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San Jose, CA, 2009-08-05 - Pericom Semiconductor Corporation (NASDAQ:
PSEM), a worldwide supplier of high-speed integrated circuits and frequency
control products, today announced that it will delay its fourth fiscal
quarter and full year earnings release and investor conference, which
typically occurs in early August of each year.
Accounting Review
Pericom is undertaking a review of accounting matters relating to the
first three fiscal quarters of fiscal 2009. Pericom cannot state
at this time when the full review will be completed or when fiscal 2009
results will be announced, and intends to provide appropriate updates
on these matters as soon as practicable.
To date, Pericom has identified two errors in the course of this review,
but continues to examine other accounting issues that may or may not require further accounting adjustments. These two errors are:
- 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. |
