Applied Micro Circuits Corporation Reports Third Quarter Fiscal 2010 Financial Results
SUNNYVALE, Calif., Jan 28, 2010 (GlobeNewswire via COMTEX) -- By Staff
Companies: Applied Micro Circuits Corp. (AMCC), Applied Micro Circuits Corp. (AMCCD)
Applied Micro Circuits Corporation (Nasdaq:AMCC) today reported its financial results for the third quarter of fiscal 2010 ended December 31, 2009.
-- Q3 2010 net revenues from continuing operations were $53.7 million up 9%
sequentially and up 13% year over year.
-- Q3 2010 GAAP net loss from continuing operations was $2.7 million or
$(0.04) per share. Q3 2010 net loss from discontinued operations, net of
taxes, was $0.9 million or $(0.01) per share.
-- Q3 2010 non-GAAP net income (from continuing operations) was $2.6
million or $0.04 per share.
-- Total cash, cash equivalents and short-term investments were
approximately $202 million as of December 31, 2009.
Net revenues from continuing operations for the third quarter of fiscal 2010 were $53.7 million compared to $49.2 million in the second quarter of fiscal 2010, representing a sequential increase of 9% and an increase of 13% over the $47.7 million in net revenues reported in the third quarter of fiscal 2009. Revenues for the first nine months were $148.0 million compared to $173.2 million for the comparable period last year, a 15% decrease.
The net loss on a generally accepted accounting principles (GAAP) basis for the third quarter of fiscal 2010 was $3.6 million or $(0.05) per share. The third quarter GAAP net loss compares with a net loss of $6.7 million or $(0.10) per share for the second quarter of fiscal 2010 and a net loss of $274.5 million or $(4.20) per share for the third quarter of fiscal 2009. Year to date, GAAP net loss was $7.4 million or $(0.11) per share compared to $281.9 million or $(4.33) per share for the first nine months of fiscal 2009.
Non-GAAP income from continuing operations for the third quarter of fiscal 2010 was $2.6 million or $0.04 per share, compared to non-GAAP income from continuing operations of $1.3 million or $0.02 per share in the second quarter of fiscal 2010 and non-GAAP net income from continuing operations of $3.3 million or $0.05 per share for the third quarter of fiscal 2009. Year to date, non-GAAP net income from continuing operations was $4.8 million or $0.07 per share compared to $20.0 million or $0.31 per share for the first nine months of fiscal 2009.
"We executed as promised and are excited about the significant progress we are making to establish and improve our position as a leader in the markets that are key to our future strategy," said Paramesh Gopi, president and chief executive officer.
Bob Gargus, chief financial officer, commented, "The fundamentals of the business remain strong and we achieved our top and bottom line goals while continuing to improve our asset management. We will continue to work on reducing our operating expenses but are particularly pleased by improving gross margins."
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, impairment of strategic investment, non-cash tax adjustments and expenses related to stock option investigation and other litigation. 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, January 28, 2010, at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss additional details regarding the Company's performance for the third quarter of fiscal 2010 and to provide guidance for the fourth quarter of fiscal 2010. You may access the conference call via any of the following:
Teleconference: 866-831-6234
Conference ID: 55816426
Web Broadcast: http://www.appliedmicro.com
Replay: 888-286-8010 (access code: 93541367, available through February 4, 2010)
AppliedMicro Overview
AppliedMicro is a global leader in energy conscious computing solutions for telco, enterprise, data center, consumer and SMB applications. With a 30-year heritage as an innovator in high-speed connectivity and high performance embedded processing, AMCC, now AppliedMicro, employs patented Power Architecture SoCs to provide energy efficient products that can deliver up to a 40 percent reduction in power consumption without sacrificing performance. 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.appliedmicro.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, 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, 2009, 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)
December March
31, 31,
ASSETS 2009 2009
-------- --------
Current assets:
Cash, cash equivalents and
short-term investments $202,014 $184,009
Accounts receivable, net 17,785 17,537
Inventories 17,167 26,598
Other current assets 9,948 8,871
Assets of discontinued
operations -- 8,558
-------- --------
Total current assets 246,914 245,573
