SAN DIEGO, Oct. 29, 2014
/PRNewswire/ -- Peregrine Semiconductor Corporation (Peregrine
Semiconductor) (NASDAQ: PSMI), founder of RF SOI (silicon on
insulator) and pioneer of advanced RF solutions, today announced
its third quarter 2014 financial results.
On August 22, 2014, Peregrine
Semiconductor entered into an Agreement and Plan of Merger with
Murata Electronics North America, Inc. (Murata) and PJ Falcon
Acquisition Company, Limited, a wholly-owned subsidiary of Murata.
Due to this proposed merger with Murata, Peregrine Semiconductor
will not conduct a third quarter 2014 financial results conference
call.
Third quarter 2014 revenue was $43.1
million, compared with $60.0
million for the same period in 2013.
As reported under U.S. generally accepted accounting principles
(GAAP), third quarter 2014 net loss was $3.1
million, compared with a GAAP net income of $4.4 million in the same period in 2013. Diluted
net loss per share was $0.09 for the
third quarter of 2014 compared to a diluted net income per share of
$0.12 for the same period in
2013.
Non-GAAP net loss for the third quarter of 2014 was $1.3 million, or $0.04 per diluted share based on weighted average
shares outstanding of 33.6 million. This compares with non-GAAP net
income of $6.2 million or
$0.17 per diluted share based on
weighted average shares outstanding of 35.8 million for the same
period in 2013.
Gross margin on a GAAP basis for the third quarter of 2014 was
39.6% of revenue, compared to 42.1% of revenue for the same period
in 2013. Gross margin on a non-GAAP basis for the third quarter of
2014 was 40.3% of revenue, compared to 42.5% of revenue for the
same period in 2013.
Operating expenses for the third quarter of 2014 were
$20.3 million on a GAAP basis and
$18.8 million on a non-GAAP basis,
compared to $21.0 million on a GAAP
basis and $19.5 million on a non-GAAP
basis for the third quarter of 2013.
In anticipation of the proposed merger with Murata, which the
Company currently expects to be completed by the end of 2014,
Peregrine Semiconductor will not issue financial guidance for the
upcoming quarter or conduct a fourth quarter financial results
conference call. The merger is subject to various closing
conditions, including Peregrine stockholder and regulatory
approvals.
Use of GAAP and Non-GAAP Financial Measures
Peregrine Semiconductor prepares its financial statements in
accordance with generally accepted accounting principles
for the United States (GAAP). The non-GAAP
financial measures such as gross margin, net income and loss per
share information for the three and nine months ended
September 27, 2014, and similar periods from the prior year
included in this press release are different from those otherwise
presented under GAAP. The non-GAAP financial measures exclude
non-cash compensation expense for stock options. When
evaluating the performance of our business and developing short and
long-term plans, we do not consider share-based compensation
charges. Although share-based compensation is necessary to
attract and retain quality employees, our consideration of
share-based compensation places its primary emphasis on overall
shareholder dilution rather than the accounting charges associated
with such grants. Because of the varying availability of
valuation methodologies and subjective assumptions, we believe that
the exclusion of share-based compensation allows for more accurate
comparison of our financial results to previous periods. In
addition, we believe it useful to investors to understand the
specific impact of the application of the fair value method of
accounting for share-based compensation on our operating
results. The presentation of these financial measures is not
intended to be considered in isolation or as a substitute for, or
superior to, financial information prepared and presented in
accordance with GAAP. We believe these non-GAAP financial
measures provide investors with useful supplemental information
about the financial performance of our business, enable comparison
of financial results between periods where certain items may vary
independent of business performance, and allow for greater
transparency with respect to key metrics used by management in
operating our business. However, investors are cautioned that
there are material limitations associated with the use of non-GAAP
financial measures as an analytical tool. These measures may
be different from non-GAAP financial measures used by other
companies, limiting their usefulness for comparison purposes.
For more information on our non-GAAP financial measures and a
reconciliation of such measures to the nearest GAAP measure, please
see the "Condensed Consolidated Reconciliation of GAAP to Non-GAAP
Results" table in this press release.
