PMC-Sierra, Inc. Reports Record First Quarter Revenue and Net Income
Business Editors
BURNABY, B.C.--(BUSINESS WIRE)--April 13, 2000--PMC-Sierra, Inc.
(Nasdaq:PMCS) today reported record revenue of $102.8 million and pro
forma net income of $0.17 per share (diluted) for the first quarter of
2000.
First quarter 2000 results included net revenues of $102.8 million
(US dollars) and net earnings of $23.0 million. Pro forma earnings per
share (diluted) of $0.17 exclude costs related to acquisitions and a
gain on the sale of an investment (net of tax) and include the
additional operating costs and share dilution resulting from the first
quarter acquisitions of Toucan Technologies Ltd. and AANetcom, Inc.
Revenues from networking semiconductors of $97.8 million grew 27% over
the prior quarter and 106% over the first quarter of 1999.
"PMC-Sierra enjoyed robust growth due to increasing demand for
broadband technologies. This is being driven by advanced applications
over the Internet, further driving the need for service provider
broadband build-outs," according to Bob Bailey, Chairman and Chief
Executive Officer.
PMC-Sierra is a leading provider of broadband semiconductor
solutions for the global information infrastructure. The company's
headquarters are located in Burnaby, British Columbia. PMC-Sierra is
traded on the Nasdaq National Market under the symbol PMCS. The
company is included in the NASDAQ-100 INDEX (NDX) which contains the
largest non-financial companies on the Nasdaq Stock Market. The
Nasdaq-100 Index is the benchmark for the Nasdaq-100 Index Tracking
Stock (AMEX:QQQ). Additional information on the Company can be found
on line at pmc-sierra.com.
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PMC-Sierra, Inc.
PRO FORMA STATEMENTS OF OPERATIONS
(in thousands, except for per share amounts)
(unaudited)
Three Months Ended
----------------------------------
Mar 26, Dec 26, Mar 28,
2000 1999 1999
Net revenues
Networking $ 97,753 $ 76,682 $ 47,405
Non-networking 5,054 4,308 2,994
--------- --------- ----------
Total 102,807 80,990 50,399
Gross profit $
Networking 79,958 62,474 38,013
Non-networking 2,248 1,985 1,412
--------- --------- ----------
Total 82,206 64,459 39,425
--------- --------- ----------
Gross profit %
Networking 81.8% 81.5% 80.2%
Non-networking 44.5% 46.1% 47.2%
Total 80.0% 79.6% 78.2%
Other costs and expenses:
Research and development 24,805 20,613 13,914
Marketing, general and
administrative 14,725 12,722 9,634
Amortization of deferred
stock compensation 3,321 1,313 511
Amortization of goodwill 307 313 313
--------- --------- ----------
Pro forma income from
operations 39,048 29,498 15,053
Interest and other income, net 3,646 3,407 1,090
--------- --------- ----------
Income before provision for
income taxes 42,694 32,905 16,143
Provision for income taxes 14,516 12,135 6,728
--------- --------- ----------
Pro forma net income $ 28,178 $ 20,770 $ 9,415
========= ========= ==========
Pro forma diluted net income
per share $ 0.17 $ 0.13 $ 0.06
Shares used to calculate pro forma 166,593 161,563 149,825
diluted net income per share
Pro forma adjustments
(1) The above pro forma amounts for the three months ended March 26,
2000 have been adjusted to eliminate the first quarter $7.9
million costs of merger related to the Toucan and AANetcom
acquisitions.
(2) The above pro forma amounts for the three months ended March 26,
2000 have been adjusted to eliminate the first quarter $4.1
million gain from the sale of investments and the related tax
provision of $1.4 million.
(3) The net income per share and number of shares used in the per
share calculation for all periods presented reflect the
two-for-one stock splits that were effective February 2000 and
April 1999.
(4) All items in both the 2000 and 1999 periods include the results of
Toucan and AANetcom which were acquired in the first quarter of
2000 in transactions accounted for as pooling of interests.
