AppliedMicro Cites Progress in ARM 64-bit Development

AppliedMicro reported net revenues of $51.7 million for the quarter ending 31-Dec-2012, up approximately 12% sequentially and down approximately 8% year over year. There was a GAAP net loss was $71.6 million or $(1.08) per share compared to net loss of $21.6 million or $(0.33) per share for the previous quarter.

AppliedMicro also reported that performance simulations of its ARM 64-Bit X-Gene processor have significantly exceeded the company's expectations and resulted in an increase in the range of its estimated milestone-based payments under the Veloce merger agreement. The purchase price is now estimated to be in the range of $117 to $178.5 million, depending upon the achievement of multiple product development cycles and technical performance results.

"In the third quarter we believe we made giant strides in our product development efforts by taping out our 40nm ARM 64-Bit X-Gene server on a chip. We also taped out a test chip for our upcoming 28nm product in January. While we await final benchmarks from the actual silicon, the results from highly correlated simulations indicate that the 40nm chip performance may far exceed our original expectations. In fact, we believe the networking performance of the chip suggests that we may be able to further penetrate into Enterprise class solutions. I am also very pleased with the improvements in our base business, reflected in continued quarter over quarter revenue growth," said Dr. Paramesh Gopi, President and Chief Executive Officer.

Bob Gargus, Chief Financial Officer commented, "While we are very excited with the milestones in our ARM 64-bit product strategy, we also had a very solid quarter Company-wide and beat expectations. We feel we are making great progress towards our goal of attaining break even on a non-GAAP basis for the March quarter."

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