Pericom Semiconductor Reports Third Quarter Revenues and Profits

Apr 24, 2001, 01:00 ET from Pericom Semiconductor Corporation

    SAN JOSE, Calif., April 24 /PRNewswire Interactive News Release/ --
 Pericom Semiconductor Corporation (Nasdaq: PSEM) today announced results for
 its fiscal third quarter ended March 31, 2001.
     Revenues for the third quarter were $25,908,000, up 12% from the
 comparable period last year, but were down 27% sequentially.  For the nine
 months ended March 31, 2001, revenues were $94,987,000, up 57% from the
 comparable period last year.  Net income for the quarter was $4,258,000, or
 $0.16 diluted earnings per share, an increase of 31% over net income of
 $3,251,000, or $0.14 diluted earnings per share, in the third quarter of
 fiscal 2000. Net income was sequentially down 36% from the second quarter.
 For the nine months ended March 31, 2001, net income was $16,912,000, or
 $0.62 diluted earnings per share, up 112% from $7,995,000, or $0.36 diluted
 earnings per share in the comparable period last year.  Earnings per share for
 prior quarters have been adjusted to account for the two-for-one stock split
 effective for shareholders of record on August 24, 2000.
     Alex Hui, President and Chief Executive Officer of Pericom said, "We are
 pleased to report our 33rd consecutive quarter of profitability. These results
 were accomplished in a very difficult market environment. In spite of the
 industry slow-down, our new product introduction rate and our design wins
 remained strong.  During the quarter the Company introduced 17 new products
 targeting the high-speed communications, networking, server, and notebook
 computer markets.  All of the new products introduced are proprietary.
 Products introduced included 10 new functions added to the high performance
 2.5 volt logic portfolio giving Pericom the broadest AVC family available. In
 addition, the Company added five new low-voltage level translator products to
 the SiliconSwitch family to provide 3.3V to 2.5V and 2.5V to 1.8V level
 translation and further extend its industry leading offering of Bus Switch
 products.
     We have continued to experience order cancellations and rescheduling as
 end-market demand remains unpredictable. The overbuying in earlier quarters
 has resulted in a short-term, but severe, correction in this demand.  We will
 focus on providing leading edge interface solutions to networking,
 telecommunication, mobile computing and server markets to support our goal of
 sustainable, profitable growth.  We expect sequential quarter to quarter
 growth to resume later this year. It is our intent to gain market share and
 our longer-term outlook remains positive."
 
     JUNE 2001 QUARTER OUTLOOK
     -- For the June quarter we project revenue could be reduced by
        approximately 20-25% from the quarter just ended.  Visibility continues
        to be limited.
     -- Gross margins are expected to be down slightly as they are affected by
        lower revenue and changes in product mix.
     -- Operating expenses will continue to be tightly controlled but our
        operating margin will be less than the quarter just ended.
     -- Other income, net will be approximately $2.1M.
     -- Our tax rate will be approximately 38%.
     -- We expect to have approximately 27.1M fully diluted shares.
 
