Exhibit 99.1
PERICOM SEMICONDUCTOR REPORTS FISCAL THIRD QUARTER RESULTS
SAN JOSE, Calif., April 21 /PRNewswire-FirstCall/ -- Pericom Semiconductor
Corporation (Nasdaq: PSEM) today announced results for its fiscal third quarter
ended March 31, 2005. Results include the acquired operations of SaRonix LLC
since October 1, 2003.
Net revenues for the third quarter were $19,433,000, up 1.1% from
$19,217,000 in the preceding quarter and are up 5.2% from $18,466,000 in the
comparable period last year. GAAP net income for the quarter was $134,000, or
$0.00 per share (diluted), compared to a GAAP net loss of $303,000, or ($0.01)
per share, in the preceding quarter and versus a GAAP net loss of $96,000, or
($0.00) per share, in the comparable period a year ago. Net revenues for the
nine months ended March 31, 2005 were $58,436,000, up 26.0% from $46,388,000 a
year ago. GAAP net loss for the nine month period ending March 31, 2005 was
$18,000, or ($0.00) per share, as compared with a GAAP net loss of $2,771,000,
or ($0.11) 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 March 31, 2005 was $167,000, or
$0.01 per share (diluted), compared with pro forma net income of $201,000, or
$0.01 per share (diluted), in the preceding quarter and a pro forma net loss of
$56,000, or ($0.00) per share, in the comparable period a year ago. Pro forma
net income for the nine month period ending March 31, 2005 was $519,000, or
$0.02 per share (diluted), as compared with a pro forma net loss of $1,434,000,
or ($0.06) per share, in the prior year comparable period.
Alex Hui, President and Chief Executive Officer of Pericom said, "With
revenues and margins at the top of our guidance and expenses under guidance, we
are very encouraged to see this ongoing evidence of the successful execution of
our strategy. Our integrated circuit (IC) business gross margin remained above
40% and overall gross margin rose another 30 basis points from the prior quarter
and improved 330 basis points from the comparable quarter a year ago. Our focus
products continue to represent approximately 55% of our IC business. We have
seen very solid revenue growth in our Connect/PCI Bridge product line which grew
37% from the previous quarter and 76% year over year. The restructuring of our
workforce announced in February 2005 helped drive the reduction in operating
expenses and the increase in gross margin. Going forward, our emphasis will
continue to be building upon the success of our focus IC products, offering
increased Application Specific Interface Solutions to our customers served
markets, and leveraging the synergies of our IC and frequency control product
lines to drive improved operating results across the company."
NEW PRODUCTS
The Company launched 16 new Clock, Analog Switch and Interface Logic
products supporting Computing, Networking and Digital Video applications in the
March quarter.
SiliconClock:
-- PI6C410B, PI6C410B-01, and PI6C410M-01 Clock Generator IC's for Intel
based PCI-Express Server and Notebook chipsets.
-- PI6C20400, PI6C20800, and PI6C21200 are 4, 8, and 12 output
PCI-Express Clock buffers for notebook and server markets.
-- PI6CUA877 and PI6CUA878 are PLL Clock Buffers for DDR-II-667/800
DIMMs.
-- PI6C48530, PI6C48530-01, PI6C48543, PI6C48545, and PI6C48545-11 are
LVPECL and LVDS clock buffer/converters for high-speed Networking
applications.
SiliconSwitch:
-- PI2PCIE412-C, a PCI-Express compliant signal switch for PC, Servers,
Notebook, and Networking/Telecom applications. We have already
obtained key design wins at major motherboard companies.
-- PI3HDMI412, an ASSP analog switch supporting HDMI/DVI switching in
high performance digital video applications.
SiliconInterface:
-- PI74SSTUA32864 DDR-II-667, an Address Register for DDR-II Memory
Modules.
