On Jan. 30, 2007, semiconductor and printed-circuit-board specialist Applied Micro Circuits (NASDAQ:AMCC) released its third-quarter earnings for the period ended Dec. 31, 2006.

  • Net revenues increased by 17.5%, primarily thanks to strong storage-products growth, which in turn was driven by enhanced product portfolio and channel partners.
  • The firm reported a net loss of $4.2 million, compared with net income of $0.6 million for the same period last year.
  • President and CEO Kambiz Hoosmand was disappointed with third-quarter revenues, but believes the company managed ongoing expenses well. The results were affected by ongoing telecom-sector consolidation and an industrywide inventory correction.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Sales

$76,642

$65,243

17.5%

Net Profit

($4,172)

$584

N/A

EPS

($0.01)

$0.00

N/A

Diluted Shares

281,799

299,049

(5.8%)



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2007

Q3 2006

Change*

Gross Margin

50.7%

54.0%

(3.3)

Operating Margin

(9.4%)

(8.7%)

(0.7)

Net Margin

(5.4%)

0.9%

(6.3)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Cash + ST Invest.

$261,040

$350,810

(25.6%)

Accounts Rec.

$35,741

$22,390

59.6%

Inventory

$37,273

$20,648

80.5%



Liabilities

Q3 2007

Q3 2006

Change

Accounts Payable

$24,960

$28,268

(11.7%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Management short-circuited and failed to provide a cash flow statement with the earnings release.

Find out why Fools always follow the money.

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