Applied Micro Circuits F3Q08 (Qtr End 12/31/07) Earnings Call Transcript

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2008-01-23 18:23:40.0

Tags: Applied Micro Circuits Corp.

Question-and-Answer Session

Operator

(Operator Instructions). We will go first to Allan Mishan with Oppenheimer.

Allan Mishan - Oppenheimer

Hey, guys. Nice job, few questions for you. First, do you expect all segments to be up in the March quarter?

Kambiz Hooshmand

I think so Bob?

Bob Gargus

Yes, we do.

Allan Mishan - Oppenheimer

Okay. Great.

Kambiz Hooshmand

That is [Multiple Speakers] when it comes from the CFO, right Allan?

Allan Mishan - Oppenheimer

Sure, sure. A few quarters ago you gave that lengthy discussion on consumption level. Do you believe that once you achieve that March number for revenue that you will have return to consumption in all your major businesses?

Kambiz Hooshmand

Yes, we believe that and obviously if you take our guidance, it guides to a number that's higher than what we talked about back on July 5th. So we believe that we've the potential to exceed that particular level.

Allan Mishan - Oppenheimer

Okay, great, and then on the IBM relationship. Can you just expand on how your products fit within the IBM portfolio. Will these show up in catalogs and on-screens the same way IBM products do just for different applications or what have you. And also how soon can you have revenue from this new deal?

Kambiz Hooshmand

Sure, Allan let me cover your two questions in two parts. First part is regarding the marketing campaign, we still have some details to workout. We obviously wanted to get that press release out and get it to the investor community. Our belief is that, the first step is to train the IBM sales force, which as I said in the prepared remarks is quite large and make sure that they are marketing our products.

Second around the whole details of the marketing campaign we have a little bit more work to do with IBM. But overtime we believe that their incredible reach into the semiconductor businesses of very large accounts, which historically have been the strong hold of free sale will benefit us a great deal. In terms of that leaves to the second part of my answer or your second question.

In terms of timeframe it takes three to six months to begin to win designs and then from there depending on the market segments you are in, it takes anywhere from six to nine months to possibly two to three years to recognize revenue. In some market segments like wireless infrastructure the time to revenue is much larger in some market segments, like the printer market the time to revenue is much shorter. So it's in that range and I would certainly not expect any revenue, insight of 12 months from this, but after that we begin to recognize revenue.

 

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