PMC-Sierra: Fiscal 3Q14 Financial Results

PMC-Sierra, Inc. reported results for the third quarter ended September 27, 2014.

Net revenues in the third quarter of 2014 totaled $135.5 million, an increase of 7% from $126.8 million in the second quarter of 2014 and an increase of 6%, compared to $128.4 million in the third quarter of 2013.

GAAP net income in the third quarter of 2014 totaled $5.5 million or $0.03 per diluted share, compared to a GAAP net loss in the second quarter of 2014 of $3.5 million or a $0.02 loss per share.

Non-GAAP net income in the third quarter of 2014 totaled $22.5 million or $0.11 per diluted share, compared to non-GAAP net income of $18.3 million or $0.09 per diluted share in the second quarter of 2014.

“Our storage business performed exceedingly well this past quarter with double-digit growth across all of its product lines,” said PMC president and CEO, Greg Lang. “PMC remains well-positioned for continued growth into FY2015, as we expect to see increasing demand for our 12Gb SAS I/O controllers and expanders, advanced DIGI OTN processors, Flashtec NVMe controllers and our new RF Remote Radio Head products.”

Net income on a non-GAAP basis in the third quarter of 2014 excludes following items:

• $9.9 million amortization of purchased intangible assets;
• $5.2 million stock-based compensation expense, and
• $1.0 million of acquisition-related costs and other adjustments.

The company made the following third quarter announcements:

• On Sept. 17, announced it was first to ship 16-port 12Gb SAS and 16-port 6Gb SATA I/O controller solutions. These data center I/O products enable OEMs and ODMs to design cost-effective customized server hardware for hyperscale deployments, such as Open Compute, Windows cloud Servers, OpenStack and Project Scorpio. The devices have the industry’s highest port density, lowest power and are capable of more than 1,000,000 I/Os per second to support the demanding cloud software applications.
• On Sept. 16, Heng Liao, fellow in PMC’s chief strategy and technology office, presented Storage Optimization for the Hyperscale Data Center at the Huawei cloud Congress.
• On Sept. 10, announced it received Huawei’s Supplier Quality Award, which recognizes product quality, technical support and product delivery through a score card system to evaluate supplier performance on all quality assurance-related procedures. The company consistently earned an ‘A’ rating on all items delivered in 2013.
• On Sept. 4, announced that the company executed an agreement with HP to license core HP Smart Array software, firmware and management technology. PMC will leverage this technology to provide more system value to new and existing server storage and data center customers. This transaction also positions the firm as the supplier of key storage solution components across HP ProLiant Gen9 and beyond.
• On Aug. 26, introduced the industry’s first 12Gb SAS expander card to enable density-optimized servers, the fastest growing segment of the worldwide server market according to IDC. The Adaptec 12Gb SAS expander card enables flexible, high-density server architectures that can expand as data center storage needs grow. It provides 36 ports in a PCIe low-profile form factor.
• On Aug. 12, announced it received the prestigious Excellent Partner Award from Hitachi, Ltd. The award recognizes the superior product technology, service and support that PMC provides to Hitachi.
• On Aug. 5, established a new fast storage class memory tier to accelerate critical applications in scale-out storage and all-flash arrays. The Flashtec NVRAM Drives combine the speed and endurance of DRAM with the persistency of NAND flash to deliver ten times higher performance than the fastest SSD, at more than 10 million IO/s, with sub-microsecond latency. Leveraging PCIe 3.0, the Flashtec NVRAM Drives connect directly to the host to optimize CPU utilization and maximize overall system performance.
• On Aug. 5, Derek Dicker, VP of PMC’s NVM Solutions Group, presented a keynote, Software Defined Flash Solutions Herald an Era of Choice at Flash Memory Summit. Storage experts also presented on the latest trends in PCIe, NVMe and error correction that are shaping next-generation SSDs in forum sessions during the conference.
• On July 29, announced the company was recognized as an honoree in the 2013 TCOO Supplier Award program from Celestica. The awards program recognizes suppliers that support its TCOO strategy and demonstrate excellence in quality, delivery, technology, service, pricing and flexibility.
• On July 15, joined AT&T, Ciena and Verizon on a panel at the Lightwave Optical Summit in Austin, TX, to discuss the state of 100G OTN networking and deployment readiness, and what is beyond 100G. The discussion topics included the latest developments in equipment, optics and OTN processing semiconductors, and software-defined networking.