-- We expanded our solutions for high-speed serial protocol signal
integrity by introducing 2 new ReDriver™ products for SATA3, SAS2,
and eSATA protocols. These products address volume notebook, server,
storage, and embedded market segments.
-- Adding to our high-speed connectivity solutions, we introduced 4 new
products; 2 are advanced HDMI and LVDS graphics display switches
targeted to consumer video and computing segments, and 2 are next
generation USB 'sleep and charge' (mobile device charging) products for
the NB computing segment.
-- Expanding our timing solutions for next generation platforms, we
introduced 3 new products: 2 advanced crystal oscillators (XO)
targeting the networking and mobile computing (tablet) segments, and
1 very small footprint xtal for wireless networking applications.
Fiscal Q3 2011 Outlook
The following statements are based on current expectations. These
statements are forward looking, and actual results may differ materially.
-- Revenues in the third fiscal quarter are expected to be in the range of
$38 million to $41 million.
-- GAAP gross margins are expected to be between 33.2% and 35.2%, and
adjusting for share-based compensation, amortization of intangibles,
fair value adjustments, and compensation accruals that are expected to
total approximately 1.3%, non-GAAP gross margins are expected to be in
the 34.5% to 36.5% range.
-- GAAP operating expenses are expected to be between $12.3 and
$12.7 million, and adjusting for share-based compensation, amortization
of intangibles, fair value adjustments, and compensation accruals that
are expected to total approximately $1.7 million, non-GAAP operating
expenses are expected to be in the range of $10.6 to $11.0 million.
-- Other income is expected to be approximately $0.8 million on a GAAP
basis and $1.0 million on a non-GAAP basis.
-- The effective tax rate is expected to be approximately 27-30% on a GAAP
basis and 23-25% on a non-GAAP basis.
Conference Call
The press release will be followed by a conference call beginning at 1:30
p.m. Pacific time on February 1, 2011. To listen to the call, dial (877)
377-7103 and reference "Pericom". A slide presentation will accompany the
conference call. To view the slides, please visit the investor relations
section of www.pericom.com.
The Pericom financial results conference call will be available via a live
webcast on the investor relations section of the web site at
http://www.pericom.com. Access the web site 15 minutes prior to the start
of the call to download and install any necessary audio software. An
archived webcast replay will be available on the web site for approximately
90 days.
A taped replay of the conference call will be made available for the period
from this evening through midnight on Tuesday, February 8th. To listen to
the replay, dial (800) 642-1687 and reference conference ID 20773068.
About Pericom
Pericom Semiconductor Corporation (
Pericom Semiconductor Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
----------------------------- -------------------
January October December January December
1, 2, 26, 1, 26,
2011 2010 2009 2011 2009
--------- --------- -------- --------- --------
Net revenues $ 40,671 $ 42,775 $ 35,805 $ 83,446 $ 68,757
Cost of revenues 27,058 28,240 23,762 55,298 46,178
--------- --------- -------- --------- --------
Gross profit 13,613 14,535 12,043 28,148 22,579
Operating expenses:
Research and development 5,060 4,397 4,336 9,457 8,382
Selling, general and
administrative 6,986 7,742 6,035 14,728 12,863
--------- --------- -------- --------- --------
Total operating
expenses 12,046 12,139 10,371 24,185 21,245
--------- --------- -------- --------- --------
Income from operations 1,567 2,396 1,672 3,963 1,334
Interest and other income 614 11,936 1,288 12,550 2,931
--------- --------- -------- --------- --------
Income before income
taxes 2,181 14,332 2,960 16,513 4,265
Income tax expense 446 5,378 1,002 5,824 1,477
--------- --------- -------- --------- --------
Net income from
consolidated companies 1,735 8,954 1,958 10,689 2,788
Equity in net income of
unconsolidated
affiliates 77 556 536 633 1,063
--------- --------- -------- --------- --------
Net income 1,812 9,510 2,494 11,322 3,851
Net income attributable
to noncontrolling
interests - - (6) - (28)
--------- --------- -------- --------- --------
Net income attributable
to Pericom shareholders $ 1,812 $ 9,510 $ 2,488 $ 11,322 $ 3,823
