SCIENCE

Integrated Device Technology announced results for the fiscal first quarter ended July 3, 2011.

"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.

"We remain well positioned in each of our end markets and highly levered to powerful secular growth drivers like cloud computing, 4G/LTE wireless infrastructure, and consumer mobility which we believe will drive growth for IDT over the next several years."

Recent Highlights

IDT recently announced:

-- It delivered the industry's first single-chip enterprise-class flash controller with native PCIe. The controller was co-developed with Micron Technology, Inc. for exclusive use in Micron's recently announced P320h PCIe solid-state storage system. The new PCIe SSD is targeted at high-performance enterprise applications that require a high-end controller to meet the stringent requirements of today's demanding enterprise environments.

-- The industry's first PCI Express to Serial RapidIO protocol conversion bridge that extends scalable RapidIO-enabled peer-to-peer multiprocessor clusters to the x86 processor environment. The bridge allows high performance computing OEMs to deploy x86-based RapidIO systems with peer-to-peer clustering, scalability, low end to end system latency, and hardware enabled fault isolation. This not only allows x86 processors to be used in traditional RapidIO markets such as wireless and defense, but also allows RapidIO to be used in traditional x86 markets such as enterprise computing.

-- Patent pending HyperGear technology that dynamically adjusts CPU voltages and clock frequencies based on CPU usage demand to provide more than 10 percent efficiency improvements while simultaneously boosting CPU performance. IDT has started utilizing the technology on all current and future power management solutions that comply with industry standard specifications, such as VR12.

-- An upcoming presentation with Dell on the NVM Express specification that provides an industry standard interface for PCIe SSDs, enabling adoption of this high performance solution in cloud computing applications.

-- The world's first portable audio subsystem with integrated programmable clock generator. The low power, high fidelity codec is an ideal fit for portable applications such as tablet computing and speaker docks.

-- It released a new family of low-power spread spectrum clock generators that support the industry's widest frequency range in a tiny 2x2mm package. The devices allow users to address EMI challenges in a variety of applications including digital TVs, set-top boxes, printers, industrial control, battery powered electronics, and computer or embedded computing systems.

The following highlights the Company's financial performance on both a GAAP and non-GAAP basis. The GAAP results include certain costs, charges, gains and losses, which are excluded from non-GAAP results based on management's determination that they are not directly reflective of ongoing operations. 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 first quarter of 2012 was $151.5 million, compared with $158.3 million reported in the same period one year ago.

-- GAAP net income for the fiscal first quarter of 2012 was $7.7 million or $0.05 per diluted share, versus GAAP net income of $10.4 million or $0.06 per diluted share in the same period one year ago. Fiscal first quarter 2012 GAAP results include $4.1 million in acquisition and divestiture related charges, $4.1 million in stock-based compensation, $2.3 million in restructuring related charges, and $0.6 million in tax effects.

-- Non-GAAP net income for the fiscal first quarter of 2012 was $17.6 million or $0.12 per diluted share, compared with non-GAAP net income of $23.3 million or $0.14 per diluted share reported in the same period one year ago.

-- GAAP gross profit for the fiscal first quarter of 2012 was $81.4 million, or 53.7 percent, compared with GAAP gross profit of $82.2 million, or 51.9 percent, in the same period one year ago. Non-GAAP gross profit for the fiscal first quarter of 2012 was $86.8 million, or 57.3 percent, compared with non-GAAP gross profit of $87.9 million, or 55.6 percent, reported in the same period one year ago.

-- GAAP R&D expense for the fiscal first quarter of 2012 was $46.0 million, compared with GAAP R&D expense of $43.7 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal first quarter of 2012 was $43.3 million, compared with non-GAAP R&D of $40.2 million in the same period one year ago.

-- GAAP SG&A expense for the fiscal first quarter of 2012 was $26.8 million, compared with GAAP SG&A expense of $27.4 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal first quarter of 2012 was $24.4 million, compared with non-GAAP SG&A expense of $24.0 million in the same period one year ago.

Webcast and Conference Call Information

Investors can listen to a live or replay webcast of the Company's quarterly financial conference call at http://www.IDT.com . The live webcast will begin at 1:30 p.m. Pacific time on August 1, 2011. The webcast replay will be available after 5 p.m. Pacific time on August 1, 2011.

Investors can also listen to the live call at 1:30 p.m. Pacific time on August 1, 2011 by calling (800) 230-1059 or (612) 234-9959. The conference call replay will be available after 5 p.m. Pacific time on August 1, 2011 through 11:59 p.m. Pacific time on August 8, 2011 at (800) 475-6701 or (320) 365-3844. The access code is 209670.