Applied Micro's Revenues "Declined In All Business Lines"

| About: Applied Micro (AMCC)

Applied Micro Circuits (NASDAQ:AMCC) yesterday morning warned that revenues for its fiscal fourth quarter ended March 31 would be down 8.5% from the December quarter, or about $70 million. The company had previously said revenue would be down 2%-5%.

Moreover, the company said that revenue for the June quarter would be down 15% sequentially from March, which implies revenue of about $60 million; the Street had been looking for $76.6 million.

Applied Micro says revenues in the latest quarter “declined in all business lines,” with sales to distributors down nearly 30% from the December quarter. The weak June outlook reflects “expected weakness in distribution, lower beginning backlog, lower projected non-recurring revenues and a decline in revenues from…a processor design ramp.”

Applied Micro has two primary businesses; it supplies PowerPC chips to networking equipment vendors, and it sells controllers used in high-performance, high-capacity storage systems.

Applied Micro shares yesterday were down 78 cents at $2.75.

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