Pericom Semiconductor Reports Fiscal First Quarter 2015 Financial Results

We use the non-GAAP financial measures that exclude these items to make strategic decisions, forecast future results and evaluate the Company's current operating performance. We believe that the presentation of non-GAAP financial measures that exclude these items is useful to investors because we do not consider these charges either part of the day-to-day business or reflective of the core operational activities of the Company that are within the control of management or that are used to evaluate the Company's operating performance.

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Safe Harbor Statement

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 by our CEO concerning future business and revenue growth and margin improvement and the statements under the captions "Fiscal Q2 2015 Outlook", which regard the anticipated revenues, gross margin, operating expenses, other income, and effective tax rate in the second fiscal quarter of 2015. 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, 2014, and in particular, the risk factors section contained in that report.

                                                                            
                     Pericom Semiconductor Corporation                      
        Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit        
                   (In thousands, except per share data)                    
                                (unaudited)                                 
                                                                            
                                                Three Months Ended          
                                      ------------------------------------- 
                                      September 27, June 28,  September 28, 
                                           2014       2014         2013     
                                      ------------- --------  ------------- 
                                                                            
Net revenues                          $      33,259 $ 32,739  $      32,608 
                                                                            
Cost of revenues                             19,179   19,188         19,800 
                                      ------------- --------  ------------- 
                                                                            
  Gross profit                               14,080   13,551         12,808 
                                                                            
Operating expenses:                                                         
                                                                                                                                                        
    Research  and  development                                        4,588        4,782                    5,045  
                                                                                                                                                        
    Selling,  general  and  administrative                  7,300        7,257                    7,687  
                                                                                                                                                        
    Write  off  of  government  subsidy                                                                                      
      receivable                                                                          -            843                            -  
                                                                            -------------  --------    -------------  
                                                                                                                                                        
        Total  operating  expenses                                  11,888      12,882                  12,732  
                                                                            -------------  --------    -------------  
                                                                                                                                                        
Income  from  operations                                                2,192            669                          76  
                                                                                                                                                        
Interest  and  other  income,  net                                    691            742                        682  
                                                                                                                                                        
Foreign  exchange  gain  (loss)                                        583          (286)                    (196)
                                                                            -------------  --------    -------------  
                                                                                                                                                        
Income  before  income  taxes                                        3,466        1,125                        562  
                                                                                                                                                        
Income  tax  expense                                                        1,010            291                        231  
                                                                            -------------  --------    -------------  
                                                                                                                                                        
Net  income  from  consolidated                                                                                                
  companies                                                                        2,456            834                        331  
                                                                                                                                                        
Equity  in  net  income  of                                                                                                          
  unconsolidated  affiliates                                              39              50                          43  
                                                                            -------------  --------    -------------  
                                                                                                                                                        
Net  income                                                        $              2,495  $        884    $                  374  
                                                                            =============  ========    =============  
                                                                                                                                                        
Basic  income  per  share                                $                0.11  $      0.04    $                0.02  
                                                                            =============  ========    =============  
                                                                                                                                                        
Diluted  income  per  share                            $                0.11  $      0.04    $                0.02  
                                                                            =============  ========    =============  
                                                                                                                                                        
Shares  used  in  computing  basic  income                                                                              
  per  share                                                                      21,936      22,123                  22,794  
                                                                            =============  ========    =============  
                                                                                                                                                        
Shares  used  in  computing  diluted                                                                                        
  income  per  share                                                        22,262      22,338                  22,951  
                                                                            =============  ========    =============  
                                                                                                                                                        
                                                                                                                                                        
                                            Pericom  Semiconductor  Corporation                                          
                                                    Supplemental  Information                                                    
                                                              (In  thousands)                                                              
                                                                  (unaudited)                                                                
                                                                                                                                                        
                                                                                                  Three  Months  Ended                  
                                                                                ------------------------------------
                                                                                September  27,  June  28,  September  28,
                                                                                          2014              2014                2013        
                                                                                -------------  --------  -------------
                                                                                                                                                        
Share-based  compensation                                                                                                        
    Cost  of  revenues                                            $                    33  $          37  $                    36
    Research  and  development                                                218            229                      297
    Selling,  general  and  administrative                          458            329                      396
                                                                                -------------  --------  -------------
        Share-based  compensation  expense        $                  709  $        595  $                  729
                                                                                                                                                        
Amortization  of  intangible  assets                                                                                      
    Cost  of  revenues                                            $                  478  $        478  $                  488
    Research  and  development                                                    -                -                        50
    Selling,  general  and  administrative                          247            247                      247
                                                                                -------------  --------  -------------
        Amortization  of  intangible  assets      $                  725  $        725  $                  785
                                                                                                                                                        
                                                                                                                                                        
                                          Pericom  Semiconductor  Corporation                                            
                    Reconciliation  of  GAAP  Net  Income  to  Non-GAAP  Net  Income                    
                                                              (In  thousands)                                                              
                                                                (unaudited)                                                                  
                                                                                                                                                        
