7/21/2003 - PMC-Sierra(TM), Inc. (NASDAQ:PMCS - News) reported results for the second quarter of 2003. The Company's net revenues in the second quarter of 2003 were $60.4 million compared to $55.4 million in the first quarter of 2003 and $54.5 million in the same period one year ago. In the second quarter of 2003, net revenues were comprised of $59.6 million of networking revenue and $0.8 million of non-networking revenue.
Non-GAAP net loss in the second quarter of 2003 was $3.9 million (non-GAAP net loss per share of $0.02) compared to non-GAAP net loss of $6.9 million (non-GAAP net loss per share of $0.04) in the prior quarter. GAAP net loss in the second quarter of 2003 was $9.2 million (GAAP net loss per share of $0.05). This compares to GAAP net loss of $11.5 million in the first quarter of 2003 (GAAP net loss per share of $0.07).
Non-GAAP net loss in the second quarter of 2003 excludes the following items: (i) a charge of $7.3 million related to the corporate restructuring announced by the Company in January 2003; (ii) a gain on sale of other investments of $5.5 million; (iii) a $3.5 million charge for the impairment of other investments; and (iv) $0.01 million in amortization of deferred stock compensation. For a full reconciliation of GAAP versus non-GAAP net loss for the first and second quarters of 2003 as well as the second quarter of 2002, please see the schedule on page 6 of this release.
"PMC-Sierra's revenue increased in the second quarter as activity in the service provider sector improved modestly in both Asia and North America," said Bob Bailey, chairman and chief executive officer of PMC-Sierra. "Our continued commitment to investing in next-generation metro transport, MIPS-based(TM) microprocessors, and storage systems related products has resulted in 13 new products being introduced this past quarter."
Termination of Office Lease Obligation
On July 8, 2003, PMC-Sierra announced that it completed a transaction that resulted in the elimination of its lease obligation related to the Mission Towers Two building located at Freedom Circle in Santa Clara, CA. As part of the transaction, PMC-Sierra purchased and resold the facility at a net cost of approximately $102 million to the Company. The transaction eliminates the Company's remaining rental commitments for the building of about $215 million that would have been paid through December 2011. In the fourth quarter of 2001, the Company recorded a restructuring charge related to excess facilities. The final settlement costs of terminating Mission Towers Two and other facility leases are expected to be slightly less than the initial estimates accrued in 2001.
New Products Announced in Second Quarter of 2003 Include the Following:
PMC-Sierra is a leading provider of high speed broadband communications and storage semiconductors and MIPS-based(TM) processors for Enterprise, Access, Metro Optical Transport, Storage Area Networking and Wireless network equipment. The Company offers worldwide technical and sales support, including a network of offices throughout North America, Europe and Asia. PMC-Sierra is included in the S&P 500 Index which consists of 500 stocks chosen for market size, liquidity, and industry group representation. The Company is publicly traded on the NASDAQ Stock Market under the PMCS symbol. For more information, visit www.pmc-sierra.com.
QuadPHY and SUNI are registered trademarks of PMC-Sierra, Inc. PMC-Sierra, PMC, PMCS and Thinking you can build on, TSE and TUPP are trademarks of PMC-Sierra, Inc.
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