Q1 2015 earnings announcement call live on http://investor.pmcs.com at 1:30 p.m. PT
Conference call: 1 (888) 505-4375 or 1 (719) 325-2472 outside North America; passcode 6526275#
Replay available shortly after end of conference call through May 27, 2015
SUNNYVALE, Calif. — (BUSINESS WIRE) — April 27, 2015 — PMC-Sierra, Inc. (PMC®) (Nasdaq: PMCS), the semiconductor and software solutions innovator transforming networks that connect, move and store big data, today reported results for the first quarter ended March 28, 2015.
Net revenues in the first quarter of 2015 totaled $133.1 million, an increase of 5 percent compared to $126.5 million in the first quarter of 2014, and a decrease of 3 percent from $136.9 million in the fourth quarter of 2014. Storage product revenues in the first quarter of 2015 totaled $96.5 million, an increase of 11 percent from $87.0 million in the first quarter of 2014.
GAAP net income in the first quarter of 2015 totaled $4.7 million or $0.02 per diluted share, compared to GAAP net loss in the first quarter of 2014 of $4.2 million or $0.02 per share, and GAAP net income in the fourth quarter of 2014 of $2.3 million or $0.01 per diluted share.
Non-GAAP net income in the first quarter of 2015 totaled $20.9 million or $0.10 per diluted share, compared to non-GAAP net income in the first quarter of 2014 of $16.0 million or $0.08 per diluted share, and to non-GAAP net income in the fourth quarter of 2014 of $22.7 million or $0.11 per diluted share.
“We experienced strong year-over-year growth in storage at eleven percent, representing a solid start for the year,” said Greg Lang, PMC president and chief executive officer. “And, with our four key drivers firmly in place, we remain positive about top and bottom line growth prospects for the balance of 2015.”
For a full reconciliation of each non-GAAP item used herein to the most directly comparable GAAP financial measure, please refer to the schedule included with this release. The Company believes the additional non-GAAP measures are useful to investors for the purpose of financial analysis. Management uses the non-GAAP measures internally to evaluate its in-period operating performance before gains, losses and other charges that are considered by management to be outside of the Company’s core operating results. In addition, the measures are used to plan for the Company’s future periods. However, non-GAAP measures are neither stated in accordance with, nor are they a substitute for, GAAP measures.
FIRST QUARTER HIGHLIGHTS
The Company announced the following in the first quarter of 2015:
- On Mar. 24, PMC announced an OTN-based solution for fronthaul networking in Centralized Baseband RAN (C-RAN) architectures used for LTE and LTE-Advanced systems. Until now, C-RAN deployments have been stalled by complex fronthaul latency and timing requirements. PMC’s solution meets the required latency and beats jitter specifications with up to 75 percent margin, enabling OTN to be used to implement carrier-grade fronthaul.
- On Mar. 18, PMC introduced its latest DIGI OTN processor, enabling the transition to 400G line cards in OTN switched metro networks. The new DIGI-G4 is the industry’s densest single-chip 4x100G OTN processor with 50 percent less power per port than the previous generation. It addresses the needs of an SDN-ready, encrypted transport infrastructure. DIGI-G4 delivers the capacity, security and flexibility required for 400G line cards in packet optical transport platforms (P-OTP), ROADM/WDM and optimized data center interconnect platforms.
- On Mar. 18, PMC also received the Lightwave Innovation Award for the DIGI-G4 OTN processor, earning an impressive score of 4.5 out of 5, one of the highest scores awarded by the judges. The 2015 Lightwave Innovation Awards judges comprised a panel of industry experts, including service providers, technology developers, industry analysts and journalists.
- On Feb. 9, PMC announced that its board of directors authorized a new share repurchase program for up to $75 million of its common stock. This new program increases the total remaining repurchase authorization to $102 million, including the $27 million that remains available for repurchases under the $275 million 2012 share repurchase authorization. During Q1 2015, PMC repurchased 6.1 million shares of common stock. Since PMC began its first share repurchase program in 2011, PMC has repurchased and retired 60.4 million shares at a total cost of $385.2 million.