Integrated Device Technology, Inc. Earnings: Margins Keep Growing, but Profit Drops

Integrated Device Technology, Inc. (NASDAQ:IDTI) reported its results for the first 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 First Quarter

Results: Net income for Integrated Device Technology, Inc. fell to $7.7 million (5 cents per share) vs. $10.4 million (6 cents per share) a year earlier. This is a decline of 26.2% from the year earlier quarter.

Revenue: Fell 4.3% to $151.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: IDTI reported adjusted net income of 12 cents per share. By that measure, the company beat the mean estimate of 10 cents per share. Analysts were expecting revenue of $153.5 million.

Quoting Management: “Our first quarter results were within our guidance range as strong demand from our computing end market was offset by weaker-than-expected demand from customers in our communications and consumer end markets,” said Dr. Ted Tewksbury, president and CEO of IDT. “Despite this weakness, we were able to deliver strong gross margins and earnings while improving cash flow and increasing the pace of our stock repurchase program.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.8 percentage points to 53.7% from the year earlier quarter. Over that span, margins have grown on average 9.7 percentage points per quarter on a year-over-year basis.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the first quarter of the last fiscal year, which saw revenue rise 36.5%.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 2 cents in the fourth quarter of the last fiscal year and by one cent in the third quarter of the last fiscal year.

Competitors to Watch: Texas Instruments Inc. (NYSE:TXN), Intel Corporation (NASDAQ:INTC), 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).

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(Source: Xignite Financials)