                                                                                              Three  Months  Ended                      
                                                                          --------------------------------------  
                                                                          September  27,    June  28,    September  28,  
                                                                                    2014                2014                  2013          
                                                                          -------------    --------    -------------  
GAAP  net  income                                            $              2,495    $        884    $                  374  
Reconciling  items:                                                                                                                    
    Share-based  compensation  expense                          709              595                        729  
    Amortization  of  intangible  assets                        725              725                        785  
    Fair  value  adjustment  to                                                                                                    
      depreciation  expense  on  acquired                                                                                  
      fixed  assets                                                                  51                51                          51  
    Restructuring  charge                                                  112                44                            -  
    Write  off  of  government  subsidy                                                                                      
      receivable                                                                        -              843                            -  
    Tax  on  intercompany  transaction                                -                  -                          15  
    Lease  restructuring  and  moving                                                                                        
      costs                                                                                  -                  -                        522  
    Tax  effect  of  adjustments                                      (377)          (321)                    (543)
                                                                          -------------    --------    -------------  
        Total  reconciling  items                                    1,220          1,937                    1,559  
                                                                          -------------    --------    -------------  
Non-GAAP  net  income                                    $              3,715    $    2,821    $              1,933  
                                                                          =============    ========    =============  
                                                                                                                                                        
                  Reconciliation  of  GAAP  Diluted  EPS  to  Non-GAAP  Diluted  EPS                  
                                                                (unaudited)                                                                  
                                                                                                                                                        
Diluted  net  income  per  share:                                                                                              
    GAAP  diluted  income  per  share            $                0.11    $      0.04    $                0.02  
    Adjustments:                                                                                                                            
    Share-based  compensation  expense                        0.03            0.03                      0.03  
    Amortization  of  intangible  assets                      0.03            0.03                      0.03  
    Fair  value  adjustment  to                                                                                                    
      depreciation  expense  on  acquired                                                                                  
      fixed  assets                                                                    -                  -                            -  
    Restructuring  charge                                                0.01                  -                            -  
    Write  off  of  government  subsidy                                                                                      
      receivable                                                                        -            0.04                            -  
    Tax  on  intercompany  transaction                                -                  -                            -  
    Lease  restructuring  and  moving                                                                                        
      costs                                                                                  -                  -                      0.02  
    Tax  effect  of  adjustments                                    (0.02)        (0.02)                  (0.02)
                                                                          -------------    --------    -------------  
            Total  adjustments                                              0.05            0.08                      0.06  
                                                                          -------------    --------    -------------  
    Non-GAAP  diluted  income  per  share    $                0.16    $      0.12    $                0.08  
                                                                          =============    ========    =============  
                                                                                                                                                        
Shares  used  in  diluted  net  income                                                                                      
  per  share  calculation:                                                                                                          
    GAAP                                                                            22,262        22,338                  22,951  
        Exclude  the  benefit  of  share-                                                                                      
          based  compensation  expense  (1)                        413              486                        390  
                                                                          -------------    --------    -------------  
    Non-GAAP                                                                    22,675        22,824                  23,341  
                                                                          =============    ========    =============  
                                                                                                                                                        
(1)  For  purposes  of  calculating  non-GAAP  diluted  net  income  per  share,  the    
  GAAP  diluted  weighted  average  sharesoutstanding  is  adjusted  to  exclude  the  
  benefits  of  unamortized  stock  compensation  costs  that  are  treated  as              
  proceedsassumed  to  be  used  to  repurchase  shares  under  the  GAAP  treasury        
  stock  method.                                                                                                                            
                                                                                                                                                        
                                                                                                                                                        
                                          Pericom  Semiconductor  Corporation                                            
                Reconciliation  of  GAAP  Gross  Profit  to  Non-GAAP  Gross  Profit                
                                                              (In  thousands)                                                              
                                                                (unaudited)                                                                  
                                                                                                                                                        
                                                                                              Three  Months  Ended                      
                                                                          --------------------------------------  
                                                                          September  27,    June  28,    September  28,  
                                                                                    2014                2014                  2013          
                                                                          -------------    --------    -------------  
GAAP  gross  profit                                        $            14,080    $  13,551    $            12,808  
    -  %  of  revenues                                                          42.3%          41.4%                    39.3%
Reconciling  items:                                                                                                                    
    Share-based  compensation                                            33                37                          36  
    Amortization  of  intangible  assets                        478              478                        488  
    Fair  value  adjustment  to                                                                                                    
      depreciation  expense  on  acquired                                                                                  
      fixed  assets                                                                  10                10                          10  
    Restructuring  charge                                                    84                  -                            -  
                                                                          -------------    --------    -------------  
        Total  reconciling  items                                        605              525                        534  
                                                                          -------------    --------    -------------  
Non-GAAP  gross  profit                                $            14,685    $  14,076    $            13,342  
                                                                          =============    ========    =============  
    -  %  of  revenues                                                          44.2%          43.0%                    40.9%
                                                                                                                                                        
                Reconciliation  of  GAAP  R&D  Expenses  to  Non-GAAP  R&D  Expenses                
                                                                (unaudited)                                                                  
                                                                                                                                                        
