Peregrine Semiconductor Announces First Quarter 2013 Financial Results

  Peregrine Semiconductor Announces First Quarter 2013 Financial Results

  *First quarter revenue of $46.6 million
  *GAAP first quarter diluted loss per share of $0.04
  *Non-GAAP first quarter diluted income per share of $0.01

Business Wire

SAN DIEGO -- April 29, 2013

Peregrine Semiconductor Corporation (Peregrine Semiconductor) (NASDAQ: PSMI),
a fabless provider of high-performance radio frequency integrated circuits
(RFICs), today announced its first quarter 2013 financial results.

First quarter 2013 revenue was $46.6 million, compared with $36.7 million for
the same period in 2012.

As reported under U.S. generally accepted accounting principles (GAAP), first
quarter 2013 net loss was $1.2 million, compared with a GAAP net loss of $3.0
million in the same period in 2012. Diluted net loss per share for the first
quarter of 2013 was $0.04 per share compared to a net loss per share of $1.10
for the same period in 2012.

Non-GAAP net income for the first quarter of 2013 was $0.3 million, or $0.01
per diluted share based on weighted average shares outstanding of 35.7
million. This compares with non-GAAP net loss of $2.1 million or $0.08 per
diluted share based on weighted average shares outstanding of 25.1 million for
the same period in 2012.

Gross margin on a GAAP basis for the first quarter of 2013 was 42.5% of
revenue, compared to 30.6% of revenue for the same period in 2012. Gross
margin on a non-GAAP basis for the first quarter of 2013 was 42.9% of revenue,
compared to 31.0% of revenue for the same period in 2012.

“During the first quarter of 2013 we made solid progress as we continued to
expand our position as a leader in the RF front-end. In particular, we
improved our end customer diversification with share gains at a number of
important accounts during the first quarter. In addition, we introduced key
new technologies and partnerships including STeP8, an important advancement to
our UltraCMOS process technology, and our collaboration with Intel on tuning
solutions for LTE. We also announced our intent to license IP to Murata, the
market leader in RF modules, to solidify our long-term partnership and further
establish value in our patent portfolio,” commented Jim Cable, Chief Executive
Officer. “We have positioned ourselves well for future growth as certain
high-profile smartphones begin to ramp and we continue to diversify the
product offerings in our non-handset business.”

Business Outlook

For the second quarter of 2013, the company expects revenue to be in the range
of $48 million to $50 million. Second quarter GAAP gross margin is expected to
be in the range of 39% to 41%.

Quarterly Conference Call Today

Jim Cable, President and Chief Executive Officer, and Jay Biskupski, Chief
Financial Officer, will host a first quarter 2013 financial results conference
call today at 1:30 pm (Pacific) / 4:30 pm (Eastern). Attendees are asked to
join the conference call at least ten minutes prior to the scheduled
conference call time. The call may be accessed by dialing 1-877-303-8027 (toll
free) or 1-760-536-5165 (international). The passcode is 35375317. A live and
archived webcast of the call will be available on Peregrine's website at
http://investors.psemi.com/ for one week following the live call.

Use of GAAP and Non-GAAP Financial Measures

Peregrine Semiconductor prepares its financial statements in accordance with
generally accepted accounting principles forthe United States(GAAP). The
non-GAAP financial measures such as gross margin, net income and loss per
share information for the three months ended March 30, 2013, and similar
periods from the prior year included in this press release are different from
those otherwise presented under GAAP. The non-GAAP financial measures exclude
non-cash compensation expense for stock options. When evaluating the
performance of our business and developing short and long-term plans, we do
not consider share-based compensation charges. Although share-based
compensation is necessary to attract and retain quality employees, our
consideration of share-based compensation places its primary emphasis on
overall shareholder dilution rather than the accounting charges associated
with such grants. Because of the varying availability of valuation
methodologies and subjective assumptions, we believe that the exclusion of
share-based compensation allows for more accurate comparison of our financial
results to previous periods. In addition, we believe it useful to investors to
understand the specific impact of the application of the fair value method of
accounting for share-based compensation on our operating results. The
presentation of these financial measures is not intended to be considered in
isolation or as a substitute for, or superior to, financial information
prepared and presented in accordance with GAAP. We believe these non-GAAP
financial measures provide investors with useful supplemental information
about the financial performance of our business, enable comparison of
financial results between periods where certain items may vary independent of
business performance, and allow for greater transparency with respect to key
metrics used by management in operating our business. However, investors are
cautioned that there are material limitations associated with the use of
non-GAAP financial measures as an analytical tool. These measures may be
different from non-GAAP financial measures used by other companies, limiting
their usefulness for comparison purposes.

For more information on our non-GAAP financial measures and a reconciliation
of such measures to the nearest GAAP measure, please see the “Condensed
Consolidated Reconciliation of GAAP to Non-GAAP Results” table in this press
release.

