(RTTNews) - Friday, integrated circuits and frequency control product maker Pericom Semiconductor Corp. (PSEM: News ), reported a plunge in profit for the fourth quarter, reflecting a sharp drop in revenues and margins. Nevertheless, earnings came in ahead of analysts' consensus by one cent, while revenues fell short. Looking ahead, the company also provided revenue outlook for the first quarter, in line with analysts consensus estimate.

The San Jose, California-based company's net income for the fourth quarter decreased significantly to $1.04 million or $0.04 per share from $4.60 million or $0.17 per share in the same quarter a year ago.

Analysts polled by Thomson Reuters expected the company to earn $0.03 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

Net revenues for the fourth quarter were $29.72 million, down 31.5% from the $43.40 million reported in the year-ago quarter. Analysts had a consensus revenue estimate of $30.07 million for the fourth quarter.

The company's loss from operations for the quarter was $1.01 million, compared with income from operations of $5.02 in the prior-year quarter.

Gross margin for the quarter contracted to 28.7% from 36.0% last year, mainly due to lower manufacturing volumes and resulting increased overhead absorption, as well as pricing pressure. Operating expenses for the quarter were $9.53 million, compared to $10.60 million in the year-earlier quarter.

Alex Hui, President and CEO, Pericom said, "Our fourth quarter confirmed the improved demand we anticipated at the start of the quarter, and this trend is being sustained into the first quarter of fiscal 2010."
Pericom Semiconductor said its bookings during the June quarter continued to grow and resulted in an improved backlog as it entered the September quarter. The company believes its revenues are now better aligned with end user demand and would gradually strengthen in the coming months.

For the full year net income declined to $6.10 million or $0.24 per share from $17.01 million or $0.64 per share in the year-ago period. Revenues for the period declined 21.4% to $128.65 million from $163.74 million last year.

Analysts expected the company to earn $0.26 per share on revenues of $129.07 million for the full year.

Looking ahead for the first quarter, the company expects revenues to be in the range of $31.5 million to $32.5 million. Analysts currently expect the company to report revenues of $32.40 million for the first quarter.

To receive FREE breaking news email alerts for Pericom Semiconductor and others in your portfolio

 1   2   Next Page