Pericom Semiconductor Reports Fiscal First Quarter Results
SAN JOSE, Calif., Oct. 21 /PRNewswire-FirstCall/ -- Pericom Semiconductor
Corporation (Nasdaq: PSEM) today announced results for its fiscal first
quarter ended September 30, 2003.
Net revenues for the first quarter were $11,072,000, down 3.8% from
$11,506,000 in the previous quarter and up 2.3% from $10,828,000 in the
comparable period last year. Net loss for the quarter was $800,000, or ($0.03)
per share, compared to a net loss of $370,000, or ($0.01) per share, in the
previous quarter and versus a net loss of $922,000, or ($0.04) per share, in
the comparable period a year ago.
Alex Hui, President and Chief Executive Officer of Pericom said, "While we
began the September quarter with relatively low backlog, we felt that the
quarter would be backend loaded and momentum in turns bookings did in fact
improve towards the later part of the quarter. This enabled us to surpass the
high end of our previously provided guidance. The year over year revenue
growth of 2.3% is the first such growth since 2001. The increase in turns
bookings at the end of last quarter is being sustained in the current quarter.
Overall inventory in our distribution channels continues at very low levels
and we are positioned to respond to increases in customer demand. We are
optimistic about the business going forward given an improved outlook in
product demand and new programs going into production."
"On October 1, 2003 we completed the previously announced planned
acquisition of the assets of SaRonix LLC. This addition strengthens our
capabilities and product offerings that we bring to our customers. Timing
solutions are a key long-term focus of Pericom. The combination of Pericom
and SaRonix -- integrated circuits and frequency control products -- will
enable us to provide a more complete timing solution to our customers. We view
this acquisition, coupled with our internal new product development, as an
integral part of our growth strategy."
NEW PRODUCTS
We introduced 26 new products during the quarter that expand our ability
to support key market segments such as communications, networking, storage,
notebook, and industrial applications.
* We released two USB2.0 switches targeting notebook and desktop computers
and other wide-bandwidth applications
* Introduced a superior performance video switch that addresses customers
growing requirements in 400 MHz video applications.
* Expanded our LAN switch family with an upgraded Ethernet switch that
supports next generation Notebooks.
* Released a new product family of 15 Microprocessor Supervisory Circuits.
These new devices are used in a wide-ranging variety of applications
including anywhere a microprocessor or microcontroller is found.
* Strengthened our performance Translator portfolio with four new devices
that manage multiple voltage signals solving customers rapidly growing
technology convergence.
* Broadened our strong PCI Bridge product line family with two new
enhanced devices that offer a competitive edge in performance. PCI
Bridges are being designed into many applications such as video
surveillance, add-in cards, networking, and industrial.
DECEMBER 2003 QUARTER OUTLOOK
The following guidance relates to the core business of Pericom
Semiconductor, and does not include the effects of the SaRonix acquisition
which are discussed below.
* We are entering the December quarter with a somewhat improved beginning
backlog from the previous quarter. In addition, turns bookings early in
this quarter are continuing stronger than the prior quarter. Therefore,
we feel that even with a possible slow down in turns orders late in the
quarter our net revenues should be in the range of $11.25 million to
$11.75 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.
DECEMBER 2003 QUARTER OUTLOOK -- SARONIX
* We anticipate that SaRonix revenues in the December quarter will be
approximately $4.5 million.
* We are not providing guidance on SaRonix margins due to the impact of
Purchase Accounting rules which require that opening inventories be
stated at "fair value." Until acquired inventory is sold very little
margin is realized on shipments of acquired inventory. We expect the
sell-through of this inventory to take one to two quarters at which time
margins should be at the projected levels of 25-30%.
* We are not providing guidance on operating expenses for SaRonix in the
December quarter. This is a transition quarter in bringing the two
companies together and although SaRonix has been downsized, many
employees have been retained on a temporary basis to facilitate the
transition. Commencing with the March quarter additional savings will
be realized.
In the future, our outlook will be on a consolidated basis for Pericom and
SaRonix combined. We will provide additional information if it is meaningful
for an understanding of the business.
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 First Quarter Results telephone conference call will begin at
1:30 p.m. PDT today. The conference call may be accessed by calling
800-949-8963 and referencing conference number 3121025. A replay of the First
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 3121025. Please note also
that the conference call will be simultaneously Webcast live at:
www.pericom.com/investors and at
www.firstcallevents.com/service/ajwz389747128gf12.html followed by on-demand
Webcast beginning at 4:00 p.m. Pacific Daylight Time today through November
20, 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 captions 'December 2003 Quarter
Outlook' and 'December 2003 Quarter Outlook - Saronix' and statements
regarding the Company's future growth, increases in turns bookings, customer
and product demand, our being positioned to respond to customer demand and the
expectation of future benefit from the 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, difficulties in
integrating SaRonix with our business, unexpected liabilities from the SaRonix
acquisition, 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, 2003 and, in particular, the risk factors sections of this
filing.
Pericom Semiconductor Corporation
Consolidated Statements of Operations - GAAP
(In thousands, except per share data)
(unaudited)
Three Months Ended
Sep 30, Jun 30, Sep 30,
2003 2003 2002
Net revenues $11,072 $11,506 $10,828
Cost of revenues 7,854 8,027 7,560
Gross profit 3,218 3,479 3,268
Operating expenses:
Research and development 3,210 2,871 2,918
Selling, general and
administrative 2,515 2,654 3,158
Total 5,725 5,525 6,076
Loss from operations (2,507) (2,046) (2,808)
Other income, net 1,061 1,323 1,152
Recovery (write down) of
nonmarketable investment (9) 116 (52)
Loss before income taxes (1,455) (607) (1,708)
Income tax benefit (655) (237) (786)
Net loss $(800) $(370) $(922)
Basic and diluted loss per share $(0.03) $(0.01) $(0.04)
Shares used in computing basic and
diluted loss per share 25,816 25,705 25,730
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
As of As of
Sep 30, 2003 June 30, 2003*
(unaudited)
Assets
Current Assets:
Cash, cash equivalents, and
short-term investments $147,246 $148,990
Accounts receivable 5,616 4,302
Inventories 8,537 9,963
Prepaid expenses and other
current assets 2,078 1,301
Deferred income taxes 1,544 1,401
Total current assets 165,021 165,957
Property and equipment, net 5,997 6,305
Investment in and advances to joint
venture 6,575 6,506
Deferred income taxes-non current 1,085 1,085
Other assets 10,954 10,384
Total assets $189,632 $190,237
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $4,204 $4,170
Accrued liabilities 3,376 3,125
Total current
liabilities 7,580 7,295
Other long term liabilities 450 619
Total liabilities 8,030 7,914
Shareholders' equity:
Common stock 139,853 139,401
Retained earnings and other 41,749 42,922
Total shareholders' equity 181,602 182,323
Total liabilities and
shareholders' equity $189,632 $190,237
* Derived from the June 30, 2003 audited consolidated financial statements
SOURCE Pericom Semiconductor Corporation
-0- 10/21/2003
/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: CPR ECP SEM
SU: ERN CCA ERP