Applied Micro Circuits Corporation
) posted a non-GAAP net loss of $11.4 million in its first quarter
of fiscal 2013 (ending June 30, 2012), compared to a net income of
$0.6 million in the year-ago quarter and a net loss of $6.2 million
in the previous quarter. Loss per share came in at 18 cents
compared to earnings of 1 cent per share in the year-ago quarter
and a net loss of 10 cents per share in the previous quarter. The
loss reported was narrower than the Zacks Consensus Estimate of a
loss of 27 cents.
The GAAP net loss for the quarter amounted to $23.4 million or
37 cents per share versus a net loss of $6.9 million or 11 cents
per share in the year-earlier quarter and net loss of $67.6 million
or $1.10 per share in the previous quarter.
Net sales came in at $41.3 million, declining 32.1% from the
year-earlier quarter and 15.3% sequentially. This surpassed the
Zacks Consensus Estimate of $40 million.
The clouded fiscal scenario was largely responsible for
deteriorating the company's performances in the reported quarter.
However, a substantial progress in Applied Micro's product ranges
during the quarter helped somewhat to alleviate the company's
Gross margin came in at 55.6% compared to 46.6% in the last year
quarter and 57% in the fourth quarter of fiscal 2012.
Operating loss for the quarter came in at $25 million, rising
from an operating loss of $8.4 million in the previous year
Selling, general and administrative expenses in the quarter were
$12.5 million, down slightly by 0.7% year over year. Research and
development expenses amounted to $34.8 million, surging 22.6% 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 $96.1 million versus $113.8 million
at the end of the previous quarter. Inventories were $22.6 million
versus $23.2 million at the end of the fourth quarter of fiscal
2012. Accounts payable by the end of the quarter amounted to $13.7
million, declining from $21.4 million at the end of the previous
In the first quarter of fiscal 2013, net cash used for operating
activities was around $20.5 million compared to $4.2 million in the
Applied Micro shows determination as it looks ahead following an
acutely disappointing performance in the reported quarter brought
about largely by a clouded fiscal scenario in the economy. The
company still expects that the revenue will surge in the second
half of the fiscal 2013.
The company anticipates that for the second quarter of fiscal
2013, total revenue will improve by 8% -12% sequentially (mid-point
will be $45.5 million). The total gross margin is likely to be
approximately 57%, plus or minus half a point. Moreover, Applied
Micro expects that the interest income will be $0.7 million and tax
rate will be 3% in the second fiscal quarter of 2013.
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 wrestle
with very tough and progressive rivals in the semiconductor
industry. Big players here are
). The company currently does not appear to be in a good enough
position to battle these formidable competitors with its current
weakened quarterly outlook.
Applied Micro currently has a Zacks Rank# 3 which implies a
short-term (1-3 months) 'Hold' rating on the stock.
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