Q3 2014 earnings announcement call live on http://investor.pmcs.com at 1:30 p.m. PT
Conference call: 1 (888) 430-8705 or 1 (719) 325-2362 outside North America; passcode 8686778
Replay available shortly after end of conference call through November 30, 2014
SUNNYVALE, Calif. — (BUSINESS WIRE) — October 27, 2014 — 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 third quarter ended September 27, 2014.
Net revenues in the third quarter of 2014 totaled $135.5 million, an increase of 7 percent from $126.8 million in the second quarter of 2014 and an increase of 6 percent, compared to $128.4 million in the third quarter of 2013.
GAAP net income in the third quarter of 2014 totaled $5.5 million or $0.03 per diluted share, compared to a GAAP net loss in the second quarter of 2014 of $3.5 million or a $0.02 loss per share.
Non-GAAP net income in the third quarter of 2014 totaled $22.5 million or $0.11 per diluted share, compared to non-GAAP net income of $18.3 million or $0.09 per diluted share in the second quarter of 2014.
“Our Storage business performed exceedingly well this past quarter with double-digit growth across all of its product lines,” said PMC president and chief executive officer, Greg Lang. “PMC remains well-positioned for continued growth into FY2015, as we expect to see increasing demand for our 12Gb/s SAS I/O controllers and expanders, advanced DIGI OTN processors, Flashtec™ NVMe controllers and our new RF Remote Radio Head products.”
Net income on a non-GAAP basis in the third quarter of 2014 excludes the following items: (i) $9.9 million amortization of purchased intangible assets; (ii) $5.2 million stock-based compensation expense, (iii) $1.0 million of acquisition-related costs and other adjustments as described in the accompanying GAAP to non-GAAP reconciliation table.
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.
THIRD QUARTER 2014 HIGHLIGHTS
The Company made the following third quarter announcements:
- On Sept. 17, PMC announced it was first to ship 16-port 12Gb/s SAS and 16-port 6Gb/s SATA I/O controller solutions. PMC’s data center I/O products enable OEMs and ODMs to design cost-effective customized server hardware for hyperscale deployments, such as Open Compute, Windows Cloud Servers, OpenStack and Project Scorpio. The devices have the industry’s highest port density, lowest power and are capable of more than 1,000,000 I/Os per second (IOPS) to support the most demanding cloud software applications.
- On Sept. 16, Heng Liao, fellow in PMC’s Chief Strategy and Technology Office, presented “Storage Optimization for the Hyperscale Data Center” at the Huawei Cloud Congress.
- On Sept. 10, PMC announced it received Huawei’s Supplier Quality Award, which recognizes PMC’s product quality, technical support and product delivery through a score card system to evaluate supplier performance on all quality assurance-related procedures. PMC consistently earned an “A” rating on all items delivered in 2013.
- On Sept. 4, PMC announced that the Company executed an agreement with HP to license core HP Smart Array software, firmware and management technology. PMC will leverage this technology to provide more system value to new and existing server storage and data center customers. This transaction also positions PMC as the supplier of key storage solution components across HP ProLiant Gen9 and beyond.
- On Aug. 26, PMC introduced the industry’s first 12Gb/s SAS expander card to enable density-optimized servers, the fastest growing segment of the worldwide server market according to IDC. The Adaptec® 12Gb/s SAS expander card enables flexible, high-density server architectures that can expand as data center storage needs grow. It provides 36 ports in a PCI Express® (PCIe®) low-profile form factor.
- On Aug. 12, PMC announced it received the prestigious Excellent Partner Award from Hitachi, Ltd. The award recognizes the superior product technology, service and support that PMC provides to Hitachi.
- On Aug. 5, PMC established a new ultra-fast storage class memory tier to accelerate critical applications in scale-out storage and all-flash arrays. The PMC Flashtec™ NVRAM Drives combine the speed and endurance of DRAM with the persistency of NAND flash to deliver ten times higher performance than the fastest Solid State Drive (SSD), at more than 10 million IOPS, with sub-microsecond latency. Leveraging PCIe® 3.0, the Flashtec NVRAM Drives connect directly to the host to optimize CPU utilization and maximize overall system performance.
- On Aug. 5, Derek Dicker, vice president of PMC’s NVM Solutions Group, presented a keynote, “Software Defined Flash Solutions Herald an Era of Choice” at Flash Memory Summit. PMC storage experts also presented on the latest trends in PCIe®, NVM Express (NVMe) and error correction that are shaping next-generation SSDs in forum sessions during the conference.
- On July 29, PMC announced the Company was recognized as an honoree in the 2013 Total Cost of Ownership (TCOO™) Supplier Award program from Celestica. Celestica’s awards program recognizes suppliers that support its TCOO strategy and demonstrate excellence in quality, delivery, technology, service, pricing and flexibility.
- On July 15, PMC joined AT&T, Ciena and Verizon on a panel at the Lightwave Optical Summit in Austin, Texas, to discuss the state of 100G OTN networking and deployment readiness, and what is beyond 100G. The discussion topics included the latest developments in equipment, optics and OTN processing semiconductors, and software-defined networking.