Exhibit 99.1
Pericom Semiconductor Reports Fiscal First Quarter Results
SAN JOSE, Calif., Oct. 19 /PRNewswire-FirstCall/ -- Pericom Semiconductor
Corporation (Nasdaq: PSEM) today announced results for its fiscal first
quarter ended September 30, 2004. Results include the acquired operations of
SaRonix LLC since October 1, 2003.
Net revenues for the first quarter were $19,786,000, down 1.2% from
$20,029,000 in the preceding quarter and are up 78.7% from $11,072,000 in the
comparable period last year. GAAP net income for the quarter was $151,000, or
$0.01 per share (diluted), compared to GAAP net income of $661,000, or $0.02
per share (diluted), in the preceding quarter and versus a GAAP net loss of
$800,000, or ($0.03) per share, in the comparable period a year ago.
Our GAAP financial results include 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. Pro forma
results are not meant as a substitute for GAAP, but are included solely for
informational and comparative purposes. 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.
Net income in the quarter ended September 30, 2004 was $151,000, or $0.01
per share (diluted), compared with pro forma net income of $346,000, or $0.01
per share (diluted), in the preceding quarter and a net loss of $800,000, or
($0.03) per share, in the comparable period a year ago. No pro forma
adjustments have been made to the results for the quarters ended September 30,
2004 and September 30, 2003. For the quarter ended June 30, 2004, pro forma
net income reflects an income tax benefit adjustment.
Alex Hui, President and Chief Executive Officer of Pericom, said, "We were
pleased to deliver net revenues very close to our guidance for the quarter.
Our migration to an improving mix of our focus products continued -- these
products now represent almost 53% of our net IC revenues. Our gross margin
declined slightly from the preceding quarter but improved 620 basis points
over the comparable prior year quarter. We are also pleased to have remained
profitable for the second consecutive quarter. Despite near-term uncertainty,
we will continue to execute our product and end-market strategies which have
yielded good revenue, margin and profitability growth over the past year. We
plan to continue to increase the mix of our higher margin focus products and
increase our penetration in new markets such as cell phones and digital video
media. As stability returns to end markets and channel inventories are
balanced, we expect to continue to build upon our improved financial
performance."
NEW PRODUCTS
The Company introduced 14 higher margin IC focus products during the
quarter that support a variety of key market segments including Desktop and
Notebook PC, Video, Memory Modules, Networking, Telecom, Storage, and
Industrial Systems.
SiliconClock:
* Launched three new 3.3V, 1:4 LVPECL Clock Buffers/Converters used in
higher end networking switches and routers.
* Delivered our new 1.8V 1:10 PLL Clock Driver for DDR2 Registered DIMM's.
* Launched two new 3.3V Clock Generator's for Intel PCI-Express Chipsets.
These Intel defined products are used in the majority of Desktop and
Notebook PCs around the world.
SiliconConnect:
* Expanded the 64-bit PCI Bridge product line by introducing Asynchronous
and higher performance versions along with a unique 80MHz device.
* Also released the smallest known packaging for a 32-bit PCI Bridge in
the industry. These products are offered in both Asynchronous and
Synchronous modes.
SiliconSwitch:
* Expanded the successful ASSP Video Switch product line by starting to
sample 3-port and 5-port Low On-Resistance, 3.3V High-Bandwidth 4:1
Mux/DeMux Video Switches.
Frequency Control Products:
* Extended the available frequency range of our miniature quartz-based
clock products to 125MHz, encompassing a much broader range of
networking and computing applications.
DECEMBER 2004 QUARTER OUTLOOK
The following statements are based on current expectations. These
statements are forward looking, and actual results may differ materially.
* With current visibility we expect revenues to be flat to down 5%
depending on the strength of turns orders.
* Gross margin is expected to be in the 35-37% range, but this continues
to be highly dependent on product mix and overhead absorption.
* Operating expenses are expected to increase slightly from last quarter.
