AMCC Preps Reverse Split

Applied Micro Circuits Corporation announces 1-for-4 reverse stock split

November 14, 2007

2 Min Read

SUNNYVALE, Calif. -- Applied Micro Circuits Corporation (NasdaqGS:AMCC - News) today announced that its Board of Directors has decided to effect a 1-for-4 reverse split of all outstanding shares of its common stock. The reverse stock split will take effect at 11:59 pm, Eastern Time, on Monday, December 10, 2007. AMCC's common stock will begin trading on the NASDAQ Global Select Market on a split-adjusted basis on Tuesday, December 11, 2007, under the temporary trading symbol ``AMCCD.'' The trading symbol will revert to ``AMCC'' after approximately 20 trading days.

AMCC's reverse stock split, which was approved at the Company's annual meeting of stockholders on March 9, 2007, is intended to enhance investors' visibility into the Company's profitability on a per share basis. The Company also believes that a higher share price could broaden AMCC's appeal to investors, in addition to reducing per share transaction fees and certain administrative costs.

As a result of the reverse stock split, every four shares of AMCC common stock will automatically be combined and converted into one share of AMCC common stock. The Company will not issue any fractional shares as a result of the reverse stock split. Instead, stockholders will receive a cash payment (based on the closing sales price of the Company's common stock on December 10, 2007 as reported on the NASDAQ Global Select Market).

The reverse stock split will reduce the total number of shares of the Company's common stock outstanding from approximately 273 million to approximately 68 million. In connection with the reverse stock split, the authorized number of shares of common stock will also be reduced from 630 million to 375 million. Proportional adjustments will be made to outstanding AMCC stock options and other equity incentive awards and the share reserve under the Company's equity incentive plans.

Applied Micro Circuits Corp. (Nasdaq: AMCC)

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like