This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Applied Micro Circuits Corporation Reports Third Quarter Fiscal 2013 Financial Results

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, Veloce Acquisition consideration, stock-based compensation charges, other-than-temporary impairment on investments, one-time acquisition related recoveries, sale of equipment and other assets, warrant expense, payroll taxes on certain stock option exercises 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 30, 2013 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 2013 and to provide guidance for the fourth quarter of fiscal 2013. You may access the conference call via any of the following:

Teleconference: 800-798-2884
Conference ID: 80437361
Web Broadcast: http://www.apm.com
Replay: 888-286-8010 (access code: 98851945, available through February 6, 2013)

AppliedMicro Overview

Applied Micro Circuits Corporation is a global leader in computing and connectivity solutions for next-generation cloud infrastructure and data centers. AppliedMicro delivers silicon solutions that dramatically lower total cost of ownership. Corporate headquarters are located in Sunnyvale, California. www.apm.com .

Applied Micro Circuits Corporation, AppliedMicro, the AppliedMicro logo, X-Gene and Server on a Chip are trademarks or registered trademarks of Applied Micro Circuits Corporation. All other product or service names are the property of their respective owners.

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 chip performance of the 40nm and 28nm ARM 64-Bit X Gene server on a chip, the TAM for such product, the estimated range of payments for the Veloce acquisition, 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, increased supplier lead times and other supply chain constraints, 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, 2012, 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.

- Financial Tables Follow-

APPLIED MICRO CIRCUITS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
     
  December 31, March 31,
ASSETS 2012 2012
     
Current assets:    
Cash, cash equivalents and short-term investments  $ 84,244  $ 113,846
Accounts receivable, net  17,362  22,666
Inventories  13,857  23,244
Other current assets  19,297  31,105
Total current assets  134,760  190,861
Property and equipment, net  36,171  38,100
Goodwill  13,183  13,183
Purchased intangibles, net  13,008  16,634
Other assets  14,004  10,274
Total assets  $ 211,126  $ 269,052
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Current liabilities:    
Accounts payable  $ 14,427  $ 21,383
Other current liabilities  89,906  50,903
Total current liabilities  104,333  72,286
Non-current liability:    
Other long-term liabilities  14,767  27,530
Stockholders' equity  92,026  169,236
Total liabilities and stockholders' equity  $ 211,126  $ 269,052
     
APPLIED MICRO CIRCUITS CORPORATION
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
 
  Three Months Ended Nine Months Ended
  December 31, September 30, December 31, December 31, December 31,
  2012 2012 2011 2012 2011
           
Net revenues  $ 51,698  $ 46,324  $ 56,347  $ 139,316  $ 182,120
Cost of revenues  22,958  20,561  23,795  61,874  77,830
Gross profit  28,740  25,763  32,552  77,442  104,290
Operating expenses:          
Research and development  82,711  34,383  28,279  151,865  86,256
Selling, general and administrative  12,675  13,531  11,406  38,676  32,903
Amortization of purchased intangible assets  338  601  650  1,589  2,552
Restructuring charges, net  6,218  --  2  6,218  875
Total operating expenses  101,942  48,515  40,337  198,348  122,586
Operating loss  (73,202)  (22,752)  (7,785)  (120,906)  (18,296)
Interest and other income (expense), net  2,258  835  914  4,855  3,787
Loss before income taxes  (70,944)  (21,917)  (6,871)  (116,051)  (14,509)
Income tax expense (benefit)  618  (360)  206  458  597
Net loss  $ (71,562)  $ (21,557)  $ (7,077)  $ (116,509)  $ (15,106)
           
Basic and diluted net loss per share:          
Net loss per share  $ (1.08)  $ (0.33)  $ (0.12)  $ (1.81)  $ (0.24)
Shares used in calculating basic and diluted net loss per share  66,113  64,947  60,990  64,489  62,465
           
APPLIED MICRO CIRCUITS CORPORATION
RECONCILIATION OF GAAP NET (LOSS) INCOME TO NON-GAAP NET (LOSS) INCOME
(in thousands, except per share data)
(unaudited)
 
