FANTASTIC
Applied Micro Circuits Corporation Reports First Quarter Fiscal 2001 Financial Results
Quarterly Revenues Up 30% Sequentially; Pro Forma Earnings Per Share $0.21
SAN DIEGO, July 12 /PRNewswire/ -- Applied Micro Circuits Corporation (Nasdaq: AMCC - news) today reported its financial results for the first quarter of fiscal 2001.
Net revenues for the first quarter of fiscal 2001 were $74.2 million, an increase of 134% over the $31.6 million reported in the same period of fiscal 2000. Pro forma net income for the first quarter of fiscal 2001 was $27.9 million or $0.21 per share, compared with pro forma net income of $6.8 million or $0.06 per share for the first quarter of fiscal 2000, representing increases of 310% and 250%, respectively.
Sequentially, net revenues for the first quarter of fiscal 2001 increased 30% over the $57.0 million reported in the previous quarter. Pro forma net income for the first quarter of fiscal 2001 increased 33% over the $21.0 million, or $0.16 per share, reported in the previous quarter.
During the first quarter of fiscal 2001, AMCC completed the acquisition of YuniNetworks, Inc. for a purchase price, including assumed liabilities, of approximately $220 million and took a one-time charge of $21.8 million, or approximately $0.16 per share, as a write-off of purchased in-process R&D. Additionally, AMCC completed the acquisitions of pBaud Logic, Inc. and Chameleon Technologies, which were also accounted for as purchases.
Pro forma net income excludes the effects of acquisition charges, payroll and other tax effects on certain stock option exercises, and stock compensation charges related to acquired companies. Including these charges, net income on a GAAP basis for the first quarter of fiscal 2001 was $3.4 million or $0.03 per share, compared with $6.8 million or $0.06 per share for the same period last fiscal year.
Commenting on the results, Dave Rickey, President and Chief Executive Officer of AMCC, said, ``We've experienced phenomenal revenue growth in the June quarter, and for the first time ever, we've achieved a 40% pro forma operating margin and $100 million in quarterly bookings.''
Rickey continued, ``The demand for our high-performance OC-192 solutions is very strong, and production revenue is materializing faster than we expected. In addition, our digital framer business continues to ramp. We have significantly expanded our digital design capabilities with the acquisitions of YuniNetworks, pBaud Logic and Chameleon Technologies.''
First Quarter Highlights
-- OC-192 standard product revenue increased from approximately
$300 thousand in the March quarter to $5.3 million in the June quarter.
-- Digital framer revenue increased from $3.3 million in the March quarter
to $8.8 million in the June quarter.
-- Introduced the Ganges, the industry's first OC-192/STM-64 framer device
to support both channelized and concatenated 10-Gigabit traffic.
-- Introduced a very short reach OC-192 solution, comprised of a quad
Vertical Cavity Surface Emitting Laser (or VCSEL) driver and a quad
transimpedance and limiting amplifier.
-- Introduced the S2080, the industry's first silicon germanium
differential crosspoint switch with over 100 Gbps of switching
capacity.
-- Expanded upon digital capabilities with acquisitions of YuniNetworks,
Inc., a San Diego-based fabless semiconductor company that specializes
in providing scalable terabit switch fabric technology; Chameleon
Technologies, Inc., an Irvine-based company that specializes in
high-speed digital design for communications protocols such as Fibre
Channel and SONET; and pBaud Logic, Inc., an Ottawa-based company that
specializes in SONET and FEC (forward error-correction) design.
AMCC Overview
AMCC designs, develops, manufactures, and markets high-performance, high-bandwidth silicon solutions for the world's optical networks. The Company utilizes a combination of high-frequency analog, mixed-signal and digital design expertise coupled with system-level knowledge and multiple silicon process technologies to offer integrated circuit products that enable the transport of voice and data over the fiber optics networks. AMCC's corporate headquarters and wafer fabrication facilities are located in San Diego. Sales and consulting engineering offices are located throughout the world. For further information regarding AMCC, please visit our Web site at amcc.com or call our shareholder information line at (888) 982-AMCC (2622).
For More Information
Management will be holding a conference call to discuss quarterly earnings at 2 PM PDT. You may access the conference call via a web broadcast on AMCC's Investor Information site at amcc.com.
