SUNNYVALE, Calif., July 29, 2010 (GLOBE NEWSWIRE) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) today reported its financial results for the first quarter of fiscal 2011, ended June 30, 2010.
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Book to bill, exiting the quarter, was 1.3x.
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Q1 net revenues were $60.8 million, up 6% sequentially and up 35% year over year.
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Q1 2011 GAAP net income was $1.4 million or $0.02 per share.
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Q1 2011 non-GAAP EPS was $0.12 per share on net income of $8.3 million, compared to $0.09 per share on net income of $6.1 million, from continuing operations, for the fourth quarter of fiscal 2010.
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Total cash was approximately $222.5 million as of June 30, 2010.
- During the quarter, AppliedMicro announced the following products:
- the APM 821xx processor, a single-core system-on-a-chip (SoC) device offering high performance, high integration and energy efficiency for multi-function storage applications and media servers for the connected digital home.
- APM801xx, a family of energy-efficient embedded processors for the smart energy and smart home marketplace, providing the industry's smallest form factor for a Power Architecture-based product.
- Triveni APM9689x product family, the industry's smallest dual and quad port, low power 100/1000/10G BASE-T PHY.
Net revenues from continuing operations for the first quarter of fiscal 2011 were $60.8 million compared to $57.6 million in the fourth quarter of fiscal 2010, representing a sequential increase of 6% and an increase of 35% over the $45.1 million in net revenues reported in the first quarter of fiscal 2010. Net income on a generally accepted accounting principles (GAAP) basis for the first quarter of fiscal 2011 was $1.4 million or $0.02 per share. The first quarter GAAP net income compares with a net loss of $(0.1) million or $(0.00) per share for the fourth quarter of fiscal 2010 and net income of $2.9 million or $0.04 per share for the first quarter of fiscal 2010.
Non-GAAP income from continuing operations for the first quarter of fiscal 2011 was $8.3 million or $0.12 per share, compared to non-GAAP income from continuing operations of $6.1 million or $0.09 per share in the fourth quarter of fiscal 2010 and non-GAAP net income from continuing operations of $0.9 million or $0.01 per share for the first quarter of fiscal 2010.
"The demand for our products continues to be very strong and we exited the quarter with a solid book-to-bill which demonstrates the wide acceptance for our products and the continued traction we are enjoying from the introduction of our new product lines. For the quarter, we once again delivered solid results and this is the sixth straight quarter we have met or exceeded the Street's expectations," said Dr. Paramesh Gopi, President and Chief Executive Officer.
Bob Gargus, Chief Financial Officer, commented, "We had a very strong quarter. In spite of industry-wide supply chain constraints, we were able to proactively manage our business and delivered results that exceeded expectations. Through solid execution, we continue to leverage the business towards sustained double digit profitability."
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 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 29, 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 first quarter of fiscal 2011 and to provide guidance for the second quarter of fiscal 2011. You may access the conference call via any of the following:
| Teleconference: | 800-591-6945 |
| Conference ID: | 86020539 |
| Web Broadcast: | http://www.apm.com |
| Replay: | 888-286-8010 (access code: 65996548, available through August 5, 2010) |
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, strategic re-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, 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, 2010, 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) | ||
| ASSETS |
June 30, 2010 |
March 31, 2010 |
| Current assets: | ||
