updated 10/28/2010 4:17:01 PM ET 2010-10-28T20:17:01

SUNNYVALE, Calif., Oct. 28, 2010 (GLOBE NEWSWIRE) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) ("AppliedMicro") today reported its financial results for the second quarter of fiscal 2011, ended September 30, 2010.

  • Q2 2011 net revenues were $66.0 million, up 8.5% sequentially and up 34% year over year.
  • Q2 2011 GAAP net income was $3.6 million or $0.05 per share compared to net income of $1.4 million or $0.02 per share for the first quarter of fiscal 2011.
  • Q2 2011 non-GAAP EPS was $0.16 per share on net income of $10.7 million, compared to $0.12 per share on net income of $8.3 million, from continuing operations, for the first quarter of fiscal 2011.
  • Total cash was approximately $182.6 million as of September 30, 2010 and was net of $32.0 million paid for the acquisition of TPack A/S and $23.1 million spent on repurchasing 2,529,500 AppliedMicro shares.
  • During the quarter ended September 30, 2010, AppliedMicro completed the acquisition of TPack A/S.

Net revenues for the second quarter of fiscal 2011 were $66.0 million compared to $60.8 million in the first quarter of fiscal 2011, representing a sequential increase of 8.5% and an increase of 34% over the $49.2 million in net revenues reported in the second quarter of fiscal 2010. Revenues for the first six months were $126.8 million compared to $94.3 million for the comparable period last year, a 34% increase.

The net income on a generally accepted accounting principles (GAAP) basis for the second quarter of fiscal 2011 was $3.6 million or $0.05 per share. The second quarter GAAP net income compares with a net income of $1.4 million or $0.02 per share for the first quarter of fiscal 2011 and a net loss of $(6.7) million or $(0.10) per share for the second quarter of fiscal 2010. Year to date, GAAP net income was $5.0 million or $0.07 per share compared to $(3.8) million or $(0.06) per share for the first six months of fiscal 2010.

Non-GAAP income from continuing operations for the second quarter of fiscal 2011 was $10.7 million or $0.16 per share, compared to non-GAAP income from continuing operations of $8.3 million or $0.12 per share in the first quarter of fiscal 2011 and non-GAAP net income from continuing operations of $1.3 million or $0.02 per share for the second quarter of fiscal 2010. Year to date, non-GAAP net income from continuing operations was $19.0 million or $0.28 per share compared to $2.2 million or $0.03 per share for the first six months of fiscal 2010.

"We had another very good quarter that demonstrated the strength of our execution. We continued to build our product pipeline and further strengthened our capabilities with the recently closed TPack acquisition. AppliedMicro remains well positioned to capitalize on the OTN market as it rolls into the enterprise portion of the networks and our recent processor product releases are being well received by our customers," said Dr.Paramesh Gopi, President and Chief Executive Officer.

Bob Gargus, Chief Financial Officer, commented, "We had a very strong quarter with significant improvements in virtually all profitability measurements. We are pleased with both our income statement as well as our balance sheet progress. Despite the excellent quarter we are cautious entering the December quarter given recent softening in the market."

AppliedMicro reports its financial results in accordance with GAAP and also provides additional financial data that have not been prepared in accordance with GAAP. The non-GAAP results and other financial measures reported by the Company exclude certain items that are required by GAAP, such as restructuring charges, amortization of purchased intangibles, stock-based compensation charges, other-than-temporary impairment on investments, impairment of strategic investment, one-time acquisition related charges and non-cash tax adjustments. Income taxes are adjusted to an estimated non-GAAP effective tax rate. These non-GAAP measures are not a substitute for GAAP measures and may not be consistent with the presentation used by other companies. The Company uses the non-GAAP financial measures to evaluate and manage its operations. The Company is providing this information to allow investors to perform additional financial analysis and because it is consistent with the financial models and estimates published by analysts who follow the Company. The attached schedule reconciles non-GAAP results and other financial measures reported by the Company with the most directly comparable GAAP financial measures. 

AppliedMicro management will be holding a conference call today, October 28, 2010, at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss additional details regarding the Company's performance for the second quarter of fiscal 2011 and to provide guidance for the third quarter of fiscal 2011. You may access the conference call via any of the following:

AppliedMicro Overview

AppliedMicro is a global leader in energy conscious high performance computing and connectivity solutions for telco, enterprise, data center, consumer and SMB applications. AppliedMicro's corporate headquarters are located in Sunnyvale, California. Sales and engineering offices are located throughout the world. For further information regarding AppliedMicro, visit the company's Web site at http://www.apm.com .

This news release contains forward-looking statements that reflect the Company's current view with respect to future events and financial performance, including statements regarding the Company's focus, product cycles, design-win pipeline, strategic re-focus and future revenues. These forward-looking statements are only predictions based on current information and expectations and are subject to certain risks and uncertainties, including, but not limited to, customer demand for the Company's products, the businesses of the Company's major customers, reductions, rescheduling or cancellation of orders by the Company's customers, successful and timely development of products, successful integration and management of recently acquired businesses, market acceptance of new products, and general economic conditions. More information about potential factors that could affect the Company's business and financial results is included in the "Risk Factors" set forth in the Company's Annual Report on Form 10-K for the year ended March 31, 2010, and the Company's other filings with the Securities and Exchange Commission. Actual results could differ materially, as a result of such factors, from those set forth in the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the issuance of this press release.

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