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31999
AMCC
Fiscal 1999’s all-time high net revenues of $105 million represent an increase of 37% over the $76.6 million
reported in fiscal 1998. Net income for fiscal 1999 also increased to $17.1 million, or $0.62 per share
($19.4 million, or $0.71 per share, excluding merger-related costs of $2.3 million, or $0.08 per share), compared
to $15.2 million, or $0.75 per share, in fiscal 1998. These net income and earnings-per-share numbers reflect
an increase in AMCC’s effective tax rate to approximately 34% (excluding the tax impact of merger-related
costs) from fiscal 1998’s rate of 3%. Additionally, earnings per share reflect the weighted-average increase in
shares associated with the Company’s public offerings in the second half of fiscal 1998 and AMCC’s acquisi-
tion of Cimaron Communications in March 1999.
POSITIONED FOR FUTURE SUCCESS Over the past year, there has been a dramatic increase in Internet activity,
with users spending more time online sending more information than ever before. Key technologies such
as e-commerce and video transmission applications are also emerging, further driving the insatiable demand
for bandwidth. At the same time, silicon innovation has taken over as a dominant driver in communications,
rapidly increasing its penetration across the network. Silicon delivers exceptional, proven reliability and cost-
efficient performance not available from other technologies. If customers can get the solution they need in
silicon, they will.
AMCC, a leader in high-speed, high-bandwidth silicon connectivity, delivers the solutions to meet these
exploding bandwidth needs. Over the past year, the Company made great strides in expanding our capabilities to
address these emerging market opportunities. From advancements in our analog and mixed-signal technologies
to our new presence in digital-layer solutions, we are continuing to strengthen AMCC’s leadership in our rapidly
growing markets.
While AMCC has realized some major accomplishments during fiscal 1999, we are dedicated to improving our
technologies, processes and industry partnerships to further position AMCC for success in the future. AMCC
is building on our commitment to the SONET/SDH and ATM markets. We are renewing our focus on offer-
ing complete solutions up through the digital layer, and on achieving the optimum integration of our tech-
nologies. The Company is continuing to leverage its telecom skills into datacom and is exploiting multiple silicon
process technologies for maximum results. We are also expanding our global presence with new offices in Milan
and Japan, a critical market for AMCC. It is the dedication of every employee to the constant expansion and
improvement of our product offerings that we believe will enable AMCC to continue to provide the silicon
innovation that will drive tomorrow’s global communications.
David M. Rickey—President and Chief Executive Officer