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Applied Micro Circuits Corporation Reports First Quarter Fiscal 2016 Financial Results

SANTA CLARA, Calif., July 30, 2015 (GLOBE NEWSWIRE) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) ("AppliedMicro") today reported its financial results for the fiscal 2016 first quarter ended June 30, 2015.

Fiscal Q1 2016 Financial Information

  • Consolidated net revenue of $37.8 million
  • GAAP net loss of $7.4 million or $0.09 per share
  • Non-GAAP net loss of $3.3 million or $0.04 per share
  • Total cash, cash equivalents and short-term investments of approximately $76.6 million as of June 30, 2015

Commenting on AppliedMicro's fiscal 2016 first quarter operations, Dr. Paramesh Gopi, President and Chief Executive Officer, said, "During our first fiscal quarter we made excellent progress with our X-Gene® product family with additional new customer deployments and evaluations, as well as the ongoing ecosystem development to support ARM®-based processors. We remain the industry's only provider of production 64-bit ARM server processors, and interest in our products is stronger than ever before. Additionally, our connectivity business performed well in the quarter, driven by increased sales of our X-Weave® product line, and our HeliX® family of embedded processors is gaining excellent customer traction.

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 2016 results and business and financial outlook today, July 30, 2015, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time.

DIAL-IN: (855) 777-0852
(631) 485-4854
PASSCODE: 83554587
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 83554587. The replay will be available through August 6, 2015.

