PMC Sierra Inc. (PMCS, Financial) filed Annual Report for the period ended 2011-12-31.
Pmc-sierra Inc has a market cap of $1.6 billion; its shares were traded at around $6.93 with a P/E ratio of 14.2 and P/S ratio of 2.4. Pmc-sierra Inc had an annual average earning growth of 43.6% over the past 5 years.
Storage represented 60% of our net revenues in 2011 compared to 55% of our net revenues in 2010. Storage net revenues increased by 11% in 2011 compared to 2010. This increase was primarily due to higher volumes of our SAS devices shipped with the continued production ramp of our 6G SAS products and as customers continue to migrate from 3G to 6G platforms. Also, in 2011, we had a full year of revenues from our Channel Storage business that we purchased from Adaptec mid-year in 2010. These increases were partially offset by declines in volumes of our Fibre Channel and laser printer products in 2011, compared to 2010.
Overall net revenues for 2010 increased $139.0 million, or 28% compared to net revenues for 2009, primarily due to higher sales volume, including volume attributable to two acquisitions the Company completed during the year. The acquisitions of the Channel Storage business from Adaptec, and Wintegra, completed in 2010 generated additional net revenues of $40.2 million compared to 2009.
Storage represented 55% of our net revenues in 2010 compared to 47% of our net revenues in 2009. Storage net revenues increased by 51% in 2010 compared to 2009. We experienced broad-based market recovery in 2010 and a corresponding positive enterprise and corporate information technology spending environment. The increase in net revenues from our enterprise storage products was mainly driven by higher demand for our 4Gbps and 8Gbps Fibre Channel products, and continued deployment of 3G and 6G SAS platforms. In addition, we shipped more of our 6Gbps SAS RAID-on-Chip product, which started shipping in production volumes in the second quarter of 2009. Also, in 2010, we had additional revenues from our Channel Storage business that we purchased from Adaptec mid-year in 2010.
Gross profit for 2011 increased by $12.1 million over 2010. Gross profit as a percentage of net revenues was 68% in 2011 and 2010. During 2011, we recognized $9 million of fair value adjustments related to inventory acquired from Wintegra in November 2010 and sold during the first three months of 2011. As a result, gross profit as a percentage of net revenues for 2011 would have been 69% had it not been for this item. Other than the effect of purchase accounting for Wintegra as noted above, the underlying increase in gross profit is primarily due to product mix.
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Pmc-sierra Inc has a market cap of $1.6 billion; its shares were traded at around $6.93 with a P/E ratio of 14.2 and P/S ratio of 2.4. Pmc-sierra Inc had an annual average earning growth of 43.6% over the past 5 years.
Highlight of Business Operations:
Overall net revenues for 2011 increased by $19.2 million, or 3% compared to net revenues for 2010. On a year over year basis, net revenues generated from our product offerings in Storage, Mobile and Optical increased (decreased) by 11%, 34% and (23%), respectively.Storage represented 60% of our net revenues in 2011 compared to 55% of our net revenues in 2010. Storage net revenues increased by 11% in 2011 compared to 2010. This increase was primarily due to higher volumes of our SAS devices shipped with the continued production ramp of our 6G SAS products and as customers continue to migrate from 3G to 6G platforms. Also, in 2011, we had a full year of revenues from our Channel Storage business that we purchased from Adaptec mid-year in 2010. These increases were partially offset by declines in volumes of our Fibre Channel and laser printer products in 2011, compared to 2010.
Overall net revenues for 2010 increased $139.0 million, or 28% compared to net revenues for 2009, primarily due to higher sales volume, including volume attributable to two acquisitions the Company completed during the year. The acquisitions of the Channel Storage business from Adaptec, and Wintegra, completed in 2010 generated additional net revenues of $40.2 million compared to 2009.
Storage represented 55% of our net revenues in 2010 compared to 47% of our net revenues in 2009. Storage net revenues increased by 51% in 2010 compared to 2009. We experienced broad-based market recovery in 2010 and a corresponding positive enterprise and corporate information technology spending environment. The increase in net revenues from our enterprise storage products was mainly driven by higher demand for our 4Gbps and 8Gbps Fibre Channel products, and continued deployment of 3G and 6G SAS platforms. In addition, we shipped more of our 6Gbps SAS RAID-on-Chip product, which started shipping in production volumes in the second quarter of 2009. Also, in 2010, we had additional revenues from our Channel Storage business that we purchased from Adaptec mid-year in 2010.
Gross profit for 2011 increased by $12.1 million over 2010. Gross profit as a percentage of net revenues was 68% in 2011 and 2010. During 2011, we recognized $9 million of fair value adjustments related to inventory acquired from Wintegra in November 2010 and sold during the first three months of 2011. As a result, gross profit as a percentage of net revenues for 2011 would have been 69% had it not been for this item. Other than the effect of purchase accounting for Wintegra as noted above, the underlying increase in gross profit is primarily due to product mix.
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