Exhibit 99.1
PERICOM SEMICONDUCTOR REPORTS FISCAL SECOND QUARTER RESULTS
SAN JOSE, Calif., Feb. 2 /PRNewswire-FirstCall/ -- Pericom Semiconductor
Corporation (Nasdaq: PSEM) today announced results for its fiscal second
quarter ended December 31, 2004. Results include the acquired operations of
SaRonix LLC since October 1, 2003.
Net revenues for the second quarter were $19,217,000, down 2.9% from
$19,786,000 in the preceding quarter and are up 14.0% from $16,850,000 in the
comparable period last year. GAAP net loss for the quarter was $303,000, or
($0.01) per share, compared to GAAP net income of $151,000, or $0.01 per share
(diluted), in the preceding quarter and versus a GAAP net loss of $1,875,000, or
($0.07) per share, in the comparable period a year ago. Net revenues for the six
months ended December 31, 2004 were $39,003,000, up 39.7% from $27,922,000 a
year ago. GAAP net loss for the six month period ending December 31, 2004 was
$152,000, or ($0.01) per share, as compared with a GAAP net loss of $2,675,000,
or ($0.10) per share, in the prior year comparable period.
Our GAAP financial results include non-recurring charges or events 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.
Pro forma net income in the quarter ended December 31, 2004 was $201,000, or
$0.01 per share (diluted), compared with net income of $151,000, or $0.01 per
share (diluted), in the preceding quarter and a pro forma net loss of $629,000,
or ($0.02) per share, in the comparable period a year ago. There were no pro
forma adjustments to the results for the quarter ended September 30, 2004. Pro
forma net income for the six month period ending December 31, 2004 was $352,000,
or $0.01 per share (diluted), as compared with a pro forma net loss of
$1,429,000, or ($0.06) per share, in the prior year comparable period.
Alex Hui, President and Chief Executive Officer of Pericom said, "We are
pleased to deliver revenues in the midpoint of our guidance and pro forma gross
margins at the upper end of our guidance. Gross margins on our core IC business
are at their highest level since March 2001. This is evidence of the success of
our ongoing shift to higher margin focus products that now represent over 55% of
our IC revenues. We continue to provide an increasing breadth of solutions to
our focus markets, and new markets such as cell phones and digital media. We
will continue to expand our high value-added Application Specific Interface
Solutions to our customers served markets. This is an important part of our
overall plan to drive improvement in our operating results."
NEW PRODUCTS
The Company launched eight new Clock IC and Analog Video switch products
targeting key markets including Networking, Telecom and Digital Media
applications and we are continuing to enhance our frequency control product
offerings.
SiliconClock:
* PI6C487016 & PI6C487020 are low-skew, high-frequency programmable
output clock drivers. The devices provide 4 banks of outputs with the
flexibility of divided frequencies, and choice of output voltages
including 1.2V, 1.8V, 2,5V or 3.3V.
* PI6C22392-1 & PI6C2292-3 are multimedia & system peripheral clock
generators for HDTV applications.
* PI6C18551 is a 3.3V/5V, 1-to-4 clock buffer with very low skew, low
noise, and frequencies up to 160 MHz. The buffer targets networking
and telecom applications such as fiber channel, Fast Ethernet, PCI,
PCI-X, and SONET.
* PI6CV855 is a DDR-2 PLL clock driver with very low jitter of less than
+/-75ps.
* PI6X100-27 is a 3.3V VCXO for set top applications and offers a wide
pull-range.
SiliconSwitch
* PI5V330S is a low on-resistance wide-bandwidth analog video switch
with enhanced ESD tolerance. This is an enhanced version of our
popular 5V330 video switch for both RGB and composite video switching
applications.
Frequency Control Products
* Custom Pericom-designed silicon was integrated into several of our
high-speed (up to 160MHz) quartz clock oscillator products, allowing
much improved performance in high-speed networking applications.
MARCH 2005 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 up 1% to down 4%,
depending on the strength of turns orders.
* Gross margin is expected to be in the 36-37% 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 second 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 3829326. A replay of the second
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 3829326.
