SUNNYVALE, Calif., Oct. 29, 2009 (GLOBE NEWSWIRE) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) today reported its financial results for the second quarter of fiscal 2010 ended September 30, 2009.
* Q2 net revenues from continuing operations were $49.2 million up 9% sequentially and down 23% year over year. * Q2 2010 GAAP net loss from continuing operations was $(8.1) million or $(0.12) per share. Q2 2010 net income from discontinued operations were $1.3 million or $0.02 per share. * Q2 2010 non-GAAP net income (from continuing operations) was $1.3 million or $0.02 per share. * Total cash was approximately $198 million as of September 30, 2009.
Net revenues from continuing operations for the second quarter of fiscal 2010 were $49.2 million compared to $45.1 million in the first quarter of fiscal 2010, representing a sequential increase of 9% and a decline of 23% over the $64.3 million in net revenues reported in the second quarter of fiscal 2009. Revenues for the first six months were $94.3 million compared to $125.5 million for the comparable period last year, a 25% decrease.
The net loss on a generally accepted accounting principles (GAAP) basis for the second quarter of fiscal 2010 was $(6.7) million or $(0.10) per share. The second quarter GAAP net loss compares with a net income of $2.9 million or $0.04 per share for the first quarter of fiscal 2010 and a net loss of $(2.3) million or $(0.04) per share for the second quarter of fiscal 2009. Year to date, GAAP net loss was $(3.8) million or $(0.06) per share compared to $(7.5) million or $(0.12) per share for the first six months of fiscal 2009.
Non-GAAP income from continuing operations for the second quarter of fiscal 2010 was $1.3 million or $0.02 per share, compared to non-GAAP income from continuing operations of $0.9 million or $0.01 per share in the first quarter of fiscal 2010 and non-GAAP net income from continuing operations of $9.7 million or $0.15 per share for the second quarter of fiscal 2009. Year to date, non-GAAP net income from continuing operations was $2.2 million or $0.03 per share compared to $16.7 million or $0.26 per share for the first six months of fiscal 2009.
"We executed to plan and are excited with the significant interest and traction we have been able to generate with key customers and new product platforms. We continue to lay a solid foundation for future growth," said Paramesh Gopi, president and chief executive officer.
Bob Gargus, chief financial officer commented, "We are happy with the sustained revenue growth and continue to make progress with our bottom line and overall asset management."
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, payroll tax on certain stock option exercises, 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, October 29, 2009, at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss additional details regarding the Company's performance for the second quarter of fiscal 2010 and to provide guidance for the third quarter of fiscal 2010. You may access the conference call via any of the following:
Teleconference: 866-730-5762 Conference ID: 93408858 Web Broadcast: http://www.appliedmicro.com Replay: 888-286-8010 (access code: 61405428, available through November 5, 2009)
AppliedMicro Overview
AppliedMicro is a global leader in energy efficient sustainable solutions to process, transport, and store information for the next generation of Internet data center and carrier central office. A leader in high speed signal processing, IP and Ethernet packet processing, and embedded processors, AppliedMicro's patented innovations provide high value solutions in telecom, enterprise and consumer 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.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, 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, 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)
-------- --------
Sept. 30, March 31,
ASSETS 2009 2009
-------- --------
Current assets:
Cash, cash equivalents and
short-term investments $197,696 $184,009
Accounts receivable, net 21,275 17,537
Inventories 19,421 26,598
Other current assets 8,356 8,871
Assets of discontinued operations -- 8,558
-------- --------
Total current assets 246,748 245,573
Property and equipment, net 26,237 25,749
