-- Net revenues improved 9% sequentially and 17% year-over-year to $35.8 million. -- Gross profits increased $1.5 million sequentially and $2.1 million year-over-year. -- Gross margin of 33.6% improved 166 basis points on a sequential basis and 126 basis points year-over-year. -- Net income increased 86% sequentially and 120% year-over-year to $2.5 million. -- Total shares repurchased during the period were 102,551 shares for $1,056,399.Second Quarter 2010 Operating Results Net revenues for the second quarter were $35.8 million, an increase of 9% from the $33.0 million reported in the first quarter, and up 17% from the $30.7 million reported in the comparable period last year. Gross margin was 33.6%, up from 32.0% last quarter, and up from 32.4% in the comparable period last year. Net revenues for the six-month period ending December 26, 2009 were $68.8 million, down 8% from $74.5 million in the prior year comparable period. Gross margin in the six-month period ending December 26, 2009 was 32.8%, down from 34.8% in the comparable period last year. Operating expenses in the quarter were $10.4 million, down from $10.9 million in the previous quarter and up from $10.0 million in the comparable period last year. Operating expenses in the six-month period ending December 26, 2009 were $21.3 million, unchanged from the comparable period last year. Share-based compensation expense in the quarter was $933,000, up from $930,000 in the previous quarter and up from $904,000 in the comparable period last year. Stock based compensation expense for the six-month period ended December 26, 2009 was $1,863,000, up from $1,699,000 in the comparable prior year period. Net income in the quarter was $2.5 million, or $0.10 per diluted share, compared with net income of $1.3 million, or $0.05 per diluted share in the first quarter, and net income of $1.1 million, or $0.04 per diluted share in the comparable period last year. Net income in the six-month period ending December 26, 2009 was $3.8 million, or $0.15 per diluted share, down from $4.8 million, or $0.19 per diluted share in the comparable prior year period. "We are pleased to report a strong sequential revenue increase of 9%, driven by a pickup in demand from all key market segments that we serve," said Alex Hui, president and CEO of Pericom. "We achieved a sequential improvement in gross margin and a reduction in operating overhead, giving us better operating results. We will continue to drive improvements in these areas going forward." "We are happy to see the deployment of our serial connectivity and timing solutions beyond the digital video and PC markets that we served in recent years. We initiated the volume shipment of PCIe products into embedded applications such as multi-function printers and wireless routers. We also scored multiple design wins with our signal integrity solution at key networking and server OEMs. With new versions of serial protocols operating at higher data rates, we expect to see an increasing need for our products. With its broad connectivity and timing solutions, Pericom is well positioned to support our key customers in the next phase of growth. We look forward to resuming our revenue growth and delivering better operating results in 2010." New Products In the December quarter, we continued to expand our serial connectivity solution with the introduction of 9 new products that work across the Signal Integrity, Timing and Connectivity product areas:
-- Expanding its solutions for high speed serial protocol signal integrity, Pericom introduced 2 new ReDriver™ products addressing high speed serial SATA (Serial ATA) and DisplayPort protocols. These products address volume computing and ultra-mobility market segments. -- Adding to high speed Connectivity solutions, Pericom introduced 3 new switching and connectivity products targeted across PCIe Gen2, HDMI, and USB 2.0 protocols. The USB 2.0 product integrates industry leading features for ultra-mobility (cell phone) platforms. Other target segments include volume computing. -- Expanding its timing solutions for next generation platforms, Pericom introduced 4 new products in the past quarter -- 2 advanced crystal oscillators (XO) and 2 clock generator/buffers -- all targeting next generation networking and ultra-mobility market segments.Share Repurchase Update On April 29, 2008, our Board of Directors authorized the repurchase of an additional $30 million of our common stock. Pursuant to the 2008 authority, the Company repurchased 102,551 shares in the three months ended December 26, 2009 for an aggregate cost of $1,056,399 and an average per share purchase price of $10.30. The remaining balance of potential share repurchases under the 2008 authority is approximately $25.4 million. Fiscal Q3 Outlook The following statements are based on current expectations. These statements are forward looking, and actual results may differ materially.
