Applied Micro Circuits Corporation Reports Third Quarter Fiscal 2016 Financial Results
[ Back ]   [ More News ]   [ Home ]
Applied Micro Circuits Corporation Reports Third Quarter Fiscal 2016 Financial Results

SANTA CLARA, Calif., Jan. 28, 2016 (GLOBE NEWSWIRE) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) (“AppliedMicro”) today reported its financial results for the fiscal 2016 third quarter ended December 31, 2015.

Fiscal Q3 2016 Financial Information

Commenting on AppliedMicro’s fiscal 2016 third quarter operations, Dr. Paramesh Gopi, President and Chief Executive Officer, said, “On top of the solid execution of our base connectivity business, and with overall financial results once again demonstrating continued and consistent improvement, we are seeing clear evidence of the ongoing traction of both our X-Gene® and HeliX® families of computing products, and our X-Weave® family of connectivity products.”

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 third quarter fiscal 2016 results and business and financial outlook today, January 28, 2016, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time.

DIAL-IN: (855) 777-0852
  (631) 485-4854
PASSCODE: 20258064
WEBCAST: Investor Relations section of the Company’s website at www.apm.com
   

A replay of the call will be available starting at 9:00 PM Eastern Time and can be accessed by dialing 855-859-2056 or 404-537-3406 and using the access code 20258064. The replay will be available through February 4, 2016.

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 Quarterly Report on Form 10-Q for the quarter ended  September 30, 2015, 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)
    
 December 31, March 31,
  2015   2015 
 (unaudited)  
ASSETS   
Current assets:   
Cash, cash equivalents and short-term investments$  76,443  $  75,358 
Accounts receivable, net   12,452     12,407 
Inventories   19,692     23,514 
Other current assets   14,578     16,840 
Total current assets   123,165     128,119 
Property and equipment, net   13,348     16,749 
Goodwill   11,425     11,425 
Other assets   1,626     2,570 
Total assets$  149,564  $  158,863 
    
LIABILITIES AND STOCKHOLDERS' EQUITY   
Current liabilities:   
Accounts payable   12,876  $  13,896 
Other current liabilities   20,114     17,571 
Total current liabilities   32,990     31,467 
Non-current liabilities   781   4,291 
Stockholders' equity   115,793     123,105 
Total liabilities and stockholders' equity$  149,564  $  158,863 
    


APPLIED MICRO CIRCUITS CORPORATION
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
          
 Three Months Ended Nine Months Ended
 December 31, September 30, December 31, December 31, December 31,
  2015   2015   2014   2015   2014 
Net revenues$  40,623  $  39,743  $  36,747  $  118,179  $  127,964 
Cost of revenues   18,241     17,758     14,842     52,805     52,815 
Gross profit   22,382     21,985     21,905     65,374     75,149 
Operating expenses:         
Research and development   22,377     22,411     24,721     66,405     82,636 
Selling, general and administrative   8,232     8,373     8,707     25,369     25,684 
Amortization of purchased intangible assets   -     -     -     -     105 
Restructuring   (29)    15     221     82     1,322 
Total operating expenses   30,580     30,799     33,649     91,856     109,747 
Operating loss   (8,198)    (8,814)    (11,744)    (26,482)    (34,598)
Interest and other income (expense), net   169     265     475     2,078     (1,322)
Loss before income taxes   (8,029)    (8,549)    (11,269)    (24,404)    (35,920)
Income tax provision (benefit)    170     (488)    862     (740)    993 
Net loss$  (8,199) $  (8,061) $  (12,131) $  (23,664) $  (36,913)
          
Basic and diluted net loss per share:$  (0.10) $  (0.10) $  (0.15) $  (0.29) $  (0.47)
Shares used in calculating basic and diluted net loss per share   83,191     82,176     78,920     82,186     78,442 
          


APPLIED MICRO CIRCUITS CORPORATION
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS
(in thousands, except per share data)
(unaudited)
            
 Three Months Ended  Nine Months Ended
 December 31, September 30,  December 31,  December 31, December 31,
  2015   2015    2014    2015   2014 
            
