Oppenheimer Assigns Perform On Applied Micro Circuits Following Disappointing F2Q Results

In a research report issued today, Oppenheimer analyst Rick Schafer assigned a Perform rating on Applied Micro Circuits (NASDAQ:AMCC). No price target was provided.

Schafer observed, “AMCC reported disappointing F2Q (Sept.) sales/EPS of $40.9M/($0.06), down 19% Q/Q and below consensus $44M/($0.02) estimate. F3Q (Dec.) revenue was guided to $36M, well short of the Street’s $46M est. Connectivity looks to be in a holding pattern over the next two to three quarters, while PowerPC is in a secular decline. Our long-held cautious stance on AMCC has centered on the health of the core business and the time-to-revenue of X-Gene as the ARM server ecosystem incubates. While the bulls will likely point to the double-digit Q/Q X-Gene growth, we prefer waiting on the sidelines until we get better visibility into the slope/magnitude of the X-Gene ramp before becoming more constructive on shares.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Rick Schafer has a total average return of 9.7% and a 71.8% success rate. Schafer is ranked #547 out of 3350 analysts.

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