Seeking Alpha

AppliedMicro (AMCC +26.9%) skies higher following it FQ2 report. Though results were ho-hum, the...

AppliedMicro (AMCC +26.9%) skies higher following it FQ2 report. Though results were ho-hum, the beaten-down telecom chipmaker guided on its earnings call for FQ3 revenue to rise 8%-12% Q/Q (consensus is for a 7% increase). It also announced a partnership with Red Hat (RHT) and ARM (ARMH) to develop server designs based on AppliedMicro's ARM CPUs. Evercore has added AppliedMicro to its Conviction Buy list, touting the company's backlog, share gains, and declining inventories. Rival PMC-Sierra (PMCS +2.1%) is up a bit.
Comments (2)
  • Ashraf Eassa
    , contributor
    Comments (9092) | Send Message
    Haha, called it!
    26 Oct 2012, 11:19 AM Reply Like
  • Russ Fischer
    , contributor
    Comments (2588) | Send Message
    I remember these guys from the days when they did custom bipolar ICs. You could cook eggs on those chips, (or melt solder.)
    It seems that they have always promised big things always to be off the mark by enough to keep them from breaking out into a a significant company.
    I see that they have been losing money for three straight years. the balance sheet looks great, but without looking up a multi-year set of balance sheets, I would bet that the cash is not a result of retained earnings.
    Good luck on the ARM based servers. There is a new out of order Atom chip coming from Intel that should, again, make AMCC flush a bunch of R&D money down the sewer.
    Maybe they come up with something this time and good for them, but some companies are just serial losers but never die. My feeling is that AMCC is in this category. Another AMD.
    26 Oct 2012, 11:40 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector