SUNNYVALE, Calif., April 25, 2013 (GLOBE NEWSWIRE) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) ("AppliedMicro" or the "Company") today reported its financial results for the fourth quarter of fiscal 2013, ended March 31, 2013.
-
Q4 FY2013 net revenues were $56.3 million, up 9.0% sequentially and 15.5% year over year.
-
Q4 FY2013 non-GAAP EPS was $0.00 per diluted share on net income of $0.1 million, compared to $(0.10) per share on a net loss of $6.9 million, for the third quarter of fiscal 2013.
-
Q4 FY2013 GAAP net loss was $30.2 million or $(0.45) per share, compared to net loss of $71.6 million or $(1.08) per share for the third quarter of fiscal 2013.
-
Total Cash, cash equivalents and short-term investments was approximately $85.5 million as of March 31, 2013, compared to $84.2 million as of December 31, 2012.
-
On April 22, 2013, the Company completed the sale of the outstanding shares of TPack A/S and certain specified intellectual property (IP) assets owned by the Company related to TPack's business to Altera Corporation for a total purchase price of approximately $33.5 million, subject to adjustments. The Company retains a license to the TPack IP.
- In April, the Company announced a strategic cooperation initiative with Altera Corporation to jointly develop and market optimized solutions for data center applications.
-
The Company solidified its leadership in the cloud server market category by sampling its X-Gene™ Server on a Chip™ solution to customers and partners including HP, Dell, Red Hat and others. HP also announced that a Moonshot server featuring X-Gene is scheduled to be released in the second half of 2013.
Net revenues for the fourth quarter of fiscal 2013 were $56.3 million compared to $51.7 million in the third quarter of fiscal 2013, representing a sequential increase of 9.0% and an increase of 15.5% over the $48.8 million in net revenues reported in the fourth quarter of fiscal 2012. Revenues for the full fiscal year 2013 were $195.6 million compared to $230.9 million for fiscal year 2012, representing a 15.3% decrease.
The net loss on a generally accepted accounting principles (GAAP) basis for the fourth quarter of fiscal 2013 was $30.2 million or $(0.45) per share. The fourth quarter GAAP net loss compares with a net loss of $71.6 million or $(1.08) per share for the third quarter of fiscal 2013 and a net loss of $67.6 million or $(1.10) per share for the fourth quarter of fiscal 2012. For the full fiscal year 2013, GAAP net loss was $146.8 million or $(2.25) per share compared to a net loss of $82.7 million or $(1.33) per share for the full fiscal year 2012.
Non-GAAP income for the fourth quarter of fiscal 2013 was $0.1 million or $0.00 per diluted share, compared to non-GAAP loss of $6.9 million or $(0.10) per share in the third quarter of fiscal 2013 and non-GAAP net loss of $6.2 million or $(0.10) per share for the fourth quarter of fiscal 2012. For the full fiscal year 2013, non-GAAP net loss was $28.8 million or $(0.44) per share compared to net loss of $5.6 million or $(0.09) per share for fiscal year 2012.
"We fortified our financial position by achieving cash flow neutrality and substantiated our market category leadership in the ARM cloud server space by sampling X-Gene server platforms to our key customers," said Dr. Paramesh Gopi, President and Chief Executive Officer.
Bob Gargus, Chief Financial Officer, commented, "We met our goal of delivering non-GAAP break-even results. Development progress and initial customer reaction are better than expected. This positions us well to take advantage of the growth we anticipate in the future".
AppliedMicro reports its financial results in accordance with GAAP and also provides additional financial data that have not been prepared in accordance with GAAP. The non-GAAP results and other financial measures reported by the Company exclude certain items that are required by GAAP, such as restructuring charges, amortization of purchased intangibles, Veloce acquisition consideration, stock-based compensation charges, other-than-temporary impairment on investments, impairment of notes receivable and other assets, one-time acquisition related recoveries, sale of equipment and other assets, warrant expense, payroll taxes on certain stock option exercises and non-cash tax adjustments. Income taxes are adjusted to an estimated non-GAAP effective tax rate. These non-GAAP measures are not a substitute for GAAP measures and may not be consistent with the presentation used by other companies. The Company uses the non-GAAP financial measures to evaluate and manage its operations. The Company is providing this information to allow investors to perform additional financial analysis and because it is consistent with the financial models and estimates published by analysts who follow the Company. The attached schedule reconciles non-GAAP results and other financial measures reported by the Company with the most directly comparable GAAP financial measures.
AppliedMicro management will be holding a conference call today, April 25, 2013 at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss additional details regarding the Company's performance for the fourth quarter of fiscal 2013 and to provide guidance for the first quarter of fiscal 2014. You may access the conference call via any of the following:
Teleconference: 800-884-5695 Conference ID: 67598661 Web Broadcast: http://www.apm.com Replay: 888-286-8010 (access code: 65095963, available through May 9, 2013)
AppliedMicro Overview
Applied Micro Circuits Corporation is a global leader in computing and connectivity solutions for next-generation cloud infrastructure and data centers. AppliedMicro delivers silicon solutions that dramatically lower total cost of ownership. Corporate headquarters are located in Sunnyvale, California. www.apm.com.
Applied Micro Circuits Corporation, AppliedMicro, the AppliedMicro logo, X-Gene and Server on a Chip are trademarks or registered trademarks of Applied Micro Circuits Corporation. All other product or service names are the property of their respective owners.
This news release contains forward-looking statements that reflect the Company's current view with respect to future events and financial performance, including statements regarding the chip performance of the 40nm and 28nm ARM® 64-Bit X Gene™ Server on a Chip™ products, the TAM for such products, the estimated range and timing of payments for the Veloce acquisition, product development cycles and schedules, design-win pipeline, strategic focus and future revenues. These forward-looking statements are only predictions based on current information and expectations and are subject to certain risks and uncertainties, including, but not limited to, customer demand for the Company's products, increased supplier lead times and other supply chain constraints, the businesses of the Company's major customers, reductions, rescheduling or cancellation of orders by the Company's customers, successful and timely development of products, successful integration and management of recently acquired businesses, market acceptance of new products, and general economic conditions. More information about potential factors that could affect the Company's business and financial results is included in the "Risk Factors" set forth in the Company's Annual Report on Form 10-K for the year ended March 31, 2012, and the Company's other filings with the Securities and Exchange Commission. Actual results could differ materially, as a result of such factors, from those set forth in the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the issuance of this press release.
-Financial Tables Follow-
| APPLIED MICRO CIRCUITS CORPORATION | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (in thousands) | ||
| (unaudited) | ||
| March 31, | March 31, | |
| ASSETS | 2013 | 2012 |
| Current assets: | ||
| Cash, cash equivalents and short-term investments | $85,476 | $113,846 |
| Accounts receivable, net | 24,575 | 22,666 |
| Inventories | 12,900 | 23,244 |
| Other current assets | 17,998 | 31,105 |
| Total current assets | 140,949 | 190,861 |
| Property and equipment, net | 34,391 | 38,100 |
| Goodwill | 13,183 | 13,183 |
| Purchased intangibles, net | 11,991 | 16,634 |
| Other assets | 10,866 | 10,274 |
| Total assets | $211,380 | $269,052 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $17,650 | $21,383 |
| Other current liabilities | 96,439 | 50,903 |
| Total current liabilities | 114,089 | 72,286 |
| Non-current liability: | ||
| Other long-term liabilities | 28,429 | 27,530 |
| Stockholders' equity | 68,862 | 169,236 |
| Total liabilities and stockholders' equity | $211,380 | $269,052 |
| APPLIED MICRO CIRCUITS CORPORATION | |||||
| GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
| (in thousands, except per share data) | |||||
| (unaudited) | |||||
| Three Months Ended | Year Ended | ||||
| March 31, | December 31, | March 31, | March 31, | March 31, | |
| 2013 | 2012 | 2012 | 2013 | 2012 | |
| Net revenues | $56,326 | $51,698 | $48,767 | $195,642 | $230,887 |
| Cost of revenues | 21,174 | 22,958 | 20,974 | 83,048 | 98,804 |
| Gross profit | 35,152 | 28,740 | 27,793 | 112,594 | 132,083 |
| Operating expenses: | |||||
| Research and development | 48,196 | 82,711 | 89,400 | 200,061 | 175,656 |
| Selling, general and administrative | 13,008 | 12,675 | 12,891 | 51,684 | 45,794 |
| Amortization of purchased intangible assets | 337 | 338 | 650 | 1,926 | 3,202 |
| Restructuring charges, net | 217 | 6,218 | -- | 6,435 | 875 |
| Total operating expenses | 61,758 | 101,942 | 102,941 | 260,106 | 225,527 |
| Operating loss | (26,606) | (73,202) | (75,148) | (147,512) | (93,444) |
| Interest and other income (expense), net and other-than-temporary impairment | (4,654) | 2,258 | 7,897 | 201 | 11,684 |
| Loss before income taxes | (31,260) | (70,944) | (67,251) | (147,311) | (81,760) |
| Income tax (benefit) expense | (1,012) | 618 | 331 | (554) | 928 |
| Net loss | $(30,248) | $(71,562) | $(67,582) | $(146,757) | $(82,688) |
| Basic and diluted net loss per share: | |||||
| Net loss per share | $(0.45) | $(1.08) | $(1.10) | $(2.25) | $(1.33) |
| Shares used in calculating basic and diluted net loss per share | 67,566 | 66,113 | 61,587 | 65,258 | 62,245 |
| APPLIED MICRO CIRCUITS CORPORATION | |||||
| RECONCILIATION OF GAAP NET (LOSS) INCOME TO NON-GAAP NET (LOSS) INCOME | |||||
| (in thousands, except per share data) | |||||
| (unaudited) | |||||
| Three Months Ended | Year Ended | ||||
| March 31, | December 31, | March 31, | March 31, | March 31, | |
| 2013 | 2012 | 2012 | 2013 | 2012 | |
| GAAP net loss | $(30,248) | $(71,562) | $(67,582) | $(146,757) | $(82,688) |
| Adjustments: | |||||
| Stock-based compensation charges | 2,691 | 6,222 | 6,639 | 24,236 | 18,374 |
| Warrant expense | -- | -- | -- | 1,289 | -- |
| Amortization of purchased intangibles | 1,017 | 1,017 | 1,329 | 4,643 | 6,754 |
| Veloce acquisition consideration | 22,250 | 51,930 | 60,400 | 78,830 | 60,400 |
| Acquisition related recoveries | -- | -- | (265) | (133) | (2,532) |
| Restructuring charges, net | 217 | 6,218 | -- | 6,435 | 875 |
| Impairment of strategic investment | 2,250 | -- | 1,000 | 2,250 | 1,000 |
| Impairment of notes receivable and other assets | 1,800 | -- | -- | 1,800 | -- |
| Sale of equipment and other assets | -- | (1,299) | -- | (1,299) | -- |
| Other-than-temporary investment impairment | 1,121 | (270) | (77) | (412) | (743) |
| Realized gain on sale of strategic equity investment | -- | -- | (8,147) | -- | (8,147) |
| Income tax adjustments | (1,015) | 832 | 522 | 336 | 1,102 |
| Total GAAP to Non-GAAP adjustments | 30,331 | 64,650 | 61,401 | 117,975 | 77,083 |
| Non-GAAP net income (loss) | $83 | $(6,912) | $(6,181) | $(28,782) | $(5,605) |
| Diluted income (loss) per share | $0.00 | $(0.10) | $(0.10) | $(0.44) | $(0.09) |
| Shares used in calculating diluted income (loss) per share | 68,522 | 66,113 | 61,587 | 65,258 | 62,245 |
| Net income (loss) per share: | |||||
| GAAP loss per share | $(0.45) | $(1.08) | $(1.10) | $(2.25) | $(1.33) |
| GAAP to non-GAAP adjustments | 0.45 | 0.98 | 1.00 | 1.81 | 1.24 |
| Non-GAAP net income (loss) per share | $0.00 | $(0.10) | $(0.10) | $(0.44) | $(0.09) |
| Reconciliation of shares used in calculating non-GAAP income (loss) per share: | |||||
| Shares used in calculating the basic loss per share | 67,566 | 66,113 | 61,587 | 65,258 | 62,245 |
| Adjustment for dilutive securities | 956 | -- | -- | -- | -- |
| Shares used in calculating non-GAAP diluted income (loss) per share | 68,522 | 66,113 | 61,587 | 65,258 | 62,245 |
| APPLIED MICRO CIRCUITS CORPORATION | ||||||||||
| SCHEDULE OF SELECTED GAAP TO NON-GAAP ADJUSTMENTS | ||||||||||
| (in thousands) | ||||||||||
| (unaudited) | ||||||||||
| The following schedule reconciles selected line items from the GAAP basis statements of operations to the non-GAAP statements of operations: | ||||||||||
| Three Months Ended | Year Ended | |||||||||
| March 31, | December 31, | March 31, | March 31, | March 31, | ||||||
| 2013 | 2012 | 2012 | 2013 | 2012 | ||||||
| GROSS PROFIT: | ||||||||||
| GAAP gross profit | $35,152 | $28,740 | $27,793 | $112,594 | $132,083 | |||||
| Amortization of purchased intangibles | 680 | 679 | 679 | 2,717 | 3,552 | |||||
| Stock-based compensation expense | 95 | 158 | 140 | 692 | 432 | |||||
| Non-GAAP gross profit | $35,927 | $29,577 | $28,612 | $116,003 | $136,067 | |||||
| OPERATING EXPENSES: | ||||||||||
| GAAP operating expenses | $61,758 | $101,942 | $102,941 | $260,106 | $225,527 | |||||
| Stock-based compensation expense | (2,596) | (6,064) | (6,499) | (23,544) | (17,942) | |||||
| Warrant expense | -- | -- | -- | (1,289) | -- | |||||
| Amortization of purchased intangibles | (337) | (338) | (650) | (1,926) | (3,202) | |||||
| Acquisition related recoveries | -- | -- | 265 | 133 | 2,532 | |||||
| Veloce acquisition consideration | (22,250) | (51,930) | (60,400) | (78,830) | (60,400) | |||||
| Restructuring charges, net | (217) | (6,218) | -- | (6,435) | (875) | |||||
| Non-GAAP operating expenses | $36,358 | $37,392 | $35,657 | $148,215 | $145,640 | |||||
| INTEREST AND OTHER INCOME, NET AND OTHER-THAN-TEMPORARY IMPAIRMENT: | ||||||||||
| GAAP interest and other (loss) income | $(4,654) | $2,258 | $7,897 | $201 | $11,684 | |||||
| Realized gain on sale of strategic investment | -- | -- | (8,147) | -- | (8,147) | |||||
| Impairment of strategic investment | 2,250 | -- | 1,000 | 2,250 | 1,000 | |||||
| Sale of equipment and other assets | -- | (1,299) | -- | (1,299) | -- | |||||
| Impairment of notes receivable and other assets | 1,800 | -- | -- | 1,800 | -- | |||||
| Other-than-temporary investment impairment | 1,121 | (270) | (77) | (412) | (743) | |||||
| Non-GAAP interest and other income, net | $517 | $689 | $673 | $2,540 | $3,794 | |||||
| INCOME TAX EXPENSE (BENEFIT): | ||||||||||
| GAAP income tax expense | $(1,012) | $618 | $331 | $(554) | $928 | |||||
| Income tax adjustments | 1,015 | (832) | (522) | (336) | (1,102) | |||||
| Non-GAAP income tax expense (benefit) | $3 | $(214) | $(191) | $(890) | $(174) | |||||
| RESEARCH AND DEVELOPMENT : | ||||||||||
