PMC-Sierra reported net revenues in the second quarter of 2007 of $104.7 million compared with $103.7 million in the first quarter of 2007. Due to a review of the company’s expanded global distribution arrangement with its largest distributor, Avnet, PMC-Sierra determined it was appropriate that all future revenues generated through Avnet be reported on a ‘sell-through’ basis and therefore deferred until inventory is sold to the end customer. The net impact of this adjustment in the second quarter of 2007 was a decrease in reported revenue of $4.2 million, a reduction of $0.8 million in cost of sales, and an increase of $3.4 million in deferred income on the balance sheet. Net loss in Q2 (GAAP) was $22.3 million (GAAP diluted loss per share of $0.10) compared with GAAP net loss of $15.8 million (GAAP diluted loss per share of $0.07) in Q1.
“In the second quarter, we experienced improvement in our enterprise storage, fiber to the home, and telecom businesses on a sequential basis,” said Bob Bailey, chairman and chief executive officer of PMC-Sierra. “We believe the overall business environment is improving as we go into the second half of 2007, and we are executing on our corporate restructuring to improve the Company’s operating performance going forward.”http://www.pmc-sierra.com
