Quantcast
Last updated on April 18, 2014 at 7:49 EDT

Pericom Semiconductor Reports Fiscal Q2 2009 Financial Results

February 3, 2009

SAN JOSE, Calif., Feb. 3 /PRNewswire-FirstCall/ — Pericom Semiconductor
Corporation (Nasdaq: PSEM), a worldwide supplier of high-speed integrated
circuits and frequency control products, today announced results for its
fiscal second quarter ended December 27, 2008.

    Quarterly Summary

    -- Net revenues declined 30% sequentially and 24.5% year-over-year to
       $30.7 million.

    -- Gross profits decreased $5.2 million sequentially and $4.3 million
       year-over-year.

    -- Gross margin of 34.9% was down 150 basis points on a sequential basis
       and down 200 basis points year-over-year.

    -- Net income fell 56.5% sequentially and 61.1% year-over-year to $1.7
       million.

    -- Total shares repurchased during the period were 426,494 shares for $2.3
       million.

Net revenues for the second quarter were $30.7 million, down 30% from the
$43.9 million reported in the first quarter, and down 24.5% from the $40.7
million
reported in the comparable period last year. Gross margin was 34.9%,
down from 36.4% last quarter, and down from 36.9% in the comparable period
last year. Net revenues for the six-month period ending December 27, 2008 were
$74.6 million, down 5.8% from $79.2 million in the prior year comparable
period. Gross margin in the six-month period ending December 27, 2008 was
35.8%, down from 36.7% in the comparable period last year.

Operating expenses in the quarter were $10.0 million, down from $11.1
million
in the previous quarter and down slightly from $10.1 million in the
comparable period last year. Operating expenses in the six-month period ending
December 27, 2008 were $21.2 million, up from $20.0 million in the comparable
period last year. Stock-based compensation expense in the quarter was
$904,000, up from $795,000 in the previous quarter and up from $650,000 in the
comparable period last year. Stock based compensation expense for the six-
month period ended December 27, 2008 was $1.7 million, up from $1.2 million in
the comparable prior year period.

Net income in the quarter was $1.7 million, or $0.07 per diluted share,
compared with net income of $3.9 million, or $0.15 per diluted share in the
first quarter and net income of $4.4 million, or $0.16 per diluted share, in
the same period a year ago. Net income in the six-month period ending December
27, 2008
was $5.6 million, or $0.22 per diluted share, down from $8.3 million,
or $0.31 per diluted share in the comparable prior year period.

“Our second quarter results reflect the difficult global economic
environment in which we are currently operating,” said Alex Hui, president and
CEO of Pericom. “We experienced a sharp decline in revenue, which was
consistent with declining end-market demand and inventory reduction
initiatives across the supply chain. As a result, we have taken steps to
reduce our operating expenses to better match lower revenue expectations for
our business.

“In the midst of these spending controls, we continue to invest in
innovation. Our team has identified key R&D programs that are important for
Pericom’s long-term growth, focusing on connectivity and timing solutions for
key serial protocols such as PCI-Express, DisplayPort, USB, SAS and SATA. In
the near-term, however, we are encouraged by the sustained design-in activity
of our products into growth-oriented applications in the markets we serve.
Enabling serial connectivity in computer, communication and consumer
applications remains our primary focus, which we believe will position us well
as end-market demand eventually stabilizes.”

New Products

In the December quarter, we continued to expand our serial connectivity
solution with the introduction of 11 new products that were across the Signal
Integrity, Timing and Connectivity product areas:

    -- Expanding its solutions for high speed serial protocol signal
       integrity, Pericom introduced 4 new ReDriver(TM) products supporting
       the DisplayPort(TM) video graphics protocol and the SATA (Serial ATA)
       protocol for storage devices. These new products target notebook and
       desktop applications and enable these high speed serial signals to work
       across external cables to video and storage end points.

    -- Adding to high speed Connectivity and Switching solutions, Pericom
       introduced 5 new switching and bridge products targeted across USB,
       Video, Ethernet switching, and PCI Express bridging applications.
       Applications include GPS, graphics and video display, notebook/docking,
       and ultra mobility platforms.

    -- Expanding its timing solutions for next generation platforms, Pericom
       introduced 2 new products. The M series is a family of Spread Spectrum
       Crystal Oscillators aimed at set top box and wireless networking
       applications, while the 'jitter cleaner' clock IC is aimed at advanced
       Synchronous Gigabit Ethernet networking applications.

Share Repurchase Update

On April 26, 2007, the Company’s Board of Directors authorized the
repurchase of 2.0 million shares and on April 29, 2008, our Board of Directors
authorized the repurchase of an additional $30 million of our common stock.
The Company has completed the repurchase of 2,000,000 shares under the 2007
authority at a total cost of approximately $25.2 million. Pursuant to the 2008
authority, the Company repurchased 426,494 shares in the three months ended
December 27, 2008 for an aggregate cost of $2.3 million and an average per
share purchase price of $5.42. The company also repurchased 60,810 shares in
the quarter ended September 27, 2008 for $760,917, with an average of $12.51
per share. The remaining balance of potential share repurchases under the
2008 authority is approximately $26.9 million.

Fiscal Q3 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
       $23.0 million to $26.0 million.

    -- Gross margins are expected to be in the 33.0% to 34.5% range.

    -- Operating expenses are expected to be in the range of $9.2 to $9.5
       million, which include stock-based compensation expense of
       approximately $0.9 million.

    -- Other income is expected to be approximately $1.0 million, consisting
       primarily of interest income.

    -- The effective tax rate is expected to be approximately 29 percent.

