PMC-Sierra: Fiscal 2Q11 Financial Results

PMC-Sierra, Inc. reported results for the second quarter ended June 26, 2011.

Net revenues in the second quarter of 2011 were $171.0 million, a sequential increase of 9% compared with $157.4 million in the first quarter of 2011, and 6% higher than net revenues of $160.7 million in the second quarter of 2010.

In the second quarter of 2011, the company reported GAAP net income of $16.7 million, or $0.07 per diluted share, compared with GAAP net loss in the first quarter of 2011 of $7.7 million, or $0.03 per share. Non-GAAP net income in the second quarter of 2011 was $40.2 million, or $0.17 per diluted share, compared with non-GAAP net income of $30.6 million, or $0.13 per diluted share, in the first quarter of 2011.

"Strength in our storage and optical businesses, combined with solid execution, resulted in a strong second quarter," commented Greg Lang, president and chief executive officer of PMC. "PMC also made several product announcements during the quarter, reinforcing our leading position as the network semiconductor innovator. These announcements spanned the SAS 2 storage, optical networking and mobile connectivity markets."

Net income on a non-GAAP basis in the second quarter of 2011 excludes the following items: (i) $7.0 million stock-based compensation expense; (ii) $1.2 million acquisition related costs; (iii) $11.0 million amortization of purchased intangible assets; (iv) $0.9 million of non-cash interest expense for the accretion of the debt discount related to the senior convertible notes; (v) $0.7 million of other items; and (vi) $2.7 million income tax provisions.

In the second quarter of 2011:

Storage

• The Company announced that it has shipped more than 74 million 6Gb/s SAS system ports, establishing PMC as the leading provider of 6Gb/s SAS technology for storage systems and servers.
• PMC introduced the Tachyon SPCv SAS/SATA protocol controllers, which double the performance and port density of existing solutions and deliver more than 750,000 I/Os per second.
• PMC also announced a true hardware 6Gb/s SATA/SAS RAID controllers with on-board DRAM cache for the entry-level market segment.

Optical

• The Company introduced the POLO 40G, a 40Gb/s System-on-Chip (SoC) solution for coherent optical networking.
• FiberHome, a China’s fiber-optic communications equipment provider, selected PMC’s HyPHY chipset for its FONST Series family of WDM optical transmission solutions.
• PMC also announced quad-port EPON OLT SoC solutions, the first to integrate network power management and optical fiber diagnostics while supporting advanced traffic management and eliminating the need for a separate aggregation switch.
• Mobile
• PMC’s Universal Front End 4 (UFE4) silicon received the NGN Leadership Award in the network technology category presented by NGN Magazine.