SUNNYVALE, Calif., Oct. 29, 2009 (GLOBE NEWSWIRE) -- Applied Micro Circuits Corporation (Nasdaq:AMCC) today reported its financial results for the second quarter of fiscal 2010 ended September 30, 2009.

 * Q2 net revenues from continuing operations were $49.2 million up
   9% sequentially and down 23% year over year.
 * Q2 2010 GAAP net loss from continuing operations was $(8.1)
   million or $(0.12) per share. Q2 2010 net income from
   discontinued operations were $1.3 million or $0.02 per share.
 * Q2 2010 non-GAAP net income (from continuing operations) was $1.3
   million or $0.02 per share.
 * Total cash was approximately $198 million as of September 30,
   2009.

Net revenues from continuing operations for the second quarter of fiscal 2010 were $49.2 million compared to $45.1 million in the first quarter of fiscal 2010, representing a sequential increase of 9% and a decline of 23% over the $64.3 million in net revenues reported in the second quarter of fiscal 2009. Revenues for the first six months were $94.3 million compared to $125.5 million for the comparable period last year, a 25% decrease.

The net loss on a generally accepted accounting principles (GAAP) basis for the second quarter of fiscal 2010 was $(6.7) million or $(0.10) per share. The second quarter GAAP net loss compares with a net income of $2.9 million or $0.04 per share for the first quarter of fiscal 2010 and a net loss of $(2.3) million or $(0.04) per share for the second quarter of fiscal 2009. Year to date, GAAP net loss was $(3.8) million or $(0.06) per share compared to $(7.5) million or $(0.12) per share for the first six months of fiscal 2009.

Non-GAAP income from continuing operations for the second quarter of fiscal 2010 was $1.3 million or $0.02 per share, compared to non-GAAP income from continuing operations of $0.9 million or $0.01 per share in the first quarter of fiscal 2010 and non-GAAP net income from continuing operations of $9.7 million or $0.15 per share for the second quarter of fiscal 2009. Year to date, non-GAAP net income from continuing operations was $2.2 million or $0.03 per share compared to $16.7 million or $0.26 per share for the first six months of fiscal 2009.

"We executed to plan and are excited with the significant interest and traction we have been able to generate with key customers and new product platforms. We continue to lay a solid foundation for future growth," said Paramesh Gopi, president and chief executive officer.

Bob Gargus, chief financial officer commented, "We are happy with the sustained revenue growth and continue to make progress with our bottom line and overall asset management."

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, stock-based compensation charges, other-than-temporary impairment on investments, impairment of strategic investment, payroll tax on certain stock option exercises, non-cash tax adjustments and expenses related to stock option investigation and other litigation. 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, October 29, 2009, at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss additional details regarding the Company's performance for the second quarter of fiscal 2010 and to provide guidance for the third quarter of fiscal 2010. You may access the conference call via any of the following:

  Teleconference:  866-730-5762
  Conference ID:   93408858
  Web Broadcast:   http://www.appliedmicro.com
  Replay:          888-286-8010 (access code: 61405428,
                   available through November 5, 2009)

AppliedMicro Overview

AppliedMicro is a global leader in energy efficient sustainable solutions to process, transport, and store information for the next generation of Internet data center and carrier central office. A leader in high speed signal processing, IP and Ethernet packet processing, and embedded processors, AppliedMicro's patented innovations provide high value solutions in telecom, enterprise and consumer applications. AppliedMicro's corporate headquarters are located in Sunnyvale, California. Sales and engineering offices are located throughout the world. For further information regarding AppliedMicro, visit the company's Web site at http://www.appliedmicro.com.

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 Company's focus, product cycles, design-win pipeline, strategic re-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, 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, 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, 2009, 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.

                  APPLIED MICRO CIRCUITS CORPORATION
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands)
                              (unaudited)
                                                  --------   --------
                                                  Sept. 30,  March 31,
 ASSETS                                             2009       2009
                                                  --------   --------
 Current assets:
   Cash, cash equivalents and
    short-term investments                        $197,696   $184,009
   Accounts receivable, net                         21,275     17,537
   Inventories                                      19,421     26,598
   Other current assets                              8,356      8,871
   Assets of discontinued operations                    --      8,558
                                                  --------   --------
     Total current assets                          246,748    245,573
 Property and equipment, net                        26,237     25,749
 Purchased intangibles, net                         24,109     32,965
 Other assets                                       20,303     20,323
                                                  --------   --------
     Total assets                                 $317,397   $324,610
                                                  ========   ========
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
   Accounts payable                               $ 13,431   $ 16,715
   Other current liabilities                        15,861     23,925
                                                  --------   --------
     Total current liabilities                      29,292     40,640
 Stockholders' equity                              288,105    283,970
                                                  --------   --------
     Total liabilities and stockholders' equity   $317,397   $324,610
                                                  ========   ========

                  APPLIED MICRO CIRCUITS CORPORATION
         GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (in thousands, except per share data)
                              (unaudited)
                           Three Months Ended        Six Months Ended
                      ----------------------------  ------------------
                      Sept. 30, June 30,  Sept. 30, Sept. 30, Sept.