Exhibit 99.1
| NEWS RELEASE |  |
CONTACT:
Jay Biskupski, Chief Financial Officer
ir@psemi.com
858-731-9400
Investor Relations:
The Blueshirt Group
Suzanne Craig or Melanie Friedman
415-217-4962; 415-217-4964
Suzanne@blueshirtgroup.com
Melanie@blueshirtgroup.com
Peregrine Semiconductor Announces Fourth Quarter and Full Year 2012 Financial Results
San Diego, California, February 6, 2013—Peregrine Semiconductor Corporation (Peregrine Semiconductor) (NASDAQ: PSMI), a fabless provider of high-performance radio frequency integrated circuits (RFICs), today announced its fourth quarter and 2012 fiscal year financial results.
Fourth quarter 2012 revenue was $63.0 million, compared with $35.5 million for the same period in 2011. Revenue for fiscal year 2012 was $203.9 million, compared with $107.8 million for fiscal year 2011.
As reported under U.S. generally accepted accounting principles (GAAP), fourth quarter 2012 net income was $5.6 million, compared with a GAAP net loss of $2.7 million in the same period in 2011. Net income for fiscal year 2012 was $7.3 million, compared with a GAAP net loss of $9.7 million for fiscal year 2011. Diluted net income per share for the fourth quarter of 2012 was $0.15 per share compared to a net loss per share of $0.99 for the same period in 2011. Diluted net income per share attributable to common stockholders* for fiscal year 2012 was $0.15 per share compared to a net loss per share of $3.57 for fiscal year 2011.
Non-GAAP net income for the fourth quarter of 2012 was $6.9 million, or $0.19 per diluted share based on weighted average shares outstanding of 36.5 million. This compares with non-GAAP net loss of $1.8 million or $0.07 per diluted share based on weighted average shares outstanding of 25.1 million for the same period in 2011. Non-GAAP net income for the fiscal year 2012 was $11.7 million, or $0.36 per diluted share** based on weighted average shares outstanding of 32.2 million giving effect to the conversion of the preferred stock at the beginning of the year. This compares with non-GAAP net loss of $6.6 million or $0.26 per diluted share based on weighted average shares outstanding of 25.1 million for fiscal year 2011.
| NEWS RELEASE | |
Gross margin on a GAAP basis for the fourth quarter of 2012 was 43.3% of revenue, compared to 30.1% of revenue for the same period in 2011. Gross margin on a non-GAAP basis for the fourth quarter of 2012 was 43.6% of revenue, compared to 30.4% of revenue for the same period in 2011. Gross margin on a GAAP basis for fiscal year 2012 was 39.1% of revenue, compared to 34.2% of revenue for fiscal year 2011. Gross margin on a non-GAAP basis for fiscal year 2012 was 39.4% of revenue, compared to 34.6% of revenue for fiscal year 2011.
“Coming off a record fourth quarter that completed a successful fiscal 2012, we continue to see our technology being widely accepted in many of the world’s most successful smartphones, and we are expanding well in our targeted growth markets,” commented Jim Cable, Chief Executive Officer. “Presently we are addressing short-term challenges related to the demand for certain OEM mobile devices, but we remain confident that the continued adoption of LTE smartphones, our increasing traction with leading customers worldwide, and the expansion of our non-handset business, will all contribute to Peregrine’s continued long-term growth.”
“In 2013 we look forward to building upon our momentum and expanding on our leadership position. We believe through continued focus on technology leadership and operational excellence, we can deliver strong financial performance and value to our shareholders. These objectives are achievable with the dedication of our employees and the strong support and collaboration of our customers and business partners worldwide,” concluded Cable.
| * | Diluted net income (loss) per share attributable to common stockholders is computed by dividing net income (loss) attributable to common stockholders, calculated as net income (loss) less income allocable to preferred stockholders for the period prior to their conversion upon our initial public offering, by the weighted average number of common shares outstanding, including unvested shares subject to repurchase, and potential dilutive securities assuming the dilutive effect of outstanding stock options and warrants using the treasury stock method. |
| ** | Non-GAAP diluted net income (loss) per share was computed to give effect to the conversion of our preferred stock using the as-if converted method into common shares as if the conversion had occurred as of the beginning of each period presented. |
Business Outlook
For the first quarter of 2013, the company expects revenue to be in the range of $43 million to $46 million. First quarter GAAP gross margin is expected to be in the range of 43.0% to 44.5%.
