Applied Micro Circuits Corporation Reports First Quarter Fiscal 2017 Financial Results
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Applied Micro Circuits Corporation Reports First Quarter Fiscal 2017 Financial Results

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

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 
           


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

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

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