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 the statements under the captions "Fiscal Q2 2014 Outlook", which regard the anticipated revenues, gross margin, operating expenses, other income, and effective tax rate in the second fiscal quarter of 2014. 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 29, 2013, and in particular, the risk factors sections contained in that report.
- See Attached Tables -
Pericom Semiconductor Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended
---------------------------------------------
September 28, June 29, September 29,
2013 2013 2012
-------------- -------------- --------------
Net revenues $ 32,608 $ 31,707 $ 36,749
Cost of revenues 19,800 19,791 22,838
-------------- -------------- --------------
Gross profit 12,808 11,916 13,911
Operating expenses:
Research and development 5,045 5,320 5,323
Selling, general and
administrative 7,687 7,217 7,639
Goodwill impairment - 16,899 -
-------------- -------------- --------------
Total operating expenses 12,732 29,436 12,962
-------------- -------------- --------------
Income (loss) from operations 76 (17,520) 949
Interest and other income, net 486 1,277 635
-------------- -------------- --------------
Income before income taxes 562 (16,243) 1,584
Income tax expense 231 573 500
-------------- -------------- --------------
Net income (loss) from
consolidated companies 331 (16,816) 1,084
Equity in net income of
unconsolidated affiliates 43 30 108
-------------- -------------- --------------
Net income (loss) $ 374 $ (16,786) $ 1,192
============== ============== ==============
Basic income (loss) per share $ 0.02 $ (0.74) $ 0.05
============== ============== ==============
Diluted income (loss) per
share $ 0.02 $ (0.74) $ 0.05
============== ============== ==============
Shares used in computing basic
income (loss) per share 22,794 22,783 23,543
============== ============== ==============
Shares used in computing
diluted income (loss) per
share 22,951 22,783 23,740
============== ============== ==============
Pericom Semiconductor Corporation
Condensed Consolidated Statements of Operations
(In thousands)
(unaudited)
Three Months Ended
--------------------------------------------
September 28, June 29, September 29,
2013 2013 2012
-------------- -------------- --------------
Share-based compensation
Cost of revenues $ 36 $ 41 $ 52
Research and development 297 309 322
Selling, general and
administrative 396 447 467
-------------- -------------- --------------
Share-based compensation
expense $ 729 $ 797 $ 841
Amortization of intangible
assets
Cost of revenues $ 488 $ 486 $ 477
Research and development 50 50 56
Selling, general and
administrative 247 245 243
-------------- -------------- --------------
Amortization of intangible
assets $ 785 $ 781 $ 776
Pericom Semiconductor Corporation
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income
(In thousands)
(unaudited)
Three Months Ended
----------------------------------------------
September 28, June 29, September 29,
2013 2013 2012
-------------- -------------- --------------
GAAP net income (loss) $ 374 $ (16,786) $ 1,192
Reconciling items:
Share-based compensation
expense 729 797 841
Amortization of intangible
assets 785 781 776
Write off of equipment - 184 -
Fair value adjustment to
depreciation expense on
acquired fixed assets 51 51 50
Goodwill impairment - 16,899 -
Tax on intercompany
transaction 15 118 -
Lease restructuring and
moving costs 522 - -
Tax effect of adjustments (543) (420) (402)
-------------- -------------- --------------
Total reconciling items 1,559 18,410 1,265
-------------- -------------- --------------
Non-GAAP net income $ 1,933 $ 1,624 $ 2,457
============== ============== ==============
Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS
(unaudited)
Diluted net income (loss)
per share:
GAAP diluted income per
share $ 0.02 $ (0.74) $ 0.05
Adjustments:
Share-based compensation
expense 0.03 0.03 0.04
Amortization of intangible
assets 0.03 0.04 0.03
Write off of equipment - 0.01 -
Fair value adjustment to
depreciation expense on
acquired fixed assets - 0.01 -
Goodwill impairment - 0.72 -
Tax on intercompany
transaction - 0.01 -
Lease restructuring and
moving costs 0.02 - -
Tax effect of adjustments (0.02) (0.02) (0.02)
Difference in share count - 0.01 -
-------------- -------------- --------------
Total adjustments 0.06 0.81 0.05
-------------- -------------- --------------
Non-GAAP diluted income
per share $ 0.08 $ 0.07 $ 0.10
============== ============== ==============
Shares used in diluted net
income per share
calculation:
GAAP 22,951 22,783 23,740
Change in diluted shares
from GAAP net loss to
non-GAAP net income - 117 -
Exclude the benefit of
share-based
compensation expense
(1) 390 467 308
-------------- -------------- --------------
Non-GAAP 23,341 23,367 24,048
============== ============== ==============
(1) For purposes of calculating non-GAAP diluted net income per share, the
GAAP diluted weighted average shares outstanding is adjusted to exclude
the benefits of unamortized stock compensation costs that are treated as
proceeds assumed to be used to repurchase shares under the GAAP treasury
stock method.