Frequency Control Products:
-- S1613XP, S1614XP, SEL383, and SEL382, Four new families of 3.3
volt/2.5 volt CMOS/LVPECL crystal clock oscillators in the frequency
range of 100 MHz to 160 MHZ with Pericom silicon inside. The devices
achieve very low jitter and tight frequency stability and are designed
for improved reliability and cost in high-speed networking, server,
and storage applications.
JUNE 2005 QUARTER OUTLOOK
The following statements are based on current expectations. These
statements are forward looking, and actual results may differ materially.
-- We are entering the quarter with an improved backlog position and the
quarter will be 14 weeks instead of 13 weeks in the prior quarter. As
we continue to be in a high turns environment and visibility therefore
remains limited, we expect revenues to be up within a range of 6-10%
from the prior quarter depending on the strength of turns orders.
-- Gross margin is expected to remain in the 37% range, plus or minus 50
basis points, but this continues to be highly dependent on the product
mix of turns business.
-- Operating expenses are expected to increase 2-4% from the prior
quarter primarily as a result of the extra week in the quarter.
-- Other income is expected to be approximately $0.9 million.
-- We are now required to report separately our equity in the income or
loss of unconsolidated subsidiaries. This was previously included with
Other Income. This is currently estimated to be a loss of
approximately $0.2 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. pacific time today. The conference call may be accessed by calling
800-949-8963 and referencing conference number 5447863. A replay of the third
quarter results conference call will be available for 7 days commencing from
4:30 p.m. pacific time today. The replay telephone number is 800-642-1687
(domestic) or 706-645-9291 (international) and the access code is 5447863.
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 May 21, 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 'June 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, our future enhancements of frequency control
product offerings and the leveraging of the synergies of our IC and frequency
control product lines. 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 that
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,
2005 2004 2004 2005 2004
---------- ---------- ---------- ---------- ----------
Net revenues $ 19,433 $ 19,217 $ 18,466 $ 58,436 $ 46,388
Cost of revenues 12,262 13,219 12,275 38,287 32,391
Gross profit 7,171 5,998 6,191 20,149 13,997
Operating expenses:
Research and development 3,678 3,485 3,451 10,879 10,648
Selling, general and
administrative 3,849 3,707 4,277 11,388 11,084
Restructuring charge 243 0 0 243 784
Total 7,770 7,192 7,728 22,510 22,516
Loss from operations (599) (1,194) (1,537) (2,361) (8,519)
Other income, net 913 875 1,020 2,719 3,008
Recovery (write down) of
nonmarketable investment (4) (96) 4 (100) (5)
Income (loss) before income
taxes 310 (415) (513) 258 (5,516)
Income tax (benefit) 125 (102) (269) 112 (2,460)
Minority interest in income
(loss) in consolidated
subsidiary 22 10 0 32 0
Equity in income (loss) in
unconsolidated subsidiary (73) 0 148 (196) 285
Net income (loss) $ 134 $ (303) $ (96) $ (18) $ (2,771)
Basic earnings (loss) per
share $ 0.01 $ (0.01) $ (0.00) $ (0.00) $ (0.11)
Diluted earnings (loss) per
share $ 0.00 $ (0.01) $ (0.00) $ (0.00) $ (0.11)
Shares used in computing
basic earnings (loss)
per share 26,531 26,554 26,166 26,533 25,970
Shares used in computing
diluted earnings (loss)
per share 27,112 26,554 26,166 26,533 25,970
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,
2005 2004 2004 2005 2004
---------- ---------- ---------- ---------- ----------
Net revenues $ 19,433 $ 19,217 $ 18,466 $ 58,436 $ 46,388
Cost of revenues 12,262 12,175 12,262 37,243 31,698
Gross profit 7,171 7,042 6,204 21,193 14,690
Operating expenses:
