Applied Micro Shares Jump - TheStreet

Applied Micro Shares Jump

Cost-cutting wins fans.
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Applied Micro Circuits (AMCC) shares popped Friday after thechipmaker forecast growth in the coming months andpromised 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 goodnews late Thursday -- and in the same breath warned investors of arevenue shortfall for the quarter ended June 30.

Instead of the $59.6 million in sales that AppliedMicro 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 oncontinued weakness in the telecommunications market,as well as slow sales of processors due to productdelays and inventory issues.

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

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

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