PMC-Sierra Inc. (NASDAQ: PMCS) is the semiconductor innovator transforming networks that connect, move and store digital content. Building on a track record of technology leadership, we are driving innovation across storage, optical and mobile networks.
PMC® (PMCS) reported adjusted fourth quarter 2012 earnings of 10 cents per share, beating the analysts estimate of 8 cents on higher gross margins and lower-than-expected operating expenses.
Fourth quarter financial highlights:
- Net revenues were $129.4 million, a sequential decrease of 2 percent compared to $131.7 million in the third quarter of 2012, and a decrease of 15 percent compared to $152.6 million in the fourth quarter of 2011.
- Net income on a non-GAAP basis in the fourth quarter of 2012 excludes the following items: (i) $6.3 million stock-based compensation expense; (ii) $10.8 million amortization of purchased intangible assets; and (iii) $3.1 million of other adjustments including income tax related
- GAAP net income was $11.1 million, or $0.05 per diluted share, compared to GAAP net loss in the third quarter of 2012 was $274.4 million, or $1.31 per share. Third quarter of 2012 GAAP results included impairment write-downs of goodwill and intangible assets of $276.1 million. Non-GAAP net income in the fourth quarter of 2012 was $25.1 million, or $0.12 per diluted share, up 18 percent sequentially, compared to non-GAAP net income of $21.4 million, or $0.10 per diluted share, in the third quarter of 2012.
Greg Lang, PMC President and Chief Executive Officer, commented:
We are pleased to report that our fourth quarter results were at the high end of our outlook, despite continued headwinds in the macro environment.
2012 full year financials:
- Net revenues were $531 million compared to $654.3 million for the year ended December 31, 2011, a decrease of 19 percent year over year.
- GAAP operating loss for the full year 2012 was $281.7 million compared to GAAP operating income of $52.8 million reported in the year ended December 31, 2011.
- Non-GAAP operating income for the full year 2012 was $77.5 million compared to non-GAAP operating income of $142.7 million in the prior year.
- GAAP net loss for the full year 2012 was $333.1 million, or $1.54 per share, compared to GAAP net income of $84.7 million, or $0.36 per diluted share, for the prior year.
- Non-GAAP net income in the year ended December 29, 2012 was $81.8 million or $0.38 per diluted share, compared to non-GAAP net income of $142 million or $0.60 per diluted share, in the year ended December 31, 2011.
At the investors conference Mr. Lang said:
We expect Q1 revenues to be in the range of $123 million to $132 million. Considering today’s backlog, we believe that both storage and carrier product lines will be roughly flat, up slightly or down slightly. And for storage, this is better than the normal 5% to 10% seasonality, supported by new 6-gig platform ramps and our new Series 7 RAID success. Today our business is focused on transforming networks that connect, move and store big data. And as you all know, data traffic and data creation continues to grow at a rapid pace. We believe the fundamental drivers for our main growth areas in storage OTN backhaul and radio head solutions remain firmly intact. Further, we believe our design win position in each of these segments will allow us to grow share over the next few years.