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San Jose, CA, 2007-08-07 - Pericom Semiconductor Corporation (Nasdaq: PSEM - News), a worldwide supplier of high-speed integrated circuits and frequency control products, today announced results for its fourth quarter and full fiscal year ended June 30, 2007.
Net revenues for the fourth quarter were $31.5 million, up 4.4 percent from the $30.2 million reported in the third quarter, and up 7.6 percent from the $29.3 million reported in the comparable period last year. Under generally accepted accounting principles (GAAP), gross margin was 36.5 percent, up from 33.9 percent last quarter, and 35.0 percent in the comparable period last year.
Net income under GAAP in the quarter was a strong $2.1 million, or $0.08 per diluted share, compared with net income of $2.6 million, or $0.10 per diluted share in the third quarter and net income of $2.1 million, or $0.08 per diluted share, in the same period a year ago. GAAP basis net income for the fourth quarter grew despite an increase in stock-based compensation expense to $601,000.
Cash flow from operations in the quarter grew 133 percent, from $2.7 million in the fourth quarter of 2006, to $6.3 million in the fourth quarter of 2007.
Net revenues for the year ended June 30, 2007 were $123.4 million, up 16.5 percent from $105.9 million in fiscal 2006. GAAP basis net income for the year ended June 30, 2007 was $8.6 million, or $0.32 per diluted share, compared with $6.0 million, or $0.22 per diluted share, in the prior year comparable period, an increase of 44.3%.
On a non-GAAP basis, which excludes expenses for stock-based compensation, fourth quarter gross margin was 36.6 percent, versus 34.0 percent in the prior quarter and 35.0 percent in the same period a year ago. For the year ended June 30, 2007, non-GAAP gross margin was 34.8 percent, compared with 34.6 percent in the comparable prior year period.
Non-GAAP net income was $2.6 million, or $0.10 per diluted share, in the fourth quarter, compared with $3.0 million, or $0.11 per diluted share in the third quarter and $2.4 million, or $0.09 per diluted share, in the same period a year ago. For the year ended June 30, 2007, non-GAAP net income was $10.2 million, or $0.38 per diluted share, compared with $6.9 million, or $0.26 per diluted share, in the prior year, an increase of 47.7%.
"We are pleased to report sequential increase in revenue driven by strong demand for our products in digital video and mobile terminal applications. This contributed to a sequential 260 basis point improvement in gross margins, as measured on a GAAP basis, primarily due to a more favorable mix of higher gross margin IC products," said Alex Hui, president and chief executive officer.
"The Company performed well in fiscal year 2007 -- increasing revenues 16.5 percent, and growing net income 44.3 percent over fiscal 2006. We are reaping the benefits of our investments in developing solutions to enable high speed serial connectivity in computer, communication and consumer markets. Going forward, we will continue to expand the breath of solution and drive design wins to sustain our growth momentum."
"Orders placed with the Company increased during the fourth quarter and our book to bill ratio was greater than one. We expect another quarter of sequential growth driven by strength in the consumer and computer segments of our business and greater demand for our new products. Revenue shipments into Digital Video, Mobile Terminal and PCI-Express applications will continue to grow substantially in the September quarter."
Q4 NEW PRODUCTS
Pericom was the first in the industry to announce production availability of Gen2 PCI Express signal-switches and a high-performance, zero-delay Gen2 clock buffer family. These key components enable the design of ultra high speed 5.0 Gbps Gen2 PCI-Express serial connectivity systems. Target applications include server, video and gaming, storage, networking and telecommunications.
With the release of four new analog video switches, three low phase noise VCXOs with integrated PLLs and two high speed USB signal switches, Pericom further expanded its solutions supporting the high performance consumer market segment. Target applications include Digital TV, set top box, cell phone, MP3/MP4 player and PDA.
Fiscal Q1 2008 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 $33.5 million to $34.5 million. This outlook is highly dependent
on the strength of turns orders, an environment for which visibility
remains limited.
- Gross margins are expected to be in the 35 to 37 percent range.
Margins are influenced by the product mix of turns business and
sales, if any, of previously reserved inventory.
- Operating expenses are expected to be in the range of $9.7 to
$9.9 million, which include stock-based compensation expense of
approximately $0.6 million.
- Other income is expected to be approximately $1.4 million, consisting
primarily of interest income.
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 (800) 361-0912 and reference "Pericom".
A taped replay of the conference call will be made available for two weeks. To listen to the replay, dial (888) 203-1112 and reference conference number 1077043. 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/investor. 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 90 days.
About Pericom
Pericom Semiconductor Corporation (Nasdaq: PSEM - News) enables serial connectivity with the industry's most complete solutions for the computing, communications and consumer market segments. Pericom's analog, digital and mixed-signal integrated circuits, along with its SaRonix and eCERA frequency control products are essential in the timing, switching, bridging and conditioning of high-speed signals required by today's ever-increasing speed and bandwidth demanding applications. Company headquarters is in San Jose, Calif., with design centers and technical sales and support offices globally. http://www.pericom.com
About Our Non-GAAP Operating Results and Adjustments
To supplement our consolidated financial results prepared under generally accepted accounting principles ("GAAP"), we use a non-GAAP measure of operating results that is GAAP net income (loss) adjusted to exclude stock- based compensation expense. Our non-GAAP net income (loss) gives an indication of our baseline performance before stock-based compensation expense that is considered by management to be outside of our core operating results. In addition, our non-GAAP net income (loss) is one of the primary indicators management uses as a basis for planning and forecasting future periods. This measure is not in accordance with, or an alternative for, GAAP and may be materially different from non-GAAP measures used by other companies. We compute non-GAAP net income (loss) by adjusting GAAP net income (loss) for the impact of stock-based compensation expense. The presentation of this additional information should not be considered in isolation or as a substitute for net income (loss) prepared in accordance with GAAP.
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 'Fiscal Q1 2008 Outlook' and statements regarding sustaining our growth momentum. 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 for the year ended July 1, 2006, our quarterly reports on Form 10-Q for the quarters ended September 30, 2006, December 30, 2006 and March 31, 2007 and, in particular, the risk factors sections of those filings.
See attached tables
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