========= ========= ======== ========= ========
Basic income per share to
Pericom shareholders $ 0.07 $ 0.38 $ 0.10 $ 0.45 $ 0.15
========= ========= ======== ========= ========
Diluted income per share
to Pericom shareholders $ 0.07 $ 0.38 $ 0.10 $ 0.45 $ 0.15
========= ========= ======== ========= ========
Shares used in computing
basic income per share 24,894 24,890 25,543 24,892 25,526
========= ========= ======== ========= ========
Shares used in computing
diluted income per share 25,270 25,263 25,911 25,267 25,795
========= ========= ======== ========= ========
Pericom Semiconductor Corporation
Condensed Consolidated Statements of Operations
(In thousands)
(unaudited)
Three Months Ended Six Months Ended
----------------------------- -------------------
January October December January December
1, 2, 26, 1, 26,
2011 2010 2009 2011 2009
--------- --------- --------- --------- ---------
Share-based compensation
Cost of revenues $ 57 $ 73 $ 65 $ 130 $ 128
Research and
development 353 390 342 743 694
Selling, general and
administrative 591 600 526 1,191 1,041
--------- --------- --------- --------- ---------
Share-based
compensation
expense $ 1,001 $ 1,063 $ 933 $ 2,064 $ 1,863
Amortization of
intangible assets
Cost of revenues $ 564 $ 269 $ 29 $ 833 $ 58
Selling, general and
administrative 285 129 53 414 106
--------- --------- --------- --------- ---------
Amortization of
intangible assets $ 849 $ 398 $ 82 $ 1,247 $ 164
Pericom Semiconductor Corporation
Reconciliation of GAAP Net Income to Non-GAAP Net Income
(In thousands)
(unaudited)
Three Months Ended Six Months Ended
---------------------------- ------------------
January October December January December
1, 2, 26, 1, 26,
2011 2010 2009 2011 2009
-------- -------- -------- -------- --------
GAAP net income
attributable to Pericom
shareholders $ 1,812 $ 9,510 $ 2,488 $ 11,322 $ 3,823
Reconciling items:
Share-based compensation
expense 1,001 1,063 933 2,064 1,863
Amortization of
intangible assets 849 398 82 1,247 164
Fair value adjustment
amortization on
acquired inventory 412 202 - 614 -
Gain on previously held
interest at PTI - (11,004) - (11,004) -
Acquisition-related costs 4 594 - 598 -
Interest expense accrual
relating to PTI
acquisition earnout 204 74 - 278 -
Fair value adjustment to
depreciation expense on
acquired fixed assets 46 15 - 61 -
Compensation expense
accrual relating to PTI
acquisition 359 128 - 487 -
Tax effect of
adjustments (618) 3,341 (282) 2,723 (537)
-------- -------- -------- -------- --------
Total reconciling
items 2,257 (5,189) 733 (2,932) 1,490
-------- -------- -------- -------- --------
Non-GAAP net income
attributable to Pericom
shareholders $ 4,069 $ 4,321 $ 3,221 $ 8,390 $ 5,313
======== ======== ======== ======== ========
Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS
(unaudited)
Diluted net income per
share:
GAAP diluted income per
share attributable to
Pericom shareholders $ 0.07 $ 0.38 $ 0.10 $ 0.45 $ 0.15
Adjustments:
Share-based compensation
expense 0.04 0.04 0.03 0.08 0.07
Amortization of
intangible assets 0.03 0.02 0.00 0.05 0.01
Fair value adjustment
amortization on
acquired inventory 0.02 0.01 - 0.03 -
Gain on previously held
interest at PTI - (0.44) - (0.44) -
Acquisition-related
costs 0.00 0.02 - 0.02 -
Interest expense accrual
relating to earnout 0.01 0.00 - 0.01 -
Fair value adjustment to
depreciation expense on
acquired fixed assets 0.00 0.00 - 0.00 -
Compensation expense
accrual relating to PTI
acquisition 0.01 0.01 - 0.02 -
Tax effect of
adjustments (0.02) 0.13 (0.01) 0.11 (0.02)
-------- -------- -------- -------- --------
Total adjustments 0.09 (0.21) 0.02 (0.12) 0.06
-------- -------- -------- -------- --------
Non-GAAP diluted income
per share attributable to
Pericom shareholders $ 0.16 $ 0.17 $ 0.12 $ 0.33 $ 0.21
======== ======== ======== ======== ========
Shares used in diluted
net income per share
calculation:
GAAP 25,270 25,263 25,911 25,267 25,795
Exclude the benefit of
share-based compensation
expense (1) 346 265 123 306 129
-------- -------- -------- -------- --------
Non-GAAP 25,616 25,528 26,034 25,572 25,923
======== ======== ======== ======== ========
(1) For purposes of calculating non-GAAP diluted net income per share,
the GAAP diluted weighted average shares outstanding is adjusted to
exclude the benefits of unamortized stock compensation costs that are
treated as proceeds assumed to be used to repurchase shares under the
GAAP treasury stock method.
