SOURCE: Pericom Semiconductor Corporation

Pericom Semiconductor Corporation

May 03, 2010 16:05 ET

Pericom Semiconductor Reports Fiscal Third Quarter 2010 Financial Results

SAN JOSE, CA--(Marketwire - May 3, 2010) -


--  Fiscal third quarter results exceeded guidance.
--  Net revenues increased 2.4% sequentially, and 50% year-over-year.
--  Gross margin increased 166 basis points sequentially.
--  GAAP net income attributable to Pericom shareholders increased 23%
    sequentially and 1,093% year-over-year.

Pericom Semiconductor Corporation (NASDAQ: PSEM), a worldwide supplier of high-speed integrated circuits and frequency control products, today announced results for its fiscal third quarter ended March 27, 2010.

Net revenues for the third quarter were $36.7 million, an increase of 2.4% from the $35.8 million reported in the second quarter, and up 50% from the $24.4 million reported in the comparable period last year.

Gross margin was 35.3%, up from 33.6% last quarter, and down slightly from 35.5% in the comparable period last year.

GAAP net income attributable to Pericom shareholders for the third quarter was $3.1 million, or $0.12 per diluted share, compared with net income of $2.5 million, or $0.10 per diluted share in the second quarter, and net income of $256,000, or $0.01 per diluted share in the comparable period last year.

"We are pleased to report a sequential revenue increase, driven by increased demand from computing and networking/telecom market segments," said Alex Hui, President and CEO of Pericom. "We continued to expand gross margin and control operating expenses, which led to a 49% improvement in operating results compared with last quarter."

"The book to bill ratio was significantly higher than one for the quarter just concluded and the strong booking trend has continued during the first month of our Q4. We continue to expand our end market solutions for high speed serial connectivity with an ongoing stream of new products. With improved end market demand and a robust pipeline of new design wins going into production during the next few quarters, we believe Pericom is well positioned to continue delivering both revenue growth and better operating results."

New Products

In the March quarter, we continued to expand our serial connectivity solution with the introduction of 14 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
    SATA3, SAS2 and DisplayPort protocols. These products address server,
    storage and computing market segments.

--  Adding to high speed Connectivity solutions, Pericom introduced 6 new
    charger management, switching and connectivity products targeted across
    PCIe, HDMI, VGA, and USB 2.0/3.0 protocols. The USB 2.0/3.0 charger
    management products offer high level integration for notebook
    applications. These products target the computing, server, networking
    and embedded market segments.

--  Expanding its timing solutions for next generation platforms, Pericom
    introduced 6 new products in the past quarter -- 3 advanced crystal
    oscillators (XO) and 3 clock generator/buffers -- all targeting next
    generation networking, server, storage and ultra-mobility market
    segments.

Share Repurchase Update

On April 29, 2008, our Board of Directors authorized the repurchase of $30 million of our common stock. Pursuant to the 2008 authority, the Company repurchased 337,586 shares in the three months ended March 27, 2010 for an aggregate cost of $3,194,220 and an average per share purchase price of $9.46. The remaining balance of potential share repurchases under the 2008 authority is approximately $22.2 million.

Fiscal Q4 Outlook

The following statements are based on current expectations. These statements are forward looking, and actual results may differ materially. Our fourth fiscal quarter is a 14-week period this year, and the outlook reflects the additional week.

--  Revenues in the fourth fiscal quarter are expected to be in the range
    of $40.0 million to $42.0 million.

--  Gross margins are expected to be in the 35% to 36% range.

--  Operating expenses are expected to be in the range of $11.2 to $11.7
    million, which include stock-based compensation expense of
    approximately $1.1 million.

--  Other income is expected to be approximately $1.1 million.

--  Net income from unconsolidated affiliates PTI and JCP is expected to be
    approximately $0.6 million.

--  The effective tax rate is expected to be approximately 34%.

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) 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 five business days. To listen to the replay, dial (800) 642-1687 and reference conference number 71620896.

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 the statements under the caption 'Fiscal Q4 Outlook', which regard the anticipated revenues, gross margin, operating expenses, other income and tax rate in the fourth fiscal quarter, and statements regarding continuing to drive improvements in gross margin and operating overhead, an increasing need for our products, Pericom being well positioned for the next phase of growth, continuing revenue growth and delivering better operating results for the rest of 2010. 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 December 26, 2009, our annual report on Form 10-K for the year ended June 27, 2009, and, in particular, the risk factors sections contained in those reports.