Quarterly Conference Call Today
Jim Cable, President and Chief Executive Officer, and Jay Biskupski, Chief Financial Officer, will host a fourth quarter 2012 financial results conference call today at 2:00 pm (Pacific) / 5:00 pm (Eastern). Attendees are asked to join the conference call at least ten minutes prior to the scheduled conference call time. The call may be accessed by dialing 1-877-303-8027 (toll free) or 1-760-536-5165 (international). The passcode is 91307644. A live and archived webcast of the call will be available on Peregrine’s website athttp://investors.psemi.com/ for one week following the live call.
| NEWS RELEASE | |
Use of GAAP and Non-GAAP Financial Measures
Peregrine Semiconductor prepares its financial statements in accordance with generally accepted accounting principles for the United States (GAAP). The non-GAAP financial measures such as gross margin, net income and loss per share information for the year and three months ended December 29, 2012, and similar periods from the prior year included in this press release are different from those otherwise presented under GAAP. The non-GAAP financial measures exclude non-cash compensation expense for stock options. When evaluating the performance of our business and developing short and long-term plans, we do not consider share-based compensation charges. Although share-based compensation is necessary to attract and retain quality employees, our consideration of share-based compensation places its primary emphasis on overall shareholder dilution rather than the accounting charges associated with such grants. Because of the varying availability of valuation methodologies and subjective assumptions, we believe that the exclusion of share-based compensation allows for more accurate comparison of our financial results to previous periods. In addition, we believe it useful to investors to understand the specific impact of the application of the fair value method of accounting for share-based compensation on our operating results. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business. However, investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. These measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.
For more information on our non-GAAP financial measures and a reconciliation of such measures to the nearest GAAP measure, please see the “Condensed Consolidated Reconciliation of GAAP to Non-GAAP Results” table in this press release.
Use of Forward Looking Statements
This press release contains forward looking statements regarding our management’s future expectations, beliefs, intentions, goals, strategies, plans and prospects. Such statements constitute “forward-looking” statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The achievement of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, our actual results, performance or achievements could be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, our dependence on a limited number of customers for a substantial portion of our revenues; intellectual property risks; intense competition in our industry; our ability to develop and introduce new and enhanced products on a timely basis and achieve market acceptance of those products; consumer acceptance of our customers’ products that incorporate our solutions; our lack of long-term supply contracts and dependence on limited sources of supply; and potential decreases in average selling prices for our products.
| NEWS RELEASE | |
For further information regarding risks and uncertainties associated with Peregrine’s business, please refer to the filings that we make with the Securities and Exchange Commission from time to time, including those set forth in the section entitled “Risk Factors” in the company’s Prospectus filed on August 8, 2012 and additional information that will be set forth in our Form 10-K that will be filed for the year ended December 29, 2012, which should be read in conjunction with these financial results. These documents are available on the SEC Filings section of the Investor Relations section of our website at http://investors.psemi.com/. Please also note that forward-looking statements represent our management’s beliefs and assumptions only as of the date of this press release. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information, becomes available in the future.
| NEWS RELEASE | |
About Peregrine Semiconductor
Peregrine Semiconductor (NASDAQ: PSMI) is a fabless provider of high-performance radio frequency integrated circuits (RFICs). Our solutions leverage our proprietaryUltraCMOS® technology, an advanced RF Silicon-On-Insulator process. Our products deliver what we believe is an industry-leading combination of performance and monolithic integration, and target a broad range of applications in the aerospace and defense, broadband, industrial, mobile wireless device, test and measurement equipment, and wireless infrastructure markets. Additional information is available on the Company’s website at http://www.psemi.com.
The Peregrine Semiconductor name, logo and UltraCMOS are registered trademarks, and DuNE, and HaRP are trademarks of Peregrine Semiconductor Corporation in the U.S.A., and other countries. All other trademarks are the property of their respective owners.
