-- Net revenues improved 9% sequentially and 17% year-over-year to
$35.8 million.
-- Gross profits increased $1.5 million sequentially and $2.1 million
year-over-year.
-- Gross margin of 33.6% improved 166 basis points on a sequential basis
and 126 basis points year-over-year.
-- Net income increased 86% sequentially and 120% year-over-year to $2.5
million.
-- Total shares repurchased during the period were 102,551 shares for
$1,056,399.
Second Quarter 2010 Operating Results
Net revenues for the second quarter were $35.8 million, an increase of 9%
from the $33.0 million reported in the first quarter, and up 17% from the
$30.7 million reported in the comparable period last year. Gross margin was
33.6%, up from 32.0% last quarter, and up from 32.4% in the comparable
period last year. Net revenues for the six-month period ending December 26,
2009 were $68.8 million, down 8% from $74.5 million in the prior year
comparable period. Gross margin in the six-month period ending December 26,
2009 was 32.8%, down from 34.8% in the comparable period last year.
Operating expenses in the quarter were $10.4 million, down from $10.9
million in the previous quarter and up from $10.0 million in the comparable
period last year. Operating expenses in the six-month period ending
December 26, 2009 were $21.3 million, unchanged from the comparable period
last year. Share-based compensation expense in the quarter was $933,000, up
from $930,000 in the previous quarter and up from $904,000 in the
comparable period last year. Stock based compensation expense for the
six-month period ended December 26, 2009 was $1,863,000, up from $1,699,000
in the comparable prior year period.
Net income in the quarter was $2.5 million, or $0.10 per diluted share,
compared with net income of $1.3 million, or $0.05 per diluted share in the
first quarter, and net income of $1.1 million, or $0.04 per diluted share
in the comparable period last year. Net income in the six-month period
ending December 26, 2009 was $3.8 million, or $0.15 per diluted share, down
from $4.8 million, or $0.19 per diluted share in the comparable prior year
period.
"We are pleased to report a strong sequential revenue increase of 9%,
driven by a pickup in demand from all key market segments that we serve,"
said Alex Hui, president and CEO of Pericom. "We achieved a sequential
improvement in gross margin and a reduction in operating overhead, giving
us better operating results. We will continue to drive improvements in
these areas going forward."
"We are happy to see the deployment of our serial connectivity and timing
solutions beyond the digital video and PC markets that we served in recent
years. We initiated the volume shipment of PCIe products into embedded
applications such as multi-function printers and wireless routers. We also
scored multiple design wins with our signal integrity solution at key
networking and server OEMs. With new versions of serial protocols operating
at higher data rates, we expect to see an increasing need for our products.
With its broad connectivity and timing solutions, Pericom is well
positioned to support our key customers in the next phase of growth. We
look forward to resuming our revenue growth and delivering better operating
results in 2010."
New Products
In the December quarter, we continued to expand our serial connectivity
solution with the introduction of 9 new products that work across the
Signal Integrity, Timing and Connectivity product areas:
-- Expanding its solutions for high speed serial protocol signal
integrity, Pericom introduced 2 new ReDriver™ products addressing
high speed serial SATA (Serial ATA) and DisplayPort protocols. These
products address volume computing and ultra-mobility market segments.
-- Adding to high speed Connectivity solutions, Pericom introduced 3 new
switching and connectivity products targeted across PCIe Gen2, HDMI,
and USB 2.0 protocols. The USB 2.0 product integrates industry leading
features for ultra-mobility (cell phone) platforms. Other target
segments include volume computing.
-- Expanding its timing solutions for next generation platforms, Pericom
introduced 4 new products in the past quarter -- 2 advanced crystal
oscillators (XO) and 2 clock generator/buffers -- all targeting next
generation networking and ultra-mobility market segments.
Share Repurchase Update
On April 29, 2008, our Board of Directors authorized the repurchase of an
additional $30 million of our common stock. Pursuant to the 2008
authority, the Company repurchased 102,551 shares in the three months ended
December 26, 2009 for an aggregate cost of $1,056,399 and an average per
share purchase price of $10.30. The remaining balance of potential share
repurchases under the 2008 authority is approximately $25.4 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 $34.0 million to $36.0 million.
-- Gross margins are expected to be in the 33% to 35% range.
-- Operating expenses are expected to be in the range of $9.8 to $10.4
million, which include stock-based compensation expense of
approximately $1.0 million.
-- Other income is expected to be approximately $1.1 million.
-- Net income from unconsolidated affiliates PTI and JCP is expected
to be approximately $0.4 million.
-- The effective tax rate is expected to be approximately 33%.
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 (888) 278-8459 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.
