For more information on our non-GAAP financial measures and a reconciliation of such measures to the nearest GAAP measure, please see the “Condensed Consolidated Reconciliation of GAAP to Non-GAAP Results” table in this press release.
Use of Forward Looking Statements
This press release contains forward looking statements regarding our management's future expectations, beliefs, intentions, goals, strategies, plans and prospects. Such statements constitute “forward-looking” statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The achievement of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, our actual results, performance or achievements could be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, our dependence on a limited number of customers for a substantial portion of our revenues; intellectual property risks; intense competition in our industry; our ability to develop and introduce new and enhanced products on a timely basis and achieve market acceptance of those products; consumer acceptance of our customers’ products that incorporate our solutions; our lack of long-term supply contracts and dependence on limited sources of supply; and potential decreases in average selling prices for our products.
For further information regarding risks and uncertainties associated with Peregrine’s business, please refer to the filings that we make with the Securities and Exchange Commission from time to time, including those set forth in the section entitled “Risk Factors” in our Form 10-K for the year ended December 28, 2013, which should be read in conjunction with these financial results. These documents are available on the SEC Filings section of the Investor Relations section of our website at http://investors.psemi.com/. Please also note that forward-looking statements represent our management's beliefs and assumptions only as of the date of this press release. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information, becomes available in the future.
About Peregrine Semiconductor
Peregrine Semiconductor (NASDAQ: PSMI), founder of RF SOI (silicon on insulator), is a leading fabless provider of high-performance, integrated RF solutions. Since 1988 Peregrine and its founding team have been perfecting UltraCMOS® technology - a patented, advanced form of SOI - to deliver the performance edge needed to solve the RF market's biggest challenges, such as linearity. With products that deliver best-in-class performance and monolithic integration, Peregrine is the trusted choice for market leaders in automotive, broadband, industrial, Internet of Things, military, mobile devices, smartphones, space, test-and-measurement equipment and wireless infrastructure. Peregrine holds more than 180 filed and pending patents and has shipped over 2 billion UltraCMOS units. For more information, visit http://www.psemi.com.
The Peregrine Semiconductor name, logo, and UltraCMOS are registered trademarks of Peregrine Semiconductor Corporation in the U.S.A., and other countries.
(Tables Follow)
| Peregrine Semiconductor Corporation | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (in thousands, except per share data) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended | ||||||||
|
March 29,
2014 |
March 30,
2013 |
|||||||
| Net revenue | $ | 41,317 | $ | 46,625 | ||||
| Cost of net revenue | 26,575 | 26,808 | ||||||
| Gross profit | 14,742 | 19,817 | ||||||
| Operating expense: | ||||||||
| Research and development | 11,384 | 10,164 | ||||||
| Selling, general and administrative | 13,361 | 10,720 | ||||||
| Total operating expense | 24,745 | 20,884 | ||||||
| Loss from operations | (10,003 | ) | (1,067 | ) | ||||
| Interest income (expense), net | 35 | (79 | ) | |||||
| Other income (expense), net | 19 | (34 | ) | |||||
| Loss before income taxes | (9,949 | ) | (1,180 | ) | ||||
| Provision for income taxes | 44 | 28 | ||||||
| Net loss | $ | (9,993 | ) | $ | (1,208 | ) | ||
| Basic and diluted net loss per share: | $ | (0.30 | ) | $ | (0.04 | ) | ||
| Shares used to compute basic and diluted net loss per share: | 32,937 | 31,925 | ||||||
| Peregrine Semiconductor Corporation | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| March 29, | December 28, | |||||||
| 2014 | 2013 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 12,385 | $ | 16,249 | ||||
| Short-term marketable securities | 25,963 | 28,035 | ||||||
| Accounts receivable, net | 17,761 | 16,905 | ||||||
| Inventories | 44,928 | 53,489 | ||||||
| Prepaids and other current assets | 7,181 | 4,085 | ||||||
| Total current assets | 108,218 | 118,763 | ||||||
| Property and equipment, net | 21,480 | 23,122 | ||||||
