Pericom's revenue for the second fiscal quarter of 2009 is now expected to be between $29.5 and $30.5 million, compared to the previous range of $36.0 and $40.0 million. Gross margin outlook remains unchanged at 35% to 36%. In response to the revised revenue outlook, the Company has adjusted its guidance on expenses. Operating expenses are now expected to be between $10.0 and $10.4 million, which includes stock-based compensation expenses of approximately $0.9 million, and is down from the previous range of $10.6 and $11.0 million. The resulting decline in expenses can be primarily attributed to decreases in discretionary spending and salary expenses reduction.
"Against the backdrop of deteriorating end-market demand, we are taking the necessary measures to reduce expenses by implementing a lean cost structure and pulling back on discretionary expenses," said Alex Hui, president and CEO of Pericom. "As we navigate the current environment, we believe our strong balance sheet and cash flow will help us weather the storm. Enabling serial connectivity across a diverse set of customers remains our primary focus, one which we believe will position us well as end-markets eventually stabilize."
Pericom will provide additional financial and operating details for the fiscal second quarter of 2009 during its regularly-scheduled quarterly earnings announcement on Thursday, February 5, 2009. Also at that time, the Company will provide an outlook for the March quarter.
Pericom Semiconductor Corporation (NASDAQ: PSEM) 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-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
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 Pericom being positioned to resume strong growth and the statements under the captions 'Fiscal Q2 Outlook', which regard the anticipated revenues, gross margin, operating expenses, other income and tax rate in the first fiscal quarter, 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, 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 June 28, 2008 and in particular the risk factors sections of that filing.
Web site: http://www.pericom.com/