Exhibit 99.1
Pericom Semiconductor Reports Fiscal Second Quarter Results
SAN JOSE, Calif., Jan. 27 /PRNewswire-FirstCall/ -- Pericom Semiconductor
Corporation (Nasdaq: PSEM) today announced results for its fiscal second
quarter ended December 31, 2003. Results include the acquired operations of
SaRonix LLC since October 1, 2003.
Net revenues for the second quarter were $16,850,000, up 52.2% from
$11,072,000 in the previous quarter and are up 51.4% from $11,132,000 in the
comparable period last year. Pro forma net loss for the quarter was $629,000,
or ($0.02) per share, compared to a net loss of $800,000, or ($0.03) per
share, in the previous quarter and versus a pro forma net loss of $815,000, or
($0.03) per share, in the comparable period a year ago. Net revenues for the
six months ended December 31, 2003 were $27,922,000, up 27.1% from $21,960,000
a year ago. Pro forma net loss for the six month period ending December 31,
2003 was $1,429,000, or ($0.06) per share, versus a pro forma net loss of
$1,737,000, or ($0.07) per share, in the prior year comparable period.
Our GAAP financial results include one-time acquisition related and other
restructuring charges which are explained in the reconciliation of pro forma
and GAAP financial results that appears in the financial statements portion of
this release. Our net loss under GAAP for the quarter was $1,875,000, or
($0.07) per share, compared to a net loss of $800,000, or ($0.03) per share,
in the previous quarter and a net loss of $2,403,000, or ($0.09) per share, in
the comparable period a year ago. Net loss for the six month period ending
December 31, 2003 was $2,675,000, or ($0.10) per share, versus a net loss of
$3,326,000, or ($0.13) per share, in the prior year comparable period.
Pericom management believes pro forma financial information is useful to
investors because it illuminates underlying operational trends by excluding
significant non-recurring or otherwise unusual transactions. Our criteria for
determining pro forma results may differ from other companies methods, and
should not be regarded as a replacement for corresponding GAAP measures.
Alex Hui, President and Chief Executive Officer of Pericom, said, "We are
pleased with the results we achieved in our first full quarter of operations
with SaRonix, our new frequency control product line. Our core integrated
circuit business revenues grew approximately 10% sequentially, and 9.4% year
over year, and frequency control products exceeded our revenue estimate of
$4.5 million. Our consolidated pro forma gross margins showed a 220 basis
point improvement over last quarter. Bookings remained strong through the
quarter which has provided a higher beginning backlog for the current quarter.
Inventory in our distribution channel remains at very low levels and we have
invested in inventory to ensure that we are ready to respond to increases in
customer demand.
"We are making good progress on the integration of SaRonix. Effective
January 5, 2004 we are now co-located in a new facility which will allow us to
further develop the synergies that we have discussed. These include offering
comprehensive and advanced timing solutions to our combined blue chip customer
base in the telecom, networking, storage and computer markets, reducing
product cost, building on our respective geographic and customer strengths,
and joint development of advanced timing modules.
"With improved market conditions we believe we are well positioned to
positively leverage our financial strength, broad product portfolio, and
design resources."
NEW PRODUCTS
New products released during the quarter offer next generation solutions
for customers in their focus market segments including communications,
networking, storage, computing, and industrial. These products expand
Pericom's higher margin focus product lines of PCI Bridge, Analog Switch, and
Timing Solutions.
-- Launched eight new Analog Switches that offer the industry's lowest
on-resistance and ultra-compact packaging supporting applications in
portable cell phones, mobile handsets, and slim form-factor notebooks.
-- Delivered three wide-bandwidth 500MHz Differential Video Switches
targeted to meet the high-speed demands in both consumer and commercial
video applications.
-- Strengthened our LAN Switch portfolio with two devices that perform at
Fast Ethernet or Gigabit Ethernet levels and are already being designed
into market leader notebook applications.
-- Introduced a new high-performance USB2.0 Switch that supports USB
speeds up to 480Mb/s targeting applications in the high-end notebook
and desktop markets.
-- Released a new PLL Clock for Registered DIMM supporting DDR200 to
DDR400.
-- Continued to expand our Bridge portfolio with two new PCI-to-PCI Bridge
ICs with enhanced performance and extended commercial temperature
range.