Purchased intangibles, net 24,109 32,965
Other assets 20,303 20,323
-------- --------
Total assets $317,397 $324,610
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 13,431 $ 16,715
Other current liabilities 15,861 23,925
-------- --------
Total current liabilities 29,292 40,640
Stockholders' equity 288,105 283,970
-------- --------
Total liabilities and stockholders' equity $317,397 $324,610
======== ========
APPLIED MICRO CIRCUITS CORPORATION
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
---------------------------- ------------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2009 2009 2008 2009 2008
---------------------------- ------------------
Net revenues $ 49,232 $ 45,052 $ 64,290 $ 94,284 $125,489
Cost of revenues 23,796 22,175 28,576 45,971 57,002
-------- -------- -------- -------- --------
Gross profit 25,436 22,877 35,714 48,313 68,487
Operating expenses:
Research and
development 20,828 19,414 21,410 40,242 41,860
Selling, general
and
administrative 11,991 10,519 13,780 22,510 27,631
Amortization of
purchased
intangibles 1,005 1,005 1,005 2,010 2,010
Restructuring
charges
(reversals), net (125) (154) 140 (279) (118)
Litigation
settlement -- -- 130 -- 130
Option
investigation
related expenses,
net -- -- (184) -- 163
-------- -------- -------- -------- --------
Total operating
expenses 33,699 30,784 36,281 64,483 71,676
-------- -------- -------- -------- --------
Operating loss (8,263) (7,907) (567) (16,170) (3,189)
Interest and other
(expense) income
and other-than-
temporary
impairment, net (3,425) 1,589 (550) (1,836) (1,877)
-------- -------- -------- -------- --------
Loss from continuing
operations before
income taxes (11,688) (6,318) (1,117) (18,006) (5,066)
Income tax expense
(benefit) (3,617) (3,519) 403 (7,136) 905
-------- -------- -------- -------- --------
Loss from continuing
operations (8,071) (2,799) (1,520) (10,870) (5,971)
Income (loss) from
discontinued
operations net
of income taxes(1) 1,347 5,697 (793) 7,044 (1,516)
-------- -------- -------- -------- --------
Net income (loss) $ (6,724) $ 2,898 $ (2,313) $ (3,826) $ (7,487)
======== ======== ======== ======== ========
Basic income (loss)
per share:
Loss per share
from continuing
operations $ (0.12) $ (0.04) $ (0.02) $ (0.16) $ (0.09)
Income (loss) per
share from
discontinued
operations 0.02 0.08 (0.02) 0.10 (0.03)
-------- -------- -------- -------- --------
Net income (loss)
per share $ (0.10) $ 0.04 $ (0.04) $ (0.06) $ (0.12)
======== ======== ======== ======== ========
Shares used in
calculating basic
income (loss)
per share 66,469 66,070 65,150 66,270 65,007
======== ======== ======== ======== ========
Diluted income
(loss) per share:
Loss per share
from
continuing
operations $ (0.12) $ (0.04) $ (0.02) $ (0.16) $ (0.09)
Income (loss) per
share from
discontinued
operations 0.02 0.08 (0.02) 0.10 (0.03)
-------- -------- -------- -------- --------
Net income (loss)
per share $ (0.10) $ 0.04 $ (0.04) $ (0.06) $ (0.12)
======== ======== ======== ======== ========
Shares used in
calculating
diluted income
(loss) per share 66,469 66,733 65,150 66,270 65,007
======== ======== ======== ======== ========
------
(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 Six Months Ended
---------------------------- ------------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2009 2009 2008 2009 2008
---------------------------- ------------------
Net revenues $ 703 $ 516 $ 12,641 $ 1,219 $ 25,502
Cost of revenues 51 733 7,405 784 14,829
-------- -------- -------- -------- --------
Gross profit (loss) 652 (217) 5,236 435 10,673
Operating expenses:
Research and
development 83 594 3,051 677 6,082
Selling, general
and
administrative 238 545 2,554 783 5,316
Amortization of
purchased
intangibles -- -- 315 -- 630
-------- -------- -------- -------- --------
Total operating
expenses 321 1,139 5,920 1,460 12,028
-------- -------- -------- -------- --------
Operating income
(loss) 331 (1,356) (684) (1,025) (1,355)
Gain on sale of
Storage Business 712 10,654 -- 11,366 --
-------- -------- -------- -------- --------
Income (loss) from
discontinued
operations before
income taxes 1,043 9,298 (684) 10,341 (1,355)
Income tax expense
(benefit) (304) 3,601 109 3,297 161
-------- -------- -------- -------- --------
Net income (loss)
from discontinued
operations, net of
