Exhibit 99.1
Pericom Semiconductor Reports Fiscal Fourth Quarter and Annual Results
SAN JOSE, Calif., July 29 /PRNewswire-FirstCall/ -- Pericom Semiconductor
Corporation (Nasdaq: PSEM) today announced results for its fiscal fourth
quarter and year ended June 30, 2003.
Under generally accepted accounting principles (GAAP), net revenues for
the fourth quarter were $11,506,000, up slightly from $11,492,000 in the
previous quarter and down 11% from $12,967,000 in the comparable period last
year. Net loss for the quarter was $370,000, or ($0.01) per share, compared to
a net loss of $631,000, or ($0.02) per share, in the previous quarter and
versus a net loss of $694,000, or ($0.03) per share, in the comparable period
a year ago. For the twelve months ended June 30, 2003 net revenues were
$44,958,000, down 6% from $47,589,000 in the previous fiscal year. For the
twelve months ended June 30, 2003, net loss was $4,327,000 or ($0.17) per
share as compared with a net loss of $5,267,000 or ($0.21) per share in the
previous fiscal year.
Pericom management believes pro forma financial information is useful to
investors because it illuminates the underlying operational trends by
excluding significant non-recurring or otherwise unusual transactions. The
following results reflect certain pro forma adjustments for the three-month
period ended June 30, 2002 and the twelve-month periods ending June 30, 2002
and June 30, 2003. There were no pro forma adjustments for the June 2003 or
March 2003 quarters. The amount and nature of these pro forma items are
explained in the reconciliation of pro forma and GAAP financial results that
appears in the financial statements portion of this release.
On a pro forma basis, net revenues for the fourth quarter were
$11,506,000, up slightly from $11,492,000 in the previous quarter and down 11%
from $12,967,000 in the comparable period last year. Pro forma net loss for
the fourth quarter was $370,000 or ($0.01) per share compared to a pro forma
net loss of $631,000, or ($0.02) per share, in the previous quarter and a pro
forma net loss of $118,000, or ($0.00) per share, in the comparable period
last year. For the twelve months ended June 30, 2003 pro forma net revenues of
$44,958,000 were down 12% from pro forma net revenues of $50,807,000 for the
previous fiscal year. Pro forma net loss for the twelve months ended June 30,
2003 was $2,739,000, or ($0.11) per share, as compared with pro forma net loss
of $473,000, or ($0.02) per share, for the twelve months ended June 30, 2002.
Alex Hui, President and Chief Executive Officer of Pericom said, "The
business environment continues to be challenging. The timing of a sustained
global economic recovery remains elusive. We are committed to a number of
major programs that are key to our growth strategy, although the timing of the
ramp to volume production is difficult to predict. Many of these opportunities
involve our new product offerings that are being well received across multiple
product lines and markets. Our confidence in the future is supported by a
strong balance sheet with ample cash reserves, an excellent customer base, an
increasing product portfolio and technical capabilities augmented by our
pending acquisition of Saronix LLC, strong presence in Asian markets, and
sufficient operating capacity."
NEW PRODUCTS
The company developed 10 new products during the quarter aimed at key
server, notebook, networking, and communication markets. Eight of these
products were proprietary.
-- Pericom began sampling to industry leading PC Notebook and PC
peripheral suppliers a new USB 2.0 switching solution as part of
Pericom's Silicon Switch product line. The USB 2.0 product
introductions reinforce Pericom's commitment to provide industry
leading Application Specific Switching solutions.
-- Complimented our Clock product line with a 500MHz, low jitter, and low
skew PLL clock generator targeted toward the networking space.
-- We rounded out our LVTC product offering by introducing 4 new 8-bit
logic products. These new products along with our previously
introduced 16 bit LVTC products offer Telecom and Networking customers
a lower power equivalent performance solution to replace high power
consuming BiCMOS LVT based logic.
-- We continue to enhance our leadership position in Register Logic and
Clock drivers for the DDRI and DDRII memory market used in Server
platforms. The PI74SSTU32864 register and PI6CU877 PLL clock products
continue to be well received by Tier 1 and Tier 2 DIMM memory module
suppliers. This market is expected to gain further momentum in 2004 as
Server platforms migrate from DDRI-333 MHz memory modules to DDRII-400
MHz memory modules.
SEPTEMBER 2003 QUARTER OUTLOOK
-- We entered the September quarter with less backlog than the previous
quarter, and are thus dependent on a higher level of turns to achieve a
flat sequential quarter. Indications are that turns will occur later in
the quarter, therefore with low turns visibility at this time our
revenue guidance range is between $10.0 million and $11.0 million.
