Applied Micro Circuits Corporation Reports Fourth Quarter Fiscal 2015 Financial Results
April 28 2015 - 4:16PM
Applied Micro Circuits Corporation (Nasdaq:AMCC) ("AppliedMicro")
today reported its financial results for the fiscal fourth quarter
and full year ended March 31, 2015.
Fiscal Q4 2015 Financial Information
- Consolidated net revenue of $37.0 million
- GAAP net loss of $15.1 million or $0.19 per share
- Non-GAAP net loss of $5.8 million or $0.07 per share
- Total cash, cash equivalents and short-term investments of
approximately $75.4 million as of March 31, 2015
Commenting on AppliedMicro's fourth quarter and fiscal 2015 full
year operations, Dr. Paramesh Gopi, President and Chief Executive
Officer, said, "We concluded fiscal 2015 on a high note, having
achieved a number of significant milestones, including fourth
quarter financial results above the mid-point of our guidance
range; stability in our base business; increased momentum with our
HeliX® family of embedded processors; and the realization of our
goal to ship 10,000 X-Gene® units."
"As we look ahead to fiscal 2016, we see our base business on
solid footing and are excited about design win traction with both
our HeliX and X-Weave® product lines. Moreover, we are pleased with
the growing end-customer adoption of our X-Gene product family as
validated by our expanding pipeline of new design wins," concluded
Dr. Gopi.
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 fourth quarter and full year fiscal 2015 results and
business and financial outlook today, April 28, 2015, at 2:00 p.m.
Pacific Time / 5:00 p.m. Eastern Time.
DIAL-IN: |
(855) 777-0852 |
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(631) 485-4854 |
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PASSCODE: |
21955585 |
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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 855-859-2056 or 404-537-3406 and using the access code
21955585. The replay will be available through May 5,
2015.
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 2015, Applied Micro Circuits Corporation.
AppliedMicro, X-Gene, X-Weave, HeliX, Server on a Chip, Cloud
Processor 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 included the expected duration of
weakness in service provider order patterns; 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, and do
not take into account any restructuring or related activities that
the Company may undertake. 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, its
Quarterly Report on Form 10-Q for the quarter ended December 31,
2014, and its 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: Suzanne Schmidt Phone: (415)
217-4962 E-Mail: suzanne@blueshirtgroup.com
Media Contact: Mike Major Phone: (408) 542-8831 E-mail:
mmajor@apm.com
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APPLIED MICRO CIRCUITS
CORPORATION |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(in
thousands) |
(unaudited) |
|
|
|
|
March 31, |
March 31, |
ASSETS |
2015 |
2014 |
|
|
|
|
|
|
Current assets: |
|
|
Cash, cash equivalents and
short-term investments |
$ 75,358 |
$ 106,583 |
Accounts receivable, net |
12,407 |
25,178 |
Inventories, net |
23,514 |
18,946 |
Other current assets |
16,840 |
16,799 |
Total current assets |
128,119 |
167,506 |
Property and equipment, net |
16,749 |
20,746 |
Goodwill |
11,425 |
11,425 |
Purchased intangibles, net |
-- |
105 |
Other assets |
2,570 |
7,754 |
Total assets |
$ 158,863 |
$ 207,536 |
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|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
Accounts payable |
$ 13,896 |
$ 26,194 |
Other current liabilities |
17,571 |
28,961 |
Total current liabilities |
31,467 |
55,155 |
Non-current liabilities |
4,291 |
3,145 |
Stockholders' equity |
123,105 |
149,236 |
Total liabilities and
stockholders' equity |
$ 158,863 |
$ 207,536 |
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|
|
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APPLIED MICRO CIRCUITS
CORPORATION |
GAAP CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
(in thousands, except
per share data) |
(unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
Years Ended |
|
March 31, |
December 31, |
March 31, |
March 31, |
March 31, |
|
2015 |
2014 |
2014 |
2015 |
2014 |
|
|
|
|
|
|
Net revenues |
$ 37,048 |
$ 36,747 |
$ 51,771 |
$ 165,011 |
$ 216,150 |
Cost of revenues |
16,482 |
14,842 |
19,806 |
69,297 |
85,189 |
Gross profit |
20,566 |
21,905 |
31,965 |
95,714 |
130,961 |
Operating expenses: |
|
|
|
|
|
Research and development |
24,583 |
24,721 |
25,653 |
107,220 |
146,579 |
Selling, general and
administrative |
7,959 |
8,707 |
9,325 |
33,643 |
38,927 |
Amortization of purchased
intangible assets |
-- |
-- |
62 |
104 |
316 |
Restructuring |
4,098 |
221 |
4 |
5,421 |
1,134 |
Gain on sale of building |
-- |
-- |
(25,815) |
-- |
(25,815) |
Gain on sale of TPack |
-- |
-- |
-- |
-- |
(19,699) |
Total operating expenses |
36,640 |
33,649 |
9,229 |
146,388 |
141,442 |
Operating (loss) income |
(16,074) |
(11,744) |
22,736 |
(50,674) |
(10,481) |
Interest and other income (expense), net |
1,029 |
475 |
418 |
(292) |
5,406 |
(Loss) income before income taxes |
(15,045) |
(11,269) |
23,154 |
(50,966) |
(5,075) |
Income tax expense |
99 |
862 |
38 |
1,092 |
619 |
Net (loss) income |
$ (15,144) |
$ (12,131) |
$ 23,116 |
$ (52,058) |
$ (5,694) |
|
|
|
|
|
|
Basic net (loss) income per share: |
$ (0.19) |
$ (0.15) |
$ 0.31 |
$ (0.66) |
$ (0.08) |
Shares used in calculating basic net (loss)
income per share |
80,667 |
78,920 |
75,629 |
78,814 |
72,897 |
Diluted net (loss) income per share: |
$ (0.19) |
$ (0.15) |
$ 0.30 |
$ (0.66) |
$ (0.08) |
Shares used in calculating diluted net (loss)
income per share |
80,667 |
78,920 |
77,193 |
78,814 |
72,897 |
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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 |
Years Ended |
|
March 31, |
December 31, |
March 31, |
March 31, |
March 31, |
|
2015 |
2014 |
2014 |
2015 |
2014 |
|
|
|
|
|
|
GAAP net (loss) income |
$ (15,144) |
$ (12,131) |
$ 23,116 |
$ (52,058) |
$ (5,694) |
Adjustments: |
|
|
|
|
|
Stock-based compensation
expense |
4,002 |
4,857 |
3,591 |
18,305 |
17,021 |
Amortization of purchased
intangible assets |
-- |
-- |
62 |
104 |
482 |
Veloce acquisition
consideration |
2,090 |
-- |
-- |
9,230 |
42,684 |
Restructuring |
4,098 |
221 |
4 |
5,421 |
1,134 |
Impairment of strategic
investments |
500 |
-- |
-- |
3,000 |
-- |
Gain on sale of building |
-- |
-- |
(25,815) |
-- |
(25,815) |
Gain on sale of TPack |
-- |
-- |
-- |
-- |
(19,699) |
Reversals of impairment charges
upon sales of marketable securities |
(1,176) |
(129) |
(16) |
(1,334) |
(3,992) |
Income tax |
(151) |
62 |
(212) |
(458) |
(368) |
Total GAAP to non-GAAP
adjustments |
9,363 |
5,011 |
(22,386) |
34,268 |
11,447 |
Non-GAAP net (loss) income |
$ (5,781) |
$ (7,120) |
$ 730 |
$ (17,790) |
$ 5,753 |
|
|
|
|
|
|
Diluted non-GAAP (loss) income per share |
$ (0.07) |
$ (0.09) |
$ 0.01 |
$ (0.23) |
$ 0.08 |
|
|
|
|
|
|
Shares used in calculating diluted non-GAAP
(loss) income per share |
80,667 |
78,920 |
77,193 |
78,814 |
74,371 |
|
|
|
|
|
|
Diluted net (loss) income per share: |
|
|
|
|
|
GAAP diluted (loss) income per
share |
$ (0.19) |
$ (0.15) |
$ 0.30 |
$ (0.66) |
$ (0.08) |
GAAP to non-GAAP
adjustments |
0.12 |
0.06 |
(0.29) |
0.43 |
