Watch Live

Tweet TWEET

Applied Micro Circuits Corporation Reports Fourth Quarter Fiscal 2013 Financial Results

Applied Micro Circuits Corporation Reports Fourth Quarter Fiscal 2013
Financial Results

SUNNYVALE, Calif., April 25, 2013 (GLOBE NEWSWIRE) -- Applied Micro Circuits
Corporation (Nasdaq:AMCC) ("AppliedMicro" or the "Company") today reported its
financial results for the fourth quarter of fiscal 2013, ended March 31, 2013.

  *Q4 FY2013 net revenues were $56.3 million, up 9.0% sequentially and 15.5%
    year over year.
    
  *Q4 FY2013 non-GAAP EPS was $0.00 per diluted share on net income of $0.1
    million, compared to $(0.10) per share on a net loss of $6.9 million, for
    the third quarter of fiscal 2013.
    
  *Q4 FY2013 GAAP net loss was $30.2 million or $(0.45) per share, compared
    to net loss of $71.6 million or $(1.08) per share for the third quarter of
    fiscal 2013.
    
  *Total Cash, cash equivalents and short-term investments was approximately
    $85.5 million as of March 31, 2013, compared to $84.2 million as of
    December 31, 2012.
    
  *On April 22, 2013, the Companycompleted the sale of the outstanding
    shares of TPack A/S and certain specified intellectual property (IP)
    assets owned by the Company related to TPack's business to Altera
    Corporation for a total purchase price of approximately $33.5 million,
    subject to adjustments. The Company retains a license to the TPack IP.
    
  *In April, the Company announced a strategic cooperation initiative with
    Altera Corporation to jointly develop and market optimized solutions for
    data center applications.
  *The Company solidified its leadership in the cloud server market category
    by sampling its X-Gene™ Server on a Chip™ solution to customers and
    partners including HP, Dell, Red Hat and others. HP also announced that a
    Moonshot server featuring X-Gene is scheduled to be released in the second
    half of 2013.

Net revenues for the fourth quarter of fiscal 2013 were $56.3 million compared
to $51.7 million in the third quarter of fiscal 2013, representing a
sequential increase of 9.0% and an increase of 15.5% over the $48.8 million in
net revenues reported in the fourth quarter of fiscal 2012. Revenues for the
full fiscal year 2013 were $195.6 million compared to $230.9 million
forfiscal year 2012, representing a 15.3% decrease.

The net loss on a generally accepted accounting principles (GAAP) basis for
the fourth quarter of fiscal 2013 was $30.2 million or $(0.45) per share. The
fourth quarter GAAP net loss compares with a net loss of $71.6 million or
$(1.08) per share for the third quarter of fiscal 2013 and a net loss of $67.6
million or $(1.10) per share for the fourth quarter of fiscal 2012. For the
full fiscal year 2013, GAAP net loss was $146.8 million or $(2.25) per share
compared to a net loss of $82.7 million or $(1.33) per share for the full
fiscal year 2012.

Non-GAAP income for the fourth quarter of fiscal 2013 was $0.1 million or
$0.00 per diluted share, compared to non-GAAP loss of $6.9 million or $(0.10)
per share in the third quarter of fiscal 2013 and non-GAAP net loss of $6.2
million or $(0.10) per share for the fourth quarter of fiscal 2012. For the
full fiscal year 2013, non-GAAP net loss was $28.8 million or $(0.44) per
share compared to net loss of $5.6 million or $(0.09) per share for fiscal
year2012.

"We fortified our financial position by achieving cash flow neutrality and
substantiated our market category leadership in the ARM cloud server space by
sampling X-Gene server platforms to our key customers," said Dr. Paramesh
Gopi, President and Chief Executive Officer.

Bob Gargus, Chief Financial Officer, commented, "We met our goal of delivering
non-GAAP break-even results. Development progress and initial customer
reaction are better than expected. This positions us well to take advantage of
the growth we anticipate in the future".

