Applied Micro Circuits Corporation Reports Fiscal Year 2014 Revenue Up 10.5% Year-Over-Year

SUNNYVALE, Calif., April 24, 2014 (GLOBE NEWSWIRE) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) ("AppliedMicro") today reported its financial results for the fiscal fourth quarter and full year ended March 31, 2014.

Fiscal Q4 2014 Financial Information
  • Consolidated net revenue of $51.8 million
  • GAAP net income of $23.1 million or $0.30 per diluted share
  • Non-GAAP net income of $0.7 million or $0.01 earnings per diluted share
  • Total cash, cash equivalents and short-term investments were approximately $106.6 million as of March 31, 2014

Fiscal 2014 Full-Year Financial Information
  • Consolidated net revenue of $216.2 million
  • GAAP net loss of $5.7 million or $0.08 per share
  • Non-GAAP net income of $5.8 million or $0.08 earnings per diluted share

Commenting on AppliedMicro's fourth quarter and fiscal 2014 full year operations, Dr. Paramesh Gopi, President and Chief Executive Officer, said, "We are very excited with the progress we have made to commercialize X-Gene™. Design win momentum is strong, and we have purchase orders in-hand. We expect to begin sampling X-Gene 2 later this spring." Dr. Gopi continued, "In addition, our leadership in the OTN / converged Ethernet market has positioned us very well to benefit from the adoption of 100Gbps connectivity within and between data centers."

Doug Ahrens, Chief Financial Officer, said, "The base business performed better than our expectations on the bottom line and continues to support the ongoing development of our X-Gene and X-Weave™ growth initiatives. We are also very pleased to have further strengthened our balance sheet in the quarter."

Fiscal 2014 Fourth Quarter Results

Total net revenue for the fiscal 2014 fourth quarter was $51.8 million compared to $54.8 million in the third quarter of fiscal 2014 and $56.3 million in the fourth quarter of fiscal 2013, representing a decrease of 6% sequentially and a decrease of 8% year-over-year.

Net income on a generally accepted accounting principles (GAAP) basis for the fiscal 2014 fourth quarter was $23.1 million, or $0.30 per diluted share. This compares to a GAAP net loss of $7.3 million, or $0.10 per share, in the prior quarter and a GAAP net loss of $17.6 million, or $0.26 per share, in the fourth quarter of fiscal 2013.  

Non-GAAP net income for the fiscal 2014 fourth quarter was $0.7 million, or $0.01 per diluted share, compared to non-GAAP net income of $1.6 million, or $0.02 per diluted share, in the prior quarter and non-GAAP net income of $0.1 million, or $0.00 per diluted share, in the same quarter last year.  

AppliedMicro provides non-GAAP results as additional information relating to its financial condition and business trends. This information should be considered in conjunction with corresponding GAAP measures. A reconciliation between GAAP and non-GAAP financial results is provided in the financial tables section of this press release. 

Conference Call and Webcast

Management will host a conference call and simultaneous webcast to discuss fourth quarter results and business and financial outlook today, April 24, 2014, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time.  
DIAL-IN:  (877) 415-3183
  (857) 244-7326
   
PASSCODE:  42709447
   
WEBCAST: Investor Relations section of the Company's website at www.apm.com

A replay of the call will be available starting approximately one hour after the completion of the call and can be accessed by dialing 888-286-8010 or 617-801-6888 and using the access code 40927216. The replay will be available through May 1, 2014.

About AppliedMicro

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.

