Exhibit 99.1
PERICOM SEMICONDUCTOR REPORTS Q1 2007 FINANCIAL RESULTS
REVENUES UP 37.2 PERCENT OVER Q1 2006
SAN JOSE, Calif., Oct. 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 first quarter of fiscal 2007, ended Sept. 30, 2006.
Net revenues in the first quarter were $30.8 million, up 5.3 percent from
revenues in the fourth quarter and up 37.2 percent from the $22.5 million
reported in the comparable period last year. Net income in the quarter was $1.6
million, or $0.06 per diluted share compared with net income of $2.1 million, or
$0.08 per diluted share in the fourth quarter and versus net income of $0.6
million, or $0.02 per diluted share, in the same period a year ago.
"We are very pleased with our revenue growth in Q1, which was driven by
increased shipments of our HDMI switch products into digital video applications,
and the ramp-up of our PCI Express products for notebooks, servers and graphics
applications. We also expanded our product solutions for serial differential
protocols and continued to see strong interest from our customers," said Alex
Hui, President and Chief Executive officer.
Q1 NEW PRODUCTS
Continuing to expand upon the PCISIG certified PCI-e Packet Switch and
Bridge offerings, Pericom announced Packet24(TM), a family of 4 new PCI Express
Packet Switches, ranging from 3 port-12 lanes to 4 ports-24 lanes
configurations. These new products provide customers with a higher performance
and feature-set to fit their needs; they further broaden Pericom's comprehensive
PCI Express offerings. Target applications for Packet24(TM) include high volume
blade and motherboard servers, HBA and NIC cards, networking, embedded and
storage applications.
Enhancing Pericom's product positioning in high growth Digital Video
Platforms, the company has launched three new Spread-spectrum clock generators
(PI6C345x) and two VCXO's (PI6CX2xx) targeting DLP projectors, DLP TV, HDTV and
Digital Set-top box applications.
The company also released two new LVPECL differential clocks (PI6C4853xx)
for Gigabit Ethernet networking switch clock distribution application. These new
products target high growth communication platforms where applications require
precise timing distribution.
Fiscal Q2 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 are expected to be in the range of $30.8 million to $31.7
million in the second quarter. Gross margins are expected to be in the 35
percent to 37 percent range. Margins are influenced by the product mix of
turns business and sales, if any, of previously written down inventory.
* Operating expenses are expected to decrease to a range of $9.0 million to
$9.3 million.
* Other income is expected to be approximately $1.1 million, consisting
primarily of interest income.
* Equity in net income (loss) of investees is expected to be approximately
$200,000.
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.
CONFERENCE CALL
Pericom's first quarter results conference call will begin at 1:30 p.m.
Pacific time today. The conference call may be accessed by calling (866) 825-
3308 (domestic) or (617) 213-8062 (international) and referencing conference
number 40695799. 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 (888) 286-8010 (domestic) or (617) 801-6888 (international)
and the access code is 14950279. The conference call will be simultaneously
Webcast live at: www.pericom.com/investor followed by an on- demand Webcast
beginning at 4:30 p.m. Pacific time today (Webcast requires Windows
MediaPlayer). An archived webcast replay will be available on the web site for
12 months.
Pericom Semiconductor Corporation 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 Q2, 2007 Quarter
Outlook' and statements regarding the continued strong interest from our
customers. 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 eCERA 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 July 1, 2006 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
-------------------------------------
Sep 30 Jul 1 Oct 1
2006 2006 2005
---------- ---------- ----------
As
Restated
Net revenues $ 30,826 $ 29,288 $ 22,473
Cost of revenues 20,394 19,047 14,967
Gross profit 10,432 10,241 7,506
Operating expenses:
Research and development 3,942 4,174 3,753
Selling, general and administrative 5,795 4,921 4,182
Restructuring charge 0 0 55
Total 9,737 9,095 7,990
Income (loss) from operations 695 1,146 (484)
Other income, net 1,280 835 898
(Write down) of nonmarketable investment (1) 0 0
Income before income taxes 1,974 1,981 414
Income tax 620 607 137
Minority interest in
consolidated subsidiary (9) 6 23
Equity in income of
unconsolidated subsidiary 280 724 325
Net income $ 1,625 $ 2,104 $ 625
Basic earnings per share $ 0.06 $ 0.08 $ 0.02
Diluted earnings per share $ 0.06 $ 0.08 $ 0.02
Shares used in computing
basic earnings per share 26,131 26,206 26,352
Shares used in computing
diluted earnings per share 26,714 26,879 27,143
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
As of As of
Sep 30, 2006 Jul 1, 2006
------------- -------------
Assets
Current Assets:
Cash & cash equivalents $ 9,788 $ 12,577
Restricted cash 608 950
Short-term investments 78,447 52,761
Accounts receivable 22,270 23,306
Inventories 15,419 16,742
Prepaid expenses and other current assets 787 508
Deferred income taxes 4,109 4,709
Total current assets 131,428 111,553
Property and equipment, net 24,326 24,376
Investment in unconsolidated subsidiaries 9,332 9,056
Deferred income taxes-non current 5,050 5,043
Long term marketable securities 33,615 56,297
Intangibles and other assets 7,273 7,361
Total assets $ 211,024 $ 213,686
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 10,722 $ 10,435
Accrued liabilities 6,617 7,243
Current portion of long-term debt 2,776 5,756
Total current liabilities 20,115 23,434
Long-term debt 2,600 3,482
Deferred income taxes-non current 1,288 1,288
Other long term liabilities 333 402
Total liabilities 24,336 28,606
Minority interest in consolidated subsidiary 978 969
Total minority Interest 978 969
Shareholders' equity:
Common stock 138,128 138,483
Retained earnings and other 47,582 45,628
Total shareholders' equity 185,710 184,111
Total liabilities
and shareholders' equity $ 211,024 $ 213,686
SOURCE Pericom Semiconductor Corporation
-0- 10/26/2006
/CONTACT: Alexis Pascal, alexis@stapleton.com, or Deborah Stapleton,
deb@stapleton.com, of Stapleton Communications, +1-650-470-0200, for Pericom
Semiconductor Corporation/
/Web site: http://www.pericom.com/
(PSEM)