AMCC's EPS Above Estimate, Rev Lags - Analyst Blog
February 01 2012 - 6:00AM
Zacks
Applied Micro Circuits
Corporation (AMCC) posted Non-GAAP
net loss of $1.1 million in its third quarter of fiscal 2012,
compared to a net income of $6.8 million in the previous year
quarter and $1.1 million in the last quarter. Diluted EPS came in
at (2 cents) per share compared to 10 cents per share in the
year-ago quarter, beating the Zacks Consensus Estimate of (10
cents) per share.
Revenues
Net sales came in at $56.3 million,
down 9.6% year over year and 13.2% sequentially. This did not meet
the Zacks Consensus Estimate of $59 million but depicted that the
company had been prescient about this in its previously provided
outlook during its earlier quarter release.
Management averred its awareness of
demand softness in the quarter which continues to get onerous due
to the clouded macro environment. Recovery does not appear to be on
the cards too soon until such fiscal pressures mitigate.
Margins
Gross margin (excluding
amortization and compensation expenses) came in at 57.8% compared
to 61.7% in the last year quarter and 57.3% in the previous
quarter.
Operating loss for the quarter came
in at $7.8 million, plummeting the operating margin to (13.8%) from
(7.1%) in the previous year quarter and (3.2%) in the last fiscal
quarter.
Balance Sheet and Cash
Flows
Applied Micro ended the quarter
with cash and cash equivalents of $117.3 million compared to $113.7
million at the end of the previous quarter. Inventories amounted to
$17.6 million compared to $18.7 million at the end of the second
quarter of fiscal 2012.
For the first three quarters of
fiscal 2012, net cash used for operating activities were around $3
million and $11.9 million were spent on capital expenditures.
Outlook
The first ever 65-Bit ARM Processor
was launched during the quarter, which is expected to prove
momentous for the coming quarters. Moreover, management declared
that it has been making advances on its system on chip (SOC) and
other data center products which are expected to ameliorate the
future business scenario for Applied Micro.
The formidable competitors for
Applied Micro constitute some big players such as Entropic
Communications, Inc. (ENTR), Cirrus Logic,
Inc. (CRUS) and Cabot Microelectronics
Corporat (CCMP).
APPLD MICRO CIR (AMCC): Free Stock Analysis Report
CABOT MICROELEC (CCMP): Free Stock Analysis Report
CIRRUS LOGIC (CRUS): Free Stock Analysis Report
ENTROPIC COMMUN (ENTR): Free Stock Analysis Report
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