Exhibit 99.1
Pericom Semiconductor Reports Fiscal Third Quarter Results
SAN JOSE, Calif., April 20 /PRNewswire-FirstCall/ -- Pericom Semiconductor
Corporation (Nasdaq: PSEM) today announced results for its fiscal third
quarter ended March 31, 2004. Results include the acquired operations of
SaRonix LLC since October 1, 2003.
Net revenues for the third quarter were $18,466,000, up 9.6% from
$16,850,000 in the previous quarter and are up 60.7% from $11,492,000
in the comparable period last year. Pro forma net loss for the quarter was
$56,000, or ($0.00) per share, compared to a net loss of $629,000, or
($0.02) per share, in the previous quarter and versus a pro forma net loss of
$631,000, or ($0.02) per share, in the comparable period a year ago. Net
revenues for the nine months ended March 31, 2004 were $46,388,000, up
38.7% from $33,452,000 a year ago. Pro forma net loss for the nine month
period ending March 31, 2004 was $1,434,000, or ($0.06) per share, versus a
pro forma net loss of $2,369,000, or ($0.09) per share, in the prior year
comparable period.
Our GAAP financial results include one-time non-recurring 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 $96,000, or ($0.00) per share, compared to
a net loss of $1,875,000, or ($0.07) per share, in the previous quarter and a
net loss of $631,000, or ($0.02) per share, in the comparable period a year
ago. Net loss for the nine month period ending March 31, 2004 was $2,771,000,
or ($0.11) per share, versus a net loss of $3,957,000, or ($0.15) 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 to deliver sequential revenue growth of approximately 10% for the
second consecutive quarter. IC's grew 10.7% sequentially and Frequency
Control Products ("FCP's") advanced 6.7%. We are encouraged that our
consolidated gross margin percent increased 230 basis points. This margin
growth was driven by our IC business which benefited from an improved pricing
environment, and product mix. Bookings strength continued which again
provides an improved backlog for the current quarter. To meet this increased
demand and possible tightening of supply we have continued to invest in
inventory. The integration of SaRonix is going as planned since the
co-location of both companies was completed in January 2004. We feel that the
synergies we envisioned from the combination of IC's and quartz-based timing
solutions will yield positive results in the future. We believe we are on the
verge of returning to profitability, and that we are well positioned to
leverage our financial strength and our strategic investments in new product
development, the acquisition of SaRonix, employees and global infrastructure."
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. .
-- Launched a new family of switches that offers 500 MHz of bandwidth to
enable true high-performance differential switching in next generation
PCI-X servers and advanced memory bus interface.
-- A 2-bit voltage translator device to support voltage translation from
1.8V to 5V in 2-wire control bus like I2C or SM bus which is found in
a large variety of platforms.
-- Introduced a new high-performance Registered Buffer for next
generation DDR-2 registered memory modules in High-end Workstations,
Servers, Routers/Switches, and Storage Area Networks.
-- Expanded our Clock IC timing portfolio with a pair of high-performance
differential clock buffers that can be used as either voltage
translators or I/O signal translators. Both clock devices are designed
for high-speed and low-skew applications such as Networking,
Telecommunications, Storage, and Industrial Systems.
-- Strengthened our clock IC portfolio with a high-speed single input to
four output clock buffer. This 3.3V or 5V LVCMOS/LVTTL Clock Buffer is
ideal for networking clocks and inherently well suited for the Data
Communications Market.
-- On Frequency Control Products, the S7C series TCXO performance was
improved to enable a lifetime stability guarantee of 4.6 ppm
supporting Stratum-3 type of applications. Available frequencies for
S1633 series clock oscillators in 3.2 x 5.0 mm ceramic packages were
extended to range from 1.8 MHz to 125.0 MHz.
JUNE 2004 QUARTER OUTLOOK
The following statements are based on current expectations. These
statements are forward looking, and actual results may differ materially.
-- We believe net revenues will increase to $19.75 million to $20.3
million, or approximately 7-10%.
-- Gross margin is expected to be in the 33-35% range, but this continues
to be highly dependent on product mix including the mix between IC
products and our frequency control product line.
-- Operating expenses are expected to increase slightly from last
quarter.
-- Other income is expected to be approximately $1.1 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 third 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 6657065. A replay of the third
quarter results conference call will be available for 7 days commencing from
5:30 PM PDT today. The replay telephone number is 800-642-1687 (domestic) or
706-645-9291 (international) and the access code is 6657065. Please note also
that the conference call will be simultaneously Webcast live at:
www.pericom.com/investors and at
www.firstcallevents.com/service/ajwz403604253gf12.html followed by on-demand
Webcast beginning at 5:30 p.m. PDT today through May 20, 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 'June 2004 Quarter
Outlook' and statements regarding the Company's future growth, backlog,
bookings strength, future revenues, gross margin, operating expenses, other
income, inventory level, profitability, customer and product demand, our being
well positioned to leverage our strengths and strategic investments, 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 softness in demand for our products, 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.
