-- Net revenues increased 13% sequentially, and 40% year-over-year. -- Gross margin increased 146 basis points sequentially. -- GAAP net income attributable to Pericom shareholders increased 28% sequentially and 277% year-over-year.Pericom Semiconductor Corporation (
-- Expanding its solutions for high-speed serial protocol signal integrity, Pericom introduced 2 new ReDriver™ products addressing SATA2 and USB3 protocols. These products are intended for volume computing and embedded applications. -- Adding to high speed connectivity solutions, Pericom introduced 3 new switching and connectivity products across PCIe, USB, VGA, and Display Port protocols. The PCIe to USB2.0+PCIe product is the first to combine bridging and switching of multiple high-speed serial protocols. These products target the computing, server, networking, and embedded market segments. -- Expanding its timing solutions for next generation platforms, Pericom introduced 4 new products -- 2 advanced clock generators aimed at access router networking platforms, 1 advanced crystal oscillator (XO) targeting 10Gb Ethernet, and a new family of very small footprint crystals aimed at volume ultra-mobility products such as cell phones, PDA, and smart card applications.Share Repurchase Update On April 29, 2008, our Board of Directors authorized the repurchase of $30 million of our common stock. Pursuant to the 2008 authority, the Company repurchased 467,408 shares in the three months ended July 3, 2010 for an aggregate cost of $4,429,066 and an average per share purchase price of $9.48. The remaining balance of potential share repurchases under the 2008 authority is approximately $17.8 million. PTI Acquisition Pericom announced today that it has entered into a definitive agreement to acquire all remaining outstanding shares of Pericom Technology, Inc. ("PTI") for up to approximately $35 million in cash. Pericom previously held a 40.6% ownership in PTI on a fully diluted basis and accounted for its investment in PTI using the equity method due to Pericom's significant influence over its operations. PTI is a fabless IC provider of timing, power management, and analog switch products that are sold primarily to Asian telecom, consumer, and ultra-mobility market segments. The company was incorporated in the British Virgin Islands in 1994, and is headquartered in Hong Kong, with significant operations in Shanghai and Shenzhen, People's Republic of China. For additional information about the PTI acquisition, please refer to the Pericom press release library at http://www.pericom.com/press/211/ and click on the link for the press release dated August 9, 2010 describing Pericom's acquisition of PTI. Fiscal Q1 2011 Outlook The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.
-- Revenues in the first fiscal quarter are expected to be in the range of $40.5 million to $42.5 million. -- Gross margins are expected to be in the 36% to 38% range. -- Operating expenses are expected to be in the range of $11.0 to $11.5 million, which include stock-based compensation expense of approximately $1.2 million. -- Other income is expected to be approximately $0.9 million. -- Net income from unconsolidated affiliates PTI and JCP is expected to be approximately $0.6 million. -- The effective tax rate is expected to be approximately 32%.Fiscal Q1 2011 Outlook -- with the acquisition of PTI We expect to complete the acquisition of PTI late in the first quarter. Below is our guidance with the inclusion of PTI as if the acquisition is completed at the start of September. These statements are forward-looking, and actual results may differ materially.
-- Revenues in the first fiscal quarter are expected to be in the range of $42.0 million to $45.0 million. -- Gross margins are expected to be in the 37% to 38% range. -- Operating expenses are expected to be in the range of $11.9 to $12.5 million, which include stock-based compensation expense of approximately $1.2 million, and also $0.5 million of one-time acquisition related expense. -- Other income is expected to be approximately $0.9 million. -- Net income from unconsolidated affiliates PTI (before acquisition) and JCP is expected to be approximately $0.4 million. -- The effective tax rate is expected to be approximately 31%.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 (877) 377-7103 and reference "Pericom." A slide presentation will accompany the conference call. To view the slides, please visit the investor relations section of www.pericom.com. 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. 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 approximately 90 days. A taped replay of the conference call will be made available for the period from this evening through midnight on Monday, August 16th. To listen to the replay, dial (800) 642-1687 and reference conference ID 92282911. About Pericom Pericom Semiconductor Corporation (
