Applied Micro Circuits Beats on Both Top and Bottom Lines

Applied Micro Circuits (Nasdaq: AMCC  ) reported earnings on Jan. 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Applied Micro Circuits beat slightly on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP loss per share grew.

Margins dropped across the board.

Revenue details
Applied Micro Circuits recorded revenue of $51.7 million. The eight analysts polled by S&P Capital IQ looked for revenue of $51.0 million on the same basis. GAAP reported sales were 8.3% lower than the prior-year quarter's $56.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.10. The eight earnings estimates compiled by S&P Capital IQ averaged -$0.12 per share. GAAP EPS were -$1.08 for Q3 against -$0.12 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 55.6%, 220 basis points worse than the prior-year quarter. Operating margin was -129.6%, 11,580 basis points worse than the prior-year quarter. Net margin was -138.4%, 12,580 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $55.4 million. On the bottom line, the average EPS estimate is -$0.02.

Next year's average estimate for revenue is $193.8 million. The average EPS estimate is -$0.52.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 122 members out of 159 rating the stock outperform, and 37 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Applied Micro Circuits a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Applied Micro Circuits is outperform, with an average price target of $8.74.

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