Starboard Value Further Reduces Stake in Integrated Device Technology, Inc (IDTI)

For the third time in past three months, Jeffrey Smith’s Starboard Value LP reduced its stake in Integrated Device Technology, Inc (NASDAQ:IDTI). According to a recent SEC filing, Starboard Value reduced its position to 7.25 million shares from 8.80 million shares disclosed earlier. The stake currently amasses 4.8% of the company’s stock.

Integrated Device Technology, Inc. (NASDAQ:IDTI)

Last month, Starboard cut its stake in Integrated Device Technology, Inc (NASDAQ:IDTI) to 8.80 million shares from 10.20 million shares held earlier. In January, the fund reduced the position to 10.20 million shares from 11.53 million held at the end of the last year. However, these moves are in accordance with the Trading Plan Agreement signed between Starboard and Credit Suisse Securities. Under the terms of the plan, Starboard Value planned to sell around 3.7 million shares of Integrated Device Technology.

Integrated Device Technology, Inc (NASDAQ:IDTI) is a designer, developer, manufacturer and marketer of semiconductor solutions. The California-based company has a market cap of $1.90 billion. One of the largest shareholders of the company is Stephen V. Raneri’s Lioneye Capital Management, which owned 1.38 million shares of the company at the end of December 2013. Another shareholder is Bill Miller’s Legg Mason Capital Management, which held 942,500 shares at the end of last year.

Recently, a board director at Integrated Device Technology, Inc (NASDAQ:IDTI), Umesh Padval, sold 10,000 shares of the common stock of the company, at a price of $12.76 apiece. Currently, Mr. Padval owns around 39,200 shares.

For the fiscal third quarter ended December 29, 2013, the company reported non-GAAP net income of $25.9 million or $0.17 per share, compared with non-GAAP net income of $9.3 million or $0.06 per share reported in the same period a year ago. On February 26, Integrated Device Technology, Inc (NASDAQ:IDTI) announced that Peter Feld has resigned as a member of the company’s board of directors, effective immediately. Feld, a managing member, portfolio manager and the head of research of Starboard Value, served on the board since June 2012.

Starboard Value was founded by Jeffrey Smith in 2002 via a spin-off from Ramius. The fundamental oriented activist hedge fund focuses on small cap stocks. The most valuable holding in the fund’s equity portfolio is Darden Restaurants Inc. (NYSE:DRI), in which the fund owns 7.25 million shares worth $394.18 million as at the end of the fourth quarter of 2013.

At the end of February, Starboard Value revealed in a filing that it sent an open letter to the shareholders of Darden Restaurants Inc. In the letter, the fund states that it filed the preliminary solicitation statement in furtherance of seeking shareholder support to demand that Darden Restaurants Inc. (NYSE:DRI) call a special shareholders meeting in order to provide them with a democratic forum for expressing their views on the proposed separation or spin-off of the company’s Red Lobster business.

Disclosure: none

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