     Pericom will adhere to the newly adopted Regulation Fair Disclosure.  The
 company will provide its investors and analysts with guidance in the areas of
 total revenues, gross margin, operating margin, other income/expense as well
 as the estimated share count each quarter in our earnings releases and in our
 conference calls.  We will not provide further guidance or updates during the
 quarter unless we do so via a press release.
     NOTE:  Our Third Quarter Results telephone conference call will begin at
 1:45 p.m. PDT today.  The conference call may be accessed by calling
 800-633-8728 and referencing access code 18576267.  A replay of the Third
 Quarter Results conference call will be available for 7 days commencing from
 3:45 p.m. PDT on Tuesday, April 24, 2001.  Phone number is 800-633-8284
 (domestic) or 858-812-6440 (international) and access code is 18576267. Please
 note also that the conference call will be simultaneously Webcast live at:
 www.pericom.com/investors  or www.streetfusion.com/  followed by on-demand
 Webcasts beginning at 4:00 p.m. Pacific Time on April 24, 2001 through
 May 24, 2001 on either site (Webcasts require Windows MediaPlayer).
     Pericom Semiconductor Corporation is a leading provider of high-speed
 interface IC solutions used for the transfer, routing and timing of digital
 and analog signals within and between computer, networking, datacom and
 telecom systems.
     The Company offers more than 500 products in its leading edge
 SiliconInterface, SiliconSwitch, SiliconClock and SiliconConnect families.
 Company headquarters are in San Jose, California.  Telephone:  408-435-0800.
 Web Site:  http://www.pericom.com
     This press release contains forward-looking statements as defined under
 The Securities Litigation Reform Act of 1995.  Forward-looking statements in
 this release include the statements under the caption 'June 2001 Quarter
 Outlook', statements regarding the Company's belief that this is a short-term
 correction in demand, our ability to provide interface solutions that will
 support our goal of sustainable, profitable growth, our belief that we can
 gain market share and that the longer-term outlook is positive, and that we
 will resume quarter to quarter sequential growth later this year. 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
 technological and market changes; dependence on new product introductions and
 market acceptance of new products; competition; international business and
 currency fluctuations; reliance on independent wafer fabricators, assembly
 subcontractors and distributors; and the risk that any slowdown in the growth
 of the Internet may affect demand for our products.  Although Pericom believes
 that its expectations are based on reasonable assumptions, it can give no
 assurance that anticipated results will occur.  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 all filings made by us with the Securities
 and Exchange Commission, particularly the risk factors sections of such
 filings.
 
                       Pericom Semiconductor Corporation
                              Statements of Income
                     (In thousands, except per share data)
                                  (unaudited)
 
                                    Three Months Ended    Nine Months Ended
                                  Mar. 31,    Mar. 31,    Mar. 31,  Mar. 31,
                                      2001        2000        2001      2000
 
 
     Net revenues                  $25,908     $23,033     $94,987   $60,667
 
     Cost of revenues               14,564      13,294      53,864    35,108
 
       Gross profit                 11,344       9,739      41,123    25,559
 
     Operating expenses:
 
       Research and development      2,885       2,133       8,226     5,626
 
       Selling, general
        and administrative           3,788       3,230      12,005     8,502
 
           Total                     6,673       5,363      20,231    14,128
 
     Income from operations          4,671       4,376      20,892    11,431
 
     Other income (expense), net     2,197         704       6,386     1,284
 
     Income before income taxes      6,868       5,080      27,278    12,715
 
     Provision for income taxes      2,610       1,829      10,366     4,720
 
     Net income                     $4,258      $3,251     $16,912    $7,995
 
     Basic earnings per share        $0.17       $0.16       $0.68     $0.40
 
     Diluted earnings per share      $0.16       $0.14       $0.62     $0.36
 
     Shares used in computing
      basic earnings per share      24,984      20,570      24,851    19,741
 
     Shares used in computing
      diluted earnings per share    27,111      23,450      27,286    22,382
 
 
                       Pericom Semiconductor Corporation
                                 Balance Sheets
                                 (In thousands)
 
 
                                                    As of             As of
                                              March 31, 2001     June 30, 2000
                                                 (unaudited)
                        Assets
 
     Current Assets:
 
           Cash, cash equivalents,
            and short-term investments           $153,925           $140,664
 
           Accounts receivable                     12,934             12,389
           Inventories                             15,934             13,166
           Prepaid expenses and other
            current assets                            267                209
           Deferred income taxes                    1,099              1,099
               Total current assets               184,159            167,527
 
     Property and equipment, net                   10,152              8,246
     Investments                                    4,152              4,287
     Other assets                                     260                306
               Total assets                      $198,723           $180,366
 
 
               Liabilities and Shareholders' Equity
 
     Current liabilities:
 
           Accounts payable                        $7,341             $8,983
           Accrued liabilities                      4,267              3,561
           Income taxes payable                     2,024              1,710
               Total current liabilities           13,632             14,254
 
     Deferred income taxes                          1,340              1,340
               Total liabilities                   14,972             15,594
 
     Shareholders' equity:
           Common stock                           132,937            130,835
           Retained earnings and other             50,814             33,937
               Total shareholders' equity         183,751            164,772
 
               Total liabilities and
                shareholders' equity             $198,723           $180,366
 
