-- Net revenues increased 3% sequentially, and 30% year-over-year. -- GAAP net income attributable to Pericom shareholders increased 143% sequentially and 612% year-over-year.Pericom Semiconductor Corporation (
-- Expanding our solutions for high-speed serial protocol signal
integrity, Pericom introduced 6 new ReDriver(tm) products for PCIe
3.0, SATA3, SAS2, eSATA, and DisplayPort™ protocols. These
products address volume PC, server, storage, networking, and
embedded market segments.
-- Adding to our high-speed connectivity solutions, we introduced
a new switching and connectivity product supporting the new PCIe
3.0 8Gbps speed.
-- We expanded our timing solutions for next generation platforms by
introducing 5 new products: 4 advanced clock generators and clock
buffers supporting the new PCIe 3.0 8Gbps speed, and one advanced
voltage controlled crystal oscillator (VCXO) targeting new cell
phone chipsets for the ultra mobility market segment.
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 163,161 shares in the three months ended October 2, 2010 for an
aggregate cost of $1,409,467 and an average per share purchase price of
$8.64. The remaining balance of potential share repurchases under the 2008
authority is approximately $16.4 million.
PTI Acquisition
During the first quarter, Pericom acquired all remaining outstanding shares
of Pericom Technology, Inc. ("PTI") for approximately $30.6 million in
cash, with a potential for an additional payment of up to $6 million in
earn-out consideration and bonus for the achievement of certain milestones
during our fiscal 2011. Pericom previously held a 40.4% ownership in PTI
on a fully diluted basis and accounted for its investment in PTI using the
equity method due to Pericom's significant influence over its operations.
PTI is a fabless IC provider of timing, power management, and analog switch
products that are sold primarily to Asian telecom, consumer, and
ultra-mobility market segments. The company was incorporated in the
British Virgin Islands in 1994, and is headquartered in Hong Kong, with
significant operations in Shanghai and Shenzhen, People's Republic of
China. For additional information about the PTI acquisition, please refer
to the Pericom press release library at http://www.pericom.com/press/211/
and click on the link for the press release dated August 9, 2010 describing
Pericom's acquisition of PTI.
Fiscal Q2 2011 Outlook
The following statements are based on current expectations. These
statements are forward looking, and actual results may differ materially.
-- Revenues in the second fiscal quarter are expected to be in the
range of $40 million to $42 million.
-- Non-GAAP gross margins are expected to be in the 36% to 39% range.
-- 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 $0.7 million.
-- The effective tax rate is expected to be approximately 33-34%.
Conference Call
The press release will be followed by a conference call beginning at 1:30
p.m. Pacific time on November 2, 2010. 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, November 9th. 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
-------------------------------------------
October 2, July 3, September 26,
2010 2010 2009
-------------- -------------- -------------
Net revenues $ 42,775 $ 41,495 $ 32,952
Cost of revenues 28,240 26,246 22,416
-------------- -------------- -------------
Gross profit 14,535 15,249 10,536
Operating expenses:
Research and development 4,397 4,575 4,046
Selling, general and
administrative 7,742 7,413 6,828
-------------- -------------- -------------
Total operating
expenses 12,139 11,988 10,874
-------------- -------------- -------------
Income (loss) from operations 2,396 3,261 (338)
Interest and other income 11,936 1,072 1,643
-------------- -------------- -------------
Income before income taxes 14,332 4,333 1,305
Income tax expense 5,378 1,174 475
-------------- -------------- -------------
Net income from consolidated
companies 8,954 3,159 830
Equity in net income of
unconsolidated affiliates 556 759 527
-------------- -------------- -------------
Net income 9,510 3,918 1,357
Net income attributable to
noncontrolling interests - - (22)
-------------- -------------- -------------
Net income attributable to
Pericom shareholders $ 9,510 $ 3,918 $ 1,335
============== ============== =============
Basic income per share to
Pericom shareholders $ 0.38 $ 0.16 $ 0.05
============== ============== =============
Diluted income per share to
Pericom shareholders $ 0.38 $ 0.15 $ 0.05
============== ============== =============
Shares used in computing basic
income per share 24,890 25,210 25,509
============== ============== =============
Shares used in computing
diluted income per share 25,263 25,582 25,678
============== ============== =============
Pericom Semiconductor Corporation
Condensed Consolidated Statements of Operations
(In thousands)
(unaudited)
Three Months Ended
--------------------------------------------
October 2, July 3, September 26,
2010 2010 2009
-------------- -------------- --------------
Share-based compensation
Cost of revenues $ 73 $ 88 $ 63
Research and development 390 441 352
Selling, general and
administrative 600 659 515
-------------- -------------- --------------
Share-based compensation
expense $ 1,063 $ 1,188 $ 930
Amortization of intangible
assets
Cost of revenues $ 269 $ 29 $ 29
Selling, general and
administrative 129 54 54
