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APPLIED MICRO CIRCUITS CORPORATION COMMON STOCK-NE (AMCC) filed Quarterly Report for the period ended 2011-09-30.
Applied Micro Circuits Corp. has a market cap of $471.85 million; its shares were traded at around $7.33 with and P/S ratio of 1.9.
This is the annual revenues and earnings per share of AMCC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of AMCC.
Highlight of Business Operations:
We expect that our largest customers will continue to account for a substantial portion of our net revenue for the foreseeable future. Distributor revenues for the three and six months ended September 30, 2011 were 34% and 31% of total revenues, as compared to 39% and 42% for the three and six months ended September 30, 2010, respectively. The decrease was primarily due to increased demand from our distributors during three and six months ended September 30, 2010.We incur significant costs for the fabrication of masks used by our contract manufacturers to manufacture our products. If we determine, at the time the cost for the fabrication of masks are incurred, that technological feasibility of the product has been achieved, we consider the nature of these costs to be pre-production costs. Accordingly, such costs are capitalized as property and equipment under machinery and equipment and are amortized as cost of sales over approximately three years, representing the estimated production period of the product. If we determine, at the time fabrication mask costs are incurred, that either technological feasibility of the product has not occurred or that the mask is not reasonably expected to be used in production manufacturing or that the commercial feasibility of the product is uncertain, the related mask costs are expensed to R&D in the period in which the costs are incurred. We will also periodically assess capitalized mask costs for impairment. During the three and six months ended September 30, 2011, total mask costs of $2.8 million and $4.1 million were incurred, of which $1.7 million and $3.0 million, respectively, was expensed as R&D expense because technological feasibility had not been achieved and the remaining $1.1 million was capitalized during both the three and six months ended September 30, 2011. During the three and six months ended September 30, 2010, total mask costs of $3.0 million and $4.5 million were incurred, of which zero and $1.5 million was expensed as R&D expense because technological feasibility had not been achieved and the remaining $3.0 million and zero was capitalized.
Net Revenues. Net revenues for the three and six months ended September 30, 2011 were $64.9 million and $125.8 million, representing a decrease of 1.6% and 0.8% from net revenues of $65.9 million and $126.8 million for the three and six months ended September 30, 2010, respectively. We classify our revenues into two categories based on the markets that the underlying products serve. The categories are Process and Transport. We use this information to analyze our performance and success in these markets. See the following tables (dollars in thousands):
The amortization of purchased intangible assets included in cost of revenues during the three and six months ended September 30, 2011 was $1.5 million and $2.2 million compared to $2.7 million and $5.3 million for the three and six months ended September 30, 2010, respectively. The acquisition of TPack has increased our amortization of purchased intangible assets included in cost of revenues by approximately $0.7 million per quarter. Future acquisitions of businesses may result in substantial additional charges, which may impact the gross profit percentage in future periods.
For the six months ended September 30, 2011, we used $8.9 million of cash in our operations compared to generating $22.5 million for the six months ended September 30, 2010. Our net loss of $8.0 million for the six months ended September 30, 2011 included $12.9 million of non-cash charges consisting of $3.8 million of depreciation, $4.1 million of amortization of purchased intangibles and $7.3 million of stock-based compensation, offset by a $2.3 million reduction to the estimated fair value of our contingent consideration. Our net income of $5.0 million for the six months ended September 30, 2010 included $17.7 million of non-cash charges consisting of $3.6 million of depreciation, $7.4 million of amortization of purchased intangibles, $7.8 million of stock-based compensation and a credit of $1.2 million related to the capitalization of prior years mask set costs. The remaining change in operating cash flows for the six months ended September 30, 2011 primarily reflected increases in accounts receivable and other current assets and decreases in inventories, accounts payable, accrued payroll and related expenses, other accrued liabilities and deferred revenue. Our overall days sales outstanding was 40 days and 32 days for the three months ended September 30, 2011 and March 31, 2011, respectively. The increase was primarily due to higher revenue during the three months ended September 30, 2011
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