SAN DIEGO -- Applied Micro Circuits Corporation (Nasdaq: AMCC - News) today announced that it has reached an agreement to settle the securities class-action litigation currently pending against the company and certain current and former officers and directors. The company and the defendants denied any wrongdoing as part of the settlement, which is subject to court approval. The total settlement amount is $60 million, of which the company expects its insurers to pay approximately $31 million. The company has recorded a charge of approximately $29 million in its third fiscal quarter, which ended December 31, 2004. Court approval for the settlement will be sought in this fourth quarter of the company's 2005 fiscal year.

"The company has vigorously contested this litigation and remains steadfast in its position. However, putting this four-year-old litigation behind us removes the uncertainty and distraction of the litigation, and allows the company to focus on its business," said Cesar Cesaratto, AMCC's lead director and the chairman of the company's Governance and Nominating Committee.

Applied Micro Circuits Corp. (AMCC)