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| Applied Micro Circuits Corporation Reports First Quarter Fiscal 2012 Financial Results |
SUNNYVALE, Calif., Jul 28, 2011 (GlobeNewswire via COMTEX) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) ("AppliedMicro") today reported its financial results for the first quarter of fiscal 2012, ended June 30, 2011.
-- Q1 2012 net revenues were $60.8 million, up 4% sequentially and up 0.1%
year over year.
-- Q1 2012 GAAP net loss was $6.9 million or $0.11 per share compared to
net loss of $4.0 million or $0.06 per share for the fourth quarter of
fiscal 2011.
-- Q1 2012 non-GAAP EPS was $0.01 per share on net income of $0.6 million,
compared to $0.04 per share on net income of $2.7 million, from
continuing operations, for the fourth quarter of fiscal 2011.
-- Total cash, cash equivalents and short-term investments was
approximately $142 million as of June 30, 2011 compared to $168 million
as of March 31, 2011. The decrease in cash is mainly due to stock
buyback contracts and investment in working capital.
-- During the quarter, the Company announced the introduction of the
following products:
-- APM86491 a high-performance System-on-a-Chip (SoC) featuring a 1.2GHz
PowerPC(R) 465 processing core for advanced Network Attached Storage
(NAS), Wireless Access Point (WAP) and media gateway systems for the
connected home market. The APM86491 offers twice the performance of
competing devices, reduced bill-of-materials (BOM) cost and
energy-efficient power consumption as low as 2.5W to bring
enterprise-class performance to consumer systems.
-- APM86791 PacketPro(TM) Gen2 embedded processor aimed at growing network
transport, enterprise and consumer markets. The APM86791 is designed to
deliver the industry's most advanced but cost effective network security
measures for enhanced protection against intrusion threats, system
hacking and theft of system-level intellectual property. The APM86791
leverages AppliedMicro's SLIMpro(TM) Trusted Management Module (TMM) to
offer multi-layered encryption and authentication capabilities that
manufacturers and network administrators need to make systems impervious
to the most sophisticated attacks on security keys, proprietary software
code and hardware.
-- S28010 Gearbox integrated circuit devices for 100 Gigabit Ethernet CFP
client optical interfaces. As the industry's first single-chip CMOS
offering, the S28010 enables cost-effective, power-efficient 100GBASE-R4
optical modules to expand connection speeds from 10Gbps to 100Gbps for
high-end switching and routing equipment.
Net revenues for the first quarter of fiscal 2012 were $60.8 million compared to $58.6 million in the fourth quarter of fiscal 2011, representing a sequential increase of 3.8% and an increase of 0.1% over the $60.8 million in net revenues reported in the first quarter of fiscal 2011. The net loss on a generally accepted accounting principles (GAAP) basis for the first quarter of fiscal 2012 was $6.9 million or $0.11 per share. The first quarter GAAP net loss compares with a net loss of $4.0 million or $0.06 per share for the fourth quarter of fiscal 2011 and a net income of $1.4 million or $0.02 per share for the first quarter of fiscal 2011. Non-GAAP income from continuing operations for the first quarter of fiscal 2012 was $0.6 million or $0.01 per diluted share, compared to non-GAAP income from continuing operations of $2.7 million or $0.04 per diluted share in the fourth quarter of fiscal 2011 and non-GAAP net income from continuing operations of $8.3 million or $0.12 per diluted share for the first quarter of fiscal 2011. "Although we achieved our revenue targets for the quarter we did experience unfavorable product mix primarily with anticipated "turns" revenue for the quarter. Despite the hit to our gross margins we continue to see a high level of interest in our products and technology and I remain convinced that the long term fundamental growth drivers of our business remain intact." said Dr.Paramesh Gopi, President and Chief Executive Officer. Bob Gargus, Chief Financial Officer commented, "The unexpected change in gross margin is disappointing and as a result we will take actions to rebalance our operating expenses while retaining focus on the delivery of our new high growth products." 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, stock-based compensation charges, other-than-temporary impairment on investments, 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, July 28, 2011 at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss additional details regarding the Company's performance for the first quarter of fiscal 2012 and to provide guidance for the second quarter of fiscal 2012. You may access the conference call via any of the following:
