EX-99.1 2 ps1958ex991.txt Exhibit 99.1 PERICOM SEMICONDUCTOR REPORTS FISCAL SECOND QUARTER RESULTS SAN JOSE, Calif., Feb. 2 /PRNewswire-FirstCall/ -- Pericom Semiconductor Corporation (Nasdaq: PSEM) today announced results for its fiscal second quarter ended December 31, 2004. Results include the acquired operations of SaRonix LLC since October 1, 2003. Net revenues for the second quarter were $19,217,000, down 2.9% from $19,786,000 in the preceding quarter and are up 14.0% from $16,850,000 in the comparable period last year. GAAP net loss for the quarter was $303,000, or ($0.01) per share, compared to GAAP net income of $151,000, or $0.01 per share (diluted), in the preceding quarter and versus a GAAP net loss of $1,875,000, or ($0.07) per share, in the comparable period a year ago. Net revenues for the six months ended December 31, 2004 were $39,003,000, up 39.7% from $27,922,000 a year ago. GAAP net loss for the six month period ending December 31, 2004 was $152,000, or ($0.01) per share, as compared with a GAAP net loss of $2,675,000, or ($0.10) per share, in the prior year comparable period. Our GAAP financial results include non-recurring charges or events which are explained in the reconciliation of pro forma and GAAP financial results that appears in the financial statements portion of this release. Pro forma results are not meant as a substitute for GAAP, but are included solely for informational and comparative purposes. Pericom management believes pro forma financial information is useful to investors because it illuminates underlying operational trends by excluding significant non-recurring or otherwise unusual transactions. Our criteria for determining pro forma results may differ from other companies methods, and should not be regarded as a replacement for corresponding GAAP measures. Pro forma net income in the quarter ended December 31, 2004 was $201,000, or $0.01 per share (diluted), compared with net income of $151,000, or $0.01 per share (diluted), in the preceding quarter and a pro forma net loss of $629,000, or ($0.02) per share, in the comparable period a year ago. There were no pro forma adjustments to the results for the quarter ended September 30, 2004. Pro forma net income for the six month period ending December 31, 2004 was $352,000, or $0.01 per share (diluted), as compared with a pro forma net loss of $1,429,000, or ($0.06) per share, in the prior year comparable period. Alex Hui, President and Chief Executive Officer of Pericom said, "We are pleased to deliver revenues in the midpoint of our guidance and pro forma gross margins at the upper end of our guidance. Gross margins on our core IC business are at their highest level since March 2001. This is evidence of the success of our ongoing shift to higher margin focus products that now represent over 55% of our IC revenues. We continue to provide an increasing breadth of solutions to our focus markets, and new markets such as cell phones and digital media. We will continue to expand our high value-added Application Specific Interface Solutions to our customers served markets. This is an important part of our overall plan to drive improvement in our operating results." NEW PRODUCTS The Company launched eight new Clock IC and Analog Video switch products targeting key markets including Networking, Telecom and Digital Media applications and we are continuing to enhance our frequency control product offerings. SiliconClock: * PI6C487016 & PI6C487020 are low-skew, high-frequency programmable output clock drivers. The devices provide 4 banks of outputs with the flexibility of divided frequencies, and choice of output voltages including 1.2V, 1.8V, 2,5V or 3.3V. * PI6C22392-1 & PI6C2292-3 are multimedia & system peripheral clock generators for HDTV applications. * PI6C18551 is a 3.3V/5V, 1-to-4 clock buffer with very low skew, low noise, and frequencies up to 160 MHz. The buffer targets networking and telecom applications such as fiber channel, Fast Ethernet, PCI, PCI-X, and SONET. * PI6CV855 is a DDR-2 PLL clock driver with very low jitter of less than +/-75ps. * PI6X100-27 is a 3.3V VCXO for set top applications and offers a wide pull-range. SiliconSwitch * PI5V330S is a low on-resistance wide-bandwidth analog video switch with enhanced ESD tolerance. This is an enhanced version of our