Use of Forward Looking Statements
This press release contains forward looking statements regarding
our management's future expectations, beliefs, intentions, goals,
strategies, plans and prospects. Such statements constitute
"forward-looking" statements which are subject to the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995. The achievement of the matters covered by such
forward-looking statements involves risks, uncertainties and
assumptions. If any of these risks or uncertainties materialize or
if any of the assumptions prove incorrect, our actual results,
performance or achievements could be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements. Such risks and uncertainties
include, but are not limited to, our dependence on a limited number
of customers for a substantial portion of our revenues;
intellectual property risks; intense competition in our industry;
our ability to develop and introduce new and enhanced products on a
timely basis and achieve market acceptance of those products;
consumer acceptance of our customers' products that incorporate our
solutions; our lack of long-term supply contracts and dependence on
limited sources of supply; and potential decreases in average
selling prices for our products.
For further information regarding risks and uncertainties
associated with Peregrine's business, please refer to the filings
that we make with the Securities and Exchange Commission from time
to time, including those set forth in the section entitled "Risk
Factors" in our Form 10-K for the year ended December 28,
2013, which should be read in conjunction with these financial
results. These documents are available on the SEC Filings
section of the Investor Relations section of our website at
http://investors.psemi.com/. Please also note that
forward-looking statements represent our management's beliefs and
assumptions only as of the date of this press release. Except
as required by law, we assume no obligation to update these
forward-looking statements publicly, or to update the reasons
actual results could differ materially from those anticipated in
the forward-looking statements, even if new information, becomes
available in the future.
About Peregrine Semiconductor
Peregrine Semiconductor (NASDAQ: PSMI), founder of RF SOI
(silicon on insulator), is a leading fabless provider of
high-performance, integrated RF solutions. Since 1988 Peregrine and
its founding team have been perfecting UltraCMOS® technology - a
patented, advanced form of SOI - to deliver the performance edge
needed to solve the RF market's biggest challenges, such as
linearity. With products that deliver best-in-class performance and
monolithic integration, Peregrine is the trusted choice for market
leaders in automotive, broadband, industrial, Internet of Things,
military, mobile devices, smartphones, space, test-and-measurement
equipment and wireless infrastructure. Peregrine holds more than
190 filed and pending patents and has shipped over 2 billion
UltraCMOS units. For more information, visit
http://www.psemi.com.
The Peregrine Semiconductor name, logo, and UltraCMOS are
registered trademarks of Peregrine Semiconductor Corporation
in the U.S.A., and other
countries.
CONTACT:
Jonathan Goldberg, Senior Director
of Corporate Development
ir@psemi.com
Investor Relations Contact:
The Blueshirt Group
Suzanne Schmidt or Melanie Solomon
415-217-4962; 415-217-4964
Suzanne@blueshirtgroup.com
Melanie@blueshirtgroup.com
(Tables Follow)
Peregrine
Semiconductor Corporation
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands,
except per share data)
(unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
September 27,
2014
|
|
September 28,
2013
|
|
September 27,
2014
|
|
September 28,
2013
|
|
Net
revenue
