Updated from 5:09 p.m. EDT
Applied Micro Circuits
met Wall Street expectations for itssecond fiscal quarter, though sales dropped 27% fromyear-ago levels.
The company posted revenues of $30 million, flatwith the prior quarter, and a GAAP loss of 24 centsper share, or $72.4 million.
The pro forma net loss of 4 cents per share was apenny better than Street estimates for a nickel loss.
And things don't seem likely to get any better forthe quarter underway. On a conference call, AMCC saidrevenues are likely to come in between $20 million and$25 million for the quarter ending in December -- farbelow current analyst expectations for $32 million.The higher estimate assumes communication revenuesstay relatively flat, management said.
AMCC also guided for a pro forma net loss of 5cents per share in its third fiscal quarter, a pennyworse than the current consensus estimate for a 4 centloss.
In the just-ended quarter, the company took acharge of $3 million to cover the costs ofrestructuring, primarily employee severance. It alsotook a write-off of $11.7 million to cover the cost ofequity investments that had lost value.
In a prepared statement, CEO Dave Rickey said,"Although our markets remain very challenging, wecontinue to focus on the areas we can impact, such asreducing our operating expenses, maintaining ourstrong cash position and increasing our future marketshare by strategically investing in new products. I ampleased with our results in those areas as we haveconsistently reduced our operating expenses duringthis downturn while maintaining our focus on keyprograms at our major customers."