AMCC Closes PowerPC Acquisition

AMCC completes the acquisition of IBM's 400 series of embedded PowerPC standard products; updates guidance accordingly

May 5, 2004

1 Min Read

SAN DIEGO -- Applied Micro Circuits Corporation [Nasdaq: AMCC] today announced that it has completed the acquisition of intellectual property and a portfolio of products and other assets associated with IBM's 400 series of embedded PowerPC(TM) standard products, in addition to a Power Architecture license. The PowerPC 400 series product line delivers performance and a rich mix of features for Internet, communication, data storage, consumer and imaging applications.

In connection with the completion of this transaction, AMCC is updating the June quarter guidance to include the associated revenue for the balance of the quarter. Accordingly, AMCC expects total company revenue for the June quarter to be approximately $68 to $70 million. Additionally, the company expects this transaction to be slightly accretive to proforma net income.

AMCC also expects to record certain GAAP required acquisition related charges such as in-process R&D and amortization of intangible assets, however the magnitude and allocation of these amounts have not been determined.

This acquisition is expected to expand the company's addressable market by $2.6 billion by calendar year 2007.

Applied Micro Circuits Corp. (AMCC)

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