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ANNUAL REPORT 2005
A World of Experts
Annual Report 2005: A World of Experts
AMCC

Table of contents

  • Page 1
    ANNUAL REPORT 2005 AMCC Annual Report 2005: A World of Experts A World of Experts

  • Page 2
    ...2005...-based applications. 08/27/04 - 3ware® 9500S receives a product review score of...1 worldwide vendor of Merchant Switch Fabrics, reports market research firm In-Stat/MDR. 10...Fabric wins the Communications/Networking ICs category at EDN's 15th Annual Innovation Awards. 03/07/05 - AMCC unveils high-...

  • Page 3
    .... The acquisition strategy that brought both the PowerPC® and 3ware® product families and development expertise under the AMCC umbrella is...as a formidable player in the communications, storage and vertical markets. In fiscal 2005, we introduced MISSIONTM Access, an EDN "Hot 100 Products of the Year...

  • Page 4
    ... that fosters the integrity of our financial planning, financial reporting and corporate communications. This spirit will govern our interaction ... - will remain a focus in the coming year. As we look back on fiscal 2005 and eye the challenges of 2006, I want to express my thanks and appreciation to ...

  • Page 5
    ... SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2005 OR ' TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT...

  • Page 6
    APPLIED MICRO CIRCUITS CORPORATION ANNUAL REPORT ON FORM 10K FOR THE FISCAL YEAR ENDED MARCH 31, 2005 TABLE OF CONTENTS Page PART I Item 1. Item 2. Item 3. Item 4. Business ...Properties ...Legal Proceedings ...Submission of Matters to a Vote of Security Holders ...PART II Item 5. Item 6. ...

  • Page 7
    ... 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...

  • Page 8
    Industry Background The Communications Industry Communications technology has evolved considerably over the last several years due to the substantial growth in the Internet and wireless communications. The emergence of new applications, such as wireless web devices, voice over Internet Protocol, or ...

  • Page 9
    handle these new protocols with general framing protocol and virtual concatenation. In addition, emerging technologies such as multi-service provisionary platforms, or MSPPs, and multi-service switches, or MSSs, allow service providers to efficiently manage and transport the varied types of network ...

  • Page 10
    systems architecture, software and applications support. We believe that the integration of these capabilities enables us to optimize our market opportunities within these product families. Increase the Number of Products we Provide to Address Specific Protocols and Networking Functions We focus our...

  • Page 11
    ... from the network processing and switching layers for transmission to the physical layer on their return to the optical network. In fiscal 2005, we introduced the Amur/S1215, a framer and multi-protocol data processing product line that implements all the framing, overhead processing, timing control...

  • Page 12
    ...parallel ATA RAID controllers and embedded storage processors. In fiscal 2005, we announced that we would discontinue development of our Fibre ... our current line of HBA products. RAID Controllers: Through our acquisition of 3ware, we design, manufacture and sell a line of serial and parallel ATA RAID...

  • Page 13
    ..., and Teradyne. The majority of these products were manufactured in our internal wafer manufacturing facility, which closed in fiscal 2003. During fiscal 2005, we continued to fill last-time-buy orders for these products. Our highspeed computing products were not manufactured in our internal wafer...

  • Page 14
    ... and Andover, Massachusetts in the United States; Essonnes and Sophia, France; and Bangalore, India. During the fiscal years ended March 31, 2005, 2004, and 2003, we expended $118.6 million, $112.6 million, and $131.9 million, respectively, on research and development activities. Our IC product...

  • Page 15
    optimal package solution is a vital element of the delivery of high-performance products and involves balancing cost, size, thermal management, and technical performance. We purchase our ceramic packages from several vendors including IBM, Kyocera America, Motorola and NTK Ceramics and our plastic ...

  • Page 16
    Operations." Information regarding net revenue generated from each of our significant customers, as well as domestic and foreign net revenues from the sale of our products, is provided in Note 11 to the Consolidated Financial Statements. Backlog Our sales are made primarily pursuant to standard ...

