SUNNYVALE, Calif. -- Applied Micro Circuits Corporation (Nasdaq:AMCC) today announced that based on preliminary financial information, the Company expects to report net revenues of approximately $50 million for the quarter ended June 30, 2007, down approximately 29% compared to the quarter ended March 31, 2007. The Company had previously provided guidance for first quarter revenues to be approximately $59.6 million.
Kambiz Hooshmand, AMCC's president and CEO, said, "The shortfall in the first quarter revenues is the result of continued weakness in the Telcom market space, weaker than anticipated processor sales due to delayed new product ramps and continued inventory corrections."
The Company estimates that first quarter revenues declined in all business lines except Storage and that sales to distributors were down nearly 28% sequentially. Storage revenues grew as anticipated. These first quarter results a re preliminary and thus are subject to the Company's management and independent registered public accounting firm completing their quarterly review procedures.
Based upon a book to bill ratio of 1.14x in the first quarter, the Company now expects revenues to rebound in the September quarter, with revenues to be in the $55 million to $60 million range. The Company also expects continued growth in subsequent quarters through the remainder of the fiscal year ending March 31, 2008. The Company, by fiscal year-end 2008, plans to reduce its quarterly operating expenses by approximately 10% from the fourth quarter fiscal year 2007 run rate, while maintaining investments in its focused growth initiatives.
Applied Micro Circuits Corp. (AMCC)