SANTA CLARA, Calif., July 27, 2016 (GLOBE NEWSWIRE) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) (“AppliedMicro”) today reported its financial results for its first quarter of fiscal 2017, ended June 30, 2016.
Q1 Fiscal 2017 Financial Information
- Consolidated net revenue of $41.5 million, representing the sixth sequential quarter of revenue growth
- GAAP net loss of $10.5 million or $0.12 per share
- Non-GAAP net loss of $2.5 million, or $0.03 per share
Commenting on Applied Micro’s fiscal 2017 first quarter results, Dr. Paramesh Gopi, President and Chief Executive Officer, said, “We are beginning fiscal 2017 with our sixth consecutive quarter of revenue growth. Our Connectivity business drove the improvement in top line results and our on-going cost reduction efforts resulted in improved gross margins.”
"We are pleased with the progress we've made in both our base Connectivity business as well as our Computing business. Our PAM4 single lambda 100/400G FinFET technology continues to lead the market, while our X-Gene® product line gained meaningful traction and was deployed at top hyperscale data center customers.” concluded Dr. Gopi.
AppliedMicro provides non-GAAP results as additional information relating to its financial condition and business trends. This information should be considered in conjunction with corresponding GAAP measures. A reconciliation between GAAP and non-GAAP financial results is provided in the financial tables section of this press release.
Conference Call and Webcast
Management will host a conference call and simultaneous webcast to discuss first quarter fiscal 2017 results and business and financial outlook today, July 27, 2016, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time.
| DIAL-IN: | (855) 777-0852 | |
| PASSCODE: | 46834760 | |
| WEBCAST: | Investor Relations section of the Company’s website at www.apm.com | |
A replay of the call will be available starting at 8:00 PM Eastern Time and can be accessed by dialing 855-859-2056 or 404-537-3406 and using the access code 46834760. The replay will be available for seven days.
About AppliedMicro
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 Santa Clara, California. www.apm.com.
(C) Copyright 2016, Applied Micro Circuits Corporation. AppliedMicro, X-Gene, X-Weave, HeliX, Server on a Chip, Cloud Processor and Cloud Server are trademarks or registered trademarks of Applied Micro Circuits Corporation. All other product or service names are the property of their respective owners.
Forward-Looking Statements
This press release contains forward-looking statements that reflect the Company's current views and expectations with respect to future events and financial performance, including statements regarding the Company's strategic focus; new product development, commercialization and customer acceptance; the development of the X-Gene and ARM ecosystems; the anticipated performance of the Company’s base business; and future revenues, expenses and liquidity. 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, successful and timely development of products, an evolving competitive landscape, rapid technological change, increased supplier lead times and other supply chain constraints, the businesses and budgeting decisions of the Company's major customers, which may cause delays, reductions, rescheduling or cancellation of customer orders, successful management and retention of key personnel and service providers, market acceptance of new products and technologies, legal and regulatory developments, and general economic conditions, and do not take into account any restructuring or related activities that the Company may undertake. 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, 2016, and its 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) | ||||||||||
| June 30, | March 31, | |||||||||
| 2016 | 2016 | |||||||||
| (unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash, cash equivalents and short-term investments | $ | 82,311 | $ | 83,845 | ||||||
