-- For 2009 Q1, Pericom did not record a decline in value of $414,000 on
its income statement relating to an obligation owed by Lehman Brothers
Holdings after Lehman filed for bankruptcy on September 15, 2008.
Pericom's internal accounting review failed to conclude that this
impairment was other-than-temporary and to include this impairment in the
income statement for 2009 Q1.
-- For 2009 Q2, in connection with the conversion of Pericom's enterprise
resource planning software, there was an inadvertent misclassification of
cost data. This misclassification led to an understatement of cost of
goods sold by $772,000. This error was not quantified or identified until
balance sheet reconciliations with subledgers became available and were
completed after 2009 Q3 results were reported.
Pericom intends to file restated financial statements for 2009 Q1, Q2, and
Q3 as soon as practicable to correct the errors identified to date.
Various financial information is affected by these errors and will be
corrected. Pericom will file a Form 8-K stating that the financial
information for those periods included in Forms 10-Q filed, and press
releases issued, prior to the date of this press release should not be
relied upon. Pericom's management and the audit committee of its board of
directors have discussed these matters with the company's independent
accounting firm.
Selected Fiscal 2009 Q4 Estimated Results
Due to the matters described above, Pericom has delayed reporting 2009 Q4
and 2009 year end results pending the completion of its review of these
matters.
Pericom had previously provided guidance for the fourth quarter on May 1,
2009. Revenues in the fourth fiscal quarter were expected to be in the
range of $27.0 million to $30.0 million, and, subject to the results of the
review described above, we now estimate that revenues will slightly exceed
the top end of the range.
Gross margins were expected to be in the 32.0% to 34.0% range. In the
fourth quarter we experienced a reduction in gross margins resulting from
underabsorption of overhead in prior quarters as well as pricing pressure
in competitive markets. We now estimate, subject to the review described
above, fourth quarter margins to be in the 29.5% to 30.5% range.
Fiscal 2010 Q1 Outlook
The following statements are based on current expectations and are subject
to the results of the review described above. 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 $31.5 million to $33.5 million.
-- Gross margins are expected to be in the 30% to 31% range. Margins are
influenced by the product mix of turns business and sales, if any, of
previously reserved inventory.
Forward-looking Statements
This press release contains forward-looking statements as defined under The
Securities Litigation Reform Act of 1995. Forward-looking statements in
this release include statements regarding our expectations for the
accounting review and estimated 2009 Q4 and anticipated 2010 Q1 financial
information described above.
Pericom's actual results could differ materially from what is set forth in
such forward-looking statements due to a variety of risk factors. Risks
relating to the accounting matters described above include but are not
limited to risks that we may not be able to complete our accounting review
on a timely basis, we will likely disclose material weaknesses in our
internal control over financial reporting for fiscal year 2009, and the
cost and consequences of the review, scope of accounting errors ultimately
determined, or required remediation will be more extensive than we
currently anticipate.
In addition, our business faces ongoing risks of the nature previously
described in our press releases and periodic reports filed with the SEC,
including risks of a prolonged continuation of the current economic
downturn, 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 Pericom 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
quarterly report on Form 10-Q for the quarter ended March 28, 2009, and in
particular the risk factors sections of that filing.
About Pericom
Pericom Semiconductor Corporation (Contact Information: Contact: Robert Strickland Pericom Semiconductor Tel: 408 435-0800