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Applied Micro Circuits Corporation Reports Third Quarter Fiscal 2011 Financial Results

SUNNYVALE, Calif., Jan. 27, 2011 (GLOBE NEWSWIRE) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) ("AppliedMicro") today reported its financial results for the third quarter of fiscal 2011, ended December 31 2010.
/ Source: GlobeNewswire

SUNNYVALE, Calif., Jan. 27, 2011 (GLOBE NEWSWIRE) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) ("AppliedMicro") today reported its financial results for the third quarter of fiscal 2011, ended December 31 2010.

  • Q3 2011 net revenues were $62.4 million, down 5.4% sequentially and up 16% year over year.
     
  • Q3 2011 GAAP net loss was $2.0 million or $0.03 per share compared to net income of $3.6 million or $0.05 per share for the second quarter of fiscal 2011.
     
  • Q3 2011 non-GAAP EPS was $0.10 per share on net income of $6.8 million, compared to $0.16 per share on net income of $10.7 million, from continuing operations, for the second quarter of fiscal 2011.
     
  • Total cash was approximately $190.2 million as of December 31, 2010 compared to $182.6 million at the end of September 2010. The increase in cash is mainly due to cash flow from operations.
     
  • PQX Universal FEC platform - which is a six 10G port device, began shipping for revenue in December.
     
  • During the quarter, the Company announced the following new products:
  • Mamba: single and dual-core embedded processing devices as the first members of the Company's PacketPro(TM) System-on-Chip (SoC) family.
     
  • Industry's first family of 100 gigabit per second (100G) optical network processors for the Packet-Optical Transport System (P-OTS) and IP-over-DWDM transport markets.

Net revenues for the third quarter of fiscal 2011 were $62.4 million compared to $66.0 million in the second quarter of fiscal 2011, representing a sequential decrease of 5.4% and an increase of 16% over the $53.7 million in net revenues reported in the third quarter of fiscal 2010. Revenues for the first nine months were $189.1 million compared to $148.0 million for the comparable period last year, a 28% increase.

The net loss on a generally accepted accounting principles (GAAP) basis for the third quarter of fiscal 2011 was $2.0 million or $0.03 per share. The third quarter GAAP net loss compares with a net income of $3.6 million or $0.05 per share for the second quarter of fiscal 2011 and a net loss of $3.6 million or $0.05 per share for the third quarter of fiscal 2010. Year to date, GAAP net income was $3.0 million or $0.04 per diluted share compared to a net loss of $7.4 million or $0.11 per share for the first nine months of fiscal 2010.

Non-GAAP income from continuing operations for the third quarter of fiscal 2011 was $6.8 million or $0.10 per diluted share, compared to non-GAAP income from continuing operations of $10.7 million or $0.16 per diluted share in the second quarter of fiscal 2011 and non-GAAP net income from continuing operations of $2.6 million or $0.04 per diluted share for the third quarter of fiscal 2010. Year to date, non-GAAP net income from continuing operations was $25.8 million or $0.38 per diluted share compared to $4.8 million or $0.07 per diluted share for the first nine months of fiscal 2010.

"Although we went into the quarter with knowledge of market softness, our performance for the quarter was slightly better than expected. During the year, we rolled out seven new leading edge TSMC 40nm products that are being very well received by our customers and are adding traction to the future growth of our OTN and embedded processor markets," said Dr. Paramesh Gopi, President and Chief Executive Officer.

Bob Gargus, Chief Financial Officer, commented, "We continued to execute according to plan and beat our estimates. We also did a good job of managing inventories to help buffer volatile supply/demand cycles and better service our customers."

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, January 27, 2011 at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss additional details regarding the Company's performance for the third quarter of fiscal 2011 and to provide guidance for the fourth 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 .

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.

CONTACT: Investor Relations Contact: Applied Micro Circuits Corporation Bob Gargus Phone: (408) 542-8752 E-Mail: rgargus@apm.com Media Contact: Applied Micro Circuits Corporation Tally Kaplan-Porat Phone: (408) 702-3139 E-Mail: tkaplan@apm.com