Applied Micro Circuits Corporation
(
AMCC
) posted Non-GAAP net loss of $1.1 million in its third quarter of
fiscal 2012, compared to a net income of $6.8 million in the
previous year quarter and $1.1 million in the last quarter. Diluted
EPS came in at (2 cents) per share compared to 10 cents per share
in the year-ago quarter, beating the Zacks Consensus Estimate of
(10 cents) per share.
Revenues
Net sales came in at $56.3 million, down 9.6% year over year and
13.2% sequentially. This did not meet the Zacks Consensus Estimate
of $59 million but depicted that the company had been prescient
about this in its previously provided outlook during its earlier
quarter release.
Management averred its awareness of demand softness in the
quarter which continues to get onerous due to the clouded macro
environment. Recovery does not appear to be on the cards too soon
until such fiscal pressures mitigate.
Margins
Gross margin (excluding amortization and compensation expenses)
came in at 57.8% compared to 61.7% in the last year quarter and
57.3% in the previous quarter.
Operating loss for the quarter came in at $7.8 million,
plummeting the operating margin to (13.8%) from (7.1%) in the
previous year quarter and (3.2%) in the last fiscal quarter.
Balance Sheet and Cash Flows
Applied Micro ended the quarter with cash and cash equivalents
of $117.3 million compared to $113.7 million at the end of the
previous quarter. Inventories amounted to $17.6 million compared to
$18.7 million at the end of the second quarter of fiscal 2012.
For the first three quarters of fiscal 2012, net cash used for
operating activities were around $3 million and $11.9 million were
spent on capital expenditures.
Outlook
The first ever 65-Bit ARM Processor was launched during the
quarter, which is expected to prove momentous for the coming
quarters. Moreover, management declared that it has been making
advances on its system on chip (SOC) and other data center products
which are expected to ameliorate the future business scenario for
Applied Micro.
The formidable competitors for Applied Micro constitute some big
players such as
Entropic Communications, Inc.
(
ENTR
),
Cirrus Logic, Inc.
(
CRUS
) and
Cabot Microelectronics Corporat
(
CCMP
).
APPLD MICRO CIR (
AMCC
): Free Stock Analysis Report
CABOT MICROELEC (
CCMP
): Free Stock Analysis Report
CIRRUS LOGIC (
CRUS
): Free Stock Analysis Report
ENTROPIC COMMUN (
ENTR
): Free Stock Analysis Report
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