-- 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