AMCC Reports 3Q 36% Increase Y-Y
biz.yahoo.com
Thursday January 14, 4:07 pm Eastern Time
Company Press Release
Applied Micro Circuits Corp. Reports Third Quarter Fiscal 1999
Financial Results
SAN DIEGO--(BUSINESS WIRE)--Jan. 14, 1999--
Quarterly Revenues Up 36% Year-Over-Year
Quarterly Pre-Tax Income Up 111% Year-Over-Year
Quarterly Net Income Up 41% Year-Over-Year
Nine Month Revenues Up 37%
Nine Month Pre-Tax Income Up 122%
Nine Month Net Income Up 47%
Applied Micro Circuits Corp. (AMCC) (Nasdaq:AMCC - news) Thursday reported its financial results for the third quarter ended Dec. 31, 1998.
Net revenues in the third quarter of fiscal 1999 were $26.7 million, an increase of 36% over the $19.7 million reported in the third quarter of fiscal 1998. Pre-tax income for the third quarter of fiscal 1999 was $8.7 million, an increase of 111% over the $4.1 million reported in the third quarter of fiscal 1998.
Net income for the third quarter of fiscal 1999 was $5.6 million, or $0.23 per share, compared with $4.0 million, or $0.20 per share for the corresponding quarter of fiscal 1998. The net income and earning per share numbers reflect an increase in fiscal 1999 of AMCC's effective tax rate to approximately 35% from fiscal 1998's rate of 3%.
Additionally, these earnings per share numbers, which represent diluted earnings per share, reflect the weighted average increase in shares associated with the company's public offerings in the second half of fiscal 1998.
Sequentially, net revenues for the third quarter of fiscal 1999 increased 6.2% over the $25.1 million reported in the second
quarter of fiscal 1999. Net income for the third quarter was up 15% from $4.9 million, or $0.20 per share, in the second quarter of fiscal 1999.
For the nine-month period ended Dec. 31, 1998, net revenues were $75.4 million, an increase of 37% over the $54.9 million reported for the corresponding period of the prior fiscal year.
Pre-tax income for the first nine months of fiscal year 1999 was $22.6 million, an increase of 122% over the $10.2 million reported in the first nine months of the prior fiscal year. Net income for the first nine months of fiscal 1999 was $14.6 million, or $0.59 per share, compared with $9.9 million, or $0.51 per share, in the first nine months of the prior fiscal year.
Commenting on the results, Dave Rickey, president and chief executive officer of AMCC, said: ''We achieved a 65% gross margin this quarter. We are pleased with the number of new products we introduced, including additions to our already successful family of OC-48 SONET products.
''The most notable was our introduction of the S3045, a CMOS SONET/SDH section terminator transceiver used for integrating four STS-12/STM-4 data streams into a single STS-48/STM-16 data stream. The S3045 is yet another new AMCC product that maximizes speed and minimizes power consumption by utilizing low cost, high performance CMOS process technology.
''Our customers are pleased with our digital and mixed-signal CMOS solutions because they deliver high performance, in addition to providing superior cost and integration benefits. Our customers also continue to convey their enthusiasm for our silicon process technology strategy that encompasses CMOS, Bipolar and Silicon Germanium. We continue to build momentum in design wins for our communications products.
''We continue to move forward with product development incorporating Silicon Germanium (SiGe) process technology.''
Rickey continued, ''We introduced the first of our HDTV products this past quarter. These HD-SDI 1.5 Gbps data retimer and TX/RX IC chips for studio broadcast video HDTV equipment are being well received.''
Third-Quarter Highlights
-- Selected by Juniper Networks to provide eight of AMCC's telecom
and datacom interconnect ICs for use in Juniper's M40 Internet
backbone router.
-- Introduced the S2070/S2075, a CMOS Fibre Channel transceiver with
bit stream monitoring and repeating functions.
-- Introduced the S3045, a CMOS SONET/SDH section terminator
transceiver used for integrating four STS-12/STM-4 data streams
into a single STS-48/STM-16 data stream.
-- Introduced the S3047, a SONET/SDH/ATM OC-48 clock and data
recovery device capable of operating without an external
reference clock.
-- Introduced the S3050, a multirate integrated clock and data
recovery device capable of supporting OC-3, OC-12, Gigabit
Ethernet and OC-48 frequencies.
-- Introduced a new line of HDTV products including the S8301, a
High Definition Serial Digital Interface (HD-SDI) retimer
circuit; and the S8401/S8501, an HD-SDI transmitter/receiver
chipset for studio digital signal transmission.
-- Continued SiGe product development with IBM.
AMCC's Market Opportunity
''We are executing on our vision to be the premier supplier of high-bandwidth silicon connectivity for the world's communications infrastructure,'' said Rickey. ''We believe demand for our communications standard products continues to grow as the need for bandwidth expands, due to the increasing demand for Internet access and high-bandwidth LAN/WAN data and video transmission.''
AMCC is focused on the fiber optics-based, high performance communications market that is being driven by increasing demand for greater bandwidth to accommodate growth in the Internet, the World Wide Web, and cellular and facsimile communications, as well as applications such as remote network access, video conferencing and higher speed, data-intensive communication between local area networks.
The company's products serve these Wide Area Network (WAN) and Local Area Network (LAN) applications. For telecommunications markets, the company's products address the SONET/SDH and ATM transmission standards, and for data communications markets, the company offers products that address the Gigabit Ethernet, ATM and Fibre Channel
transmission standards.
AMCC's Technology Strategy
The company uses its internal bipolar and BiCMOS manufacturing processes together with advanced CMOS processes from external foundries to provide cost-effective solutions to its customers. Additionally, the company has commenced designing products using an advanced silicon germanium process.
These multiple silicon process technologies, combined with the company's extensive mixed-signal design capability and its systems expertise, provide the core capabilities that the company believes give it a competitive edge in servicing the high-performance communications market. |