| GAAP research and development | $48,196 | $82,711 | $89,400 | $200,061 | $175,656 | |||||
| Stock-based compensation expense | (1,026) | (2,814) | (3,735) | (11,760) | (10,496) | |||||
| Warrant expense | -- | -- | -- | (1,289) | -- | |||||
| Veloce acquisition consideration | (22,250) | (51,930) | (60,400) | (78,830) | (60,400) | |||||
| Non-GAAP research and development | $24,920 | $27,967 | $25,265 | $108,182 | $104,760 | |||||
| SELLING, GENERAL AND ADMINISTRATIVE : | ||||||||||
| GAAP selling, general and administrative | $13,008 | $12,675 | $12,891 | $51,684 | $45,794 | |||||
| Stock-based compensation expense | (1,570) | (3,250) | (2,764) | (11,784) | (7,446) | |||||
| Acquisition related recoveries | -- | -- | 265 | 133 | 2,532 | |||||
| Non-GAAP selling, general and administrative | $11,438 | $9,425 | $10,392 | $40,033 | $40,880 | |||||
| APPLIED MICRO CIRCUITS CORPORATION | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (in thousands) | ||
| (unaudited) | ||
| Year Ended March 31, | ||
| 2013 | 2012 | |
| Operating activities: | ||
| Net loss | $ (146,757) | $ (82,688) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| Depreciation | 9,542 | 8,436 |
| Amortization of purchased intangibles | 4,643 | 6,754 |
| Stock-based compensation expense: | ||
| Stock options | 3,469 | 5,298 |
| Restricted stock units | 20,767 | 13,076 |
| Warrants | 1,289 | -- |
| Veloce accrued liability | 78,830 | 60,400 |
| Acquisition related adjustment | (133) | (2,532) |
| Net (gain) loss on disposals of property, equipment and other assets | (1,293) | 10 |
| Impairment (gain) on strategic investments, net | 2,250 | (7,147) |
| Tax effect on other comprehensive income | (989) | (123) |
| Restructuring charges-asset impairment | 4,719 | -- |
| Impairment of short term investments and marketable securities | 1,143 | -- |
| Impairment of notes receivable and other assets | 1,800 | -- |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (1,909) | (2,669) |
| Inventories | 10,344 | 3,317 |
| Other assets | (2,871) | (3,903) |
| Accounts payable | (622) | (4,451) |
| Accrued payroll and other liabilities | (82) | (2,860) |
| Veloce accrued liability | (16,537) | -- |
| Deferred revenue | (668) | (270) |
| Net cash used in operating activities | (33,065) | (9,352) |
| Investing activities: | ||
| Proceeds from sales and maturities of short-term investments | 42,164 | 101,222 |
| Purchases of short-term investments | (21,633) | (103,046) |
| Proceeds from sale of property, equipment and other assets | 1,800 | -- |
| Purchase of property, equipment and other assets | (9,045) | (13,264) |
| Proceeds from sale of strategic investment | 7,146 | -- |
| Purchase of strategic investment | (500) | (4,750) |
| Net cash provided by (used in) investing activities | 19,932 | (19,838) |
| Financing activities: | ||
| Proceeds from issuances of common stock | 8,873 | 6,736 |
| Funding of restricted stock units withheld for taxes | (3,121) | (2,864) |
| Repurchases of common stock | (653) | (20,852) |
| Funding of structured stock repurchase agreements | -- | (10,000) |
| Payment of contingent consideration | (485) | -- |
| Other | (481) | (167) |
| Net cash provided by (used in) financing activities | 4,133 | (27,147) |
| Net decrease in cash and cash equivalents | (9,000) | (56,337) |
| Cash and cash equivalents at the beginning of year | 28,065 | 84,402 |
| Cash and cash equivalents at the end of year | $ 19,065 | $ 28,065 |