| Accounts receivable, net | 9,163 | 9,265 | ||||||||
| Inventories | 12,604 | 16,148 | ||||||||
| Other current assets | 10,906 | 10,775 | ||||||||
| Total current assets | 114,984 | 120,033 | ||||||||
| Property and equipment, net | 13,905 | 13,293 | ||||||||
| Goodwill | 11,425 | 11,425 | ||||||||
| Other assets | 1,323 | 1,541 | ||||||||
| Total assets | $ | 141,637 | $ | 146,292 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 6,184 | $ | 8,599 | ||||||
| Other current liabilities | 22,974 | 20,862 | ||||||||
| Total current liabilities | 29,158 | 29,461 | ||||||||
| Non-current liabilities | 1,548 | 1,793 | ||||||||
| Total liabilities | 30,706 | 31,254 | ||||||||
| Stockholders' equity | 110,931 | 115,038 | ||||||||
| Total liabilities and stockholders' equity | $ | 141,637 | $ | 146,292 | ||||||
| APPLIED MICRO CIRCUITS CORPORATION | ||||||||||||||
| GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
| (in thousands, except per share data) | ||||||||||||||
| (unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||
| 2016 | 2016 | 2015 | ||||||||||||
| Net revenues | $ | 41,498 | $ | 41,108 | $ | 37,813 | ||||||||
| Cost of revenues | 16,029 | 16,934 | 16,806 | |||||||||||
| Gross profit | 25,469 | 24,174 | 21,007 | |||||||||||
| Operating expenses: | ||||||||||||||
| Research and development | 27,485 | 25,113 | 21,617 | |||||||||||
| Selling, general and administrative | 8,699 | 8,138 | 8,764 | |||||||||||
| Restructuring | - | (57 | ) | 96 | ||||||||||
| Total operating expenses | 36,184 | 33,194 | 30,477 | |||||||||||
| Operating loss | (10,715 | ) | (9,020 | ) | (9,470 | ) | ||||||||
| Interest and other income, net | 247 | 229 | 1,644 | |||||||||||
| Loss before income taxes | (10,468 | ) | (8,791 | ) | (7,826 | ) | ||||||||
| Income tax provision (benefit) | 71 | 116 | (422 | ) | ||||||||||
| Net loss | $ | (10,539 | ) | $ | (8,907 | ) | $ | (7,404 | ) | |||||
| Basic and diluted net loss per share: | $ | (0.12 | ) | $ | (0.11 | ) | $ | (0.09 | ) | |||||
| Shares used in calculating basic and diluted net loss per share | 84,980 | 84,127 | 81,179 | |||||||||||
| APPLIED MICRO CIRCUITS CORPORATION | ||||||||||||||
| RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS | ||||||||||||||
| (in thousands, except per share data) | ||||||||||||||
| (unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||
| 2016 | 2016 | 2015 | ||||||||||||
| GAAP net loss | $ | (10,539 | ) | $ | (8,907 | ) | $ | (7,404 | ) | |||||
| Adjustments: | ||||||||||||||
| Stock-based compensation expense | 8,165 | 7,637 | 6,092 | |||||||||||
| Restructuring | - | (57 | ) | 96 | ||||||||||
| Reversals of impairment charges upon sales of marketable securities | - | - | (1,427 | ) | ||||||||||
| Income tax effect on non-GAAP adjustments | (129 | ) | (84 | ) | (622 | ) | ||||||||
| Total GAAP to non-GAAP adjustments | 8,036 | 7,496 | 4,139 | |||||||||||
| Non-GAAP net loss | $ | (2,503 | ) | $ | (1,411 | ) | $ | (3,265 | ) | |||||
| Diluted non-GAAP net loss per share | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.04 | ) | |||||
| Shares used in calculating diluted non-GAAP net loss per share | 84,980 | 84,127 | 81,179 | |||||||||||
| Diluted net loss per share: | ||||||||||||||
| GAAP diluted net loss per share | $ | (0.12 | ) | $ | (0.11 | ) | $ | (0.09 | ) | |||||
| GAAP to non-GAAP adjustments | 0.09 | 0.09 | 0.05 | |||||||||||
| Non-GAAP diluted net loss per share | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.04 | ) | |||||
| APPLIED MICRO CIRCUITS CORPORATION | |||||||||||||||
| SCHEDULE OF SELECTED GAAP TO NON-GAAP ADJUSTMENTS | |||||||||||||||
| (in thousands) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| June 30, | March 31, | June 30, | |||||||||||||
| 2016 | 2016 | 2015 | |||||||||||||
| GROSS PROFIT: | |||||||||||||||
| GAAP gross profit | $ | 25,469 | $ | 24,174 | 21,007 | ||||||||||
| Stock-based compensation expense | 158 | 172 | 93 | ||||||||||||
