Applied Micro Circuits Corporation
) reported a GAAP net loss of $71.6 million or $1.08 per share in
the third quarter of fiscal 2013 (ended Dec 31, 2012), compared
with a net loss of $7.1 million or 12 cents in the year-ago
quarter. Non-GAAP net loss for the quarter amounted to $6.9
million or 10 cents per share versus a net loss of $1.1 million
or 2 cents per share in the year-earlier quarter.
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Net sales came in at $51.7 million, declining 8.3% from the
year-earlier quarter. The year-over-year decrease was primarily
due to the continued challenging macroeconomic environment.
However, a substantial progress in Applied Micro's product range
during the reported quarter partially alleviated the company's
High operating expenses, driven by a nearly three-fold and
increase in research development expenditure, led to a
significantly high operating loss of $73.2 million in the quarter
compared with an operating loss of $7.8 million in the prior-year
period. However, this reaped some benefits for Applied Micro
through the successful introduction of new products in its
The company taped out 40nm ARM 64-Bit X-Gene server on a chip,
the highly correlated simulation results of which exceeded its
original expectations. Applied Micro expects the networking
performance of the chip to enable it to further penetrate into
Enterprise class solutions. Subsequent to the quarter-end, the
company also taped out a test chip for its upcoming 28nm product,
the results of which are awaited.
Applied Micro ended the quarter with cash and cash equivalents
and short-term investments of $84.2 million versus $113.8 million
at fiscal 2012 end.
Applied Micro shows determination as it looks ahead following an
acutely disappointing performance in the reported quarter brought
about largely by a clouded economic scenario. The company expects
to report break-even results on a non-GAAP basis in the fourth
quarter of fiscal 2013.
However, the company needs to be wary of other progressive rivals
in the industry such as
Advanced Semiconductor Engineering Inc.
Cabot Microelectronics Corporation
), each carrying a Zacks Rank #1 (Strong Buy). Applied Micro
currently has a Zacks Rank # 3 (Hold).