For Q2, the company reported revenue of $46.3 million, down 29% from a year ago, but up 12% sequentially, and ahead of the Street at $45.3 million. Applied on a non-GAAP basis lost 16 cents a share, in line with the Street.
For Q3, AMCC sees revenues up 8%-12% sequentially, which suggests $51 million at the midpoint, ahead of the Street at $49.6 million. The company said it expects to reach break-even by the March quarter.
"We recovered nicely from the low point of our first quarter," CEO Paramesh Gopi said in a statement. "We are making excellent progress in the development of our disruptive 64bit server product which will tape-out this quarter and I have been very pleased with the level of interest from the industry including several key players."
CFO Bob Gargus added that the company is "slightly ahead of plan and are progressing towards our commitment of achieving cash break even in the upcoming March quarter."
Evercore analyst Patrick Wang this morning added AMCC to his firm's conviction Buy list. "After several challenging quarters marred by excess inventories, customer product transitions, and capital structure/dilution concerns, AMCC delivered a second consecutive beat-and- raise quarter and re-confirmed plans to achieve break-even in 6 months. As such, we believe management declawed much of the bear case."
AMCC is up $1.18, or 26%, to $5.72.
