PMC Reports Q4

SANTA CLARA, Calif. -- PMC-Sierra, Inc. (NASDAQ:PMCS), a leading provider of broadband communications and storage semiconductors, today reported results for the fourth quarter ending December 31, 2006.

Net revenues in the fourth quarter of 2006 were $101.9 million, a decrease of 13% compared to $116.5 million for the third quarter of 2006 and 31% higher than the fourth quarter of 2005.

Net income in the fourth quarter of 2006 on a non-GAAP basis was $4.7 million (non-GAAP diluted earnings per share of $0.02) compared to non-GAAP net income of $17.4 million (non-GAAP diluted earnings per share of $0.08) in the third quarter of 2006. GAAP net loss in the fourth quarter of 2006 was $42.2 million (GAAP loss per share of $0.20) compared to GAAP net loss of $11.5 million in the third quarter of 2006 (GAAP loss per share of $0.05). The increase in our GAAP net loss in the fourth quarter was primarily due to an increase in our tax provision arising from a change in our estimate of tax liability for prior years as a result of a written communication we received in 2007 from a tax authority.

PMC-Sierra Inc.