Applied Micro (AMCC) has done an absolutely phenomenal job spinning its X-Gene story to investors and analysts alike for the last year or so. Despite the fact that this product is likely to be uncompetitive and is woefully behind schedule, and despite the grandiose revenue ramp promises (multiple years out, of course) the company's X-Gene microserver processor venture is unlikely to be particularly profitable, investors have continued to buy this company on the X-Gene "dream".
However, this quarter investor and analysts alike were served a very harsh dose of reality in the form of a lackluster forward guide and more vague promises and claims with respect to the company's upcoming X-Gene product line. The sell-off in shares...
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