|
|
$
|
43,123
|
|
|
$
|
60,002
|
|
|
$
|
131,500
|
|
|
$
|
158,992
|
|
|
Cost of net
revenue
|
|
26,031
|
|
|
34,749
|
|
|
81,593
|
|
|
93,203
|
|
|
Gross
profit
|
|
17,092
|
|
|
25,253
|
|
|
49,907
|
|
|
65,789
|
|
|
Operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
9,251
|
|
|
10,777
|
|
|
29,730
|
|
|
31,417
|
|
|
Selling, general and
administrative
|
|
11,092
|
|
|
10,210
|
|
|
39,355
|
|
|
31,487
|
|
|
Total operating
expense
|
|
20,343
|
|
|
20,987
|
|
|
69,085
|
|
|
62,904
|
|
|
Income (loss) from
operations
|
|
(3,251)
|
|
|
4,266
|
|
|
(19,178)
|
|
|
2,885
|
|
|
Interest income
(expense), net
|
|
54
|
|
|
(27)
|
|
|
123
|
|
|
(165)
|
|
|
Other income
(expense), net
|
|
(14)
|
|
|
99
|
|
|
48
|
|
|
50
|
|
|
Income (loss) before
income taxes
|
|
(3,211)
|
|
|
4,338
|
|
|
(19,007)
|
|
|
2,770
|
|
|
Income tax expense
(benefit)
|
|
(63)
|
|
|
(95)
|
|
|
98
|
|
|
(7)
|
|
|
Net income
(loss)
|
|
$
|
(3,148)
|
|
|
$
|
4,433
|
|
|
$
|
(19,105)
|
|
|
$
|
2,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.09)
|
|
|
$
|
0.14
|
|
|
$
|
(0.57)
|
|
|
$
|
0.09
|
|
|
Diluted
|
|
$
|
(0.09)
|
|
|
$
|
0.12
|
|
|
$
|
(0.57)
|
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to
compute net income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
33,572
|
|
|
32,394
|
|
|
33,261
|
|
|
32,163
|
|
|
Diluted
|
|
33,572
|
|
|
35,804
|
|
|
33,261
|
|
|
35,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peregrine
Semiconductor Corporation
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in
thousands)
(unaudited)
|
|
September
27,
|
|
December
28,
|
2014
|
|
|
2013
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
18,041
|
|
|
$
|
16,249
|
|
Short-term marketable
securities
|
30,508
|
|
|
28,035
|
|
Accounts receivable,
net
|
14,370
|
|
|
16,905
|
|
Inventories
|
34,970
|
|
|
53,489
|
|
Prepaids and other
current assets
|
3,346
|
|
|
4,085
|
|
Total current
assets
|
101,235
|
|
|
118,763
|
|
Property and
equipment, net
|
19,851
|
|
|
23,122
|
|
Long-term marketable
securities
|
28,472
|
|
|
18,888
|
|
Other
assets
|
2,931
|
|
|
102
|
|
Total
assets
|
$
|
152,489
|
|
|
$
|
160,875
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
10,182
|
|
|
$
|
12,983
|
|
Accrued
liabilities
|
11,203
|
|
|
11,829
|
|
Accrued
compensation
|
3,994
|
|
|
4,542
|
|
Customer
deposits
|
—
|
|
|
916
|
|
Deferred
revenue
|
11,044
|
|
|
6,131
|
|
Total current
liabilities
|
36,423
|
|
|
36,401
|
|
|
|
|
|
|
|
Other long-term
liabilities
|
2,461
|
|
|
943
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common
stock
|
34
|
|
|
33
|
|
Additional paid-in
capital
|
357,972
|
|
|
348,684
|
|
Accumulated
deficit
|
(244,091)
|
|
|
(224,986)
|
|
Accumulated other
comprehensive loss
|
(310)
|
|
|
(200)
|
|
Total stockholders'
equity
|
113,605
|
|
|
123,531
|
|
Total liabilities and
stockholders' equity
|
$
|
152,489
|
|
|
$
|
160,875
|
|
|
|
|
|
|
|
Peregrine
Semiconductor Corporation
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
(unaudited)
|
|
|
Nine Months
Ended
|
|
|
September
27,
|
|
September
28,
|
|
2014
|
|
|
2013
|
|
Operating
activities
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(19,105)
|
|
|
$
|
2,777
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
5,503
|
|
|
4,825
|
|
Loss on disposal of
property and equipment
|
|
541
|
|
|
—
|
|
Stock-based
compensation
|
|
5,782
|
|
|
4,854
|
|
Imputed interest
related to deposit arrangements, net
|
|
41
|
|
|
(307)
|
|
Amortization of
premium and discount on investments, net
|
|
221
|
|
|
293
|
|
Cash received for
lease incentives
|
|
—
|
|
|
135
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
2,625
|
|
|
(4,956)
|
|
Inventories
|
|
18,614
|
|
|
4,717
|
|
Prepaids and other
current and noncurrent assets
|
|
(2,552)
|
|
|
