Pericom reports 77-percent drop in 4Q profit

Pericom Semiconductor reports 77-percent drop in 4th-quarter profit as sales, prices fall

• On 5:19 pm EDT, Friday September 25, 2009

SAN JOSE, Calif. (AP) -- Chip maker Pericom Semiconductor Corp. posted a 77-percent drop in fiscal fourth-quarter earnings Friday, hurt by lower prices and sales.

The company, which makes chips for notebook computers, telecommunications and networking gear among other products, reported a profit of $1 million, or 4 cents per share. That compares with a profit of $4.6 million, or 17 cents per share, in the same quarter a year ago.

Sales dropped 32 percent to $29.7 million.

Still, the company sounded an upbeat note, pointing to improvement over the third quarter. "Our fourth quarter confirmed the improved demand we anticipated at the start of the quarter, and this trend is being sustained into the first quarter of fiscal 2010," CEO Alex Hui said in a statement.

Full-year net income came to $6.1 million, or 24 cents per share, down 64 percent from $17 million, or 64 cents, the year before. Sales dropped 21 percent to $128.6 million.

The company's stock shed 11 cents, or 1 percent, to $9.74 in extended trading, after closing up 19 cents, or 2 percent, during the regular session.