Property and equipment, net 25,786 25,749
Purchased intangibles, net 20,479 32,965
Other assets 20,005 20,323
-------- --------
Total assets $313,184 $324,610
======== ========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $18,344 $16,715
Other current liabilities 15,220 23,925
-------- --------
Total current liabilities 33,564 40,640
Stockholders' equity 279,620 283,970
-------- --------
Total liabilities and
stockholders' equity $313,184 $324,610
======== ========
APPLIED MICRO CIRCUITS CORPORATION
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
------------------------------- --------------------
December September December December December
31, 2009 30, 2009 31, 2008 31, 2009 31, 2008
-------- --------- ---------- -------- ----------
Net revenues $53,704 $49,232 $47,726 $147,988 $173,215
Cost of revenues 24,173 23,796 22,226 70,144 79,228
-------- --------- ---------- -------- ----------
Gross profit 29,531 25,436 25,500 77,844 93,987
Operating expenses:
Research and development 23,599 20,828 18,625 63,841 60,485
Selling, general and administrative 11,454 11,991 11,315 33,964 38,946
Amortization of purchased intangibles 1,005 1,005 1,005 3,015 3,015
Goodwill impairment charges -- -- 222,972 -- 222,972
Restructuring charges (reversals), net -- (125) 1,024 (279) 906
Litigation settlement -- -- -- -- 130
Option investigation related expenses,
net -- -- (79) -- 84
-------- --------- ---------- -------- ----------
Total operating expenses 36,058 33,699 254,862 100,541 326,538
-------- --------- ---------- -------- ----------
Operating loss (6,527) (8,263) (229,362) (22,697) (232,551)
Interest and other (expense) income and
other-than-temporary impairment, net 1,619 (3,425) (7,397) (217) (9,274)
-------- --------- ---------- -------- ----------
Loss from continuing operations
before income taxes (4,908) (11,688) (236,759) (22,914) (241,825)
Income tax benefit (2,248) (3,617) (4,396) (9,384) (3,491)
-------- --------- ---------- -------- ----------
Loss from continuing operations (2,660) (8,071) (232,363) (13,530) (238,334)
Income (loss) from discontinued
operations net of income taxes (1) (934) 1,347 (42,097) 6,110 (43,613)
-------- --------- ---------- -------- ----------
Net loss $(3,594) $(6,724) $(274,460) $(7,420) $(281,947)
======== ========= ========== ======== ==========
Basic income (loss) per share:
Loss per share from continuing
operations $(0.04) $(0.12) $(3.55) $(0.20) $(3.66)
Income (loss) per share from
discontinued operations (0.01) 0.02 (0.65) 0.09 (0.67)
-------- --------- ---------- -------- ----------
Net loss per share $(0.05) $(0.10) $(4.20) $(0.11) $(4.33)
======== ========= ========== ======== ==========
Shares used in calculating basic
income (loss) per share 66,139 66,469 65,366 66,226 65,127
======== ========= ========== ======== ==========
Diluted income (loss) per share:
Loss per share from continuing
operations $(0.04) $(0.12) $(3.55) $(0.20) $(3.66)
Income (loss) per share from
discontinued operations (0.01) 0.02 (0.65) 0.09 (0.67)
-------- --------- ---------- -------- ----------
Net loss per share $(0.05) $(0.10) $(4.20) $(0.11) $(4.33)
======== ========= ========== ======== ==========
Shares used in calculating diluted
income (loss) per share 66,139 66,469 65,366 66,226 65,127
======== ========= ========== ======== ==========
---------------------------------------------------------------------------------
(1) The following table provides information on the components of the loss from
discontinued operations for the periods presented:
Components of discontinued
operations
Three Months Ended Nine Months Ended
------------------------------ -------------------
December September December December December
31, 2009 30, 2009 31, 2008 31, 2009 31, 2008
-------- --------- --------- -------- ---------
Net revenues $1,009 $703 $9,839 $2,228 $35,341
Cost of revenues 1,003 51 5,537 1,787 20,366
-------- --------- --------- -------- ---------
Gross profit 6 652 4,302 441 14,975
Operating expenses:
Research and development 10 83 2,630 687 8,712
Selling, general and
administrative 24 238 2,103 807 7,419
Amortization of purchased
intangibles -- -- 315 -- 945
Goodwill impairment charges -- -- 41,158 -- 41,158
Restructuring charges, net -- -- 126 -- 126
-------- --------- --------- -------- ---------
Total operating expenses 34 321 46,332 1,494 58,360
-------- --------- --------- -------- ---------
Operating income (loss) (28) 331 (42,030) (1,053) (43,385)
Gain on sale of Storage Business -- 712 -- 11,366 --
Income (loss) from discontinued -------- --------- --------- -------- ---------
operations before income taxes (28) 1,043 (42,030) 10,313 (43,385)
Income tax expense (benefit) 906 (304) 67 4,203 228
