Integrated Device Technology Earnings: Swinging to a Loss but Better than Expected

Integrated Device Technology Inc. (NASDAQ:IDTI) dropped to a second quarter loss, but results topped expectations. Integrated Device Technology 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 Inc. Earnings Cheat Sheet

Results: Reported a loss of $73,000 (0 cents per diluted share) in the quarter. Integrated Device Technology Inc. had a net income of $46.7 million or 32 cents per share in the year-earlier quarter.

Revenue: Fell 3.6% to $133.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Integrated Device Technology Inc. reported adjusted net income of 9 cents per share. By that measure, the company beat the mean estimate of 5 cents per share. It beat the average revenue estimate of $117.3 million.

Quoting Management: “Despite broad-based weakness in demand, we were able to deliver sequential revenue growth in line with our prior projections,” said Dr. Ted Tewksbury, president and CEO of IDT. “New product revenue increased to over 17 percent of the total, up from 14 percent in the prior quarter, driven by record revenue from Rapid IO switching solutions, continued growth in PCI Express switching, and initial sales from new product categories like enterprise flash controllers, high-speed data converters and wireless power solutions.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year.

Revenue has fallen for the last four quarters. Revenue declined 14.1% to $130.2 million in the first quarter. The figure fell 19.1% in the fourth quarter of the last fiscal year from the year earlier and dropped 21.7% in the third quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the third quarter is 7 cents per share, a drop from 8 cents. Over the past three months, the average estimate for the fiscal year has climbed from 20 cents per to share to 21 cents.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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