Research and development 3,678 3,485 3,436 10,879 10,240
Selling, general and
administrative 3,849 4,120 4,046 11,801 10,443
Total 7,527 7,605 7,482 22,680 20,683
Loss from operations (356) (563) (1,278) (1,487) (5,993)
Other income, net 913 875 1,020 2,719 3,008
Recovery (write down) of
nonmarketable investment (4) (96) 4 (100) (5)
Income (loss) before income
taxes 553 216 (254) 1,132 (2,990)
Income tax (benefit) 335 25 (50) 449 (1,271)
Minority interest in income
(loss) in consolidated
subsidiary 22 10 0 32 0
Equity in income (loss) in
unconsolidated subsidiary (73) 0 148 (196) 285
Net income (loss) $ 167 $ 201 $ (56) $ 519 $ (1,434)
Basic earnings (loss) per
share $ 0.01 $ 0.01 $ (0.00) $ 0.02 $ (0.06)
Diluted earnings (loss) per
share $ 0.01 $ 0.01 $ (0.00) $ 0.02 $ (0.06)
Shares used in computing
basic earnings (loss)
per share 26,531 26,554 26,166 26,533 25,970
Shares used in computing
diluted earnings (loss)
per share 27,112 27,342 26,166 27,241 25,970
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,
2005 2004 2004 2005 2004
---------- ---------- ---------- ---------- ----------
Net income (loss) in accordance
with GAAP $ 134 $ (303) $ (96) (18) $ (2,771)
Workforce reduction (Note 1) $ 243 243 $ 230
Restructuring charge (Note 2) $ 784
End of life program inventory
reserve charge (note 3) $ 1,044 $ 1,044
SaRonix inventory fair value
adjustment (Note 4) $ 573
Write off furniture & fixtures
(Note 5) $ 45 $ 45
Moving Cost (Note 6) $ 214 $ 214
Write off of in-process R&D
(Note 7) $ 360
Amortization of customer backlog
(Note 8) $ 320
Gain on sale of Ireland building
(Note 9) $ (413) $ (413)
Income tax (benefit) (Note 10) $ (210) $ (127) (219) $ (337) (1,189)
Net income (loss) on a Pro Forma
basis $ 167 $ 201 $ (56) $ 519 $ (1,434)
Notes to pro forma adjustments:
Note 1: In February 2005 & November 2003, we reduced our total workforce by
approximately 10% and 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 recorded a non-recurring charge to inventory
reserves related to 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 February 2004 we wrote off the net book value of the furniture
and fixtures no longer in use due to the move referred to in note 6.
Note 6: In the three months ended March 2004, we recorded a non-recurring
charge related to the move to new corporate headquarters.
Note 7: In the three months ended December 2003, we wrote off the cost of
acquired in-process R&D.
Note 8: 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 9: In November 2004, we sold a building in Ireland that resulted in a
gain
Note 10: The tax benefit relating to the pro forma adjustments above.
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
As of As of
Mar 31, 2005 Jun 30, 2004
(unaudited)
------------ ------------
Assets
Current Assets:
Cash & cash equivalents $ 5,828 $ 13,965
Short-term investments $ 135,750 $ 130,412
Accounts receivable 10,497 7,549
Inventories 13,445 15,980
Prepaid expenses and other
current assets 692 664
Deferred income taxes 5,606 5,564
Total current assets 171,818 174,134
Property and equipment, net 5,788 6,442
Investment in and advances to
Pericom Technology, Inc. 6,823 7,019
Deferred income taxes-non current 1,888 1,419
Other assets 6,777 8,438
Total assets $ 193,094 $ 197,452
Liabilities and
Shareholders' Equity
Current liabilities:
Accounts payable $ 6,391 $ 8,153
Accrued liabilities 5,478 5,972
Current portion of long-term
debt 0 1,291
Total current
liabilities 11,869 15,416
Other long term liabilities 68 139
Total liabilities 11,937 15,555
Minority interest in consolidated
subsidiary 283 0
Total minority Interest 283 0
Shareholders' equity:
Common stock 142,198 142,607
Retained earnings and other 38,676 39,290
Total shareholders' equity 180,874 181,897
Total liabilities and
shareholders' equity $ 193,094 $ 197,452
SOURCE Pericom Semiconductor Corporation
-0- 04/21/2005
/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 /
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