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 2015, 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, 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)
(unaudited)
June 30, March 31,
2015 2015
ASSETS
Current assets:
Cash, cash equivalents and short-term investments $ 76,616 $ 75,358
Accounts receivable, net 11,526 12,407
Inventories 19,803 23,514
Other current assets 15,665 16,840
Total current assets 123,610 128,119
Property and equipment, net 15,227 16,749
Goodwill 11,425 11,425
Other assets 1,173 2,570
Total assets $ 151,435 $ 158,863
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 10,473 $ 13,896
Other current liabilities 21,162 17,571
Total current liabilities 31,635 31,467
Non-current liabilities 1,004 4,291
Stockholders' equity 118,796 123,105
Total liabilities and stockholders' equity $ 151,435 $ 158,863
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,
2015 2015 2014
Net revenues $ 37,813 $ 37,048 $ 50,272
Cost of revenues 16,806 16,482 20,257
Gross profit 21,007 20,566 30,015
Operating expenses:
Research and development 21,617 24,583 33,205
Selling, general and administrative 8,764 7,959 9,058
Amortization of purchased intangible assets -- -- 62
Restructuring 96 4,098 1,211
Total operating expenses 30,477 36,640 43,536
Operating loss (9,470) (16,074) (13,521)
Interest and other income, net 1,644 1,029 315
Loss before income taxes (7,826) (15,045) (13,206)
Income tax (benefit) expense (422) 99 (141)
Net loss $ (7,404) $ (15,144) $ (13,065)
Basic and diluted net loss per share: $ (0.09) $ (0.19) $ (0.17)
Shares used in calculating basic and diluted net loss per share 81,179 80,667 77,916
APPLIED MICRO CIRCUITS CORPORATION
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET (LOSS) INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended
June 30, March 31, June 30,
2015 2015 2014
GAAP net loss $ (7,404) $ (15,144) $ (13,065)
Adjustments:
Stock-based compensation expense 6,092 4,002 5,216
Amortization of purchased intangible assets -- -- 62
Veloce acquisition consideration -- 2,090 7,140
Restructuring 96 4,098 1,211
Impairment of strategic investments -- 500 --
Reversals of impairment charges upon sales of marketable securities (1,427) (1,176) (18)
Income tax effect on non-GAAP adjustments (622) (151) (391)
Total GAAP to non-GAAP adjustments 4,139 9,363 13,220
Non-GAAP net (loss) income $ (3,265) $ (5,781) $ 155
Diluted non-GAAP (loss) income per share $ (0.04) $ (0.07) $ 0.00
Shares used in calculating diluted non-GAAP (loss) income per share 81,179 80,667 79,082
Diluted net (loss) income per share:
GAAP diluted loss per share $ (0.09) $ (0.19) $ (0.17)
GAAP to non-GAAP adjustments 0.05 0.12 0.17
Non-GAAP diluted net (loss) income per share $ (0.04) $ (0.07) $ 0.00
Reconciliation of shares used in calculating non-GAAP (loss) income per share:
Shares used in calculating the basic (loss) income per share 81,179 80,667 77,916
Adjustment for dilutive securities -- -- 1,166
Shares used in calculating diluted non-GAAP (loss) income per share 81,179 80,667 79,082
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
June 30, March 31, June 30,
2015 2015 2014
GROSS PROFIT:
GAAP gross profit $ 21,007 $ 20,566 $ 30,015
Amortization of purchased intangible assets -- -- --
Stock-based compensation expense 93 69 47
Non-GAAP gross profit $ 21,100 $ 20,635 $ 30,062
OPERATING EXPENSES:
GAAP operating expenses $ 30,477 $ 36,640 $ 43,536
Stock-based compensation expense (5,999) (3,933) (5,169)
Amortization of purchased intangible assets -- -- (62)
Veloce acquisition consideration -- (2,090) (7,140)
Restructuring (96) (4,098) (1,211)
Non-GAAP operating expenses $ 24,382 $ 26,519 $ 29,954
INTEREST AND OTHER INCOME, NET
GAAP interest and other income, net $ 1,644 $ 1,029 $ 315
Impairment of strategic investments -- 500 --
Reversals of impairment charges upon sales of marketable securities (1,427) (1,176) (18)
Non-GAAP interest and other income, net $ 217 $ 353 $ 297
INCOME TAX EXPENSE:
GAAP income tax expense (benefit) $ (422) $ 99 $ (141)
Income tax adjustment 622 151 391
Non-GAAP income tax expense $ 200 $ 250 $ 250
RESEARCH AND DEVELOPMENT:
GAAP research and development $ 21,617 $ 24,584 $ 33,205
Stock-based compensation expense (4,060) (2,619) (3,271)
Veloce acquisition consideration -- (2,090) (7,140)
Non-GAAP research and development $ 17,557 $ 19,875 $ 22,794
SELLING, GENERAL AND ADMINISTRATIVE:
GAAP selling, general and administrative $ 8,764 $ 7,959 $ 9,058
Stock-based compensation expense (1,939) (1,314) (1,898)
Non-GAAP selling, general and administrative $ 6,825 $ 6,645 $ 7,160
APPLIED MICRO CIRCUITS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
June 30, March 31, June 30,
2015 2015 2014
Operating activities:
Net loss $ (7,404) $ (15,144) $ (13,065)
Adjustments to reconcile net loss to net cash used for
operating activities:
Depreciation 1,838 1,957 2,174
Amortization of purchased intangible assets -- -- 62
Stock-based compensation expense 6,092 4,002 5,216
Veloce acquisition consideration -- 2,090 7,140
Tax effect on other comprehensive loss -- 160 (194)
Non-cash restructuring charges -- 2,601 --
Impairment of strategic investments -- 500 --
(Gain) loss on short-term investments and other, net (1,455) (1,216) 16
Changes in operating assets and liabilities:
Accounts receivable, net 882 6,840 2,246
Inventories 3,723 698 (1,745)
Other assets 2,464 (705) 1,942
Accounts payable (3,453) (6,193) (6,479)
Accrued payroll and other accrued liabilities 220 (2,200) 1,663
Veloce accrued liability (65) (169) (6,383)
Deferred revenue 7 36 502
Net cash provided by (used for) operating activities 2,849 (6,743) (6,905)
Investing activities:
Proceeds from sales and maturities of short-term investments 7,444 11,142 682
Purchases of short-term investments (1,129) (17,165) (1,320)
Proceeds from sale of property and equipment 25 -- --
Purchases of property and equipment (315) (2,481) (4,264)
Proceeds from sale of Tpack -- -- 3,353
Net cash provided by (used for) investing activities 6,025 (8,504) (1,549)
Financing activities:
Proceeds from issuances of common stock 133 1,964 106
Funding of restricted stock units withheld for taxes (1,212) (302) (924)
Net cash (used for) provided by financing activities (1,079) 1,662 (818)
Net increase (decrease) in cash and cash equivalents 7,795 (13,585) (9,272)
Cash and cash equivalents at the beginning of the period 36,495 50,080 71,539
Cash and cash equivalents at the end of the period $ 44,290 $ 36,495 $ 62,267

CONTACT: 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

Source:Applied Micro Circuits Corporation