3,676
|
|
Accounts payable and
accrued liabilities
|
|
(2,928)
|
|
|
(16,144)
|
|
Customer
deposits
|
|
—
|
|
|
(11,425)
|
|
Deferred
revenue
|
|
4,914
|
|
|
(6,787)
|
|
Net cash provided by
(used in) operating activities
|
|
13,656
|
|
|
(18,342)
|
|
Investing
activities
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(2,527)
|
|
|
(5,304)
|
|
Purchase of
marketable securities
|
|
(37,057)
|
|
|
(28,552)
|
|
Sale and maturity of
marketable securities
|
|
24,710
|
|
|
31,607
|
|
Proceeds from sale of
equipment
|
|
483
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(14,391)
|
|
|
(2,249)
|
|
Financing
activities
|
|
|
|
|
|
|
Payments on
obligations under capital leases
|
|
—
|
|
|
(7)
|
|
Payments on customer
deposit financing arrangement
|
|
(916)
|
|
|
(8,046)
|
|
Proceeds from
exercise of stock options
|
|
3,787
|
|
|
1,759
|
|
Payments related to
net share settlement of equity awards
|
|
(281)
|
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
|
2,590
|
|
|
(6,294)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(63)
|
|
|
(15)
|
|
Net change in cash
and cash equivalents
|
|
1,792
|
|
|
(26,900)
|
|
Cash and cash
equivalents at beginning of period
|
|
16,249
|
|
|
44,106
|
|
Cash and cash
equivalents at end of period
|
|
$
|
18,041
|
|
|
$
|
17,206
|
|
Peregrine
Semiconductor Corporation
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(in thousands, except per share data)
(unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September 27,
2014
|
|
September 28,
2013
|
|
September 27,
2014
|
|
September 28,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit -
GAAP
|
$ 17,092
|
|
39.6%
|
|
$ 25,253
|
|
42.1%
|
|
$ 49,907
|
|
38.0%
|
|
$ 65,789
|
|
41.4%
|
Non-cash compensation
expense (1)
|
277
|
|
0.7
|
|
238
|
|
0.4
|
|
807
|
|
0.6
|
|
652
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit -
Non-GAAP
|
$ 17,369
|
|
40.3%
|
|
$ 25,491
|
|
42.5%
|
|
$ 50,714
|
|
38.6%
|
|
$ 66,441
|
|
41.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations - GAAP
|
$ (3,251)
|
|
(7.5)%
|
|
$ 4,266
|
|
7.1%
|
|
$ (19,178)
|
|
(14.6)%
|
|
$ 2,885
|
|
1.8%
|
Non-cash compensation
expense (1)
|
1,816
|
|
4.2
|
|
1,728
|
|
2.9
|
|
5,782
|
|
4.4
|
|
4,854
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations - Non-GAAP
|
$ (1,435)
|
|
(3.3)%
|
|
$ 5,994
|
|
10.0%
|
|
$ (13,396)
|
|
(10.2)%
|
|
$ 7,739
|
|
4.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) -
GAAP
|
$ (3,148)
|
|
(7.3)%
|
|
$ 4,433
|
|
7.4%
|
|
$ (19,105)
|
|
(14.5)%
|
|
$ 2,777
|
|
1.7%
|
Non-cash compensation
expense (1)
|
1,816
|
|
4.2
|
|
1,728
|
|
2.9
|
|
5,782
|
|
4.4
|
|
4,854
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) -
Non-GAAP
|
$ (1,332)
|
|
(3.1)%
|
|
$ 6,161
|
|
10.3%
|
|
$ (13,323)
|
|
(10.1)%
|
|
$ 7,631
|
|
4.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per share - GAAP
|
$ (0.09)
|
|
|
|
$ 0.12
|
|
|
|
$ (0.57)
|
|
|
|
$ 0.08
|
|
|
Non-cash compensation
expense
|
0.05
|
|
|
|
0.05
|
|
|
|
0.17
|
|
|
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per share - Non-GAAP
|
$ (0.04)
|
|
|
|
$ 0.17
|
|
|
|
$ (0.40)
|
|
|
|
$ 0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to
compute diluted net income (loss) per share - GAAP and
Non-GAAP
|
33,572
|
|
|
|
35,804
|
|
|
|
33,261
|
|
|
|
35,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September 27,
2014
|
|
September 28,
2013
|
|
September 27,
2014
|
|
September 28,
2013
|
Cost of net
revenue
|
$
277
|
|
$
238
|
|
$
807
|
|
$
652
|
Research and
development
|
574
|
|
537
|
|
1,869
|
|
1,534
|
Selling, general and
administrative
|
965
|
|
953
|
|
3,106
|
|
2,668
|
Total
|
$
1,816
|
|
$
1,728
|
|
$
5,782
|
|
$
4,854
|
Logo - http://photos.prnewswire.com/prnh/20140818/136921
SOURCE Peregrine Semiconductor