(C) Copyright 2014, Applied Micro Circuits Corporation. AppliedMicro, X-Gene, X-Weave, Server on a Chip, and Cloud Server are trademarks or registered trademarks of Applied Micro Circuits Corporation. All other product or service names are the property of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements that reflect the Company's current views and expectations with respect to future events and financial performance, including statements regarding the Company's strategic focus; product cycles; new product development, commercialization and customer acceptance; the development of the X-Gene™ ecosystem; market and technological trends including the adoption of ARM-based products and the anticipated migration to 100G within and between data centers; the anticipated performance of the Company's base business; and future revenues, expenses and liquidity. 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, and in particular, new products such as X-Gene and X-Weave; potential problems or delays in product development and validation; competitors' product introductions, pricing decisions and other competitive factors; rapid technological change; increased supplier lead times and other supply chain constraints; the potential for manufacturing yield problems and product bugs or defects; changes in the businesses and financial condition of the Company's major customers and ecosystem partners, including their strategic and budgeting decisions; reductions, rescheduling or cancellation of customer orders; successful management of key service providers and recently acquired businesses; the possibility of unexpected expenses; potential changes in capital needs and liquidity; legal and regulatory developments; 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 Quarterly Report on Form 10-Q for the quarter ended December 31, 2013, 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.
APPLIED MICRO CIRCUITS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
     
  March 31, March 31,
ASSETS 2014 2013
     
Current assets:    
Cash, cash equivalents and short-term investments  $106,583  $85,476
Accounts receivable, net  25,178  24,575
Inventories  18,946  12,900
Other current assets  16,799  17,998
Total current assets  167,506  140,949
Property and equipment, net  20,746  34,391
Goodwill  11,425  13,183
Purchased intangibles, net  105  11,991
Other assets  7,754  10,866
Total assets  $207,536  $211,380
     
LIABILITIES AND STOCKHOLDERS' EQUITY
     
Current liabilities:    
Accounts payable  $26,194  $17,650
Other current liabilities  28,961  96,439
Total current liabilities  55,155  114,089
Non-current liabilities:    
Other long-term liabilities 3,145  15,787
Stockholders' equity  149,236  81,504
Total liabilities and stockholders' equity  $207,536  $211,380
 
 
APPLIED MICRO CIRCUITS CORPORATION
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
           
  Three Months Ended Year Ended
  March 31, December 31, March 31, March 31, March 31,
  2014 2013 2013 2014 2013
           
Net revenues  $51,771  $54,844  $56,326  $216,150  $195,642
Cost of revenues  19,806  21,644  21,174  85,189  83,048
Gross profit  31,965  33,200  35,152  130,961  112,594
Operating expenses:          
Research and development  25,653  29,870  35,554  146,579  187,419
Selling, general and administrative  9,325  10,930  13,008  38,927  51,684
Amortization of purchased intangible assets  62  62  337  316  1,926
Restructuring charges, net  4  38  217  1,134  6,435
Gain on sale of building  (25,815)  --  --  (25,815)  --
Gain on sale of TPack  --  --  --  (19,699)  --
Total operating expenses  9,229  40,900  49,116  141,442  247,464
Operating income (loss)   22,736  (7,700)  (13,964)  (10,481)  (134,870)
Interest and other income (expense), net  418  617  (4,654)  5,406  201
Income (loss) before income taxes  23,154  (7,083)  (18,618)  (5,075)  (134,669)
Income tax expense (benefit)  38  201  (1,012)  619  (554)
Net income (loss)  $23,116  $(7,284)  $(17,606)  $(5,694)  $(134,115)
           
Basic net income (loss) per share: $0.31 $(0.10) $(0.26) $(0.08) $(2.06)
Shares used in calculating basic net income (loss) per share  75,629  73,989  67,566  72,897  65,258
           
Diluted net income (loss) per share: $0.30 $(0.10) $(0.26) $(0.08) $(2.06)
Shares used in calculating diluted net income (loss) per share  77,193  73,989  67,566  72,897  65,258
 
 
APPLIED MICRO CIRCUITS CORPORATION
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME (LOSS)
(in thousands, except per share data)
(unaudited)
           
  Three Months Ended Year Ended
  March 31, December 31, March 31, March 31, March 31,
  2014 2013 2013 2014 2013
           