Use of Forward Looking Statements

This press release contains forward looking statements regarding our
management's future expectations, beliefs, intentions, goals, strategies,
plans and prospects. Such statements constitute “forward-looking” statements
which are subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. The achievement of the matters covered by such
forward-looking statements involves risks, uncertainties and assumptions. If
any of these risks or uncertainties materialize or if any of the assumptions
prove incorrect, our actual results, performance or achievements could be
materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such risks and
uncertainties include, but are not limited to, our dependence on a limited
number of customers for a substantial portion of our revenues; intellectual
property risks; intense competition in our industry; our ability to develop
and introduce new and enhanced products on a timely basis and achieve market
acceptance of those products; consumer acceptance of our customers’ products
that incorporate our solutions; our lack of long-term supply contracts and
dependence on limited sources of supply; and potential decreases in average
selling prices for our products.

For further information regarding risks and uncertainties associated with
Peregrine’s business, please refer to the filings that we make with the
Securities and Exchange Commission from time to time, including those set
forth in the section entitled “Risk Factors” in our Form 10-K for the year
ended December 29, 2012, which should be read in conjunction with these
financial results. These documents are available on the SEC Filings section of
the Investor Relations section of our website at http://investors.psemi.com/.
Please also note that forward-looking statements represent our management's
beliefs and assumptions only as of the date of this press release. Except as
required by law, we assume no obligation to update these forward-looking
statements publicly, or to update the reasons actual results could differ
materially from those anticipated in the forward-looking statements, even if
new information, becomes available in the future.

About Peregrine Semiconductor

Peregrine Semiconductor (NASDAQ: PSMI) is a fabless provider of
high-performance radio frequency integrated circuits (RFICs). Our solutions
leverage our proprietary  UltraCMOS^®technology,an advanced RF
Silicon-On-Insulator process. Our products deliver what we believe is an
industry-leading combination of performance and monolithic integration, and
target a broad range of applications in the aerospace and defense, broadband,
industrial, mobile wireless device, test and measurement equipment, and
wireless infrastructure markets. Additional information is available on the
Company’s website athttp://www.psemi.com.

     The Peregrine Semiconductor name, logo and UltraCMOS are registered
   trademarks, and DuNE, and HaRP are trademarks of Peregrine Semiconductor
 Corporation in the U.S.A., and other countries. All other trademarks are the
                     property of their respective owners.



Peregrine Semiconductor Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
                                                                 
                                                       Three Months Ended
                                                       March 30,    March 31,
                                                       2013         2012
                                                                    
Net revenue                                            $ 46,625     $ 36,695
Cost of net revenue                                     26,808     25,460 
                                                                    
Gross profit                                             19,817       11,235
Operating expense:
Research and development                                 10,164       6,442
Selling, general and administrative                     10,720     7,112  
                                                                    
Total operating expense                                 20,884     13,554 
                                                                    
Loss from operations                                     (1,067 )     (2,319 )
Interest expense, net                                    (79    )     (680   )
Other income (expense), net                             (34    )    6      
                                                                    
Loss before income taxes                                 (1,180 )     (2,993 )
Provision for income taxes                              28         49     
                                                                    
Net loss                                               $ (1,208 )   $ (3,042 )
                                                                    
Basic and diluted net loss per share:                  $ (0.04  )   $ (1.10  )
                                                                    
Shares used to compute basic and diluted net loss       31,925     2,765  
per share:
                                                                             
                                                                             

Peregrine Semiconductor Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
                                                               
                                                   March 30,      December 29,
                                                    2013         2012     
                                                                  
Assets
Current assets:
Cash and cash equivalents                          $ 14,167       $ 44,106
Short-term marketable securities                     31,167         30,361
Accounts receivable, net                             12,089         13,353
Inventories                                          60,275         57,017
Prepaids and other current assets                   6,499        11,108   
                                                                  
Total current assets                                 124,197        155,945
Property and equipment, net                          23,239         22,871
Long-term marketable securities                      16,525         18,892
Other assets                                         209            210
                                                                 
Total assets                                       $ 164,170     $ 197,918  
                                                                  
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable                                   $ 15,265       $ 22,306
Accrued liabilities                                  7,679          12,672
Accrued compensation                                 2,833          5,726
Customer deposits                                    10,213         24,425
Deferred revenue                                     7,548          12,755
Current portion of obligations under capital        10           11       
leases
                                                                  
Total current liabilities                            43,548         77,895
                                                                  
Obligations under capital leases, less current       13             18
portion
Other long-term liabilities                          958            886
                                                                  
Stockholders’ equity:
Common stock                                         32             32
Additional paid-in capital                           341,952        340,221
Accumulated deficit                                  (222,143 )     (220,935 )
Accumulated other comprehensive loss                 (190     )     (199     )
                                                                 
Total stockholders’ equity                          119,651      119,119  
Total liabilities and stockholders’ equity         $ 164,170     $ 197,918  
                                                                             
