Applied Micro Shares Jump

Applied Micro Circuits(AMCC Quote) shares popped Friday after the chipmaker forecast growth in the coming months and promised to cut its operating expenses.

The stock recently jumped 41 cents, or 16.8%, to $2.85 in midday trading Friday.

The Sunnyvale,Calif.-based company offered the good news late Thursday -- and in the same breath warned investors of a revenue shortfall for the quarter ended June 30.

Instead of the $59.6 million in sales that Applied Micro Circuits expected for the first quarter, the company now expects sales to be about $50 million, down roughly 29% sequentially.

Applied Micro Circuits blamed the poor results on continued weakness in the telecommunications market, as well as slow sales of processors due to product delays and inventory issues.

But the chipmaker said it expects its revenue to rebound in the September quarter, ranging from $55 million to $60 million, thanks to strength in its order book.

Applied Micro also said it expects continued growth in subsequent quarters through the remainder of the fiscal year, which ends March 31, 2008. And the company plans to reduce its quarterly operating expenses by about 10% by the end of the current fiscal year from the $43 million rate in its fourth quarter.

The company is slated to report its full quarterly results on July 25.