-------- --------- --------- -------- ---------
Net income (loss) from discontinued
operations, net of income taxes $(934) $1,347 $(42,097) $6,110 $(43,613)
======== ========= ========= ======== =========
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 Nine Months Ended
------------------------------- ---------------------
December September December December December
31, 2009 30, 2009 31, 2008 31, 2009 31, 2008
-------- --------- ---------- --------- ----------
GAAP net loss from continuing operations $(2,660) $(8,071) $(232,363) $(13,530) $(238,334)
Adjustments:
Stock-based compensation charges 3,737 3,767 1,547 10,119 7,109
Amortization of purchased intangibles 3,630 4,269 4,588 12,487 14,312
Goodwill impairment charges -- -- 222,972 -- 222,972
Restructuring charges (reversals), net -- (125) 1,024 (279) 906
Impairment of strategic investment -- 2,000 -- 2,000 --
Other-than-temporary investment impairment 261 3,133 10,104 3,569 16,941
Litigation settlement -- -- -- -- 130
Option investigation related expenses, net -- -- (79) -- 84
Income tax adjustments (2,330) (3,658) (4,498) (9,534) (4,110)
-------- --------- ---------- --------- ----------
Total GAAP to Non-GAAP adjustments 5,298 9,386 235,658 18,362 258,344
-------- --------- ---------- --------- ----------
Non-GAAP income from continuing operations $2,638 $1,315 $3,295 $4,832 $20,010
======== ========= ========== ========= ==========
Diluted income per share from continuing
operations $0.04 $0.02 $0.05 $0.07 $0.31
======== ========= ========== ========= ==========
Shares used in calculating diluted income
per share 68,095 68,409 65,531 67,746 65,335
======== ========= ========== ========= ==========
Income (loss) per share from continuing operations:
GAAP loss per share $(0.04) $(0.12) $(3.55) $(0.20) $(3.66)
GAAP to non-GAAP adjustments 0.08 0.14 3.60 0.27 3.97
-------- --------- ---------- --------- ----------
Non-GAAP income per share from continuing
operations $0.04 $0.02 $0.05 $0.07 $0.31
======== ========= ========== ========= ==========
Reconciliation of shares used in calculating non-GAAP income per
share:
Shares used in calculating the basic loss
per share 66,139 66,469 65,366 66,226 65,127
Adjustment for dilutive securities 1,956 1,940 165 1,520 208
-------- --------- ---------- --------- ----------
Non-GAAP shares used in the EPS
calculation 68,095 68,409 65,531 67,746 65,335
======== ========= ========== ========= ==========
Discontinued operations
Three Months Ended Nine Months Ended
------------------------------ -------------------
December September December December December
31, 2009 30, 2009 31, 2008 31, 2009 31, 2008
-------- --------- --------- -------- ---------
GAAP income (loss) from discontinued
operations $(934) $1,347 $(42,097) $6,110 $(43,613)
Adjustments:
Stock-based compensation charges -- -- 358 -- 1,001
Amortization of purchased
intangibles -- -- 1,040 -- 3,120
Goodwill impairment charges -- -- 41,158 -- 41,158
Restructuring charges, net -- -- 126 -- 126
Gain on sale of Storage Business -- (712) -- (11,366) --
Income tax adjustments 907 (314) 48 4,235 168
-------- --------- --------- -------- ---------
Total GAAP to non-GAAP adjustments 907 (1,026) 42,730 (7,131) 45,573
-------- --------- --------- -------- ---------
Non-GAAP income (loss) from
discontinued operations $(27) $321 $633 $(1,021) $1,960
======== ========= ========= ======== =========
Income (loss) per share from discontinued
operations:
GAAP income (loss) per share $(0.01) $0.02 $(0.65) $0.09 $(0.67)
GAAP to non-GAAP adjustments 0.01 (0.02) 0.66 (0.11) 0.70
-------- --------- --------- -------- ---------
Non-GAAP income (loss) per share
from discontinued operations $-- $-- $0.01 $(0.02) $0.03
======== ========= ========= ======== =========
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 Nine Months Ended
------------------------------ -------------------
December September December December December
31, 2009 30, 2009 31, 2008 31, 2009 31, 2008
-------- --------- --------- -------- ---------
GROSS PROFIT:
GAAP gross profit $29,531 $25,436 $25,500 $77,844 $93,987
Gross profit from discontinued
operations 6 652 4,302 441 14,975
Amortization of purchased intangibles 2,625 3,264 4,308 9,472 13,472
Stock-based compensation expense 164 143 91 418 487
-------- --------- --------- -------- ---------
Non-GAAP gross profit $32,326 $29,495 $34,201 $88,175 $122,921
======== ========= ========= ======== =========
OPERATING EXPENSES:
GAAP operating expenses $36,058 $33,699 $254,862 $100,541 $326,538
Operating expenses from discontinued
operations 34 321 46,332 1,494 58,360
Stock-based compensation expense (3,573) (3,624) (1,814) (9,701) (7,623)
Amortization of purchased intangibles (1,005) (1,005) (1,320) (3,015) (3,960)