                                                                             

Peregrine Semiconductor Corporation
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                                                 
                                                      Three Months Ended
                                                      March 30,     March 31,
                                                       2013        2012   
Operating activities
Net loss                                              $ (1,208  )   $ (3,042 )
Adjustments to reconcile net loss to net cash used
in operating activities:
Depreciation and amortization                           1,500         968
Stock-based compensation                                1,466         980
Revaluation of warrants to fair value                   -             552
Imputed interest related to deposit arrangements,       19            -
net
Amortization of premium and discount on                 106           -
investments, net
Changes in operating assets and liabilities:
Accounts receivable                                     (839    )     (4,251 )
Inventories                                             (3,399  )     (5,176 )
Prepaids and other current and noncurrent assets        5,272         (2,081 )
Accounts payable and accrued liabilities                (15,613 )     7,147
Customer deposits                                       (9,092  )     -
Deferred revenue                                       (5,207  )    232    
                                                                    
Net cash used in operating activities                   (26,995 )     (4,671 )
                                                                    
Investing activities
Purchase of property and equipment                      (1,866  )     (1,427 )
Purchase of marketable securities                       (8,882  )     -
Sale of marketable securities                          10,340      -      
                                                                    
Net cash used in investing activities                   (408    )     (1,427 )
                                                                    
Financing activities
Payments on obligations under capital leases            -             (128   )
Payments on notes payable                               -             (211   )
Payments on customer deposit financing arrangement      (2,788  )     -
Proceeds from line of credit                            -             3,000
Proceeds from exercise of stock options                 261           18
Proceeds from customer deposit financing                -             7,200
arrangement
Costs paid in connection with initial public           -           (91    )
offering
                                                                    
Net cash provided by (used in) financing activities     (2,527  )     9,788
                                                                    
Effect of exchange rate changes on cash and cash       (9      )    19     
equivalents
                                                                    
Net change in cash and cash equivalents                 (29,939 )     3,709
Cash and cash equivalents at beginning of period        44,106        12,119
                                                                        
Cash and cash equivalents at end of period            $ 14,167     $ 15,828 
                                                                             
                                                                             

Peregrine Semiconductor Corporation
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(in thousands, except per share data)
(unaudited)
                                                                  
                                   Three Months Ended
                                   March 30,              March 31,
                                   2013                   2012
                                                                       
Gross profit - GAAP                $ 19,817     42.5 %    $ 11,235     30.6 %
Non-cash compensation expense       196       0.4       143       0.4  
(1)
                                                                       
Gross profit - Non-GAAP            $ 20,013    42.9 %    $ 11,378    31.0 %
                                                                       
Loss from operations - GAAP        $ (1,067 )   (2.3 %)   $ (2,319 )   (6.3 %)
Non-cash compensation expense       1,466     3.2       980       2.7  
(1)
                                                                       
Income (loss) from operations -    $ 399       0.9  %    $ (1,339 )   (3.6 %)
Non-GAAP
                                                                       
Net loss - GAAP                    $ (1,208 )   (2.6 %)   $ (3,042 )   (8.3 %)
Non-cash compensation expense       1,466     3.2       980       2.7  
(1)
                                                                       
Net income (loss) - Non-GAAP       $ 258       0.6  %    $ (2,062 )   (5.6 %)
                                                                       
Diluted net loss per share -       $ (0.04  )             $ (1.10  )
GAAP
Adjustment to reflect conversion
of preferred stock at the            -                      0.98
beginning of period
Non-cash compensation expense       0.05                 0.04   
                                                                       
Diluted net income (loss) per      $ 0.01                $ (0.08  )
share - Non-GAAP
                                                                       
Net loss attributable to common    $ (1,208 )             $ (3,042 )
stockholders - GAAP
Net (income) loss - Non-GAAP       $ 258                 $ (2,062 )
                                                                       
Shares used to compute diluted
net loss per share attributable      31,925                 2,765
to common stockholders - GAAP
Adjustment to reflect conversion
of preferred stock at the            -                      22,365
beginning of period
Dilutive effect of stock options     3,810                  -
and warrants
Shares used to compute diluted
net income (loss) per share -       35,735               25,130 
Non-GAAP
                                                                       
                                                                       
(1) Includes stock-based
compensation as follows:
                                   Three Months Ended
                                   March 30,              March 31,
                                   2013                   2012
Cost of net revenue                $ 196                  $ 143
Research and development             517                    268
Selling, general and                753                   569
administrative
Total                              $ 1,466                $ 980

Contact:

Peregrine Semiconductor Corporation
Jay Biskupski, Chief Financial Officer
858-795-0161
ir@psemi.com
or
Investor Relations:
The Blueshirt Group
Suzanne Craig or Melanie Friedman
415-217-4962; 415-217-4964
Suzanne@blueshirtgroup.com
Melanie@blueshirtgroup.com