SAN DIEGO -- Applied Micro Circuits Corporation (Nasdaq: AMCC - News) today reported its financial results for the first quarter of fiscal 2003. Net revenues for the first quarter of fiscal 2003 were $30.2 million, a decrease of 27% from the $41.2 million reported in the same period of fiscal 2002. The pro forma net loss for the first quarter of fiscal 2003 was $14.8 million, or $0.05 per share, compared with the pro forma net loss of $13.6 million, or $0.05 per share, for the first quarter of fiscal 2002. Sequentially, net revenues for the first quarter of fiscal 2003 were consistent with the net revenues of $30.1 million reported in the prior quarter, but as a result of ongoing cost reduction programs, the pro forma net loss for the first quarter of fiscal 2003 of $14.8 million, or $0.05 per share, was down from the pro forma net loss of $17.5 million, or $0.06 per share, in the prior quarter. AMCC also announced today a workforce reduction, which it expects will reduce headcount by approximately 275 employees, or about 25%, from the level of March 2002. This reduction, which the Company expects to complete by the end of its current fiscal year, will result from a combination of layoffs, attrition, and closure of the Company's wafer fabrication facility. To signify the Company's commitment to continued cost reductions, the compensation committee of the board of directors reduced Chairman and Chief Executive Officer Dave Rickey's salary by 27%, back to his salary level of three years ago when the Company had comparable net revenues. President and COO Doug Spreng's salary was also reduced. Commenting on the downsizing, Rickey said, "Although we regret losing good people, it became necessary given the prolonged downturn in our end markets and the uncertainty as to when these markets will recover. We have streamlined our three business units to focus on those products where we provide maximum value." The net loss determined in accordance with generally accepted accounting principles ("GAAP") was $404.9 million, or $1.35 per share, for the first quarter of fiscal 2003, compared with a net loss of $3.3 billion, or $11.18 per share, for the same period last fiscal year. The net loss on a GAAP basis for the first quarter of fiscal 2003 includes a non-cash charge of $102.2 million in connection with the adoption of FAS 142, and an additional $204.3 million non-cash charge for the impairment of other purchased intangible assets. In addition, the Company recorded a restructuring charge of $2.5 million related to the completion of the plan to close its internal wafer fabrication facility and will record an additional restructuring charge in the second quarter of fiscal 2003, in connection with the non-wafer fabrication portion of the restructuring announced today. Applied Micro Circuits Corp. (AMCC)