• First quarter revenue of $41.3 million
• GAAP first quarter diluted net loss per share of $0.30
• Non-GAAP first quarter diluted net loss per share of $0.24

SAN DIEGO — (BUSINESS WIRE) — May 5, 2014 — Peregrine Semiconductor Corporation (Peregrine Semiconductor) (NASDAQ: PSMI), founder of RF SOI (silicon on insulator) and pioneer of advanced RF solutions, today announced its first quarter 2014 financial results.

First quarter 2014 revenue was $41.3 million, compared with $46.6 million for the same period in 2013.

As reported under U.S. generally accepted accounting principles (GAAP), first quarter 2014 net loss was $10.0 million, compared with a GAAP net loss of $1.2 million in the same period in 2013. Diluted net loss per share was $0.30 for the first quarter of 2014 compared to a net loss per share of $0.04 for the same period in 2013.

Non-GAAP net loss for the first quarter of 2014 was $7.9 million, or $0.24 per diluted share based on weighted average shares outstanding of 32.9 million. This compares with non-GAAP net income of $0.3 million or $0.01 per diluted share based on weighted average shares outstanding of 35.7 million for the same period in 2013.

Gross margin on a GAAP basis for the first quarter of 2014 was 35.7% of revenue, compared to 42.5% of revenue for the same period in 2013. Gross margin on a non-GAAP basis for the first quarter of 2014 was 36.3% of revenue, compared to 42.9% of revenue for the same period in 2013.

Operating expenses for the first quarter of 2014 were $24.7 million on a GAAP basis and $22.9 million on a non-GAAP basis, compared to $20.9 million on a GAAP basis and $19.6 million on a non-GAAP basis for the first quarter of 2013. For the first quarter of 2014 both GAAP and non-GAAP operating expenses included restructuring costs of $2.0 million, and $3.5 million in legal costs related to our litigation action against RFMD and export compliance investigation versus $0.9 million in the first quarter of 2013.

“We reported better than expected revenue in the quarter driven by healthy customer activity across our product portfolio. The public unveiling of Global One at Mobile World Congress has reinforced Peregrine’s reputation as the leading innovator in the RF industry, driving a high level of customer and partner interest,” commented Jim Cable, President and Chief Executive Officer.

Business Outlook

For the second quarter of 2014, the company expects revenue to be in the range of $42 million to $46 million. Second quarter GAAP gross margin is expected to be in the range of 36% to 39%.

Quarterly Conference Call Today

Jim Cable, President and Chief Executive Officer, and Jay Biskupski, Chief Financial Officer, will host a first quarter 2014 financial results conference call today at 1:30 pm (Pacific) / 4:30 pm (Eastern). Attendees are asked to join the conference call at least ten minutes prior to the scheduled conference call time. The call may be accessed by dialing 1-877-303-8027 (toll free) or 1-760-536-5165 (international). The passcode is 24683373. A live and archived webcast of the call will be available on Peregrine's website at http://investors.psemi.com/ for one week following the live call.

Use of GAAP and Non-GAAP Financial Measures

Peregrine Semiconductor prepares its financial statements in accordance with generally accepted accounting principles for the United States (GAAP). The non-GAAP financial measures such as gross margin, net income and loss per share information for the three months ended March 29, 2014, and similar periods from the prior year included in this press release are different from those otherwise presented under GAAP. The non-GAAP financial measures exclude non-cash compensation expense for stock options. When evaluating the performance of our business and developing short and long-term plans, we do not consider share-based compensation charges. Although share-based compensation is necessary to attract and retain quality employees, our consideration of share-based compensation places its primary emphasis on overall shareholder dilution rather than the accounting charges associated with such grants. Because of the varying availability of valuation methodologies and subjective assumptions, we believe that the exclusion of share-based compensation allows for more accurate comparison of our financial results to previous periods. In addition, we believe it useful to investors to understand the specific impact of the application of the fair value method of accounting for share-based compensation on our operating results. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business. However, investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. These measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.