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PMC Sierra Inc. Reports Operating Results (10-Q)

August 05, 2010 | About:

10qk

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PMC Sierra Inc. (PMCS) filed Quarterly Report for the period ended 2010-06-27.

Pmc Sierra Inc. has a market cap of $1.87 billion; its shares were traded at around $8.16 with a P/E ratio of 12.8 and P/S ratio of 3.8. Pmc Sierra Inc. had an annual average earning growth of 18.2% over the past 5 years.PMCS is in the portfolios of Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

Our selling, general and administrative, or SG&A expenses increased by $3.0 million, or 14% in the second quarter of 2010 as compared to the second quarter of 2009, primarily as a result of $1.5 million in costs for the acquisition of the Channel Storage business from Adaptec in the second quarter of 2010, the effect of foreign exchange on our foreign operations, and other payroll related costs. In addition, operating costs also increased due to the additional headcount from the acquisition of Adaptecs Channel Storage business.

We recorded a provision for income taxes of $4.4 million and $3.4 million for the three months ended June 27, 2010 and June 28, 2009, respectively. Our effective tax rate was 13% and 30% the three months ended June 27, 2010 and June 28, 2009, respectively. Our effective tax rate decreased primarily due to income before provision for income taxes increasing over three times compared to the three months ended June 28, 2009. This increase was driven primarily by higher revenues across all jurisdictions. In addition to a portion of the income being generated in lower-tax jurisdictions, we continue to benefit from available loss carryforwards and investment tax credits earned, resulting in a significantly lower effective tax rate for the three months ended June 27, 2010, partially offset by the effect of foreign currency translation of a foreign subsidiary.

Our selling, general and administrative, or SG&A expenses increased by $3.5 million, or 8% in the first six months of 2010 as compared to the first six months of 2009, primarily as a result of $1.5 million in costs related to the acquisition of the Channel Storage business from Adaptec which occurred in the second quarter of 2010, the effect of foreign exchange on our foreign operations, and other payroll related costs. In addition, operating costs also increased due to the additional headcount from the acquisition of Adaptecs Channel Storage business.

Read the The complete Report

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