Applied Micro, Inc.
) recently slashed its guidance for the fourth quarter of fiscal
Applied Micro now expects that the revenue in the fourth fiscal
quarter of 2012 will come in 6% lower than the mid-point guidance
of $52 million, provided earlier.
The new guidance was down $3.1 million, driven by softness in
both the Transport and Processor product families. The revenue
shortfall was primarily attributed to softness in the service
provider space and overall weakness in wire line market.
Nevertheless, OTN revenue and sequential ramp came through as the
company expected and did not account for any of the shortfall in
Applied Micro continues to expect earnings per share between
($0.10) and ($0.12) per share.
Earnings estimates have declined considerably in the last sixty
days after disappointing results for the third quarter of fiscal
Although earnings of ($0.10) were in-line with the Zacks
Consensus Estimate, sales continue to be weak. Net sales came in at
$56.3 million, down 9.6% year over year and 13.2% sequentially,
failing to meet the Zacks Consensus Estimate of $59 million.
Headquartered in Sunnyvale, California, Applied Micro Circuits
Corporation is a leading provider of high-bandwidth low power
integrated circuits (ICs), which are essential for the processing,
transporting and storing of information.
We expect a further decline in estimates with the cut in
guidance by the management. Judging by the weakened macro
conditions and weak outlook of AMCC, we think it wise to retain our
sideline view on the company's stock, thereby maintaining our
Our Neutral rating is supported by Zacks #3 Rank, which
translates into a short-term rating of Hold.
APPLD MICRO CIR (
): Free Stock Analysis Report
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