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PMC Reports Fourth Quarter and Full Year 2014 Results

Q4 and full year 2014 earnings announcement call live on http://investor.pmcs.com at 1:30 p.m. PT

Conference call: 1 (888) 337-8169 or 1 (719) 325-2455 outside North America; passcode 2692388#

Replay available shortly after end of conference call through February 28, 2015

SUNNYVALE, Calif. — (BUSINESS WIRE) — January 29, 2015 — PMC-Sierra, Inc. (PMC®) (Nasdaq: PMCS), the semiconductor and software solutions innovator transforming networks that connect, move and store big data, today reported results for the fourth quarter and full year ended December 27, 2014.

Net revenues in the fourth quarter of 2014 totaled $136.9 million, an increase of one percent from $135.5 million in the third quarter of 2014 and an increase of 7.9 percent, compared to $126.9 million in the fourth quarter of 2013. Storage product revenues in the fourth quarter of 2014 totaled $98.4 million, an increase of 8.3 percent from $90.9 million in the fourth quarter of 2013.

GAAP net income in the fourth quarter of 2014 totaled $2.3 million or $0.01 per diluted share, compared to a GAAP net income in the third quarter of 2014 of $5.5 million or $0.03 per diluted share.

Non-GAAP net income in the fourth quarter of 2014 totaled $22.7 million or $0.11 per diluted share, compared to non-GAAP net income of $22.5 million or $0.11 per diluted share in the third quarter of 2014.

“Due to strong Storage and record OTN revenues in the fourth quarter, we grew revenue eight percent over the same quarter last year,” said Greg Lang, PMC president and chief executive officer. “And each of our four major growth drivers started contributing revenue in 2014, positioning PMC for continued growth in 2015.”

Net income on a non-GAAP basis in the fourth quarter of 2014 excludes the following items: (i) $6.8 million stock-based compensation expense, (ii) $11 million amortization of purchased intangible assets; (iii) $2.7 million foreign exchange gain on foreign tax liabilities; (iv) $3.9 million provision for income tax matters; and (v) $1.3 million other adjustments as described in the accompanying GAAP to non-GAAP reconciliation table.

For the full year ended December 27, 2014, net revenues were $525.6 million, compared to $508.0 million for the year ended December 28, 2013, an increase of 3.5 percent year over year. GAAP operating income for the full year 2014 was $11.1 million compared to GAAP operating loss of $13.2 million reported in the year ended December 28, 2013. Non-GAAP operating income for the full year 2014 was $83.1 million compared to non-GAAP operating income of $68.4 million the prior year. GAAP net income for the full year 2014 was $0.1 million, or $0.00 per diluted share, compared to GAAP net loss of $32.3 million, or $0.16 loss per share the prior year. Non-GAAP net income in the year ended December 27, 2014, was $79.5 million or $0.40 per diluted share, compared to non-GAAP net income of $68.3 million or $0.33 per diluted share in the year ended December 28, 2013.

For a full reconciliation of each non-GAAP item used herein to the most directly comparable GAAP financial measure, please refer to the schedule included with this release. The Company believes the additional non-GAAP measures are useful to investors for the purpose of financial analysis. Management uses the non-GAAP measures internally to evaluate its in-period operating performance before gains, losses and other charges that are considered by management to be outside of the Company’s core operating results. In addition, the measures are used to plan for the Company’s future periods. However, non-GAAP measures are neither stated in accordance with, nor are they a substitute for, GAAP measures.

FOURTH QUARTER AND 2014 HIGHLIGHTS

The Company announced the following in the fourth quarter and full year 2014:

Fourth Quarter and Full Year 2014 Conference Call

Management will review fourth quarter and full year 2014 results and share its outlook for the first quarter of 2015 during a conference call at 1:30 p.m. Pacific Time/4:30 p.m. Eastern Time on January 29, 2015. The conference call webcast will be accessible under the Financial News and Events section at http://investor.pmcs.com. To listen to the conference call by telephone, dial 1 (888) 337-8169 or 1 (719) 325-2455 outside North America with passcode 2692388# approximately ten minutes before the start time. A telephone playback will be available until February 28, 2015, and can be accessed at 1 (888) 203-1112 or 1 (719) 457-0820 outside North America using passcode 2692388#.

