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 statements by our CEO concerning future business and revenue growth and margin improvement and the statements under the captions "Fiscal Q2 2015 Outlook", which regard the anticipated revenues, gross margin, operating expenses, other income, and effective tax rate in the second fiscal quarter of 2015. 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 28, 2014, and in particular, the risk factors section contained in that report.
Pericom Semiconductor Corporation
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit
(In thousands, except per share data)
(unaudited)
Three Months Ended
-------------------------------------
September 27, June 28, September 28,
2014 2014 2013
------------- -------- -------------
Net revenues $ 33,259 $ 32,739 $ 32,608
Cost of revenues 19,179 19,188 19,800
------------- -------- -------------
Gross profit 14,080 13,551 12,808
Operating expenses:
Research and development 4,588 4,782 5,045
Selling, general and administrative 7,300 7,257 7,687
Write off of government subsidy
receivable - 843 -
------------- -------- -------------
Total operating expenses 11,888 12,882 12,732
------------- -------- -------------
Income from operations 2,192 669 76
Interest and other income, net 691 742 682
Foreign exchange gain (loss) 583 (286) (196)
------------- -------- -------------
Income before income taxes 3,466 1,125 562
Income tax expense 1,010 291 231
------------- -------- -------------
Net income from consolidated
companies 2,456 834 331
Equity in net income of
unconsolidated affiliates 39 50 43
------------- -------- -------------
Net income $ 2,495 $ 884 $ 374
============= ======== =============
Basic income per share $ 0.11 $ 0.04 $ 0.02
============= ======== =============
Diluted income per share $ 0.11 $ 0.04 $ 0.02
============= ======== =============
Shares used in computing basic income
per share 21,936 22,123 22,794
============= ======== =============
Shares used in computing diluted
income per share 22,262 22,338 22,951
============= ======== =============
Pericom Semiconductor Corporation
Supplemental Information
(In thousands)
(unaudited)
Three Months Ended
------------------------------------
September 27, June 28, September 28,
2014 2014 2013
------------- -------- -------------
Share-based compensation
Cost of revenues $ 33 $ 37 $ 36
Research and development 218 229 297
Selling, general and administrative 458 329 396
------------- -------- -------------
Share-based compensation expense $ 709 $ 595 $ 729
Amortization of intangible assets
Cost of revenues $ 478 $ 478 $ 488
Research and development - - 50
Selling, general and administrative 247 247 247
------------- -------- -------------
Amortization of intangible assets $ 725 $ 725 $ 785
Pericom Semiconductor Corporation
Reconciliation of GAAP Net Income to Non-GAAP Net Income
(In thousands)
(unaudited)
Three Months Ended
--------------------------------------
September 27, June 28, September 28,
2014 2014 2013
------------- -------- -------------
GAAP net income $ 2,495 $ 884 $ 374
Reconciling items:
Share-based compensation expense 709 595 729
Amortization of intangible assets 725 725 785
Fair value adjustment to
depreciation expense on acquired
fixed assets 51 51 51
Restructuring charge 112 44 -
Write off of government subsidy
receivable - 843 -
Tax on intercompany transaction - - 15
Lease restructuring and moving
costs - - 522
Tax effect of adjustments (377) (321) (543)
------------- -------- -------------
Total reconciling items 1,220 1,937 1,559
------------- -------- -------------
Non-GAAP net income $ 3,715 $ 2,821 $ 1,933
============= ======== =============
Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS
(unaudited)
Diluted net income per share:
GAAP diluted income per share $ 0.11 $ 0.04 $ 0.02
Adjustments:
Share-based compensation expense 0.03 0.03 0.03
Amortization of intangible assets 0.03 0.03 0.03
Fair value adjustment to
depreciation expense on acquired
fixed assets - - -
Restructuring charge 0.01 - -
Write off of government subsidy
receivable - 0.04 -
Tax on intercompany transaction - - -
Lease restructuring and moving
costs - - 0.02
Tax effect of adjustments (0.02) (0.02) (0.02)
------------- -------- -------------
Total adjustments 0.05 0.08 0.06
------------- -------- -------------
Non-GAAP diluted income per share $ 0.16 $ 0.12 $ 0.08
============= ======== =============
Shares used in diluted net income
per share calculation:
GAAP 22,262 22,338 22,951
Exclude the benefit of share-
based compensation expense (1) 413 486 390
------------- -------- -------------
Non-GAAP 22,675 22,824 23,341
============= ======== =============
(1) For purposes of calculating non-GAAP diluted net income per share, the
GAAP diluted weighted average sharesoutstanding is adjusted to exclude the
benefits of unamortized stock compensation costs that are treated as
proceedsassumed to be used to repurchase shares under the GAAP treasury
stock method.
