Leading semiconductor manufacturer
Applied Micro Circuits Corporation
) reported GAAP net loss of $30.2 million or 45 cents per share
in the fourth quarter of fiscal 2013 (ending Mar 31, 2013)
compared to a net loss of $67.6 million or $1.10 in the year-ago
quarter. Excluding non-recurring items, non-GAAP net income for
the quarter was $0.1 million or break even results versus a net
loss of $6.2 million or 10 cents per share in the year-earlier
quarter. The non-GAAP earnings were marginally ahead of the Zacks
Consensus Estimate of a loss of 1 cent.
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For fiscal 2013, Applied Micro reported GAAP net loss of $146.8
million or $2.25 per share compared to a net loss of $82.7
million or $1.33 in fiscal 2012. Excluding non-recurring items,
non-GAAP net loss for the reported fiscal was $28.8 million or 44
cents per share versus a net loss of $5.6 million or 9 cents per
share in the prior fiscal.
Net sales for the reported quarter came in at $56.3 million, up
15.5% from the year-earlier quarter. The year-over-year increase
was primarily due to the substantial progress in Applied Micro's
product range as it solidified its leadership position in the
cloud server market category.
For fiscal 2013, revenues were $195.6 million compared to $230.9
million in fiscal 2012, representing a 15.3% year-over-year
decrease. High operating expenses, driven by a significant
increase in research and development expenditure, led to an
operating loss of $147.5 million in the reported fiscal compared
to an operating loss of $93.4 million in fiscal 2012. However,
this was somewhat offset by the successful introduction of new
products in its portfolio.
Subsequent to the quarter-end, Applied Micro divested TPACK, its
wholly-owned subsidiary, to premier semiconductor manufacturer
) for an undisclosed amount. TPACK develops OTN (optical
transport network) solutions for packet and optical networking
Applied Micro has long-term business association with Altera
since 2007 relating to joint marketing and product development
initiatives. The divestiture further builds on their business
ties and leverages Altera's 2010 purchase of Avalon
Microelectronics, a leading OTN IP provider, to provide customers
with flexible, scalable solutions in a dynamic market
characterized by changing protocols and evolving standards. It
also strengthens Altera's position in the OTN equipment market
that is anticipated to reach $13 billion by 2017, according to
research firm Infonetics.
On the other hand, the divestiture by Applied Micro is likely to
increase its liquidity. Applied Micro ended fiscal 2013 with
cash, cash equivalents and short-term investments of $85.5
million versus $113.8 million in the year-ago period.
Applied Micro shows determination as it looks ahead following
break even results on a non-GAAP basis in the reported quarter.
The company anticipates continuing this momentum in the coming
quarters with sustained progress in new product developments and
increased market acceptance.
Applied Micro currently has a Zacks Rank # 3 (Hold). Other
players in the industry worth mentioning include
Freescale Semiconductor, Ltd.
Spreadtrum Communications Inc.
), each carrying a Zacks Rank #1 (Strong Buy).