0.16 |
Non-GAAP diluted net (loss)
income per share |
$ (0.07) |
$ (0.09) |
$ 0.01 |
$ (0.23) |
$ 0.08 |
|
|
|
|
|
|
Reconciliation of shares used in calculating
non-GAAP (loss) income per share: |
|
|
|
|
|
Shares used in calculating the
basic (loss) income per share |
80,667 |
78,920 |
75,629 |
78,814 |
72,897 |
Adjustment for dilutive
securities |
-- |
-- |
1,564 |
-- |
1,474 |
Shares used in calculating
diluted non-GAAP (loss) income per share |
80,667 |
78,920 |
77,193 |
78,814 |
74,371 |
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APPLIED MICRO CIRCUITS
CORPORATION |
SCHEDULE OF SELECTED
GAAP TO NON-GAAP ADJUSTMENTS |
(in
thousands) |
(unaudited) |
|
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|
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|
The following schedule reconciles
selected line items on the condensed consolidated statements of
operations from the GAAP basis to the non-GAAP basis: |
|
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|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Years Ended |
|
March 31, |
December 31, |
March 31, |
March 31, |
March 31, |
|
2015 |
2014 |
2014 |
2015 |
2014 |
GROSS PROFIT: |
|
|
|
|
|
GAAP gross profit |
$ 20,566 |
$ 21,905 |
$ 31,965 |
$ 95,714 |
$ 130,961 |
Amortization of purchased
intangible assets |
-- |
-- |
-- |
-- |
166 |
Stock-based compensation
expense |
69 |
71 |
102 |
289 |
445 |
Non-GAAP gross profit |
$ 20,635 |
$ 21,976 |
$ 32,067 |
$ 96,003 |
$ 131,572 |
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
GAAP operating expenses |
$ 36,640 |
$ 33,649 |
$ 9,229 |
$ 146,388 |
$ 141,442 |
Stock-based compensation
expense |
(3,933) |
(4,786) |
(3,489) |
(18,016) |
(16,576) |
Amortization of purchased
intangible assets |
-- |
-- |
(62) |
(104) |
(316) |
Veloce acquisition
consideration |
(2,090) |
-- |
-- |
(9,230) |
(42,684) |
Gain on sale of building |
-- |
-- |
25,815 |
-- |
25,815 |
Gain on sale of TPack |
-- |
-- |
-- |
-- |
19,699 |
Restructuring |
(4,098) |
(221) |
(4) |
(5,421) |
(1,134) |
Non-GAAP operating expenses |
$ 26,519 |
$ 28,642 |
$ 31,489 |
$ 113,617 |
$ 126,246 |
|
|
|
|
|
|
INTEREST AND OTHER INCOME,
NET |
|
|
|
|
|
GAAP interest and other income
(expense), net |
$ 1,029 |
$ 475 |
$ 418 |
$ (292) |
$ 5,406 |
Impairment of strategic
investments |
500 |
-- |
-- |
3,000 |
-- |
Reversals of impairment charges
upon sales of marketable securities |
(1,176) |
(129) |
(16) |
(1,334) |
(3,992) |
Non-GAAP interest and other
income, net |
$ 353 |
$ 346 |
$ 402 |
$ 1,374 |
$ 1,414 |
|
|
|
|
|
|
INCOME TAX EXPENSE: |
|
|
|
|
|
GAAP income tax expense |
$ 99 |
$ 862 |
$ 38 |
$ 1,092 |
$ 619 |
Income tax adjustment |
151 |
(62) |
212 |
458 |
368 |
Non-GAAP income tax expense |
$ 250 |
$ 800 |
$ 250 |
$ 1,550 |
$ 987 |
|
|
|
|
|
|
RESEARCH AND
DEVELOPMENT: |
|
|
|
|
|
GAAP research and development |
$ 24,584 |
$ 24,721 |
$ 25,653 |
$ 107,220 |
$ 146,579 |
Stock-based compensation
expense |
(2,619) |
(2,992) |
(1,503) |
(11,658) |
(6,390) |
Veloce acquisition
consideration |
(2,090) |
-- |
-- |
(9,230) |
(42,684) |
Non-GAAP research and development |
$ 19,875 |
$ 21,729 |
$ 24,150 |
$ 86,332 |
$ 97,505 |
|
|
|
|
|
|
SELLING, GENERAL AND
ADMINISTRATIVE: |
|
|
|
|
|
GAAP selling, general and administrative |
$ 7,959 |
$ 8,707 |
$ 9,325 |
$ 33,643 |
$ 38,927 |
Stock-based compensation
expense |
(1,314) |
(1,794) |
(1,986) |
(6,358) |
(10,186) |
|
|
|
|
|
|
Non-GAAP selling, general and
administrative |
$ 6,645 |
$ 6,913 |
$ 7,339 |
$ 27,285 |
$ 28,741 |
|
|
|
|
|
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APPLIED MICRO CIRCUITS
CORPORATION |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(in
thousands) |
(unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
Years Ended |
|
March 31, |
December 31, |
March 31, |
March 31, |
March 31, |
|
2015 |
2014 (1) |
2014 (1) |
2015 |
2014 (1) |
Operating activities: |
|
|
|
|
|
Net loss |
$ (15,144) |
$ (12,131) |
$ 23,116 |
$ (52,058) |
$ (5,694) |
Adjustments to reconcile net
loss to net cash used for |
|
|
|
|
|
operating activities: |
|
|
|
|
|
Depreciation |
1,957 |
2,223 |
2,545 |
8,555 |
10,273 |
Amortization of purchased
intangible assets |
-- |
-- |
62 |
104 |
482 |
Stock-based compensation
expense |
4,002 |
4,857 |
3,591 |
18,305 |
17,021 |
Veloce acquisition
consideration |
2,090 |
-- |
-- |
9,230 |
42,684 |
Tax effect on other
comprehensive loss |
160 |
50 |
(40) |
126 |
(40) |
Non-cash restructuring
charges |
2,601 |
14 |
-- |
2,615 |
298 |
Gain on sale of TPack |
-- |
-- |
-- |
-- |
(19,699) |
Gain on sale of building |
-- |
-- |
(25,815) |
-- |
(25,815) |
Impairment of strategic
investments |
500 |
-- |
-- |
3,000 |
-- |
Gain on short-term investments
and other, net |
(1,216) |
(123) |
(120) |
(1,317) |
(3,383) |
Changes in operating assets and
liabilities: |
|
|
|
|
|
Accounts receivable, net |
6,840 |
(1,366) |
3,622 |
12,771 |
(837) |
Inventories, net |
698 |
(6,605) |
(8,464) |
(4,573) |
(6,049) |
Assets held for sale |
-- |
-- |
-- |
-- |
(14,260) |
Other assets |
(705) |
(1,336) |
1,017 |
(1,440) |
17,492 |
Accounts payable |
(6,193) |
8,375 |
10,201 |
(9,911) |
5,778 |
Accrued payroll and other
accrued liabilities |
(2,200) |
1,662 |
(1,281) |
(3,127) |
(671) |
Veloce accrued liability |
(169) |
(1,482) |
(18,225) |
(9,150) |
(63,657) |
Deferred revenue |
36 |
(22) |
(321) |
(152) |
(770) |
Net cash used for operating
activities |
(6,743) |
(5,884) |
(10,112) |
(27,022) |
(46,847) |
Investing activities: |
|
|
|
|
|
Proceeds from sales and
maturities of short-term investments |
11,142 |
3,278 |
17,926 |
16,340 |
47,810 |
Purchases of short-term
investments |
(17,165) |
(653) |
(1,840) |
(19,887) |
(18,081) |
Proceeds from sale of TPack,
net |
-- |
-- |
-- |
3,353 |
29,498 |
Proceeds from sale of property
and equipment |
-- |
-- |
50 |
1 |
70 |
Proceeds from sale of
building |
-- |
-- |
40,176 |
-- |
40,176 |
Purchases of property and
equipment |
(2,481) |
(271) |
(336) |
(9,772) |
(5,952) |
Proceeds from sale of strategic
equity investment |
-- |
-- |
-- |
-- |
1,286 |
Net cash (used for) provided by
investing activities |
(8,504) |
2,354 |
55,976 |
(9,965) |
94,807 |
Financing activities: |
|
|
|
|
|
Proceeds from issuances of
common stock |
1,964 |
27 |
3,037 |
3,854 |
11,619 |
Funding of restricted stock
units withheld for taxes |
(302) |
(363) |
(1,032) |
(1,911) |
(6,550) |
Other |
-- |
-- |
40 |
-- |
(555) |
Net cash provided by (used
for) financing activities |
1,662 |
(336) |
2,045 |
1,943 |
4,514 |
Net (decrease) increase in cash and cash
equivalents |
(13,585) |
(3,866) |
47,909 |
(35,044) |
52,474 |
Cash and cash equivalents at the beginning of
the period |
50,080 |
53,946 |
23,630 |
71,539 |
19,065 |
Cash and cash equivalents at the end of the
period |
$ 36,495 |
$ 50,080 |
$ 71,539 |
$ 36,495 |
$ 71,539 |
|
|
|
|
|
|
(1) The statements of cash flows
for the three month periods ended December 31, 2014 and March 31,
2014, and also the year ended March 31, 2014 reflect
reclassifications of $123, $70 and $3,360 of net realized gains on
short-term investments from net cash used for operating activities
to net cash provided by investing activities, respectively. As a
result, net cash used for operating activities and net cash
provided by investing activities for these periods increased by the
corresponding amounts. |
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