×

Applied Micro Circuits Corporation Reports Fiscal Year 2014 Revenue Up 10.5% Year-Over-Year

company logo

SUNNYVALE, Calif., April 24, 2014 (GLOBE NEWSWIRE) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) ("AppliedMicro") today reported its financial results for the fiscal fourth quarter and full year ended March 31, 2014.

Fiscal Q4 2014 Financial Information

  • Consolidated net revenue of $51.8 million
  • GAAP net income of $23.1 million or $0.30 per diluted share
  • Non-GAAP net income of $0.7 million or $0.01 earnings per diluted share
  • Total cash, cash equivalents and short-term investments were approximately $106.6 million as of March 31, 2014

Fiscal 2014 Full-Year Financial Information

  • Consolidated net revenue of $216.2 million
  • GAAP net loss of $5.7 million or $0.08 per share
  • Non-GAAP net income of $5.8 million or $0.08 earnings per diluted share

Commenting on AppliedMicro's fourth quarter and fiscal 2014 full year operations, Dr. Paramesh Gopi, President and Chief Executive Officer, said, "We are very excited with the progress we have made to commercialize X-Gene™. Design win momentum is strong, and we have purchase orders in-hand. We expect to begin sampling X-Gene 2 later this spring." Dr. Gopi continued, "In addition, our leadership in the OTN / converged Ethernet market has positioned us very well to benefit from the adoption of 100Gbps connectivity within and between data centers."

Doug Ahrens, Chief Financial Officer, said, "The base business performed better than our expectations on the bottom line and continues to support the ongoing development of our X-Gene and X-Weave™ growth initiatives. We are also very pleased to have further strengthened our balance sheet in the quarter."

Fiscal 2014 Fourth Quarter Results

Total net revenue for the fiscal 2014 fourth quarter was $51.8 million compared to $54.8 million in the third quarter of fiscal 2014 and $56.3 million in the fourth quarter of fiscal 2013, representing a decrease of 6% sequentially and a decrease of 8% year-over-year.

Net income on a generally accepted accounting principles (GAAP) basis for the fiscal 2014 fourth quarter was $23.1 million, or $0.30 per diluted share. This compares to a GAAP net loss of $7.3 million, or $0.10 per share, in the prior quarter and a GAAP net loss of $17.6 million, or $0.26 per share, in the fourth quarter of fiscal 2013.

Non-GAAP net income for the fiscal 2014 fourth quarter was $0.7 million, or $0.01 per diluted share, compared to non-GAAP net income of $1.6 million, or $0.02 per diluted share, in the prior quarter and non-GAAP net income of $0.1 million, or $0.00 per diluted share, in the same quarter last year.

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 fourth quarter results and business and financial outlook today, April 24, 2014, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time.

DIAL-IN: (877) 415-3183
(857) 244-7326
PASSCODE: 42709447
WEBCAST: Investor Relations section of the Company's website at www.apm.com

A replay of the call will be available starting approximately one hour after the completion of the call and can be accessed by dialing 888-286-8010 or 617-801-6888 and using the access code 40927216. The replay will be available through May 1, 2014.

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 Sunnyvale, California. www.apm.com.

