Pericom Semiconductor:
Enabling Serial Connectivity
(Nasdaq: PSEM)
Fiscal Q409 Earnings
1
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 ”Q1 FY10 Business Outlook”, which sets forth expected revenues, gross margin and other
financial results for the fiscal fourth 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
Q4 Earnings Overview
Quarterly:
Quarterly revenue of $29.7 M
Up 22% Q-to-Q and down 31% vs. Q4 FY08
End market shipments as % of revenues
Computer at 44%, communication at 33%, consumer at 17%,
other 6%
Geographic distribution as % of revenues
US at 8%, Asia at 89%, Europe at 3%
Channel sales as % of revenues
Domestic distribution at 5%, foreign distribution at 51%,
contract manufacturers at 27%, OEMs at 17%
3
Q4 Earnings Overview
Quarterly:
Gross margin of 28.7%
Q4 gross margin decreased 682 bps sequentially, and down
729 bps vs. Q4 FY08
Operating expense of $9.5 M vs. $9.4 M last Q
Included stock base compensation expenses of $888 thousand
and restructuring cost $74 thousand
Operating loss of $1.0 M vs. $.8 M last Q
Operating loss margin of 3.4 %
Net income of $1.0 M vs. $.3 M last Q
Net profit margin of 3.5%
GAAP EPS of 4 cent vs. 1 cents last Q
Tax Rate of -20.1% for Q4. YTD Effective Tax Rate was 26.9%
4
FY09 Earnings Overview
Annually:
Gross margin of 33.5%
FY09 gross margin decreased 318 bps vs. FY08
Operating expense of $40.1 M vs. $40.8 M last year
Included stock base compensation expenses of $3.6 M and
restructuring cost $.6 M
Operating income of $3.0 M vs. $19.3 M last year
Operating income margin of 2.3 %
Net income of $6.1 M vs. $17.0 M last year
Net profit margin of 4.7%
GAAP EPS of 24 cent vs. 66 cents last year
YTD Tax Rate of 26.9%
5
Strong Balance Sheet
Cash & Investments $128M
Working Capital $135M
Total Assets $246M
Total Liabilities $34M
Shareholders’ Equity $212M
Book Value/Share $8.37
Cash & Investments/Share $5.04
Jun. 2009
6
Q4 Product Mix and Key Customers
Product mix as % of revenues
IC at 57%
Included analog switch at 26%, digital switch at 8%, silicon clocks
at 7%, connect at 13%, interface at 3%
FCP at 43%
Top five end customers: Dell, Cisco, Western Digital, Acer, Toshiba
Accounted for 29% of total revenue
One customer accounted for 13% of total revenue
7
New Products – Q4FY09
Signal Conditioning:
2 new ReDriverTM products supporting the 6Gb/s SATA (Serial ATA)
protocol for Media Storage, and for DP(Display Port) digital video
protocol. The DP ReDriver is a ‘first to market’ for feature set.
Target next generation volume NB/DT applications for storage media
attachment, and for advanced digital video and graphics.
Connectivity and Switching:
7 new switching and bridge products for USB, DP video, and PCI Express
serial protocol applications.
Target volume Consumer digital video, PC notebook, desktop, and
graphics, and Ultra Mobility platforms such as cell phones and PDA.
One of the PCIe products is a ‘first to market’ for feature set.
Timing:
1 new Timing product – an advanced PCIe Gen 2 (5Gb/s) ‘ quad output’
clock generator featuring extremely low jitter.
Target Networking and PC Peripherals market segment, with applications
such as wireless router and other networking applications, and multi-
function printers.
8
Q1 FY10 Business Outlook
Revenue in the range of $31.5 M to $32.5 M
Gross margin in the 31.0% to 33.0% range
Operating expenses in the range of $10.5 M to $11.5 M
Include stock-based compensation expenses of approximately
$0.9 M
Expenses in Q4 will be higher mainly due to fiscal year-end /
SOX compliance activities, and the additional expenses related
to accounting review of $1.2M.
Other income of approximately $1.3 M
Consist primarily of interest income
Net income from unconsolidated affiliates – PTI and JCP of $0.4M
to $0.5M
Tax rate of approximately 32.0%
9
Pericom Semiconductor:
Enabling Serial Connectivity
(Nasdaq: PSEM)
Fiscal 4Q09 Earnings
Q & A
10