Teleconference: 866-314-4483
Conference ID: 92521966
Web Broadcast: http://www.apm.com
888-286-8010 (access
code: 99958441,
available through
Replay: August 4, 2011)
AppliedMicro Overview AppliedMicro is a global leader in energy conscious high performance computing and connectivity solutions for telco, enterprise, data center, consumer and SMB applications. AppliedMicro's corporate headquarters are located in Sunnyvale, California. Sales and engineering offices are located throughout the world. For further information regarding AppliedMicro, visit the company's Web site at http://www.apm.com. 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 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, 2011, 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)
---------- ----------
June 30, March 31,
ASSETS 2011 2011
---------- ----------
Current assets:
Cash, cash equivalents
and short-term
investments $ 141,850 $ 168,051
Accounts receivable, net 24,157 19,997
Inventories 26,746 26,561
Other current assets 20,534 16,784
---------- ----------
Total current assets 213,287 231,393
Property and equipment,
net 33,803 32,023
Goodwill 13,183 13,183
Purchased intangibles,
net 20,774 23,388
Other assets 11,775 8,670
---------- ----------
Total assets $ 292,822 $ 308,657
========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 24,232 $ 24,431
Other current
liabilities 24,208 22,416
---------- ----------
Total current
liabilities 48,440 46,847
Stockholders' equity 244,382 261,810
---------- ----------
Total liabilities and
stockholders' equity $ 292,822 $ 308,657
========== ==========
APPLIED MICRO CIRCUITS CORPORATION
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
---------------------------------
June 30, March 31, June 30,
2011 2011 2010
---------- ---------- ---------
Net revenues $ 60,844 $ 58,583 $ 60,810
Cost of revenues 26,331 25,476 22,485
---------- ---------- ---------
Gross profit 34,513 33,107 38,325
Operating expenses:
Research and development 28,368 26,932 25,777
Selling, general and administrative 12,556 11,733 11,624
Amortization of purchased intangibles 1,099 1,713 1,005
Restructuring charges (recoveries),
net 913 (34) 369
---------- ---------- ---------
Total operating expenses 42,936 40,344 38,775
---------- ---------- ---------
Operating loss (8,423) (7,237) (450)
Interest and other income (expense),
net 1,356 3,179 2,081
---------- ---------- ---------
(Loss) income before income taxes (7,067) (4,058) 1,631
Income tax (benefit) expense (190) (47) 240
---------- ---------- ---------
Net (loss) income $ (6,877) $ (4,011) $ 1,391
========== ========== =========
Basic net (loss) income per share $ (0.11) $ (0.06) $ 0.02
========== ========== =========
Shares used in calculating basic
(loss) income per share 63,878 64,236 66,005
========== ========== =========
Diluted net (loss) income per share $ (0.11) $ (0.06) $ 0.02
========== ========== =========
Shares used in calculating diluted
(loss) income per share 63,878 64,236 68,735
========== ========== =========
APPLIED MICRO CIRCUITS CORPORATION
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(in thousands, except per share data)
(unaudited)
Three Months Ended
--------------------------------
June 30, March 31, June 30,
2011 2011 2010
---------- ---------- --------
GAAP net (loss) income $ (6,877) $ (4,011) $ 1,391
Adjustments:
Stock-based compensation charges 4,178 3,774 3,846
Amortization of purchased intangibles 2,614 4,973 3,630
Restructuring charges (recoveries),
net 913 (34) 369
Other-than-temporary investment
impairment (12) (1,914) (908)
Income tax adjustments (209) (129) (17)
---------- ---------- --------
Total GAAP to Non-GAAP adjustments 7,484 6,670 6,920
---------- ---------- --------
Non-GAAP net income $ 607 $ 2,659 $ 8,311
========== ========== ========
Diluted income per share $ 0.01 $ 0.04 $ 0.12
========== ========== ========
Shares used in calculating diluted
income per share 65,003 65,741 68,735
========== ========== ========
Net (loss) income per share:
GAAP (loss) income per share $ (0.11) $ (0.06) $ 0.02
GAAP to non-GAAP adjustments 0.12 0.10 0.10
---------- ---------- --------
Non-GAAP net income per share $ 0.01 $ 0.04 $ 0.12
========== ========== ========
Reconciliation of shares used in
calculating non-GAAP income per share:
Shares used in calculating the basic
(loss) income per share 63,878 64,236 66,005
Adjustment for dilutive securities 1,125 1,505 2,730
---------- ---------- --------
Non-GAAP shares used in calculating
diluted income per share 65,003 65,741 68,735
========== ========== ========
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
-------------------------------
June 30, March 31, June 30,
2011 2011 2010
--------- --------- ---------
GROSS PROFIT:
GAAP gross profit $ 34,513 $ 33,107 $ 38,325
Amortization of purchased
intangibles 1,515 3,260 2,625
Stock-based compensation expense 111 154 153
--------- --------- ---------
Non-GAAP gross profit $ 36,139 $ 36,521 $ 41,103
========= ========= =========
OPERATING EXPENSES:
GAAP operating expenses $ 42,936 $ 40,344 $ 38,775
Stock-based compensation expense (4,067) (3,620) (3,693)
Amortization of purchased
intangibles (1,099) (1,713) (1,005)
Restructuring (charges) recoveries,
net (913) 34 (369)
--------- --------- ---------
Non-GAAP operating expenses $ 36,857 $ 35,045 $ 33,708
========= ========= =========
INTEREST AND OTHER INCOME (EXPENSE),
NET
GAAP interest and other income, net $ 1,356 $ 3,179 $ 2,081
Other-than-temporary investment
impairment (12) (1,914) (908)
--------- --------- ---------
Non-GAAP interest and other income,
net $ 1,344 $ 1,265 $ 1,173
========= ========= =========
INCOME TAX (BENEFIT) EXPENSE:
GAAP income tax (benefit) expense $ (190) $ (47) $ 240
Income tax adjustments 209 129 17
--------- --------- ---------
Non-GAAP income tax expense $ 19 $ 82 $ 257
========= ========= =========
RESEARCH AND DEVELOPMENT :
GAAP research and development $ 28,368 $ 26,932 $ 25,777
Stock-based compensation expense (2,388) (2,288) (1,971)
--------- --------- ---------
Non-GAAP research and development $ 25,980 $ 24,644 $ 23,806
========= ========= =========
SELLING, GENERAL AND ADMINISTRATIVE :
GAAP selling, general and
administrative $ 12,556 $ 11,733 $ 11,624
Stock-based compensation expense (1,679) (1,332) (1,722)
--------- --------- ---------
Non-GAAP selling, general and
administrative $ 10,877 $ 10,401 $ 9,902
========= ========= =========
APPLIED MICRO CIRCUITS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
June 30,
---------------------
2011 2010
---------- ---------
Operating activities:
Net (loss) income $ (6,877) $ 1,391
Adjustments to reconcile net (loss) income to
net cash (used for) provided by operating
activities:
Depreciation 1,822 1,885
Amortization of purchased intangibles 2,614 3,630
Stock-based compensation expense:
Stock options 1,573 987
Restricted stock units 2,605 2,859
Tax benefit from other comprehensive
income (367) --
Capitalization of prior years mask set
costs -- (1,177)
Net loss (gain) on disposals of property 10 (8)
Changes in operating assets and
liabilities, net of amounts acquired:
Accounts receivable (4,160) 2,686
Inventories (185) (2,010)
Other assets (3,230) 225
Accounts payable 624 (1,183)
Accrued payroll and other accrued
liabilities 1,825 1,718
Deferred revenue (448) 230
---------- ---------
Net cash (used for) provided by
operating activities (4,194) 11,233
---------- ---------
Investing activities:
Purchases of short-term investments (57,879) (76,014)
Proceeds from sales and maturities of
short-term investments 41,891 5,121
Purchase of property and equipment (4,533) (1,527)
Proceeds from sale of property and
equipment -- 20
Purchase of strategic investment (2,500) --
Proceeds from sale of strategic investment -- 4,991
Funding of a note receivable (1,000) --
---------- ---------
Net cash used for investing activities (24,021) (67,409)
---------- ---------
Financing activities:
Proceeds from issuances of common stock 587 1,531
Funding of restricted stock units withheld
for taxes (2,172) (2,132)
Repurchases of common stock (3,097) --
Funding of structured stock repurchase
agreements (10,000) (10,000)
Funds received from structured stock
repurchase agreements -- 10,273
Other (111) (10)
---------- ---------
Net cash used for financing activities (14,793) (338)
---------- ---------
Net decrease in cash and cash equivalents (43,008) (56,514)
Cash and cash equivalents at the beginning
of the period 84,402 122,526
---------- ---------
Cash and cash equivalents at the end of the
period 41,394 66,012
========== =========
This news release was distributed by GlobeNewswire, www.globenewswire.com SOURCE: Applied Micro Circuits Corporation 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 Tally Kaplan-Porat Phone: (408) 702-3139 E-Mail: tkaplan@apm.com |
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