Sprint Spinoff to Join S&P 500

Soon-to-be-independent Embarq replaces Applied Micro Circuits on the index.
Author:
Publish date:

Embarq

, the scheduled spinoff of

Sprint Nextel

(S) - Get Report

, will replace

Applied Micro Circuits

(AMCC)

on the

S&P 500

after the close of trading on May 17.

According to ratings agency

Standard & Poor's

, after market close on Wednesday, San Diego-based Applied Micro had a market capitalization of $1.04 billion; the minimum market capitalization necessary to be added to the index is $4 billion.

Overland Park, Kan.-based Embarq issued its first guidance last week, forecasting between $6.2 billion and $6.3 billion in operating revenue for 2006.

It estimated annual operating income between $1.45 billion and $1.55 billion, lower than the $1.76 billion the company said it would have reported last year had it been a separate company.

Embarq, which offers local and long-distance voice and data services, as well as high-speed Internet access, is set to become the fifth-largest local communications company in the U.S., according to Sprint Nextel.

Shares of Applied Micro, which designs semiconductors, processors and storage components for the communications and storage markets, was off 5%, or 18 cents, to $3.36 in recent after-hours trading Wednesday.

Embarq is scheduled to become an independent company in a transaction expected to close on or about May 17, pending final approval.