PMC will be attending the Stifel, Nicolaus & Co.’s 2015 Technology, Internet & Media Conference on February 9, 2015, at the Westin St. Francis in San Francisco, as well as the Goldman Sachs Technology & Internet Conference on February 10, at the Palace Hotel in San Francisco. Steve Geiser, the Company’s vice president and chief financial officer, will be available both days for individual investor meetings. He will also participate in fireside chats and Q&As during both events, which will be webcast simultaneously at http://investor.pmcs.com.

Safe Harbor Statement

This release contains forward-looking statements that involve risks and uncertainties. The Company’s SEC filings, including the Company’s most recent reports on Form 10-K and Form 10-Q, describe the risks associated with the Company’s business, including PMC’s limited revenue visibility due to variable customer demands, market segment growth or decline, orders with short delivery lead times, customer concentration, changes in inventory, and other items such as tax rates, foreign exchange rates and volatility in global financial markets.

About PMC

PMC (Nasdaq: PMCS) is the semiconductor and software solutions innovator transforming networks that connect, move and store big data. Building on a track record of technology leadership, the Company is driving innovation across storage, optical and mobile networks. PMC’s highly integrated solutions increase performance and enable next-generation services to accelerate the network transformation. For more information, visit www.pmcs.com. Follow PMC on Facebook, Twitter, LinkedIn and RSS.

© Copyright PMC-Sierra, Inc. 2015. All rights reserved. PMC, PMC-SIERRA and ADAPTEC are registered trademarks of PMC-Sierra, Inc. in the United States and other countries, PMCS and FLASHTEC are trademarks of PMC-Sierra, Inc. PMC disclaims any ownership rights in other product and company names mentioned herein. PMC is the corporate brand of PMC-Sierra, Inc.

             
PMC-Sierra, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share amounts)
(unaudited)
 
Three Months Ended Twelve Months Ended
December 27, September 27, December 28, December 27, December 28,
  2014       2014       2013     2014       2013  
 
Net revenues $ 136,851 $ 135,462 $ 126,872 $ 525,603 $ 508,028
Cost of revenues   40,702     40,306     37,349     155,396     149,213  
Gross profit 96,149 95,156 89,523 370,207 358,815
 
Gross profit % 70 % 70 % 71 % 70 % 71 %
 
Research and development 50,942 48,441 54,009 198,919 211,047
Selling, general and administrative 29,411 29,265 27,768 117,007 112,770
Amortization of purchased intangible assets   10,994     9,948     13,547     43,219     48,245  
Income (loss) from operations 4,802 7,502 (5,801 ) 11,062 (13,247 )
 
Foreign exchange gain 2,866 899 2,363 3,508 4,043
Amortization of debt issue costs (51 ) (51 ) (50 ) (204 ) (80 )
Amortization of discount on long-term obligation (350 ) - - (350 ) -
Interest income, net 2 198 83 323 907
Gain on investment securities and other investments   68     12     103     155     1,879  
Income (loss) before provision for income taxes 7,337 8,560 (3,302 ) 14,494 (6,498 )
Provision for income taxes   (5,007 )   (3,087 )   (12,377 )   (14,412 )   (25,756 )
Net income (loss) $ 2,330   $ 5,473   $ (15,679 ) $ 82   $ (32,254 )
 
Net income (loss) per common share - basic and diluted $ 0.01 $ 0.03 $ (0.08 ) $ 0.00 $ (0.16 )
 
Shares used in per share calculation - basic 198,625 197,613 201,615 196,885 203,882
Shares used in per share calculation - diluted 201,935 200,744 201,615 200,145 203,882
 

As a supplement to the Company's condensed consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), the Company provides additional non-GAAP measures for cost of revenues, gross profit, gross profit percentage, research and development expense, selling, general and administrative expense, amortization of purchased intangible assets, other income (expense), (provision for) recovery of income taxes, operating expenses, operating income (loss), operating margin percentage, net income (loss), and basic and diluted net income (loss) per share.

A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The Company believes that the additional non-GAAP measures are useful to investors for the purpose of financial analysis. Management uses these measures internally to evaluate the Company's in-period operating performance before gains, losses and other charges that are considered by management to be outside of the Company's core operating results. In addition, the measures are used for planning and forecasting of the Company's future periods. However, non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.