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
conference number 5436348. 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 (
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
As of As of
Dec 26, 2009 Jun 27, 2009
--------------- ---------------
Assets
Current Assets:
Cash & cash equivalents $ 31,547 $ 37,321
Restricted cash 3,141 3,200
Short-term investments 74,075 75,471
Accounts receivable - trade 22,068 22,875
Inventories 18,994 16,340
Prepaid expenses and other current
assets 3,769 3,738
Deferred income taxes 2,700 2,433
--------------- ---------------
Total current assets 156,294 161,378
Property, plant and equipment-net 49,372 47,238
Investments in unconsolidated affiliates 11,903 10,826
Deferred income taxes non current 3,710 4,657
Long-term investments in marketable
securities 20,439 11,780
Goodwill 1,681 1,673
Intangible assets 1,617 1,764
Other assets 7,159 6,742
--------------- ---------------
Total assets $ 252,175 $ 246,058
=============== ===============
Liabilities and Shareholders'
Equity
Current liabilities:
Accounts payable $ 12,359 $ 10,824
Accrued liabilities 13,589 15,118
Current portion of long-term debt 122 60
--------------- ---------------
Total current liabilities 26,070 26,002
Long-term debt 1,582 1,610
Industrial development subsidy 4,198 3,718
Other long-term liabilities 1,287 1,287
--------------- ---------------
Total liabilities 33,137 32,617
Shareholders' equity:
Common stock and paid in capital 135,013 133,162
Retained earnings and other
comprehensive income 84,025 79,046
--------------- ---------------
Total Pericom shareholders'
equity 219,038 212,208
Noncontrolling interests in
consolidated subsidiaries - 1,233
--------------- ---------------
Total equity 219,038 213,441
--------------- ---------------
Total liabilities and equity $ 252,175 $ 246,058
=============== ===============
Pericom Semiconductor Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
---------------------------- ------------------
Dec 26 Sep 26 Dec 27 Dec 26 Dec 27
2009 2009 2008 2009 2008
-------- -------- -------- -------- --------
Net revenues $ 35,805 $ 32,952 $ 30,732 $ 68,757 $ 74,530
Cost of revenues 23,762 22,416 20,785 46,178 48,590
-------- -------- -------- -------- --------
Gross profit 12,043 10,536 9,947 22,579 25,940
Operating expenses:
Research and
development 4,336 4,046 4,363 8,382 8,584
Selling, general and
administrative 6,035 6,828 5,453 12,863 12,354
Restructuring charge - - 217 - 217
-------- -------- -------- -------- --------
Total
operating
expenses 10,371 10,874 10,033 21,245 21,155
-------- -------- -------- -------- --------
Income from operations 1,672 (338) (86) 1,334 4,785
Interest and other income 1,288 1,643 1,264 2,931 2,370
Other than temporary
decline in value of
investment - - - - (458)
-------- -------- -------- -------- --------
Income before income
taxes 2,960 1,305 1,178 4,265 6,697
Income tax expense 1,002 475 (46) 1,477 1,884
-------- -------- -------- -------- --------
Income from consolidated
companies 1,958 830 1,224 2,788 4,813
Equity in net income
(loss) of unconsolidated
affiliates 536 527 (71) 1,063 46
-------- -------- -------- -------- --------
Net income 2,494 1,357 1,153 3,851 4,859
Net income attributable
to noncontrolling
interests (6) (22) (23) (28) (68)
-------- -------- -------- -------- --------
Net income attributable
to Pericom shareholders $ 2,488 $ 1,335 $ 1,130 $ 3,823 $ 4,791
======== ======== ======== ======== ========
Basic income per share to
Pericom shareholders $ 0.10 $ 0.05 $ 0.04 $ 0.15 $ 0.19
======== ======== ======== ======== ========
Diluted income per share
to Pericom shareholders $ 0.10 $ 0.05 $ 0.04 $ 0.15 $ 0.19
======== ======== ======== ======== ========
Shares used in computing
basic income per share 25,543 25,509 25,418 25,526 25,549
======== ======== ======== ======== ========
Shares used in computing
diluted income per share 25,911 25,678 25,496 25,795 25,868
======== ======== ======== ======== ========
Pericom Semiconductor Corporation
Share-Based Compensation
(In thousands)
(unaudited)
Three Months Ended
--------------------------------------
Dec 26 Jun 27 Dec 27
2009 2009 2008
------------ ------------ ------------
Manufacturing $ 65 $ 67 $ 63
Research & development 342 354 352
Selling, general & administrative 526 467 489
------------ ------------ ------------
$ 933 $ 888 $ 904
============ ============ ============
Contact Information: Contact: Robert Strickland Pericom Semiconductor Tel: 408 435-0800