($75)Applied Micro's Earnings Beat Estimates
SAN DIEGO (Reuters) - Applied Micro Circuits Corp. (NasdaqNM:AMCC - news), which makes communications chips for high-speed networks, on Tuesday reported fiscal third-quarter earnings that beat Wall Street forecasts earnings by two cents a share.
For the quarter ended Dec. 31, the San Diego-based company reported pro forma net income of $48.1 million, or 16 cents a share, compared with $12.1 million, or 5 cents per share in the year-earlier period.
Wall Street analysts had on average expected the company to earn 14 cents per share in the third quarter, according to First Call/Thomson Financial, which tracks such forecasts.
Applied Micro shares ended down $1-1/4 at $70-3/8 on Nasdaq, but were trading up at 72-1/4 after hours on Instinet following the earnings report.
Pro forma results exclude charges for acquired in-process research and development costs and the related effects of Applied Micro's acquisition of MMC Networks in late October. Including those effects, the company would have reported a third quarter net loss of $269.5 million, or a loss of 95 cents a share.
Revenues rose to $143.3 million, up from $45.8 million reported a year ago. The latest revenue number does not include sales from MMC Networks.
``This strength is being driven by our newer offerings, particularly 10-gigabit and framer layer products,'' Chief Executive Dave Rickey said in a statement. The company said communications sales were particularly strong, with 37 percent growth from the previous quarter.
Despite noting some concerns over supply constraints from International Business Machines Corp. (NYSE:IBM - news) and concerns over corporate spending amid early signs of an economic downturn, Rickey said on a conference call that demand still appeared healthy.
``There has been much discussion and concern in the last quarter over capital spending, the economy, inventory levels,'' Rickey said. ``However, our demand has remained strong. We have no tangible evidence our demand will slow down except for obvious macroeconomic concerns.''
He forecast sequential revenue growth for the fourth quarter would be in the upper teens to the lower 20s in percentage terms, compared with third quarter revenue, including |
