Applied Micro Circuit Is One for Tech Investors' Radar Screens
Firm shows continued strength in communication-related chips.
Applied Micro Circuits (AMCC) on Wednesday reported earnings of $0.26 per share before special charges related to recent acquisitions. The firm's earnings exceeded First Call estimates by $0.03 per share and were driven by very strong margins, as well as top-line growth of 31% over the prior quarter.
What It Means for Investors
In sharp contrast with the weak results recently reported by Lucent (LU), Applied Micro's quarterly growth is proof that the demand for optical-networking equipment is still very robust. The company reported sequential revenue growth in the neighborhood of 30% for the second consecutive quarter. Moreover, this growth was driven not only by the firm's top customer, Nortel (NT), but also a whole host of other customers. The increasing diversity of Applied Micro's product and customer base is a definite plus. Also important is the high growth in sales of equipment at high data rate speeds, an area where Lucent has been weakest but Applied Micro has remained strong.
Jeremy Lopez does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.