(Tables Follow)
| NEWS RELEASE | |
Peregrine Semiconductor Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| Three Months Ended | Years Ended | |||||||||||||||
| December 29, 2012 | December 31, 2011 | December 29, 2012 | December 31, 2011 | |||||||||||||
Net revenue | $ | 62,999 | $ | 35,547 | $ | 203,908 | $ | 107,771 | ||||||||
Cost of net revenue | 35,717 | 24,865 | 124,135 | 70,955 | ||||||||||||
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Gross profit | 27,282 | 10,682 | 79,773 | 36,816 | ||||||||||||
Operating expense: | ||||||||||||||||
Research and development | 10,616 | 6,438 | 34,134 | 22,730 | ||||||||||||
Selling, general and administrative | 10,788 | 6,707 | 36,971 | 23,252 | ||||||||||||
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Total operating expense | 21,404 | 13,145 | 71,105 | 45,982 | ||||||||||||
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Income (loss) from operations | 5,878 | (2,463 | ) | 8,668 | (9,166 | ) | ||||||||||
Interest expense, net | (107 | ) | (204 | ) | (1,354 | ) | (311 | ) | ||||||||
Other income (expense), net | 2 | (43 | ) | (130 | ) | (9 | ) | |||||||||
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Income (loss) before income taxes | 5,773 | (2,710 | ) | 7,184 | (9,486 | ) | ||||||||||
Provision (benefit) for income taxes | 146 | 2 | (88 | ) | 196 | |||||||||||
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Net income (loss) | 5,627 | (2,712 | ) | 7,272 | (9,682 | ) | ||||||||||
Net income allocable to preferred stockholders | — | — | (4,515 | ) | — | |||||||||||
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Net income (loss) attributable to common stockholders | $ | 5,627 | $ | (2,712 | ) | $ | 2,757 | $ | (9,682 | ) | ||||||
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Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.18 | $ | (0.99 | ) | $ | 0.19 | $ | (3.57 | ) | ||||||
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Diluted | $ | 0.15 | $ | (0.99 | ) | $ | 0.15 | $ | (3.57 | ) | ||||||
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Shares used to compute net income (loss) per share: | ||||||||||||||||
Basic | 31,837 | 2,745 | 14,291 | 2,715 | ||||||||||||
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Diluted | 36,548 | 2,745 | 18,651 | 2,715 | ||||||||||||
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Peregrine Semiconductor Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
| December 29, 2012 | December 31, 2011 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 44,106 | $ | 12,119 | ||||
Short-term marketable securities | 30,361 | — | ||||||
Accounts receivable, net | 13,353 | 13,082 | ||||||
Inventories | 57,017 | 29,822 | ||||||
Prepaids and other current assets | 11,108 | 2,644 | ||||||
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Total current assets | 155,945 | 57,667 | ||||||
Property and equipment, net | 22,871 | 10,272 | ||||||
Long-term marketable securities | 18,892 | — | ||||||
Other assets | 210 | 2,919 | ||||||
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Total assets | $ | 197,918 | $ | 70,858 | ||||
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Liabilities and stockholders’ equity (deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 22,306 | $ | 9,390 | ||||
Accrued liabilities | 12,672 | 11,477 | ||||||
Accrued compensation | 5,726 | 3,458 | ||||||
Customer deposits | 24,425 | — | ||||||
Deferred net revenue | 12,755 | 5,298 | ||||||
Line of credit | — | 7,749 | ||||||
Current portion of notes payable | — | 861 | ||||||
Current portion of obligations under capital leases | 11 | 520 | ||||||
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Total current liabilities | 77,895 | 38,753 | ||||||
Obligations under capital leases, less current portion | 18 | 189 | ||||||
Notes payable, less current portion | — | 757 | ||||||
Other long-term liabilities | 886 | 1,329 | ||||||
Convertible preferred stock | — | 172,430 | ||||||
Stockholders’ equity (deficit): | ||||||||
Preferred stock | — | — | ||||||
Common stock | 32 | 3 | ||||||
Additional paid-in capital | 340,221 | 85,828 | ||||||
Accumulated deficit | (220,935 | ) | (228,207 | ) | ||||
Accumulated other comprehensive loss | (199 | ) | (224 | ) | ||||
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Total stockholders’ equity (deficit) | 119,119 | (142,600 | ) | |||||
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Total liabilities and stockholders’ equity (deficit) | $ | 197,918 | $ | 70,858 | ||||
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Peregrine Semiconductor Corporation
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Years Ended | ||||||||
| December 29, 2012 | December 31, 2011 | |||||||
Operating activities | ||||||||
Net income (loss) | $ | 7,272 | $ | (9,682 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 4,579 | 3,980 | ||||||
Loss on disposal of property and equipment | 31 | 8 | ||||||
Stock-based compensation | 4,437 | 3,084 | ||||||
Revaluation of warrants to fair value | 633 | (36 | ) | |||||
Imputed interest related to customer deposit financing arrangements | 420 | — | ||||||
Amortization of premium and discount on investments, net | 169 | — | ||||||
Cash received for lease incentive | 115 | 348 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (255 | ) | (1,303 | ) | ||||