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. pacific time today through March 4, 2005 (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 2005 Quarter Outlook'
and statements regarding the Company's ongoing shift to higher margin focus
products, our expansion of Application Specific Interface Solutions, our future
improvements in operating results, and our future enhancements of frequency
control product offerings. 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, 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/A 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 Six Months Ended
------------------------------------------ ---------------------------
Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
2004 2004 2003 2004 2003
------------ ------------ ------------ ------------ ------------
Net revenues $ 19,217 $ 19,786 $ 16,850 $ 39,003 $ 27,922
Cost of revenues 13,219 12,806 12,262 26,025 20,116
Gross profit 5,998 6,980 4,588 12,978 7,806
Operating expenses:
Research and development 3,485 3,716 3,987 7,201 7,197
Selling, general and
administrative 3,707 3,832 4,292 7,539 6,807
Restructuring charge 0 0 784 0 784
Total 7,192 7,548 9,063 14,740 14,788
Loss from operations (1,194) (568) (4,475) (1,762) (6,982)
Other income, net 885 808 1,064 1,693 2,125
Write down of nonmarketable
investment (96) 0 0 (96) (9)
Income (loss) before income
taxes (405) 240 (3,411) (165) (4,866)
Income tax (benefit) (102) 89 (1,536) (13) (2,191)
Net income (loss) $ (303) $ 151 $ (1,875) $ (152) $ (2,675)
Basic earnings (loss) per
share $ (0.01) $ 0.01 $ (0.07) $ (0.01) $ (0.10)
Diluted earnings (loss) per
share $ (0.01) $ 0.01 $ (0.07) $ (0.01) $ (0.10)
Shares used in computing
basic earnings (loss)
per share 26,554 26,515 25,928 26,534 25,872
Shares used in computing
diluted earnings (loss)
per share 26,554 27,268 25,928 26,534 25,872
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,
2004 2004 2003 2004 2003
------------ ------------ ------------ ------------ ------------
Net revenues $ 19,217 $ 19,786 $ 16,850 $ 39,003 $ 27,922
Cost of revenues 12,175 12,806 11,582 24,981 19,436
Gross profit 7,042 6,980 5,268 14,022 8,486
Operating expenses:
Research and development 3,485 3,716 3,594 7,201 6,804
Selling, general and
administrative 4,120 3,832 3,882 7,952 6,397
Total 7,605 7,548 7,476 15,153 13,201
Loss from operations (563) (568) (2,208) (1,131) (4,715)
Other income, net 885 808 1,064 1,693 2,125
Write down of nonmarketable
investment (96) 0 0 (96) (9)
Income (loss) before income
taxes 226 240 (1,144) 466 (2,599)
Income tax (benefit) 25 89 (515) 114 (1,170)
Net income (loss) $ 201 $ 151 $ (629) $ 352 $ (1,429)
Basic earnings (loss) per
share $ 0.01 $ 0.01 $ (0.02) $ 0.01 $ (0.06)
Diluted earnings (loss) per
share $ 0.01 $ 0.01 $ (0.02) $ 0.01 $ (0.06)
Shares used in computing
basic earnings (loss)
per share 26,554 26,515 25,928 26,534 25,872
Shares used in computing
diluted earnings (loss)
per share 27,342 27,268 25,928 27,305 25,872
Pericom Semiconductor Corporation
Reconciliation of Net Income (Loss) In Accordance With GAAP to Pro Forma Net
Income (Loss)
(In thousands)
(unaudited)
Three Months Ended Six Months Ended
------------------------------------------ ---------------------------
Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
2004 2004 2003 2004 2003
------------ ------------ ------------ ------------ ------------
Net income (loss) in accordance
with GAAP $ (303) $ 151 $ (1,875) $ (152) $ (2,675)
Workforce reduction (Note 1) $ 230 $ 230
Restructuring charge (Note 2) $ 784 $ 784
End of life program inventory $ 1,044 $ 1,044
reserve charge (Note 3)
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
Gain on sale of Ireland building
(Note 7) $ (413) $ (413)
Income tax benefit (Note 8) $ (127) $ (1,021) $ (127) $ (1,021)
Net income (loss) on a Pro Forma
basis $ 201 $ 151 $ (629) $ 352 $ (1,429)
Notes to pro forma adjustments:
Note 1: In November 2003, we reduced our total workforce by approximately
12% 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.
Note 3: In December 2004, we wrote off inventory obsoleted by a product
end-of-life program.
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 expense.
Note 7: In November 2004, we sold a building acquired in the SaRonix
acquisition for a gain.
Note 8: To adjust income tax/(benefit) for above pro forma adjustments.
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
As of As of
Dec 31, 2004 Jun 30, 2004
------------- -------------
(unaudited)
Assets
Current Assets:
Cash & cash equivalents $ 8,338 $ 13,965
Short-term investments 134,768 130,412
Accounts receivable 8,779 7,549
Inventories 14,552 15,980
Prepaid expenses and other
current assets 627 664
Deferred income taxes 5,377 5,564
Total current assets 172,441 174,134
Property and equipment, net 6,168 6,442
Investment in and advances to
Pericom Technology, Inc. 6,896 7,019
Deferred income taxes-non current 1,478 1,419
Other assets 6,661 8,438
Total assets $ 193,644 $ 197,452
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 5,955 $ 8,153
Accrued liabilities 5,450 5,972
Current portion of long-term debt 0 1,291
Total current liabilities 11,405 15,416
Other long term liabilities 0 139
Total liabilities 11,405 15,555
Minority interest in consolidated subsidiary 305 0
Total minority interest 305 0
Shareholders' equity:
Common stock 142,771 142,607
Retained earnings and other 39,163 39,290
Total shareholders' equity 181,934 181,897
Total liabilities and
shareholders' equity $ 193,644 $ 197,452
SOURCE Pericom Semiconductor Corporation
-0- 02/02/2005
/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 /