Press Releases
| Applied Micro Circuits Corporation Reports Fourth Quarter Fiscal 2012 Financial Results |
SUNNYVALE, Calif., Apr 26, 2012 (GlobeNewswire via COMTEX) --Applied Micro Circuits Corporation (Nasdaq:AMCC) ("AppliedMicro") today reported its financial results for the fourth quarter of fiscal 2012, ended March 31 2012.
-- Q4 2012 net revenues were $48.8 million, down 13.5% sequentially and
down 16.8% year over year.
-- Q4 2012 GAAP net loss was $67.6 million or $1.10 per share compared to
net loss of $7.1 million or $0.12 per share for the third quarter of
fiscal 2012.
-- Q4 2012 non-GAAP EPS was $(0.10) per share on net loss of $6.2 million,
compared to $(0.02) per share on net loss of $1.1 million, for the third
quarter of fiscal 2012.
-- Total Cash and Short-term investments was approximately $113.8 million
as of March 31, 2012 compared to $117.3 million at the end of December
2011.
-- Following the end of the quarter, the Company announced a definitive
amendment to spin-in Veloce Technologies, Inc. for an initial
consideration of $60.4M, which was expensed in the quarter ended March
31, 2012, with additional earn-outs that could range from $0-$75M. The
spin-in will enable securing the world class team and integrating the
Veloce and APM teams in the ARM 64-bit development.
-- During the quarter, the Company announced the release of several new
products:
-- The industry's first standard 100G per second transponder/muxponder for
OTN and Datacenters;
-- TPO134 an OTU2 Add-Drop multiplexer with 16 clients in one device and
expands the ODU cross-connect capacity to 80Gps;
-- TPO415/C415, the industry's first standard OTN multiplexer to enable
100Gps OTU4 linecards
Net revenues for the fourth quarter of fiscal 2012 were $48.8 million compared to $56.3 million in the third quarter of fiscal 2012, representing a sequential decrease of 13.5% and a decrease of 16.8% over the $58.6 million in net revenues reported in the fourth quarter of fiscal 2011. Revenues for the full fiscal year of 2012 were $230.9 million compared to $247.7 million for the comparable period last year, a 7% decrease. The net loss on a generally accepted accounting principles (GAAP) basis for the fourth quarter of fiscal 2012 was $67.6 million or $1.10 per share. The fourth quarter GAAP net loss compares with a net loss of $7.1 million or $0.12 per share for the third quarter of fiscal 2012 and a net loss of $4.0 million or $0.06 per share for the fourth quarter of fiscal 2011. For the full fiscal year of 2012, GAAP net loss was $82.7 million or $1.33 per share compared to a net loss of $1.0 million or $0.02 per share for the full fiscal year 2011. Non-GAAP loss for the fourth quarter of fiscal 2012 was $6.2 million or $0.10 per share, compared to non-GAAP loss of $1.1 million or $0.02 per diluted share in the third quarter of fiscal 2012 and non-GAAP net income of $2.7 million or $0.04 per diluted share for the fourth quarter of fiscal 2011. For the full year, for fiscal 2012, non-GAAP net loss was $5.6 million or $0.09 per share compared to net income of $28.5 million or $0.42 per diluted share for fiscal 2011. "In early April, we announced the spin-in of Veloce, which is extremely significant to us in terms of integration of our processor teams and our ability to deliver our 64-bit ARM processor products and effectively execute our roadmap. Overall market softness impacted the base business during the quarter, but we are making sure we maintain focus on not only navigating the softness but on developing game changing products for the future," said Dr.Paramesh Gopi, President and Chief Executive Officer. Bob Gargus, Chief Financial Officer commented, "The market conditions continue to be challenging and we are very focused on managing our business effectively through the softness and as market conditions improve we remain poised to take advantage with our portfolio of market relevant 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 the Veloce acquisition consideration, restructuring charges (recoveries), amortization of purchased intangibles, stock-based compensation charges, impairment of strategic investment, realized gain on sale of strategic equity investment, other-than-temporary impairment on investments 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, April 26, 2012 at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss additional details regarding the Company's performance for the fourth quarter of fiscal 2012 and to provide guidance for the first quarter of fiscal 2013. You may access the conference call via any of the following:
Teleconference: 866-203-3206
Conference ID: 82970062
Web Broadcast: http://www.apm.com
888-286-8010 (access
code: 64022438,
available through May
Replay: 3, 2012)
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 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, 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.
-Financial Tables Follow-
APPLIED MICRO CIRCUITS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
---------- ----------
March 31, March 31,
ASSETS 2012 2011
---------- ----------
Current assets:
Cash, cash equivalents
and short-term
investments $ 113,846 $ 168,051
Accounts receivable, net 22,666 19,997
Inventories 23,244 26,561
Other current assets 31,105 16,784
---------- ----------
Total current assets 190,861 231,393
Property and equipment,
net 38,100 32,023
Goodwill 13,183 13,183
Purchased intangibles,
net 16,634 23,388
Other assets 10,274 8,670
---------- ----------
Total assets $ 269,052 $ 308,657
========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 21,383 $ 24,431
Other current
liabilities 45,563 22,416
---------- ----------
Total current
liabilities 66,946 46,847
Other long term
liabilities 32,870 --
Stockholders' equity 169,236 261,810
---------- ----------
Total liabilities and
stockholders' equity $ 269,052 $ 308,657
========== ==========
APPLIED MICRO CIRCUITS CORPORATION
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
----------------------------------- -----------------------
December
March 31, 31, March 31, March 31, March 31,
2012 2011 2011 2012 2011
----------- ---------- ---------- ----------- ----------
Net revenues $ 48,767 $ 56,347 $ 58,583 $ 230,887 $ 247,710
Cost of revenues 20,974 23,795 25,476 98,804 95,282
----------- ---------- ---------- ----------- ----------
Gross profit 27,793 32,552 33,107 132,083 152,428
Operating expenses:
Research and development 89,400 28,279 26,932 175,656 108,732
Selling, general and administrative 12,891 11,406 11,733 45,794 49,173
Amortization of purchased intangibles 650 650 1,713 3,202 5,285
Restructuring charges (recoveries),
net -- 2 (34) 875 532
----------- ---------- ---------- ----------- ----------
Total operating expenses 102,941 40,337 40,344 225,527 163,722
----------- ---------- ---------- ----------- ----------
Operating loss (75,148) (7,785) (7,237) (93,444) (11,294)
Interest and other income (expense),
net and other-than-temporary
impairment 7,897 914 3,179 11,684 10,687
----------- ---------- ---------- ----------- ----------
Loss from operations, before income
taxes (67,251) (6,871) (4,058) (81,760) (607)
Income tax expense (benefit) 331 206 (47) 928 399
----------- ---------- ---------- ----------- ----------
Net loss $ (67,582) $ (7,077) $ (4,011) $ (82,688) $ (1,006)
=========== ========== ========== =========== ==========
Basic and diluted net loss per share:
Net loss per share $ (1.10) $ (0.12) $ (0.06) $ (1.33) $ (0.02)
=========== ========== ========== =========== ==========
Shares used in calculating basic and
diluted net loss per share 61,587 60,990 64,236 62,245 65,160
=========== ========== ========== =========== ==========
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 Year Ended
----------------------------------- -----------------------
December
March 31, 31, March 31, March 31, March 31,
2012 2011 2011 2012 2011
----------- ---------- ---------- ----------- ----------
GAAP net loss $ (67,582) $ (7,077) $ (4,011) $ (82,688) $ (1,006)
Adjustments:
Stock-based compensation charges 6,639 4,433 3,774 18,374 16,684
Amortization of purchased intangibles 1,329 1,329 4,978 6,754 17,167
Veloce acquisition consideration 60,400 -- -- 60,400 --
Acquisition related (recoveries)
charges (265) -- -- (2,532) 859
Restructuring charges (recoveries), net -- 2 (34) 875 532
Impairment of strategic investment 1,000 -- -- 1,000 --
Other-than-temporary investment
impairment (77) (61) (1,914) (743) (5,284)
Realized gain on sale of strategic
equity investment (8,147) -- -- (8,147) --
Payroll taxes on certain stock option
exercises -- -- -- -- 4
Income tax adjustments 522 242 (129) 1,102 (481)
----------- ---------- ---------- ----------- ----------
Total GAAP to Non-GAAP adjustments 61,401 5,945 6,675 77,083 29,481
----------- ---------- ---------- ----------- ----------
Non-GAAP net loss (income) $ (6,181) $ (1,132) $ 2,664 $ (5,605) $ 28,475
=========== ========== ========== =========== ==========
Diluted net (loss) income per share $ (0.10) $ (0.02) $ 0.04 $ (0.09) $ 0.42
=========== ========== ========== =========== ==========
Shares used in calculating diluted net
loss (income) per share 61,587 60,990 65,741 62,245 67,097
=========== ========== ========== =========== ==========
Net (loss) income per share:
GAAP net loss per share $ (1.10) $ (0.12) $ (0.06) $ (1.33) $ (0.02)
GAAP to non-GAAP adjustments 1.00 0.10 0.10 1.24 0.44
----------- ---------- ---------- ----------- ----------
Non-GAAP net (loss) income per share $ (0.10) $ (0.02) $ 0.04 $ (0.09) $ 0.42
=========== ========== ========== =========== ==========
Reconciliation of shares used in
calculating non-GAAP net (loss) income
per share:
Shares used in calculating basic net
(loss) income per share 61,587 60,990 64,236 62,245 65,160
Adjustment for dilutive securities -- -- 1,505 -- 1,937
----------- ---------- ---------- ----------- ----------
Non-GAAP shares used in the EPS
calculation 61,587 60,990 65,741 62,245 67,097
=========== ========== ========== =========== ==========
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
-------------------------------- ----------------------
December
March 31, 31, March 31, March 31, March 31,
2012 2011 2011 2012 2011
---------- --------- --------- ---------- ----------
GROSS PROFIT:
GAAP gross profit $ 27,793 $ 32,552 $ 33,107 $ 132,083 $ 152,428
Amortization of purchased intangibles 679 679 3,265 3,552 11,882
Stock-based compensation expense 140 83 154 432 651
---------- --------- --------- ---------- ----------
Non-GAAP gross profit $ 28,612 $ 33,314 $ 36,526 $ 136,067 $ 164,961
========== ========= ========= ========== ==========
OPERATING EXPENSES:
GAAP operating expenses $ 102,941 $ 40,337 $ 40,344 $ 225,527 $ 163,722
Stock-based compensation expense (6,499) (4,350) (3,620) (17,942) (16,033)
Amortization of purchased intangibles (650) (650) (1,713) (3,202) (5,285)
Aquisition related recoveries
(charges) 265 -- -- 2,532 (859)
Veloce acquisition consideration (60,400) -- -- (60,400) --
Restructuring (charges) recoveries,
net -- (2) 34 (875) (532)
Payroll taxes on certain stock option
exercises -- -- -- -- (4)
---------- --------- --------- ---------- ----------
Non-GAAP operating expenses $ 35,657 $ 35,335 $ 35,045 $ 145,640 $ 141,009
========== ========= ========= ========== ==========
INTEREST AND OTHER INCOME (EXPENSE),
NET AND OTHER-THAN-TEMPORARY
IMPAIRMENT:
GAAP interest and other income and
other-than-temporary impairment, net $ 7,897 $ 914 $ 3,179 $ 11,684 $ 10,687
Realized gain on sale of strategic
equity investments (8,147) -- -- (8,147) --
Impairment of strategic investment 1,000 -- -- 1,000 --
Other-than-temporary investment
impairment (77) (61) (1,914) (743) (5,284)
---------- --------- --------- ---------- ----------
Non-GAAP interest and other income,
net $ 673 $ 853 $ 1,265 $ 3,794 $ 5,403
========== ========= ========= ========== ==========
INCOME TAX EXPENSE (BENEFIT):
GAAP income tax expense (benefit) $ 331 $ 206 $ (47) $ 928 $ 399
Income tax adjustments (522) (242) 129 (1,102) 482
---------- --------- --------- ---------- ----------
Non-GAAP income tax expense (benefit) $ (191) $ (36) $ 82 $ (174) $ 881
========== ========= ========= ========== ==========
RESEARCH AND DEVELOPMENT:
GAAP research and development $ 89,400 $ 28,279 $ 26,932 $ 175,656 $ 108,732
Stock-based compensation expense (3,735) (2,647) (2,288) (10,496) (8,999)
Veloce acquisition consideration (60,400) -- -- (60,400) --
Payroll taxes on certain stock option
exercises -- -- -- -- (2)
---------- --------- --------- ---------- ----------
Non-GAAP research and development $ 25,265 $ 25,632 $ 24,644 $ 104,760 $ 99,731
========== ========= ========= ========== ==========
SELLING, GENERAL AND ADMINISTRATIVE :
GAAP selling, general and
administrative $ 12,891 $ 11,406 $ 11,733 $ 45,794 $ 49,173
Stock-based compensation expense (2,764) (1,703) (1,332) (7,446) (7,034)
Aquisition related recoveries
(charges) 265 -- -- 2,532 (859)
Payroll taxes on certain stock option
exercises -- -- -- -- (2)
---------- --------- --------- ---------- ----------
Non-GAAP selling, general and
administrative $ 10,392 $ 9,703 $ 10,401 $ 40,880 $ 41,278
---------- --------- --------- ---------- ----------
APPLIED MICRO CIRCUITS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Year Ended March 31,
-----------------------
2012 2011
----------- ----------
Operating activities:
Net loss $ (82,688) $ (1,006)
Adjustments to reconcile net loss to net
cash (used in) provided by operating
activities:
Depreciation 8,436 7,243
Amortization of purchased intangibles 6,754 17,167
Stock-based compensation expense:
Stock options 5,298 5,592
Restricted stock units 13,076 11,092
Veloce acquisition consideration 60,400 --
Aquisition related recoveries (2,532) --
Capitalization of prior year's mask set
costs -- (1,177)
Realized gain on strategic investment,
net (7,147) --
Tax benefit from other comprehensive
income (123) --
Net loss (gain) on disposals of property 10 (322)
Changes in operating assets and
liabilities, net of amounts acquired:
Accounts receivable (2,669) 3,465
Inventories 3,317 (11,174)
Other assets (3,903) (1,561)
Accounts payable (4,451) 1,842
Accrued payroll and other accrued
liabilities (2,860) (1,162)
Deferred revenue (270) 956
----------- ----------
Net cash (used in) provided by
operating activities (9,352) 30,955
----------- ----------
Investing activities:
Proceeds from sales and maturities of
short-term investments 101,222 121,876
Purchases of short-term investments (103,046) (124,950)
Proceeds from sale of property and
equipment -- 365
Purchase of property, equipment and other
assets (13,264) (9,740)
Proceeds from sale of strategic investment -- 4,991
Purchase of strategic investment (4,750) (330)
Purchase of a business, net of cash
acquired -- (31,484)
----------- ----------
Net cash used for investing activities (19,838) (39,272)
----------- ----------
Financing activities:
Proceeds from issuances of common stock 6,736 8,045
Funding of restricted stock units withheld
for taxes (2,864) (2,746)
Repurchases of common stock (20,852) (40,063)
Funding of structured stock repurchase
agreements (10,000) (10,000)
Funds received from structured stock
repurchase agreements -- 15,512
Other (167) (555)
----------- ----------
Net cash used for financing activities (27,147) (29,807)
----------- ----------
Net decrease in cash and cash equivalents (56,337) (38,124)
Cash and cash equivalents at the beginning
of the period 84,402 122,526
----------- ----------
Cash and cash equivalents at the end of the
period 28,065 84,402
=========== ==========
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 |