PMC-Sierra, Inc. (PMC®) (Nasdaq: PMCS), the semiconductor and software solutions innovator transforming networks that connect, move and store big data, today reported results for the second quarter ended June 28, 2014.
Net revenues in the second quarter of 2014 totaled $126.8 million, an increase of 0.2 percent from $126.5 million in the first quarter of 2014, and a decrease of 1.0 percent compared to $127.6 million in the second quarter of 2013.
GAAP net loss in the second quarter of 2014 totaled $3.5 million, or $0.02 per share, compared to a GAAP net loss in the first quarter of 2014 of $4.2 million, or $0.02 per share.
Non-GAAP net income in the second quarter of 2014 totaled $18.3 million, or $0.09 per diluted share, compared to non-GAAP net income of $16.0 million, or $0.08 per diluted share in the first quarter of 2014.
“We have closed another solid quarter with both revenue and non-GAAP EPS above the midpoint of our expectations. Strength in both our Optical and Mobile products more than offset lower revenue from our Storage products due to inventory consumption at two of our larger customers,” said Greg Lang, PMC president and chief executive officer. “As we look to the balance of 2014, we believe we will see four key areas contribute to growth: 12G SAS, Flash Controllers, OTN and RF products. After years of investment, we are pleased to see these product cycles take hold, fueled by the continued escalation of data traffic.”
Net income on a non-GAAP basis in the second quarter of 2014 excludes the following items: (i) $9.9 million amortization of purchased intangible assets; (ii) $4.9 million stock-based compensation expense, (iii) $1.6 million of termination related expense, and other adjustments as described in the accompanying GAAP to non-GAAP reconciliation table.
For a full reconciliation of each non-GAAP item used herein to the most directly comparable GAAP financial measure, please refer to the schedule included with this release. The Company believes the additional non-GAAP measures are useful to investors for the purpose of financial analysis. Management uses the non-GAAP measures internally to evaluate its in-period operating performance before gains, losses and other charges that are considered by management to be outside of the Company’s core operating results. In addition, the measures are used to plan for the Company’s future periods. However, non-GAAP measures are neither stated in accordance with, nor are they a substitute for, GAAP measures.
SECOND QUARTER AND RECENT 2014 HIGHLIGHTS
The Company made the following second quarter and recent announcements:
- On July 15, PMC joined AT&T, Ciena and Verizon on a panel at the Lightwave Optical Summit in Austin, Texas, to discuss the state of 100G OTN networking and deployment readiness, and what is beyond 100G. The discussion topics included the latest developments in equipment, optics and OTN processing semiconductors, and software-defined networking.
- On May 22, PMC hosted a Storage and Connectivity Innovation Summit at the China Cloud Computing Conference in Beijing, China. PMC was joined by Alibaba Group, C3, Inspur Group, Wiwynn Corporation and Yttibrium and discussed its scalable and flexible solutions that can be tailored to each of the varied requirements across all of China’s hyperscale data centers. Specific topics discussed included hybrid and pure flash storage to accelerate applications, scalable and flexible architectures geared towards open applications and software-defined storage, and tiering data to deliver efficient and cost-effective storage.
- On May 21, PMC hosted a panel with China Mobile Research Institute to discuss the State of OTN Network Deployments at the Optinet China Conference. Specific topics discussed were the 100G ecosystem and how PMC’s DIGI 120G enabled the maturity of the ecosystem and facilitated China Mobile Communications Corporation’s (CMCC) network deployment, continued scalability and transmission beyond 100G, and software-defined networking.