Integrated Device Tech Falls Despite Earnings Meet
Integrated Device Technology released its fiscal third-quarter financial results after the markets closed on Monday.
Integrated Device Technology Inc. (NASDAQ: IDTI) released its fiscal third-quarter financial results after the markets closed on Monday. The company had $0.35 in earnings per share (EPS) on $177.6 million in revenue, which compared to consensus estimates of $0.35 in EPS on $177.9 million in revenue.
The recently acquired ZMDI appears to be processing well, and IDT is already leveraging its combined product portfolios into potent customer cross-selling opportunities. Additionally, as synergies will continue to be realized over the coming year, the company expects the acquisition to provide meaningful revenue and EPS accretion, while supporting IDT’s target operating model.
On the books, the company has cash, equivalents and short-term investments totaling $265.32 million in the fiscal third quarter, compared to $501.73 million in the same period from the previous year.
Greg Waters, president and CEO of IDT, commented on earnings:
We achieved a number of key milestones in the third quarter of fiscal 2016. On December 7th, we closed the acquisition of ZMDI and the following week we executed a $374 million convertible note offering, with a concurrent accelerated share repurchase program. We delivered our 9th consecutive quarter of year-over-year revenue growth, driven by strong demand for our communications infrastructure products. With our continued focus on operational excellence, we achieved a non-GAAP operating margin of 29.4 percent, and record free cash flow of 30 percent of revenue on a trailing twelve-month basis.
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Shares of IDT were down 25% $19.08 on Tuesday, with a consensus analyst price target of $31.00 and a 52-week trading range of $14.50 to $29.04.
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