-Applied Micro misses revenue goal, drops forecast
(adds details throughout from conference call, byline,
closing share price, previous SAN DIEGO)
By Timna Tanners
LOS ANGELES, April 24 (Reuters) - Communications chip maker
Applied Micro Circuits Corp. <AMCC.O> on Tuesday reported
fourth-quarter earnings that met Wall Street's income
expectations, but missed analysts' and its own revenue
forecasts.
Company officials also gave earnings guidance for its
current quarter that fell below analyst expectations, but said
they expected revenues would hit bottom in coming months.
The San Diego-based maker of communications chips for
high-speed networks said its net income for the quarter was
$28.3 million or 9 cents a share, compared with $21.0 million
or 8 cents a share in the year-ago period.
That met Wall Street consensus expectations of a 9-cent
profit, with earnings forecasts ranging from 7 to 10 cents a
share, according to Thomson Financial/First Call. The company
lowered its earnings expectations on March 1, as key customers
Nortel, Cisco, Lucent and JDS Uniphase also dropped forecasts.
Revenues were $121.1 million for the fourth quarter, up 112
percent from the prior year's $57 million. A survey of 13
analysts had forecast revenue of $124.55 million and Applied
Micro has said its revenue would be between $125 million and
$135 million.
Applied Micro executives attributed the lower-than-expected
revenues to conservative revenue reporting.
Company officials said Nortel Networks Corp. <NT.N> <NT.TO>
was its biggest customer, accounting for more than 12 percent
of revenues, followed by Marconi Plc. <MONI.L> with 11 percent
and Cisco Systems Inc. <CSCO.O> accounting for 10 percent of
Applied Micro's revenues.
OUTLOOK STILL WEAK
The company said it expected to post between break even
earnings and a 2-cent profit for its fiscal first quarter, on
revenues of between $70 and $85 million. Officials saw revenues
hitting their lowest point between its current and second
quarters.
A survey of 18 analysts had forecast a 7-cent profit for
the company's first quarter, with a range from 3 to 12 cents.
Revenues were forecast at $106.36 million in a poll of 7
analysts, and estimates fell between $85 million to $128.6
million.
Chief Executive Dave Rickey said visibility for the June
quarter was poor, saying it was still difficult to project
earnings expectations. He said bookings so far for April were
disappointing.
Rickey said the company was not cutting staff, but said its
pace of hiring would be slower. Applied Micro would trim
discretionary spending, such as for part-time employees,
consultants and non-critical travel, he added.
The company's shares closed at $23.98, down 6.3 percent or
$1.62, and have fallen from $75 at the start of the year or 68
percent as communications chip makers have seen orders slip
with the general economy.
In contrast, the Philadelphia Semiconductor Index <.SOXX>
is up some 5 percent from the beginning of the year.
((Los Angeles newsroom, 213-380-2014))
REUTERS |
