SUNNYVALE, Calif., Jan. 10, 2007 (PRIME NEWSWIRE) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) today filed its Annual Report on Form 10-K for the fiscal year ended March 31, 2006 and its Quarterly Reports on Form 10-Q for the quarters ended June 30, 2006 and September 30, 2006 with the Securities and Exchange Commission ("SEC"). These filings had been delayed pending the conclusion of an internal investigation by the Audit Committee of the Board of Directors into past stock option practices and the resulting decision to restate the Company's financial results for certain prior periods. AMCC undertook this investigation on its own initiative and has informed the SEC and the U.S. Attorney's Office of the results.
The scope of the Audit Committee's investigation was extensive, and included the review of stock option grants during the period commencing with the Company's initial public offering on November 25, 1997 through March 2006. The Audit Committee, through its outside consultants, reviewed and tested every option grant to every individual since the date of the Company's initial public offering. During the course of the investigation, the Audit Committee did not observe any other accounting issues of concern.
The net restatement adjustment was $74.3 million comprised of $95.2 million of additional stock-based compensation offset by $20.9 million of tax benefits. The restatement involved options granted in fiscal years 1999 through 2002 that impacted the Company's financial statements for the fiscal years 1999 through the first quarter of fiscal 2004. By June 30, 2004, all options for which the Company determined it would recognize additional stock-based compensation expense either had fully vested or had been surrendered and canceled.
The restatement did not impact AMCC's results of operations for the fiscal years 2005 or 2006, or any later periods, and the restatement had no impact on previously reported revenues or cash flows. None of the management team involved in the granting of options giving rise to the restatement is currently employed with or providing services to the Company.
Full details of the investigation and resulting restatement are provided in the Annual Report on Form 10-K for the fiscal year ended March 31, 2006 that was filed earlier today.
"We are pleased to have the restatement process behind us and are eager to focus our full attention on growing our business and creating value for our stockholders. We want to extend thanks to the many AMCC employees who worked diligently to bring this process to a close," said Kambiz Hooshmand, AMCC's president and chief executive officer.
Nasdaq Global Select Market Listing Status
The Company is now current in its SEC reporting obligations under Sections 13 and 15(d) of the Securities Exchange Act of 1934, as amended, and, as a result, it expects that Nasdaq will acknowledge AMCC's compliance with all continued listing requirements in the near term, bringing a successful conclusion to Nasdaq's hearing process.
Third Quarter Results
AMCC will issue a news release announcing its third quarter fiscal 2007 results after the close of the market on Tuesday, January 30, 2007. The text of the press release will also be available on AMCC's website at http://www.amcc.com.
AMCC will also conduct a conference call with analysts and investors following the release of its third quarter results. The conference call will be webcast from the investor relations section of the Company's web site beginning at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on January 30, 2007. To listen to the webcast, or to view the press release or the financial or other statistical information required by SEC Regulation G, please visit the investor relations section of the AMCC website at http://www.amcc.com. The webcast will be recorded and available through the close of business on February 6, 2007.
To listen to the conference call by telephone, dial 913-981-5584 approximately ten minutes before the start time. A telephone playback of the call will be available starting approximately one hour after the completion of the call through February 6, 2007 and can be accessed by dialing 719-457-0820 and using the access code 9540488.
AMCC Overview
AMCC is a global leader in network and embedded PowerPC processing, optical transport and storage solutions. Our products enable the development of converged IP-based networks offering high-speed secure data, high-definition video and high-quality voice for carrier, metropolitan, access and enterprise applications. AMCC provides networking equipment vendors with industry-leading network and communications processing, Ethernet, SONET and switch fabric solutions. AMCC is also the leading vendor of high-port count SATA RAID controllers enabling low-cost, high-performance, high-capacity storage. AMCC's corporate headquarters are located in Sunnyvale, California. Sales and engineering offices are located throughout the world. For further information regarding AMCC, please visit our web site at http://www.amcc.com.
Forward-Looking Statements
This press release contains forward-looking statements that reflect the Company's current view with respect to future events and performance, including forward-looking statements regarding the Company's plans to announce its fiscal 2007 third quarter results, our beliefs regarding the benefit of non-GAAP financial measures and our expectations regarding the termination of the Nasdaq delisting proceedings. 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, the risk that the Company may be unable to announce its results as currently anticipated and other factors that could affect the Company's business and financial results as explained under "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended March 31, 2006, 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 date any such statement is made.
AMCC is a registered trademark of Applied Micro Circuits Corporation. The PowerPC name and logo are registered trademarks of IBM Corporation and used under license therefrom. All other trademarks are the property of their respective owners.