(C) Copyright 2014, Applied Micro Circuits Corporation. AppliedMicro, X-Gene, X-Weave, Server on a Chip, 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; product cycles; new product development, commercialization and customer acceptance; the development of the X-Gene™ ecosystem; market and technological trends including the adoption of ARM-based products and the anticipated migration to 100G within and between data centers; 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, and in particular, new products such as X-Gene and X-Weave; potential problems or delays in product development and validation; competitors' product introductions, pricing decisions and other competitive factors; rapid technological change; increased supplier lead times and other supply chain constraints; the potential for manufacturing yield problems and product bugs or defects; changes in the businesses and financial condition of the Company's major customers and ecosystem partners, including their strategic and budgeting decisions; reductions, rescheduling or cancellation of customer orders; successful management of key service providers and recently acquired businesses; the possibility of unexpected expenses; potential changes in capital needs and liquidity; legal and regulatory developments; 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 Quarterly Report on Form 10-Q for the quarter ended December 31, 2013, 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)
March 31, March 31,
ASSETS 2014 2013
Current assets:
Cash, cash equivalents and short-term investments $106,583 $85,476
Accounts receivable, net 25,178 24,575
Inventories 18,946 12,900
Other current assets 16,799 17,998
Total current assets 167,506 140,949
Property and equipment, net 20,746 34,391
Goodwill 11,425 13,183
Purchased intangibles, net 105 11,991
Other assets 7,754 10,866
Total assets $207,536 $211,380
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $26,194 $17,650
Other current liabilities 28,961 96,439
Total current liabilities 55,155 114,089
Non-current liabilities:
Other long-term liabilities 3,145 15,787
Stockholders' equity 149,236 81,504
Total liabilities and stockholders' equity $207,536 $211,380
APPLIED MICRO CIRCUITS CORPORATION
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
March 31, December 31, March 31, March 31, March 31,
2014 2013 2013 2014 2013
Net revenues $51,771 $54,844 $56,326 $216,150 $195,642
Cost of revenues 19,806 21,644 21,174 85,189 83,048
Gross profit 31,965 33,200 35,152 130,961 112,594
Operating expenses:
Research and development 25,653 29,870 35,554 146,579 187,419
Selling, general and administrative 9,325 10,930 13,008 38,927 51,684
Amortization of purchased intangible assets 62 62 337 316 1,926
Restructuring charges, net 4 38 217 1,134 6,435
Gain on sale of building (25,815) -- -- (25,815) --
Gain on sale of TPack -- -- -- (19,699) --
Total operating expenses 9,229 40,900 49,116 141,442 247,464
Operating income (loss) 22,736 (7,700) (13,964) (10,481) (134,870)
Interest and other income (expense), net 418 617 (4,654) 5,406 201
Income (loss) before income taxes 23,154 (7,083) (18,618) (5,075) (134,669)
Income tax expense (benefit) 38 201 (1,012) 619 (554)
Net income (loss) $23,116 $(7,284) $(17,606) $(5,694) $(134,115)
Basic net income (loss) per share: $0.31 $(0.10) $(0.26) $(0.08) $(2.06)
Shares used in calculating basic net income (loss) per share 75,629 73,989 67,566 72,897 65,258
Diluted net income (loss) per share: $0.30 $(0.10) $(0.26) $(0.08) $(2.06)
Shares used in calculating diluted net income (loss) per share 77,193 73,989 67,566 72,897 65,258
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 Year Ended
March 31, December 31, March 31, March 31, March 31,
2014 2013 2013 2014 2013
GAAP net income (loss) $23,116 $(7,284) $(17,606) $(5,694) $(134,115)
Adjustments:
Stock-based compensation charges 3,591 5,882 2,691 17,021 24,236
Warrant expense -- -- -- -- 1,289
Amortization of purchased intangibles 62 62 1,017 482 4,643
Veloce acquisition consideration -- 2,945 9,608 42,684 66,188
Acquisition related recoveries -- -- -- -- (133)
Restructuring charges, net 4 38 217 1,134 6,435
Impairment of strategic investment -- -- 2,250 -- 2,250
Gain on sale of building (25,815) -- -- (25,815) --
Sale of equipment and other assets -- -- -- -- (1,299)
Impairment of notes receivable and other assets -- -- 1,800 -- 1,800
Gain on sale of TPack -- -- -- (19,699) --
Impairment of marketable securities (16) (17) 1,121 (3,992) (412)
Income tax adjustments (212) (48) (1,015) (368) 336
Total GAAP to Non-GAAP adjustments (22,386) 8,862 17,689 11,447 105,333
Non-GAAP net income (loss) $730 $1,578 $83 $5,753 $(28,782)
Diluted income (loss) per share $0.01 $0.02 $0.00 $0.08 $(0.44)
Shares used in calculating diluted income (loss) per share 77,193 75,754 68,522 74,371 65,258
Net income (loss) per share:
GAAP income (loss) per share $0.30 $(0.10) $(0.26) $(0.08) $(2.06)
GAAP to non-GAAP adjustments (0.29) 0.12 0.26 0.16 1.62
Non-GAAP net income (loss) per share $0.01 $0.02 $0.00 $0.08 $(0.44)
Reconciliation of shares used in calculating non-GAAP income (loss) per share:
Shares used in calculating the basic income (loss) per share 75,629 73,989 67,566 72,897 65,258
Adjustment for dilutive securities 1,564 1,765 956 1,474 --
Non-GAAP shares used in calculating diluted income (loss) per share 77,193 75,754 68,522 74,371 65,258
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 Year Ended
March 31, December 31, March 31, March 31, March 31,
2014 2013 2013 2014 2013
GROSS PROFIT:
GAAP gross profit $31,965 $33,200 $35,152 $130,961 $112,594
Amortization of purchased intangibles -- -- 680 166 2,717
Stock-based compensation expense 102 120 95 445 692
Non-GAAP gross profit $32,067 $33,320 $35,927 $131,572 $116,003
OPERATING EXPENSES:
GAAP operating expenses $9,229 $40,900 $49,116 $141,442 $247,464
Stock-based compensation expense (3,489) (5,762) (2,596) (16,576) (23,544)
Warrant expense -- -- -- -- (1,289)
Amortization of purchased intangibles (62) (62) (337) (316) (1,926)
Acquisition related expenses -- -- -- -- 133
Veloce acquisition consideration -- (2,945) (9,608) (42,684) (66,188)
Gain on sale of building 25,815 -- -- 25,815 --
Gain on sale of TPack -- -- -- 19,699 --
Restructuring charges, net (4) (38) (217) (1,134) (6,435)
Non-GAAP operating expenses $31,489 $32,093 $36,358 $126,246 $148,215
INTEREST AND OTHER INCOME (EXPENSE), NET
AND OTHER-THAN-TEMPORARY IMPAIRMENT:
GAAP interest and other income (expense), net $418 $617 $(4,654) $5,406 $201
Impairment of strategic investment -- -- 2,250 -- 2,250
Sale of equipment and other assets -- -- -- -- (1,299)
Impairment of notes receivable and other assets -- -- 1,800 -- 1,800
Other-than-temporary investment impairment (16) (17) 1,121 (3,992) (412)
Non-GAAP interest and other income (expense), net $402 $600 $517 $1,414 $2,540
INCOME TAX EXPENSE (BENEFIT):
GAAP income tax expense (benefit) $38 $201 $(1,012) $619 $(554)
Income tax adjustments 212 48 1,015 368 (336)
Non-GAAP income tax expense (benefit) $250 $249 $3 $987 $(890)
RESEARCH AND DEVELOPMENT :
GAAP research and development $25,653 $29,870 $35,554 $146,579 $187,419
Stock-based compensation expense (1,503) (1,546) (1,026) (6,390) (11,760)
Warrant expense -- -- -- -- (1,289)
Veloce acquisition consideration -- (2,945) (9,608) (42,684) (66,188)
Non-GAAP research and development $24,150 $25,379 $24,920 $97,505 $108,182
SELLING, GENERAL AND ADMINISTRATIVE :
GAAP selling, general and administrative $9,325 $10,930 $13,008 $38,927 $51,684
Stock-based compensation expense (1,986) (4,216) (1,570) (10,186) (11,784)
Acquisition related expenses -- -- -- -- 133
Non-GAAP selling, general and administrative $7,339 $6,714 $11,438 $28,741 $40,033
APPLIED MICRO CIRCUITS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Year Ended March 31,
2014 2013
Operating activities:
Net loss $ (5,694) $ (134,115)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation 10,273 9,542
Amortization of purchased intangibles 482 4,643
Stock-based compensation expense:
Stock options 2,519 3,469
Restricted stock units 14,502 20,767
Warrants -- 1,289
Veloce accrued liability 42,684 66,188
Tax effect on other comprehensive income (40) (989)
Noncash restructuring charges 298 4,719
Acquisition related adjustment -- (133)
Net gain on sale of TPack (19,699) --
Net gain on sale of building (25,815) --
Net gain on disposals of property, equipment and other assets (23) (1,293)
Impairment loss on strategic investments, net -- 2,250
Impairment of short-term investments and marketable securities -- 1,143
Write-off of notes receivable and other assets -- 1,800
Changes in operating assets and liabilities:
Accounts receivable (837) (1,909)
Inventories (6,049) 10,344
Other assets 3,232 (2,871)
Accounts payable 5,778 (622)
Accrued payroll and other accrued liabilities (671) (82)
Veloce accrued liability (63,657) (16,537)
Deferred revenue (770) (668)
Net cash used for operating activities (43,487) (33,065)
Investing activities:
Proceeds from sales and maturities of short-term investments 44,450 42,164
Purchases of short-term investments (18,081) (21,633)
Proceeds from sale of TPack 29,498 --
Proceeds from sale of property, equipment and other assets 70 1,800
Proceeds from sale of building 40,176 --
Purchase of property, equipment and other assets (5,952) (9,045)
Proceeds from sale of strategic equity investment 1,286 7,146
Purchase of strategic equity investment -- (500)
Net cash provided by investing activities 91,447 19,932
Financing activities:
Proceeds from issuances of common stock 11,619 8,873
Funding of restricted stock units withheld for taxes (6,550) (3,121)
Repurchase of common stock -- (653)
Payment of contingent consideration -- (485)
Other (555) (481)
Net cash provided by financing activities 4,514 4,133
Net increase (decrease) in cash and cash equivalents 52,474 (9,000)
Cash and cash equivalents at the beginning of the period 19,065 28,065
Cash and cash equivalents at the end of the period $ 71,539 $ 19,065

CONTACT: Investor Relations Contact: Traci Tsuchiguchi Phone: (408) 542-8353 E-Mail: ttsuchiguchi@apm.com Media Contact: Mike Major Phone: (408) 542-8831 E-mail: mmajor@apm.com

Source:Applied Micro Circuits Corporation