STOCKREPORTS

Integrated Device Technology, Inc.

Nasdaq Symbol IDTI In S&P MidCap 400

Recent Price 10.13 52 Wk Range 14.94 - 7.75

Yield Nil 12-Mo. P/E NM

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) 2- Fair Value 9.95 Risk HIGH Earn/Div Rank B-
Technical Evaluation: BEARISH since 06/97 Rel. Strength Rank (1 Lowest - 99 Highest) 6 Insider Activity NA

Overview 30-APR-97

We expect revenues to advance around 20% in FY 98. IDTI will benefit from increased unit shipments and steady SRAM prices. Revenues should increase across all four major product lines, with the specialty memory and high-performance logic divisions expected to do especially well. Specialty memory differs from SRAM in that it allows IDTI to offer value-added services to its customers. Operating margins will improve on the higher volume. By the end of the fiscal year, the company expects that most of its equipped capacity will be utilized. This will eliminate much of the operating inefficiencies which hurt results in FY 97. However, while SRAM prices have stabilized, they remain much lower than their highest levels. This will prevent the company from achieving the profitability it realized in FY 96 and FY 95. Overall, we believe the company will earn $0.40 a share (primary) in FY 98.

Valuation 30-APR-97

We are maintaining our "hold" recommendation on the shares. While the stock spurted briefly after IDT reported better than expected fourth quarter earnings, we don't view the positive surprise as significant enough to carry the shares substantially higher from current levels. The stock trades a premium multiple relative to FY 98 earning. Furthermore, even if EPS was to approach its previous best levels by FY 99, the relatively low multiple the market would give the shares due to the volatility of IDT's results would not yield worthwhile gains given the riskiness of the shares. IDTI should perform in line with most semiconductor issues over the next six months.

Key Stock Statistics

Fiscal Year Ending Mar. 31

Dividend Data: No cash has been paid. A three-for-two stock split was effected in 1987.

Business Summary 30-APR-97

Integrated Device Technology, Inc. (IDT) designs, makes and sells high-performance semiconductor products for the communications, desktop computer, office automation and workstation/server markets. The company offers more than 5,000 products in four areas: SRAM components and modules, specialty memory products, logic circuits and RISC (reduced instruction set computers) microprocessors.

SRAMs, which accounted for 46% of FY 96 (Mar.) revenues, are memory circuits used for storage and retrieval of data during a computer system's operation. SRAMs maintain their contents without requiring electrical reinforcement to ensure data integrity. This allows them to operate at higher speeds. The company primarily focuses on the cache memory segment of the SRAM market. Cache memory provides intermediate storage between fast microprocessors and traditionally slower DRAM main memory.

Special memory products (27%) offer enhanced system performance beyond the capability of standard memory products. They include FIFOs (first in/first out memory circuits), which act as a rate buffer to transfer large amounts of data at high speeds between separate devices operating at different speeds: and multi-ported memory products, which are used to speed data transfers and link multiple microprocessors or between microprocessors and peripherals.

Logic circuits (17%) process data communications between elements of electronic systems, such as between a microprocessor and a memory circuit.

RISC products (10%) include 32-bit and 64-bit MIPS microprocessors. Principal marketing efforts are directed at embedded controllers, which are microprocessors that control a single device such as a printer, copier or network router.

In March 1996, IDTI introduced the first product using its new Fusion Memory technology, which combines the high performance characteristics of SRAM with the low manufacturing costs of DRAM. The company believes that Fusion Memory products can supplement its existing SRAM product offerings; they will be available initially in a 1 Megabit product.

Important Developments

Apr. '97 IDTI said that its return to profitability in the fourth quarter of FY 97 came one quarter earlier than it expected. The company also indicated that it believes results should improve sequentially throughout each quarter of FY 98.

Capitalization

Long Term Liabilities: $235,779,000, incl. $183,157,000 of sub. notes conv. into com. at $28.625 a sh. (3/97).

Curr. Ratio	3.1	2.8	3.6	2.8	1.8	1.7	2.2	2.0	1.9	2.1
% LT Debt of Cap.	30.7	25.8	3.3	11.4	20.9	25.5	27.3	31.4	17.8	18.6
% Net Inc.of Revs.	NM	17.4	18.5	12.2	2.3	NM	0.6	8.1	9.9	9.6
% Ret. on Assets	NM	15.8	16.3	12.7	2.1	NM	0.5	7.3	10.1	8.6
% Ret. on Equity	NM	24.5	23.4	22.1	4.4	NM	0.9	14.0	18.1	14.6

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--2975 Stender Way, Santa Clara, CA 95054. Tel--(408) 727-6116. Website--http://www.idt.com Chrmn--D. J. Carey. Pres & CEO--L. C. Perham. VP-Fin & CFO--W. D. Snyder. VP & Secy--J. Menache. Dirs--C. E. Berg, J. C. Bolger, D. J. Carey, F. Faggin, L. C. Perham. Transfer Agent & Registrar--First National Bank of Boston. Incorporated--in California in 1980; reincorporated in Delaware in 1987. Empl-- 3,828. S&P Analyst: Stephen T. Madonna, CFA

This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997