  • Page 17
    ... of 2003, we closed our wafer fabrication facility in San Diego, and the property has been returned to the landlord. Employees As of March 31, 2005, we had 755 full-time employees: 77 in administration, 437 in research and development, 78 in operations, and 163 in marketing and sales. Our ability...

  • Page 18
    ... Management. Faye Pairman joined AMCC in 2004 when AMCC acquired 3ware. At 3ware, she served as President and Chief Executive Officer. Ms. ... President. Mr. Blazevich was named Acting Chief Financial Officer effective January 1, 2005. Prior to AMCC, Mr. Blazevich was an Audit Manager at Ernst &...

  • Page 19
    ...Glasgow University in Scotland, in addition to several patents in the field of microcontroller architecture and timers. Daryn Lau joined us in May 2005 as Vice President and General Manager, Communications Business Unit. Before joining AMCC, Mr. Lau was Vice President and General Manager for the IDT...

  • Page 20
    ... will be adequate for at least the next 12 months. During fiscal year 2005, we purchased two facilities. In June, we purchased a 50,000 square ... to Consolidated Financial Statements, included in Part IV, Item 15 of this Report, is incorporated herein by reference. Item 4. Submission of Matters to a ...

  • Page 21
    ... by us that were not registered under the Securities Act of 1933 during fiscal 2005. Securities Authorized for Issuance under Equity Compensation Plans The information included in Part III, Item 12 of this report, is hereby incorporated herein by reference. For additional information on our stock...

  • Page 22
    ... on the closing market price of our common stock on the expiration date of the agreements. These agreements had various expiration dates through May 31, 2005. Upon expiration of each agreement, if the closing market price of the Company's common stock is at or above the pre-determined price, we will...

  • Page 23
    ... and related Notes, as well as "Management's Discussion and Analysis of Financial Condition and Results of Operations", contained elsewhere in this report. 2005 March 31, 2004 2003 2002 (In thousands, except per share data) 2001 Consolidated Statements of Operations Data: Net revenues ...$ 253,756...

  • Page 24
    ... of operations for the three fiscal years ended March 31, 2005. A brief description is provided of transactions and events that ... of the risks and uncertainties facing us in our periodic reports filed with the SEC in which we report our financial condition and results for the quarter and fiscal year...

  • Page 25
    ....4 million in cash. In April 2004, we completed the acquisition of 3ware, Inc., a provider of high-performance, high-capacity SATA storage solutions,... critical accounting policies have a significant impact on the results we report in our financial statements. We base our estimates and assumptions on...

  • Page 26
    ...that goodwill be tested for impairment at the reporting unit level on an annual basis and between annual tests in certain circumstances. Application of the ...could incur additional impairment charges. For fiscal 2005, the discounted cash flows for each reporting unit were based on discrete five-year ...

  • Page 27
    ... of the industry. If a major customer's credit worthiness deteriorates, or our customers' actual defaults exceed our historical experience, our estimates could change and impact our reported results. 21

  • Page 28
    ...is derived from of our JNI acquisition and our 3ware acquisition. The Embedded Products revenue consists of our Embedded... of total net revenues in any of the three years ended March 31, 2005 were as follows: 2005 2004 2003 Harris Corporation ...Nortel Networks Corporation ...* Less than 10% of total...

  • Page 29
    ... $ 73,576 100.0% $122,579 43.9% 65,652 56.1% $ 56,927 93.4% 114.0% 77.4% The increase in gross profit for the year ended March 31, 2005 was primarily attributable to the increase in revenues, offset by an increase of $14.4 million and $825,000 of amortization of developed technology and purchased...

  • Page 30
    ... charges may cause fluctuations in our interim or annual operating results. Acquired In-process Research and Development. For the fiscal year ended March 31, 2005, we recorded $13.4 million of acquired IPR&D resulting from the acquisitions of 3ware and the Embedded Products Business. These amounts...

  • Page 31
    ... savings relating to fixed cost of sales overhead and approximately $2 million of annual savings relating to operating expenses. During fiscal 2005, we have completed the restructuring activities contemplated by the July 2001 restructuring plan and no further payments or expenses are anticipated...