| Cash, cash equivalents and short-term investments | $222,521 | $ 206,643 |
| Accounts receivable, net | 20,206 | 22,892 |
| Inventories | 17,397 | 15,387 |
| Other current assets | 13,599 | 18,098 |
| Total current assets | 273,723 | 263,020 |
| Property and equipment, net | 26,685 | 25,879 |
| Purchased intangibles, net | 13,220 | 16,850 |
| Other assets | 9,579 | 10,295 |
| Total assets | $323,207 | $316,044 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $18,891 | $20,074 |
| Other current liabilities | 17,044 | 15,096 |
| Total current liabilities | 35,935 | 35,170 |
| Stockholders' equity | 287,272 | 280,874 |
| Total liabilities and stockholders' equity | $323,207 | $316,044 |
| APPLIED MICRO CIRCUITS CORPORATION | |||
| GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||
| (in thousands, except per share data) | |||
| (unaudited) | |||
| Three Months Ended | |||
|
June 30, 2010 |
March 31, 2010 |
June 30, 2009 |
|
| Net revenues | $60,810 | $57,610 | $45,052 |
| Cost of revenues | 22,485 | 22,787 | 22,175 |
| Gross profit | 38,325 | 34,823 | 22,877 |
| Operating expenses: | |||
| Research and development | 25,777 | 24,255 | 19,414 |
| Selling, general and administrative | 11,624 | 11,937 | 10,519 |
| Amortization of purchased intangibles | 1,005 | 1,005 | 1,005 |
| Restructuring charges (reversals), net | 369 | 1,025 | (154) |
| Total operating expenses | 38,775 | 38,222 | 30,784 |
| Operating loss | (450) | (3,399) | (7,907) |
| Interest and other income and other-than-temporary impairment, net | 2,081 | 2,106 | 1,589 |
| Income (loss) from continuing operations before income taxes | 1,631 | (1,293) | (6,318) |
| Income tax expense (benefit) | 240 | (1,226) | (3,519) |
| Income (loss) from continuing operations | 1,391 | (67) | (2,799) |
| Income from discontinued operations net of income taxes | -- | 2 | 5,697 |
| Net income (loss) | $1,391 | $ (65) | $2,898 |
| Basic income (loss) per share: | |||
| Income (loss) per share from continuing operations | $0.02 | $0.00 | $ (0.04) |
| Income per share from discontinued operations | 0.00 | 0.00 | 0.08 |
| Net income per share | $0.02 | $0.00 | $0.04 |
| Shares used in calculating basic income (loss) per share | 66,005 | 65,345 | 66,070 |
| Diluted income (loss) per share: | |||
| Income (loss) per share from continuing operations | $0.02 | $0.00 | $ (0.04) |
| Income per share from discontinued operations | 0.00 | 0.00 | 0.08 |
| Net income per share | $0.02 | $0.00 | $0.04 |
| Shares used in calculating diluted income (loss) per share | 68,735 | 65,345 | 66,733 |
| 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 | |||
|
June 30, 2010 |
March 31, 2010 |
June 30, 2009 |
|
| GAAP net income (loss) from continuing operations | $1,391 | $ (67) | $ (2,799) |
| Adjustments: | |||
| Stock-based compensation charges | 3,846 | 3,563 | 2,615 |
| Amortization of purchased intangibles | 3,630 | 3,630 | 4,588 |
| Restructuring charges (reversals), net | 369 | 1,025 | (154) |
| Other-than-temporary investment impairment | (908) | (642) | 175 |
| Income tax adjustments | (17) | (1,414) | (3,546) |
| Total GAAP to Non-GAAP adjustments | 6,920 | 6,162 | 3,678 |
| Non-GAAP income from continuing operations | $8,311 | $6,095 | $879 |
| Diluted income per share from continuing operations | $0.12 | $0.09 | $0.01 |
| Shares used in calculating diluted income per share | 68,735 | 67,573 | 66,733 |
| Income (loss) per share from continuing operations: | |||
| GAAP income (loss) per share | $0.02 | $0.00 | $ (0.04) |
| GAAP to non-GAAP adjustments | 0.10 | 0.09 | 0.05 |
| Non-GAAP income per share from continuing operations | $0.12 | $0.09 | $0.01 |
| Reconciliation of shares used in calculating non-GAAP income per share: | |||
| Shares used in calculating the basic income (loss) per share | 66,005 | 65,345 | 66,070 |
| Adjustment for dilutive securities | 2,730 | 2,228 | 663 |
| Non-GAAP shares used in the EPS calculation | 68,735 | 67,573 | 66,733 |
| APPLIED MICRO CIRCUITS CORPORATION | |||
| SCHEDULE OF SELECTED GAAP TO NON-GAAP ADJUSTMENTS | |||
| (in thousands) | |||
| (unaudited) | |||
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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, 2010 |