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, Veloce acquisition
consideration, stock-based compensation charges, other-than-temporary
impairment on investments, impairment of notes receivable and other assets,
one-time acquisition related recoveries, sale of equipment and other assets,
warrant expense, 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, April 25,
2013 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
2013 and to provide guidance for the first quarter of fiscal 2014. You may
access the conference call via any of the following:

  Teleconference: 800-884-5695
  Conference ID:  67598661
  Web Broadcast:  http://www.apm.com
  Replay:         888-286-8010 (access code: 65095963, available through May
                  9, 2013)

AppliedMicro Overview

Applied Micro Circuits Corporation is a global leader in computing and
connectivity solutions for next-generation cloud infrastructure and data
centers. AppliedMicro delivers silicon solutions that dramatically lower total
cost of ownership. Corporate headquarters are located in Sunnyvale,
California. www.apm.com.

Applied Micro Circuits Corporation, AppliedMicro, the AppliedMicro logo,
X-Gene and Server on a Chip are trademarks or registered trademarks of Applied
Micro Circuits Corporation. All other product or service names are the
property of their respective owners.

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 chip performance of the 40nm
and 28nm ARM^® 64-Bit X Gene™ Server on a Chip™ products, the TAM for such
products, the estimated range and timing of payments for the Veloce
acquisition, product development cycles and schedules, design-win pipeline,
strategic 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, 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)
                                                          
                                                 March 31, March 31,
ASSETS                                            2013      2012
                                                          
                                                          
Current assets:                                            
Cash, cash equivalents and short-term investments $85,476  $113,846
Accounts receivable, net                          24,575   22,666
Inventories                                       12,900   23,244
Other current assets                              17,998   31,105
Total current assets                              140,949  190,861
Property and equipment, net                       34,391   38,100
Goodwill                                          13,183   13,183
Purchased intangibles, net                        11,991   16,634
Other assets                                      10,866   10,274
Total assets                                      $211,380 $269,052
                                                          
LIABILITIES AND STOCKHOLDERS' EQUITY
                                                          
                                                          
Current liabilities:                                       
Accounts payable                                  $17,650  $21,383
Other current liabilities                         96,439   50,903
Total current liabilities                         114,089  72,286
Non-current liability:                                     
Other long-term liabilities                       28,429   27,530
Stockholders' equity                              68,862   169,236
Total liabilities and stockholders' equity        $211,380 $269,052


APPLIED MICRO CIRCUITS CORPORATION
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
                                                               
                      Three Months Ended               Year Ended
                      March 31,  December   March 31,  March 31,   March 31,
                                  31,
                      2013       2012       2012       2013        2012
                                                               
Net revenues           $56,326   $51,698   $48,767   $195,642   $230,887
Cost of revenues       21,174    22,958    20,974    83,048     98,804
Gross profit           35,152    28,740    27,793    112,594    132,083
Operating expenses:                                             
Research and           48,196    82,711    89,400    200,061    175,656
development
Selling, general and   13,008    12,675    12,891    51,684     45,794
administrative
Amortization of
purchased intangible   337       338       650       1,926      3,202
assets
Restructuring charges, 217       6,218     --        6,435      875
net
Total operating        61,758    101,942   102,941   260,106    225,527
expenses
Operating loss         (26,606)  (73,202)  (75,148)  (147,512)  (93,444)
Interest and other
income (expense), net
and                    (4,654)   2,258     7,897     201        11,684
other-than-temporary
impairment
Loss before income     (31,260)  (70,944)  (67,251)  (147,311)  (81,760)
taxes
Income tax (benefit)   (1,012)   618       331       (554)      928
expense
Net loss               $(30,248) $(71,562) $(67,582) $(146,757) $(82,688)
                                                               
Basic and diluted net                                           
loss per share:
Net loss per share     $(0.45)    $(1.08)    $(1.10)    $(2.25)     $(1.33)
Shares used in
calculating basic and  67,566    66,113    61,587    65,258     62,245
diluted net loss per
share


APPLIED MICRO CIRCUITS CORPORATION
RECONCILIATION OF GAAP NET (LOSS) INCOME TO NON-GAAP NET (LOSS) INCOME
(in thousands, except per share data)
(unaudited)
                                                               
                      Three Months Ended               Year Ended
                      March 31,  December   March 31,  March 31,   March 31,
                                  31,
                      2013       2012       2012       2013        2012
                                                               