Pericom Semiconductor Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
-------------------------------- --------------------
July 3 Mar 27 Jun 27 July 3 Jun 27
2010 2010 2009 2010 2009
---------- ---------- --------- --------- ---------
Net revenues $ 41,495 $ 36,661 $ 29,721 $ 146,913 $ 128,645
Cost of revenues 26,246 23,723 21,193 96,146 85,514
---------- ---------- --------- --------- ---------
Gross profit 15,249 12,938 8,528 50,767 43,131
Operating expenses:
Research and
development 4,575 4,251 4,117 17,208 16,697
Selling, general
and
administrative 7,413 6,201 5,343 26,478 22,833
Restructuring
charge - - 74 - 584
---------- ---------- --------- --------- ---------
Total operating
expenses 11,988 10,452 9,534 43,686 40,114
---------- ---------- --------- --------- ---------
Income (loss) from
operations 3,261 2,486 (1,006) 7,081 3,017
Interest and other
income 1,072 1,219 1,677 5,222 5,548
Other than temporary
decline in value of
investment - - - - (506)
---------- ---------- --------- --------- ---------
Income before income
taxes 4,333 3,705 671 12,303 8,059
Income tax expense
(benefit) 1,174 1,260 (135) 3,911 2,209
---------- ---------- --------- --------- ---------
Net income from
consolidated
companies 3,159 2,445 806 8,392 5,850
Equity in net income
of unconsolidated
affiliates 759 608 256 2,430 351
---------- ---------- --------- --------- ---------
Net income 3,918 3,053 1,062 10,822 6,201
Net income
attributable to
noncontrolling
interests - - (22) (28) (114)
---------- ---------- --------- --------- ---------
Net income
attributable to
Pericom
shareholders $ 3,918 $ 3,053 $ 1,040 $ 10,794 $ 6,087
========== ========== ========= ========= =========
Basic income per
share to Pericom
shareholders $ 0.16 $ 0.12 $ 0.04 $ 0.42 $ 0.24
========== ========== ========= ========= =========
Diluted income per
share to Pericom
shareholders $ 0.15 $ 0.12 $ 0.04 $ 0.42 $ 0.24
========== ========== ========= ========= =========
Shares used in
computing basic
income per share 25,210 25,386 25,354 25,412 25,417
========== ========== ========= ========= =========
Shares used in
computing diluted
income per share 25,582 25,697 25,485 25,717 25,626
========== ========== ========= ========= =========
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
As of As of
July 3, 2010 Jun 27, 2009
------------ ------------
Assets
Current assets:
Cash & cash equivalents $ 29,495 $ 37,321
Restricted cash - 3,200
Short-term investments 76,454 75,471
Accounts receivable - trade 25,365 22,875
Inventories 23,431 16,340
Prepaid expenses and other current assets 6,825 3,738
Deferred income taxes 3,119 2,433
------------ ------------
Total current assets 164,689 161,378
Property, plant and equipment - net 50,760 47,238
Investments in unconsolidated affiliates 13,183 10,826
Deferred income taxes non current 3,868 4,913
Long-term investments in marketable securities 12,977 11,780
Goodwill 1,681 1,673
Intangible assets 1,452 1,764
Other assets 7,438 6,742
------------ ------------
Total assets $ 256,048 $ 246,314
============ ============
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 15,585 $ 10,824
Accrued liabilities and other 10,781 15,118
Current portion of long-term debt - 60
------------ ------------
Total current liabilities 26,366 26,002
Long-term debt - 1,610
Industrial development subsidy 6,577 3,718
Other long-term liabilities 1,199 1,287
------------ ------------
Total liabilities 34,142 32,617
Shareholders' equity:
Common stock and paid in capital 130,536 133,162
Retained earnings and other comprehensive
income 91,370 79,302
------------ ------------
Total Pericom shareholders' equity 221,906 212,464
Noncontrolling interests in consolidated
subsidiaries - 1,233
------------ ------------
Total shareholders' equity 221,906 213,697
------------ ------------
Total liabilities and shareholders'
equity $ 256,048 $ 246,314
============ ============
Pericom Semiconductor Corporation
Share-Based Compensation
(In thousands)
(unaudited)
Three Months Twelve Months
Ended Ended
----------------------- ---------------
July 3 Mar 27 Jun 27 July 3 Jun 27
2010 2010 2009 2010 2009
------- ------- ------- ------- -------
Cost of revenues $ 88 $ 70 $ 52 $ 286 $ 244
Research and development 441 371 359 1,506 1,407
Selling, general and administrative 659 557 477 2,257 1,935
------- ------- ------- ------- -------
$ 1,188 $ 998 $ 888 $ 4,049 $ 3,586
======= ======= ======= ======= =======
Contact Information: Contact: Aaron Tachibana Pericom Semiconductor Tel: 408 435-0800