Pericom Semiconductor Reports Q3 2007 Financial Results
SAN JOSE, Calif., April 26 /PRNewswire-FirstCall/ -- Pericom Semiconductor
Corporation (Nasdaq: PSEM), a worldwide preferred supplier of PCI Express
technology used for switching, timing, connecting and signal integrity, today
announced results for its third quarter of fiscal 2007, ended March 31, 2007.
Net revenues for the third quarter were $30.2 million, down $600,000 from
the $30.8 million reported in the second quarter and up 8.4 percent from the
$27.8 million reported in the comparable period last year. Gross margin was 33.9
percent, down from 34.6 percent last quarter, and 34.8 percent in the comparable
period last year. Net revenues and gross margin in the third quarter were
negatively affected by an inventory return reserve relating to a distributor
that terminated during the quarter. The reserve reduced net revenues by $719,000
and gross margin by 1.2 percent.
Net income in the quarter was a strong $2.6 million, or $0.10 per diluted
share, compared with net income of $2.3 million, or $0.08 per diluted share in
the second quarter and net income of $1.8 million, or $0.07 per diluted share,
in the same period a year ago. Net income for the third quarter grew despite FAS
123(R) expenses of $443,000. Net income for the third quarter benefited by $1.0
million due to the sale of 50 percent of one of the company's investments in a
privately-held semiconductor company.
Net revenues for the nine-month period ending March 31, 2007 were $91.8
million, up 19.9 percent from the $76.6 million reported in the prior year
comparable period. Net income for the nine-month period ending March 31, 2007
was $6.5 million, or $0.24 per diluted share, compared with net income of $3.9
million, or $0.14 per diluted share, in the same period a year ago.
"We are very pleased to have reported another sequential increase in net
profit this quarter," said Alex Hui, president and chief executive officer.
"This is the highest net income we have seen in almost six years."
"At the recent Intel Developer Forum, we introduced our GreenPacket(TM)
family of PCI Express packet switches, which are designed for power, size and
value-sensitive applications. We are already engaged with several high volume
customers and expect to see adoption of this new family in the quarters to
come," he said.
Q3 NEW PRODUCTS
With the release of three new Generation 2 phase jitter compliant HCSL
differential clock buffers and a new clock synthesizer, Pericom further expanded
its PCI-Express offerings in addressing the critical clock distribution needs of
servers, high-end desktops and mobile platforms.
The company began sampling new, low-power small PCI-Express packet switch
family to top tier OEM customers. The GreenPacket(TM) switch product family is
designed for power, size and value sensitive applications, such as volume
motherboard/workstation, docking stations, networking control planes, video,
graphics, embedded applications and mobile applications.
Pericom also sampled two newly developed small form factor analog switch
products. Target applications include cell phones, MP3/MP4 players and PDAs.
Fiscal Q4 2007 OUTLOOK
The following statements are based on current expectations. These statements
are forward looking, and actual results may differ materially.
* The company continues to be in a high turns environment and therefore
revenue visibility remains limited. Depending upon the strength of turns
orders, revenues in the fourth fiscal quarter are expected to be in the
range of $31.0 million to $32.0 million.
* Gross margins are expected to be in the 35 to 36 percent range. Margins
are influenced by the product mix of turns business and sales, if any, of
previously reserved inventory.
* Operating expenses are expected to be in the range of $9.7 to $9.9
million.
* Other income is expected to be approximately $1.2 million, consisting
primarily of interest income.
CONFERENCE CALL
The press release will be followed by a conference call beginning at 1:30
p.m. Pacific time. To listen to the call, dial (210) 234-0007. The passcode is
Pericom.
A taped replay of the conference call will be made available for one week.
To listen to the replay, dial (210) 369-1863. The Pericom financial results
conference call will be available via a live webcast on the investor relations
section of the web site at http://www.pericom.com/investor. Access the web site
15 minutes prior to the start of the call to download and install any necessary
audio software. An archived webcast replay will be available on the web site for
12 months.
About Pericom
Pericom Semiconductor Corporation (NASDAQ: PSEM) offers customers worldwide
the industry's most complete silicon and quartz-based solutions for the
Computing, Communications and Consumer 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, Calif., 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 'Fiscal Q4 2007 Outlook' and
statements regarding the future adoption of our GreenPacket(TM) family of PCI
Express packet switches. 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, unexpected difficulties in developing new products,
customer decisions to reduce inventory, economic or financial difficulties
experienced by our customers, 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 July 1, 2006, our quarterly reports on Form 10-Q for the
quarters ended September 30, 2006 and December 30, 2006 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)
Three Months Ended Nine Months Ended
Mar 31 Dec 30, Apr 1 Mar 31 Apr 1
2007 2006 2006 2007 2006
Net revenues $30,182 $30,842 $27,847 $91,850 $76,590
Cost of revenues 19,960 20,176 18,157 60,530 49,605
Gross profit 10,222 10,666 9,690 31,320 26,985
Operating expenses:
Research and development 4,048 4,040 4,170 12,030 12,040
Selling, general and
administrative 5,342 4,919 4,394 16,056 13,569
Restructuring charge 0 0 0 0 55
Total 9,390 8,959 8,564 28,086 25,664
Income from operations 832 1,707 1,126 3,234 1,321
Interest and other income 2,496 1,151 888 4,927 2,698
Other than temporary decline
in value of investment (5) 0 (31) (6) (64)
Income before income taxes 3,323 2,858 1,983 8,155 3,955
Income tax expense 788 691 641 2,099 1,245
Minority interest in income
(loss) in consolidated
subsidiary (7) (21) 32 (37) 93
Equity in income (loss) of
investees 86 110 464 476 1,072
Net income $2,614 $2,256 $1,838 $6,495 $3,875
Basic income per share $0.10 $0.09 $0.07 $0.25 $0.15
Diluted income per share $0.10 $0.08 $0.07 $0.24 $0.14
Shares used in computing
basic income per share 26,109 26,113 26,207 26,118 26,271
Shares used in computing
diluted income per share 26,702 26,783 26,984 26,725 27,033
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
As of As of
Mar 31,2007 Jul 1, 2006
(unaudited) (1)
Assets
Current Assets:
Cash & cash equivalents $8,544 $12,577
Restricted cash 302 950
Short-term investments 88,989 52,761
Accounts receivable 20,604 23,306
Inventories 14,047 16,742
Prepaid expenses and other
current assets 700 508
Deferred income taxes 3,672 4,709
Total current assets 136,858 111,553
Property and equipment, net 23,294 24,376
Investment in unconsolidated
affiliates 9,656 9,056
Deferred income taxes-non current 4,922 5,043
Long-term investment in marketable
securities 31,788 56,297
Goodwill 1,348 1,348
Intangible assets 2,838 2,976
Other assets 2,077 3,037
Total assets $212,781 $213,686
Liabilities and
Shareholders' Equity
Current liabilities:
Accounts payable $11,571 $10,435
Accrued liabilities 7,094 7,243
Short-term and current portion
of long-term debt 694 5,756
Total current
liabilities 19,359 23,434
Long-term debt 1,323 3,482
Deferred tax liabilities 1,288 1,288
Other long-term liabilities 3 402
Minority interest in consolidated
subsidiaries 1,006 969
Total liabilities 22,979 29,575
Shareholders' equity:
Common stock and paid in capital 136,955 138,483
Retained earnings and other
comprehensive loss 52,847 45,628
Total shareholders'
equity 189,802 184,111
Total liabilities and
shareholders' equity $212,781 $213,686
(1) The information in this column was derived from the Company's audited
consolidated financial statements for the year ended July 1, 2006.