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(BSNS WIRE) Applied Micro Circuits Corp. Reports First-Quarter Fiscal 19
Applied Micro Circuits Corp. Reports First-Quarter Fiscal 1999 Financial
Results
Business Editors
SAN DIEGO--(BUSINESS WIRE)--July 15, 1998--
Quarterly Revenues up 39 Percent Year-over-Year; Quarterly
Pre-Tax Income up 105 Percent Year-over-Year; Quarterly After-Tax
Earnings up 35 Percent Year-over-Year
Applied Micro Circuits Corp. (AMCC) (NASDAQ:AMCC) Wednesday
reported its financial results for the first quarter ended June 30,
1998.
Net revenues in the first quarter of fiscal 1999 were
$23.7 million, an increase of 39 percent over the $17.1 million
reported in the first quarter of fiscal 1998. Pre-tax income for the
first quarter of fiscal 1999 was $6.3 million, an increase of 105
percent over the $3.1 million reported in the first quarter of fiscal
1998.
In fiscal 1999, AMCC's effective income-tax rate has increased to
36 percent from fiscal 1998's rate of 3 percent. As a result, net
income for the first quarter of fiscal 1999 was $4.1 million, or 17
cents per share, compared with $3 million, or 16 cents per share for
the corresponding quarter of fiscal 1998.
These earnings-per-share numbers, which represent diluted
earnings per share, reflect the weighted average increase in shares
associated with the company's recent public offerings.
Sequentially, net revenues for the first quarter of fiscal 1999
increased 9 percent over the $21.7 million reported in the fourth
quarter of fiscal 1998. Pre-tax income for the first quarter of fiscal
1999 increased 17 percent from the $5.4 million in the fourth quarter
of fiscal 1998.
As discussed above, AMCC's effective income-tax rate has
increased significantly in fiscal 1999, and as a result, net income
for the first quarter was down 23 percent from the $5.3 million, or
23 cents per share, in the fourth quarter of fiscal 1998.
Commenting on the results, Dave Rickey, president and chief
executive officer of AMCC, said: "I am particularly pleased with
AMCC's continued strong growth in the midst of a slump in much of the
semiconductor industry. In addition, our gross margins have surpassed
60 percent for the first time in the company's history.
"These first-quarter fiscal 1999 results validate our focus on
the high-growth communications markets. I am also excited about our
success in bringing both CMOS and bipolar silicon-process technologies
to bear in high-speed networks.
"During this quarter we introduced our first gigabit
multichannel CMOS transceivers operating at 1.30 Gbps for serial
backplane applications. Further, we have expanded our portfolio of
OC-48 2.5 Gbps SONET products applying AMCC's proven silicon process."
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First Quarter Highlights
- Achieved greater-than-60-percent gross margins for first time in
AMCC history.
- Acquired Ten Mountains Design, creating an AMCC Minneapolis
Design Center, while adding physical media device (PMD) analog-
design expertise to the company's capabilities.
- Introduced OC-48 SONET 16-Bit Transmitter/Receiver chip set.
- Commenced OC-48 SONET design wins, including early pre-production
orders at Ciena and Alcatel.
- S3030 STM-1/E-4, CMI Transceiver designs won at Lucent, Alcatel,
and Cisco.
- Introduced multichannel CMOS gigabit ICs for serial backplanes.
- Received a one-time $8.6 million order from Raytheon/Hughes for
ICs used in its high-speed radar systems. AMCC expects this order
to be shipped over the next 12-18 months. AMCC has received
strong indication from Raytheon/Hughes that a similar-sized
one-time order will be placed in the current quarter.
- AMCC continued to ramp and expand its fabrication facility.
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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.
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.
Forward Looking Statements
Except for historical information contained herein, the matters
set forth in this news release are forward-looking statements that are
subject to certain risks and uncertainties that could cause actual
results to differ materially from those set forth in the forward-
looking statements, including, but not limited to, such factors as the
rescheduling or cancellation of orders by customers; fluctuations in
the timing and amount of customer requests for product shipments;
fluctuations in manufacturing yields and inventory levels; changes in
the product mix; the company's ability to introduce new products and
technologies on a timely basis; the introduction of products and
technologies by the company's competitors; the availability of
external foundry capacity, purchased parts, and raw material;
competitive pressures on selling prices; the timing of investments in
research and development; market acceptance of the company's and its
customers' products; the timing of depreciation and other expenses to
be incurred by the company in connection with the expansion of its
existing manufacturing facility and in connection with its new
proposed facility; the timing and amount of recruiting and relocating
expenses, prototyping costs and promotional expenses; costs associated
with future litigation, if any, including without limitation,
litigation relating to the use or ownership of intellectual property;
costs associated with compliance with applicable environmental
regulations; general semiconductor-industry conditions; and general
economic conditions, including, but not limited to, economic
conditions in Asia and the risk factors that are detailed in the
company's Annual Report Form 10-K, for the year ended March 31, 1998,
and the company's other filings with the Securities and Exchange
Commission.
NOTE: For more information about AMCC, visit the company's Web site on
the Internet at amcc.com.
For more information on Applied Micro Circuits Corp. via facsimile at
no cost, simply call 800/PRO-INFO and dial client code AMCC.
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APPLIED MICRO CIRCUITS CORP.
CONSOLIDATED CONDENSED INCOME STATEMENTS
(Unaudited)
(in thousands, except per-share data)
Three Months Ended
June 30,
1998 1997
Net revenues $ 23,687 $ 17,053
Cost of revenues 9,399 8,156
Gross profit 14,288 8,897
Operating expenses:
Research and development 4,656 2,525
Selling, general and administrative 4,096 3,339
Total operating expenses 8,752 5,864
Operating income 5,536 3,033
Interest income, net 811 66
Income before income taxes 6,347 3,099
Provision for income taxes 2,285 81
Net Income $ 4,062 $ 3,018
Basic earnings per share:
Earnings per share 18 cents 17 cents
Weighted average shares 22,057 17,624
Diluted earnings per share:
Earnings per share 17 cents 16 cents
Weighted average shares 24,471 18,941
APPLIED MICRO CIRCUITS CORP.
CONSOLIDATED CONDENSED BALANCE SHEETS
($ in thousands)
June 30, March 31,
1998 1998
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $ 68,635 $ 67,896
Accounts receivable, net 12,026 12,179
Inventories 8,845 8,185
Other current assets 6,635 6,266
Total current assets 96,141 94,526
Property and equipment, net 18,834 17,218
Other assets 186 1,090
Total assets $115,161 $112,834
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,773 $ 5,215
Other current liabilities 8,195 9,274
Current portion of long-term debt 671 567
Current portion of capital lease obligations 1,258 2,053
Total current liabilities 13,897 17,109
Long-term debt, less current portion 3,026 2,736
Long-term capital lease obligations, less
current portion 1,139 1,355
Stockholders' equity 97,099 91,634
Total liabilities and stockholders' equity $115,161 $112,834
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CONTACT: Applied Micro Circuits Corp.
Joel O. Holliday, 619/450-9333
or
Financial Relations Board
Fiona Ross/George Christy, 310/442-0599 (general info.)
James Hoyne, 310/442-0599 (investor/analyst)
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS TELECOMMUNICATIONS COMED
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