Pericom Semiconductor Corporation
Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
(In thousands)
(unaudited)
Three Months Ended
----------------------------------------------
September 28, June 29, September 29,
2013 2013 2012
-------------- -------------- --------------
GAAP gross margin $ 12,808 $ 11,916 $ 13,911
-% of revenues 39.3% 37.6% 37.9%
Reconciling items:
Share-based compensation 36 41 52
Amortization of intangible
assets 488 486 477
Fair value adjustment to
depreciation expense on
acquired fixed assets 10 10 10
-------------- -------------- --------------
Total reconciling items 534 537 539
-------------- -------------- --------------
Non-GAAP gross margin $ 13,342 $ 12,453 $ 14,450
============== ============== ==============
-% of revenues 40.9% 39.3% 39.3%
Reconciliation of GAAP R&D Expenses to Non-GAAP R&D Expenses
(unaudited)
GAAP research and
development expenses $ 5,045 $ 5,320 $ 5,323
-% of revenues 15.5% 16.8% 14.5%
Reconciling items:
Share-based compensation (297) (309) (322)
Amortization of intangible
assets (50) (50) (56)
Write off of equipment - (184) -
Fair value adjustment to
depreciation expense on
acquired fixed assets (10) (10) (10)
-------------- -------------- --------------
Total reconciling items (357) (553) (388)
-------------- -------------- --------------
Non-GAAP research and
development expenses $ 4,688 $ 4,767 $ 4,935
============== ============== ==============
-% of revenues 14.4% 15.0% 13.4%
Reconciliation of GAAP SG&A Expenses to Non-GAAP SG&A Expenses
(unaudited)
GAAP selling, general and
administrative expenses $ 7,687 $ 7,217 $ 7,639
-% of revenues 23.6% 22.8% 20.8%
Reconciling items:
Share-based compensation (396) (447) (467)
Amortization of intangible
assets (247) (245) (243)
Fair value adjustment to
depreciation expense on
acquired fixed assets (31) (31) (30)
Lease restructuring and
moving costs (522) - -
-------------- -------------- --------------
Total reconciling items (1,196) (723) (740)
-------------- -------------- --------------
Non-GAAP selling, general
and administrative expenses $ 6,491 $ 6,494 $ 6,899
============== ============== ==============
-% of revenues 19.9% 20.5% 18.8%
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
As of As of
September 28, June 29, 2013
2013
-------------- --------------
Assets
Current assets:
Cash and cash equivalents $ 24,963 $ 30,844
Short-term investments 52,129 29,447
Accounts receivable - trade 24,049 22,105
Inventories 14,633 14,844
Prepaid expenses and other current assets 6,654 5,886
Deferred income taxes 570 585
------------- -------------
Total current assets 122,998 103,711
Property, plant and equipment-net 61,824 60,959
Investments in unconsolidated affiliates 2,585 2,525
Deferred income taxes non-current 3,283 3,411
Long-term investments in marketable securities 39,121 57,392
Intangible assets 9,220 9,944
Other assets 8,498 8,625
------------- -------------
Total assets $ 247,529 $ 246,567
============= =============
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 11,258 $ 12,184
Accrued liabilities 9,449 8,731
------------- -------------
Total current liabilities 20,707 20,915
Industrial development subsidy 7,074 7,263
Deferred tax liabilities 5,690 5,798
Other long-term liabilities 3,698 3,700
------------- -------------
Total liabilities 37,169 37,676
Shareholders' equity:
Common stock and paid in capital 119,562 119,591
Retained earnings and other comprehensive
income 90,798 89,300
------------- -------------
Total shareholders' equity 210,360 208,891
------------- -------------
Total liabilities and shareholders' equity $ 247,529 $ 246,567
============= =============