PMC-Sierra, Inc.
Adjustments to GAAP Cost of Revenues, Gross Profit, Gross Profit Percentage, Research and Development Expense,
Selling, General and Administrative Expense, Amortization of Purchased Intangible Assets,
Other Income, Provision for Income Taxes, Operating Expenses, Operating Income (Loss),
Net Income (Loss), and Basic and Diluted Net Income (Loss) Per Share
(in thousands, except for per share amounts)
(unaudited)
       
Three Months Ended Twelve Months Ended
December 27, September 27, December 28, December 27, December 28,
 

2014 (1)

 

 

2014 (2)

 

 

2013 (3)

 

 

2014 (4)

 

 

2013 (5)

 

                       
 
GAAP cost of revenues $ 40,702 $ 40,306 $ 37,349 $ 155,396 $ 149,213
Stock-based compensation (285 ) (226 ) (256 ) (966 ) (899 )
Acquisition-related costs - - (5 ) - (800 )
Termination and separation (costs) recoveries - - (171 ) 9 (171 )
Reversal of accruals   -     -     -     -     2,300  
Non-GAAP cost of revenues $ 40,417   $ 40,080   $ 36,917   $ 154,439   $ 149,643  
 
GAAP gross profit $ 96,149 $ 95,156 $ 89,523 $ 370,207 $ 358,815
Stock-based compensation 285 226 256 966 899
Acquisition-related costs - - 5 - 800
Termination and separation costs (recoveries) - - 171 (9 ) 171
Reversal of accruals   -     -     -     -     (2,300 )
Non-GAAP gross profit $ 96,434   $ 95,382   $ 89,955   $ 371,164   $ 358,385  
 
Non-GAAP gross profit % 70 % 70 % 71 % 71 % 71 %
 
GAAP research and development expense $ 50,942 $ 48,441 $ 54,009 $ 198,919 $ 211,047
Stock-based compensation (2,880 ) (1,990 ) (2,854 ) (9,420 ) (11,095 )
Acquisition-related costs (423 ) (356 ) (1,071 ) (2,373 ) (2,812 )
Termination and separation recoveries (costs) 8 28 (2,690 ) (248 ) (4,138 )
Reversal of accruals 342 - - 342 2,890
Lease exit recoveries 29 - - 29 -
Asset impairment   -     -     (508 )   -     (508 )
Non-GAAP research and development expense $ 48,018   $ 46,123   $ 46,886   $ 187,249   $ 195,384  
 
GAAP selling, general and administrative expense $ 29,411 $ 29,265 $ 27,768 $ 117,007 $ 112,770
Stock-based compensation (3,682 ) (3,012 ) (3,694 ) (12,795 ) (14,271 )
Acquisition-related costs (261 ) (669 ) (39 ) (994 ) (1,122 )
Lease exit costs (5 ) (31 ) (48 ) (182 ) (48 )
Termination and separation (costs) recoveries (645 ) 254 (1,282 ) (1,689 ) (1,784 )
Reversal of accruals - - 1,300 - 1,300
Asset impairment - - (639 ) (477 ) (2,214 )
Other nonrecurring expenses   -     -     -     (58 )   -  
Non-GAAP selling, general and administrative expense $ 24,818   $ 25,807   $ 23,366   $ 100,812   $ 94,631  
 
GAAP amortization of purchased intangible assets $ 10,994 $ 9,948 $ 13,547 $ 43,219 $ 48,245
Amortization of purchased intangible assets   (10,994 )   (9,948 )   (13,547 )   (43,219 )   (48,245 )
Non-GAAP amortization of purchased intangible assets $ -   $ -   $ -   $ -   $ -  
 
GAAP other income $ 2,535 $ 1,058 $ 2,499 $ 3,432 $ 6,749
Foreign exchange gain on foreign tax liabilities (2,665 ) (1,081 ) (2,564 ) (3,649 ) (4,697 )
Gain on disposal of investments (26 ) - - (26 ) (1,762 )
Amortization of discount on long-term obligations   350     -     -     350     -  
Non-GAAP other income (expense) $ 194   $ (23 ) $ (65 ) $ 107   $ 290  
 