-- Revenues in the third fiscal quarter are expected to be in the range of $34.0 million to $36.0 million. -- Gross margins are expected to be in the 33% to 35% range. -- Operating expenses are expected to be in the range of $9.8 to $10.4 million, which include stock-based compensation expense of approximately $1.0 million. -- Other income is expected to be approximately $1.1 million. -- Net income from unconsolidated affiliates PTI and JCP is expected to be approximately $0.4 million. -- The effective tax rate is expected to be approximately 33%.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 (888) 278-8459 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. A taped replay of the conference call will be made available for five business days. To listen to the replay, dial (888) 203-1112 and reference conference number 5436348. 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. About Pericom Pericom Semiconductor Corporation (
Pericom Semiconductor Corporation Condensed Consolidated Balance Sheets (In thousands) (unaudited) As of As of Dec 26, 2009 Jun 27, 2009 --------------- --------------- Assets Current Assets: Cash & cash equivalents $ 31,547 $ 37,321 Restricted cash 3,141 3,200 Short-term investments 74,075 75,471 Accounts receivable - trade 22,068 22,875 Inventories 18,994 16,340 Prepaid expenses and other current assets 3,769 3,738 Deferred income taxes 2,700 2,433 --------------- --------------- Total current assets 156,294 161,378 Property, plant and equipment-net 49,372 47,238 Investments in unconsolidated affiliates 11,903 10,826 Deferred income taxes non current 3,710 4,657 Long-term investments in marketable securities 20,439 11,780 Goodwill 1,681 1,673 Intangible assets 1,617 1,764 Other assets 7,159 6,742 --------------- --------------- Total assets $ 252,175 $ 246,058 =============== =============== Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 12,359 $ 10,824 Accrued liabilities 13,589 15,118 Current portion of long-term debt 122 60 --------------- --------------- Total current liabilities 26,070 26,002 Long-term debt 1,582 1,610 Industrial development subsidy 4,198 3,718 Other long-term liabilities 1,287 1,287 --------------- --------------- Total liabilities 33,137 32,617 Shareholders' equity: Common stock and paid in capital 135,013 133,162 Retained earnings and other comprehensive income 84,025 79,046 --------------- --------------- Total Pericom shareholders' equity 219,038 212,208 Noncontrolling interests in consolidated subsidiaries - 1,233 --------------- --------------- Total equity 219,038 213,441 --------------- --------------- Total liabilities and equity $ 252,175 $ 246,058 =============== =============== Pericom Semiconductor Corporation Condensed Consolidated Statements of Operations (In thousands, except per share data) (unaudited) Three Months Ended Six Months Ended ---------------------------- ------------------ Dec 26 Sep 26 Dec 27 Dec 26 Dec 27 2009 2009 2008 2009 2008 -------- -------- -------- -------- -------- Net revenues $ 35,805 $ 32,952 $ 30,732 $ 68,757 $ 74,530 Cost of revenues 23,762 22,416 20,785 46,178 48,590 -------- -------- -------- -------- -------- Gross profit 12,043 10,536 9,947 22,579 25,940 Operating expenses: Research and development 4,336 4,046 4,363 8,382 8,584 Selling, general and administrative 6,035 6,828 5,453 12,863 12,354 Restructuring charge - - 217 - 217 -------- -------- -------- -------- -------- Total operating expenses 10,371 10,874 10,033 21,245 21,155 -------- -------- -------- -------- -------- Income from operations 1,672 (338) (86) 1,334 4,785 Interest and other income 1,288 1,643 1,264 2,931 2,370 Other than temporary decline in value of investment - - - - (458) -------- -------- -------- -------- -------- Income before income taxes 2,960 1,305 1,178 4,265 6,697 Income tax expense 1,002 475 (46) 1,477 1,884 -------- -------- -------- -------- -------- Income from consolidated companies 1,958 830 1,224 2,788 4,813 Equity in net income (loss) of unconsolidated affiliates 536 527 (71) 1,063 46 -------- -------- -------- -------- -------- Net income 2,494 1,357 1,153 3,851 4,859 Net income attributable to noncontrolling interests (6) (22) (23) (28) (68) -------- -------- -------- -------- -------- Net income attributable to Pericom shareholders $ 2,488 $ 1,335 $ 1,130 $ 3,823 $ 4,791 ======== ======== ======== ======== ======== Basic income per share to Pericom shareholders $ 0.10 $ 0.05 $ 0.04 $ 0.15 $ 0.19 ======== ======== ======== ======== ======== Diluted income per share to Pericom shareholders $ 0.10 $ 0.05 $ 0.04 $ 0.15 $ 0.19 ======== ======== ======== ======== ======== Shares used in computing basic income per share 25,543 25,509 25,418 25,526 25,549 ======== ======== ======== ======== ======== Shares used in computing diluted income per share 25,911 25,678 25,496 25,795 25,868 ======== ======== ======== ======== ======== Pericom Semiconductor Corporation Share-Based Compensation (In thousands) (unaudited) Three Months Ended -------------------------------------- Dec 26 Jun 27 Dec 27 2009 2009 2008 ------------ ------------ ------------ Manufacturing $ 65 $ 67 $ 63 Research & development 342 354 352 Selling, general & administrative 526 467 489 ------------ ------------ ------------ $ 933 $ 888 $ 904 ============ ============ ============
Contact Information: Contact: Robert Strickland Pericom Semiconductor Tel: 408 435-0800