Attached files
| file | filename |
|---|---|
| 8-K - 8-K - APPLIED MICRO CIRCUITS CORP | earningsreleaseq115.htm |
| EX-99.2 - EXHIBIT 99.2 - APPLIED MICRO CIRCUITS CORP | exhibit992transcriptofconf.htm |
Exhibit 99.1
Press Release
Applied Micro Circuits Corporation Reports First Quarter Fiscal 2015 Financial Results
SUNNYVALE, Calif., July 29, 2014 (GLOBE NEWSWIRE) - Applied Micro Circuits Corporation (Nasdaq: AMCC) (“AppliedMicro”) today reported its financial results for the first quarter of fiscal 2015, ended June 30, 2014.
• | Consolidated net revenue of $50.3 million |
• | GAAP net loss of $13.1 million or $0.17 per share |
• | Non-GAAP net income of $0.2 million or $0.00 earnings per share |
Commenting on AppliedMicro’s first quarter operations, Dr. Paramesh Gopi, President and Chief Executive Officer, said, “We are very pleased to report that we have shipped initial production X-Gene™ units. Purchase orders continue to grow and backlog is building. The creation of the ARM 64-bit based server category is underway.” Dr. Gopi continued, “We experienced strong demand for our connectivity products while we saw a sharp decline in legacy PowerPC embedded products. The contributions of the base business continue to support our growth initiatives.”
AppliedMicro provides non-GAAP results as additional information relating to its financial condition and business trends. This information should be considered in conjunction with corresponding GAAP measures. A reconciliation between GAAP and non-GAAP financial results is provided in the financial tables section of this press release.
Conference Call and Webcast
Management will host a conference call and simultaneous webcast to discuss first quarter results and business and financial outlook today, July 29, 2014, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time.
DAIL-IN: | (877) 280-4960 | |
(857) 244-7317 | ||
PASSCODE: | 83482949 | |
WEBCAST: | Investor Relations section of the Company’s website at www.apm.com | |
A replay of the call will be available starting around 6:00 p.m. Pacific Time / 9:00 p.m. Eastern Time and can be accessed by dialing 888-286-8010 or 617-801-6888 and using the access code 99777506. The replay will be available through August 5, 2014.
About AppliedMicro
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.
(C) Copyright 2014, Applied Micro Circuits Corporation. AppliedMicro, X-Gene, X-Weave, Server on a Chip, and Cloud Server are trademarks or registered trademarks of Applied Micro Circuits Corporation. All other product or service names are the property of their respective owners.
Forward-Looking Statements
This press release contains forward-looking statements that reflect the Company's current views and expectations with respect to future events and financial performance, including statements regarding the Company's strategic focus; product cycles; new product development, commercialization and customer acceptance; the development of the X-Gene™ ecosystem; the anticipated performance of the Company’s base business; and future revenues, expenses and liquidity. 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, successful and timely development of products, an evolving competitive landscape, rapid technological change, increased supplier lead times and other supply chain constraints, the businesses and budgeting decisions of the Company's major customers, reductions, rescheduling or cancellation of orders by the Company's customers, successful management of key service providers and recently acquired businesses, market acceptance of new products, legal and regulatory developments, 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, 2014, 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.
CONTACT:
Investor Relations Contact:
Traci Tsuchiguchi
Phone: (408) 542-8353
E-Mail: ttsuchiguchi@apm.com
Media Contact:
Mike Major
Phone: (408) 542-8831
E-mail: mmajor@apm.com
APPLIED MICRO CIRCUITS CORPORATION | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
June 30, 2014 | March 31, 2014 | |||||||
ASSETS: | ||||||||
Current assets: | ||||||||
Cash, cash equivalents and short-term investments | $ | 98,610 | $ | $ | 106,583 | |||
Accounts receivable, net | 22,932 | 25,178 | ||||||
Inventories | 20,673 | 18,946 | ||||||
