Q4 and full year 2014 earnings announcement
call live on http://investor.pmcs.com at 1:30 p.m.
PT
Conference call: 1 (888) 337-8169 or
1 (719) 325-2455 outside North America; passcode 2692388#
Replay available shortly after end of
conference call through February 28, 2015
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 fourth
quarter and full year ended December 27, 2014.
Net revenues in the fourth quarter of 2014 totaled $136.9
million, an increase of one percent from $135.5 million in the
third quarter of 2014 and an increase of 7.9 percent, compared to
$126.9 million in the fourth quarter of 2013. Storage product
revenues in the fourth quarter of 2014 totaled $98.4 million, an
increase of 8.3 percent from $90.9 million in the fourth quarter of
2013.
GAAP net income in the fourth quarter of 2014
totaled $2.3 million or $0.01 per diluted share, compared to a GAAP
net income in the third quarter of 2014 of $5.5 million or $0.03
per diluted share.
Non-GAAP net income in the fourth quarter of 2014 totaled
$22.7 million or $0.11 per diluted share, compared to non-GAAP net
income of $22.5 million or $0.11 per diluted share in the third
quarter of 2014.
“Due to strong Storage and record OTN revenues in the fourth
quarter, we grew revenue eight percent over the same quarter last
year,” said Greg Lang, PMC president and chief executive officer.
“And each of our four major growth drivers started contributing
revenue in 2014, positioning PMC for continued growth in 2015.”
Net income on a non-GAAP basis in the fourth quarter of
2014 excludes the following items: (i) $6.8 million stock-based
compensation expense, (ii) $11 million amortization of purchased
intangible assets; (iii) $2.7 million foreign exchange gain on
foreign tax liabilities; (iv) $3.9 million provision for income tax
matters; and (v) $1.3 million other adjustments as described in the
accompanying GAAP to non-GAAP reconciliation table.
For the full year ended December 27, 2014, net revenues
were $525.6 million, compared to $508.0 million for the year ended
December 28, 2013, an increase of 3.5 percent year over year. GAAP
operating income for the full year 2014 was $11.1 million compared
to GAAP operating loss of $13.2 million reported in the year ended
December 28, 2013. Non-GAAP operating income for the full year 2014
was $83.1 million compared to non-GAAP operating income of $68.4
million the prior year. GAAP net income for the full year 2014 was
$0.1 million, or $0.00 per diluted share, compared to GAAP net loss
of $32.3 million, or $0.16 loss per share the prior year. Non-GAAP
net income in the year ended December 27, 2014, was $79.5 million
or $0.40 per diluted share, compared to non-GAAP net income of
$68.3 million or $0.33 per diluted share in the year ended December
28, 2013.
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.
FOURTH QUARTER AND 2014 HIGHLIGHTS
The Company announced the following in the fourth quarter and
full year 2014:
- On Dec. 3, PMC hosted a Flash
Technology Forum in Beijing, where speakers from Sina, Inspur,
China Telecom, Memblaze and PMC discussed the latest innovations
and use cases for deploying flash to accelerate storage in China’s
data centers.
- On Dec. 1, PMC announced that Memblaze
Technology Co. Ltd, a leading provider of flash storage solutions,
is utilizing PMC’s Flashtec™ NVMe controllers in its
next-generation PCI Express® (PCIe®) flash accelerators. The
Flashtec-based Memblaze PBlaze4 products are targeted at hyperscale
and Open Compute Project deployments.
- On Nov. 24, PMC announced that Lenovo
selected PMC storage solutions for external connectivity across its
ThinkServer portfolio. The Lenovo 8885E by PMC card delivers the
full throughput of 12Gb/s SAS and 6.6GB/s PCIe® to maximize the
performance of ThinkServer scale-out storage. The card is offered
on Lenovo rack and tower servers.
- On Sept. 17, PMC was first to ship
16-port 12Gb/s SAS and 16-port 6Gb/s SATA I/O controller solutions.
PMC’s data center I/O products enable OEMs and ODMs to design
cost-effective customized server hardware for hyperscale
deployments, such as Open Compute, Windows Cloud Servers, OpenStack
and Project Scorpio. The devices have the industry’s highest port
density, lowest power and are capable of more than 1,000,000 I/Os
per second (IOPS) to support the most demanding cloud software
applications.
- On Sept. 4, PMC announced that the
Company executed an agreement with HP to license core HP Smart
Array software, firmware and management technology. PMC will
leverage this technology to provide more system value to new and
existing server storage and data center customers. This transaction
also positions PMC as the supplier of key storage solution
components across HP ProLiant Gen9 and beyond.
- On Aug. 26, PMC introduced the
industry’s first 12Gb/s SAS expander card to enable
density-optimized servers, the fastest growing segment of the
worldwide server market according to IDC. The Adaptec® 12Gb/s SAS
expander card enables flexible, high-density server architectures
that can expand as data center storage needs grow. It provides 36
ports in a PCIe® low-profile form factor.
- On Aug. 5, PMC established a new
ultra-fast storage class memory tier to accelerate critical
applications in scale-out storage and all-flash arrays. The PMC
Flashtec™ NVRAM Drives combine the speed and endurance of DRAM with
the persistency of NAND flash to deliver ten times higher
performance than the fastest Solid State Drive (SSD), at more than
10 million IOPS, with sub-microsecond latency. Leveraging PCIe®
3.0, the Flashtec NVRAM Drives connect directly to the host to
optimize CPU utilization and maximize overall system
performance.
- On Mar. 10, PMC announced the
successful interoperability of its DIGI 120G OTN processor and
Acacia’s AC100 100G Coherent module, enabling mass deployment of
100G OTN in metro networks, unlocking a 10-fold increase in fiber
capacity and eliminating the need for new fiber. Demonstrating
interoperability with Acacia’s module was an important step to show
ecosystem readiness for the 100G transition.
Fourth Quarter and Full Year 2014 Conference Call
Management will review fourth quarter and full year 2014 results
and share its outlook for the first quarter of 2015 during a
conference call at 1:30 p.m. Pacific Time/4:30 p.m. Eastern Time on
January 29, 2015. The conference call webcast will be accessible
under the Financial News and Events section at
http://investor.pmcs.com. To listen to the conference call by
telephone, dial 1 (888) 337-8169 or 1 (719) 325-2455 outside North
America with passcode 2692388# approximately ten minutes before the
start time. A telephone playback will be available until February
28, 2015, and can be accessed at 1 (888) 203-1112 or 1 (719)
457-0820 outside North America using passcode 2692388#.
PMC will be attending the Stifel, Nicolaus & Co.’s 2015
Technology, Internet & Media Conference on February 9, 2015, at
the Westin St. Francis in San Francisco, as well as the Goldman
Sachs Technology & Internet Conference on February 10, at the
Palace Hotel in San Francisco. Steve Geiser, the Company’s vice
president and chief financial officer, will be available both days
for individual investor meetings. He will also participate in
fireside chats and Q&As during both events, which will be
webcast simultaneously at http://investor.pmcs.com.
Safe Harbor Statement
This release contains forward-looking statements that involve
risks and uncertainties. The Company’s SEC filings, including the
Company’s most recent reports on Form 10-K and Form 10-Q, describe
the risks associated with the Company’s business, including PMC’s
limited revenue visibility due to variable customer demands, market
segment growth or decline, orders with short delivery lead times,
customer concentration, changes in inventory, and other items such
as tax rates, foreign exchange rates and volatility in global
financial markets.
About PMC
PMC (Nasdaq:PMCS) is the semiconductor and software solutions
innovator transforming networks that connect, move and store big
data. Building on a track record of technology leadership, the
Company is driving innovation across storage, optical and mobile
networks. PMC’s highly integrated solutions increase
performance and enable next-generation services to accelerate the
network transformation. For more information, visit www.pmcs.com.
Follow PMC on Facebook, Twitter, LinkedIn and RSS.
© Copyright PMC-Sierra, Inc. 2015. All rights reserved. PMC,
PMC-SIERRA and ADAPTEC are registered trademarks of PMC-Sierra,
Inc. in the United States and other countries, PMCS and FLASHTEC
are trademarks of PMC-Sierra, Inc. PMC disclaims any ownership
rights in other product and company names mentioned herein. PMC is
the corporate brand of PMC-Sierra, Inc.
PMC-Sierra,
Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in
thousands, except for per share amounts) (unaudited)
Three Months Ended Twelve Months Ended December
27, September 27, December 28, December
27, December 28, 2014
2014 2013
2014 2013 Net
revenues $ 136,851 $ 135,462 $ 126,872 $ 525,603 $ 508,028 Cost of
revenues 40,702 40,306 37,349
155,396 149,213 Gross profit
96,149 95,156 89,523 370,207 358,815 Gross profit % 70 % 70
% 71 % 70 % 71 % Research and development 50,942 48,441
54,009 198,919 211,047 Selling, general and administrative 29,411
29,265 27,768 117,007 112,770 Amortization of purchased intangible
assets 10,994 9,948 13,547
43,219 48,245 Income (loss) from
operations 4,802 7,502 (5,801 ) 11,062 (13,247 ) Foreign
exchange gain 2,866 899 2,363 3,508 4,043 Amortization of debt
issue costs (51 ) (51 ) (50 ) (204 ) (80 ) Amortization of discount
on long-term obligation (350 ) - - (350 ) - Interest income, net 2
198 83 323 907 Gain on investment securities and other investments
68 12 103 155
1,879 Income (loss) before provision for
income taxes 7,337 8,560 (3,302 ) 14,494 (6,498 ) Provision for
income taxes (5,007 ) (3,087 ) (12,377 )
(14,412 ) (25,756 ) Net income (loss) $ 2,330
$ 5,473 $ (15,679 ) $ 82 $ (32,254 ) Net
income (loss) per common share - basic and diluted $ 0.01 $ 0.03 $
(0.08 ) $ 0.00 $ (0.16 ) Shares used in per share
calculation - basic 198,625 197,613 201,615 196,885 203,882 Shares
used in per share calculation - diluted 201,935 200,744 201,615
200,145 203,882
As a supplement to the Company's condensed
consolidated financial statements presented in accordance with
generally accepted accounting principles ("GAAP"), the Company
provides additional non-GAAP measures for cost of revenues, gross
profit, gross profit percentage, research and development expense,
selling, general and administrative expense, amortization of
purchased intangible assets, other income (expense), (provision
for) recovery of income taxes, operating expenses, operating income
(loss), operating margin percentage, net income (loss), and basic
and diluted net income (loss) per share.
A non-GAAP financial measure is a numerical
measure of a company's performance, financial position, or cash
flows that either excludes or includes amounts that are not
normally excluded or included in the most directly comparable
measure calculated and presented in accordance with GAAP. The
Company believes that the additional non-GAAP measures are useful
to investors for the purpose of financial analysis. Management uses
these measures internally to evaluate the Company's 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 for planning
and forecasting of the Company's future periods. However, non-GAAP
measures are not in accordance with, nor are they a substitute for,
GAAP measures. Other companies may use different non-GAAP measures
and presentation of results.