  Three Months Ended Nine Months Ended
  December 31, September 30, December 31, December 31, December 31,
  2012 2012 2011 2012 2011
           
GAAP net loss  $ (71,562)  $ (21,557)  $ (7,077)  $ (116,509)  $ (15,106)
Adjustments:          
Stock-based compensation charges  6,222  7,634  4,433  21,545  11,735
Warrant expense  --  --  --  1,289  --
Amortization of purchased intangibles  1,017  1,280  1,329  3,626  5,425
Veloce acquisition consideration  51,930  2,325  --  56,580  --
Acquisition related recoveries  --  --  --  (133)  (2,267)
Restructuring charges, net  6,218  --  2  6,218  875
Sale of equipment and other assets  (1,299)  --  --  (1,299)  --
Other-than-temporary investment impairment   (270)  (174)  (61)  (1,533)  (666)
Income tax adjustments  832  (34)  242  1,351  580
Total GAAP to Non-GAAP adjustments  64,650  11,031  5,945  87,644  15,682
           
Non-GAAP net loss (income)  $ (6,912)  $ (10,526)  $ (1,132)  $ (28,865)  $ 576
           
Diluted (loss) income per share  $ (0.10)  $ (0.16)  $ (0.02)  $ (0.45)  $ 0.01
           
Shares used in calculating diluted (loss) income per share   66,113  64,947  60,990  64,489  62,968
           
Net (loss) income per share:          
GAAP loss per share   $ (1.08)  $ (0.33)  $ (0.12)  $ (1.81)  $ (0.24)
GAAP to non-GAAP adjustments  0.98 0.17 0.10 1.36 0.25
Non-GAAP net (loss) income per share  $ (0.10)  $ (0.16)  $ (0.02)  $ (0.45)  $ 0.01
           
Reconciliation of shares used in calculating non-GAAP (loss) income per share:          
Shares used in calculating the basic loss per share   66,113  64,947  60,990  64,489  62,465
Adjustment for dilutive securities   --   --   --  --  503
Shares used in calculating non-GAAP diluted (loss) income per share  66,113  64,947  60,990  64,489  62,968
           
APPLIED MICRO CIRCUITS CORPORATION
SCHEDULE OF SELECTED GAAP TO NON-GAAP ADJUSTMENTS
(in thousands)
(unaudited)
 
The following schedule reconciles selected line items from the GAAP basis statements of operations to the non-GAAP statements of operations:
 
 
  Three Months Ended Nine Months Ended
  December 31, September 30, December 31, December 31, December 31,
  2012 2012 2011 2012 2011
GROSS PROFIT:          
GAAP gross profit  $ 28,740  $ 25,763  $ 32,552  $ 77,442  $ 104,290
Amortization of purchased intangibles  679  679  679  2,037  2,873
Stock-based compensation expense  158  177  83  597  292
Non-GAAP gross profit  $ 29,577  $ 26,619  $ 33,314  $ 80,076  $ 107,455
           
OPERATING EXPENSES:          
GAAP operating expenses  $ 101,942  $ 48,515  $ 40,337  $ 198,348  $ 122,586
Stock-based compensation expense  (6,064)  (7,457)  (4,350)  (20,948)  (11,443)
Warrant expense  --  --  --  (1,289)  --
Amortization of purchased intangibles  (338)  (601)  (650)  (1,589)  (2,552)
Acquisition related expenses  --  --  --  133  2,267
Veloce acquisition consideration  (51,930)  (2,325)  --  (56,580)  --
Restructuring charges, net  (6,218)  --  (2)  (6,218)  (875)
Non-GAAP operating expenses  $ 37,392  $ 38,132  $ 35,335  $ 111,857  $ 109,983
           
INTEREST AND OTHER INCOME, NET AND OTHER-THAN-TEMPORARY IMPAIRMENT:          
GAAP interest and other income  $ 2,258  $ 835  $ 914  $ 4,855  $ 3,787
Sale of equipment and other assets  (1,299)  --  --  (1,299)  --
Other-than-temporary investment impairment   (270)  (174)  (61)  (1,533)  (666)
Non-GAAP interest and other income, net  $ 689  $ 661  $ 853  $ 2,023  $ 3,121
           