popular 5V330 video switch for both RGB and composite video switching applications. Frequency Control Products * Custom Pericom-designed silicon was integrated into several of our high-speed (up to 160MHz) quartz clock oscillator products, allowing much improved performance in high-speed networking applications. MARCH 2005 QUARTER OUTLOOK The following statements are based on current expectations. These statements are forward looking, and actual results may differ materially. * With current visibility we expect revenues to be up 1% to down 4%, depending on the strength of turns orders. * Gross margin is expected to be in the 36-37% range, but this continues to be highly dependent on product mix and overhead absorption. * Operating expenses are expected to increase slightly from last quarter. * Other income is expected to be approximately $0.8 million. 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. We will not provide further guidance or updates during the quarter unless we do so via a press release. NOTE: Our second quarter results telephone conference call will begin at 1:30 p.m. pacific time today. The conference call may be accessed by calling 800-949-8963 and referencing conference number 3829326. A replay of the second quarter results conference call will be available for 7 days commencing from 4:30 PM pacific time today. The replay telephone number is 800-642-1687 (domestic) or 706-645-9291 (international) and the access code is 3829326. Please note also that the conference call will be simultaneously Webcast live at: www.pericom.com/investors followed by on-demand Webcast beginning at 4:30 p.m. pacific time today through March 4, 2005 (Webcast requires Windows MediaPlayer). Pericom Semiconductor Corporation offers customers worldwide the industry's most complete silicon and quartz based solutions for the Computing, Communications, and Industrial 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, California, 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 'March 2005 Quarter Outlook' and statements regarding the Company's ongoing shift to higher margin focus products, our expansion of Application Specific Interface Solutions, our future improvements in operating results, and our future enhancements of frequency control product offerings. 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 SaRonix 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/A for the year ended June 30, 2004 and, in particular, the risk factors sections of this filing. Pericom Semiconductor Corporation Consolidated Statements of Operations - GAAP (In thousands, except per share data) (unaudited)
Three Months Ended Six Months Ended ------------------------------------------ --------------------------- Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, 2004 2004 2003 2004 2003 ------------ ------------ ------------ ------------ ------------ Net revenues $ 19,217 $ 19,786 $ 16,850 $ 39,003 $ 27,922 Cost of revenues 13,219 12,806 12,262 26,025 20,116 Gross profit 5,998 6,980 4,588 12,978 7,806 Operating expenses: Research and development 3,485 3,716 3,987 7,201 7,197 Selling, general and administrative 3,707 3,832 4,292 7,539 6,807 Restructuring charge 0 0 784 0 784 Total 7,192 7,548 9,063 14,740 14,788 Loss from operations (1,194) (568) (4,475) (1,762) (6,982) Other income, net 885 808 1,064 1,693 2,125 Write down of nonmarketable investment (96) 0 0 (96) (9) Income (loss) before income taxes (405) 240 (3,411) (165) (4,866) Income tax (benefit) (102) 89 (1,536) (13) (2,191) Net income (loss) $ (303) $ 151 $ (1,875) $ (152) $ (2,675) Basic earnings (loss) per share $ (0.01) $ 0.01 $ (0.07) $ (0.01) $ (0.10) Diluted earnings (loss) per share $ (0.01) $ 0.01 $ (0.07) $ (0.01) $ (0.10) Shares used in computing basic earnings (loss) per share 26,554 26,515 25,928 26,534 25,872 Shares used in computing diluted earnings (loss) per share 26,554 27,268 25,928 26,534 25,872
Pericom Semiconductor Corporation Consolidated Statements of Operations - Pro Forma (In thousands, except per share data) (unaudited)
