Pericom Semiconductor Reports Fiscal Fourth Quarter and Annual 2013 Financial Results

Non-GAAP Financial Information

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (GAAP), this announcement of operating results contains non-GAAP financial measures that exclude the income statement effects of share-based compensation, amortization of intangible assets, fair value adjustments on acquired fixed assets, write off of equipment, goodwill impairment, restructuring charge, establishment of a deferred tax asset valuation allowance, note receivable write off, a tax provision on intercompany transactions and the effects of excluding share-based compensation upon the number of diluted shares used in calculating non-GAAP earnings per share.

We have excluded share-based compensation expense in calculating these non-GAAP financial measures. These expenses are non-cash in nature and rely on valuations of the future market price of our common stock that is difficult to predict and is affected by market factors that are largely not within the control of management. We have excluded amortization of intangible assets, amortization of fair value adjustments on acquired fixed assets, write off of equipment, goodwill impairment, restructuring charge, establishment of a deferred tax valuation allowance, note receivable write off, a tax provision on intercompany transactions and the corresponding tax effects because we do not consider them to be related to our core operating performance. We also use non-GAAP data in calculating certain metrics such as non-GAAP cost of goods sold in computing inventory days of supply.

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 the statements under the captions "Fiscal Q1 2014 Outlook", which regard the anticipated revenues, gross margin, operating expenses, other income, and effective tax rate in the first fiscal quarter of 2014, and statements from our CEO regarding expanding our customer base and other future expectations. 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 30, 2012, subsequent quarterly reports on Form 10-Q, and in particular, the risk factors sections contained in those reports.

                                                                            
                                                                            
                     Pericom Semiconductor Corporation                      
              Condensed Consolidated Statements of Operations               
                   (In thousands, except per share data)                    
                                (unaudited)                                 
                                                                            
                             Three Months Ended        Twelve Months Ended  
                       -----------------------------  --------------------- 
                        June 29,  March 30, June 30,   June 29,   June 30,  
                          2013      2013      2012       2013       2012    
                       ---------  --------  --------  ---------  ---------- 
                                                                            
Net revenues           $  31,707  $ 30,366  $ 37,944  $ 129,255  $  137,135 
                                                                            
Cost of revenues          19,791    19,521    24,396     81,388      88,484 
                       ---------  --------  --------  ---------  ---------- 
                                                                                                                                  
    Gross  profit                        11,916        10,845        13,548          47,867            48,651  
                                                                                                                                                        
Operating  expenses:                                                                                                                  
                                                                                                                                                        
    Research  and                                                                                                                            
      development                          5,320          5,277          5,460          21,017            21,722  
                                                                                                                                                        
    Selling,  general  and                                                                                                            
      administrative                    7,217          7,193          8,135          29,581            29,648  
                                                                                                                                                        
    Goodwill  impairment          16,899                  -                  -          16,899                      -  
                                              ---------    --------    --------    ---------    ----------  
                                                                                                                                                        
        Total  operating                                                                                                                  
          expenses                          29,436        12,470        13,595          67,497            51,370  
                                              ---------    --------    --------    ---------    ----------  
                                                                                                                                                        
Income  (loss)  from                                                                                                                    
  operations                            (17,520)      (1,625)            (47)      (19,630)          (2,719)
                                                                                                                                                        
Interest  and  other                                                                                                                    
  income,  net                              1,277          1,318          1,059            4,024              3,614  
                                              ---------    --------    --------    ---------    ----------  
                                                                                                                                                        
Income  (loss)  before                                                                                                                
  income  taxes                        (16,243)          (307)        1,012        (15,606)                895  
                                                                                                                                                        
Income  tax  expense                                                                                                                    
  (benefit)                                      573              395          2,974            6,223              3,097  
                                              ---------    --------    --------    ---------    ----------  
                                                                                                                                                        
Net  income  (loss)  from                                                                                                            
  consolidated                                                                                                                              
  companies                              (16,816)          (702)      (1,962)      (21,829)          (2,202)
                                                                                                                                                        
Equity  in  net  income                                                                                                                
  of  unconsolidated                                                                                                                    
  affiliates                                      30                21                51                215                  134  
                                              ---------    --------    --------    ---------    ----------  
                                                                                                                                                        
Net  income  (loss)            $  (16,786)  $      (681)  $  (1,911)  $  (21,614)  $      (2,068)
                                              =========    ========    ========    =========    ==========  
                                                                                                                                                        
Basic  income  (loss)                                                                                                                  
  per  share                          $      (0.74)  $    (0.03)  $    (0.08)  $      (0.93)  $        (0.09)
                                              =========    ========    ========    =========    ==========  
                                                                                                                                                        
Diluted  income  (loss)                                                                                                              
  per  share                          $      (0.74)  $    (0.03)  $    (0.08)  $      (0.93)  $        (0.09)
                                              =========    ========    ========    =========    ==========  
                                                                                                                                                        
Shares  used  in                                                                                                                            
  computing  basic                                                                                                                        
  income  (loss)  per                                                                                                                    
  share                                        22,783        23,162        23,611          23,251            24,094  
                                              =========    ========    ========    =========    ==========  
                                                                                                                                                        
Shares  used  in                                                                                                                            
  computing  diluted                                                                                                                    
  income  (loss)  per                                                                                                                    
  share                                        22,783        23,162        23,611          23,251            24,094  
                                              =========    ========    ========    =========    ==========  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                            Pericom  Semiconductor  Corporation                                          
                              Condensed  Consolidated  Statements  of  Operations                            
                                                              (In  thousands)                                                              
                                                                  (unaudited)                                                                
                                                                                                                                                        
                                                                  Three  Months  Ended            Twelve  Months  Ended
                                                      -----------------------------  -------------------
                                                        June  29,  March  30,    June  30,    June  29,    June  30,
                                                            2013            2013            2012            2013            2012    
                                                      ---------  ---------  ---------  ---------  ---------
                                                                                                                                                        
Share-based  compensation                                                                                                        
    Cost  of  revenues                  $            41  $            51  $            50  $          187  $          211
    Research  and  development              309              317              335          1,282          1,434
    Selling,  general  and                                                                                                            
      administrative                                447              474              518          1,871          2,091
                                                      ---------  ---------  ---------  ---------  ---------
        Share-based                                                                                                                          
          compensation  expense    $          797  $          842  $          903  $      3,340  $      3,736
                                                                                                                                                        
Amortization  of  intangible                                                                                                    
  assets                                                                                                                                          
    Cost  of  revenues                  $          486  $          482  $          477  $      1,926  $      1,596
    Research  and  development                50                51                57              206              585
    Selling,  general  and                                                                                                            
      administrative                                245              242              243              972              966
                                                      ---------  ---------  ---------  ---------  ---------
        Amortization  of                                                                                                                  
          intangible  assets          $          781  $          775  $          777  $      3,104  $      3,147
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                          Pericom  Semiconductor  Corporation                                            
            Reconciliation  of  GAAP  Net  Income  (Loss)  to  Non-GAAP  Net  Income              
                                                              (In  thousands)                                                              
                                                                (unaudited)                                                                  
                                                                                                                                                        
                                                              Three  Months  Ended              Twelve  Months  Ended  
                                                  -----------------------------    -------------------  
                                                    June  29,    March  30,  June  30,      June  29,    June  30,  
                                                        2013            2013            2012              2013            2012      
                                                  ---------    --------    --------    ---------    --------  
GAAP  net  income  (loss)      $  (16,786)  $      (681)  $  (1,911)  $  (21,614)  $  (2,068)
Reconciling  items:                                                                                                                    
    Share-based                                                                                                                              
      compensation  expense                797              842              903            3,340          3,736  
    Amortization  of                                                                                                                      
      intangible  assets                      781              775              777            3,104          3,147  
    Write  off  of  equipment              184                  -                  -                184                  -  
    Fair  value  adjustment                                                                                                          
      to  depreciation                                                                                                                    
      expense  on  acquired                                                                                                            
      fixed  assets                                  51                50                50                201              200  
    Goodwill  impairment              16,899                  -                  -          16,899                  -  
    Restructuring  charge                      -                  -                  -                    -              460  
    Establishment  of                                                                                                                    
      deferred  tax  asset                                                                                                              
      valuation  allowance                      -                  -          2,751                    -          2,751  
    Write  off  of  note                                                                                                                  
      receivable                                        -                  -              556                    -              556  
    Tax  on  intercompany                                                                                                              
      transaction                                  118              382                  -            5,487                  -  
    Tax  effect  of                                                                                                                          
      adjustments                                (420)          (403)          (625)        (1,633)      (1,816)
                                                  ---------    --------    --------    ---------    --------  
        Total  reconciling                                                                                                              
          items                                    18,410          1,646          4,412          27,582          9,034  
                                                  ---------    --------    --------    ---------    --------  
Non-GAAP  net  income            $      1,624    $        965    $    2,501    $      5,968    $    6,966  
                                                  =========    ========    ========    =========    ========  
                                                                                                                                                        
                  Reconciliation  of  GAAP  Diluted  EPS  to  Non-GAAP  Diluted  EPS                  
                                                                (unaudited)                                                                  
                                                                                                                                                        
Diluted  net  income                                                                                                                    
  (loss)  per  share:                                                                                                                    
    GAAP  diluted  income                                                                                                              
      (loss)  per  share            $      (0.74)  $    (0.03)  $    (0.08)  $      (0.93)  $    (0.09)
    Adjustments:                                                                                                                            
    Share-based                                                                                                                              
      compensation  expense              0.03            0.04            0.04    $        0.15            0.15  
    Amortization  of                                                                                                                      
      intangible  assets                    0.04            0.03            0.04              0.13            0.13  
    Write  off  of  equipment            0.01                  -                  -              0.01                  -  
    Fair  value  adjustment                                                                                                          
      to  depreciation                                                                                                                    
      expense  on  acquired                                                                                                            
      fixed  assets                              0.01                  -                  -              0.01            0.01  
    Goodwill  impairment                  0.72                  -                  -              0.72                  -  
    Restructuring  charge                      -                  -                  -                    -            0.02  
    Establishment  of                                                                                                                    
      deferred  tax  asset                                                                                                              
      valuation  allowance                      -                  -            0.11                    -            0.11  
    Write  off  of  note                                                                                                                  
      receivable                                        -                  -            0.02                    -            0.02  
    Tax  on  intercompany                                                                                                              
      transaction                                0.01            0.02                  -              0.23                  -  
    Tax  effect  of                                                                                                                          
      adjustments                              (0.02)        (0.02)        (0.03)          (0.07)        (0.07)
    Difference  in  share                                                                                                              
      count                                            0.01                  -                  -                    -                  -  
                                                  ---------    --------    --------    ---------    --------  
        Total  adjustments                  0.81            0.07            0.18              1.18            0.37  
                                                  ---------    --------    --------    ---------    --------  
    Non-GAAP  diluted                                                                                                                    
      income  per  share            $        0.07    $      0.04    $      0.10    $        0.25    $      0.28  
                                                  =========    ========    ========    =========    ========  
                                                                                                                                                        
Shares  used  in  diluted                                                                                                            
  net  income  (loss)  per                                                                                                            
  share  calculation:                                                                                                                  
    GAAP                                            22,783        23,162        23,611          23,251        24,094  
        Change  in  diluted                                                                                                              
          shares  from  GAAP                                                                                                              
          net  loss  to  non-                                                                                                              
          GAAP  net  income                      117                99              182                139              123  
        Exclude  the  benefit                                                                                                          
          of  share-based                                                                                                                  
          compensation                                                                                                                      
          expense  (1)                              467              523              379                451              376  
                                                  ---------    --------    --------    ---------    --------  
    Non-GAAP                                    23,367        23,784        24,172          23,841        24,593  
                                                  =========    ========    ========    =========    ========  
                                                                                                                                                        
