Applied Micro Circuits Corporation Reports Fiscal Year 2014 Revenue Up 10.5% Year-Over-Year
April 24 2014 - 4:01PM
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
Applied Micro Circuits (NASDAQ:AMCC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Applied Micro Circuits (NASDAQ:AMCC)
Historical Stock Chart
From Sep 2023 to Sep 2024