PMC-Sierra, Inc. Adjustments to GAAP Cost of Revenues,
Gross Profit, Gross Profit Percentage, Research and Development
Expense, Selling, General and Administrative Expense,
Amortization of Purchased Intangible Assets, Other Income,
Provision for Income Taxes, Operating Expenses, Operating Income
(Loss), Net Income (Loss), and Basic and Diluted Net Income
(Loss) Per Share (in thousands, except for per share amounts)
(unaudited)
Three Months Ended
Twelve Months Ended December 27, September 27,
December 28, December 27, December 28,
2014 (1)
2014 (2)
2013 (3)
2014 (4)
2013 (5)
GAAP cost of revenues $ 40,702 $
40,306 $ 37,349 $ 155,396 $ 149,213 Stock-based compensation (285 )
(226 ) (256 ) (966 ) (899 ) Acquisition-related costs - - (5 ) -
(800 ) Termination and separation (costs) recoveries - - (171 ) 9
(171 ) Reversal of accruals - -
- - 2,300
Non-GAAP cost of
revenues $ 40,417 $ 40,080 $ 36,917 $
154,439 $ 149,643
GAAP gross profit $
96,149 $ 95,156 $ 89,523 $ 370,207 $ 358,815 Stock-based
compensation 285 226 256 966 899 Acquisition-related costs - - 5 -
800 Termination and separation costs (recoveries) - - 171 (9 ) 171
Reversal of accruals - - -
- (2,300 )
Non-GAAP gross profit
$ 96,434 $ 95,382 $ 89,955 $ 371,164 $
358,385
Non-GAAP gross profit % 70 % 70 % 71 %
71 % 71 %
GAAP research and development expense $
50,942 $ 48,441 $ 54,009 $ 198,919 $ 211,047 Stock-based
compensation (2,880 ) (1,990 ) (2,854 ) (9,420 ) (11,095 )
Acquisition-related costs (423 ) (356 ) (1,071 ) (2,373 ) (2,812 )
Termination and separation recoveries (costs) 8 28 (2,690 ) (248 )
(4,138 ) Reversal of accruals 342 - - 342 2,890 Lease exit
recoveries 29 - - 29 - Asset impairment - -
(508 ) - (508 )
Non-GAAP
research and development expense $ 48,018 $ 46,123
$ 46,886 $ 187,249 $ 195,384
GAAP selling, general and administrative expense $ 29,411 $
29,265 $ 27,768 $ 117,007 $ 112,770 Stock-based compensation (3,682
) (3,012 ) (3,694 ) (12,795 ) (14,271 ) Acquisition-related costs
(261 ) (669 ) (39 ) (994 ) (1,122 ) Lease exit costs (5 ) (31 ) (48
) (182 ) (48 ) Termination and separation (costs) recoveries (645 )
254 (1,282 ) (1,689 ) (1,784 ) Reversal of accruals - - 1,300 -
1,300 Asset impairment - - (639 ) (477 ) (2,214 ) Other
nonrecurring expenses - - -
(58 ) -
Non-GAAP selling, general
and administrative expense $ 24,818 $ 25,807 $
23,366 $ 100,812 $ 94,631
GAAP
amortization of purchased intangible assets $ 10,994 $ 9,948 $
13,547 $ 43,219 $ 48,245 Amortization of purchased intangible
assets (10,994 ) (9,948 ) (13,547 )
(43,219 ) (48,245 )
Non-GAAP amortization of purchased
intangible assets $ - $ - $ - $ - $
-
GAAP other income $ 2,535 $ 1,058 $ 2,499 $
3,432 $ 6,749 Foreign exchange gain on foreign tax liabilities
(2,665 ) (1,081 ) (2,564 ) (3,649 ) (4,697 ) Gain on disposal of
investments (26 ) - - (26 ) (1,762 ) Amortization of discount on
long-term obligations 350 - -
350 -
Non-GAAP other income
(expense) $ 194 $ (23 ) $ (65 ) $ 107 $ 290
GAAP provision for income taxes $ 5,007 $
3,087 $ 12,377 $ 14,412 $ 25,756 Provision for income tax matters
(3,900 ) (2,178 ) (11,760 ) (10,739 )
(25,396 )
Non-GAAP provision for income taxes $ 1,107
$ 909 $ 617 $ 3,673 $ 360
GAAP operating expenses $ 91,347 $ 87,654 $ 95,324 $ 359,145
$ 372,062 Stock-based compensation (6,562 ) (5,002 ) (6,548 )
