Peregrine Semiconductor Corporation (PSMI), a leading fabless provider of high-performance, integrated RF solutions, saw its loss widen to $5.96 million or $0.18 a share for the quarter ended Jun. 28, 2014, due to sharp increase in selling, general and administrative expenses. In the previous year period, the company disclosed a loss of $0.45 million or $0.01 a share.

The company has reported non-GAAP net loss of $0.12 a diluted share as against analysts' expectation of net loss of $0.11 a share.

Revenue during the second-quarter dropped 10.13 percent to $47.06 million from $52.36 million in the last year period.

Gross margin contracted by 116 basis points over the previous year period to 38.40 percent. Operating margin for the current period stood at negative 12.59 percent as compared to negative 0.60 percent for the previous year period.

The company disclosed operating loss of $5.92 million, compared with operating loss of $0.31 million in the last year period.

''We reported better than expected revenue this quarter driven by strong growth of LTE smartphones in many global markets,'' said James Cable, chairman and chief executive officer. ''In our High Performance Analog business, we are also enjoying strong design win growth and momentum in our sales channel.''

For the third quarter of 2014, the company expects revenue to be in the range of $40 million to $43 million. Third quarter GAAP gross margin is expected to be in the range of 39% to 41%.

Cash Flow

Peregrine Semiconductor Corporation has generated cash of $6.78 million from operating activities during the first half, as against cash outgo of $28.29 million in the last year period.

The company has spent $3 million cash to meet operating activities during the first half, as against cash inflow of $6.94 million in the last year period. It has made net capital expenditure of $0.89 million during the first half, which was lower by 77.15 percent or $3 million, from a year ago.

The company has spent $0.24 million cash to meet financing activities during the first half, as against cash outgo of $4.16 million in the last year period. It has spent net of $0.13 million on repurchase of common stocks.

As on Jun. 28, 2014, the company's cash balance stood at $19.73 million, up 6.13 percent or $1.14 million from Jun. 29, 2013.

Working Capital

Peregrine Semiconductor Corporation has witnessed a decline in the working capital over the last one year. The company's working capital stood at $68.53 million as at Jun. 28, 2014, down $19.24 million or 21.92 percent from $87.77 million on Jun. 29, 2013. It registered a decrease in current ratio to 2.72 as at Jun. 28, 2014 from 2.91 on Jun. 29, 2013.

Shares of the company gained 18 cents or 2.66 percent to close at $6.95 on Monday.