Integrated Device Technology, Inc. Announces Unaudited Consolidated Earnings Results for the Fiscal First Quarter Ended July 1, 2018; Provides Earnings Guidance for the Second Quarter, Second Half and Full Year of Fiscal 2019
For the second quarter of fiscal 2019, the company expects revenue of approximately $233 million, plus or minus $5 million. The company projects non-GAAP gross margin to be approximately 63.8%, plus or minus 1 percentage point. This would be up another 40 basis point sequentially from strong First Quarter results and up 240 basis points from the year ago period. The increased gross margin outlook for fiscal second quarter of 2018 is helped by the projected reduction in mobile sensing revenue in the quarter. The company projects non-GAAP operating expense will increase approximately $2.2 million to $79.4 million, plus or minus $1 million. The company expects R&D to increase by $2 million to approximately $46.7 million and SG&A to increase by $200,000 to $32.7 million. The increase in OpEx includes previously planned increases in new product development, combined with the impact of variable compensation accruals driven by strong outlook for fiscal 2019 revenue growth and profitability. The company estimates fiscal second quarter non-GAAP operating margin to be approximately 29.7%. The company currently anticipates fiscal second quarter interest and other expense will be approximately $1.7 million. The company expects fully diluted shares for EPS to be approximately 131 to 135.1 million and non-GAAP EPS to be between $0.42 and $0.48 or $0.45 at the midpoint.
For the second half of fiscal year 2019, the company expects gross margins had a potential to reach the 63% to 64% range.
For the full year of fiscal 2019, the company is now targeting to achieve 30% operating margin for the full fiscal year. The company expects full year fiscal 2019 non-GAAP tax rate will be approximately 10%. The company is very optimistic about trajectory for continued revenue growth and margin expansion that will translate to increase in EPS and free cash flow generation throughout the year.