Q4 revenues increased 14% sequentially for Pericom

The revenue increase from the prior quarter reflects strength from the networking and telecom, server, storage, and embedded end-market segments. Net revenues for the fiscal year 2012 were $137.1 million, a decrease of 18% from the $166.3 million reported last year. The book-to-bill ratio for the fiscal fourth quarter was greater than 1.0. GAAP gross margin was 35.7% in the fourth quarter, an increase from 34.7% last quarter and an increase from 35.0% in the comparable period last year. On a non-GAAP basis, gross margin was 37.1% in the fourth quarter, which reflects exclusion of share-based compensation, amortization of intangible assets and amortization of fair value adjustments from the PTI acquisition. The comparable non-GAAP gross margins were 36.2% last quarter and also in the comparable period last year. The GAAP gross margin was 35.5% for the full fiscal year of 2012, an increase of 200 basis points from the 33.5% reported for fiscal year 2011. On a non-GAAP basis, the fiscal year 2012 gross margin was 36.9%, and increased by 180 basis points from fiscal year 2011's gross margin of 35.1%. GAAP net loss for the fourth quarter was $1.9 million, or $0.08 per diluted share, compared with net loss of $267,000, or $0.01 per diluted share in the third quarter, and net income of $1.6 million, or $0.06 per diluted share in the comparable period last year. GAAP net income for all periods included share-based compensation, amortization of intangible assets, restructuring charges, amortization of fair value adjustments, and other PTI acquisition related expenses. The fiscal 2012 fourth quarter also included establishment of a $2.8 million deferred tax asset valuation allowance relating to California tax credits that may not be utilized in the future and a $0.6 million note receivable write off. Excluding these items, non-GAAP net income for the fourth quarter was $2.5 million, or $0.10 per diluted share, compared with non-GAAP net income of $1.7 million or $0.07 per diluted share in the third quarter, and non-GAAP net income of $3.6 million, or $0.14 per diluted share in the comparable period last year. For the full fiscal year 2012, GAAP net loss was $2.1 million, or $0.09 per diluted share, compared with the GAAP net income of $13.5 million, or $0.53 per diluted share in fiscal year 2011. For the full fiscal year 2012, non-GAAP net income was $7.0 million, or $0.28 per diluted share, compared with $14.4 million, or $0.56 per diluted share in fiscal year 2011. The balance sheet remained very strong with cash and investments in marketable securities of $128 million or $5.41 per diluted share at the end of the fourth quarter. Inventory decreased $0.6 million on a sequential basis to $16.6 million, which represents 63 days of supply based on non-GAAP cost of goods sold. This is the seventh consecutive quarter of inventory declines, and during this period inventory has decreased $14.4 million or 46.5% from $31.0 million. Trade accounts receivable increased by $2.6 million sequentially as a result of higher revenues, while DSO was flat at 58 days. At quarter-end, working capital was $128 million and the current ratio was 6.1. "We were pleased with our fourth quarter results, especially since the end market increases were aligned with our strategic focus," said Alex Hui, President and CEO of Pericom. "Sequentially, our server and storage revenue increased 23%, networking and telecom increased 19% and embedded increased 18%. We initiated volume shipment of our USB 3.0 signal integrity solution in next generation Ivy Bridge computing platforms and we saw a nice ramp-up of our PCIe product revenue with our comprehensive switching, bridging, timing and signal integrity solution." Fiscal Q1 2013 Outlook Revenues in the first fiscal quarter are expected to be in the range of $36.0 million to $40.0 million. GAAP gross margins are expected to be between 34.9% and 36.9%, and adjusting for share-based compensation, amortization of intangibles and fair value adjustments that are expected to total approximately 1.3%, non-GAAP gross margins are expected to be in the 36.2% to 38.2% range. GAAP operating expenses are expected to be between $12.6 million and $13.1 million, and adjusting for share-based compensation, amortization of intangibles and fair value adjustments that are expected to total approximately $1.2 million, non-GAAP operating expenses are expected to be in the range of $11.4 million to $11.9 million.