GAAP net loss$  (8,199) $  (8,061)  $  (12,131)  $  (23,664) $  (36,913)
Adjustments:           
Stock-based compensation expense   6,141     5,934      4,857      18,167     14,303 
Amortization of purchased intangible assets   -     -      -      -     105 
Veloce acquisition consideration   -     -      -       -     7,140 
Restructuring   (29)    15      221      82     1,322 
Impairment of a strategic investment   -     -      -      -     2,500 
Reversals of impairment charges upon sales of marketable securities   -     (267)     (129)     (1,694)    (158)
Income tax effect on non-GAAP adjustments   (30)    (25)     62      (677)    (307)
Total GAAP to non-GAAP adjustments   6,082     5,657      5,011      15,878     24,905 
Non-GAAP net loss$  (2,117) $  (2,404)  $  (7,120)  $  (7,786) $  (12,008)
            
Diluted non-GAAP net loss per share$  (0.03) $  (0.03)  $  (0.09)  $  (0.09) $  (0.15)
            
Shares used in calculating diluted non-GAAP net loss per share    83,191     82,176      78,920      82,186     78,442 
            
Diluted net loss per share:           
GAAP diluted net loss per share$  (0.10) $  (0.10)  $  (0.15)  $  (0.29) $  (0.47)
GAAP to non-GAAP adjustments 0.07   0.07    0.06    0.19   0.32 
Non-GAAP diluted net loss per share$  (0.03) $  (0.03)  $  (0.09)  $  (0.09) $  (0.15)
            
Reconciliation of shares used in calculating non-GAAP net loss per share:           
Shares used in calculating the basic net loss per share   83,191     82,176      78,920      82,186     78,442 
Adjustment for dilutive securities   -     -      -      -     - 
Shares used in calculating diluted non-GAAP net loss per share   83,191     82,176      78,920      82,186     78,442 
            


APPLIED MICRO CIRCUITS CORPORATION
SCHEDULE OF SELECTED GAAP TO NON-GAAP ADJUSTMENTS
(in thousands)
(unaudited)
             
The following schedule reconciles selected line items on the condensed consolidated statements of operations from the GAAP basis to the non-GAAP basis:
             
  Three Months Ended  Nine Months Ended
  December 31, September 30,  December 31,  December 31, December 31,
   2015   2015    2014    2015   2014 
GROSS PROFIT:            
GAAP gross profit $  22,382  $  21,985   $  21,905   $  65,374  $  75,149 
Stock-based compensation expense    140     116      72      349     221 
Non-GAAP gross profit $  22,522  $  22,101   $  21,977   $  65,723  $  75,370 
             
OPERATING EXPENSES:            
GAAP operating expenses $  30,580  $  30,799   $  33,649   $  91,856  $  109,747 
Stock-based compensation expense    (6,001)    (5,818)     (4,785)     (17,818)    (14,082)
Amortization of purchased intangible assets    -     -      -      -     (105)
Veloce acquisition consideration    -     -      -      -     (7,140)
Restructuring    29     (15)     (221)     (82)    (1,322)
Non-GAAP operating expenses $  24,608  $  24,966   $  28,643   $  73,956  $  87,098 
             
INTEREST AND OTHER (EXPENSE) INCOME, NET            
GAAP interest and other income (expense), net $  169  $  265   $  475   $  2,078  $  (1,322)
Impairment of a strategic investment    -     -      -      -     2,500 
Reversals of impairment charges upon sales of marketable securities    -     (267)     (129)     (1,694)    (158)
Non-GAAP interest and other income (expense), net $  169  $  (2)  $  346   $  384  $  1,020 
             
INCOME TAX (BENEFIT) EXPENSE:            
GAAP income tax expense (benefit) $  170  $  (488)  $  862   $  (740) $  993 
Income tax adjustment    30     25      (62)     677     307 
Non-GAAP income tax expense (benefit) $  200  $  (463)  $  800   $  (63) $  1,300 
             