New Frequency Control Products introduced include:
-- The SCR050 family of clock and data recovery timing modules to be used
in telecom equipment for frequency translation, as well as clock and
data recovery.
-- New SFT100 frequency translation module that extends the range to
77.76 MHz for wireless, SONET/SDH/DWDM and IP server applications.
-- A new family of TCXOs, the S69 series, targeting wireless base stations
and wireless local area networking equipment.
-- New members of our new low voltage S1613 and S1614 clock family that
extends the range to 160 MHz for 1G & 10G Ethernet applications.
-- Low voltage PECL oscillators for 1G and 10G Ethernet, Fiber Channel,
SONET & DWDM applications requiring very low jitter and tight
stability.
MARCH 2004 QUARTER OUTLOOK
The following statements are based on current expectations. These
statements are forward looking, and actual results may differ materially.
-- With a stronger backlog entering the current quarter and early
indications of bookings strength, we believe net revenues should be in
the range of $18.0 million to $18.5 million.
-- Gross margin is expected to be in the low 30% range but this continues
to be highly dependent on product mix, particularly with the addition
of the frequency control product line.
-- Operating expenses are expected to be approximately flat with last
quarter.
-- Other income is expected to remain at approximately the $1 million
level.
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 Second Quarter Results telephone conference call will begin at
1:30 p.m. PST today. The conference call may be accessed by calling
800-949-8963 and referencing conference number 4964816. A replay of the
Second Quarter Results conference call will be available for 7 days commencing
from 4:00 PM PST today. The replay telephone number is 800-642-1687
(domestic) or 706-645-9291 (international) and the access code is 4964816.
Please note also that the conference call will be simultaneously Webcast live
at: www.pericom.com/investors and at
www.firstcallevents.com/service/ajwz396718077gf12.html followed by on-demand
Webcast beginning at 4:00 p.m. Pacific Standard Time today through February
26, 2004 on either site (Webcast requires Windows MediaPlayer).
Pericom Semiconductor Corporation offers customers worldwide the
industry's most complete silicon and quartz based solutions for the Computing,
Communications, and Industrial market segments. Our broad portfolio of
leading-edge analog, digital, and mixed-signal integrated circuits and SaRonix
frequency control products are essential in the timing, transferring, routing,
and translating of high-speed signals as required by today's ever-increasing
speed and bandwidth demanding applications. Company headquarters are in San
Jose, California, with design centers and sales offices located globally.
http://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 "March 2004 Quarter
Outlook" and statements regarding the Company's future growth, backlog,
bookings strength, future revenues, gross margin, operating expenses, other
income, inventory level, customer and product demand, our being well
positioned to leverage our strengths, our being positioned to respond to
customer demand and the expectation of future benefit and synergies from the
acquisition of Saronix LLC, including offering various timing solutions,
reducing product cost, leveraging our respective strengths and joint
development. 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, 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 Six Months Ended
Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
2003 2003 2002 2003 2002
Net revenues $16,850 $11,072 $11,132 27,922 21,960
Cost of revenues 12,262 7,854 7,852 20,116 15,412
Gross profit 4,588 3,218 3,280 7,806 6,548
Operating expenses:
Research and development 3,987 3,210 2,800 7,197 5,718
Selling, general and
administrative 4,292 2,515 2,799 6,807 5,957
Restructuring charge 784 -- 1,431 784 1,431
Total 9,063 5,725 7,030 14,788 13,106
Loss from operations (4,475) (2,507) (3,750) (6,982) (6,558)
Other income, net 1,064 1,061 1,005 2,125 2,105
Recovery (write down) of
nonmarketable investment -- (9) (1,089) (9) (1,089)
Loss before income taxes (3,411) (1,455) (3,834) (4,866) (5,542)
Income tax benefit (1,536) (655) (1,431) (2,191) (2,216)
Net loss $(1,875) $(800) $(2,403) $(2,675) $(3,326)
