Pericom Semiconductor Goes Negative

Pericom Semiconductor (NAS: PSEM) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Pericom Semiconductor missed estimates on revenue and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share shrank to a loss.

Gross margins expanded, operating margins dropped, and net margins contracted.

Revenue details
Pericom Semiconductor tallied revenue of $30.5 million. The three analysts polled by S&P Capital IQ anticipated net sales of $32.4 million. Sales were 25% lower than the prior-year quarter's $40.7 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at -$0.01. The two earnings estimates compiled by S&P Capital IQ averaged -$0.01 per share. GAAP EPS were -$0.01 for Q2 compared to $0.07 per share for the prior-year quarter.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 36.0%, 250 basis points better than the prior-year quarter. Operating margin was -4.5%, 840 basis points worse than the prior-year quarter. Net margin was -1.1%, 560 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $32.8 million. On the bottom line, the average EPS estimate is $0.01.

Next year's average estimate for revenue is $138.3 million. The average EPS estimate is $0.07.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 125 members out of 127 rating the stock outperform, and two members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all of them give the stock a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pericom Semiconductor is buy, with an average price target of $13.00.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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