Inventories | (27,188 | ) | (7,522 | ) | ||||
Prepaids and other current and noncurrent assets | (7,751 | ) | (2,271 | ) | ||||
Accounts payable and accrued liabilities | 16,098 | 13,032 | ||||||
Customer deposits | 11,425 | — | ||||||
Deferred revenue | 6,865 | 265 | ||||||
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Net cash provided by (used in) operating activities | 16,850 | (97 | ) | |||||
Investing activities | ||||||||
Purchase of property and equipment | (17,212 | ) | (4,354 | ) | ||||
Proceeds from sale of equipment | 6 | 24 | ||||||
Purchase of marketable securities | (54,663 | ) | — | |||||
Sale of marketable securities | 5,100 | — | ||||||
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Net cash used in investing activities | (66,769 | ) | (4,330 | ) | ||||
Financing activities | ||||||||
Payments on obligations under capital leases | (661 | ) | (681 | ) | ||||
Payments on notes payable | (1,618 | ) | (820 | ) | ||||
Proceeds from line of credit | 3,000 | 4,500 | ||||||
Payments on line of credit | (10,749 | ) | — | |||||
Proceeds from exercise of stock options | 445 | 148 | ||||||
Proceeds from exercise of warrants | 31 | — | ||||||
Proceeds from customer deposit financing arrangement | 13,000 | — | ||||||
Proceeds from initial public offering | 80,278 | — | ||||||
Costs paid in connection with initial public offering | (1,811 | ) | (1,845 | ) | ||||
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Net cash provided by financing activities | 81,915 | 1,302 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (9 | ) | 18 | |||||
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Net change in cash and cash equivalents | 31,987 | (3,107 | ) | |||||
Cash and cash equivalents at beginning of year | 12,119 | 15,226 | ||||||
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Cash and cash equivalents at end of year | $ | 44,106 | $ | 12,119 | ||||
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| NEWS RELEASE | |
Peregrine Semiconductor Corporation
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(in thousands, except per share data)
(unaudited)
| Three Months Ended | Years Ended | |||||||||||||||||||||||||||||||
| December 29, 2012 | December 31, 2011 | December 29, 2012 | December 31, 2011 | |||||||||||||||||||||||||||||
Gross profit—GAAP | $ | 27,282 | 43 | % | $ | 10,682 | 30 | % | $ | 79,773 | 39 | % | $ | 36,816 | 34 | % | ||||||||||||||||
Non-cash compensation expense | 184 | 1 | 129 | 0 | 588 | 0 | 431 | 1 | ||||||||||||||||||||||||
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Gross profit—Non-GAAP | $ | 27,466 | 44 | % | $ | 10,811 | 30 | % | $ | 80,361 | 39 | % | $ | 37,247 | 35 | % | ||||||||||||||||
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Income (loss) from operations—GAAP | $ | 5,878 | 9 | % | $ | (2,463 | ) | (7 | %) | $ | 8,668 | 4 | % | $ | (9,166 | ) | (9 | %) | ||||||||||||||
Non-cash compensation expense | 1,321 | 2 | 925 | 3 | 4,437 | 2 | 3,084 | 3 | ||||||||||||||||||||||||
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Income (loss) from operations—Non-GAAP | $ | 7,199 | 11 | % | $ | (1,538 | ) | (4 | %) | $ | 13,105 | 6 | % | $ | (6,082 | ) | (6 | %) | ||||||||||||||
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Net income (loss)—GAAP | $ | 5,627 | 9 | % | $ | (2,712 | ) | (8 | %) | $ | 7,272 | 4 | % | $ | (9,682 | ) | (9 | %) | ||||||||||||||
Non-cash compensation expense | 1,321 | 2 | 925 | 3 | 4,437 | 2 | 3,084 | 3 | ||||||||||||||||||||||||
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Net income (loss)—Non-GAAP | $ | 6,948 | 11 | % | $ | (1,787 | ) | (5 | %) | $ | 11,709 | 6 | % | $ | (6,598 | ) | (6 | %) | ||||||||||||||
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Diluted net income (loss) per share attributable to common stockholders—GAAP | $ | 0.15 | $ | (0.99 | ) | $ | 0.15 | $ | (3.57 | ) | ||||||||||||||||||||||
Adjustment to reflect conversion of preferred stock at the beginning of period | — | 0.88 | 0.07 | 3.19 | ||||||||||||||||||||||||||||
Non-cash compensation expense | 0.04 | 0.04 | 0.14 | 0.12 | ||||||||||||||||||||||||||||
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Diluted net income (loss) per share—Non-GAAP | $ | 0.19 | $ | (0.07 | ) | $ | 0.36 | $ | (0.26 | ) | ||||||||||||||||||||||
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Net income (loss) attributable to common stockholders—GAAP | $ | 5,627 | $ | (2,712 | ) | $ | 2,757 | $ | (9,682 | ) | ||||||||||||||||||||||
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Net income (loss)—Non-GAAP | $ | 6,948 | $ | (1,787 | ) | $ | 11,709 | $ | (6,598 | ) | ||||||||||||||||||||||
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Shares used to compute diluted net income (loss) per share attributable to common stockholders—GAAP | 36,548 | 2,745 | 18,651 | 2,715 | ||||||||||||||||||||||||||||
Adjustment to reflect conversion of preferred stock at the beginning of period | — | 22,365 | 13,529 | 22,365 | ||||||||||||||||||||||||||||
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Shares used to compute diluted net income (loss) per share—Non-GAAP | 36,548 | 25,110 | 32,180 | 25,080 | ||||||||||||||||||||||||||||
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