| Long-term marketable securities | 20,591 | 18,888 | ||||||
| Other assets | 100 | 102 | ||||||
| Total assets | $ | 150,389 | $ | 160,875 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 11,838 | $ | 12,983 | ||||
| Accrued liabilities | 9,934 | 11,829 | ||||||
| Accrued compensation | 3,603 | 4,542 | ||||||
| Customer deposits | 916 | 916 | ||||||
| Deferred revenue | 7,106 | 6,131 | ||||||
| Total current liabilities | 33,397 | 36,401 | ||||||
| Other long-term liabilities | 828 | 943 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 33 | 33 | ||||||
| Additional paid-in capital | 351,313 | 348,684 | ||||||
| Accumulated deficit | (234,979 | ) | (224,986 | ) | ||||
| Accumulated other comprehensive loss | (203 | ) | (200 | ) | ||||
| Total stockholders’ equity | 116,164 | 123,531 | ||||||
| Total liabilities and stockholders’ equity | $ | 150,389 | $ | 160,875 | ||||
| Peregrine Semiconductor Corporation | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 29, | March 30, | |||||||
| 2014 | 2013 | |||||||
| Operating activities | ||||||||
| Net loss | $ | (9,993 | ) | $ | (1,208 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 1,817 | 1,500 | ||||||
| Loss on disposal of property and equipment | 337 | — | ||||||
| Stock-based compensation | 2,104 | 1,466 | ||||||
| Imputed interest related to deposit arrangements, net | 41 | 19 | ||||||
| Amortization of premium and discount on investments, net | 80 | 106 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (767 | ) | (839 | ) | ||||
| Inventories | 8,570 | (3,399 | ) | |||||
| Prepaids and other current and noncurrent assets | (3,188 | ) | 5,272 | |||||
| Accounts payable and accrued liabilities | (3,988 | ) | (15,613 | ) | ||||
| Customer deposits | — | (9,093 | ) | |||||
| Deferred revenue | 974 | (5,207 | ) | |||||
| Net cash used in operating activities | (4,013 | ) | (26,996 | ) | ||||
| Investing activities | ||||||||
| Purchase of property and equipment | (628 | ) | (1,866 | ) | ||||
| Purchase of marketable securities | (11,222 | ) | (8,882 | ) | ||||
| Sale of marketable securities | 11,500 | 10,340 | ||||||
| Net cash used in investing activities | (350 | ) | (408 | ) | ||||
| Financing activities | ||||||||
| Payments on customer deposit financing arrangement | — | (2,787 | ) | |||||
| Proceeds from exercise of stock options | 525 | 261 | ||||||
| Net cash provided by (used in) financing activities | 525 | (2,526 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (26 | ) | (9 | ) | ||||
| Net change in cash and cash equivalents | (3,864 | ) | (29,939 | ) | ||||
| Cash and cash equivalents at beginning of period | 16,249 | 44,106 | ||||||
| Cash and cash equivalents at end of period | $ | 12,385 | $ | 14,167 | ||||
| Peregrine Semiconductor Corporation | ||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP RESULTS | ||||||||||||||
| (in thousands, except per share data) | ||||||||||||||
| (unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
|
March 29,
2014 |
March 30,
2013 |
|||||||||||||
| Gross profit - GAAP | $ | 14,742 | 35.7 | % | $ | 19,817 | 42.5 | % | ||||||
| Non-cash compensation expense (1) | 258 | 0.6 | 143 | 0.4 | ||||||||||
| Gross profit - Non-GAAP | $ | 15,000 | 36.3 | % | $ | 19,960 | 42.9 | % | ||||||
| Loss from operations - GAAP | $ | (10,003 | ) | (24.2 | %) | $ | (1,067 | ) | (2.3 | %) | ||||
| Non-cash compensation expense (1) | 2,104 | 5.1 | 1,466 | 3.2 | ||||||||||
| Income (loss) from operations - Non-GAAP | $ | (7,899 | ) | (19.1 | %) | $ | 399 | 0.9 | % | |||||
| Net loss - GAAP | $ | (9,993 | ) | (24.2 | %) | $ | (1,208 | ) | (2.6 | %) | ||||
| Non-cash compensation expense (1) | 2,104 | 5.1 | 1,466 | 3.2 | ||||||||||
| Net income (loss) - Non-GAAP | $ | (7,889 | ) | (19.1 | %) | $ | 258 | 0.6 | % | |||||
| Diluted net loss per share - GAAP | $ | (0.30 | ) | $ | (0.04 | ) | ||||||||
| Non-cash compensation expense | 0.06 | 0.05 | ||||||||||||
| Diluted net income (loss) per share - Non-GAAP | $ | (0.24 | ) | $ | 0.01 | |||||||||
| Shares used to compute diluted net loss per share - GAAP | 32,937 | 31,925 | ||||||||||||
| Dilutive effect of stock options and warrants | — | 3,810 | ||||||||||||
| Shares used to compute diluted net income (loss) per share - Non-GAAP | 32,937 | 35,735 | ||||||||||||
| (1) Includes stock-based compensation as follows: | ||||||||||||||
| Three Months Ended | ||||||||||||||
|
March 29,
2014 |
March 30,
2013 |
|||||||||||||
| Cost of net revenue | $ | 258 | $ | 196 | ||||||||||
| Research and development | 736 | 517 | ||||||||||||
| Selling, general and administrative | 1,110 | 753 | ||||||||||||
| Total | $ | 2,104 | $ | 1,466 | ||||||||||
