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San Jose, CA, 2005-11-07 - Pericom Semiconductor Corporation [NASDAQ National Market:
PSEM] today announced results for its fiscal 2006 first quarter ended October 1, 2005. Results for the previous quarter ended July 2, 2005 are based
upon 14 weeks versus a normal 13 week quarter which is the basis for this quarters results. Results also include eCERA ComTek Corporation from the
September 7, 2005 acquisition date through October 1, 2005.
Net revenues for the first quarter were $22,473,000, up 6.4% from $21,121,000
in the preceding quarter and up 13.6% from $19,786,000 in the comparable period last year. GAAP net income for the quarter was $625,000, or $0.02
per share (diluted), compared to GAAP net income of $1,173,000, or $0.04 per share (diluted), in the preceding quarter and versus GAAP net income of
$29,000, or $0.00 per share (diluted), in the comparable period a year ago. During the quarter ended October 1, 2005 the Company implemented
Financial Accounting Standard 123R (FAS123R), "Share-based Payment", which requires companies to estimate the cost of all forms of stock based
compensation, including stock options, restricted stock and employee stock purchase plans, and recording of this estimated compensation in the income
statement. Implementation of FAS123R is required for fiscal years commencing after June 15, 2005, therefore the Company is one of the first to
implement FAS123R. These expenses will be normal going forward. Since this is the first quarter including these expenses, for information purposes
following are the amounts included in our GAAP and non-GAAP results for the quarter ended October 1, 2005:
| Cost
of Sales | $24,000 |
| Research and development | $121,000 |
| Sales, general and
administrative | $133,000 |
| Total stock-based
compensation | $278,000 |
Our GAAP financial results include unusual charges or events which are
explained in the reconciliation of non-GAAP and GAAP financial results that appears in the financial statements portion of this release. Non-GAAP results
are not meant as a substitute for GAAP, but are included solely for informational and comparative purposes. Pericom management believes non-GAAP
financial information is useful to investors because it illuminates underlying operational trends by excluding significant unusual transactions. Our criteria
for determining non-GAAP results may differ from other companies' methods, and should not be regarded as a replacement for corresponding GAAP
measures.
Non-GAAP net income for the quarter ended October 1, 2005, including the FAS123R expenses noted above, was $768,000, or
$0.03 per share (diluted), compared to $1,173,000, or $0.04 per share (diluted), in the preceding quarter and non-GAAP net income of $29,000, or $0.00
per share (diluted), in the comparable period a year ago which does not include any expense related to FAS123R.
Alex Hui, President and
Chief Executive Officer of Pericom said, "In our first quarter we delivered sequential revenue growth on our core IC and FCP lines of 4.3% (normalizing
the preceding quarter to 13 weeks), and achieved our sixth consecutive quarter of non-GAAP profitability. Additionally, our acquisition of eCERA ComTek
on September 7, 2005 provides a growing and accretive subsidiary that further strengthens and broadens our FCP line with vertical integration, captive
low-cost manufacturing and local presence in the Taiwanese and Asian markets. We are also pleased with the increasing acceptance of our PCI-Express
products for IT applications and our HDMI switching solution in digital video applications. We expect these products will contribute significant revenue over
time."
NEW PRODUCTS
The Company introduced 11 new Clock/Timing, Analog Switch and Interface products that
focus on Computing, Networking, Digital Video, and Mobile applications.
PI6C3420 and PI6C3421 are Spread-Spectrum Clock Generators for
notebook external graphics applications.
PI6C6612 is an Audio Clock Generator targeting the growing Digital TV and Set-top Box markets.
PI74SSTUA32866 is our next generation 25 bit 1:1 or 14 bit 1:2 DDR2 400/533/667Mb/s configurable Registered Buffer with parity for
Registered DIMM memory module applications in servers, storage and networking.
PI3L301D-A and PI3L500-A are 8-Channel, 2:1 Gigabit
Ethernet LAN Mux/DeMux Switches with extended ESD protection for high-speed, low voltage LAN applications.
PI3HDMI412FT,
PI3HDMI412-B, and PI3HDMI413 are high-speed HDMI Mux/DeMux, application specific switches used in Set-top box, Monitors, and DTV applications.
PI2LVD412 and PI2LVD512 are 4/5 Differential Channel, 2:1 Video Mux/DeMux, operating at 1.2 GHz based on LVDS signals. These switches
are used for notebook graphics and many other video applications.
DECEMBER 2005 QUARTER OUTLOOK
The following
statements are based on current expectations. These statements are forward looking, and actual results may differ materially.
- Including
the full-quarter addition of eCERA, we expect a sequential increase in revenues of 18-20%. For the pre-eCERA IC and FCP business we are still reliant
on a high level of turns business and expect revenues to be flat, plus or minus 2%.
- With the addition of eCERA, we expect consolidated non-GAAP
gross margin to be approximately 33%, plus or minus 2%. GAAP margin will be slightly lower due to amortization of the eCERA inventory write-up to Fair
Market Value required by acquisition accounting rules.
- Operating expenses, including eCERA and FAS123R expenses, are expected to increase
to approximately $8.9 million, plus or minus $200,000.
- Other income, net, is expected to be approximately $1.0 million.
- Income from
unconsolidated subsidiaries is expected to be zero to $200,000.
- Current expectation is that our tax rate will approximate
33%.
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 first 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 (domestic) or (706) 643-0097
(international) and referencing conference number 2220007. 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 (800) 642-1687 (domestic) or (706) 645-9291 (international) and the access code is
2220007. 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 December 7, 2005 (Webcast requires Windows MediaPlayer).
Pericom Semiconductor
Corporation (NASDAQ: PSEM) 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
and eCERA 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 'December 2005 Quarter Outlook' and
statements that our acquisition of eCERA ComTek on September 7, 2005 provides a growing and accretive subsidiary that further strengthens and
broadens our FCP line with vertical integration, captive low-cost manufacturing and local presence in the Taiwanese and Asian markets; and that our
PCI-Express products for IT applications and our HDMI switching solution in digital video applications will continue to enjoy increasing acceptance. 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/A for the year ended July 2, 2005 and, in particular, the risk factors sections of that filing.
See Attached Tables |
