COMPANY PRESS RELEASE: PMC-Sierra, has reported net revenues of $47.2 million and a pro forma net loss per share of $0.15 for the fourth quarter of 2001.
Net revenues decreased 23% compared to $61.6 million in the third quarter of 2001. Pro forma net loss for the fourth quarter of 2001 was $25.8 million compared to a pro forma net loss of $26.8 million in the prior quarter.
For the year ended December 30, 2001 net revenues were $322.7 million compared to $694.7 million for the year ended December 31, 2000. Pro forma net loss in 2001 was $61.6 million or a net loss per share of $0.37 compared to net income of $179.4 million or diluted net income per share of $0.99 in the prior year.
In the past year, PMC-Sierra has enhanced its competitive position by lowering its breakeven revenue point and shifting R&D investments towards metro-optical, 3G wireless, 1GHz MIPS-based microprocessors, and enterprise and storage networking technologies, said Bob Bailey, chairman and chief executive officer of PMC-Sierra. With more than 2,300 design wins and 36 new products introduced last year, we are very encouraged going into 2002.
In the fourth quarter of 2001, PMC-Sierra recorded a charge related to corporate restructuring and other costs totaling $175.3 million. The charge was the result of a previously announced restructuring which included severance costs related to a reduction in workforce, excess facility costs, contract settlement costs, and write-downs of property, equipment and other related assets.
In the fourth quarter of 2001, the company recorded an impairment of goodwill and purchased intangible assets of $80.8 million, a provision for excess inventory of $6.5 million recorded in cost of revenues, and an impairment of other investments of $17.5 million. The company also recorded a gain on sale of other investments of $2.5 million, amortization of goodwill of $2.4 million and amortization of deferred stock compensation of $8.6 million. For a reconciliation of pro forma adjustments for the three month and twelve month periods ended December 30, 2001 see the schedule incorporated in this press release.
The net loss in the fourth quarter of 2001 under Generally Accepted Accounting Principles (GAAP) was $308.0 million or a net loss per share of $1.82. This compares with a net loss of $34.5 million in the third quarter of 2001 or a net loss per share of $0.20. For the year ended December 30, 2001 the net loss was $639.1 million or a net loss per share of $3.80 compared with net income of $75.3 million or diluted net income per share of $0.41 in the prior year.