Net revenues in the second quarter were $30.8 million, flat from the $30.8 million reported in the first quarter and up 17.4 percent from the $26.3 million reported in the comparable period last year. Net income in the quarter was $2.3 million, or $0.08 per diluted share, compared with net income of $1.6 million, or $0.06 per diluted share in the first quarter and net income of $1.4 million, or $0.05 per diluted share, in the same period a year ago. Net revenues for the six-month period ending Dec. 30, 2006 were $61.7 million, up 26.5 percent from the $48.7 million, in the prior year comparable period. Net income for the six-month period ending Dec. 30, 2006 was $3.9 million, or $0.15 per diluted share, compared with net income of $2.0 million, or $0.08 per diluted share, in the same period a year ago.
"We are very pleased to have reported a strong sequential increase in both operating and net profit this quarter," said Alex Hui, president and chief executive officer. "Pericom achieved organic revenue growth of 17.4 percent in comparison with the same quarter of last year, through the increasing adoption of our high-speed serial connectivity solutions for USB, Gigabit Ethernet, wireless LAN, HDMI and PCI-Express applications. We expect to sustain this growth momentum in calendar 2007 by targeting the fast growing server, notebook, digital video and mobile terminals markets with our high-speed serial connectivity solutions," he said.
Q2 NEW PRODUCTS
Pericom expanded its PCI Express offerings with PI7C9X130 PCIe to PCI-X Bridge, the industry's only PCIe 1.1 compliant bridge to receive PCISIG certification to date. Target applications include servers, HBA and NIC cards, networking, embedded and storage applications.
The company launched eight new HDMI switches to further expand its solution for HDMI connectivity in digital video applications. These HDMI 1.3 compliant products support multiple HDMI inputs in digital video displays with 12 bit deep color capability. Target applications include digital TVs, LCD monitors, set-top boxes, game consoles, switch box and notebook PCs.
The company released two new VCXO devices with PLL clock multipliers that support high frequency applications in digital set-top box, home media center and digital TVs, further enhancing Pericom's product positioning in digital video platforms.
Pericom also released three new clock buffers that offer critical reference clock distribution solution in the high growth Gigabit Ethernet switching applications.
Fiscal Q3 2007 OUTLOOK
The following statements are based on current expectations. These statements are forward looking, and actual results may differ materially.
-- The company continues to be in a high turns environment and
therefore revenue visibility remains limited. Depending upon the
strength of turns orders, revenues in the third fiscal quarter are
expected to be in the range of $29.5 million to $31.0 million. Gross
margins are expected to be in the 35 to 36 percent range. Margins
are influenced by the product mix of turns business and sales, if
any, of previously written down inventory.
-- Operating expenses are expected to be in the range of $9.3 to $9.8
million.
-- Other income is expected to be approximately $1.1 million,
consisting primarily of interest income.
-- Equity in net income (loss) of investees is expected to be
approximately $100,000.
Pericom will adhere to Regulation Fair Disclosure. The company will provide its investors and analysts with guidance in the areas of total revenues, gross margin, operating expenses and other income each quarter in our earnings releases and in our conference calls.
CONFERENCE CALL
The press release will be followed by a conference call beginning at 1:30 p.m. Pacific time. To listen to the call, dial (210) 234-0000. The passcode is Pericom.
A taped replay of the conference call will be made available for one week. To listen to the replay, dial (203) 369-0175. The Pericom financial results conference call will be available via a live webcast on the investor relations section of the web site at http://www.pericom.com/investor . Access the web site 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the web site for 12 months.
About Pericom
Pericom Semiconductor Corporation (NASDAQ: PSEM) offers customers worldwide the industry's most complete silicon and quartz-based solutions for the Computing, Communications and Consumer market segments. Our broad portfolio of leading-edge analog, digital, and mixed-signal integrated circuits and SaRonix frequency control products are essential in the timing, transferring, routing, and translating of high-speed signals as required by today's ever-increasing speed and bandwidth demanding applications. Company headquarters are in San Jose, Calif., with design centers and sales offices located globally. 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 captions 'Fiscal Q3 2007 Outlook' and statements regarding sustaining our growth momentum. 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, difficulties in integrating eCERA with our business, 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 July 1, 2006, our quarterly report on Form 10-Q for the quarter ended September 30, 2006 and, in particular, the risk factors sections of those filings.
Pericom Semiconductor Corporation
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
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