Pericom Semiconductor:
Enabling Serial Connectivity
(NASDAQ: PSEM)
Fiscal Q110 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 ”Q2 FY10 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.
Q1 Earnings Overview
Quarterly:
Quarterly revenue of $33.0 M
Up 11% Q-to-Q and down 25% vs. Q1 FY09
End market shipments as % of revenues
Computer at 47%, communication at 32%, consumer at 15%,
other 6%
Geographic distribution as % of revenues
US at 7%, Asia at 89%, Europe at 4%
Channel sales as % of revenues
Domestic distribution at 4%, foreign distribution at 56%,
contract manufacturers at 25%, OEMs at 15%
Q1 Earnings Overview
Quarterly:
Gross margin of 32%
Q1 gross margin increased 328 bps sequentially, and down 454
bps vs. Q1 FY09
Operating expense of $10.9 M vs. $9.5 M last Q included:
Stock base compensation expenses of $930 thousand
Year-end / SOX audit fees of $.5 M
Additional expenses related to accounting review of $1.2 M
Operating loss of $.3 M vs. $1.0 M last Q
Operating loss margin of 1.0 %
Net income of $1.3 M vs. $1.0 M last Q
Net profit margin of 4.1%
GAAP EPS of 5 cents vs. 4 cents last Q
Tax Rate of 36.4% for Q1.
Strong Balance Sheet
Sep. 2009
$4.99
Cash & Investments/Share
$8.51
Book Value/Share
$217M
Shareholders’ Equity
$31M
Total Liabilities
$248M
Total Assets
$141M
Working Capital
$127M
Cash & Investments
Q1 Product Mix and Key Customers
Product mix as % of revenues
IC at 64%
Included analog switch at 29%, digital switch at 9%, silicon clocks
at 8%, connect at 16%, interface at 2%
FCP at 36%
Top five end customers: Dell, Cisco, Gigabyte, HPQ, Garmin
Accounted for 34% of total revenue
One customer accounted for 17% of total revenue
New Products – Q1FY10
Signal Conditioning:
Five ReDriverTM products
Address the new USB ‘SuperSpeed’, SATA2 and DisplayPort video
standards
Target volume Consumer and Computing market segments
Connectivity and Switching:
Six switching and connectivity products supporting USB, DisplayPort,
and HDMI protocols
Target market segments include volume Consumer digital video, PC
notebook, desktop, graphics, and Ultra Mobility platforms such as cell
phones and PDA
Timing:
Four new products
Two advanced low jitter clock generators addressing the Gigabit
Ethernet, PCIe Gen2, and USB3 protocols
Two advanced XO (crystal oscillator) products
Target Networking and Computing market segments
Q2 FY10 Business Outlook
Revenue in the range of $34.0 M to $36.0 M
Gross margin in the 32.5% to 34.0% range
Operating expenses in the range of $9.7 M to $10.5 M
Include stock-based compensation expenses of approximately
$1.0 M
Other income of approximately $0.9 M
Consist primarily of interest income
Net income from unconsolidated affiliates – PTI and JCP of $0.4M
Tax rate of approximately 32.0%
Pericom Semiconductor:
Enabling Serial Connectivity
(Nasdaq: PSEM)
Fiscal 1Q10 Earnings
Q & A