 
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SOURCE Pericom Semiconductor Corporation
    SAN JOSE, Calif., April 24 /PRNewswire Interactive News Release/ --
 Pericom Semiconductor Corporation (Nasdaq: PSEM) today announced results for
 its fiscal third quarter ended March 31, 2001.
     Revenues for the third quarter were $25,908,000, up 12% from the
 comparable period last year, but were down 27% sequentially.  For the nine
 months ended March 31, 2001, revenues were $94,987,000, up 57% from the
 comparable period last year.  Net income for the quarter was $4,258,000, or
 $0.16 diluted earnings per share, an increase of 31% over net income of
 $3,251,000, or $0.14 diluted earnings per share, in the third quarter of
 fiscal 2000. Net income was sequentially down 36% from the second quarter.
 For the nine months ended March 31, 2001, net income was $16,912,000, or
 $0.62 diluted earnings per share, up 112% from $7,995,000, or $0.36 diluted
 earnings per share in the comparable period last year.  Earnings per share for
 prior quarters have been adjusted to account for the two-for-one stock split
 effective for shareholders of record on August 24, 2000.
     Alex Hui, President and Chief Executive Officer of Pericom said, "We are
 pleased to report our 33rd consecutive quarter of profitability. These results
 were accomplished in a very difficult market environment. In spite of the
 industry slow-down, our new product introduction rate and our design wins
 remained strong.  During the quarter the Company introduced 17 new products
 targeting the high-speed communications, networking, server, and notebook
 computer markets.  All of the new products introduced are proprietary.
 Products introduced included 10 new functions added to the high performance
 2.5 volt logic portfolio giving Pericom the broadest AVC family available. In
 addition, the Company added five new low-voltage level translator products to
 the SiliconSwitch family to provide 3.3V to 2.5V and 2.5V to 1.8V level
 translation and further extend its industry leading offering of Bus Switch
 products.
     We have continued to experience order cancellations and rescheduling as
 end-market demand remains unpredictable. The overbuying in earlier quarters
 has resulted in a short-term, but severe, correction in this demand.  We will
 focus on providing leading edge interface solutions to networking,
 telecommunication, mobile computing and server markets to support our goal of
 sustainable, profitable growth.  We expect sequential quarter to quarter
 growth to resume later this year. It is our intent to gain market share and
 our longer-term outlook remains positive."
 
     JUNE 2001 QUARTER OUTLOOK
     -- For the June quarter we project revenue could be reduced by
        approximately 20-25% from the quarter just ended.  Visibility continues
        to be limited.
     -- Gross margins are expected to be down slightly as they are affected by
        lower revenue and changes in product mix.
     -- Operating expenses will continue to be tightly controlled but our
        operating margin will be less than the quarter just ended.
     -- Other income, net will be approximately $2.1M.
     -- Our tax rate will be approximately 38%.
     -- We expect to have approximately 27.1M fully diluted shares.
 