March 31, 2010 |
June 30, 2009 |
|
| GROSS PROFIT: | |||
| GAAP gross profit | $38,325 | $34,823 | $22,877 |
| Gross loss from discontinued operations | -- | (19) | (217) |
| Amortization of purchased intangibles | 2,625 | 2,625 | 3,583 |
| Stock-based compensation expense | 153 | 169 | 111 |
| Non-GAAP gross profit | $41,103 | $37,598 | $26,354 |
| OPERATING EXPENSES: | |||
| GAAP operating expenses | $38,775 | $38,222 | $30,784 |
| Operating expenses from discontinued operations | -- | -- | 1,139 |
| Stock-based compensation expense | (3,693) | (3,394) | (2,504) |
| Amortization of purchased intangibles | (1,005) | (1,005) | (1,005) |
| Restructuring (charges) reversals, net | (369) | (1,025) | 154 |
| Non-GAAP operating expenses | $33,708 | $32,798 | $28,568 |
|
INTEREST AND OTHER INCOME AND OTHER-THAN-TEMPORARY IMPAIRMENT, NET: |
|||
| GAAP interest and other income and other-than-temporary impairment, net | $2,081 | $2,106 | $1,589 |
| Other-than-temporary investment impairment | (908) | (642) | 175 |
| Non-GAAP interest and other income, net | $1,173 | $1,464 | $1,764 |
| INCOME TAX EXPENSE (BENEFIT): | |||
| GAAP income tax expense (benefit) | $240 | $(1,226) | $(3,519) |
| Income tax expense (benefit) from discontinued operations | -- | (21) | 3,601 |
| Income tax adjustments | 17 | 1,435 | (96) |
| Non-GAAP income tax expense (benefit) | $257 | $188 | $(14) |
| RESEARCH AND DEVELOPMENT : | |||
| GAAP research and development | $25,777 | $24,255 | $19,414 |
| Research and development from discontinued operations | -- | -- | 594 |
| Stock-based compensation expense | (1,971) | (1,710) | (1,272) |
| Non-GAAP research and development | $23,806 | $22,545 | $18,736 |
| SELLING, GENERAL AND ADMINISTRATIVE : | |||
| GAAP selling, general and administrative | $11,624 | $11,937 | $10,519 |
| Selling, general and administrative from discontinued operations | -- | -- | 545 |
| Stock-based compensation expense | (1,722) | (1,684) | (1,232) |
| Non-GAAP selling, general and administrative | $9,902 | $10,253 | $9,832 |
| APPLIED MICRO CIRCUITS CORPORATION | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (in thousands) | ||
| (unaudited) | ||
| Three Months Ended June 30, | ||
| 2010 | 2009 | |
| Operating activities: | ||
| Net income | $ 1,391 | $ 2,898 |
| Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | ||
| Depreciation | 1,885 | 1,558 |
| Amortization of purchased intangibles | 3,630 | 4,588 |
| Stock-based compensation expense: | ||
| Stock options | 987 | 1,037 |
| Restricted stock units | 2,859 | 1,578 |
| Other-than-temporary impairment of marketable securities | — | 175 |
| Capitalization of mask set costs | (1,177) | — |
| Net gain on disposals of property | 29 | 24 |
| Net gain on sale of storage business unit | — | (10,654) |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 2,686 | 2,334 |
| Inventories | (2,010) | 3,917 |
| Other assets | 225 | 184 |
| Accounts payable | (1,183) | (1,305) |
| Accrued payroll and other accrued liabilities | 1,718 | (5,715) |
| Deferred revenue | 230 | (1,271) |
| Net cash provided by (used for) operating activities | 11,270 | (652) |
| Investing activities: | ||
| Proceeds from sales and maturities of short-term investments | 5,121 | 23,524 |
| Purchases of short-term investments | (76,014) | (21,003) |
| Purchase of property, equipment and other assets | (1,543) | (2,014) |
| Proceeds from sale of strategic investment | 4,991 | — |
| Proceeds from sale of storage business unit | — | 20,815 |
| Net cash provided by (used for) investing activities | (67,445) | 21,322 |
| Financing activities: | ||
| Proceeds from issuance of common stock | 1,531 | 352 |
| Funding of restricted stock units withheld for taxes | (2,132) | (494) |
| Funding of structured stock repurchase agreements | (10,000) | (11,797) |
| Funds received from structured stock repurchase agreements | 10,273 | 3,962 |
| Other | (11) | (87) |
| Net cash used for financing activities | (339) | (8,064) |
| Net increase (decrease) in cash and cash equivalents | (56,514) | 12,606 |
| Cash and cash equivalents at the beginning of the period | 122,526 | 99,337 |
| Cash and cash equivalents at the end of the period | 66,012 | 111,943 |