GAAP net income (loss)  $23,116  $(7,284)  $(17,606)  $(5,694)  $(134,115)
Adjustments:          
Stock-based compensation charges  3,591  5,882  2,691  17,021  24,236
Warrant expense  --  --  --  --  1,289
Amortization of purchased intangibles  62  62  1,017  482  4,643
Veloce acquisition consideration  --  2,945  9,608  42,684  66,188
Acquisition related recoveries   --  --  --  --  (133)
Restructuring charges, net  4  38  217  1,134  6,435
Impairment of strategic investment  --  --  2,250  --  2,250
Gain on sale of building  (25,815)  --  --  (25,815)  --
Sale of equipment and other assets  --  --  --  --  (1,299)
Impairment of notes receivable and other assets  --  --  1,800  --  1,800
Gain on sale of TPack  --  --  --  (19,699)  --
Impairment of marketable securities  (16)  (17)  1,121  (3,992)  (412)
Income tax adjustments  (212)  (48)  (1,015)  (368)  336
Total GAAP to Non-GAAP adjustments  (22,386)  8,862  17,689  11,447  105,333
           
Non-GAAP net income (loss)  $730  $1,578  $83  $5,753  $(28,782)
           
Diluted income (loss) per share $0.01 $0.02 $0.00 $0.08 $(0.44)
           
Shares used in calculating diluted income (loss) per share   77,193  75,754  68,522  74,371  65,258
           
Net income (loss) per share:        
GAAP income (loss) per share  $0.30 $(0.10) $(0.26) $(0.08) $(2.06)
GAAP to non-GAAP adjustments  (0.29) 0.12 0.26 0.16 1.62
Non-GAAP net income (loss) per share $0.01 $0.02 $0.00 $0.08 $(0.44)
           
Reconciliation of shares used in calculating non-GAAP income (loss) per share:      
Shares used in calculating the basic income (loss) per share   75,629  73,989  67,566  72,897  65,258
Adjustment for dilutive securities   1,564  1,765  956  1,474  -- 
Non-GAAP shares used in calculating diluted income (loss) per share  77,193  75,754  68,522  74,371  65,258
   
   
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 Year Ended
  March 31, December 31, March 31, March 31, March 31,
  2014 2013 2013 2014 2013
GROSS PROFIT:          
GAAP gross profit  $31,965  $33,200  $35,152  $130,961  $112,594
Amortization of purchased intangibles  --  --  680  166  2,717
Stock-based compensation expense  102  120  95  445  692
Non-GAAP gross profit  $32,067  $33,320  $35,927  $131,572  $116,003
           
OPERATING EXPENSES:          
GAAP operating expenses  $9,229  $40,900  $49,116  $141,442  $247,464
Stock-based compensation expense  (3,489)  (5,762)  (2,596)  (16,576)  (23,544)
Warrant expense  --  --  --  --  (1,289)
Amortization of purchased intangibles  (62)  (62)  (337)  (316)  (1,926)
Acquisition related expenses   --  --  --  --  133
Veloce acquisition consideration  --  (2,945)  (9,608)  (42,684)  (66,188)
Gain on sale of building  25,815  --  --  25,815  -- 
Gain on sale of TPack  --  --  --  19,699  --
Restructuring charges, net  (4)  (38)  (217)  (1,134)  (6,435)
Non-GAAP operating expenses  $31,489  $32,093  $36,358  $126,246  $148,215
           
INTEREST AND OTHER INCOME (EXPENSE), NET        
AND OTHER-THAN-TEMPORARY IMPAIRMENT:        
GAAP interest and other income (expense), net  $418  $617  $(4,654)  $5,406  $201
Impairment of strategic investment  --  --  2,250  --  2,250
Sale of equipment and other assets  --  --  --  --  (1,299)
Impairment of notes receivable and other assets  --  --  1,800  --  1,800
Other-than-temporary investment impairment   (16)  (17)  1,121  (3,992)  (412)
Non-GAAP interest and other income (expense), net  $402  $600  $517  $1,414  $2,540
           
