Applied Micro Disappoints in 4Q - Analyst Blog

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Applied Micro Circuits Corporation  ( AMCC ) posted a Non-GAAP net loss of $6.2 million in its fourth quarter of fiscal 2012, compared to a net income of $2.7 million in the previous year quarter and a net loss of $1.1 million in the last quarter. Loss per share came in at 10 cents compared to earnings of 4 cents per share in the year-ago quarter, beating the Zacks Consensus Estimate of a loss of 17 cents per share.

In fiscal 2012, loss per share came in at 9 cents compared to earnings of 42 cents in the previous fiscal year.

Revenues

Net sales came in at $48.8 million, down 16.8% year over year and 13.5% sequentially. This failed to meet the Zacks Consensus Estimate of $52 million.

The poor performance by the company in its final fiscal quarter of 2012 was of no surprise to management. Applied Micro was quite prescient of the clouded fiscal scenario which was largely responsible for deteriorating the company's performances in the economy.  However, a substantial degree of product innovations implemented during the quarter allayed fears for the company marginally.

In fiscal 2012, revenues came in at $230.9 million, representing a decline of about 7% from fiscal 2011.

Margins

Non-GAAP gross margin came in at 58.7% compared to 62.3% in the last year quarter and 59.1% in the previous quarter.

Non-GAAP operating loss for the quarter came in at $7.0 million, declining from an operating income of $1.5 million in the previous year quarter. As a result, operating margin abated to (14.4%) versus 2.6% in the previous year quarter and (3.6%) in the last fiscal quarter.

Balance Sheet and Cash Flows

Applied Micro ended the quarter with cash and cash equivalents of $113.8 million versus $117.3 million at the end of the previous quarter. Inventories increased to $23.2 million from $17.6 million at the end of the third quarter of fiscal 2012. Accounts payable by the end of the quarter amounted to $21.4 million, rising from $17.6 million at the end of the previous quarter.

In the full year fiscal 2012, net cash used for operating activities was around $9.4 million compared to net cash generated of $31 million at the end of fiscal 2011. Around $13.3 million was spent on capital expenditures during the quarter.

Outlook

Applied Micro has shown determination while looking ahead even with an acutely disappointing performance in its last quarter of fiscal 2012. For the upcoming quarters, the company hopes to surge high on the backs of its varied product launches and remains perspicacious of considerable demand recovery in the market.


 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

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