Other current assets | 12,272 | 16,799 | ||||||
Total current assets | 154,487 | 167,506 | ||||||
Property and equipment, net | 20,303 | 20,746 | ||||||
Goodwill | 11,425 | 11,425 | ||||||
Purchased intangibles, net | 42 | 105 | ||||||
Other assets | 6,935 | 7,754 | ||||||
Total assets | $ | 193,192 | $ | 207,536 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 17,233 | $ | $ | 26,194 | |||
Other current liabilities | 29,131 | 28,961 | ||||||
Total current liabilities | 46,364 | 55,155 | ||||||
Non-current liabilities: | ||||||||
Veloce accrued liability | 4,399 | 3,145 | ||||||
Stockholders' equity | 142,429 | 149,236 | ||||||
Total liabilities and stockholders' equity | $ | 193,192 | $ | 207,536 | ||||
APPLIED MICRO CIRCUITS CORPORATION | |||||||||||
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(in thousands, except per share data) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended | |||||||||||
June 30, 2014 | March 31, 2014 | June 30, 2013 | |||||||||
Net revenues | $ | 50,272 | $ | 51,771 | $ | 54,148 | |||||
Cost of revenues | 20,257 | 19,806 | 22,342 | ||||||||
Gross profit | 30,015 | 31,965 | 31,806 | ||||||||
Operating expenses: | |||||||||||
Research and development | 33,205 | 25,653 | 34,506 | ||||||||
Selling, general and administrative | 9,058 | 9,325 | 9,526 | ||||||||
Amortization of purchased intangible assets | 62 | 62 | 130 | ||||||||
Restructuring charges | 1,211 | 4 | 93 | ||||||||
Gain on sale of building | — | (25,815 | ) | — | |||||||
Gain on sale of T-Pack | — | — | (19,699 | ) | |||||||
Total operating expenses | 43,536 | 9,229 | 24,556 | ||||||||
Operating (loss) income | (13,521 | ) | 22,736 | 7,250 | |||||||
Interest and other income, net | 315 | 418 | 3,795 | ||||||||
(Loss) income before income taxes | (13,206 | ) | 23,154 | 11,045 | |||||||
Income tax (benefit) expense | (141 | ) | 38 | 188 | |||||||
Net (loss) income | $ | (13,065 | ) | $ | 23,116 | $ | 10,857 | ||||
Basic net (loss) income per share: | $ | (0.17 | ) | $ | 0.31 | $ | 0.16 | ||||
Shares used in calculating basic net (loss) income per share | 77,916 | 75,629 | 69,360 | ||||||||
Diluted (loss) income per share: | $ | (0.17 | ) | $ | 0.30 | $ | 0.15 | ||||
Shares used in calculating diluted net (loss) income per share | 77,916 | 77,193 | 70,234 | ||||||||
APPLIED MICRO CIRCUITS CORPORATION | |||||||||||
RECONCILIATION OF GAAP NET (LOSS) INCOME TO NON-GAAP NET INCOME | |||||||||||
(in thousands, except per share data) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended | |||||||||||
June 30, 2014 | March 31, 2014 | June 30, 2013 | |||||||||
GAAP net (loss) income | $ | (13,065 | ) | $ | 23,116 | $ | 10,857 | ||||
Adjustments: | |||||||||||
Stock-based compensation charges | 5,216 | 3,591 | 3,714 | ||||||||
Amortization of purchased intangibles | 62 | 62 | 296 | ||||||||
Veloce acquisition consideration | 7,140 | — | 9,255 | ||||||||
Restructuring charges | 1,211 | 4 | 93 | ||||||||
Gain on sale of building | — | (25,815 | ) | — | |||||||
Gain on sale of TPack | — | — | (19,699 | ) | |||||||
Impairment of marketable securities | (18 | ) | (16 | ) | (3,019 | ) | |||||
Other and income tax adjustments | (391 | ) | (212 | ) | (62 | ) | |||||
Total GAAP to Non-GAAP adjustments | 13,220 | (22,386 | ) | (9,422 | ) | ||||||
Non-GAAP net income | $ | 155 | $ | 730 | $ | 1,435 | |||||
Diluted non-GAAP income per share | $ | 0.00 | $ | 0.01 | $ | 0.02 | |||||
Shares used in calculating diluted non-GAAP income per share | 79,082 | 77,193 | 70,234 | ||||||||
Net (loss) income per share: | |||||||||||
GAAP (loss) income per share | $ | (0.17 | ) | $ | 0.30 | $ | 0.15 | ||||
GAAP to non-GAAP adjustments | 0.17 | (0.29 | ) | (0.13 | ) | ||||||
Non-GAAP income per share | $ | 0.00 | $ | 0.01 | $ | 0.02 | |||||
Reconciliation of shares used in calculating non-GAAP income per share: | |||||||||||
Shares used in calculating the basic (loss) income per share | 77,916 | 75,629 | 69,360 | ||||||||
Adjustment for dilutive securities | 1,166 | 1,564 | 874 | ||||||||
Non-GAAP shares used in calculating diluted income per share | 79,082 | 77,193 | 70,234 | ||||||||
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 | |||||||||||
June 30, 2014 | March 31, 2014 | June 30, 2013 | |||||||||