GAAP net loss          $(30,248) $(71,562) $(67,582) $(146,757) $(82,688)
Adjustments:                                                    
Stock-based            2,691     6,222     6,639     24,236     18,374
compensation charges
Warrant expense        --        --        --        1,289      --
Amortization of        1,017     1,017     1,329     4,643      6,754
purchased intangibles
Veloce acquisition     22,250    51,930    60,400    78,830     60,400
consideration
Acquisition related    --        --        (265)     (133)      (2,532)
recoveries
Restructuring charges, 217       6,218     --        6,435      875
net
Impairment of          2,250     --        1,000     2,250      1,000
strategic investment
Impairment of notes
receivable and other   1,800     --        --        1,800      --
assets
Sale of equipment and  --        (1,299)   --        (1,299)    --
other assets
Other-than-temporary   1,121     (270)     (77)      (412)      (743)
investment impairment
Realized gain on sale
of strategic equity    --        --        (8,147)   --         (8,147)
investment
Income tax adjustments (1,015)   832       522       336        1,102
Total GAAP to Non-GAAP 30,331    64,650    61,401    117,975    77,083
adjustments
                                                               
Non-GAAP net income    $83       $(6,912)  $(6,181)  $(28,782)  $(5,605)
(loss)
                                                               
Diluted income (loss)  $0.00      $(0.10)    $(0.10)    $(0.44)     $(0.09)
per share
                                                               
Shares used in
calculating diluted    68,522    66,113    61,587    65,258     62,245
income (loss) per
share
                                                               
Net income (loss) per                                           
share:
GAAP loss per share   $(0.45)    $(1.08)    $(1.10)    $(2.25)     $(1.33)
GAAP to non-GAAP       0.45       0.98       1.00       1.81        1.24
adjustments
Non-GAAP net income    $0.00      $(0.10)    $(0.10)    $(0.44)     $(0.09)
(loss) per share
                                                               
Reconciliation of
shares used in
calculating non-GAAP                                            
income (loss) per
share:
Shares used in
calculating the basic  67,566    66,113    61,587    65,258     62,245
loss per share
Adjustment for         956       --       --        --         --
dilutive securities
Shares used in
calculating non-GAAP   68,522    66,113    61,587    65,258     62,245
diluted income (loss)
per share


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
                    March 31, December  March 31, March 31, March 31,
                               31,
                    2013      2012      2012      2013      2012
GROSS PROFIT:                                            
GAAP gross profit    $35,152  $28,740  $27,793  $112,594 $132,083
Amortization of
purchased            680      679      679      2,717    3,552
intangibles
Stock-based          95       158      140      692      432
compensation expense
Non-GAAP gross       $35,927  $29,577  $28,612  $116,003 $136,067
profit
                                                        
OPERATING EXPENSES:                                      
GAAP operating       $61,758  $101,942 $102,941 $260,106 $225,527
expenses
Stock-based          (2,596)  (6,064)  (6,499)  (23,544) (17,942)
compensation expense
Warrant expense      --       --       --       (1,289)  --
Amortization of
purchased            (337)    (338)    (650)    (1,926)  (3,202)
intangibles
Acquisition related  --       --       265      133      2,532
recoveries
Veloce acquisition   (22,250) (51,930) (60,400) (78,830) (60,400)
consideration
Restructuring        (217)    (6,218)  --       (6,435)  (875)
charges, net
Non-GAAP operating   $36,358  $37,392  $35,657  $148,215 $145,640
expenses
                                                        
INTEREST AND OTHER
INCOME, NET AND                                          
OTHER-THAN-TEMPORARY
IMPAIRMENT:
GAAP interest and    $(4,654) $2,258   $7,897   $201     $11,684
other (loss) income
Realized gain on
sale of strategic    --       --       (8,147)  --       (8,147)
investment
Impairment of        2,250    --       1,000    2,250    1,000
strategic investment
Sale of equipment    --       (1,299)  --       (1,299)  --
and other assets
Impairment of notes
receivable and other 1,800    --       --       1,800    --
assets
Other-than-temporary
investment           1,121    (270)    (77)     (412)    (743)
impairment
Non-GAAP interest
and other income,    $517     $689     $673     $2,540   $3,794
net
                                                        
