Pericom Semiconductor:
Enabling Serial Connectivity
(Nasdaq: PSEM)
Fiscal 1Q09 Earnings
Safe Harbor
This presentation will include remarks about future expectations, plans and prospects for Pericom
which constitute forward-looking statements for purposes of the safe-harbor provisions under
applicable federal securities laws. Such forward-looking statements include the statements in the slide
entitled ”Q2 FY09 Business Outlook”, which sets forth expected revenues, gross margin and other
financial results for the fiscal second quarter
Actual results may differ materially from our forward-looking statements, as a result of various
important risks and uncertainties, including unexpected softness in demand for our products, price
erosion for certain of our products, customer decisions to reduce inventory and other risks and
uncertainties which are detailed and may be reviewed in the Company’s filings with the SEC.
All forward-looking statements included in this presentation are made as of the date of this
presentation, and Pericom expressly disclaims any obligation to update the information provided in
this presentation, except as required by law.
We encourage you to review our most recent annual report on Form 10-K and our most recent
quarterly report on Form 10-Q filed with the SEC and, in particular the risk factor sections of those
filings.
2
Recent Earnings Overview
Quarterly:
Quarterly revenue of $43.9 M
Up 1.2% Q-to-Q and up 14.1 % vs. Q1 FY08
End market shipments as % of revenues
Computer at 44%, communication at 34%, consumer at 17%,
other 5%
Geographic distribution as % of revenues
US at 6%, Asia at 91%, Europe at 3%
Channel sales as % of revenues
Domestic distribution at 3%, foreign distribution at 49%,
contract manufacturers at 30%, OEMs at 18%
3
Recent Earnings Overview
Quarterly:
Gross margin of 36.4%
Q1 gross margin up 40 bps sequentially, and flat vs. Q1
FY08
Operating expense of $11.1 M vs. $10.6 M last Q
Included stock base compensation expenses of $0.8M
Operating income of $4.9 M vs. $5.0 M last Q
Operating margin of 11.1 %
Net income of $3.9 M vs. $4.6 M last Q
Net profit margin of 8.9%
GAAP EPS of 15 cents vs. 17 cents last Q
Tax Rate of 35%
4
Strong Balance Sheet
Cash & Investments $121M
Working Capital $124M
Total Assets $232M
Total Liabilities $26M
Shareholders’ Equity $207M
Book Value/Share $8.05
Cash & Investments/Share $4.71
Sept. 2008
5
Q1 FY09 vs. Q1 FY08
1%
$3.93M
$3.88M
Net income
19%
$4.86M
$4.08M
Operating Income
12%
$11.12M
$9.92M
Expenses
14%
$15.98M
$14.00M
Gross Profit
14%
$43.90M
$38.47M
Revenue
% Change
Q1 FY09
Q1 FY08
6
Product Mix and Key Customers
Product mix as % of revenues
IC at 58%
Included analog switch at 21%, digital switch at 11%,
silicon clocks at 8%, connect at 13%, interface at 5%
FCP at 42%
Top five end customers: Dell, Cisco, Acer, HPQ, Garmin
Accounted for 29% of total revenue
One customer accounted for 10% of total revenue
7
New Products
Signal Conditioning:
Six switch products to address need for seamless switching
of multiple display or display port options
Targets volume Notebook, Desktop PCs
Timing:
A family of 'industry first' PCIe Gen2 very low jitter clock
oscillator/buffers
Targets Server, SetTop, Wireless, and Networking platforms
Connectivity:
An ‘industry first’ PCIe packet switch
Targets volume Computing, Consumer and Networking
platforms
8
Growth via Enabling Serial Connectivity
Migration of system connectivity from PARALLEL interface to
high-speed SERIAL interface
Billion dollar market opportunity with broad applications in
Computer, Communication and Consumer segments
Pericom is reaping the benefits of being an early enabler of
serial connectivity with key IPs and broad solutions
Shipment into Ethernet, PCIe Gen I, Gen II, HDMI and USB
applications now
Production ramp with DisplayPort, eSATA solutions in 1H
FY2009
Legacy Parallel, Single-Ended Interface:
(ISA, PCI, PCI-X, RS 232, ATA, SCSI…)
Serial Differential Interface:
(1Gb / 10Gb Ethernet, USB, PCI Express,
HDMI, DisplayPort, Fiber Channel, SAS,
SATA…)
9
Q2 FY09 Business Outlook
Revenue in the range of $36.0 M to $40.0 M
Gross margin in the 35.0% to 36.0% range
Operating expenses in the range of $10.6 M to $11.0 M
Include stock-based compensation expenses of
approximately $0.9 M
Other income of approximately $1.0 M
Tax rate of approximately 34.0%
10
Pericom Semiconductor:
Enabling Serial Connectivity
(Nasdaq: PSEM)
Fiscal 1Q09 Earnings
Q & A