INCOME TAX (BENEFIT) EXPENSE:          
GAAP income tax expense (benefit)   $ 618  $ (360)  $ 206  $ 458  $ 597
Income tax adjustments  (832)  34  (242)  (1,351)  (580)
Non-GAAP income tax (benefit) expense  $ (214)  $ (326)  $ (36)  $ (893)  $ 17
           
RESEARCH AND DEVELOPMENT :          
GAAP research and development   $ 82,711  $ 34,383  $ 28,279  $ 151,865  $ 86,256
Stock-based compensation expense  (2,814)  (3,715)  (2,647)  (10,734)  (6,761)
Warrant expense  --  --  --  (1,289)  --
Veloce acquisition consideration  (51,930)  (2,325)  --  (56,580)  --
Non-GAAP research and development   $ 27,967  $ 28,343  $ 25,632  $ 83,262  $ 79,495
           
SELLING, GENERAL AND ADMINISTRATIVE :          
GAAP selling, general and administrative   $ 12,675  $ 13,531  $ 11,406  $ 38,676  $ 32,903
Stock-based compensation expense  (3,250)  (3,742)  (1,703)  (10,214)  (4,682)
Acquisition related expenses  --  -- --   133  2,267
Non-GAAP selling, general and administrative   $ 9,425  $ 9,789  $ 9,703  $ 28,595  $ 30,488
           
APPLIED MICRO CIRCUITS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
  Nine Months Ended December 31,
  2012 2011
Operating activities:    
Net loss  $ (116,509)  $ (15,106)
Adjustments to reconcile net loss to net cash used for operating activities:    
Depreciation   7,247  6,000
Amortization of purchased intangibles   3,626  5,425
Stock-based compensation expense:    
Stock options   3,104  4,207
Restricted stock units   18,441  7,528
Warrants  1,289  — 
Veloce accrued liability  40,652  — 
Acquisition related adjustment  (133)  (2,267)
Net (gain) loss on disposals of property, equipment and other assets  (1,296)  10
Tax effect on other comprehensive income  (130)  — 
Restructuring charges  4,689  — 
Changes in operating assets and liabilities:    
Accounts receivable   5,304  (10,831)
Inventories   9,387  8,992
Other assets   (2,758)  (3,825)
Accounts payable   (3,907)  (5,124)
Accrued payroll and other liabilities   887  2,506
Deferred revenue   (841)  (465)
Net cash used for operating activities   (30,948)  (2,950)
Investing activities:    
Proceeds from sales and maturities of short-term investments  35,367  95,308
Purchases of short-term investments   (17,834)  (79,891)
Proceeds from sale of property, equipment and other assets  1,800  — 
Purchase of property, equipment and other assets  (8,454)  (11,899)
Proceeds from sale of strategic equity investment  7,146  — 
Purchase of strategic equity investment  (500)  (4,750)
Funding of a note receivable  (500)  — 
Net cash provided by (used for) investing activities   17,025  (1,232)
Financing activities:    
Proceeds from issuances of common stock   5,863  3,874
Funding of restricted stock units withheld for taxes  (2,772)  (2,739)
Repurchases of common stock  (654)  (20,852)
Funding of structured stock repurchase agreements   —   (10,000)
Payment of contingent consideration  (485)  — 
Other   (411)  (272)
Net cash provided by (used for) financing activities   1,541  (29,989)
Net decrease in cash and cash equivalents   (12,382)  (34,171)
Cash and cash equivalents at the beginning of the period  28,065  84,402
Cash and cash equivalents at the end of the period  $ 15,683  $ 50,231
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
         Diane Orr
         Phone: (408) 358-1617
         E-mail: dianer@orr-co.com

company logo

Stock quotes in this article: AMCC 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,434.10 +25.56 0.16%
S&P 500 1,869.01 +4.16 0.22%
NASDAQ 4,108.5660 +13.05 0.32%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs