SUNNYVALE, Calif., July 25, 2012 (GLOBE NEWSWIRE) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) ("AppliedMicro") today reported its financial results for the first quarter of fiscal 2013, ended June 30, 2012.
-
Q1 2013 net revenues were $41.3 million, down 15.3% sequentially and down 32.1% year over year.
-
Q1 2013 GAAP net loss was $23.4 million or $0.37 per share compared to net loss of $67.6 million or $1.10 per share for the fourth quarter of fiscal 2012.
-
Q1 2013 non-GAAP EPS was $(0.18) per share on net loss of $11.4 million, compared to $(0.10) per share on net loss of $6.2 million, for the fourth quarter of fiscal 2012.
-
Total Cash and Short-term investments was approximately $96.1 million as of June 30, 2012 compared to $113.8 million at the end of March 2012.
-
During the quarter, the Company announced the release of several new products;
-
APM86491 Catalina System-on-a-Chip, a solution integrating high-performance network storage and 802.11ac WiFi wireless access into a single platform to provide the ultimate digital media experience for the connected home;
-
APM8669x, Black Mamba, the highest performing member of our PacketPro2TM family of multi-core processors which offers the industry's premier virtualization and domain protection capabilities designed to keep systems operating continuously;
-
In June 2012 we closed the previously announced acquisition of Veloce Technologies.
Net revenues for the first quarter of fiscal 2013 were $41.3 million compared to $48.8 million in the fourth quarter of fiscal 2012, representing a sequential decrease of 15.3% and a decrease of 32.1% over the $60.8 million in net revenues reported in the first quarter of fiscal 2012.
The net loss on a generally accepted accounting principles (GAAP) basis for the first quarter of fiscal 2013 was $23.4 million or $0.37 per share. The first quarter GAAP net loss compares with a net loss of $67.6 million or $1.10 per share for the fourth quarter of fiscal 2012 and a net loss of $6.9 million or $0.11 per share for the first quarter of fiscal 2012.
Non-GAAP loss for the first quarter of fiscal 2013 was $11.4 million or $0.18 per share, compared to non-GAAP loss of $6.2 million or $0.10 per share in the fourth quarter of fiscal 2012 and non-GAAP net income of $0.6 million or $0.01 per diluted share for the first quarter of fiscal 2012.
"We are making excellent progress in the development of our 64-bit ARM processor products. Although this quarter was a down quarter for us, we maintained focus and expect that our base business will improve going forward from this low point. We are encouraged by the continued design win traction that our products are attracting and believe that this bodes well for the future," said Dr.Paramesh Gopi, President and Chief Executive Officer.
Bob Gargus, Chief Financial Officer, commented, "Although market conditions remain challenging we remain cautiously optimistic about the remainder of our fiscal year and are tracking to our plan at this time."
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, impairment of strategic investment, realized gain on sale of strategic equity investment, other-than-temporary impairment on investments, warrant expense, Veloce acquisition consideration, acquisition related (recoveries) charges, 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 25, 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 first quarter of fiscal 2013 and to provide guidance for the second quarter of fiscal 2013. You may access the conference call via any of the following:
|
Teleconference: |
800-573-4754 |
|
Conference ID: |
39394636 |
|
Web Broadcast: |
http://www.apm.com |
|
Replay: |
888-286-8010 (access code: 13718424, available through August 2, 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, 2012, 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) |
|
|
|
|
|
|
June 30, |
March 31, |
|
ASSETS |
2012 |
2012 |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
Cash, cash equivalents and short-term investments |
$ 96,138 |
$ 113,846 |
|
Accounts receivable, net |
16,347 |
22,666 |
|
Inventories |
22,594 |
23,244 |
|
Other current assets |
23,035 |
31,105 |
|
Total current assets |
158,114 |
190,861 |
|
Property and equipment, net |
38,398 |
38,100 |
|
Goodwill |
13,183 |
13,183 |
|
Purchased intangibles, net |
15,305 |
16,634 |
|
Other assets |
12,743 |
10,274 |
|
Total assets |
$ 237,743 |
$ 269,052 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ 13,739 |
$ 21,383 |
|
Other current liabilities |
30,296 |
50,903 |
|
Total current liabilities |
44,035 |
72,286 |
|
Non-current liability: |
|
|
|
Veloce accrued liability |
25,308 |
27,530 |
|
Stockholders' equity |
168,400 |
169,236 |
|
Total liabilities and stockholders' equity |
$ 237,743 |
$ 269,052 |
|
|
|
|
|
APPLIED MICRO CIRCUITS CORPORATION |
|
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
June 30, |
March 31, |
June 30, |
|
|
2012 |
2012 |
2011 |
|
|
|
|
|
|
Net revenues |
$ 41,294 |
$ 48,767 |
$ 60,844 |
|
Cost of revenues |
18,355 |
20,974 |
26,331 |
|
Gross profit |
22,939 |
27,793 |
34,513 |
|
Operating expenses: |
|
|
|
|
Research and development |
34,771 |
89,400 |
28,368 |
|
Selling, general and administrative |
12,470 |
12,891 |
12,556 |
|
Amortization of purchased intangible assets |
650 |
650 |
1,099 |
|
Restructuring charges, net |
-- |
-- |
913 |
|
Total operating expenses |
47,891 |
102,941 |
42,936 |
|
Operating loss |
(24,952) |
(75,148) |
(8,423) |
|
Interest and other income (expense), net |
1,762 |
7,897 |
1,356 |
|
Loss before income taxes |
(23,190) |
(67,251) |
(7,067) |
|
Income tax expense (benefit) |
200 |
331 |
(190) |
|
Net loss |
$ (23,390) |
$ (67,582) |
$ (6,877) |
|
|
|
|
|
|
Basic and diluted net loss per share: |
|
|
|
|
Net loss per share |
$ (0.37) |
$ (1.10) |
$ (0.11) |
|
Shares used in calculating basic and diluted net loss per share |
62,409 |
61,587 |
63,878 |
|
|
|
|
|
APPLIED MICRO CIRCUITS CORPORATION |
|
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME (LOSS) |
|
(in thousands, except per share data) |
|
(unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
|
June 30, |
March 31, |
June 30, |
|
|
2012 |
2012 |
2011 |
|
|
|
|
|
|
GAAP net loss |
$ (23,390) |
$ (67,582) |
$ (6,877) |
|
Adjustments: |
|
|
|
|
Stock-based compensation charges |
7,689 |
6,639 |
4,178 |
|
Warrant expense |
1,289 |
— |
— |
|
Amortization of purchased intangibles |
1,329 |
1,329 |
2,614 |
|
Veloce acquisition consideration |
2,325 |
60,400 |
— |
|
Acquisition related recoveries |
(133) |
(265) |
— |
|
Restructuring charges, net |
— |
— |
913 |
|
Impairment of strategic investment |
— |
1,000 |
— |
|
Other-than-temporary investment impairment |
(1,089) |
(77) |
(12) |
|
Realized gain on sale of strategic equity investment |
— |
(8,147) |
— |
|
Income tax adjustments |
553 |
522 |
(209) |
|
Total GAAP to Non-GAAP adjustments |
11,963 |
61,401 |
7,484 |
|
Non-GAAP net (loss) income |
$ (11,427) |
$ (6,181) |
$ 607 |
|
|
|
|
|
|
Diluted (loss) income per share |
$ (0.18) |
$ (0.10) |
$ 0.01 |
|
|
|
|
|
|
Shares used in calculating diluted (loss) income per share |
62,409 |
61,587 |
65,003 |
|
|
|
|
|
|
Net (loss) income per share: |
|
|
|
|
GAAP loss per share |
$ (0.37) |
$ (1.10) |
$ (0.11) |
|
GAAP to non-GAAP adjustments |
0.19 |
1.00 |
0.12 |
|
Non-GAAP net (loss) income per share |
$ (0.18) |
$ (0.10) |
$ 0.01 |
|
|
|
|
|
|
Reconciliation of shares used in calculating non-GAAP (loss) income per share: |
|
|
|
|
Shares used in calculating the basic (loss) income per share |
62,409 |
61,587 |
63,878 |
|
Adjustment for dilutive securities |
— |
— |
1,125 |
|
Non-GAAP shares used in calculating diluted (loss) income per share |
62,409 |
61,587 |
65,003 |
|
|
|
|
|
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, |
|
|
2012 |
2012 |
2011 |
|
GROSS PROFIT: |
|
|
|
|
GAAP gross profit |
$ 22,939 |
$ 27,793 |
$ 34,513 |
|
Amortization of purchased intangibles |
679 |
679 |
1,515 |
|
Stock-based compensation expense |
262 |
140 |
111 |
|
Non-GAAP gross profit |
$ 23,880 |
$ 28,612 |
$ 36,139 |
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
GAAP operating expenses |
