Upcoming AWS Coverage on ON Semiconductor Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 6, 2017 / Active Wall St. announces its post-earnings coverage on Integrated Device Technology, Inc. (NASDAQ: IDTI). The Company disclosed its third quarter fiscal 2017 results on January 30, 2017. The Chipmaker sales and earnings results outperformed market expectations. Register with us now for your free membership at:

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One of Integrated Device Technology's competitors within the Semiconductor - Broad Line space, ON Semiconductor Corp. (NASDAQ: ON), announced on January 24, 2017, that it will release its financial results for Q4 ended December 31, 2016, before the market opens on Monday, February 13, 2017. AWS will be initiating a research report on ON Semiconductor in the coming days.

Today, AWS is promoting its earnings coverage on IDTI; touching on ON. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=IDTI

http://www.activewallst.com/registration-3/?symbol=ON

Earnings Reviewed

For the three months ended January 01, 2017, Integrated Device's revenue from continuing operations was $176.4 million compared to revenue of $184.1 million reported in Q2 FY17 and $177.6 million reported in Q3 FY16. The Company's Q3 FY17 revenue numbers outperformed analysts' expectations of $176.1 million.

For Q3 FY17, Integrated Device's GAAP gross profit from continuing operations was $104.1 million, or 59.0%, compared to GAAP gross profit of $106.5 million, or 57.9% in Q2 FY17 and $107.9 million, or 60.8%, reported in Q3 FY16. The Company's non-GAAP gross profit for the reported quarter was $108.7 million, or 61.6% compared to non-GAAP gross profit of $111.4 million, or 60.5% in Q2 FY17 and $111.1 million, or 62.6% in Q3 FY16.

Integrated Device's GAAP R&D expense for Q3 FY17 were $38.2 million compared to GAAP R&D expense of $41.8 million in the previous quarter, and $38.4 million reported in the year earlier same quarter. The Company's GAAP SG&A expense for the reported quarter was $32.7 million compared to GAAP SG&A expense of $37.4 million in Q2 FY17 and $38.9 million in Q3 FY16.

For Q3 FY17, Integrated Device's GAAP net income from continuing operations was $33.4 million, or $0.24 per diluted share, versus GAAP net income from continuing operations of $24.6 million, or $0.18 per diluted share, in Q2 FY17, and GAAP net income from continuing operations of $32.5 million, or $0.22 per diluted share, in Q3 FY16. The Company's Q3 FY17 results included $9.9 million in stock-based compensation, $6.1 million in acquisition and restructuring charges, $3.3 million in non-cash interest expense, $0.7 million in other income, and $4.5 million in related tax effects. Integrated Device's adjusted income for Q3 FY17 was $49.0 million, or $0.35 per diluted share, compared to non-GAAP net income of $47.4 million, or $0.34 per diluted share, in Q2 FY17, and non-GAAP net income of $52.2 million, or $0.35 per diluted share, reported in Q3 FY16. The Company's earnings results outperformed Wall Street's expectations of $0.34 per share.

Cash Flow & Balance Sheet

For Q3 FY17, Integrated Device's cash and short-term investments increased $20.2 million to $394 million. The Company generated $51 million in cash from operations and spent approximately $8 million on CapEx during the reported quarter. Integrated Device's free cash flow for Q3 FY17 was approximately $43 million and free cash flow as a percent of revenue was 19% on a trailing 4-quarter basis.

For Q3 FY17, Integrated Device spent $19.1 million to repurchase 807,000 shares at an average price of $23.65. The Company's net inventory increased $1 million, while accounts receivable decreased approximately $800,000. Days of inventory stood at 61 and DSO was 42 days.

Outlook

For Q4 FY17, Integrated Device is projecting revenue to be between $170 million and $180 million, or $175 million, at the midpoint. The Company is forecasting non-GAAP gross margin to decrease 60 basis points sequentially to equal approximately 61% plus or minus 50 basis points, driven by change in product mix.

For Q4 FY17, Integrated Device is expecting non-GAAP operating expense to remain relatively flat at $59 million, plus or minus $1 million. R&D is expected to be approximately $32.7 million and SG&A spending approximately $26.3 million. The Company is projecting non-GAAP EPS for Q4 FY17 to be between $0.32 and $0.36 per share, or $0.34 at the midpoint.

Stock Performance

Integrated Device Technology's share price finished last Friday's trading session at $25.20, rising 1.04%. A total volume of 1.82 million shares exchanged hands, which was higher than the 3 months' average volume of 1.78 million shares. The stock has surged 11.46% and 34.40% in the last three months and past six months, respectively. Furthermore, since the start of the year, shares of the Company have gained 6.96%. The stock is trading at a PE ratio of 22.07 and currently has a market cap of $3.38 billion.

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SOURCE: Active Wall Street