Pericom Semiconductor Corporation
Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
(In thousands)
(unaudited)
Three Months Ended Six Months Ended
---------------------------- ------------------
January October December January December
1, 2, 26, 1, 26,
2011 2010 2009 2011 2009
-------- -------- -------- -------- --------
GAAP gross margin $ 13,613 $ 14,535 $ 12,043 $ 28,148 $ 22,579
- % of revenues 33.5% 34.0% 33.6% 33.7% 32.8%
Reconciling items:
Share-based compensation 57 73 65 130 128
Amortization of
intangible assets 564 269 29 833 58
Fair value adjustment
amortization on
acquired inventory 412 202 - 614 -
Fair value adjustment to
depreciation expense on
acquired fixed assets 9 1 - 10 -
Compensation expense
accrual relating to PTI
acquisition 104 37 - 141 -
-------- -------- -------- -------- --------
Total reconciling
items 1,146 582 94 1,728 186
-------- -------- -------- -------- --------
Non-GAAP gross margin $ 14,759 $ 15,117 $ 12,137 $ 29,876 $ 22,765
======== ======== ======== ======== ========
- % of revenues 36.3% 35.3% 33.9% 35.8% 33.1%
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses
(unaudited)
GAAP operating expenses $ 12,046 $ 12,139 $ 10,371 $ 24,185 $ 21,245
- % of revenues 29.6% 28.4% 29.0% 29.0% 30.9%
Reconciling items:
Share-based compensation (944) (990) (868) (1,934) (1,735)
Amortization of
intangible assets (285) (129) (53) (414) (106)
Acquisition-related
costs (4) (594) - (598) -
Fair value adjustment to
depreciation expense on
acquired fixed assets (37) (14) - (51) -
Compensation expense
accrual relating to PTI
acquisition (255) (91) - (346) -
-------- -------- -------- -------- --------
Total reconciling
items (1,525) (1,818) (921) (3,343) (1,841)
-------- -------- -------- -------- --------
Non-GAAP operating
expenses $ 10,521 $ 10,321 $ 9,450 $ 20,842 $ 19,404
======== ======== ======== ======== ========
- % of revenues 25.9% 24.1% 26.4% 25.0% 28.2%
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
As of As of
January 1, July 3,
2011 2010
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 33,719 $ 29,495
Restricted cash 2,947 -
Short-term investments 64,674 76,454
Accounts receivable - trade 22,049 25,365
Inventories 28,523 23,431
Prepaid expenses and other current assets 8,805 6,825
Deferred income taxes 3,261 3,119
------------ ------------
Total current assets 163,978 164,689
Property, plant and equipment-net 61,482 50,760
Investments in unconsolidated affiliates 2,467 13,183
Deferred income taxes non current 3,754 3,868
Long-term investments in marketable securities 22,513 12,977
Goodwill 16,457 1,681
Intangible assets 16,912 1,452
Other assets 9,707 7,438
------------ ------------
Total assets $ 297,270 $ 256,048
============ ============
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 12,248 $ 15,585
Accrued liabilities and other 20,764 10,781
Short-term debt 7,371 -
------------ ------------
Total current liabilities 40,383 26,366
Industrial development subsidy 8,900 6,577
Other long-term liabilities 7,872 1,199
------------ ------------
Total liabilities 57,155 34,142
Shareholders' equity:
Common stock and paid in capital 132,157 130,536
Retained earnings and other comprehensive
income 107,958 91,370
------------ ------------
Total Pericom shareholders' equity 240,115 221,906
------------ ------------
Total liabilities and shareholders'
equity $ 297,270 $ 256,048
============ ============
Contact Information: Contact: Aaron Tachibana Pericom Semiconductor Tel: 408 435-0800