PMC® (Nasdaq:PMCS), the semiconductor innovator transforming networks that connect, move and store big data, today reported results for the third quarter ended September 30, 2012.
Net revenues in the third quarter of 2012 were $131.7 million, a decrease of 4% compared to net revenues of $137.8 million in the second quarter of 2012 and a decrease of 24% compared to $173.3 million in the third quarter of 2011.
GAAP net loss in the third quarter of 2012 was $274.4 million, or a loss of $1.31 per share. Third quarter GAAP results included impairment write-downs of goodwill and intangible assets of $276.1 million related to the Passave and Wintegra acquisitions, completed in 2006 and 2010, respectively. This compares to a GAAP net income of $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 of 2012.
Non-GAAP net income in the third quarter of 2012 was $21.4 million, or $0.10 per diluted share, compared to non-GAAP net income of $21.3 million, or $0.09 per diluted share, in the second quarter of 2012.Non-GAAP net income in the third quarter of 2012 excludes the following items: (i) $6.1 million in stock-based compensation expense; (ii) $1.1 million in acquisition-related costs; (iii) $1.4 million in termination costs; (iv) $0.9 million in asset impairments; (v) $1.8 million in lease exit costs; (vi) $11.6 million in amortization of purchased intangible assets; (vii) a $2.1 million foreign exchange loss on foreign tax liabilities; (viii) $1 million of non-cash interest expense for the accretion of the debt discount related to the senior convertible notes; (ix) a $6.3 million recovery of income taxes; and (x) a $276.1 million impairment of goodwill and purchased intangible assets . “Our third quarter results were in line with expectations despite a tough macro environment,” said Greg Lang, president and chief executive officer of PMC. “With business uncertainty weighing on infrastructure purchases in every geography and market segment, we remain focused on best-in-class product execution, design wins and controlling operating expenses.”