Integrated Device Technology Inc (NASDAQ:IDTI) Q4 2018 Earnings Conference Call Transcript

Apr 30, 2018 • 04:30 pm ET

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Integrated Device Technology Inc (NASDAQ:IDTI) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day ladies and gentlemen and welcome to the Integrated Device Technology Fourth Quarter Fiscal Year 2018 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer-session; and instructions will follow at that time. (Operator Instructions) As a reminder, this call is being recorded.

I would now like to introduce your host for today's conference, Mr. Krishna Shankar, Head of Investor Relations. Sir, you may begin.

Executive
Krishna Shankar

Thank you, operator, and welcome to our fiscal fourth quarter 2018 financial results conference call. I am Krishna Shankar, IDT's Head of Investor Relations, and presenting with me on the call today are Greg Waters, our CEO; and Brian White, our CFO.

Our call today will include remarks about future expectations, plans, and prospects for IDT, which constitute forward-looking statements for purposes of the Safe Harbor provisions under applicable federal securities laws. Forward-looking statements in this call will include statements regarding demand for Company products, anticipated trends in Company sales, expenses and profits, and involve a number of risks and uncertainties that could cause actual results to differ materially from current expectations.

The Company urges investors to review in detail the risks and uncertainties in the Company's SEC filings including, but not limited to, the Annual Report on Form 10-K for the fiscal year ended April 2nd, 2017 and periodic reports filed from time to time with the SEC. All forward-looking statements are made as of the date of this call and IDT disclaims any duty to update such statements.

In addition, pursuant to Regulation G, any non-GAAP financial measures referenced during today's conference call can be found in our press release and posted on our website at idt.com, including a complete reconciliation to the most directly comparable GAAP measures. All financial references will be non-GAAP on a continuing operations basis, unless otherwise indicated. Also, we have made selected financial information available on webcast slides, which can be found in the Investor Relations section of our website.

Now, I'll turn the call over to Greg, who will provide fourth quarter highlights; Brian will follow with more specifics and our outlook for the June quarter. Greg?

Executive
Gregory L. Waters

Thank you, Krishna. I'm pleased to report that we finished fiscal 2018 with revenues of $843 million, up from $728 million in the prior year and well above the $830 million target that we set at the beginning of our fiscal year. We also delivered strong fiscal Q4 results with revenues of $224.6 million and non-GAAP gross margins of 62.6%. Non-GAAP operating margins achieved our target of 30%, up from 27.2% in the prior year period and non-GAAP earnings per share was $0.46. Fourth quarter revenue, non-GAAP gross margin, and non-GAAP EPS, all exceeded the midpoint of our guidance range, driven by strength in our automotive, industrial, and consumer end markets.

For fiscal 2019, we enter the year with exceptional new product and new customer strength. We expect continued above-market revenue growth, coupled with further year-over-year margin improvement. Our new product