Friday, integrated circuits and frequency control product maker Pericom Semiconductor Corp. (PSEM), 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.
Gross margins are expected to be in the 31% to 33% range, while operating expenses are expected to be in the range of $10.5 million to $11.5 million.
PSEM closed Friday's trading at $9.85, up $0.19 or 1.97%, on a volume of 94,720 shares on the Nasdaq. In after hours, the stock lost $0.11 or 1.11%, trading at $9.74.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.