCL), Micron Tech (NASDAQ:MU), Broadcom (NASDAQ:BRCM), Arm Holdings (NASDAQ:ARMH), Cypress Semicond. Corp. (NASDAQ:CY), Maxim Integrated Products Inc. (NASDAQ:MXIM), ON Semiconductor Corp. (NASDAQ:ONNN), Exar Corporation (NASDAQ:EXAR), Pericom Semiconductor (NASDAQ:PSEM), Analog Devices, Inc. (NYSE:ADI), Silicon Laboratories (NASDAQ:SLAB), and Inphi Corporation (NYSE:IPHI)

Stock Performance: Shares of IDTI are up 1% after hours to $8.30 per share.


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