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San Jose, CA, 2006-02-06 - Pericom Semiconductor Corporation [NASDAQ National
Market: PSEM] today announced results
for its fiscal 2006 second quarter ended December 31, 2005. Results include the acquired
operations of
eCERA ComTek Corporation eCERA since September 7, 2005.
Net revenues for the second quarter were $26,270,000 up 17% from
$22,473,000 in the preceding
quarter and are up 37% from $19,217,000 in the comparable period last year. GAAP net income
for the quarter was
$1,412,000, or $0.05 per share (diluted), compared to GAAP net income
of $625,000, or $0.02 per share (diluted), in the preceding quarter and
versus a GAAP net
loss of $375,000, or ($0.01) per share, in the comparable period a year ago. Net revenues
for the six months ended December
31, 2005 were $48,743,000, up 25% from $39,003,000 a year
ago. GAAP net income for the six month period ending December 31, 2005 was
$2,037,000, or
$0.08 per share (diluted), as compared with a GAAP net loss of $346,000, or ($0.01) per share,
in the prior year comparable
period. In accordance with Financial Accounting Standard No. 123R
(FAS123R), Share-based Payment, the Company continued 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. Since these expenses will
be normal going forward, and this is our second quarter including these
expenses, for information
purposes following are the amounts included in our GAAP and non-GAAP results for the three and
six months ended
December 31, 2005:
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Three
Months
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Six Months
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Cost of Sales
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$19,658
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$43,658
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Research and development
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$104,826
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$225,826
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Sales, general and
administrative
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$169,070
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$302,070
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Total stock-based compensation
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$293,554
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$571,554
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Our GAAP financial results include non-recurring charges or events which are explained in the
reconciliation of pro forma and
GAAP financial results that appear in the financial statements
portion of this release. Pro forma results are not meant as a substitute for GAAP, but are
included
solely for informational and comparative purposes. Pericom management believes pro forma financial
information is useful to investors
because it illuminates underlying operational trends by excluding
significant non-recurring or otherwise unusual transactions. Our criteria for
determining pro forma
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 December 31, 2005, including the FAS123R expenses noted
above, was
$1,507,000, or $0.06 per share (diluted), compared to $768,000, or $0.03 per share (diluted),
in the preceding quarter and non-GAAP net income of
$129,000, or $0.00 per share (diluted), in the
comparable period a year ago which does not include any expense related to FAS123R. Pro forma net
income for the six month period ending December 31, 2005 was $2,275,000, or $0.08 per share (diluted),
as compared with a pro forma net
income of $158,000, or $0.01 per share, in the prior year comparable
period which also does not include any expense related to
FAS123R.
Alex Hui, President and Chief Executive Officer of Pericom said "We are very pleased with the progress
we made this quarter in
revenue growth, margin expansion and profitability. We achieved 17% sequential
revenue growth, having realized the benefit of having a full quarter of
eCERA operations in our financial
results. Our acquisition of eCERA has proven so far to be a growing and accretive subsidiary contributing
significantly to Pericom's financial success. With increased gross profit and control of expenses, we
realized an operating profit of $801,000 (pro
forma of $961,000) for the quarter, an improvement of
$1,285,000 (pro forma of $1,231,000) quarter to quarter We also significantly improved our
gross margin
from 35% last quarter to 37% this quarter. Our margin expansion is largely due to the growing success
of our focus product lines and
the higher margins they achieve".
The Company introduced several new focus products targeting our key markets segments that include
Consumer, Computer, and Networking.
SiliconSwitch
Pericom expanded its portfolio of ASSP analog switch family
with the release of three new HDMI switches targeting DTV and digital display applications. Pericom is first in the industry to introduce a TMDS compliant
signal switch.
We also delivered our SOTiny 1.3 x 1.6 dual SPDT analog switch for mobile handsets with the smallest plastic package in the
market.
SiliconConnect
We began sampling our PI7C9X110 PCI to PCIe Bridge product to several customers. The device
is a PCI Express to PCI 32-bit/66MHz Reversible Bridge that enables legacy systems to work in next generation PCI Express based
systems.
SiliconClock
We sampled 3 new clock products this quarter. PI6C22392-3 & PI6C22392-4 are Multimedia and
System Peripheral Clock Generators for Digital Set-top and Digital TV applications. PI6C21200A is a new low skew, low jitter 400 MHz 1:12 PCI-Express
Zero Delay Clock Buffer for FB-DIMM and PCI-Express applications in servers.
Frequency Control
We introduced three
crystal resonator product families representing a 50% and 75% size-reduction when compared to the company's mainstream 7x5 mm package. The new
NKS3 (3.2 x 2.5mm) and NKS5 & NES5 (5 x 3.2mm) crystal product families are tailored for space-constrained portable consumer electronic as well as
densely populated computing/networking applications. These new products are built at the companys recently-acquired eCERA factory in
Taiwan.
MARCH 2006 QUARTER OUTLOOK
The following statements are based on current expectations. These statements
are forward looking, and actual results may differ materially.
- Revenues are expected to increase 2-6%.
- Gross margin of
36% plus or minus 2%.
- Operating expenses, including eCERA and FAS123R expenses, are expected to increase to approximately $9.1 million,
plus or minus $200,000.
- Other income, net, is expected to be approximately $0.8 million.
- Income from investees is expected to be zero to
$300,000.
- Current expectation is that our tax rate will approximate 28% to 29%.
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
5039290. 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 5039290. 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). |
