SUNNYVALE, Calif.– PMC, the semiconductor innovator transforming networks that connect, move and store big data, today reported results for the second quarter ended July 1, 2012.
Net revenues in the second quarter of 2012 were $137.8 million, an increase of 4% as compared to net revenues of $132.1 million in the first quarter of 2012 and a decrease of 19% compared to $171 million in the second quarter of 2011.
GAAP net income in the second quarter of 2012 was $26.5 million, or $0.12 per diluted share, including a $28.5 million benefit from the recognition of certain U.S. tax credits, mainly arising from foreign withholding taxes paid in the second quarter related to the intercompany dividend noted below. This compares to a GAAP net loss in the first quarter of 2012 of $96.3 million, or $0.41 per share, including $85.4 million income tax provision related to an intercompany dividend made in preparation for funding the Company’s share repurchase program. Non-GAAP net income in the second quarter of 2012 was $21.3 million, or $0.09 per diluted share, compared to non-GAAP net income of $14 million, or $0.06 per diluted share, in the first quarter of 2012.
Non-GAAP net income in the second quarter of 2012 excludes the following items: (i) $7.3 million in stock-based compensation expense; (ii) $1.1 million in acquisition-related costs; (iii) $0.3 million in termination costs; (iv) $0.3 million in lease exit costs; (v) $11.6 million in amortization of purchased intangible assets; (vi) a $1.1 million foreign exchange gain on foreign tax liabilities; (vii) $0.9 million of non-cash interest expense for the accretion of the debt discount related to the senior convertible notes; and (viii) a $25.7 million recovery of income taxes.
“Our second quarter revenues were in line with expectations.” said Greg Lang, president and chief executive officer of PMC. “The macro environment is challenging the pace of recovery but we are focused on project execution, operational efficiency and tightly managing expenses. PMC is well positioned as the fundamentals behind our key growth drivers remain intact.”