-- Gross margin should remain in the 30% range but continues to be highly
dependent on product mix and pricing.
-- Operating expenses are expected to increase slightly.
-- Other income will be approximately $1.0 million.
Pericom will adhere to Regulation Fair Disclosure. The company will
provide its investors and analysts with guidance in the areas of total
revenues, gross margin, operating expenses and other income each quarter in
our earnings releases and in our conference calls. We will not provide
further guidance or updates during the quarter unless we do so via a press
release.
NOTE: Our Fourth Quarter Results telephone conference call will begin at
1:45 p.m. PDT today. The conference call may be accessed by calling
800-949-8963 and referencing conference number 1698745. A replay of the
Fourth Quarter Results conference call will be available for 7 days commencing
from 4:00 PM PDT today. The replay telephone number is 800-642-1687
(domestic) or 706-645-9291 (international) and the access code is 1698745.
Please note also that the conference call will be simultaneously Webcast live
at: www.pericom.com/investors and at
www.firstcallevents.com/service/ajwz384908546gf12.html followed by on-demand
Webcast beginning at 4:00 p.m. Pacific Daylight Time today through August 28,
2003 on either site (Webcast requires Windows MediaPlayer).
Pericom Semiconductor Corporation designs and develops high-performance
interface integrated circuits used for the transferring, routing, and timing
of high-speed digital and analog signals within and between computer,
networking, and multimedia systems. Pericom's products are essential for full
utilization of the speed and bandwidth built into today's Microprocessors,
Memory IC's, LAN's, and WAN's. Company headquarters are located in San Jose,
California, and its products are distributed worldwide. Visit
www.pericom.com/partners for a complete list of sales partners. Phone: 800-
435-2336; Fax: 408-435-1100; Email: solutions@pericom.com; Website:
www.pericom.com.
This press release contains forward-looking statements as defined under
The Securities Litigation Reform Act of 1995. Forward-looking statements in
this release include the statements under the caption 'September 2003 Quarter
Outlook' and statements regarding the Company's future growth, revenue and
earnings improvement, our making of strategic investments and the expectation
of future benefit from them, that our product portfolio will continue to
increase and that new products will be successful, our maintaining of our
balance sheet, our being well positioned to benefit when end markets recover
and the impending acquisition of Saronix LLC. The company's actual results
could differ materially from what is set forth in such forward-looking
statements due to a variety of risk factors, including continued softness in
demand for our products, a continuation of price erosion for certain of our
products, customer decisions to reduce inventory, economic or financial
difficulties experienced by our customers, or technological and market
changes. Although Pericom believes that its expectations are based on
reasonable assumptions, it can give no assurance that anticipated results will
occur. All forward-looking statements included in this document are made as
of the date hereof, based on information available to the company as of the
date hereof, and Pericom assumes no obligation to update any forward-looking
statements. Parties receiving this release are encouraged to review our
annual report on Form 10-K for the year ended June 30, 2002, our quarterly
filings of Form 10-Q for the quarters ended September 30, 2002, December 31,
2002 and March 31, 2003 and, in particular, the risk factors sections of those
filings.
Pericom Semiconductor Corporation
Consolidated Statements of Operations - GAAP
(In thousands, except per share data)
(unaudited)
Twelve Months
Three Months Ended Ended
Jun 30, Mar 31, Jun 30, Jun 30, Jun 30,
2003 2003 2002 2003 2002
Net revenues $11,506 $11,492 $12,967 $44,958 $47,589
Cost of revenues 8,027 8,028 8,294 31,468 33,871
Gross profit 3,479 3,464 4,673 13,490 13,718
Operating expenses:
Research and development 2,871 2,758 2,958 11,346 11,663
Selling, general and
administrative 2,654 2,673 2,949 11,284 11,778
Restructuring charge --- --- --- 1,431 ---
Total 5,525 5,431 5,907 24,061 23,441
Loss from operations (2,046) (1,967) (1,234) (10,571) (9,723)
Other income, net 1,323 1,024 1,052 4,503 4,144
Recovery (write down) of
