Applied Micro Circuits Corp (AMCC) reported GAAP net income of $10.9 million or 15 cents per share in the first quarter of fiscal 2014 (ending Jun 30, 2013) compared to a net loss of $23.4 million or loss of 37 cents a share in the year-ago quarter. The GAAP earnings outpaced the Zacks Consensus Estimate of a break-even result. Excluding non-recurring items, non-GAAP net income for the quarter was $1.4 million or 2 cents per share versus a net loss of $11.4 million or loss of 18 cents per share in the year-earlier quarter.
Net sales for the reported quarter came in at $54.1 million versus $41.3 million in the year-earlier quarter. Net sales for first quarter fiscal 2014 marginally beat the Zacks Consensus Estimate of $54.0 million. The year-over-year increase was primarily due to strength in base business and increased market presence of X-Gene products.
The X-Gene server-on-a-chip (SoC) product continued to progress rapidly and remains on track for commercial production, systems-development commitments and public demonstrations to multiple customers and ecosystem partners
Operating expenses stood at $24.6 million versus $47.9 million in the year-ago quarter. Selling, general and administrative expenses stood at $9.5 million versus $12.5 in the year-ago quarter. Research and development expenses were $34.5 million versus $34.8 in the prior-year period.
Applied Micro ended the quarter with cash, cash equivalents and short-term investments of $89.7 million versus $85.5 million as of Mar 31, 2013.
Applied Micro’s embedded SoC products gained traction in the Consumer Premise Equipment (CPE) and enterprise markets. The company has shipped over two million embedded processors to Wistron NeWeb Corporation – a provider of advanced wireless communications products to high-profile service providers.
Applied Micro expects to continue its healthy revenue momentum with new product developments and increased market acceptance in the coming quarters.
Total revenue is expected to be in the range of $54 million to $56 million in second quarter fiscal 2014. Operating expenses is expected to range from $31.5 million to $32.5 million in the next quarter.
Applied Metro currently has a Zacks Rank #2 (Buy). Other stocks that look promising and are worth considering in the industry include Diodes Incorporated (DIOD), LSI Corporation (LSI) and OmniVision Technologies, Inc (OVTI), each carrying a Zacks Rank #1 ( Strong Buy).
More From Zacks.com
- Investment & Company Information
- Applied Micro