  • Page 32
    ... 2003 workforce reduction program and no further payments or expenses are anticipated under this program. We achieved annual operating expense savings of approximately $8 million in fiscal 2005, as a result of our November 2003 workforce reduction. In November 2004, we implemented a fifth workforce...

  • Page 33
    ... from the sale of short-term investments, less interest expense on our debt and capital lease obligations. The decrease for the year ended March 31, 2005 is primarily due to lower cash and short-term investment balances as well as lower net realized gains on the portfolio. Other Income, net. Other...

  • Page 34
    Revenues based on direct shipments outside the United States of America accounted for 46% of net revenues for the year ended March 31, 2004, compared to 41% for the year ended March 31, 2003. Gross Profit. The following table presents net revenues, cost of revenues and gross profit for the fiscal ...

  • Page 35
    ... the year ended March 31, 2003. Goodwill and Purchased Intangible Asset Impairment Charges. To coincide with our annual long-range planning process, we assess goodwill for impairment annually in the fourth quarter, or more frequently if the indicators of impairment are present. Based on the analysis...

  • Page 36
    ... cash paid for the acquisitions and purchases of property, equipment and other assets. We used $17.4 million of cash for the year ended March 31, 2005 for financing activities compared to generating $25.5 million for the year ended March 31, 2004. The major financing use of cash was in funding the...

  • Page 37
    ... that have varying maturities through May 31, 2005. Under the remaining agreements, we could receive up to $10.3 million of cash, or the delivery of up to 3.0 million shares of our common stock. In April 2004, we completed the acquisition of 3ware, Inc., a provider of high-performance, high-capacity...

  • Page 38
    ... described below, in addition to the other information contained in this report and in our other filings with the SEC. We update our descriptions of the... decline. Some of the factors that affect our quarterly and annual results, but which are difficult to control or predict are communications...

  • Page 39
    • • the impact of potential one time charges related to purchased intangibles; costs associated with compliance with applicable environmental, other governmental or industry regulations including costs to redesign products to comply with those regulations or lost revenue due to failure to ...

  • Page 40
    From time to time, in response to anticipated long lead times to obtain inventory and materials from our outside contract manufacturers, suppliers and foundries, we may order materials in advance of anticipated customer demand. This advance ordering has in the past and may in the future result in ...

  • Page 41
    our agreements with customers typically are non-exclusive and do not require them to purchase a minimum amount of our products; many of our customers have pre-existing relationships with current or potential competitors that may cause them to switch from our products to competing products; some of ...

  • Page 42
    ...on Sun's Solaris servers. These HBA products accounted for a significant portion of our revenue from sales of storage products during fiscal 2004 and fiscal 2005. Though we will continue to ship these products in the near term, we expect the revenue from sale of these products to decline rapidly. We...

  • Page 43
    ... of instruments and maturities. These securities are recorded on our consolidated balance sheets at fair value with unrealized gains or losses reported as a separate component of accumulated other comprehensive income (loss), net of tax. Our investment portfolio is exposed to market risks related...

  • Page 44
    Our restructuring activities could result in management distractions, operational disruptions and other difficulties. In the third quarter of fiscal 2005, we implemented our fifth restructuring plan in the last four years. This plan involved the closure of our research and development facility in ...

  • Page 45
    The markets in which we compete are highly competitive, and we expect competition to increase in these markets in the future. The markets in which we compete are highly competitive, and we expect that domestic and international competition will increase in these markets, due in part to deregulation,...

  • Page 46
    The closing of our internal wafer fabrication facility could result in unanticipated liability and reduced revenues. In the past we have derived a significant portion of our revenues from products manufactured in our internal wafer fabrication facility. This facility was closed during fiscal 2003 ...

  • Page 47
    resolution of yield problems may require cooperation between us and our manufacturer. This risk could be compounded by the offshore location of certain of our manufacturers, increasing the effort and time required to identify, communicate and resolve manufacturing yield problems. Manufacturing ...

  • Page 48
    ... we will be required to value our employee stock option grants pursuant to an option valuation model, and then amortize that value against our reported earnings over the vesting period in effect for those options. We currently account for stock-based awards to employees in accordance with Accounting...

  • Page 49
    ... results of operations as following its implementation, the stock-based compensation expense will be charged directly against our reported earnings. For an illustration of the effect of such a change on our recent results of operations, see Note 1 of our Notes to Consolidated Financial Statements...

  • Page 50
    earthquakes or floods. We do not have earthquake or business interruption insurance for these facilities, because adequate coverage is not offered at economically justifiable rates. A significant natural disaster or other catastrophic event could have a material adverse impact on our business, ...

  • Page 51
    ... these assets as noted in our financial statements. At March 31, 2005, we have $534.5 million of goodwill and purchased intangible assets. ...of the litigation. We do not expect the court to grant final approval before June 2005. There is a risk that the settlement will not be approved by the court. ...

  • Page 52
    third-party nondisclosure agreements, and licensing arrangements. Despite these efforts, we cannot be certain that others will not independently develop substantially equivalent intellectual property or otherwise gain access to our trade secrets or intellectual property, or disclose such ...

  • Page 53
    conditions in the semiconductor, communications or information technology markets; the commencement or outcome of litigation; changes in ratings and estimates of our performance by securities analysts; announcements of merger or acquisition transactions; management changes; our inclusion in certain ...

  • Page 54
    ...balance sheets at fair value with unrealized gains or losses reported as a separate component of accumulated other comprehensive income (... Points (150 BPS) (100 BPS) (50 BPS) Fair Value as of March 31, 2005 Valuation of Securities Given an Interest Rate Increase of X Basis Points (50 BPS) (100 BPS...

  • Page 55
    ... Framework, our management concluded that our internal control over financial reporting was effective as of March 31, 2005. Our management's assessment of the effectiveness of our internal control over financial reporting as of March 31, 2005 has been audited by Ernst & Young LLP, an independent...

  • Page 56
    ... COSO criteria. Also, in our opinion, Applied Micro Circuits Corporation maintained, in all material respects, effective internal control over financial reporting as of March 31, 2005, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting...

  • Page 57
    ... Certain information required by Part III is omitted from this report because we will file a definitive proxy statement within 120 days after the end of our fiscal year pursuant to Regulation 14A for our fiscal 2005 annual meeting of stockholders, and the information included in the proxy statement...

  • Page 58
    ... of the Company are included herein as required under Item 8 of this report. See Index to Financial Statements on page F-l. (2) Financial Statement Schedules For the three fiscal years ended March 31, 2005-Schedule II Valuation and Qualifying Accounts Schedules not listed above have been omitted...

  • Page 59
    ... filed with the Company's Current Report on Form 8-K on May 9, 2005. Incorporated by reference to Exhibit 99.1 filed with the Company's Current Report on Form 8-K on December 12, 2002. Incorporated by reference to identically numbered exhibits filed with the Company's Annual Report on Form 10-K for...

  • Page 60
    ... reference to identically numbered exhibits filed with the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2003...shares available to permit the full annual grant of options to each of the eligible nonemployee directors scheduled for April 1, 2005. In lieu of the scheduled ...

  • Page 61
    ..., for him in any and all capacities, to sign any amendments to this Annual Report on Form 10-K, and to file the same, with exhibits thereto and other ...June 6, 2005 June 6, 2005 June 6, 2005 June 6, 2005 June 6, 2005 June 6, 2005 June 6, 2005 June 6, 2005 June 6, 2005 June 6, 2005 JEFFERY ...

  • Page 62
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  • Page 63
    INDEX TO FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm ...Consolidated Balance Sheets as of March 31, 2005 and 2004 ...Consolidated Statements of Operations for the fiscal years ended March 31, 2005, 2004 and 2003 ...Consolidated Statements of Cash Flows for the ...

  • Page 64
    ... of the Public Company Accounting Oversight Board (United States), the effectiveness of the Company's internal control over financial reporting as of March 31, 2005, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the...