GAAP provision for income taxes $ 5,007 $ 3,087 $ 12,377 $ 14,412 $ 25,756
Provision for income tax matters   (3,900 )   (2,178 )   (11,760 )   (10,739 )   (25,396 )
Non-GAAP provision for income taxes $ 1,107   $ 909   $ 617   $ 3,673   $ 360  
 
GAAP operating expenses $ 91,347 $ 87,654 $ 95,324 $ 359,145 $ 372,062
Stock-based compensation (6,562 ) (5,002 ) (6,548 ) (22,215 ) (25,366 )
Acquisition-related costs (684 ) (1,025 ) (1,110 ) (3,367 ) (3,934 )
Asset impairment - - (1,147 ) (477 ) (2,722 )
Lease exit recoveries (costs) 24 (31 ) (48 ) (153 ) (48 )
Termination and separation (costs) recoveries (637 ) 282 (3,972 ) (1,937 ) (5,922 )
Reversal of accruals 342 - 1,300 342 4,190
Amortization of purchased intangible assets (10,994 ) (9,948 ) (13,547 ) (43,219 ) (48,245 )
Other nonrecurring expenses   -     -     -     (58 )   -  
Non-GAAP operating expenses $ 72,836   $ 71,930   $ 70,252   $ 288,061   $ 290,015  
 
GAAP operating income (loss) $ 4,802 $ 7,502 $ (5,801 ) $ 11,062 $ (13,247 )
Stock-based compensation 6,847 5,228 6,804 23,181 26,265
Acquisition-related costs 684 1,025 1,115 3,367 4,734
Asset impairment - - 1,147 477 2,722
Reversal of accruals (342 ) - (1,300 ) (342 ) (6,490 )
Lease exit (recoveries) costs (24 ) 31 48 153 48
Termination and separation costs (recoveries) 637 (282 ) 4,143 1,928 6,093
Amortization of purchased intangible assets 10,994 9,948 13,547 43,219 48,245
Other nonrecurring expenses   -     -     -     58     -  
Non-GAAP operating income $ 23,598   $ 23,452   $ 19,703   $ 83,103   $ 68,370  
 
Non-GAAP operating margin 17 % 17 % 16 % 16 % 13 %
 
 
Three Months Ended Twelve Months Ended
December 27, September 27, December 28, December 27, December 28,
     

2014 (1)

 

 

2014 (2)

 

 

2013 (3)

 

 

2014 (4)

 

 

2013 (5)

 

 
GAAP net income (loss) $ 2,330 $ 5,473 $ (15,679 ) $ 82 $ (32,254 )
Stock-based compensation 6,847 5,228 6,804 23,181 26,265
Acquisition-related costs 684 1,025 1,115 3,367 4,734
Termination and separation costs (recoveries) 637 (282 ) 4,143 1,928 6,093
Asset impairment - - 1,147 477 2,722
Reversal of accruals (342 ) - (1,300 ) (342 ) (6,490 )
Lease exit (recoveries) costs (24 ) 31 48 153 48
Amortization of purchased intangible assets 10,994 9,948 13,547 43,219 48,245
Foreign exchange gain on foreign tax liabilities (2,665 ) (1,081 ) (2,564 ) (3,649 ) (4,697 )
Gain on disposal of investments (26 ) - - (26 ) (1,762 )
Amortization of discount on long-term obligation 350 - - 350 -
Other nonrecurring expenses - - - 58 -
Provision for income tax matters   3,900     2,178     11,760     10,739     25,396  
Non-GAAP net income $ 22,685   $ 22,520   $ 19,021   $ 79,537   $ 68,300  
 
Non-GAAP net income per share - basic $ 0.11 $ 0.11 $ 0.09 $ 0.40 $ 0.33
Non-GAAP net income per share - diluted $ 0.11 $ 0.11 $ 0.09 $ 0.40 $ 0.33
 
 
Shares used to calculate non-GAAP net income per share - basic 198,625 197,613 201,615 196,885 203,882
Shares used to calculate non-GAAP net income per share - diluted 201,935 200,744 203,047 200,145 205,841
 

