Chip vendor Integrated Device Technology (IDTI) this afternoon delivered fiscal Q4 revenue and profit ahead of expectations, reporting revenue of $147.3 million, up 7%, year over year, and EPS of 13 cents.
Analysts had been expecting $145 million and 11 cents.
Non-GAAP gross margin rose to 57.3% from 53% a year earlier.
CEO Ted Tewskbury said new product reeve rose more than 60%, communications clock revenue was up 40%, and revenue from “DDR3″ memory interface chips doubled.
IDT shares are unchanged at $8.22 in late trading.
Update: For fiscal Q1 ending in June, management is forecasting $150 million to $156 million in revenue, management said on the conference call. That is higher than the $152.5 million the Street has been projecting. CFO Rick Crowley said the company started the quarter with higher backlog than in the prior quarter, that bookings for the first five weeks have been “solid,” and that the book-to-bill ratio is above 1.
Update 2: IDT’s CEO Ted Tewksbury was kind enough to take a few minutes to talk this evening following the company’s conference call.
Revenue of 7% in the quarter is below the rate of growth in some other parts of the company’s business. For example, products that go into server computers saw sales rise 30%. That includes interface, or “buffer,” chips for DDR3 memory chips, as well as PCI Express chips. The rapid rise in server sales, which can be seen in Intel’s (INTC) server microprocessor results, is also benefitting IDT, notes Tewksbury.
IDT has been transitioning under Tewksbury from a company heavily levered to the PC business into a company more focused on servers and communications, with products demanding greater performance. Until the PC-related products are worked off of the income statement, their low rates of growth tend to constraint the total top line growth.
Tewskbury noted that the communications products, which saw revenue rise 6%, are benefitting from an acceleration of 4G, or “LTE,” wireless networking in the U.S. at Verizon Commuications (VZ) and AT&T (T). IDT’s timing products are used in base station equipment that is being developed for LTE.
Tewskbury noted that as it winds down its own fab operations, gross profit in the quarter after this one, the fiscal Q2 ending in September, will see a slight decline in gross profit, to about 55.5% or 56%, from 57.3% this quarter, as the company builds inventory to serve as a “bridge” as it transitions to using Taiwan Semiconductor Manufacturing’s (TSM) foundry services.
And as for Japan, IDT has said it is seeing no impairment from the disaster in that country in March. However, Tewksbury also concedes that not all of the facts are in yet on the total impact to the supply chain, and there’s no way to know now if there may be further indirect impact to IDT and others in the industry power outages and other follow-on effects.
Article courtesy of Tech Trader Daily