nonmarketable investment 116 (1) (900) (1,025) (2,650)
Loss before income taxes (607) (944) (1,082) (7,093) (8,229)
Income tax benefit (237) (313) (388) (2,766) (2,962)
Net loss $(370) $(631) $(694) $(4,327) $(5,267)
Basic and diluted loss per
share $(0.01) $(0.02) $(0.03) $(0.17) $(0.21)
Shares used in computing
basic and diluted loss
per share 25,705 25,717 25,530 25,721 25,339
Pericom Semiconductor Corporation
Consolidated Statements of Operations - Pro Forma
(In thousands, except per share data)
(unaudited)
Twelve Months
Three Months Ended Ended
Jun 30, Mar 31, Jun 30, Jun 30, Jun 30,
2003 2003 2002 2003 2002
Net revenues $11,506 $11,492 $12,967 $44,958 $50,807
Cost of revenues 8,027 8,028 8,294 31,409 32,773
Gross profit 3,479 3,464 4,673 13,549 18,034
Operating expenses:
Research and development 2,871 2,758 2,958 11,346 11,458
Selling, general and
administrative 2,654 2,673 2,949 11,217 11,497
Total 5,525 5,431 5,907 22,563 22,955
Loss from operations (2,046) (1,967) (1,234) (9,014) (4,921)
Other income, net 1,323 1,024 1,052 4,503 4,184
Recovery (write down) of
nonmarketable investment 116 (1) --- 64 ---
Loss before income taxes (607) (944) (182) (4,447) (737)
Income tax benefit (237) (313) (64) (1,708) (264)
Net loss $(370) $(631) $(118) $(2,739) $(473)
Basic and diluted loss per
share $(0.01) $(0.02) $(0.00) $(0.11) $(0.02)
Shares used in computing
basic and diluted loss
per share 25,705 25,717 25,530 25,721 25,339
Pericom Semiconductor Corporation
Reconciliation of Net Loss In Accordance With GAAP to Pro Forma Net Loss
(In thousands)
(unaudited)
Twelve Months
Three Months Ended Ended
Jun 30, Mar 31, Jun 30, Jun 30, Jun 30,
2003 2003 2002 2003 2002
Net loss in accordance with GAAP $(370) $(631) $(694) $(4,327) $(5,267)
Workforce reduction (Note 1) 126 334
Restructuring charge (Note 2) 1,431
Investment write off (Note 3) 900 1,089 2,690
Unusual charges to revenue
(Note 4) 3,218
Inventory reserves (Note 5) 1,050
Legal costs (Note 6) 200
Income tax benefit (Note 7) (324) (1,058) (2,698)
Net loss on a Pro Forma basis $(370) $(631) $(118) $(2,739) $(473)
Notes to pro forma adjustments:
Note 1: In October 2001 and November 2002 we reduced our total workforce
by approximately 10% in each month.
Note 2: In December 2002 we recorded a non-recurring charge related to an
unused leased facility.
Note 3: In June 2002 and December 2002 we wrote off in their entirety
investments in other companies that were deemed to be impaired and
in the quarter ended March 31, 2002 we wrote off a loan and
accrued interest receivable that was deemed to be impaired.
Note 4: In December 2001 we recorded unusual charges against revenue to
address inventory and pricing issues in our distribution channel
that were due to the significant drop-off in business activity.
Note 5: In December 2001 we recorded additional inventory write downs due
to the prolonged decline in end-market demand and inventory
corrections in our sales channels.
Note 6: In the quarter ended December 31, 2001 we settled a patent
infringement suit filed by a competitor.
Note 7: Reduction of the tax benefit relating to the pro forma adjustments
above.
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
As of As of
Jun 30, 2003 June 30, 2002*
(unaudited)
Assets
Current Assets:
Cash, cash equivalents, and
short-term investments $148,990 $155,812
Accounts receivable 4,302 5,852
Inventories 9,963 9,339
Prepaid expenses and other
current assets 1,301 1,298
Deferred income taxes 1,401 2,600
Total current assets 165,957 174,901
Property and equipment, net 6,305 8,608
Investment in and advances to joint
venture 6,506 7,245
Other assets 11,468 2,991
Total assets $190,236 $193,745
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $4,170 $4,544
Accrued liabilities 3,124 2,840
Total current
liabilities 7,294 7,384
Deferred income taxes 0 639
Other long term liabilities 619 0
Total liabilities 7,913 8,023
Shareholders' equity:
Common stock 139,401 139,345
Retained earnings and other 42,922 46,377
Total shareholders'
equity 182,323 185,722
Total liabilities and
shareholders' equity $190,236 $193,745
* Derived from the June 30, 2002 audited consolidated financial statements
SOURCE Pericom Semiconductor Corporation
-0- 07/29/2003
/CONTACT: Patrick B. Brennan, VP Investor Relations of Pericom
Semiconductor Corporation, +1-408-435-0800, or fax, +1-408-435-1100/
/Web site: http://www.pericom.com /
(PSEM)
CO: Pericom Semiconductor Corporation
ST: California
IN: ECP CPR SEM HRD
SU: ERN CCA ERP