Net revenues in the second quarter were $30.8 million, flat from the $30.8 million reported in the first quarter and up 17.4 percent from the $26.3 million reported in the comparable period last year. Net income in the quarter was $2.3 million, or $0.08 per diluted share, compared with net income of $1.6 million, or $0.06 per diluted share in the first quarter and net income of $1.4 million, or $0.05 per diluted share, in the same period a year ago. Net revenues for the six-month period ending Dec. 30, 2006 were $61.7 million, up 26.5 percent from the $48.7 million, in the prior year comparable period. Net income for the six-month period ending Dec. 30, 2006 was $3.9 million, or $0.15 per diluted share, compared with net income of $2.0 million, or $0.08 per diluted share, in the same period a year ago.
"We are very pleased to have reported a strong sequential increase in both operating and net profit this quarter," said Alex Hui, president and chief executive officer. "Pericom achieved organic revenue growth of 17.4 percent in comparison with the same quarter of last year, through the increasing adoption of our high-speed serial connectivity solutions for USB, Gigabit Ethernet, wireless LAN, HDMI and PCI-Express applications. We expect to sustain this growth momentum in calendar 2007 by targeting the fast growing server, notebook, digital video and mobile terminals markets with our high-speed serial connectivity solutions," he said.
Q2 NEW PRODUCTS
Pericom expanded its PCI Express offerings with PI7C9X130 PCIe to PCI-X Bridge, the industry's only PCIe 1.1 compliant bridge to receive PCISIG certification to date. Target applications include servers, HBA and NIC cards, networking, embedded and storage applications.
The company launched eight new HDMI switches to further expand its solution for HDMI connectivity in digital video applications. These HDMI 1.3 compliant products support multiple HDMI inputs in digital video displays with 12 bit deep color capability. Target applications include digital TVs, LCD monitors, set-top boxes, game consoles, switch box and notebook PCs.
The company released two new VCXO devices with PLL clock multipliers that support high frequency applications in digital set-top box, home media center and digital TVs, further enhancing Pericom's product positioning in digital video platforms.
Pericom also released three new clock buffers that offer critical reference clock distribution solution in the high growth Gigabit Ethernet switching applications.
Fiscal Q3 2007 OUTLOOK
The following statements are based on current expectations. These statements are forward looking, and actual results may differ materially.
-- The company continues to be in a high turns environment and
therefore revenue visibility remains limited. Depending upon the
strength of turns orders, revenues in the third fiscal quarter are
expected to be in the range of $29.5 million to $31.0 million. Gross
margins are expected to be in the 35 to 36 percent range. Margins
are influenced by the product mix of turns business and sales, if
any, of previously written down inventory.
-- Operating expenses are expected to be in the range of $9.3 to $9.8
million.
-- Other income is expected to be approximately $1.1 million,
consisting primarily of interest income.
-- Equity in net income (loss) of investees is expected to be
approximately $100,000.
Pericom will adhere to Regulation Fair Disclosure. The company will provide its investors and analysts with guidance in the areas of total revenues, gross margin, operating expenses and other income each quarter in our earnings releases and in our conference calls.
CONFERENCE CALL
The press release will be followed by a conference call beginning at 1:30 p.m. Pacific time. To listen to the call, dial (210) 234-0000. The passcode is Pericom.
A taped replay of the conference call will be made available for one week. To listen to the replay, dial (203) 369-0175. The Pericom financial results conference call will be available via a live webcast on the investor relations section of the web site at http://www.pericom.com/investor . Access the web site 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the web site for 12 months.
About Pericom
Pericom Semiconductor Corporation (NASDAQ: PSEM) offers customers worldwide the industry's most complete silicon and quartz-based solutions for the Computing, Communications and Consumer market segments. Our broad portfolio of leading-edge analog, digital, and mixed-signal integrated circuits and SaRonix frequency control products are essential in the timing, transferring, routing, and translating of high-speed signals as required by today's ever-increasing speed and bandwidth demanding applications. Company headquarters are in San Jose, Calif., with design centers and sales offices located 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 the statements under the captions 'Fiscal Q3 2007 Outlook' and statements regarding sustaining our growth momentum. 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, difficulties in integrating eCERA with our business, 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 July 1, 2006, our quarterly report on Form 10-Q for the quarter ended September 30, 2006 and, in particular, the risk factors sections of those filings.
Pericom Semiconductor Corporation
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
December September December December December
30, 30, 31, 30, 31,
2006 2006 2005 2006 2005
Net revenues $30,842 $30,826 $26,270 $61,668 $48,743
Cost of revenues 20,176 20,394 16,958 40,570 31,925
Gross profit 10,666 10,432 9,312 21,098 16,818
Operating expenses:
Research and development 4,040 3,942 3,640 7,982 7,393
Selling, general and
administrative 4,919 5,795 4,993 10,714 9,175
Restructuring charge 0 0 0 0 55
Total 8,959 9,737 8,633 18,696 16,623
Income from operations 1,707 695 679 2,402 195
Other income, net 1,151 1,280 912 2,431 1,810
Write-down of noncurrent
investments 0 (1) (33) (1) (33)
Income before income taxes 2,858 1,974 1,558 4,832 1,972
Income tax provision 691 620 467 1,311 604
Minority interest in (income)
loss of consolidated
subsidiaries (21) (9) 38 (30) 61
Equity in net income of
unconsolidated affiliates 110 280 283 390 608
Net income $2,256 $1,625 $1,412 $3,881 $2,037
Basic income per share $0.09 $0.06 $0.05 $0.15 $0.08
Diluted income per share $0.08 $0.06 $0.05 $0.15 $0.08
Shares used in computing
basic income per share 26,113 26,131 26,253 26,122 26,302
Shares used in computing
diluted income per share 26,783 26,692 26,972 26,737 27,057
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
As of As of
Dec 30, 2006 Jul 1,2006
(unaudited) (1)
Assets
Current Assets:
Cash & cash equivalents $13,694 $12,577
Restricted cash 613 950
Short-term investments 68,767 52,761
Accounts receivable 22,189 23,306
Inventories 14,625 16,742
Prepaid expenses and other
current assets 735 508
Deferred income taxes 3,866 4,709
Total current assets 124,489 111,553
Property and equipment, net 24,177 24,376
Investment in unconsolidated
subsidiaries 9,458 9,056
Deferred income taxes-non current 5,103 5,043
Long term marketable securities 44,090 56,297
Intangibles and other assets 7,309 7,361
Total assets $214,626 $213,686
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $10,318 $10,435
Accrued liabilities 7,540 7,243
Current portion of long-term
debt 2,592 5,756
Total current liabilities 20,450 23,434
Long-term debt 2,166 3,482
Deferred income taxes-non current 1,288 1,288
Other long term liabilities 281 402
Total liabilities 24,185 28,606
Minority interest in consolidated
subsidiary 1,000 969
Total minority interest 1,000 969
Shareholders' equity:
Common stock 139,315 138,483
Retained earnings and other 50,126 45,628
Total shareholders'
equity 189,441 184,111
Total liabilities and
shareholders' equity $214,626 $213,686
(1) The information in this column was derived from the Company's
audited consolidated financial statements for the year ended July 1, 2006.
Web site: http://www.pericom.com//