INCOME TAX EXPENSE (BENEFIT):          
GAAP income tax expense (benefit)  $38  $201  $(1,012)  $619  $(554)
Income tax adjustments  212  48  1,015  368  (336)
Non-GAAP income tax expense (benefit)   $250  $249  $3  $987  $(890)
           
RESEARCH AND DEVELOPMENT :          
GAAP research and development   $25,653  $29,870  $35,554  $146,579  $187,419
Stock-based compensation expense  (1,503)  (1,546)  (1,026)  (6,390)  (11,760)
Warrant expense  --  --  --  --  (1,289)
Veloce acquisition consideration  --  (2,945)  (9,608)  (42,684)  (66,188)
Non-GAAP research and development   $24,150  $25,379  $24,920  $97,505  $108,182
           
SELLING, GENERAL AND ADMINISTRATIVE :        
GAAP selling, general and administrative   $9,325  $10,930  $13,008  $38,927  $51,684
Stock-based compensation expense  (1,986)  (4,216)  (1,570)  (10,186)  (11,784)
Acquisition related expenses  --  --  --  --  133
Non-GAAP selling, general and administrative   $7,339  $6,714  $11,438  $28,741  $40,033
 
 
APPLIED MICRO CIRCUITS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
     
  Year Ended March 31,
  2014 2013
Operating activities:    
Net loss  $ (5,694)  $ (134,115)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation   10,273  9,542
Amortization of purchased intangibles   482  4,643
Stock-based compensation expense:    
Stock options   2,519  3,469
Restricted stock units   14,502  20,767
Warrants  --   1,289
Veloce accrued liability  42,684  66,188
Tax effect on other comprehensive income  (40)  (989)
Noncash restructuring charges  298  4,719
Acquisition related adjustment  --   (133)
Net gain on sale of TPack  (19,699)  -- 
Net gain on sale of building  (25,815)  -- 
Net gain on disposals of property, equipment and other assets  (23)  (1,293)
Impairment loss on strategic investments, net  --   2,250
Impairment of short-term investments and marketable securities  --   1,143
Write-off of notes receivable and other assets  --   1,800
Changes in operating assets and liabilities:    
Accounts receivable   (837)  (1,909)
Inventories   (6,049)  10,344
Other assets   3,232  (2,871)
Accounts payable   5,778  (622)
Accrued payroll and other accrued liabilities   (671)  (82)
Veloce accrued liability  (63,657)  (16,537)
Deferred revenue   (770)  (668)
Net cash used for operating activities   (43,487)  (33,065)
Investing activities:    
Proceeds from sales and maturities of short-term investments  44,450  42,164
Purchases of short-term investments   (18,081)  (21,633)
Proceeds from sale of TPack  29,498  -- 
Proceeds from sale of property, equipment and other assets  70  1,800
Proceeds from sale of building  40,176  -- 
Purchase of property, equipment and other assets  (5,952)  (9,045)
Proceeds from sale of strategic equity investment  1,286  7,146
Purchase of strategic equity investment  --   (500)
Net cash provided by investing activities   91,447  19,932
Financing activities:    
Proceeds from issuances of common stock   11,619  8,873
Funding of restricted stock units withheld for taxes  (6,550)  (3,121)
Repurchase of common stock  --   (653)
Payment of contingent consideration  --   (485)
Other   (555)  (481)
Net cash provided by financing activities   4,514  4,133
Net increase (decrease) in cash and cash equivalents   52,474  (9,000)
Cash and cash equivalents at the beginning of the period  19,065  28,065
Cash and cash equivalents at the end of the period  $ 71,539  $ 19,065
CONTACT: Investor Relations Contact:         Traci Tsuchiguchi         Phone: (408) 542-8353         E-Mail: ttsuchiguchi@apm.com                  Media Contact:         Mike Major         Phone: (408) 542-8831         E-mail: mmajor@apm.com

company logo

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX