Pericom Semiconductor Reports Fiscal First Quarter 2014 Financial Results

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 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
                                                                                                =============    =============
                                                                                                                                                        
                                                                                                                                                        
 




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