This news release contains forward-looking statements, including statements regarding the Company's financial performance, that are subject to certain risks and uncertainties, including, but not limited to, those associated with customer demand for our products, internal and external manufacturing execution, concentration of revenues with major customers, and the businesses of the Company's major customers as well as the ``Risk Factors'' set forth in the Company's Annual Report on Form 10-K for the year ended March 31, 2000, and the Company's other filings with the Securities and Exchange Commission. Actual results could differ materially, as a result of such factors, from those set forth in the forward-looking statements.
-Financial Tables Follow-
APPLIED MICRO CIRCUITS CORPORATION
PRO FORMA CONSOLIDATED INCOME STATEMENTS
(Unaudited)
(in thousands, except per share data)
Three Months Ended
June 30, Mar 31, June 30,
2000 2000 1999
Net revenues $74,188 $57,049 $31,643
Cost of revenues 19,273 15,355 10,283
Gross profit 54,915 41,694 21,360
Operating expenses:
Research and development 14,542 10,788 6,354
Selling, general and
administrative 10,425 8,736 5,569
Total operating expenses 24,967 19,524 11,923
Operating income 29,948 22,170 9,437
Interest income, net 12,277 9,758 884
Income before income taxes 42,225 31,928 10,321
Provision for income taxes 14,356 10,914 3,535
Net income $27,869 $21,014 $6,786
Basic earnings per share:
Earnings per share $0.23 $0.18 $0.07
Weighted average shares 121,352 117,094 102,860
Diluted earnings per share:
Earnings per share $0.21 $0.16 $0.06
Weighted average shares 132,581 129,024 114,112
The above pro forma amounts for the quarter ended June 30, 2000 have been adjusted to eliminate the $21.8 million write-off of purchased in-process R&D, $388,000 of payroll tax on non-qualified stock option exercises, $2.3 million of amortization of goodwill and purchased intangible assets, $134,000 of stock compensation charges related to acquired companies, and reflects a pro forma effective tax rate of 34%.
The above pro forma amounts for the quarter ended March 31, 2000 have been adjusted to eliminate $419,000 of payroll tax on non-qualified stock option exercises and $109,000 of stock compensation charges related to acquired companies. These pro forma results also reflect the impact of pro forma adjustments to the provision for income taxes.
APPLIED MICRO CIRCUITS CORPORATION
GAAP CONSOLIDATED INCOME STATEMENTS
(Unaudited)
(in thousands, except per share data)
Three Months Ended
June 30, Mar 31, June 30,
2000 2000 1999
Net revenues $74,188 $57,049 $31,643
Cost of revenues 19,314 15,400 10,283
Gross profit 54,874 41,649 21,360
Operating expenses:
Research and development 14,837 10,986 6,354
Selling, general and
administrative 10,611 9,021 5,569
Amortization of goodwill
and purchased intangibles 2,284 -- --
Purchased in-process
R&D charges 21,800 -- --
Total operating expenses 49,532 20,007 11,923
Operating income 5,342 21,642 9,437
Interest income, net 12,277 9,758 884
Income before income taxes 17,619 31,400 10,321
Provision for income taxes 14,224 10,770 3,535
Net income $3,395 $20,630 $ 6,786
Basic earnings per share:
Earnings per share $0.03 $0.18 $0.07
Weighted average shares 121,352 117,094 102,860
Diluted earnings per share:
Earnings per share $0.03 $0.16 $0.06
Weighted average shares 132,581 129,024 114,112
APPLIED MICRO CIRCUITS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
($ in thousands)
ASSETS June 30, March 31,
2000 2000
(unaudited)
Current assets:
Cash, cash equivalents
and short-term investments $974,067 $954,551
Accounts receivable, net 38,271 25,459
Inventories 11,092 10,925
Other current assets 16,537 14,469
Total current assets 1,039,967 1,005,404
Property and equipment, net 44,913 37,842
Other assets 3,626 3,636
Purchased intangibles 193,601 --
Total assets $1,282,107 $1,046,882
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $12,291 $ 8,818
Other current liabilities 27,334 16,842
Current portion of long-term
debt & capital leases 2,122 2,123
Total current liabilities 41,747 27,783
Long-term debt & capital leases,
less current portion 4,768 5,294
Stockholders' equity 1,235,592 1,013,805
Total liabilities and
stockholders' equity $1,282,107 $1,046,882
SOURCE: Applied Micro Circuits Corporation |