(1) $6.8 million stock-based compensation expense; $0.7 million acquisition-related costs; $0.6 million termination and separation costs; $0.3 million reversal of accrual; $0.1 million lease exit recoveries; $11 million amortization of purchased intangible assets; $2.7 million foreign exchange gain on foreign tax liabilities; $0.1 million gain on disposal of investment; $0.3 million amortization of discount on long-term obligations; and $3.9 million provision for income taxes which includes $4 million arrears interest relating to unrecognized tax benefits, $2.7 million income tax provision related to prepaid tax amortization, and $5.2 million income tax provision related to tax deductible goodwill, and $8 million income tax recovery related to change in valuation allowance and other deductible items above.

(2) $5.2 million stock-based compensation expense; $1 million acquisition-related costs; $0.3 million recovery of termination and separation costs; $9.9 million amortization of purchased intangible assets; $1.1 million foreign exchange gain on foreign tax liabilities; $0.1 million lease exit costs; and $2.2 million provision for income taxes which includes $0.9 million income tax provision related to unrecognized tax benefits, $1.1 million income tax provision related to prepaid tax amortization, and $0.2 million income tax provision from adjustments related to prior periods.

(3) $6.8 million stock-based compensation expense; $1.1 million acquisition-related costs; $4.1 million termination and separation costs; $1.2 million asset impairment; $1.3 million reversal of accrual; $0.1 million lease exit costs; $13.5 million amortization of purchased intangible assets; $2.6 million foreign exchange gain on foreign tax liabilities; and $11.8 million provision for income taxes which includes $1.9 million income tax recovery relating to intercompany transactions, $2.5 million income tax recovery for adjustments relating to prior periods and changes in estimates, $0.9 million arrears interest relating to unrecognized tax benefits, $3.3 million provision related to non-deductible intangible asset amortization, $0.7 million income tax provision relating to foreign exchange translation of a foreign subsidiary, $10.4 million deferred tax effect related to changes in assessments for certain income tax credits, and $0.9 million income tax provision related to tax deductible goodwill and other items above.

(4) $23.2 million stock-based compensation expense; $3.4 million acquisition-related costs; $1.9 million termination and separation costs; $0.5 million asset impairment; $0.3 million reversal of accruals; $0.2 million lease exit costs; $43.2 million amortization of purchased intangible assets; $3.6 million foreign exchange gain on foreign tax liabilities; $0.1 million gain on disposal of investment; $0.3 million amortization of discount on long-term obligations; $0.1 million other nonrecurring expenses; and $10.7 million provision for income taxes which includes $6.5 million arrears interest relating to unrecognized tax benefits, $5.7 million income tax provision related to prepaid tax amortization, $6.5 million income tax provision related to tax deductible goodwill, and $8 million income tax recovery related to change in valuation allowance and other deductible items above.

(5) $26.3 million stock-based compensation expense; $4.8 million acquisition-related costs and deferred tax effects; $6.1 million termination and separation costs; $2.8 million asset impairment; $6.5 million reversal of accruals; $0.1 million lease exit costs; $48.2 million amortization of purchased intangible assets; $4.7 million foreign exchange gain on foreign tax liabilities; $1.8 million gain on disposal of investment and $25.4 million provision for income taxes which includes $0.2 million income tax provision relating to intercompany transactions, $2.6 million arrears interest relating to unrecognized tax benefits, $11.7 million provision related to non-deductible intangible asset amortization and impairment, $2 million income tax recovery for adjustments relating to prior periods and changes in estimates, $1.2 million income tax provision relating to foreign exchange translation of a foreign subsidiary, $10.4 million deferred tax effect related to change in assessment for certain income tax credit, and $1.3 million income tax provision related to tax deductible goodwill and other items above.

