Applied Micro Circuits (Applied Micro Circuits) Operating Income : $-32.7 Mil (TTM As of Sep. 2016)

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What is Applied Micro Circuits Operating Income?

Applied Micro Circuits's Operating Income for the three months ended in Sep. 2016 was $-4.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2016 was $-32.7 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Applied Micro Circuits's Operating Income for the three months ended in Sep. 2016 was $-4.7 Mil. Applied Micro Circuits's Revenue for the three months ended in Sep. 2016 was $41.8 Mil. Therefore, Applied Micro Circuits's Operating Margin % for the quarter that ended in Sep. 2016 was -11.30%.

Applied Micro Circuits's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Applied Micro Circuits's annualized ROC % for the quarter that ended in Sep. 2016 was -62.17%. Applied Micro Circuits's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 was -101.78%.

Applied Micro Circuits Operating Income Historical Data

The historical data trend for Applied Micro Circuits's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Applied Micro Circuits Operating Income Chart

Applied Micro Circuits Annual Data

Trend

Mar07

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Operating Income

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-93.44

-134.87

-10.48

-50.67

-35.50

Applied Micro Circuits Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Operating Income	Get a 7-Day Free Trial															-8.81	-8.20	-9.02	-10.72	-4.72

Applied Micro Circuits Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $-32.7 Mil.

Applied Micro Circuits (NAS:AMCC) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Applied Micro Circuits's annualized ROC % for the quarter that ended in Sep. 2016 is calculated as:

	ROC % (Q: Sep. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2016 )	+	Invested Capital (Q: Sep. 2016 ))	/ count )
=	-18.876 * ( 1 - -3.99% )	/	( (30.515	+	32.632)	/ 2 )
=	-19.6291524	/	31.5735
=	-62.17 %

where

	Invested Capital		(Q: Jun. 2016 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	141.637	-	28.811	-	( 82.311	-	max(0, 29.158	-	114.984	+	82.311	))
=	30.515

	Invested Capital		(Q: Sep. 2016 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	143.745	-	29.385	-	( 81.728	-	max(0, 29.72	-	118.39	+	81.728	))
=	32.632

Note: The Operating Income data used here is four times the quarterly (Sep. 2016) data.

2. Joel Greenblatt's definition of Return on Capital:

Applied Micro Circuits's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2016 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2016		Q: Sep. 2016
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-18.876	/	( ( (13.905 + max(3.515, 0))	+	(12.729 + max(6.942, 0)) )	/	2 )
=	-18.876	/	( ( 17.42	+	19.671 )	/	2 )
=	-18.876	/	18.5455
=	-101.78 %

where Working Capital is:

	Working Capital		(Q: Jun. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(9.163	+	12.604	+	10.906)	-	(28.811	+	0.347	+	0)
=	3.515

	Working Capital		(Q: Sep. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(13.552	+	13.181	+	9.929)	-	(29.385	+	0.335	+	-3.5527136788005E-15)
=	6.942

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2016) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Applied Micro Circuits's Operating Margin % for the quarter that ended in Sep. 2016 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2016 )	/	Revenue (Q: Sep. 2016 )
	=	-4.719	/	41.779
	=	-11.30 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Applied Micro Circuits Operating Income Related Terms

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Applied Micro Circuits (Applied Micro Circuits) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Applied Micro Circuits Corp (NAS:AMCC) » Definitions » Operating Income

Traded in Other Exchanges

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Address

Website

http://www.apm.com

Applied Micro Circuits Corp was incorporated and commenced operations in California in 1979 and was reincorporated in Delaware in 1987. The Company is engaged in providing silicon solutions for next-generation cloud infrastructure and data centers, as well as connectivity products for edge, metro and long haul communications equipment. Its products include the X-Gene ARM 64-bit Server on a Chip solution, or X-Gene. The X-Gene family of products targets existing and emerging hyperscale cloud, scientific and high-performance computing and enterprise applications. It also offers embedded computing products based on Power Architecture, sometimes referred to as PowerPC products. The Company's HeliX family of embedded products is based on the ARM Instruction Set Architecture. The Company's embedded processor products are deployed in applications such as control- and data-plane management, wireless access points, residential gateways, wireless base stations, storage controllers, network attached storage, network switches and routing products, and multi-function printers. The Company's connectivity portion provides high-speed, high-bandwidth, high-reliability communications products. Its connectivity products include devices for Optical Transport Network (OTN) equipment and physical layer (PHY) devices that transmit and receive signals in a very high speed serial format. Its embedded computing products are deployed in applications in markets such as control- and data-plane functionality, wireless access points, residential gateways, wireless base-stations, storage controllers, network attached storage, network switches and routing products, and multi-function printers. The Company holds approximately 348 issued patents which cover aspects of the design and architecture of its integrated circuit ("IC") and enterprise storage products. The Company's registered trademarks include AppliedMicro, AMCC, APM, X-Gene, Server on a Chip, Cloud Server, OTNsec, Arming the Cloud and Hard Silicon, among others. It is subject to a variety of federal, state and local governmental regulations related to the use, storage, discharge and disposal of toxic, volatile or otherwise hazardous chemicals that were used in its manufacturing process.

Executives

Duston Williams	director	C/O NUTANIX, INC., 1740 TECHNOLOGY DRIVE, SUITE 150, SAN JOSE CA 95110
Paul R Gray	director	63 LA CUESTA ORINDA CA 94563
Martin S Mcdermut	officer: Vice President and CFO	C/O RESONANT INC. 10900 STONELAKE BLVD., SUITE 100, OFFICE 02-130, AUSTIN TX 78759
Karen M Rogge	officer: Interim CFO	APPLIED MICRO CIRCUITS CORP, 4555 GREAT AMERICA PARKWAY, SUITE 601, SANTA CLARA CA 95054
Shiva Kumar Natarajan	officer: VP Corporate Controller	215 MOFFETT PARK DRIVE, SUNNYVALE CA 94089
Hk Desai	director	26650 ALISO VIEJO PARKWAY, ALISO VIEJO CA 92656
Mark Wadlington	officer: VP Worldwide Sales	215 MOFFETT PARK DRIVE, SUNNYVALE CA 94089
Donald A Colvin	director	ONE CAESARS PALACE DRIVE, LAS VEGAS NV 89109
Julie Sullivan	director	6290 SEQUENCE DRIVE SAN DIEGO CA 92121
Hooshmand Kambiz	officer: President & CEO	6290 SEQUENCE DRIVE, SAN DIEGO CA 92121
David B Wright	director	C/O EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Harvey White	director
Johnson Franklin P Jr	director
David Rickey	director, officer: COB and CEO
Stephen M Smith	officer: CFO