(22,215 ) (25,366 ) Acquisition-related costs (684 ) (1,025 )
(1,110 ) (3,367 ) (3,934 ) Asset impairment - - (1,147 ) (477 )
(2,722 ) Lease exit recoveries (costs) 24 (31 ) (48 ) (153 ) (48 )
Termination and separation (costs) recoveries (637 ) 282 (3,972 )
(1,937 ) (5,922 ) Reversal of accruals 342 - 1,300 342 4,190
Amortization of purchased intangible assets (10,994 ) (9,948 )
(13,547 ) (43,219 ) (48,245 ) Other nonrecurring expenses -
- - (58 ) -
Non-GAAP operating expenses $ 72,836 $ 71,930
$ 70,252 $ 288,061 $ 290,015
GAAP
operating income (loss) $ 4,802 $ 7,502 $ (5,801 ) $ 11,062 $
(13,247 ) Stock-based compensation 6,847 5,228 6,804 23,181 26,265
Acquisition-related costs 684 1,025 1,115 3,367 4,734 Asset
impairment - - 1,147 477 2,722 Reversal of accruals (342 ) - (1,300
) (342 ) (6,490 ) Lease exit (recoveries) costs (24 ) 31 48 153 48
Termination and separation costs (recoveries) 637 (282 ) 4,143
1,928 6,093 Amortization of purchased intangible assets 10,994
9,948 13,547 43,219 48,245 Other nonrecurring expenses -
- - 58 -
Non-GAAP operating income $ 23,598 $ 23,452
$ 19,703 $ 83,103 $ 68,370
Non-GAAP operating margin 17 % 17 % 16 % 16 % 13 %
Three Months Ended Twelve Months Ended
December 27, September 27, December 28,
December 27, December 28,
2014 (1)
2014 (2)
2013 (3)
2014 (4)
2013 (5)
GAAP net income (loss) $ 2,330 $ 5,473 $ (15,679 ) $
82 $ (32,254 ) Stock-based compensation 6,847 5,228 6,804 23,181
26,265 Acquisition-related costs 684 1,025 1,115 3,367 4,734
Termination and separation costs (recoveries) 637 (282 ) 4,143
1,928 6,093 Asset impairment - - 1,147 477 2,722 Reversal of
accruals (342 ) - (1,300 ) (342 ) (6,490 ) Lease exit (recoveries)
costs (24 ) 31 48 153 48 Amortization of purchased intangible
assets 10,994 9,948 13,547 43,219 48,245 Foreign exchange gain on
foreign tax liabilities (2,665 ) (1,081 ) (2,564 ) (3,649 ) (4,697
) Gain on disposal of investments (26 ) - - (26 ) (1,762 )
Amortization of discount on long-term obligation 350 - - 350 -
Other nonrecurring expenses - - - 58 - Provision for income tax
matters 3,900 2,178 11,760
10,739 25,396
Non-GAAP net
income $ 22,685 $ 22,520 $ 19,021 $ 79,537
$ 68,300
Non-GAAP net income per share -
basic $ 0.11 $ 0.11 $ 0.09 $ 0.40 $ 0.33
Non-GAAP net income
per share - diluted $ 0.11 $ 0.11 $ 0.09 $ 0.40 $ 0.33
Shares used to calculate non-GAAP net income per share -
basic 198,625 197,613 201,615 196,885 203,882 Shares used to
calculate non-GAAP net income per share - diluted 201,935 200,744
203,047 200,145 205,841
(1) $6.8 million stock-based compensation expense; $0.7 million
acquisition-related costs; $0.6 million termination and separation
costs; $0.3 million reversal of accrual; $0.1 million lease exit
recoveries; $11 million amortization of purchased intangible
assets; $2.7 million foreign exchange gain on foreign tax
liabilities; $0.1 million gain on disposal of investment; $0.3
million amortization of discount on long-term obligations; and $3.9
million provision for income taxes which includes $4 million
arrears interest relating to unrecognized tax benefits, $2.7
million income tax provision related to prepaid tax amortization,
and $5.2 million income tax provision related to tax deductible
goodwill, and $8 million income tax recovery related to change in
valuation allowance and other deductible items above.