INCOME TAX EXPENSE                                       
(BENEFIT):
GAAP income tax      $(1,012) $618     $331     $(554)   $928
expense
Income tax           1,015    (832)    (522)    (336)    (1,102)
adjustments
Non-GAAP income tax  $3       $(214)   $(191)   $(890)   $(174)
expense (benefit)
                                                        
RESEARCH AND                                             
DEVELOPMENT :
GAAP research and    $48,196  $82,711  $89,400  $200,061 $175,656
development
Stock-based          (1,026)  (2,814)  (3,735)  (11,760) (10,496)
compensation expense
Warrant expense      --       --       --       (1,289)  --
Veloce acquisition   (22,250) (51,930) (60,400) (78,830) (60,400)
consideration
Non-GAAP research    $24,920  $27,967  $25,265  $108,182 $104,760
and development
                                                        
SELLING, GENERAL AND                                     
ADMINISTRATIVE :
GAAP selling,
general and          $13,008  $12,675  $12,891  $51,684  $45,794
administrative
Stock-based          (1,570)  (3,250)  (2,764)  (11,784) (7,446)
compensation expense
Acquisition related  --       --       265      133      2,532
recoveries
Non-GAAP selling,
general and          $11,438  $9,425   $10,392  $40,033  $40,880
administrative


APPLIED MICRO CIRCUITS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                                                 
                                                     Year Ended March 31,
                                                     2013         2012
Operating activities:                                             
Net loss                                              $(146,757) $ (82,688)
Adjustments to reconcile net loss to net cash used in             
operating activities:
Depreciation                                         9,542       8,436
Amortization of purchased intangibles                4,643       6,754
Stock-based compensation expense:                                 
Stock options                                        3,469       5,298
Restricted stock units                               20,767      13,076
Warrants                                              1,289       --
Veloce accrued liability                              78,830      60,400
Acquisition related adjustment                        (133)       (2,532)
Net (gain) loss on disposals of property, equipment   (1,293)     10
and other assets
Impairment (gain) on strategic investments, net       2,250       (7,147)
Tax effect on other comprehensive income              (989)       (123)
Restructuring charges-asset impairment                4,719       --
Impairment of short term investments and marketable   1,143       --
securities
Impairment of notes receivable and other assets       1,800       --
Changes in operating assets and liabilities:                      
Accounts receivable                                  (1,909)     (2,669)
Inventories                                          10,344      3,317
Other assets                                         (2,871)     (3,903)
Accounts payable                                     (622)       (4,451)
Accrued payroll and other liabilities                (82)        (2,860)
Veloce accrued liability                              (16,537)    --
Deferred revenue                                     (668)       (270)
Net cash used in operating activities                (33,065)    (9,352)
Investing activities:                                             
Proceeds from sales and maturities of short-term      42,164      101,222
investments
Purchases of short-term investments                  (21,633)    (103,046)
Proceeds from sale of property, equipment and other   1,800       --
assets
Purchase of property, equipment and other assets      (9,045)     (13,264)
Proceeds from sale of strategic investment            7,146       --
Purchase of strategic investment                      (500)       (4,750)
Net cash provided by (used in) investing activities  19,932      (19,838)
Financing activities:                                             
Proceeds from issuances of common stock              8,873       6,736
Funding of restricted stock units withheld for taxes  (3,121)     (2,864)
Repurchases of common stock                           (653)       (20,852)
Funding of structured stock repurchase agreements    --         (10,000)
Payment of contingent consideration                   (485)       --
Other                                                (481)       (167)
Net cash provided by (used in) financing activities  4,133       (27,147)
Net decrease in cash and cash equivalents            (9,000)     (56,337)
Cash and cash equivalents at the beginning of year    28,065      84,402
Cash and cash equivalents at the end of year          $19,065    $28,065

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
         Diane Orr
         Phone: (408) 358-1617
         E-mail: dianer@orr-co.com

company logo
 
Press spacebar to pause and continue. Press esc to stop.