PMC-Sierra: Fiscal 1Q13 Financial Results

PMC-Sierra, Inc. reported results for the first quarter ended March 30, 2013.

Net revenues in the first quarter of 2013 totaled $125.2 million, a decrease of 3% compared to $129.4 million in the fourth quarter of 2012, and a decrease of 5% compared to $132.1 million in the first quarter of 2012.

GAAP net loss in the first quarter of 2013 totaled $6.8 million, or $0.03 per share, compared to GAAP net income in the fourth quarter of 2012 of $10.8 million, or $0.05 per diluted share. Note this GAAP comparative is restated for an immaterial correction described in the financial statements later in this release. Non-GAAP net income totaled $13.4 million, or $0.07 per diluted share, down 47% in the first quarter of 2013 compared to non-GAAP net income of $25.1 million, or $0.12 per diluted share in the fourth quarter of 2012.

"Our first quarter results were in line with our outlook and within the expected range," said Greg Lang, PMC president and CEO. "We are encouraged by stronger bookings in the quarter and expect to grow revenues in the second quarter of 2013. Our book-to-bill ratio within the period was greater than one for the second consecutive quarter."

Net income on a non-GAAP basis in 1Q13
excludes the following items:

• $7.4 million stock-based compensation expense;
• $10.8 million amortization of purchased intangible assets; and
• $2 million of other adjustments including income tax related.

The company announced the following in 1Q13:

• To meet the elastic traffic demands of big data, PMC announced the introduction of DIGI 120G, a single-chip OTN processor supporting 10G, 40G and 100G speeds for OTN transport, aggregation and switched deployments. It allows for the sharing and dynamic assignment of network resources, enabling OTN networks to virtualize optical network bandwidth. This level of silicon integration facilitates cost effective designs, engineering efficiency, and lowest power approach to OTN system solutions.
• In secure data center storage solutions, PMC announced further expansion of its Adaptec storage product line with the high performance, high density, low profile encrypted PCIe Gen3 HBA family. This product line is capable of executing over one million IO/s with 6.6GB/sec sustained throughput, provides 256-bit AES encryption, and offers up to 16 ports. The Adaptec Series 7H and 6H families of SAS/SATA HBAs provide customers with performance connectivity for HDDs, SSDs, removable media and tape drives.