67 WALL STREET, New York - October 7, 2013 - The Wall Street Transcript has just published its Semiconductors Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Cloud Computing - Mobile Device Consumer Demand - Enterprise Data Storage Demand - Energy Efficiency, Cloud Computing and Telecommunications
Companies include: Applied Micro Circuits Corp. (AMCC) and many more.
In the following excerpt from the Semiconductors Report, the President and CEO of Applied Micro Circuits Corporation (AMCC) discusses company strategy and the outlook for this vital industry:
TWST: How would you describe the competitive landscape for your business, and what advantages do you believe you have?
Dr. Gopi: I think one of the big things that we've done as a company, and I think I can say this with a certain amount of what I call "investor view confidence," is I don't think there is any small-cap company in this entire industry that's invested to the tune of what we have to really address the needs for cloud data centers and the high-growth cloud computing mega-scale data center markets. So really speaking, if you look at our company today, there is no other small-cap company that has the portfolio of assets, from big connectivity - very, very high-performance, big-pipe connectivity - technologies to extremely high-performance and extremely low-power CPUs in hardware space, all the way to analog mixed-signal and I/O capabilities, that we have, so we really have a very unique and structured portfolio of components and semiconductor technologies that we've assembled to really drive the company. So there is no other small-cap company doing what we're doing at this juncture, and from where we stand, I think it represents a huge opportunity for us to challenge an architectural monopoly in this market.
So today, if you look at the data center market, the architectural monopoly for servers is essentially one architecture, which is x86, and it's done by two companies, Intel and AMD. In the cloud, it is almost 100% Intel, so with us taking the first step forward to provide a real low-TCO, highly integrated Server-on-a-Chip alternative, we have the ability to really offer across the customer base a real alternative to an architectural monopoly. And that's so critical, because it's all about, how do you save energy and how do you make sure that the massive growth of Internet traffic does not lead to a runaway energy problem?
TWST: Can you comment on the strength of your balance sheet at this point, and are there particular areas you are working to improve?
Dr. Gopi: We're currently a profitable, cash-flow-positive company. Today we have approximately $90 million in cash. Part of our balance sheet going forward, obviously we want to make sure that we have a reasonable level of cash. We also have a significant asset base in terms of real estate and other portfolio assets that we can use, but the balance sheet for a company our size, going after the markets that we're going after, is indeed very robust.
But more importantly I think one of the big things that we've achieved is...
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