from dj.. somewhat encouraging...
Revenue for the fiscal first quarter was $64.7 million, slightly lower than the $65 million analysts were expecting. For the second
quarter, Applied Micro Circuits is forecasting revenue to be flat with the first quarter. Analysts have Applied Micro Circuits weighing in
with revenue of $67 million.
Applied Micro Circuits also said it plans to cut its work force by about 5%. The move is designed to save the company about $1
million a quarter starting in the third quarter. The company said it expects a second-quarter charge of $2 million to $3 million due to
the restructuring.
Allan Mishan, an analyst at CIBC World Markets, said Thursday that while he is encouraged that the company's new chief
executive, Kambiz Hooshmand, is focused on profitability, he cautioned that investors will want to see "more significant" revenue
growth out of the company. According to Mishan, Applied Micro Circuits' outlook for the second quarter is "disappointing."
Mishan added that the one positive from Applied Micro Circuits' earnings report was the disclosure that the company would cut its
work force by 5%. Mishan, who rates shares of Applied Micro Circuits at market weight, does not own the stock, although CIBC does
intend to seek an investment banking relationship with the company.
Jeremy Bunting, an analyst at Thomas Weisel Partners, said in a research report that Applied Micro Circuits has put into place a
new senior management team with an "impressive pedigree." He said that with a new management team in place, Applied Micro
Circuits has to demonstrate to investors it can execute on its strategy.
"We believe that the company has good potential," said Bunting, who rates Applied Micro Circuits stock at peer perform. Bunting
does not own shares of Applied Micro Circuits, but Thomas Weisel does intend to seek an investment banking relationship with the
company.
Officials at Applied Micro Circuits weren't immediately available to comment.
-By Donna Fuscaldo, Dow Jones Newswires; 704-371-4263; donna.fuscaldo@dowjones.com
(END) Dow Jones Newswires
July 28, 2005 11:32 ET (15:32 GMT) |