RESEARCH AND DEVELOPMENT:            
GAAP research and development  $  22,377  $  22,411   $  24,721   $  66,405  $  82,636 
Stock-based compensation expense    (4,500)    (3,955)     (2,992)     (12,515)    (9,039)
Veloce acquisition consideration    -     -      -      -     (7,140)
Non-GAAP research and development  $  17,877  $  18,456   $  21,729   $  53,890  $  66,457 
             
SELLING, GENERAL AND ADMINISTRATIVE:            
GAAP selling, general and administrative  $  8,232  $  8,373   $  8,707   $  25,369  $  25,684 
Stock-based compensation expense    (1,501)    (1,863)     (1,793)  $  (5,303)    (5,043)
Non-GAAP selling, general and administrative  $  6,731  $  6,510   $  6,914   $  20,066  $  20,641 
             


APPLIED MICRO CIRCUITS CORPORATION 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
(in thousands) 
(unaudited) 
            
  Three Months Ended Nine Months Ended 
  December 31, September 30, December 31, December 31, December 31, 
   2015   2015   2014   2015   2014  
Operating activities:           
Net loss $  (8,199) $  (8,061) $  (12,131) $  (23,664) $  (36,913) 
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:          
Depreciation    2,028     1,833     2,223     5,699     6,598  
Amortization of purchased intangible assets    -     -     -     -     105  
Amortization of bond premium    429     -     -     429     -  
Stock-based compensation expense    6,141     5,934     4,857     18,167     14,303  
Veloce acquisition consideration    -     -     -      -     7,140  
Tax effect on other comprehensive loss    -     -     50     -     (34) 
Non-cash restructuring charges    -     -     14     -     14  
Impairment of a strategic investment    -     -     -     -     2,500  
Gain on short-term investments and other, net     (1)    (132)    (123)    (1,588)    (101) 
Changes in operating assets and liabilities:          -    
Accounts receivable    172     (1,099)    (1,366)    (45)    5,931  
Inventories    700     (574)    (6,605)    3,849     (5,271) 
Other assets     754     (355)    (1,336)    2,863     (736) 
Accounts payable     992     1,095     8,375     (1,366)    (3,719) 
Accrued payroll and other accrued liabilities     168     (50)    1,662     338     (927) 
Veloce accrued liability    (9)    (25)    (1,482)    (99)    (8,981) 
Deferred revenue     (39)    (30)    (22)    (62)    (188) 
Net cash provided by (used for) operating activities    3,136     (1,464)    (5,884)    4,521     (20,279) 
Investing activities:           
Proceeds from sales and maturities of short-term investments     10,380     40,403     3,278     58,227     5,198  
Purchases of short-term investments     (14,319)    (62,573)    (653)    (78,021)    (2,722) 
Proceeds from sale of property and equipment    -     6     -     31     1  
Purchases of property and equipment and other assets    (1,232)    (492)    (271)    (2,039)    (7,291) 
Proceeds from sale of TPack    -      -     -     -      3,353  
Net cash provided by (used for) investing activities    (5,171)    (22,656)    2,354     (21,802)    (1,461) 
Financing activities:           
Proceeds from issuances of common stock    (2)    1,112     27     1,243     1,890  
Funding of restricted stock units withheld for taxes    (268)    (207)    (363)    (1,687)    (1,609) 
Net cash provided by (used for) financing activities    (270)    905     (336)    (444)    281  
Net decrease in cash and cash equivalents    (2,305)    (23,215)    (3,866)    (17,725)    (21,459) 
Cash and cash equivalents at the beginning of the period    21,075     44,290     53,946     36,495     71,539  
Cash and cash equivalents at the end of the period $  18,770  $  21,075  $  50,080  $  18,770  $  50,080  
            


Investor Relations Contact:
Suzanne Schmidt
Phone: (415) 217-4962
E-Mail: suzanne@blueshirtgroup.com

Media Contact:
Mike Major
Phone: (408) 542-8831
E-mail: mmajor@apm.com

Primary Logo