income taxes $ 1,347 $ 5,697 $ (793) $ 7,044 $ (1,516)
======== ======== ======== ======== ========
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 Six Months Ended
---------------------------- ------------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2009 2009 2008 2009 2008
---------------------------- ------------------
GAAP net loss from
continuing
operations $ (8,071) $ (2,799) $ (1,520) $(10,870) $ (5,971)
Adjustments:
Stock-based
compensation
charges 3,767 2,615 2,693 6,382 5,562
Amortization of
purchased
intangibles 4,269 4,588 4,863 8,857 9,724
Restructuring
charges
(reversals), net (125) (154) 140 (279) (118)
Impairment of
strategic
investment 2,000 -- -- 2,000 --
Other-than-
temporary
investment
impairment 3,133 175 3,444 3,308 6,837
Litigation
settlement -- -- 130 -- 130
Option
investigation
related expenses,
net -- -- (184) -- 163
Income tax
adjustments (3,658) (3,546) 104 (7,204) 388
-------- -------- -------- -------- --------
Total GAAP to
Non-GAAP
adjustments 9,386 3,678 11,190 13,064 22,686
-------- -------- -------- -------- --------
Non-GAAP income
(loss) from
continuing
operations $ 1,315 $ 879 $ 9,670 $ 2,194 $ 16,715
======== ======== ======== ======== ========
Diluted income
(loss) per share
from continuing
operations $ 0.02 $ 0.01 $ 0.15 $ 0.03 $ 0.26
======== ======== ======== ======== ========
Shares used in
calculating diluted
income (loss)
per share 68,409 66,733 65,369 67,572 65,237
======== ======== ======== ======== ========
Income (loss) per
share from
continuing
operations:
GAAP income (loss)
per share $ (0.12) $ (0.04) $ (0.02) $ (0.16) $ (0.09)
GAAP to non-GAAP
adjustments 0.14 0.05 0.17 0.19 0.35
-------- -------- -------- -------- --------
Non-GAAP income
(loss) per share
from continuing
operations $ 0.02 $ 0.01 $ 0.15 $ 0.03 $ 0.26
======== ======== ======== ======== ========
Reconciliation of
shares used in
calculating
non-GAAP income
per share:
Shares used in
calculating the
basic income
(loss) per share 66,469 66,070 65,150 66,270 65,007
Adjustment for
dilutive
securities 1,940 663 219 1,302 230
-------- -------- -------- -------- --------
Non-GAAP shares
used in the
EPS calculation 68,409 66,733 65,369 67,572 65,237
======== ======== ======== ======== ========
Discontinued operations
-----------------------
Three Months Ended Six Months Ended
---------------------------- ------------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2009 2009 2008 2009 2008
---------------------------- ------------------
GAAP income (loss)
from discontinued
operations $ 1,347 $ 5,697 $ (793) $ 7,044 $ (1,516)
Adjustments:
Stock-based
compensation
charges -- -- 304 -- 643
Amortization of
purchased
intangibles -- -- 1,040 -- 2,080
Gain on sale of
Storage
Business (712) (10,654) -- (11,366) --
Income tax
adjustments (314) 3,642 89 3,328 120
-------- -------- -------- -------- --------
Total GAAP to
non-GAAP
adjustments (1,026) (7,012) 1,433 (8,038) 2,843
-------- -------- -------- -------- --------
Non-GAAP income
(loss) from
discontinued
operations $ 321 $ (1,315) $ 640 $ (994) $ 1,327
======== ======== ======== ======== ========
Income (loss) per
share from
discontinued
operations:
GAAP income (loss)
per share $ 0.02 $ 0.08 $ (0.02) $ 0.10 $ (0.03)
GAAP to non-GAAP
adjustments (0.02) (0.10) 0.03 (0.11) 0.05
-------- -------- -------- -------- --------
Non-GAAP income
(loss) per share
from discontinued
operations $ -- $ (0.02) $ 0.01 $ (0.01) $ 0.02
======== ======== ======== ======== ========
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 Six Months Ended
---------------------------- ------------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2009 2009 2008 2009 2008
---------------------------- ------------------
GROSS PROFIT:
GAAP gross profit $ 25,436 $ 22,877 $ 35,714 $ 48,313 $ 68,487
Gross profit
(loss) from
discontinued
operations 652 (217) 5,236 435 10,673
Amortization of
purchased
intangibles 3,264 3,583 4,583 6,847 9,164
Stock-based
compensation
expense 143 111 182 254 396
-------- -------- -------- -------- --------
Non-GAAP gross
profit $ 29,495 $ 26,354 $ 45,715 $ 55,849 $ 88,720
======== ======== ======== ======== ========
OPERATING EXPENSES:
GAAP operating
expenses $ 33,699 $ 30,784 $ 36,281 $ 64,483 $ 71,676
Operating expenses
from discontinued
operations 321 1,139 5,920 1,460 12,028
