Applied Micro Circuits Corporation
) posted a net loss of $21.6 million or 33 cents per share in the
second quarter of fiscal 2013, compared to a net loss of $23.4
million or 37 cents per share in the first quarter and a net loss
of $1.1 million or 2 cents in the year-ago quarter or 2
Excluding one-time adjustments, net loss came in at 28 cents
per share, a penny narrower than the Zacks Consensus
Net sales came in at $46.3 million, declining 29% year over
year but up 12.0% sequentially and toward the high end of
management's expectations. Processor product revenues came in at
$23.8 million, up 6% sequentially.
On a geographic basis, Sales to North America accounted for
37% of total revenue. Sales to Europe accounted for 21% of total
sales while Asia contributed 42%.
Wintec, a global logistical support vendor, accounted for
approximately 20% of total revenue.
) accounted for 28% and Flextronics contributed
Gross margin came in at 55.6%, flat with the previous quarter
but down from 57.3% in the year-ago quarter as increase in gross
margin from the higher revenue was offset by additional
expenditures related to 64-bit ARM server on a chip platform
Operating loss for the quarter came in at $22.7 million versus
an operating loss of $24.9 million in the prior quarter and an
operating loss of $2.1 in the year-ago quarter.
Selling, general and administrative expenses in the quarter
were $12.5 million, up 51.3% year over year. Research and
development expenses amounted to $34.3 million, surging 16.1%
from the year-ago quarter.
Balance Sheet and Cash Flows
Applied Micro ended the quarter with cash and cash equivalents
and short-term investments of $89.7 million, down $96.1 million
at the end of the previous quarter. Inventories were $18.4
million versus $22.6 million at the end of the previous
In the second quarter of fiscal 2013, net cash used for
operating activities was around $7.7 million compared to $20.5
million in the previous quarter.
Applied Micro shows determination as it looks ahead after
posting disappointing performance in the last few quarters owing
to the clouded fiscal scenario in the economy. The company still
expects that the revenue will surge in the second half of the
The company anticipates total revenue to improve 8% -12%
sequentially in the third quarter of fiscal 2013. Gross margin is
likely to be approximately 57%, plus or minus half a point while
operating expenses are projected at 38%. Moreover, Applied Micro
expects that interest income will be $0.6 million and tax rate
will be 3% in the third fiscal quarter of 2013.
Meanwhile, Applied Micro is hopeful to achieve quarterly
revenues of $55 million to $60 million in the March
Headquartered in Sunnyvale, California, Applied Micro is a
leading provider of high-bandwidth low power integrated circuits
(ICs), which are essential for the processing, transporting and
storing of information. However, the company continues to fight
it out with the likes of
) in the semiconductor industry.
Applied Micro currently has a Zacks #3 Rank, which implies a
short-term (1-3 months) Hold rating on the stock. We
maintain a Neutral recommendation in the long run.
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