Goodwill impairment charges -- -- (264,130) -- (264,130)
Restructuring charges (reversals), net -- 125 (1,150) 279 (1,032)
Litigation settlement -- -- -- -- (130)
Option investigation related expenses,
net -- -- 79 -- (84)
-------- --------- --------- -------- ---------
Non-GAAP operating expenses $31,514 $29,516 $32,859 $89,598 $107,939
======== ========= ========= ======== =========
INTEREST AND OTHER INCOME, NET
GAAP interest and other
(expense) income, net $1,619 $(3,425) $(7,397) $(217) $(9,274)
Impairment of strategic investment -- 2,000 -- 2,000 --
Other-than-temporary investment
impairment 261 3,133 10,104 3,569 16,941
-------- --------- --------- -------- ---------
Non-GAAP interest and other income, net $1,880 $1,708 $2,707 $5,352 $7,667
======== ========= ========= ======== =========
INCOME TAX EXPENSE (BENEFIT):
GAAP income tax benefit $(2,248) (3,617) $(4,396) $(9,384) $(3,491)
Income tax expense (benefit) from
discontinued operations 906 (304) 67 4,203 228
Income tax adjustments 1,423 3,972 4,450 5,299 3,942
-------- --------- --------- -------- ---------
Non-GAAP income tax expense $81 51 121 $118 $679
======== ========= ========= ======== =========
RESEARCH AND DEVELOPMENT
GAAP research and development $23,599 20,828 18,625 $63,841 $60,485
Research and development from
discontinued operations 10 83 2,630 687 8,712
Stock-based compensation expense (1,692) (1,594) (1,244) (4,558) (3,679)
-------- --------- --------- -------- ---------
Non-GAAP research and development $21,917 19,317 20,011 $59,970 $65,518
======== ========= ========= ======== =========
SELLING, GENERAL AND ADMINISTRATIVE
GAAP selling, general and administrative $11,454 11,991 11,315 $33,964 $38,946
Selling, general and administrative
from discontinued operations 24 238 2,103 807 7,419
Stock-based compensation expense (1,881) (2,030) (570) (5,143) (3,944)
-------- --------- --------- -------- ---------
Non-GAAP selling, general and
administrative $9,597 10,199 12,848 $29,628 $42,421
======== ========= ========= ======== =========
APPLIED MICRO CIRCUITS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended
December 31,
2009 2008
--------- ----------
Operating activities:
Net loss $(7,420) $(281,947)
Adjustments to reconcile net loss to
net cash provided by (used for)
operating activities:
Depreciation 4,881 5,148
Amortization of purchased
intangibles 12,486 17,432
Stock-based compensation expense:
Stock options 3,224 4,135
Restricted stock units 6,895 3,975
Other-than-temporary impairment of
marketable securities 4,047 16,941
Impairment of strategic investment 2,000 --
Goodwill impairment charges -- 264,130
Non-cash restructuring charges -- 57
Tax benefit from other comprehensive
income (5,077)
Net loss on disposals of property 66 15
Net gain on sale of storage business
unit (11,366) --
Changes in operating assets and
liabilities:
Accounts receivable (248) 7,891
Inventories 8,974 (803)
Other assets (1,797) (9,210)
Accounts payable 515 (7,549)
Accrued payroll and other accrued
liabilities (7,513) (2,705)
Deferred tax liability -- (3,958)
Deferred revenue (1,216) 109
--------- ----------
Net cash provided by (used for)
operating activities 8,451 13,661
--------- ----------
Investing activities:
Proceeds from sales and maturities of
short-term investments 176,182 897,153
Purchases of short-term investments (159,357) (855,263)
Purchase of property, equipment and
other assets (4,976) (6,812)
Purchases of strategic investment (1,000) --
Proceeds from sale of storage business
unit 21,527 --
--------- ----------
Net cash provided by (used for)
investing activities 32,376 35,078
--------- ----------
Financing activities:
Proceeds from issuance of common stock 1,972 1,570
Repurchase on Company stock (8,076) --
Funding of structured stock repurchase
agreements (31,797) --
Funds received from structured stock
repurchase agreements 22,484 --
Other (776) (331)
--------- ----------
Net cash provided by (used for)
financing activities (16,193) 1,239
--------- ----------
Net increase in cash and cash
equivalents 24,634 49,978
Cash and cash equivalents at the
beginning of the period 99,337 42,689
--------- ----------
Cash and cash equivalents at the end of
the period 123,971 92,667
========= ==========
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Applied Micro Circuits Corporation
CONTACT: Applied Micro Circuits Corporation Investor Relations Contact: Bob Gargus (408) 542-8752 bgargus@amcc.com Media Contact: Tally Kaplan-Porat (408) 702-3139 tporat@amcc.com
Copyright (C) 2010 GlobeNewswire. All rights reserved
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Companies: Applied Micro Circuits Corp. (AMCC), Applied Micro Circuits Corp. (AMCCD)
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