(2) $5.2 million stock-based compensation expense; $1 million
acquisition-related costs; $0.3 million recovery of termination and
separation costs; $9.9 million amortization of purchased intangible
assets; $1.1 million foreign exchange gain on foreign tax
liabilities; $0.1 million lease exit costs; and $2.2 million
provision for income taxes which includes $0.9 million income tax
provision related to unrecognized tax benefits, $1.1 million income
tax provision related to prepaid tax amortization, and $0.2 million
income tax provision from adjustments related to prior periods.
(3) $6.8 million stock-based compensation expense; $1.1 million
acquisition-related costs; $4.1 million termination and separation
costs; $1.2 million asset impairment; $1.3 million reversal of
accrual; $0.1 million lease exit costs; $13.5 million amortization
of purchased intangible assets; $2.6 million foreign exchange gain
on foreign tax liabilities; and $11.8 million provision for income
taxes which includes $1.9 million income tax recovery relating to
intercompany transactions, $2.5 million income tax recovery for
adjustments relating to prior periods and changes in estimates,
$0.9 million arrears interest relating to unrecognized tax
benefits, $3.3 million provision related to non-deductible
intangible asset amortization, $0.7 million income tax provision
relating to foreign exchange translation of a foreign subsidiary,
$10.4 million deferred tax effect related to changes in assessments
for certain income tax credits, and $0.9 million income tax
provision related to tax deductible goodwill and other items
above.
(4) $23.2 million stock-based compensation expense; $3.4 million
acquisition-related costs; $1.9 million termination and separation
costs; $0.5 million asset impairment; $0.3 million reversal of
accruals; $0.2 million lease exit costs; $43.2 million amortization
of purchased intangible assets; $3.6 million foreign exchange gain
on foreign tax liabilities; $0.1 million gain on disposal of
investment; $0.3 million amortization of discount on long-term
obligations; $0.1 million other nonrecurring expenses; and $10.7
million provision for income taxes which includes $6.5 million
arrears interest relating to unrecognized tax benefits, $5.7
million income tax provision related to prepaid tax amortization,
$6.5 million income tax provision related to tax deductible
goodwill, and $8 million income tax recovery related to change in
valuation allowance and other deductible items above.
(5) $26.3 million stock-based compensation expense; $4.8 million
acquisition-related costs and deferred tax effects; $6.1 million
termination and separation costs; $2.8 million asset impairment;
$6.5 million reversal of accruals; $0.1 million lease exit costs;
$48.2 million amortization of purchased intangible assets; $4.7
million foreign exchange gain on foreign tax liabilities; $1.8
million gain on disposal of investment and $25.4 million provision
for income taxes which includes $0.2 million income tax provision
relating to intercompany transactions, $2.6 million arrears
interest relating to unrecognized tax benefits, $11.7 million
provision related to non-deductible intangible asset amortization
and impairment, $2 million income tax recovery for adjustments
relating to prior periods and changes in estimates, $1.2 million
income tax provision relating to foreign exchange translation of a
foreign subsidiary, $10.4 million deferred tax effect related to
change in assessment for certain income tax credit, and $1.3
million income tax provision related to tax deductible goodwill and
other items above.