- See Attached Tables -

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

                             Three Months Ended         Nine Months Ended
                         ---------------------------  --------------------
                          Mar 27   Dec 26    Mar 28     Mar 27     Mar 28
                           2010     2009      2009       2010       2009
                         -------- --------  --------  ---------  ---------

Net revenues             $ 36,661 $ 35,805  $ 24,394  $ 105,418  $  98,924

Cost of revenues           23,723   23,762    15,731     69,900     64,321
                         -------- --------  --------  ---------  ---------

   Gross profit            12,938   12,043     8,663     35,518     34,603

Operating expenses:

   Research and
    development             4,251    4,336     3,996     12,633     12,580

   Selling, general and
    administrative          6,201    6,035     5,136     19,065     17,490

   Restructuring charge         -        -       293          -        510
                         -------- --------  --------  ---------  ---------

           Total operating
            expenses       10,452   10,371     9,425     31,698     30,580
                         -------- --------  --------  ---------  ---------

Income from operations      2,486    1,672      (762)     3,820      4,023

Interest and other income   1,219    1,288     1,501      4,150      3,871

Other than temporary
 decline in value of
 investment                     -        -       (48)         -       (506)
                         -------- --------  --------  ---------  ---------

Income before income
 taxes                      3,705    2,960       691      7,970      7,388

Income tax expense          1,260    1,002       460      2,737      2,344
                         -------- --------  --------  ---------  ---------

Net income from
 consolidated companies     2,445    1,958       231      5,233      5,044

Equity in net income of
 unconsolidated affiliates    608      536        49      1,671         95
                         -------- --------  --------  ---------  ---------

Net income                  3,053    2,494       280      6,904      5,139

Net income attributable to
 noncontrolling interests       -       (6)      (24)       (28)       (92)
                         -------- --------  --------  ---------  ---------

Net income attributable
 to Pericom shareholders $  3,053 $  2,488  $    256  $   6,876  $   5,047
                         ======== ========  ========  =========  =========

Basic income per share
 to Pericom shareholders $   0.12 $   0.10  $   0.01  $    0.27  $    0.20
                         ======== ========  ========  =========  =========

Diluted income per share
 to Pericom shareholders $   0.12 $   0.10  $   0.01  $    0.27  $    0.20
                         ======== ========  ========  =========  =========

Shares used in computing
 basic income per share    25,386   25,543    25,218     25,479     25,438
                         ======== ========  ========  =========  =========

Shares used in computing
 diluted income per share  25,697   25,911    25,282     25,762     25,673
                         ======== ========  ========  =========  =========





                    Pericom Semiconductor Corporation
                  Condensed Consolidated Balance Sheets
                              (In thousands)
                                (unaudited)

                                                          As of     As of
                                                         Mar 27,   Jun 27,
                                                           2010      2009
                                                        --------- ---------
          Assets

Current Assets:

    Cash & cash equivalents                             $  34,528 $  37,321
    Restricted cash                                             -     3,200
    Short-term investments                                 74,933    75,471
    Accounts receivable - trade                            22,458    22,875
    Inventories                                            18,605    16,340
    Prepaid expenses and other current assets               4,147     3,738
    Deferred income taxes                                   2,674     2,433
                                                        --------- ---------
          Total current assets                            157,345   161,378

Property, plant and equipment-net                          49,274    47,238
Investments in unconsolidated affiliates                   12,495    10,826
Deferred income taxes non current                           3,767     4,657
Long-term investments in marketable securities             16,898    11,780
Goodwill                                                    1,685     1,673
Intangible assets                                           1,543     1,764
Other assets                                                7,440     6,742
                                                        --------- ---------
          Total assets                                  $ 250,447 $ 246,058
                                                        ========= =========


          Liabilities and Shareholders' Equity

Current liabilities:

    Accounts payable                                    $  11,140 $  10,824
    Accrued liabilities and other                          10,555    15,118
    Current portion of long-term debt                         123        60
                                                        --------- ---------
          Total current liabilities                        21,818    26,002

Long-term debt                                              1,570     1,610
Industrial development subsidy                              4,822     3,718
Other long-term liabilities                                 1,522     1,287
                                                        --------- ---------
          Total liabilities                                29,732    32,617

Shareholders' equity:
    Common stock and paid in capital                      133,297   133,162
    Retained earnings and other comprehensive income       87,418    79,046
                                                        --------- ---------
          Total Pericom shareholders' equity              220,715   212,208
    Noncontrolling interests in consolidated
     subsidiaries                                               -     1,233
                                                        --------- ---------
          Total shareholders' equity                      220,715   213,441
                                                        --------- ---------

          Total liabilities and shareholders' equity    $ 250,447 $ 246,058
                                                        ========= =========



                    Pericom Semiconductor Corporation
                         Share-Based Compensation
                              (In thousands)
                                (unaudited)

                                                              Nine Months
                                       Three Months Ended        Ended
                                    ----------------------- ---------------
                                    Mar 27  Dec 26  Mar 28  Mar 27  Mar 28
                                      2010   2009    2009    2010    2009
                                    ------- ------- ------- ------- -------

Manufacturing                       $    70 $    65 $    72 $   198 $   192

Research & development                  371     342     393   1,065   1,048

Selling, general & administrative       557     526     533   1,598   1,458
                                    ------- ------- ------- ------- -------

                                    $   998 $   933 $   998 $ 2,861 $ 2,698
                                    ======= ======= ======= ======= =======

Contact Information

  • Contact:
    Robert Strickland
    Pericom Semiconductor
    Tel: 408 435-0800
    Email Contact