SUNNYVALE, Calif., Nov. 14, 2007 (PRIME NEWSWIRE) -- Applied Micro Circuits Corporation (NASDAQ:AMCC) 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.
AMCC stockholders will be sent instructions for exchanging their existing stock certificates for new stock certificates and for receiving cash payments for fractional shares.
AMCC is a global leader in network and embedded PowerPC(r) processing, optical transport and storage solutions. Our products enable the development of converged IP-based networks offering high-speed secure data, high-definition video and high-quality voice for carrier, metropolitan, access and enterprise applications. AMCC provides networking equipment vendors with industry-leading network and communications processing, Ethernet, SONET, OTN and switch fabric solutions. AMCC is also the leading vendor of high-port count SATA RAID controllers enabling low-cost, high-performance, high-capacity storage. AMCC's corporate headquarters are located in Sunnyvale, California. Sales and engineering offices are located throughout the world. For further information regarding AMCC, please visit our web site at http://www.amcc.com.
AMCC is a registered trademark of Applied Micro Circuits Corporation. The PowerPC name and logo are registered trademarks of IBM Corporation and used under license therefrom. All other trademarks are the property of their respective owners.
This news release contains forward-looking statements that reflect the Company's current view with respect to future events, including statements regarding the implementation and anticipated benefits of the reverse stock split. These forward-looking statements are only predictions based on current information and expectations and are subject to certain risks and uncertainties, including, but not limited to, the risk that the reverse stock split will not result in any or all of the anticipated benefits and the risks and uncertainties associated with having a volatile stock price. More information about potential factors that could affect the Company's business and financial results is included in the "Risk Factors" set forth in the Company's Annual Report on Form 10-K for the year ended March 31, 2007, and the Company's other filings with the Securities and Exchange Commission. Actual results could differ materially from those set forth in the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the issuance of this press release.
CONTACT: Applied Micro Circuits Corporation Investor Relations Contact: Scott Dawson (858) 535-4217 firstname.lastname@example.org The Bernard Group Media/Editorial Contact: Diane Bernard (512) 617-6319 email@example.com