$ 47,891 |
$ 102,941 |
$ 42,936 |
|
Stock-based compensation expense |
(7,427) |
(6,499) |
(4,067) |
|
Warrant expense |
(1,289) |
— |
— |
|
Amortization of purchased intangibles |
(650) |
(650) |
(1,099) |
|
Acquisition related recoveries |
133 |
265 |
— |
|
Veloce acquisition consideration |
(2,325) |
(60,400) |
— |
|
Restructuring charges, net |
— |
— |
(913) |
|
Non-GAAP operating expenses |
$ 36,333 |
$ 35,657 |
$ 36,857 |
|
|
|
|
|
|
INTEREST AND OTHER INCOME (EXPENSE), NET: |
|
|
|
|
GAAP interest and other income, net |
$ 1,762 |
$ 7,897 |
$ 1,356 |
|
Realized gain on sale of strategic equity investments |
— |
(8,147) |
— |
|
Impairment of strategic investment |
— |
1,000 |
— |
|
Other-than-temporary investment impairment |
(1,089) |
(77) |
(12) |
|
Non-GAAP interest and other income, net |
$ 673 |
$ 673 |
$ 1,344 |
|
|
|
|
|
|
INCOME TAX (BENEFIT) EXPENSE: |
|
|
|
|
GAAP income tax expense (benefit) |
$ 200 |
$ 331 |
$ (190) |
|
Income tax adjustments |
(553) |
(522) |
209 |
|
Non-GAAP income tax (benefit) expense |
$ (353) |
$ (191) |
$ 19 |
|
|
|
|
|
|
RESEARCH AND DEVELOPMENT : |
|
|
|
|
GAAP research and development |
$ 34,771 |
$ 89,400 |
$ 28,368 |
|
Stock-based compensation expense |
(4,205) |
(3,735) |
(2,388) |
|
Warrant expense |
(1,289) |
— |
— |
|
Veloce acquisition consideration |
(2,325) |
(60,400) |
— |
|
Non-GAAP research and development |
$ 26,952 |
$ 25,265 |
$ 25,980 |
|
|
|
|
|
|
SELLING, GENERAL AND ADMINISTRATIVE : |
|
|
|
|
GAAP selling, general and administrative |
$ 12,470 |
$ 12,891 |
$ 12,556 |
|
Stock-based compensation expense |
(3,222) |
(2,764) |
(1,679) |
|
Acquisition related recoveries |
133 |
265 |
— |
|
Non-GAAP selling, general and administrative |
$ 9,381 |
$ 10,392 |
$ 10,877 |
|
|
|
|
|
APPLIED MICRO CIRCUITS CORPORATION |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(in thousands) |
|
(unaudited) |
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
2012 |
2011 |
|
Operating activities: |
|
|
|
Net loss |
$ (23,390) |
$ (6,877) |
|
Adjustments to reconcile net loss to net cash used for operating activities: |
|
|
|
Depreciation |
2,439 |
1,822 |
|
Amortization of purchased intangibles |
1,329 |
2,614 |
|
Stock-based compensation expense: |
|
|
|
Stock options |
1,488 |
1,573 |
|
Restricted stock units |
6,201 |
2,605 |
|
Warrants |
1,289 |
— |
|
Veloce accrued liability |
2,325 |
— |
|
Tax benefit from other comprehensive income |
— |
(367) |
|
Acquisition related adjustment |
(133) |
— |
|
Net loss on disposals of property |
— |
10 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
6,319 |
(4,160) |
|
Inventories |
650 |
(185) |
|
Other assets |
(1,045) |
(3,230) |
|
Accounts payable |
(4,751) |
624 |
|
Accrued payroll and other accrued liabilities |
(12,584) |
1,825 |
|
Deferred revenue |
(597) |
(448) |
|
Net cash used for operating activities |
(20,460) |
(4,194) |
|
Investing activities: |
|
|
|
Proceeds from sales and maturities of short-term investments |
14,182 |
41,891 |
|
Purchases of short-term investments |
(4,326) |
(57,879) |
|
Purchase of property, equipment and other assets |
(5,598) |
(4,533) |
|
Proceeds from sale of equity investment |
7,144 |
— |
|
Purchase of strategic equity investment |
(500) |
(2,500) |
|
Funding of a note receivable |
— |
(1,000) |
|
Net cash provided by (used for) investing activities |
10,902 |
(24,021) |
|
Financing activities: |
|
|
|
Proceeds from issuances of common stock |
3,330 |
587 |
|
Funding of restricted stock units withheld for taxes |
(216) |
(2,172) |
|
Repurchases of common stock |
(654) |
(3,097) |
|
Funding of structured stock repurchase agreements |
— |
(10,000) |
|
Other |
(253) |
(111) |
|
Net cash provided by (used for) financing activities |
2,207 |
(14,793) |
|
Net decrease in cash and cash equivalents |
(7,351) |
(43,008) |
|
Cash and cash equivalents at the beginning of the period |
28,065 |
84,402 |
|
Cash and cash equivalents at the end of the period |
$ 20,714 |
$ 41,394 |
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
Applied Micro Circuits Corporation |