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 Nine Months Ended
Mar 31, Dec 31, Mar 31, Mar 31, Mar 31,
2004 2003 2003 2004 2003
Net revenues $18,466 $16,850 $11,492 $46,388 $33,452
Cost of revenues 12,275 12,262 8,028 32,391 23,441
Gross profit 6,191 4,588 3,464 13,997 10,011
Operating expenses:
Research and development 3,451 3,987 2,758 10,648 8,476
Selling, general and
administrative 4,277 4,292 2,673 11,084 8,630
Restructuring charge 0 784 0 784 1,431
Total 7,728 9,063 5,431 22,516 18,537
Loss from operations (1,537) (4,475) (1,967) (8,519) (8,526)
Other income, net 1,168 1,064 1,024 3,293 3,181
Recovery (write down) of
nonmarketable investment 4 -- (1) (5) (1,142)
Loss before income taxes (365) (3,411) (944) (5,231) (6,487)
Income tax benefit (269) (1,536) (313) (2,460) (2,530)
Net loss $(96) $(1,875) $(631) $(2,771) $(3,957)
Basic and diluted loss per
share $(0.00) $(0.07) $(0.02) $(0.11) $(0.15)
Shares used in computing
basic and diluted
loss per share 26,166 25,928 25,717 25,970 25,726
Pericom Semiconductor Corporation
Consolidated Statements of Operations - Pro Forma
(In thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
Mar 31, Dec 31, Mar 31, Mar 31, Mar 31,
2004 2003 2003 2004 2003
Net revenues $18,466 $16,850 $11,492 $46,388 $33,452
Cost of revenues 12,262 11,582 8,028 31,698 23,382
Gross profit 6,204 5,268 3,464 14,690 10,070
Operating expenses:
Research and development 3,436 3,594 2,758 10,240 8,476
Selling, general and
administrative 4,046 3,882 2,673 10,443 8,563
Total 7,482 7,476 5,431 20,683 17,039
Loss from operations (1,278) (2,208) (1,967) (5,993) (6,969)
Other income, net 1,168 1,064 1,024 3,293 3,181
Recovery (write down) of
nonmarketable investment 4 -- (1) (5) (53)
Loss before income taxes (106) (1,144) (944) (2,705) (3,841)
Income tax benefit (50) (515) (313) (1,271) (1,472)
Net loss $(56) $(629) $(631) $(1,434) $(2,369)
Basic and diluted loss per
share $(0.00) $(0.02) $(0.02) $(0.06) $(0.09)
Shares used in computing
basic and
diluted loss per share 26,166 25,928 25,717 25,970 25,726
Pericom Semiconductor Corporation
Reconciliation of Net Loss in Accordance With GAAP to Pro Forma Net Loss
(In thousands)
(unaudited)
Three Months Ended Nine Months Ended
Mar 31, Dec 31, Mar 31, Mar 31, Mar 31,
2004 2003 2003 2004 2003
Net loss in accordance
with GAAP $(96) $(1,875) $(631) $(2,771) $(3,957)
Workforce reduction (Note 1) 230 230 126
Restructuring charge (Note 2) 784 784 1,431
Investment write off (Note 3) 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
Moving costs (Note 7) 214 214
Write off furniture & fixtures
(Note 8) 45 45
Income tax benefit (Note 9) (219) (1,021) (1,189) (1,058)
Net loss on a Pro Forma basis $(56) $(629) $(631) $(1,434) $(2,369)
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.
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: In the three months ended March 2004 we recorded a non-recurring
moving charge related to the move to a new corporate headquarters.
Note 8: In February 2004 we wrote off the net book value of furniture
and fixtures no longer in use due to the move referred to in Note 7.
Note 9: The tax benefit relating to the pro forma adjustments above.
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
As of As of
Mar 31, 2004 June 30, 2003
Assets
Current Assets:
Cash, cash equivalents, and
short-term investments $143,229 $148,990
Accounts receivable 9,292 4,302
Inventories 15,288 9,963
Prepaid expenses and other
current assets 1,855 1,301
Deferred income taxes 1,796 1,401
Total current assets 171,460 165,957
Property and equipment, net 6,283 6,305
Investment in and advances to joint
venture 6,791 6,506
Deferred income taxes-non current 3,411 1,085
Other assets 8,472 10,384
Total assets $196,417 $190,237
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $8,535 $4,170
Accrued liabilities 5,573 3,125
Current portion of long-term debt 1,291 0
Total current liabilities 15,399 7,295
Other long term liabilities 113 619
Total liabilities 15,512 7,914
Shareholders' equity:
Common stock 141,196 139,401
Retained earnings and other 39,709 42,922
Total shareholders' equity 180,905 182,323
Total liabilities and
shareholders' equity $196,417 $190,237
SOURCE Pericom Semiconductor Corporation
-0- 04/20/2004
/CONTACT: Mike Craighead, VP/Chief Financial Officer for Pericom
Semiconductor, +1-408-435-0800, or fax, +1-408-435-1100/
/Web site: http://www.pericom.com /
(PSEM)
CO: Pericom Semiconductor Corporation
ST: California
IN: SEM CPR STW
SU: ERN ERP CCA