-------------- -------------- --------------
Amortization of
intangible assets $ 398 $ 83 $ 83
Pericom Semiconductor Corporation
Reconciliation of GAAP Net Income to Non-GAAP Net Income
(In thousands)
(unaudited)
Three Months Ended
-------------------------------------------
October 2, July 3, September 26,
2010 2010 2009
------------- ------------- -------------
GAAP net income $ 9,510 $ 3,918 $ 1,335
Reconciling items:
Share-based compensation
expense 1,063 1,188 930
Amortization of intangible
assets 398 83 83
Fair value adjustment
amortization on acquired
inventory 202 - -
Gain on previously held
interest at PTI (11,004) - -
Acquisition-related costs 594 - -
Interest expense accrual
relating to PTI acquisition
earnout 74 - -
Fair value adjustment to
depreciation expense on
acquired fixed assets 15 - -
Compensation expense accrual
relating to PTI acquisition 128 - -
Tax effect of adjustments 3,341 (380) (255)
------------- ------------- -------------
Total reconciling items (5,189) 891 758
------------- ------------- -------------
Non-GAAP net income $ 4,321 $ 4,809 $ 2,093
============= ============= =============
Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS
(unaudited)
Diluted net income per share:
GAAP diluted income
per share $ 0.38 $ 0.15 $ 0.05
Adjustments:
Share-based compensation
expense 0.04 0.05 0.04
Amortization of intangible
assets 0.02 0.00 0.00
Fair value adjustment
amortization on acquired
inventory 0.01 - -
Gain on previously held
interest at PTI (0.44) - -
Acquisition-related costs 0.02 - -
Interest expense accrual
relating to earnout 0.00 - -
Fair value adjustment to
depreciation expense on
acquired fixed assets 0.00 - -
Compensation expense accrual
relating to PTI acquisition 0.01 - -
Tax effect of adjustments 0.13 (0.01) (0.01)
------------- ------------- -------------
Total adjustments (0.21) 0.04 0.03
------------- ------------- -------------
Non-GAAP diluted income per
share $ 0.17 $ 0.19 $ 0.08
============= ============= =============
Shares used in diluted net
income per share calculation:
GAAP 25,263 25,582 25,678
Exclude the benefit of
share-based compensation
expense (1) 265 265 134
------------- ------------- -------------
Non-GAAP 25,528 25,847 25,812
============= ============= =============
(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
-------------------------------------------
October 2, July 3, September 26,
2010 2010 2009
------------- ------------- -------------
GAAP gross margin $ 14,535 $ 15,249 $ 10,536
- % of revenues 34.0% 36.7% 32.0%
Reconciling items:
Share-based compensation 73 88 63
Amortization of intangible
assets 269 29 29
Fair value adjustment
amortization on acquired
inventory 202 - -
Fair value adjustment to
depreciation expense on
acquired fixed assets 1 - -
Compensation expense accrual
relating to PTI acquisition 37 - -
------------- ------------- -------------
Total reconciling items 582 117 92
------------- ------------- -------------
Non-GAAP gross margin $ 15,117 $ 15,366 $ 10,628
============= ============= =============
- % of revenues 35.3% 37.0% 32.3%
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses
(unaudited)
GAAP operating expenses $ 12,139 $ 11,988 $ 10,874
- % of revenues 28.4% 28.9% 33.0%
Reconciling items:
Share-based compensation (990) (1,100) (867)
Amortization of intangible
assets (129) (54) (54)
Acquisition-related costs (594) - -
Fair value adjustment to
depreciation expense on
acquired fixed assets (14) - -
Compensation expense accrual
relating to PTI acquisition (91) - -
------------- ------------- -------------
Total reconciling items (1,818) (1,154) (921)
------------- ------------- -------------
Non-GAAP operating expenses $ 10,321 $ 10,834 $ 9,953
============= ============= =============
- % of revenues 24.1% 26.1% 30.2%
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
As of As of
October 2, July 3,
2010 2010
-------------- --------------
Assets
Current assets:
Cash and cash equivalents $ 27,904 $ 29,495
Restricted cash 3,807 -
Short-term investments 80,502 76,454
Accounts receivable - trade 26,089 25,365
Inventories 31,015 23,431
Prepaid expenses and other current assets 7,204 6,825
Deferred income taxes 3,216 3,119
-------------- --------------
Total current assets 179,737 164,689
Property, plant and equipment-net 58,593 50,760
Investments in unconsolidated affiliates 2,423 13,183
Deferred income taxes non current 3,670 3,868
Long-term investments in marketable
securities 4,746 12,977
Goodwill 15,909 1,681
Intangible assets 17,195 1,452
Other assets 9,754 7,438
-------------- --------------
Total assets $ 292,027 $ 256,048
============== ==============
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 13,959 $ 15,585
Accrued liabilities and other 22,177 10,781
Short-term debt 6,279 -
-------------- --------------
Total current liabilities 42,415 26,366
Industrial development subsidy 8,156 6,577
Other long-term liabilities 8,132 1,199
-------------- --------------
Total liabilities 58,703 34,142
Shareholders' equity:
Common stock and paid in capital 130,519 130,536
Retained earnings and other comprehensive
income 102,805 91,370
-------------- --------------
Total Pericom shareholders' equity 233,324 221,906
-------------- --------------
Total liabilities and shareholders'
equity $ 292,027 $ 256,048
============== ==============
Contact Information: Contact: Aaron Tachibana Pericom Semiconductor Tel: 408 435-0800