Conference Call

The press release will be followed by a conference call beginning at 1:30
p.m. Pacific time
. To listen to the call, dial (877) 857-6163 (domestic) or
(719) 325-4837 (international) and reference “Pericom.”

A taped replay of the conference call will be made available for five
business days. To listen to the replay, dial (888) 203-1112 and reference
Passcode 4884200.

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.

About Pericom

Pericom Semiconductor Corporation (NASDAQ: PSEM) enables serial
connectivity with the industry’s most complete solutions for the computing,
communications and consumer market segments. Pericom’s analog, digital and
mixed-signal integrated circuits, along with its SaRonix-eCERA frequency
control products are essential in the timing, switching, bridging and
conditioning of high-speed signals required by today’s ever-increasing speed
and bandwidth demanding applications. Company headquarters is in San Jose,
California
, with design centers and technical sales and support offices
globally. http://www.pericom.com

This press release contains forward-looking statements as defined under
The Securities Litigation Reform Act of 1995. Forward-looking statements in
this release include statements regarding Pericom being positioned to resume
strong growth and the statements under the caption ‘Fiscal Q3 Outlook’, which
regard the anticipated revenues, gross margins, operating expenses, other
income and the effective tax rate. The Company’s actual results could differ
materially from what is set forth in such forward-looking statements due to a
variety of risk factors, including softness in demand for our products, price
erosion for certain of our products, unexpected difficulties in developing new
products, customer decisions to reduce inventory, economic or financial
difficulties experienced by our customers, or technological and market
changes. All forward-looking statements included in this document are made as
of the date hereof, based on information available to the Company as of the
date hereof, and Pericom assumes no obligation to update any forward-looking
statements. Parties receiving this release are encouraged to review our
quarterly report on Form 10-Q for the quarter ended September 27, 2008 and in
particular the risk factors sections of that filing.

                           - See Attached Tables -

                      Pericom Semiconductor Corporation
               Condensed Consolidated Statements of Operations
                    (In thousands, except per share data)
                                 (unaudited)

                                     Three Months Ended      Six Months Ended
                                 Dec. 27  Sep. 27  Dec. 29  Dec. 27   Dec. 29
                                   2008     2008     2007     2008     2007

    Net revenues                  $30,732  $43,896  $40,726  $74,628  $79,194

    Cost of revenues               20,013   27,914   25,694   47,927   50,161

       Gross profit                10,719   15,982   15,032   26,701   29,033

    Operating expenses:

       Research and development     4,363    4,221    4,278    8,584    8,360

       Selling, general and
        administrative              5,453    6,901    5,786   12,354   11,625

       Restructuring charge           217        -        -      217        -

            Total                  10,033   11,122   10,064   21,155   19,985

    Income from operations            686    4,860    4,968    5,546    9,048

    Interest and other income       1,264    1,106    1,622    2,370    2,992

    Other than temporary decline
     in value of investment             -      (44)       -      (44)       -

    Income before income tax
     expense                        1,950    5,922    6,590    7,872   12,040

    Income tax expense                147    2,069    2,344    2,216    4,035

    Minority interest in income
     of consolidated subsidiaries     (23)     (45)     (19)     (68)     (16)

    Equity in net income (loss)
     of unconsolidated affiliates     (71)     117      169       46      290

    Net income                     $1,709   $3,925   $4,396   $5,634   $8,279

    Basic income per share          $0.07    $0.15    $0.17    $0.22    $0.32

    Diluted income per share        $0.07    $0.15    $0.16    $0.22    $0.31

    Shares used in computing
     basic income per share        25,418   25,679   25,888   25,549   25,817

    Shares used in computing
     diluted income per share      25,496   26,239   26,959   25,868   26,669

                      Pericom Semiconductor Corporation
                    Condensed Consolidated Balance Sheets
                                (In thousands)

                                                   As of             As of
                                                Dec. 27, 2008    June 28, 2008
                                                (unaudited)
                   Assets
    Current Assets:

          Cash and cash equivalents                $26,888           $41,646
          Short-term investments                    67,405            72,108
          Accounts receivable
                Trade                               26,856            29,002
                Other receivables                    5,561             1,684
          Inventories                               19,690            17,921
          Prepaid expenses and other
           current assets                            1,086             5,943
          Deferred income taxes                      3,957             3,344
                Total current assets               151,443           171,648

    Property, plant and equipment - net             33,759            29,173
    Investments in unconsolidated
     affiliates                                     10,467            10,392
    Deferred income taxes - non current              4,549             4,543
    Long-term investments in marketable
     securities                                     21,644            10,171
    Goodwill                                         1,672             1,325
    Intangible assets                                1,924             1,140
    Other assets                                     2,163             3,191
                Total assets                      $227,621          $231,583

                Liabilities and
                 Shareholders' Equity

    Current liabilities:

          Accounts payable                         $10,430           $13,431
          Accrued liabilities                        5,851             8,779
                Total current liabilities           16,281            22,210

    Long-term debt                                   1,664                 -
    Deferred tax liabilities                           800               800
    Other long term liabilities                      1,018                 -
    Minority interest in consolidated
     subsidiaries                                    1,187             1,118
                Total liabilities                   20,950            24,128

    Shareholders' equity:
          Common stock and paid in
           capital                                 129,488           132,028
          Retained earnings and other
           comprehensive income                     77,183            75,427
                Total shareholders' equity         206,671           207,455

                Total liabilities and
                 shareholders' equity             $227,621          $231,583

SOURCE Pericom Semiconductor Corporation


Source: newswire