Exhibit 99.1
Press Release
Applied Micro Circuits Corporation Reports Fourth Quarter Fiscal 2015 Financial Results
SUNNYVALE, Calif., April 28, 2015 (GLOBE NEWSWIRE) - Applied Micro Circuits Corporation (Nasdaq: AMCC) (“AppliedMicro”) today reported its financial results for the 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 | |
| | (617) 485-4854 | |
| | | |
| PASSCODE: | 21955585 | |
| | | |
| 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
|
| | | | | | | | |
| APPLIED MICRO CIRCUITS CORPORATION |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (in thousands) |
| (unaudited) |
| | | March 31,
2015 | | March 31,
2014 |
| ASSETS | | | | |
| 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 |
|
| 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 |
|
|
| | | | | | | | | | | | | | | | | | | |
| APPLIED MICRO CIRCUITS CORPORATION |
| GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (in thousands, except per share data) |
| (unaudited) |
| | Three Months Ended | | Years Ended |
| | March 31,
2015 | | December 31,
2014 | | March 31,
2014 | | March 31,
2015 | | March 31,
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 T-Pack | — |
| | — |
| | — |
| | — |
| | (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 |
|
|
| | | | | | | | | | | | | | | | | | | |
| APPLIED MICRO CIRCUITS CORPORATION |
| RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET (LOSS) INCOME |
| (in thousands, except per share data) |
| (unaudited) |
| | Three Months Ended | | Years Ended |
| | March 31,
2015 | | December 31,
2014 | | March 31,
2014 | | March 31,
2015 | | March 31,
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 effect of non-GAAP adjustments | (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 |
|
|
| | | | | | | | | | | | | | | | | | | |
| APPLIED MICRO CIRCUITS CORPORATION |
| SCHEDULE OF SELECTED GAAP TO NON-GAAP ADJUSTMENTS |
| (in thousands) |
| (unaudited) |
| The following schedule reconciles selected line items on the condensed consolidated statements of operations from the GAAP basis to the non-GAAP basis: |
| | Three Months Ended | | Years Ended |
| | March 31,
2015 | | December 31,
2014 | | March 31,
2014 | | March 31,
2015 | | March 31,
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 |
| | $ | 24,711 |
| | $ | 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 |
| | $ | 21,719 |
| | $ | 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 |
|
|
| | | | | | | | | | | | | | | | | | | |
| APPLIED MICRO CIRCUITS CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (in thousands) |
| (unaudited) |
| | Three Months Ended | | Years Ended |
| | March 31,
2015 | | December 31,
2014 | | March 31,
2014 | | March 31,
2015 | | March 31,
2014 |
| Operating activities: | | | | | | | | | |
| Net (loss) income | $ | (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 | 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. |
