Pericom Semiconductor F1Q08 (Qtr End 9/29/07) Earnings Call Transcript

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2007-10-30 17:24:25.0

Tags: Pericom Semiconductor Corp.

Question-and-Answer Session

Operator

(Operator Instructions) We'll take our first question today from Krishna Shankar with JMP Securities.

Krishna Shankar - JMP Securities

Yes, congratulations on a good quarter. I just had a couple of questions, as you look at the December quarter, you indicated that you expect continued strength in computing and communications with the digital video business tapping off. Within those segments, Alex can you talk to where your things turn to the notebook servers? What type of networking equipment? And gross margins, what is the outlook for some potential upside there given the mix improving?

Alex Hui

We expect to see [continued] strength in the notebook and server segments, [adjacent] by year demand as well as our continued ramp up of our PCI Express solution. On the communications side, we expect to see continuous trend in the Wireless LAN area, and also the Enterprise Network area. We expect to gain on the gross margin in 36% to 37% range this will be somewhat dependent on the final mix. But our goal is obviously continue to drive, richer mix of our focused products.

Krishna Shankar - JMP Securities

And what about the timing module solutions business, the outlook for Q4?

Alex Hui

We expect that both our IP business and our frequency control business would move up sequentially.

Krishna Shankar - JMP Securities

Great thanks. Thank you.

Alex Hui

Thank you.

Operator

Our next question will go to Christian Schwab with Craig-Hallum Capital Group.

Christian Schwab - Craig-Hallum Capital Group

Great thanks. Great quarter, guys.

Alex Hui

Thank you.

Christian Schwab - Craig-Hallum Capital Group

This PCI-Express, I missed, what was the revenue that we did this quarter in PCI-Express?

Alex Hui

We are approximately up about 80% compared to last quarter.

Christian Schwab - Craig-Hallum Capital Group

We had kind of talked about maybe last quarter that only growing at 20% to 30%, where does the surprise come from?

Alex Hui

Look we see a strong demand from some of our customers from the PC segment and it seems like some of the applications are ramping up earlier then we expect.

Christian Schwab - Craig-Hallum Capital Group

Is this the beginning of a trend here, we are on a trajectory, kind of had a delay in our trajectory to $10 million is that, can you give us an update on how you see this growth accelerating?

Alex Hui

We believe the business will continue to grow, but as you have seen overtime it's highly dependent on the ramp-up of customer programs. So, we are really hesitant to give more guidance at this point. But we are happy to see some of the programs initiating, that we expect to see an additional benefits in the following quarter. And then as we see the new Intel chipset, [Egulled] introduced in the second quarter of next year and we expect to see a further momentum.

 

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