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APPLIED MICRO CIRCUITS CORPORATION COMMON STOCK-NE Reports Operating Results (10-K)

May 12, 2010 | About:
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10qk

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APPLIED MICRO CIRCUITS CORPORATION COMMON STOCK-NE (AMCC) filed Annual Report for the period ended 2010-03-31.

Applied Micro Circuits Corporation Common Stock-ne has a market cap of $727.3 million; its shares were traded at around $11.07 with and P/S ratio of 3.5. AMCC is in the portfolios of Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC.

Highlight of Business Operations:

Our research and development expertise and efforts are focused on the development of high-performance analog, digital and mixed-signal ICs and on the development of highly integrated embedded processing SoC ICs for the communications market. We also develop high-performance libraries and design methodologies that are optimized for each of these applications. Our primary research and development facilities are located in Sunnyvale and San Diego, California, Austin, Texas and Andover, Massachusetts in the United States, Ottawa in Canada, Ho Chi Minh City in Vietnam and Pune in India. During the fiscal years ended March 31, 2010, 2009 and 2008, we expended $88.1 million, $84.7 million and $86.1 million, respectively, on research and development activities.

On May 17, 2009, we entered into agreements with Veloce Technologies, Inc. (Veloce), pursuant to which Veloce has agreed to perform product development work for us on an exclusive basis for up to five years for cash and other consideration, including a warrant to purchase shares of our common stock, which will vest upon the achievement of both, certain performance and time-based milestones. Under the merger agreement, we agreed to acquire Veloce if certain performance milestones and delivery schedules set forth under the agreements are achieved. We also have the unilateral option to acquire Veloce in the event Veloce fails to meet the milestones and delivery schedules. If we acquire Veloce pursuant to the merger agreement, the purchase price is estimated to be in the range of approximately $5 million up to approximately $100 million, subject to adjustments. The final price would be based upon the achievement and timing of achieving multiple performance milestones. Our chief executive officer has been appointed to Veloces Board of Directors. In addition, we have provided Veloce a promissory note of $1.5 million to be forgiven over eight quarters starting on March 31, 2011. If Veloce commits a material breach of the merger agreement, the outstanding principal amount of the note and accrued interest will become due. If we commit a material breach of the merger agreement, the outstanding principal amount of the note and accrued interest is to be forgiven by us. We agreed to pay Veloce $1.5 million per quarter for up to twelve consecutive quarters in order to assist Veloce in meeting its expenses to perform its obligations under the agreement. Through March 31, 2010, no milestones have been met. For a more detailed discussion, see Note 12 of the Notes to Consolidated Financial Statements included in Part IV, Item 15, Exhibits, Financial Statement Schedules, of this Annual Report.

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