| Non-GAAP gross profit | $ | 25,627 | $ | 24,346 | $ | 21,100 | |||||||||
| OPERATING EXPENSES: | |||||||||||||||
| GAAP operating expenses | $ | 36,184 | $ | 33,194 | $ | 30,477 | |||||||||
| Stock-based compensation expense | (8,007 | ) | (7,465 | ) | (5,999 | ) | |||||||||
| Restructuring | - | 57 | (96 | ) | |||||||||||
| Non-GAAP operating expenses | $ | 28,177 | $ | 25,786 | $ | 24,382 | |||||||||
| INTEREST AND OTHER INCOME, NET | |||||||||||||||
| GAAP interest and other income, net | $ | 247 | $ | 229 | $ | 1,644 | |||||||||
| Reversals of impairment charges upon sales of marketable securities | - | - | (1,427 | ) | |||||||||||
| Non-GAAP interest and other income, net | $ | 247 | $ | 229 | $ | 217 | |||||||||
| INCOME TAX EXPENSE: | |||||||||||||||
| GAAP income tax expense | $ | 71 | $ | 116 | $ | (422 | ) | ||||||||
| Income tax adjustment | 129 | 84 | 622 | ||||||||||||
| Non-GAAP income tax expense | $ | 200 | $ | 200 | $ | 200 | |||||||||
| RESEARCH AND DEVELOPMENT: | |||||||||||||||
| GAAP research and development | $ | 27,485 | $ | 25,113 | $ | 21,617 | |||||||||
| Stock-based compensation expense | (5,993 | ) | (5,503 | ) | (4,060 | ) | |||||||||
| Non-GAAP research and development | $ | 21,492 | $ | 19,610 | $ | 17,557 | |||||||||
| SELLING, GENERAL AND ADMINISTRATIVE: | |||||||||||||||
| GAAP selling, general and administrative | $ | 8,699 | $ | 8,138 | $ | 8,764 | |||||||||
| Stock-based compensation expense | (2,014 | ) | (1,962 | ) | (1,939 | ) | |||||||||
| Non-GAAP selling, general and administrative | $ | 6,685 | $ | 6,176 | $ | 6,825 | |||||||||
| APPLIED MICRO CIRCUITS CORPORATION | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||
| 2016 | 2016 | 2015 | ||||||||||||||
| Operating activities: | ||||||||||||||||
| Net loss | $ | (10,539 | ) | $ | (8,907 | ) | $ | (7,404 | ) | |||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
| Depreciation | 1,570 | 1,891 | 1,838 | |||||||||||||
| Amortization of bond premium | 226 | 258 | - | |||||||||||||
| Stock-based compensation expense | 8,165 | 7,637 | 6,092 | |||||||||||||
| Tax effect on other comprehensive loss | (94 | ) | 49 | - | ||||||||||||
| Loss (gain) on short-term investments and other, net | (26 | ) | 7 | (1,455 | ) | |||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | 102 | 3,187 | 882 | |||||||||||||
| Inventories | 3,552 | 3,533 | 3,723 | |||||||||||||
| Other assets | (70 | ) | 3,891 | 2,464 | ||||||||||||
| Accounts payable | (2,382 | ) | (4,248 | ) | (3,453 | ) | ||||||||||
| Accrued payroll and other accrued liabilities | 1,077 | (1,018 | ) | 220 | ||||||||||||
| Veloce accrued liability | (8 | ) | (9 | ) | (65 | ) | ||||||||||
| Deferred revenue | 1 | (7 | ) | 7 | ||||||||||||
| Net cash provided by operating activities | 1,574 | 6,264 | 2,849 | |||||||||||||
| Investing activities: | ||||||||||||||||
| Proceeds from sales and maturities of short-term investments | 18,461 | 5,487 | 7,444 | |||||||||||||
| Purchases of short-term investments | (17,739 | ) | (6,443 | ) | (1,129 | ) | ||||||||||
| Proceeds from sale of property and equipment | 2 | - | 25 | |||||||||||||
| Purchases of property and equipment | (2,547 | ) | (562 | ) | (315 | ) | ||||||||||
| Net cash provided by (used for) investing activities | (1,823 | ) | (1,518 | ) | 6,025 | |||||||||||
| Financing activities: | ||||||||||||||||
| Proceeds from issuance of common stock | 32 | 1,736 | 133 | |||||||||||||
| Funding of restricted stock units withheld for taxes and other | (623 | ) | (187 | ) | (1,212 | ) | ||||||||||
| Net cash provided by (used for) financing activities | (591 | ) | 1,549 | (1,079 | ) | |||||||||||
| Net increase (decrease) in cash and cash equivalents | (840 | ) | 6,295 | 7,795 | ||||||||||||
| Cash and cash equivalents at beginning of the period | 25,065 | 18,770 | 36,495 | |||||||||||||
| Cash and cash equivalents at end of the period | $ | 24,225 | $ | 25,065 | $ | 44,290 | ||||||||||