                                                                                                                                                        
(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              Twelve  Months  Ended  
                                                    ----------------------------    -------------------  
                                                    June  29,    March  30,  June  30,    June  29,      June  30,  
                                                        2013            2013            2012            2013              2012      
                                                    --------    --------    --------    --------    ---------  
GAAP  gross  margin                  $  11,916    $  10,845    $  13,548    $  47,867    $    48,651  
    -  %  of  revenues                          37.6%          35.7%          35.7%          37.0%            35.5%
Reconciling  items:                                                                                                                    
        Share-based                                                                                                                          
          compensation                              41                51                50              187                211  
        Amortization  of                                                                                                                  
          intangible  assets                  486              482              477          1,926            1,596  
          Fair  value                                                                                                                          
          adjustment  to                                                                                                                    
          depreciation  expense                                                                                                      
          on  acquired  fixed                                                                                                            
          assets                                          10                10                10                40                  40  
        Restructuring  charge                  -                  -                  -                  -                  78  
                                                    --------    --------    --------    --------    ---------  
            Total  reconciling                                                                                                          
              items                                      537              543              537          2,153            1,925  
                                                    --------    --------    --------    --------    ---------  
Non-GAAP  gross  margin          $  12,453    $  11,388    $  14,085    $  50,020    $    50,576  
                                                    ========    ========    ========    ========    =========  
    -  %  of  revenues                          39.3%          37.5%          37.1%          38.7%            36.9%
                                                                                                                                                        
                Reconciliation  of  GAAP  R&D  Expenses  to  Non-GAAP  R&D  Expenses                
                                                                (unaudited)                                                                  
                                                                                                                                                        
GAAP  research  and                                                                                                                      
  development  expenses          $    5,320    $    5,277    $    5,460    $  21,017    $    21,722  
    -  %  of  revenues                          16.8%          17.4%          14.4%          16.3%            15.8%
Reconciling  items:                                                                                                                    
        Share-based                                                                                                                          
          compensation                          (309)          (317)          (335)      (1,282)        (1,434)
        Amortization  of                                                                                                                  
          intangible  assets                  (50)            (51)            (57)          (206)            (585)
        Write  off  of                                                                                                                        
          equipment                                (184)                -                  -            (184)                  -  
        Fair  value  adjustment                                                                                                      
          to  depreciation                                                                                                                
          expense  on  acquired                                                                                                        
          fixed  assets                            (10)            (10)            (10)            (40)              (40)
        Restructuring  charge                  -                  -                  -                  -              (164)
                                                    --------    --------    --------    --------    ---------  
            Total  reconciling                                                                                                          
              items                                    (553)          (378)          (402)      (1,712)        (2,223)
                                                    --------    --------    --------    --------    ---------  
Non-GAAP  research  and                                                                                                              
  development  expenses          $    4,767    $    4,899    $    5,058    $  19,305    $    19,499  
                                                    ========    ========    ========    ========    =========  
    -  %  of  revenues                          15.0%          16.1%          13.3%          14.9%            14.2%
                                                                                                                                                        
              Reconciliation  of  GAAP  SG&A  Expenses  to  Non-GAAP  SG&A  Expenses              
                                                                (unaudited)                                                                  
                                                                                                                                                        