* Other income is expected to be approximately $0.8 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 first quarter results telephone conference call will begin at
1:30 p.m. pacific time today. The conference call may be accessed by calling
(800) 949-8963 and referencing conference number 1336073. A replay of the
first quarter results conference call will be available for 7 days commencing
from 4:30 PM pacific time today. The replay telephone number is (800) 642-
1687 (domestic) or (706) 645-9291 (international) and the access code is
1336073. Please note also that the conference call will be simultaneously
Webcast live at: www.pericom.com/investors followed by on-demand Webcast
beginning at 4:30 p.m. PDT today through November 18, 2004 (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 'December 2004 Quarter
Outlook' and statements regarding the Company's future growth, bookings
strength, future revenues, gross margin, operating expenses, other income,
future product mix, sales visibility, profitability, customer and product
demand, our ability to expand margins by transitioning to higher margin
products, market penetration in new markets, our future execution of our
product and end-market strategies and our expectation to continue to build
upon our improved financial performance. 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, 2004 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,
2004 2004 2003
Net revenues $19,786 $20,029 $11,072
Cost of revenues 12,806 12,791 7,854
Gross profit 6,980 7,238 3,218
Operating expenses:
Research and development 3,716 3,513 3,210
Selling, general and administrative 3,832 3,895 2,515
Total 7,548 7,408 5,725
Income (loss) from operations (568) (170) (2,507)
Other income, net 808 925 1,061
Recovery (write down) of nonmarketable
investment 0 (14) (9)
Income (loss) before income taxes 240 741 (1,455)
Income tax (benefit) 89 80 (655)
Net income (loss) $151 $661 $(800)
Basic earnings (loss) per share $0.01 $0.03 $(0.03)
Diluted earnings (loss) per share $0.01 $0.02 $(0.03)
Shares used in computing basic earnings
(loss) per share 26,515 26,388 25,816
Shares used in computing diluted earnings
(loss) per share 27,268 27,289 25,816
Pericom Semiconductor Corporation
Consolidated Statements of Operations - Pro Forma
(In thousands, except per share data)
(unaudited)
Three Months Ended
Sep 30, Jun 30, Sep 30,
2004 2004 2003
Net revenues $19,786 $20,029 $11,072
Cost of revenues 12,806 12,791 7,854
Gross profit 6,980 7,238 3,218
Operating expenses:
Research and development 3,716 3,513 3,210
Selling, general and administrative 3,832 3,895 2,515
Total 7,548 7,408 5,725
Income (loss) from operations (568) (170) (2,507)
Other income, net 808 925 1,061
Recovery (write down) of nonmarketable
investment 0 (14) (9)
Income (loss) before income taxes 240 741 (1,455)
Income tax (benefit) 89 395 (655)
Net income (loss) $151 $346 $(800)
Basic earnings (loss) per share $0.01 $0.01 $(0.03)
Diluted earnings (loss) per share $0.01 $0.01 $(0.03)
Shares used in computing basic earnings
(loss) per share 26,515 26,388 25,816
Shares used in computing diluted earnings
(loss) per share 27,268 27,289 25,816
Pericom Semiconductor Corporation
Reconciliation of Net Income (Loss) In Accordance With GAAP to Pro Forma
Net Income (Loss)
(In thousands)
(unaudited)
Three Months Ended
Sep 30, Jun 30, Sep 30,
2004 2004 2003
Net income (loss) in accordance with GAAP $151 $661 $(800)
Income tax (Note 1) $(315)
Net income (loss) on a pro forma basis $151 $346 $(800)
Notes to pro forma adjustments:
Note 1: The adjustment in the quarter ended June 30, 2004, was to reflect
the full year effective tax rate.
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
As of As of
Sep 30, 2004 Jun 30, 2004
(unaudited)
Assets
Current Assets:
Cash & cash equivalents $4,946 $13,965
Short-term investments 138,218 130,412
Accounts receivable 8,643 7,549
Inventories 16,407 15,980
Prepaid expenses and other current assets 573 664
Deferred income taxes 4,824 5,564
Total current assets 173,611 174,134
Property and equipment, net 6,497 6,442
Investment in and advances to Pericom
Technology, Inc. 6,896 7,019
Deferred income taxes-non current 1,642 1,419
Other assets 8,439 8,438
Total assets $197,085 $197,452
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $7,665 $8,153
Accrued liabilities 5,753 5,972
Current portion of long-term debt 1,276 1,291
Total current liabilities 14,694 15,416
Other long term liabilities 71 139
Total liabilities 14,765 15,555
Shareholders' equity:
Common stock 142,642 142,607
Retained earnings and other 39,678 39,290
Total shareholders' equity 182,320 181,897
Total liabilities and
shareholders' equity $197,085 $197,452
SOURCE Pericom Semiconductor Corporation
-0- 10/19/2004
/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 ECP
SU: ERN CCA