     Pericom will adhere to the newly adopted Regulation Fair Disclosure.  The
 company will provide its investors and analysts with guidance in the areas of
 total revenues, gross margin, operating margin, other income/expense as well
 as the estimated share count each quarter in our earnings releases and in our
 conference calls.  We will not provide further guidance or updates during the
 quarter unless we do so via a press release.
     NOTE:  Our Third Quarter Results telephone conference call will begin at
 1:45 p.m. PDT today.  The conference call may be accessed by calling
 800-633-8728 and referencing access code 18576267.  A replay of the Third
 Quarter Results conference call will be available for 7 days commencing from
 3:45 p.m. PDT on Tuesday, April 24, 2001.  Phone number is 800-633-8284
 (domestic) or 858-812-6440 (international) and access code is 18576267. Please
 note also that the conference call will be simultaneously Webcast live at:
 www.pericom.com/investors  or www.streetfusion.com/  followed by on-demand
 Webcasts beginning at 4:00 p.m. Pacific Time on April 24, 2001 through
 May 24, 2001 on either site (Webcasts require Windows MediaPlayer).
     Pericom Semiconductor Corporation is a leading provider of high-speed
 interface IC solutions used for the transfer, routing and timing of digital
 and analog signals within and between computer, networking, datacom and
 telecom systems.
     The Company offers more than 500 products in its leading edge
 SiliconInterface, SiliconSwitch, SiliconClock and SiliconConnect families.
 Company headquarters are in San Jose, California.  Telephone:  408-435-0800.
 Web Site:  http://www.pericom.com
     This press release contains forward-looking statements as defined under
 The Securities Litigation Reform Act of 1995.  Forward-looking statements in
 this release include the statements under the caption 'June 2001 Quarter
 Outlook', statements regarding the Company's belief that this is a short-term
 correction in demand, our ability to provide interface solutions that will
 support our goal of sustainable, profitable growth, our belief that we can
 gain market share and that the longer-term outlook is positive, and that we
 will resume quarter to quarter sequential growth later this year. 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
 technological and market changes; dependence on new product introductions and
 market acceptance of new products; competition; international business and
 currency fluctuations; reliance on independent wafer fabricators, assembly
 subcontractors and distributors; and the risk that any slowdown in the growth
 of the Internet may affect demand for our products.  Although Pericom believes
 that its expectations are based on reasonable assumptions, it can give no
 assurance that anticipated results will occur.  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 all filings made by us with the Securities
 and Exchange Commission, particularly the risk factors sections of such
 filings.
 
                       Pericom Semiconductor Corporation
                              Statements of Income
                     (In thousands, except per share data)
                                  (unaudited)
 
                                    Three Months Ended    Nine Months Ended
                                  Mar. 31,    Mar. 31,    Mar. 31,  Mar. 31,
                                      2001        2000        2001      2000
 
 
     Net revenues                  $25,908     $23,033     $94,987   $60,667
 
     Cost of revenues               14,564      13,294      53,864    35,108
 
       Gross profit                 11,344       9,739      41,123    25,559
 
     Operating expenses:
 
       Research and development      2,885       2,133       8,226     5,626
 
       Selling, general
        and administrative           3,788       3,230      12,005     8,502
 
           Total                     6,673       5,363      20,231    14,128
 
     Income from operations          4,671       4,376      20,892    11,431
 
     Other income (expense), net     2,197         704       6,386     1,284
 
     Income before income taxes      6,868       5,080      27,278    12,715
 
     Provision for income taxes      2,610       1,829      10,366     4,720
 
     Net income                     $4,258      $3,251     $16,912    $7,995
 
     Basic earnings per share        $0.17       $0.16       $0.68     $0.40
 
     Diluted earnings per share      $0.16       $0.14       $0.62     $0.36
 
     Shares used in computing
      basic earnings per share      24,984      20,570      24,851    19,741
 
     Shares used in computing
      diluted earnings per share    27,111      23,450      27,286    22,382
 
 
                       Pericom Semiconductor Corporation
                                 Balance Sheets
                                 (In thousands)
 
 
                                                    As of             As of
                                              March 31, 2001     June 30, 2000
                                                 (unaudited)
                        Assets
 
     Current Assets:
 
           Cash, cash equivalents,
            and short-term investments           $153,925           $140,664
 
           Accounts receivable                     12,934             12,389
           Inventories                             15,934             13,166
           Prepaid expenses and other
            current assets                            267                209
           Deferred income taxes                    1,099              1,099
               Total current assets               184,159            167,527
 
     Property and equipment, net                   10,152              8,246
     Investments                                    4,152              4,287
     Other assets                                     260                306
               Total assets                      $198,723           $180,366
 
 
               Liabilities and Shareholders' Equity
 
     Current liabilities:
 
           Accounts payable                        $7,341             $8,983
           Accrued liabilities                      4,267              3,561
           Income taxes payable                     2,024              1,710
               Total current liabilities           13,632             14,254
 
     Deferred income taxes                          1,340              1,340
               Total liabilities                   14,972             15,594
 
     Shareholders' equity:
           Common stock                           132,937            130,835
           Retained earnings and other             50,814             33,937
               Total shareholders' equity         183,751            164,772
 
               Total liabilities and
                shareholders' equity             $198,723           $180,366
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X78961812
 
 SOURCE  Pericom Semiconductor Corporation