GAAP  research  and  development                                                                                              
  expenses                                                        $              4,588    $    4,782    $              5,045  
    -  %  of  revenues                                                          13.8%          14.6%                    15.5%
Reconciling  items:                                                                                                                    
    Share-based  compensation                                        (218)          (229)                    (297)
    Amortization  of  intangible  assets                            -                  -                        (50)
    Fair  value  adjustment  to                                                                                                    
      depreciation  expense  on  acquired                                                                                  
      fixed  assets                                                                (10)            (10)                      (10)
    Restructuring  charge                                                  (28)            (28)                          -  
                                                                          -------------    --------    -------------  
        Total  reconciling  items                                      (256)          (267)                    (357)
                                                                          -------------    --------    -------------  
Non-GAAP  research  and  development                                                                                      
  expenses                                                        $              4,332    $    4,515    $              4,688  
                                                                          =============    ========    =============  
    -  %  of  revenues                                                          13.0%          13.8%                    14.4%
                                                                                                                                                        
              Reconciliation  of  GAAP  SG&A  Expenses  to  Non-GAAP  SG&A  Expenses              
                                                                (unaudited)                                                                  
                                                                                                                                                        
GAAP  selling,  general  and                                                                                                      
  administrative  expenses                          $              7,300    $    7,257    $              7,687  
    -  %  of  revenues                                                          21.9%          22.2%                    23.6%
Reconciling  items:                                                                                                                    
    Share-based  compensation                                        (458)          (329)                    (396)
    Amortization  of  intangible  assets                      (247)          (247)                    (247)
    Fair  value  adjustment  to                                                                                                    
      depreciation  expense  on  acquired                                                                                  
      fixed  assets                                                                (31)            (31)                      (31)
    Restructuring  cost                                                          -              (16)                          -  
    Lease  restructuring  and  moving                                                                                        
      costs                                                                                  -                  -                      (522)
        Total  reconciling  items                                      (736)          (623)                (1,196)
                                                                          -------------    --------    -------------  
Non-GAAP  selling,  general  and                                                                                              
  administrative  expenses                          $              6,564    $    6,634    $              6,491  
                                                                          =============    ========    =============  
    -  %  of  revenues                                                          19.7%          20.3%                    19.9%
                                                                                                                                                        
                                                                                                                                                        
                                            Pericom  Semiconductor  Corporation                                          
                                        Condensed  Consolidated  Balance  Sheets                                      
                                                              (In  thousands)                                                              
                                                                  (unaudited)                                                                
                                                                                                                                                        
                                                                                                          As  of                                    
                                                                                                  September  27,          As  of        
                                                                                                            2014          June  28,  2014
                                                                                                                                                        
                                                                                                                                                        
        Assets                                                                                                                                    
                                                                                                                                                        
Current  assets:                                                                                                                          
                                                                                                                                                        
    Cash  and  cash  equivalents                                            $            27,587  $            33,020
    Short-term  investments                                                                96,248                86,104
    Accounts  receivable  -  trade                                                      24,863                24,036
    Inventories                                                                                      11,918                12,288
    Prepaid  expenses  and  other  current  assets                            3,935                  5,336
    Deferred  income  taxes                                                                        795                      726
                                                                                                  -------------  -------------
        Total  current  assets                                                              165,346              161,510
                                                                                                                                                        
Property,  plant  and  equipment-net                                              58,083                58,537
Investments  in  unconsolidated  affiliates                                  2,495                  2,445
Deferred  income  taxes  non-current                                                2,576                  2,460
Intangible  assets                                                                                6,285                  7,009
Other  assets                                                                                          8,062                  8,118
                                                                                                  -------------  -------------
        Total  assets                                                                  $          242,847  $          240,079
                                                                                                  =============  =============
                                                                                                                                                        
                                                                                                                                                        
        Liabilities  and  Shareholders'  Equity                                                                        
                                                                                                                                                        
Current  liabilities:                                                                                                                
                                                                                                                                                        
    Accounts  payable                                                              $              9,697  $              8,927
    Accrued  liabilities                                                                      10,120                  9,934
                                                                                                  -------------  -------------
        Total  current  liabilities                                                      19,817                18,861
                                                                                                                                                        
Industrial  development  subsidy                                                      6,133                  6,354
Deferred  tax  liabilities                                                                  5,577                  5,460
Other  long-term  liabilities                                                            1,929                  1,912
                                                                                                  -------------  -------------
        Total  liabilities                                                                      33,456                32,587
                                                                                                                                                        
Shareholders'  equity:                                                                                                              
    Common  stock  and  paid  in  capital                                          113,039              113,118
    Retained  earnings  and  other  comprehensive                                                                  
      income                                                                                              96,352                94,374
                                                                                                  -------------  -------------
        Total  shareholders'  equity                                                  209,391              207,492
                                                                                                  -------------  -------------
                                                                                                                                                        
        Total  liabilities  and  shareholders'  equity      $          242,847  $          240,079
                                                                                                  =============  =============
                                                                                                                                                        
 




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