GAAP  selling,  general  and                                                                                                      
  administrative  expenses    $    7,217    $    7,193    $    8,135    $  29,581    $    29,648  
    -  %  of  revenues                          22.8%          23.7%          21.4%          22.9%            21.6%
Reconciling  items:                                                                                                                    
        Share-based                                                                                                                          
          compensation                          (447)          (474)          (518)      (1,871)        (2,091)
        Amortization  of                                                                                                                  
          intangible  assets                (245)          (242)          (243)          (972)            (966)
        Fair  value  adjustment                                                                                                      
          to  depreciation                                                                                                                
          expense  on  acquired                                                                                                        
          fixed  assets                            (31)            (30)            (30)          (121)            (120)
        Restructuring  charge                  -                  -                  -                  -              (218)
        Write  off  of  note                                                                                                              
          receivable                                    -                  -            (556)                -              (556)
                                                    --------    --------    --------    --------    ---------  
            Total  reconciling                                                                                                          
              items                                    (723)          (746)      (1,347)      (2,964)        (3,951)
                                                    --------    --------    --------    --------    ---------  
Non-GAAP  selling,  general                                                                                                      
  and  administrative                                                                                                                  
  expenses                                  $    6,494    $    6,447    $    6,788    $  26,617    $    25,697  
                                                    ========    ========    ========    ========    =========  
    -  %  of  revenues                          20.5%          21.2%          17.9%          20.6%            18.7%
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                            Pericom  Semiconductor  Corporation                                          
                                        Condensed  Consolidated  Balance  Sheets                                      
                                                              (In  thousands)                                                              
                                                                  (unaudited)                                                                
                                                                                                                                                        
                                                                                                          As  of                  As  of        
                                                                                                  June  29,  2013  June  30,  2012
                                                                                                  -------------  -------------
        Assets                                                                                                                                    
                                                                                                                                                        
Current  assets:                                                                                                                          
                                                                                                                                                        
    Cash  and  cash  equivalents                                            $            30,844  $            24,283
    Short-term  investments                                                                29,447                79,924
    Accounts  receivable  -  trade                                                      22,105                24,010
    Inventories                                                                                      14,844                16,604
    Prepaid  expenses  and  other  current  assets                            5,886                  6,099
    Deferred  income  taxes                                                                        585                  1,549
                                                                                                  -------------  -------------
        Total  current  assets                                                              103,711              152,469
                                                                                                                                                        
Property,  plant  and  equipment-net                                              60,959                56,102
Investments  in  unconsolidated  affiliates                                  2,525                  2,474
Deferred  income  taxes  non-current                                                3,411                  2,447
Long-term  investments  in  marketable  securities                    57,392                23,628
Goodwill                                                                                                          -                16,797
Intangible  assets  -  net                                                                    9,944                12,831
Other  assets                                                                                          8,625                  9,058
                                                                                                  -------------  -------------
        Total  assets                                                                  $          246,567  $          275,806
                                                                                                  =============  =============
                                                                                                                                                        
                                                                                                                                                        
        Liabilities  and  Shareholders'  Equity                                                                        
                                                                                                                                                        
Current  liabilities:                                                                                                                
                                                                                                                                                        
    Short-term  debt                                                                $                      -  $              1,364
    Accounts  payable                                                                            12,184                14,860
    Accrued  liabilities                                                                        8,731                  8,608
                                                                                                  -------------  -------------
        Total  current  liabilities                                                      20,915                24,832
                                                                                                                                                        
Industrial  development  subsidy                                                      7,263                  8,577
Deferred  tax  liabilities                                                                  5,798                  6,191
Other  long-term  liabilities                                                            3,700                  2,571
                                                                                                  -------------  -------------
        Total  liabilities                                                                      37,676                42,171
                                                                                                                                                        
Shareholders'  equity:                                                                                                              
    Common  stock  and  paid  in  capital                                          119,591              123,362
    Retained  earnings  and  other  comprehensive                                                                  
      income                                                                                              89,300              110,273
                                                                                                  -------------  -------------
        Total  shareholders'  equity                                                  208,891              233,635
                                                                                                  -------------  -------------
                                                                                                                                                        
        Total  liabilities  and  shareholders'  equity      $          246,567  $          275,806
                                                                                                  =============  =============
                                                                                                                                                        
                                                                                                                                                        
 




© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise