3Ware 2004 Annual Report Download - page 9

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CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
All statements included or incorporated by reference in this report, other than statements or
characterizations of historical fact, are forward-looking statements. These forward-looking statements are made
as of the date of this report. Any statement that refers to an expectation, projection or other characterization of
future events or circumstances, including the underlying assumptions, is a forward-looking statement. We use
certain words and their derivatives such as “anticipate”, “believe”, “plan”, “expect”, “estimate”, “predict”,
“intend”, “may”, “will”, “should”, “could”, “future”, “potential”, and similar expressions in many of the forward-
looking statements. The forward-looking statements are based on our current expectations, estimates and
projections about our industry, management’s beliefs, and other assumptions made by us. These statements and
the expectations, estimates, projections, beliefs and other assumptions on which they are based are subject to
many risks and uncertainties and are inherently subject to change. We describe many of the risks and
uncertainties that we face in the “Risk Factors” section in Item 7 and elsewhere in this report. We update our
descriptions of the risks and uncertainties facing us in our periodic reports filed with the U.S. Securities and
Exchange Commission, known as the SEC, in which we report our financial condition and results for the quarter
and fiscal year to date. Our actual results and actual events could differ materially from those anticipated in any
forward-looking statement. Readers should not place undue reliance on any forward-looking statement.
PART I
Item 1. Business.
In this annual report on Form 10-K, “Applied Micro Circuits Corporation”, “AMCC”, the “Company”,
“we”, “us” and “our” refer to Applied Micro Circuits Corporation and all of our consolidated subsidiaries.
Applied Micro Circuits Corporation was incorporated and commenced operations in California in 1979.
AMCC was reincorporated in Delaware in 1987. Our principal executive offices are located at 6290 Sequence
Drive, San Diego, California 92121, and our phone number is 858-450-9333. Our website is located at
www.amcc.com. The information that can be accessed on or through our website is not intended to be part of this
report. Various documents concerning us that are electronically filed with or furnished to the SEC, including our
annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K are available,
free of charge, on our website. Our common stock trades on the Nasdaq National Market under the symbol
“AMCC”.
Overview
We design, develop and market technology products for the communications and storage equipment
markets. Our products are essential for the transport, processing, switching, routing and storage of information
worldwide. We utilize a combination of design expertise coupled with system-level knowledge and multiple
technologies to offer integrated circuit, or IC, products, as well as printed circuit board assemblies or PCBAs, for
these markets. We generate revenues in the communications market primarily through sales of our IC products to
communications equipment manufacturers, such as Alcatel, Ciena, Cisco, Fujitsu, Hitachi, Huawei, JDS
Uniphase, Juniper, Lucent, Marconi, NEC, Nortel, Siemens, and Tellabs. In the storage market, we generate
revenues primarily through sales of our host bus adaptor boards, or HBAs, to original equipment manufacturers,
or OEMs, such as EMC, Hitachi Data Systems, Network Appliance, StorageTek and Sun Microsystems.
In September 2003 and January 2004, we purchased assets and licensed intellectual property associated with
IBM’s PowerPRS Switch Fabric product line (the PRS Business) for approximately $50 million in cash to
complement our existing switch fabric product portfolio. In October 2003, we completed the acquisition of all
outstanding shares of JNI Corporation (JNI), a provider of Fibre Channel hardware and software products that are
critical elements of storage networks, for approximately $196.4 million in cash. During the fourth quarter of
fiscal 2004, we signed a definitive agreement to acquire 3Ware, Inc. 3Ware provides high-performance, high
capacity Serial ATA (SATA) storage solutions for emerging storage applications such as disk-to-disk backup,
near-line storage, network-attached storage (NAS), video, and high-performance computing. Subsequent to year