Pericom Semiconductor Corporation
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit
(In thousands)
(unaudited)
Three Months Ended
--------------------------------------
September 27, June 28, September 28,
2014 2014 2013
------------- -------- -------------
GAAP gross profit $ 14,080 $ 13,551 $ 12,808
- % of revenues 42.3% 41.4% 39.3%
Reconciling items:
Share-based compensation 33 37 36
Amortization of intangible assets 478 478 488
Fair value adjustment to
depreciation expense on acquired
fixed assets 10 10 10
Restructuring charge 84 - -
------------- -------- -------------
Total reconciling items 605 525 534
------------- -------- -------------
Non-GAAP gross profit $ 14,685 $ 14,076 $ 13,342
============= ======== =============
- % of revenues 44.2% 43.0% 40.9%
Reconciliation of GAAP R&D Expenses to Non-GAAP R&D Expenses
(unaudited)
GAAP research and development
expenses $ 4,588 $ 4,782 $ 5,045
- % of revenues 13.8% 14.6% 15.5%
Reconciling items:
Share-based compensation (218) (229) (297)
Amortization of intangible assets - - (50)
Fair value adjustment to
depreciation expense on acquired
fixed assets (10) (10) (10)
Restructuring charge (28) (28) -
------------- -------- -------------
Total reconciling items (256) (267) (357)
------------- -------- -------------
Non-GAAP research and development
expenses $ 4,332 $ 4,515 $ 4,688
============= ======== =============
- % of revenues 13.0% 13.8% 14.4%
Reconciliation of GAAP SG&A Expenses to Non-GAAP SG&A Expenses
(unaudited)
GAAP selling, general and
administrative expenses $ 7,300 $ 7,257 $ 7,687
- % of revenues 21.9% 22.2% 23.6%
Reconciling items:
Share-based compensation (458) (329) (396)
Amortization of intangible assets (247) (247) (247)
Fair value adjustment to
depreciation expense on acquired
fixed assets (31) (31) (31)
Restructuring cost - (16) -
Lease restructuring and moving
costs - - (522)
Total reconciling items (736) (623) (1,196)
------------- -------- -------------
Non-GAAP selling, general and
administrative expenses $ 6,564 $ 6,634 $ 6,491
============= ======== =============
- % of revenues 19.7% 20.3% 19.9%
Pericom Semiconductor Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
As of
September 27, As of
2014 June 28, 2014
Assets
Current assets:
Cash and cash equivalents $ 27,587 $ 33,020
Short-term investments 96,248 86,104
Accounts receivable - trade 24,863 24,036
Inventories 11,918 12,288
Prepaid expenses and other current assets 3,935 5,336
Deferred income taxes 795 726
------------- -------------
Total current assets 165,346 161,510
Property, plant and equipment-net 58,083 58,537
Investments in unconsolidated affiliates 2,495 2,445
Deferred income taxes non-current 2,576 2,460
Intangible assets 6,285 7,009
Other assets 8,062 8,118
------------- -------------
Total assets $ 242,847 $ 240,079
============= =============
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 9,697 $ 8,927
Accrued liabilities 10,120 9,934
------------- -------------
Total current liabilities 19,817 18,861
Industrial development subsidy 6,133 6,354
Deferred tax liabilities 5,577 5,460
Other long-term liabilities 1,929 1,912
------------- -------------
Total liabilities 33,456 32,587
Shareholders' equity:
Common stock and paid in capital 113,039 113,118
Retained earnings and other comprehensive
income 96,352 94,374
------------- -------------
Total shareholders' equity 209,391 207,492
------------- -------------
Total liabilities and shareholders' equity $ 242,847 $ 240,079
============= =============