PMC-Sierra, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
(unaudited)
December 27, December 28,
2014 2013 ASSETS:
Current assets: Cash and cash equivalents $ 112,570 $ 100,038
Short-term investments 45,885 10,894
Cash, cash equivalents and short-term investments 158,455 110,932
Accounts receivable, net 55,414 56,112 Inventories, net 37,949
31,074 Prepaid expenses and other current assets 16,473 19,855
Income tax receivable 1,968 2,640 Prepaid tax expense 51 5,695
Deferred tax assets(1)
4,079 43,131 Total current assets
274,389 269,439 Investment securities 107,509 103,391
Investments and other assets 7,683 10,750 Prepaid tax expense 42 93
Property and equipment, net 37,311 39,149 Goodwill and other
intangible assets, net 426,919 425,823 Deferred tax assets (1)
13,412 1,306 Long-term income tax receivable 457
- $ 867,722 $ 849,951
LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts
payable $ 23,360 $ 23,173 Accrued liabilities 74,135 64,257 Credit
facility - 30,000 Income taxes payable 1,062 632 Liability for
unrecognized tax benefit (1) 16,076 54,127 Current deferred income
taxes 7,644 71 Deferred income 4,530 7,481
Total current liabilities 126,807 179,741 Long-term
obligations 36,305 11,108 Deferred income taxes 52,130 43,143
Liability for unrecognized tax benefit
(1)
25,244 27,947 PMC special shares convertible into 278 (2013
- 1,019) 745 1,188 shares of common stock Stockholders'
equity: Common stock and additional paid in capital 1,595,809
1,550,385 Accumulated other comprehensive loss (2,355 ) (526 )
Accumulated deficit (966,963 ) (963,035 ) Total
stockholders' equity 626,491 586,824 $
867,722 $ 849,951 (1) Effective from
the beginning of the first quarter of 2014, the Company adopted
Financial Accounting Standards Board's Accounting Standards Update
(“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit
When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax
Credit Carryforward Exists.” Approximately $44 million of deferred
tax assets of a foreign subsidiary were derecognized along with the
related liability for unrecognized tax benefits as a result of this
presentation adoption, with no impact to the Condensed Consolidated
Statements of Operations.
PMC-Sierra, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in
thousands) (unaudited)
Twelve Months Ended
December 27, December 28, 2014
2013 Cash flows from operating
activities: Net loss $ 82 $ (32,254 ) Adjustments to reconcile
net income (loss) to net cash provided by operating activities:
Depreciation and amortization 65,477 71,432 Stock-based
compensation 23,181 26,264 Unrealized foreign exchange gain, net
(5,846 ) (2,251 ) Net amortization of premiums and accrued interest
of investments 718 1,580 Asset impairments 770 2,966 Gain on
investment securities and other investments (131 ) (1,796 ) Loss on
disposal of property and equipment 4 6 Amortization of discount on
long-term obligations 350 - Excess tax benefits from stock option
transactions - (842 ) Changes in operating assets and
liabilities: Accounts receivable, net 598 6,330 Inventories, net
(6,875 ) (3,625 ) Prepaid expenses and other current assets 1,349
1,315 Accounts payable and accrued liabilities 878 (5,551 )
Deferred income taxes and income taxes receivables/payables 12,970
15,900 Deferred income (2,951 ) (632 ) Net cash
provided by operating activities 90,574 78,842
Cash flows from investing activities: Business
acquisition (10,000 ) (96,098 ) Investment in long term deposits -
(1,127 ) Purchases of property and equipment (13,945 ) (16,851 )
Purchases of intangible assets (1,437 ) (3,979 ) Redemption of
short-term investments 5,670 8,466 Disposals of investment
securities and other investments 61,695 162,773 Purchases of
investment securities and other investments (106,076 )
(179,837 ) Net cash used in investing activities
(64,093 ) (126,653 )
Cash flows from financing
activities: Payment of debt issuance costs - (928 ) Proceeds
from credit facility 30,000 30,000 Repayment of credit facility
(60,000 ) - Proceeds from issuance of common stock 29,175 25,247
Repurchases of common stock (11,496 ) (76,335 ) Excess tax benefits
from stock option transactions - 842
Net cash used in financing activities (12,321 )
(21,174 ) Effect of exchange rate changes on cash and cash
equivalents (1,628 ) (947 ) Net increase (decrease) in cash and
cash equivalents 12,532 (69,932 ) Cash and cash equivalents,
beginning of the period 100,038 169,970
Cash and cash equivalents, end of the period $ 112,570 $
100,038
PMC-Sierra, Inc.Joel Achramowicz, 1-408-239-8630Director,
Investor RelationsJoel.Achramowicz@pmcs.comorKim Mason,
1-604-415-6239Manager, Corporate
CommunicationsKim.Mason@pmcs.com
PMC Sierra (NASDAQ:PMCS)
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PMC Sierra (NASDAQ:PMCS)
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