PMC-Sierra, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
   
December 27, December 28,
  2014     2013  
 
ASSETS:
Current assets:
Cash and cash equivalents $ 112,570 $ 100,038
Short-term investments   45,885     10,894  
Cash, cash equivalents and short-term investments 158,455 110,932
Accounts receivable, net 55,414 56,112
Inventories, net 37,949 31,074
Prepaid expenses and other current assets 16,473 19,855
Income tax receivable 1,968 2,640
Prepaid tax expense 51 5,695

Deferred tax assets(1)

  4,079     43,131  
Total current assets 274,389 269,439
 
Investment securities 107,509 103,391
Investments and other assets 7,683 10,750
Prepaid tax expense 42 93
Property and equipment, net 37,311 39,149
Goodwill and other intangible assets, net 426,919 425,823
Deferred tax assets (1) 13,412 1,306
Long-term income tax receivable   457     -  
$ 867,722   $ 849,951  
 
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 23,360 $ 23,173
Accrued liabilities 74,135 64,257
Credit facility - 30,000
Income taxes payable 1,062 632
Liability for unrecognized tax benefit (1) 16,076 54,127
Current deferred income taxes 7,644 71
Deferred income   4,530     7,481  
Total current liabilities 126,807 179,741
 
Long-term obligations 36,305 11,108
Deferred income taxes 52,130 43,143

Liability for unrecognized tax benefit (1)

25,244 27,947
 
PMC special shares convertible into 278 (2013 - 1,019) 745 1,188
shares of common stock
 
Stockholders' equity:
Common stock and additional paid in capital 1,595,809 1,550,385
Accumulated other comprehensive loss (2,355 ) (526 )
Accumulated deficit   (966,963 )   (963,035 )
Total stockholders' equity   626,491     586,824  
$ 867,722   $ 849,951  
 
 
(1) Effective from the beginning of the first quarter of 2014, the Company adopted Financial Accounting Standards Board's Accounting Standards Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax Credit Carryforward Exists.” Approximately $44 million of deferred tax assets of a foreign subsidiary were derecognized along with the related liability for unrecognized tax benefits as a result of this presentation adoption, with no impact to the Condensed Consolidated Statements of Operations.
 
PMC-Sierra, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
   

 

Twelve Months Ended

December 27, December 28,
  2014     2013  
Cash flows from operating activities:
Net loss $ 82 $ (32,254 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization 65,477 71,432
Stock-based compensation 23,181 26,264
Unrealized foreign exchange gain, net (5,846 ) (2,251 )
Net amortization of premiums and accrued interest of investments 718 1,580
Asset impairments 770 2,966
Gain on investment securities and other investments (131 ) (1,796 )
Loss on disposal of property and equipment 4 6
Amortization of discount on long-term obligations 350 -
Excess tax benefits from stock option transactions - (842 )
 
Changes in operating assets and liabilities:
Accounts receivable, net 598 6,330
Inventories, net (6,875 ) (3,625 )
Prepaid expenses and other current assets 1,349 1,315
Accounts payable and accrued liabilities 878 (5,551 )
Deferred income taxes and income taxes receivables/payables 12,970 15,900
Deferred income   (2,951 )   (632 )
Net cash provided by operating activities   90,574     78,842  
 
Cash flows from investing activities:
Business acquisition (10,000 ) (96,098 )
Investment in long term deposits - (1,127 )
Purchases of property and equipment (13,945 ) (16,851 )
Purchases of intangible assets (1,437 ) (3,979 )
Redemption of short-term investments 5,670 8,466
Disposals of investment securities and other investments 61,695 162,773
Purchases of investment securities and other investments   (106,076 )   (179,837 )
Net cash used in investing activities   (64,093 )   (126,653 )
 
Cash flows from financing activities:
Payment of debt issuance costs - (928 )
Proceeds from credit facility 30,000 30,000
Repayment of credit facility (60,000 ) -
Proceeds from issuance of common stock 29,175 25,247
Repurchases of common stock (11,496 ) (76,335 )
Excess tax benefits from stock option transactions   -     842  
Net cash used in financing activities   (12,321 )   (21,174 )
 
Effect of exchange rate changes on cash and cash equivalents (1,628 ) (947 )
Net increase (decrease) in cash and cash equivalents 12,532 (69,932 )
Cash and cash equivalents, beginning of the period   100,038     169,970  
Cash and cash equivalents, end of the period $ 112,570   $ 100,038  


Contact:

PMC-Sierra, Inc.
Joel Achramowicz, 1-408-239-8630
Director, Investor Relations
Email Contact
or
Kim Mason, 1-604-415-6239
Manager, Corporate Communications
Email Contact