PMC-Sierra, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share amounts)
(unaudited)
Three Months Ended
----------------------------------
Mar 26, Dec 26, Mar 28,
2000 1999 1999
Net revenues
Networking $ 97,753 $ 76,682 $ 47,405
Non-networking 5,054 4,308 2,994
-------- ---------- --------
Total 102,807 80,990 50,399
Cost of revenues 20,601 16,531 10,974
-------- --------- --------
Gross profit 82,206 64,459 39,425
Other costs and expenses:
Research and development 24,805 20,613 13,914
Marketing, general and
administrative 14,725 12,722 9,634
Amortization of deferred
stock compensation:
Research and development 3,062 957 458
Marketing, general and
administrative 259 356 53
Amortization of goodwill 307 313 313
Costs of merger 7,902 - -
--------- -------- --------
Income from operations 31,146 29,498 15,053
Interest and other income, net 3,646 3,407 1,090
Gain on sale of investment 4,117 - -
-------- --------- --------
Income before provision
for income taxes 38,909 32,905 16,143
Provision for income taxes 15,916 12,135 6,728
-------- --------- ---------
Net income $ 22,993 $ 20,770 $ 9,415
======== ========= =========
Net income per common
share - basic $ 0.16 $ 0.14 $ 0.07
======== ========= =========
Net income per common
share - diluted $ 0.14 $ 0.13 $ 0.06
======== ========= =========
Shares used in per share
calculation - basic 146,733 145,268 138,666
Shares used in per share
calculation - diluted 166,593 161,563 149,825
(1) The net income per share and number of shares used in the per
share calculation for all periods presented reflect the
two-for-one stock splits that were effective February 2000 and
April 1999.
(2) All items in both the 2000 and 1999 periods include the results of
Toucan and AANetcom which were acquired in the first quarter of
2000 in transactions accounted for as pooling of interests.
PMC-Sierra, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Mar 26, Dec 26,
2000 1999
(unaudited)
------------------------
ASSETS:
Current assets:
Cash and cash equivalents $ 223,193 $ 85,945
Short-term investments - 106,636
Accounts receivable, net 46,108 36,170
Inventories, net 9,621 7,208
Deferred income taxes 9,270 9,270
Prepaid expenses and other
current assets 8,025 7,270
Short-term deposits for wafer
fabrication capacity 637 4,637
----------- ----------
Total current assets 296,854 257,136
Property and equipment, net 56,075 48,032
Goodwill and other intangible assets, net 14,359 15,280
Investments and other assets 12,489 11,827
Deposits for wafer fabrication capacity 14,483 14,483
----------- -----------
$ 394,260 $ 346,758
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 22,120 $ 11,570
Accrued liabilities 25,593 16,113
Deferred income 42,574 34,486
Accrued income taxes 13,618 26,190
Current portion of obligations under
capital leases and long-term debt 1,956 2,255
---------- -----------
Total current liabilities 105,861 90,614
Deferred income taxes 9,091 9,091
Noncurrent obligations under capital
leases and long-term debt 720 3,136
Special shares convertible into 4,069
common stock (1999 - 4,242) 6,748 6,998
Stockholders' equity:
Common stock and additional paid in
capital, par value $0.001;
200,000 shares authorized
(200,000 shares in 1999)
143,568 shares issued and
outstanding (141,317 in 1999) 241,331 219,761
Deferred stock compensation (14,172) (4,530)
Retained earnings 44,681 21,688
----------- -----------
Total stockholders' equity 271,840 236,919
----------- ------------
$ 394,260 $ 346,758
=========== ============
(1) All items in both the 2000 and 1999 periods include the results of
Toucan and AANetcom which were acquired in the first quarter of
2000 in transactions accounted for as pooling of interests.
PMC-Sierra, Inc.
SUPPLEMENTAL SCHEDULE
PRO FORMA CONSOLIDATING STATEMENTS OF OPERATIONS
(in thousands, except for per share amounts)
(unaudited)
Three Months Ended Mar 26, 2000
----------------------------------
PMC Toucan AANetcom Combined
Net revenues 102,807 - - 102,807
Cost of revenues 20,601 20,601
-------- ------ ------- -------
Gross profit 82,206 - - 82,206
-------- ------ ------- --------
Other costs and expenses:
Research and development 22,335 604 1,866 24,805
Marketing, general and
administrative 14,028 177 520 14,725
Amortization of goodwill 307 - - 307
Amortization of deferred
stock compensation 579 24 2,718 3,321
------- ----- -------- -------
Income (loss) from operations 44,957 (805) (5,104) 39,048
Interest and other income, net 3,723 (62) (15) 3,646
--------- ------ ------- --------
Income (loss) before provision
for income taxes 48,680 (867) (5,119) 42,694
Provision for income taxes 14,516 - - 14,516
-------- ------- -------- --------
Net income (loss) $ 34,164 $(867) $(5,119) $28,178
======== ======= ======== ========
Diluted net income per share $ 0.21 - - $ 0.17
Shares used to calculate
diluted net income per share 161,701 299 4,593 166,593
*T
--30--APS/se*
CONTACT: PMC-Sierra
John W. Sullivan, 604/415-6145
Fax, 604/415-6240
Sullivan@pmc-sierra.co |