Basic and diluted loss per
share $(0.07) $(0.03) $(0.09) $(0.10) $(0.13)
Shares used in computing
basic and diluted loss
per share 25,928 25,816 25,730 25,872 25,730
Pericom Semiconductor Corporation
Consolidated Statements of Operations - Pro Forma
(In thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
2003 2003 2002 2003 2002
Net revenues $16,850 $11,072 $11,132 27,922 21,960
Cost of revenues 11,582 7,854 7,793 19,436 15,353
Gross profit 5,268 3,218 3,339 8,486 6,607
Operating expenses:
Research and development 3,594 3,210 2,800 6,804 5,718
Selling, general and
administrative 3,882 2,515 2,732 6,397 5,890
Total 7,476 5,725 5,532 13,201 11,608
Loss from operations (2,208) (2,507) (2,193) (4,715) (5,001)
Other income, net 1,064 1,061 1,005 2,125 2,105
Recovery (write down) of
nonmarketable investment -- (9) -- (9) --
Loss before income taxes (1,144) (1,455) (1,188) (2,599) (2,896)
Income tax benefit (515) (655) (373) (1,170) (1,159)
Net loss $(629) $(800) $(815) $(1,429) $(1,737)
Basic and diluted loss per
share $(0.02) $(0.03) $(0.03) $(0.06) $(0.07)
Shares used in computing
basic and diluted loss
per share 25,928 25,816 25,730 25,872 25,730
Pericom Semiconductor Corporation
Reconciliation of Net Loss In Accordance With GAAP to Pro Forma Net Loss
(In thousands)
(unaudited)
Three Months Ended Six Months Ended
Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
2003 2003 2002 2003 2002
Net loss in accordance with
GAAP $(1,875) $(800) $(2,403) $(2,675) $(3,325)
Workforce reduction (Note 1) $230 126 $230 126
Restructuring charge (Note 2) $784 1,431 $784 1,431
Investment write off (Note 3) 1,089 1,089
SaRonix inventory fair value
adjustment (Note 4) $573 $573
Write off of in-process R&D
(Note 5) $360 $360
Amortization of customer
backlog (Note 6) $320 $320
Income tax benefit (Note 7) $(1,021) (1,058) $(1,021) (1,058)
Net loss on a Pro Forma basis $(629) $(800) $(815) $(1,429) $(1,737)
Notes to pro forma adjustments:
Note 1: In November 2003 and November 2002 we reduced our total workforce
by approximately 12% and 10%, respectively.
Note 2: In December 2003 we recorded a non-recurring charge related to an
unused leased facility resulting from our move to a new corporate
headquarters. In December 2002 we recorded a non-recurring charge
related to an unused leased facility.
Note 3: In December 2002 we wrote off in its entirety an investment in
another company that was deemed to be impaired. The adjustment
represents the margin impact of the difference between SaRonix
cost and acquisition fair value.
Note 4: In the three months ended December 2003 we sold inventory
acquired from SaRonix that was written up to fair value in
connection with the acquisition.
Note 5: In the three months ended December 2003 we wrote off the cost of
acquired in-process R&D.
Note 6: In the three months ended December 2003 we completely amortized
the cost of acquired customer backlog for which we did not incur
related selling expenses.
Note 7: The tax benefit relating to the pro forma adjustments above.
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
As of As of
Dec 31, 2003 June 30, 2003 *
(unaudited)
Assets
Current Assets:
Cash, cash equivalents, and
short-term investments $145,725 $148,990
Accounts receivable 9,090 4,302
Inventories 12,553 9,963
Prepaid expenses and other current
assets 3,766 1,301
Deferred income taxes 923 1,401
Total current assets 172,057 165,957
Property and equipment, net 6,862 6,305
Investment in and advances to joint venture 6,643 6,506
Deferred income taxes-non current 2,312 1,085
Other assets 8,114 10,384
Total assets $195,988 $190,237
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $8,894 $4,170
Accrued liabilities 5,463 3,125
Current portion of long-term debt 1,349 0
Total current liabilities 15,706 7,295
Deferred income taxes 0 0
Other long term liabilities 281 619
Total liabilities 15,987 7,914
Shareholders' equity:
Common stock 140,388 139,401
Retained earnings and other 39,613 42,922
Total shareholders' equity 180,001 182,323
Total liabilities and shareholders'
equity $195,988 $190,237
* Derived from the June 30, 2003 audited consolidated financial statements
SOURCE Pericom Semiconductor Corporation
-0- 01/27/2004
/CONTACT: Mike Craighead, VP/Chief Financial Officer 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 SEM HRD NET
SU: ERN CCA ERP