Applied Micro Circuits Corporation
) reported first-quarter fiscal 2015 non-GAAP net income (excluding
non-recurring items) of $0.2 million or breakeven results on a per
share basis versus $1.4 million or 2 cents per share in the
year-ago period. The disappointing results tanked the shares 9.93%
to close on $8.71 yesterday.
On a GAAP basis, Applied Micro reported a net loss of $13.1 million
or loss of 17 cents per share compared to a net income of $10.9
million or 15 cents per share in the year-ago quarter. The
year-over-year decrease in net income was driven by higher
Net revenues for the first quarter of fiscal 2015 were $50.3
million versus $54.1 million in the year-ago quarter. Net sales for
the reported quarter missed the Zacks Consensus Estimate of $52.0
Revenues from the computing business grossed $18.9 million in the
quarter, while the connectivity business generated $31.4 million.
Geographically, sales to Asia accounted for approximately 52% of
total revenue, followed by North America (38%) and Europe (10%).
Operating expenses for the reported quarter increased to $43.5
million from $24.6 million in the year-ago quarter. Selling,
general and administrative expenses were $9.1 million versus $9.5
in the year-ago quarter. R&D expenses were $33.2 million in
first-quarter fiscal 2015 versus $34.5 million in the prior-year
At quarter end, Applied Micro had cash, cash equivalents and
short-term investments of $98.6 million compared with $106.6
million at Mar 31 2013. Net cash used in operating activities was
$6.5 million versus $17.8 million in the prior-year period.
Applied Micro expects to continue its healthy revenue momentum with
new product introductions in the coming quarters. The company
expects embedded computer products to generate healthy revenue
growth in the forthcoming quarters driven by X-Gene based embedded
For second-quarter fiscal 2015, total revenue is expected in the
range of $42 million to $46 million. Non-GAAP operating expenses
are expected within $28.0 million and $30.0 million.
Applied Metro currently has a Zacks Rank #3 (Hold). Other stocks
that look promising in the industry include Avago Technologies
), NVE Corp. (
) and Semiconductor Manufacturing International Corp. (
), each carrying a Zacks Rank #1 (Strong Buy )
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