Three Months Ended Six Months Ended ------------------------------------------ --------------------------- Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, 2004 2004 2003 2004 2003 ------------ ------------ ------------ ------------ ------------ Net revenues $ 19,217 $ 19,786 $ 16,850 $ 39,003 $ 27,922 Cost of revenues 12,175 12,806 11,582 24,981 19,436 Gross profit 7,042 6,980 5,268 14,022 8,486 Operating expenses: Research and development 3,485 3,716 3,594 7,201 6,804 Selling, general and administrative 4,120 3,832 3,882 7,952 6,397 Total 7,605 7,548 7,476 15,153 13,201 Loss from operations (563) (568) (2,208) (1,131) (4,715) Other income, net 885 808 1,064 1,693 2,125 Write down of nonmarketable investment (96) 0 0 (96) (9) Income (loss) before income taxes 226 240 (1,144) 466 (2,599) Income tax (benefit) 25 89 (515) 114 (1,170) Net income (loss) $ 201 $ 151 $ (629) $ 352 $ (1,429) Basic earnings (loss) per share $ 0.01 $ 0.01 $ (0.02) $ 0.01 $ (0.06) Diluted earnings (loss) per share $ 0.01 $ 0.01 $ (0.02) $ 0.01 $ (0.06) Shares used in computing basic earnings (loss) per share 26,554 26,515 25,928 26,534 25,872 Shares used in computing diluted earnings (loss) per share 27,342 27,268 25,928 27,305 25,872
Pericom Semiconductor Corporation Reconciliation of Net Income (Loss) In Accordance With GAAP to Pro Forma Net Income (Loss) (In thousands) (unaudited)
Three Months Ended Six Months Ended ------------------------------------------ --------------------------- Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, 2004 2004 2003 2004 2003 ------------ ------------ ------------ ------------ ------------ Net income (loss) in accordance with GAAP $ (303) $ 151 $ (1,875) $ (152) $ (2,675) Workforce reduction (Note 1) $ 230 $ 230 Restructuring charge (Note 2) $ 784 $ 784 End of life program inventory $ 1,044 $ 1,044 reserve charge (Note 3) SaRonix inventory fair value adjustment (Note 4) $ 573 $ 573 Write off of in-process R&D (Note 5) $ 360 $ 360 Amortization of customer backlog (Note 6) $ 320 $ 320 Gain on sale of Ireland building (Note 7) $ (413) $ (413) Income tax benefit (Note 8) $ (127) $ (1,021) $ (127) $ (1,021) Net income (loss) on a Pro Forma basis $ 201 $ 151 $ (629) $ 352 $ (1,429)
Notes to pro forma adjustments: Note 1: In November 2003, we reduced our total workforce by approximately 12% respectively. Note 2: In December 2003, we recorded a non-recurring charge related to an unused leased facility resulting from our move to a new corporate headquarters. Note 3: In December 2004, we wrote off inventory obsoleted by a product end-of-life program. Note 4: In the three months ended December 2003, we sold inventory acquired from SaRonix that was written up to fair value in connection with the acquisition. Note 5: In the three months ended December 2003, we wrote off the cost of acquired in-process R & D. Note 6: In the three months ended December 2003, we completely amortized the cost of acquired customer backlog for which we did not incur related selling expense. Note 7: In November 2004, we sold a building acquired in the SaRonix acquisition for a gain. Note 8: To adjust income tax/(benefit) for above pro forma adjustments. Pericom Semiconductor Corporation Condensed Consolidated Balance Sheets (In thousands) As of As of Dec 31, 2004 Jun 30, 2004 ------------- ------------- (unaudited) Assets Current Assets: Cash & cash equivalents $ 8,338 $ 13,965 Short-term investments 134,768 130,412 Accounts receivable 8,779 7,549 Inventories 14,552 15,980 Prepaid expenses and other current assets 627 664 Deferred income taxes 5,377 5,564 Total current assets 172,441 174,134 Property and equipment, net 6,168 6,442 Investment in and advances to Pericom Technology, Inc. 6,896 7,019 Deferred income taxes-non current 1,478 1,419 Other assets 6,661 8,438 Total assets $ 193,644 $ 197,452 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 5,955 $ 8,153 Accrued liabilities 5,450 5,972 Current portion of long-term debt 0 1,291 Total current liabilities 11,405 15,416 Other long term liabilities 0 139 Total liabilities 11,405 15,555 Minority interest in consolidated subsidiary 305 0 Total minority interest 305 0 Shareholders' equity: Common stock 142,771 142,607 Retained earnings and other 39,163 39,290 Total shareholders' equity 181,934 181,897 Total liabilities and shareholders' equity $ 193,644 $ 197,452 SOURCE Pericom Semiconductor Corporation -0- 02/02/2005 /CONTACT: Mike Craighead, VP, Chief Financial Officer of Pericom Semiconductor Corporation, +1-408-435-0800, or fax, +1-408-435-1100/ /Web site: http://www.pericom.com /