Stock-based
compensation
expense (3,624) (2,504) (2,815) (6,128) (5,809)
Amortization of
purchased
intangibles (1,005) (1,005) (1,320) (2,010) (2,640)
Restructuring
charges
(reversals), net 125 154 (140) 279 118
Litigation
settlement -- -- (130) -- (130)
Option
investigation
related expenses,
net -- -- 184 -- (163)
-------- -------- -------- -------- --------
Non-GAAP operating
expenses $ 29,516 $ 28,568 $ 37,980 $ 58,084 $ 75,080
======== ======== ======== ======== ========
INTEREST AND OTHER
INCOME, NET
GAAP interest and
other (expense)
income, net $ (3,425) $ 1,589 $ (550) $ (1,836) $ (1,877)
Impairment of
strategic
investment 2,000 -- -- 2,000 --
Other-than-
temporary
investment
impairment 3,133 175 3,444 3,308 6,837
-------- -------- -------- -------- --------
Non-GAAP interest
and other income,
net $ 1,708 $ 1,764 $ 2,894 $ 3,472 $ 4,960
======== ======== ======== ======== ========
INCOME TAX EXPENSE
(BENEFIT):
GAAP income tax
expense (benefit) $ (3,617) $ (3,519) $ 403 $ (7,136) $ 905
Income tax expense
(benefit) from
discontinued
operations (304) 3,601 109 3,297 161
Income tax
adjustments 3,972 (96) (193) 3,876 (508)
-------- -------- -------- -------- --------
Non-GAAP income tax
expense (benefit) $ 51 $ (14) $ 319 $ 37 $ 558
======== ======== ======== ======== ========
RESEARCH AND
DEVELOPMENT
GAAP research and
development $ 20,828 $ 19,414 $ 21,410 $ 40,242 $ 41,860
Research and
development from
discontinued
operations 83 594 3,051 677 6,082
Stock-based
compensation
expense (1,594) (1,272) (1,098) (2,866) (2,435)
-------- -------- -------- -------- --------
Non-GAAP research
and development $ 19,317 $ 18,736 $ 23,363 $ 38,053 $ 45,507
======== ======== ======== ======== ========
SELLING, GENERAL
AND ADMINISTRATIVE
GAAP selling,
general and
administrative $ 11,991 $ 10,519 $ 13,780 $ 22,510 $ 27,631
Selling, general
and administrative
from discontinued
operations 238 545 2,554 783 5,316
Stock-based
compensation
expense (2,030) (1,232) (1,717) (3,262) (3,374)
-------- -------- -------- -------- --------
Non-GAAP selling,
general and
administrative $ 10,199 $ 9,832 $ 14,617 $ 20,031 $ 29,573
======== ======== ======== ======== ========
APPLIED MICRO CIRCUITS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended
September 30,
----------------------
2009 2008
--------- ---------
Operating activities:
Net income (loss) $ (3,826) $ (7,487)
Adjustments to reconcile net loss to net
cash provided by (used for) operating
activities:
Depreciation 3,173 3,449
Amortization of purchased intangibles 8,856 11,804
Stock-based compensation expense:
Stock options 2,090 3,703
Restricted stock units 4,292 2,502
Other-than-temporary impairment of
marketable securities 3,454 6,837
Impairment of strategic investment 2,000 --
Tax benefit from other
comprehensive income (4,007)
Net loss on disposals of property 24 29
Net gain on sale of storage business unit (11,366) --
Changes in operating assets a
and liabilities:
Accounts receivable (3,738) (3,099)
Inventories 6,720 3,485
Other assets (503) 1,050
Accounts payable (4,398) (2,059)
Accrued payroll and other
accrued liabilities (6,365) (244)
Deferred tax liability -- 439
Deferred revenue (1,723) 111
--------- ---------
Net cash provided by(used for)
operating activities (5,317) 20,520
--------- ---------
Investing activities:
Proceeds from sales and maturities of
short-term investments 415,785 339,602
Purchases of short-term investments (406,143) (335,619)
Purchase of property, equipment
and other assets (3,664) (4,935)
Purchases of strategic investment (1,000) --
Proceeds from sale of storage
business unit 21,527 --
--------- ---------
Net cash provided by(used for)
investing activities 26,505 (952)
--------- ---------
Financing activities:
Proceeds from issuance of common stock 1,767 1,615
Funding of structured stock
repurchase agreements (21,797) --
Funds received from structured stock
repurchase agreements 12,044 --
Other (721) (63)
--------- ---------
Net cash provided by (used for)
financing activities (8,707) 1,552
--------- ---------
Net increase (decrease) in cash and
cash equivalents 12,481 21,120
Cash and cash equivalents at the
beginning of the period 99,337 42,689
--------- ---------
Cash and cash equivalents at the
end of the period 111,818 63,809
========= =========