IDT Reports Fiscal Q2 2011 Financial Results

Integrated Device Technology, Inc.

, the Analog and Digital Company™ delivering essential mixed-signal semiconductor solutions, today announced results for the fiscal second quarter ended September 26, 2010. “I'm pleased to report another strong quarter of financial performance in Q2, which validates our strategy and highlights the significant leverage in our operating model,” said Dr. Ted Tewksbury, president and CEO of IDT. “We delivered 22 percent sequential growth in new products while increasing sales in our core communications timing, consumer timing and DDR3 memory interface businesses. Our deliberate efforts to shift the mix to higher value-added products enabled gross margins to reach their highest level in 10 years. This gross margin improvement, combined with continued operating expense control, resulted in operating margins well above our target model. In fact, during the quarter, more than 95 cents of every incremental sales dollar dropped to operating profit. While we face weaker demand from customers in the computing and consumer end markets in the December quarter, our exceptional execution in Q2 exemplifies the solid returns that our operating model can deliver over the long run.”