Applied Micro Circuits Corporation F2Q09 (Qtr End 09/30/08) Earnings Call Transcript

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2008-10-30 19:28:12.0

Tags: Revenue, Goldman Sachs & Co., Call Transcript, Earnings, Applied Micro Circuits Corp., Asia, December, Telephony, Telecom & Utilities, Telecommunications, Operational Accounting, Networking, Finance, Seeking Alpha, Revenue, Goldman Sachs & Co., Call Transcript, Earnings, Applied Micro Circuits Corp., Asia, December, Telephony, Telecom & Utilities, Telecommunications, Operational Accounting, Networking, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) We’ll pause for a moment to assemble today’s roster. We’ll have our first question from James Snyder, Goldman Sachs.

James Snyder – Goldman Sachs

Thank you guys and thanks for taking my question. I guess first of all for Kambiz, can you give us a little bit of color in terms of the product areas that you expect to be down the most in terms of Q4 revenues or December quarter revenues please?

Kambiz Hooshmand

I think anything having to do with telecom will be done again in the December quarter. Actually in the September quarter, we were not down, so it will be done for the first time in the December quarter. And I have to remind you that although we say process transport store [ph], within the processor product line, we have a fair bit of exposure to telecom as well because a number of our processor design wins from the past are in fact in the telecom sector. And even in storage, we sell into certain telecom-related applications. So anything having to do with telecoms will be down, it will probably be down the most. Anything having to do with the general economy and the distribution will be down and that is the second down in terms of percentage.

Bob Gargus

So Jim, this is obviously – well it cuts across the three based on our – the given split of the revenue, you can pretty well guess it's going to impact the transport revenue number more, and before you even ask, yes, the impact of that since transport has the higher gross margins, has been factored into the gross margin guidance that we gave you.

James Snyder – Goldman Sachs

Okay. Fair enough. And can you talk – I think you talked a little bit in your prepared remarks about North America being particularly weak and Asia remaining strong. Do you still expect that going forward in the December quarter as well?

Kambiz Hooshmand

I think in December, we will continue to see strength on a relative basis in Asia. I think that the disease that began in North America has spread to Europe and it’s hard to predict when or if it will spread into Asia, but I think we will continue to see strength in Asia in the December quarter. Part of that is also obviously, we are not big enough to comment on all of Asia or all the aspects of it. In wireless infrastructure and in particular on backhaul, we have design wins that are going through network upgrades, I gave you examples of that in our comments, and therefore we see upside where others might see downside. We certainly see in our segment, in our design wins, we see strength.

 

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