Pericom Semiconductor Corp. (PSEM), a high-speed integrated circuits and frequency control products supplier, Tuesday said its second quarter net income declined form the same quarter a year ago, hurt by a decrease in gross margin by 150 basis points. Results were also impacted from a 24.5% decline in net revenues that resulted from the continuing economic downturn. The company also provided its revenue forecast for the third quarter.
San Jose, California-based Pericom Semiconductor's net income for the second quarter decreased to $1.709 million or $0.07 per share from $4.396 million or $0.16 per share in the comparable quarter a year ago.
On average, three analysts polled by First Call/Thomson Financial expected the company to earn $0.04 per share for the quarter. Analysts' estimate typically excludes special items such as one time charges or gains.
Gross margin for the second quarter decreased to 34.9% from 36.9% in the same quarter a year ago.
Income from operations plummeted to $686 thousand from $4.860 million in the corresponding quarter a year ago.
Net revenues for the quarter decreased sharply to $30.732 million, from $40.726 million in the corresponding quarter a year ago, hurt by a decline in end-market demand and inventory reduction initiatives across the supply chain. Wall Street analysts estimated revenues of $29.87 million for the second quarter.
For the six-month period, net income declined to $5.634 million or $0.22 per share from $8.279 million or $0.31 per share in the comparable period last year.
Net revenues for the six-month period decreased to $74.628 million from $79.194 million in the year ago period.
Looking forward to the third quarter, the company expects revenues in the range of $23.0 million to $26.0 million, below analysts' current expectations of $27.70 million.
PSEM closed Tuesday's trading session at $6.75, up $0.25 or 3.85%, on a volume of 0.321 million shares. In after hours, the stock gained $0.0204 or 0.30%, trading at $6.7704.
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