PMC: Fiscal 4Q12 Financial Results

PMC-Sierra, Inc. reported results for the fourth quarter and full year ended December 29, 2012.

Net revenues in the fourth quarter of 2012 were $129.4 million, a sequential decrease of 2% compared to $131.7 million in the third quarter of 2012, and a decrease of 15% compared to $152.6 million in the fourth quarter of 2011.

GAAP net income in the fourth quarter of 2012 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% sequentially, compared to non-GAAP net income of $21.4 million, or $0.10 per diluted share, in the third quarter of 2012.

"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," said Greg Lang, PMC president and CEO.

Net income on a non-GAAP basis in 4Q12
excludes the following items:

• $6.3 million stock-based compensation expense;
• $10.8 million amortization of purchased intangible assets; and
• $3.1 million of other adjustments including income tax related as described in the accompanying GAAP to non-GAAP reconciliation table.

For the full year ended December 29, 2012, net revenues were $531 million compared to $654.3 million for the year ended December 31, 2011, a decrease of 19% 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. GAAP operating loss for the full year 2012 included impairment write-downs of goodwill and intangible assets of $276.1 million. 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.

4Q12 and FY12 Highlights

• Nov 19 – Appoints Steve Geiser VP and CFO
• Sept 18 – Delivers Tri-Speed Converged Carrier Ethernet/OTN Framer
• Sept 5 – Adaptec by PMC Transforms Data Center Storage Architectures with Industry’s Highest Port Count, PCIe Gen3 RAID Adapters
• Jun 25 – Wins Huawei 2011 Technology Quality Award
• Jun 5 – Introduces Integrated, Lowest Power Radio Transceiver Chipset for Next-Generation Macro Base Stations
• Jun 5 – Delivers End-to-End 12Gb/s Enterprise SAS Solution with SSD Controller
• May 24 – Showcases End-to-End Symmetric 10G EPON Demonstration at OptiNet China
• Mar 6 – Adaptec Doubles Server Storage Performance and Bandwidth in CeBIT Demo Featuring PCIe 3.0 on the Intel Xeon Processor E5-2600 Product Family and Seagate Pulsar SSDs
• Feb 29 – Acquires the Server Storage 12Gb/s Expander Product Line from Maxim

To read the earnings call transcript