GROSS PROFIT: | |||||||||||
GAAP gross profit | $ | 30,015 | $ | 31,965 | $ | 31,806 | |||||
Amortization of purchased intangibles | — | — | 166 | ||||||||
Stock-based compensation expense | 47 | 102 | 98 | ||||||||
Non-GAAP gross profit | $ | 30,062 | $ | 32,067 | $ | 32,070 | |||||
OPERATING EXPENSES: | |||||||||||
GAAP operating expenses | $ | 43,536 | $ | 9,229 | $ | 24,556 | |||||
Stock-based compensation expense | (5,169 | ) | (3,489 | ) | (3,616 | ) | |||||
Amortization of purchased intangibles | (62 | ) | (62 | ) | (130 | ) | |||||
Veloce acquisition consideration | (7,140 | ) | — | (9,255 | ) | ||||||
Gain on sale of building | — | 25,815 | — | ||||||||
Gain on sale of TPack | — | — | 19,699 | ||||||||
Restructuring charges | (1,211 | ) | (4 | ) | (93 | ) | |||||
Non-GAAP operating expenses | $ | 29,954 | $ | 31,489 | $ | 31,161 | |||||
INTEREST AND OTHER INCOME, NET AND OTHER-THAN-TEMPORARY IMPAIRMENT: | |||||||||||
GAAP interest and other income, net | $ | 315 | $ | 418 | $ | 3,795 | |||||
Other-than-temporary investment impairment | (18 | ) | (16 | ) | (3,019 | ) | |||||
Non-GAAP interest and other income, net | $ | 297 | $ | 402 | $ | 776 | |||||
INCOME TAX EXPENSE (BENEFIT: | |||||||||||
GAAP income tax (benefit) expense | $ | (141 | ) | $ | 38 | $ | 188 | ||||
Income tax adjustments | 391 | 212 | 62 | ||||||||
Non-GAAP income tax expense | $ | 250 | $ | 250 | $ | 250 | |||||
RESEARCH AND DEVELOPMENT : | |||||||||||
GAAP research and development | $ | 33,205 | $ | 25,653 | $ | 34,506 | |||||
Stock-based compensation expense | (3,271 | ) | (1,503 | ) | (1,817 | ) | |||||
Veloce acquisition consideration | (7,140 | ) | — | (9,255 | ) | ||||||
Non-GAAP research and development | $ | 22,794 | $ | 24,150 | $ | 23,434 | |||||
SELLING, GENERAL AND ADMINISTRATIVE : | |||||||||||
GAAP selling, general and administrative | $ | 9,058 | $ | 9,325 | $ | 9,526 | |||||
Stock-based compensation expense | (1,898 | ) | (1,986 | ) | (1,799 | ) | |||||
Non-GAAP selling, general and administrative | $ | 7,160 | $ | 7,339 | $ | 7,727 | |||||
APPLIED MICRO CIRCUITS CORPORATION | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
Three Months Ended June 30, | |||||||
2014 | 2013 | ||||||
Operating activities: | |||||||
Net (loss) income | $ | (13,065 | ) | $ | 10,857 | ||
Adjustments to reconcile net (loss) income to net cash used for operating activities: | |||||||
Depreciation | 2,174 | 2,624 | |||||
Amortization of purchased intangibles | 62 | 296 | |||||
Stock-based compensation expense: | |||||||
Stock options | 417 | 602 | |||||
Restricted stock units | 4,799 | 3,112 | |||||
Veloce acquisition consideration | 7,140 | 9,255 | |||||
Tax effect on other comprehensive income | (194 | ) | — | ||||
Non-cash restructuring charges | — | 26 | |||||
Net gain on sale of TPack | — | (19,699 | ) | ||||
Net loss (gain) on disposals of property, equipment and other assets | 16 | (3 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 2,246 | (4,474 | ) | ||||
Inventories | (1,745 | ) | 185 | ||||
Other assets | 1,994 | 1,598 | |||||
Accounts payable | (6,163 | ) | (687 | ) | |||
Accrued payroll and other accrued liabilities | 1,663 | 4,149 | |||||
Veloce accrued liability | (6,383 | ) | (24,982 | ) | |||
Deferred revenue | 502 | (671 | ) | ||||
Net cash used for operating activities | (6,537 | ) | (17,812 | ) | |||
Investing activities: | |||||||
Proceeds from sales and maturities of short-term investments | 682 | 14,185 | |||||
Purchases of short-term investments | (1,320 | ) | (2,361 | ) | |||
Proceeds from sale of TPack | 3,353 | 29,498 | |||||
Purchase of property, equipment and other assets | (4,544 | ) | (279 | ) | |||
Net cash (used for) provided by investing activities | (1,829 | ) | 41,043 | ||||
Financing activities: | |||||||
Proceeds from issuances of common stock | 106 | 171 | |||||
Funding of restricted stock units withheld for taxes | (924 | ) | (2,382 | ) | |||
Other | (88 | ) | (412 | ) | |||
Net cash provided by financing activities | (906 | ) | (2,623 | ) | |||
Net (decrease) increase in cash and cash equivalents | (9,272 | ) | 20,608 | ||||
Cash and cash equivalents at the beginning of the period | 71,539 | 19,065 | |||||
Cash and cash equivalents at the end of the period | $ | 62,267 | $ | 39,673 | |||