  • Page 65
    ...-2,000, none issued and outstanding ...Common stock, $0.01 par value: Authorized shares-630,000 at March 31, 2005 ...Issued and outstanding shares-308,328 at March 31, 2005 and 310,985 at March 31, 2004 ...Additional paid-in capital ...Deferred compensation, net ...Accumulated other comprehensive...

  • Page 66
    APPLIED MICRO CIRCUITS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Fiscal Years Ended March 31, 2005 2004 2003 Net revenues ...Cost of revenues (1) ...Gross profit ...Operating expenses: Research and development ...Selling, general and administrative ......

  • Page 67
    APPLIED MICRO CIRCUITS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Fiscal Years Ended March 31, 2005 2004 2003 Operating activities: Net loss ...$ (127,373) $ (104,877) Adjustments to reconcile net loss to net cash used for operating activities Cumulative effect of ...

  • Page 68
    ... to terminations ...- - Comprehensive loss: Net loss ...- - Foreign currency translation gain ...- - Unrealized loss on short-term investments, net of tax ...- - Total comprehensive loss ... Balance, March 31, 2005 ...308,328 $3,083 See Accompanying Notes to Financial Statements

  • Page 69
    ... with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. The Company regularly evaluates estimates...

  • Page 70
    ... and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in the consolidated statements of operations. Strategic Equity Investments The Company enters into certain equity investments for the promotion of business...

  • Page 71
    ...one to ten years. In accordance with SFAS 142, "Goodwill and Other Intangible Assets" ("SFAS 142"), the Company performs its annual impairment review at the reporting unit level during the fourth quarter each fiscal year or more frequently if the Company believes indicators of impairment are present...

  • Page 72
    ... plans and rights granted in connection with the employee stock purchase plans reported below has been estimated at the date of grant with the following ... Fiscal Years Ended March 31, 2005 2004 2003 Employee Stock Purchase Plans Fiscal Years Ended March 31, 2005 2004 2003 Expected life (years)...

  • Page 73
    ... under SFAS 123 and SFAS 148 is as follows: Fiscal Years Ended March 31, 2005 2004 2003 (In thousands, except per share amounts) Net loss-as reported ...$(127,373) $(104,877) $ (745,541) Plus: Reported stock-based compensation ...9,340 21,203 131,886 Less: Fair value stock-based compensation...

  • Page 74
    ...000 for the three years ended March 31, 2005, 2004 and 2003, respectively. The accumulated ...report information about operating segments in annual consolidated financial statements and requires that those enterprises report selected information about operating segments in interim financial reports...

  • Page 75
    ... Gains Losses Estimated Fair Value At March 31, 2005: U.S. Treasury securities and agency bonds ...Corporate bonds... Available-for-sale securities by contractual maturity are as follows (in thousands): March 31, 2005 Due in one year or less ...Due after one year through two years ...Greater than...

  • Page 76
    ...2004 (in thousands) Accounts receivable ...Less: allowance for bad debts ... $30,385 $24,994 (1,784) (1,710) $28,601 $23,284 Inventories: March 31, 2005 2004 (in thousands) Finished goods ...Work in process ...Raw materials ... $ 9,754 7,095 1,165 $18,014 $5,061 2,376 1,053 $8,490 Other current...

  • Page 77
    ... $ 72,499 The estimated future amortization expense of purchased intangible assets charged to cost of sales and operating expenses as of March 31, 2005, is as follows (in thousands): Cost of Sales Operating Expenses Total Fiscal year 2006 ...Fiscal year 2007 ...Fiscal year 2008 ...Fiscal year 2009...

  • Page 78
    ... - 10,250 $35,539 Interest income, net: Fiscal Years Ended March 31, 2005 2004 2003 (in thousands) Interest income ...Net realized gains on short-term investments ...Other income (expense), net: Fiscal Years Ended March 31, 2005 2004 2003 (in thousands) Gain on strategic equity investments ......

  • Page 79
    ...business acquired from the date of acquisition. Details of the acquired business are as follows: Fiscal 2005 3ware, Inc.-On April 1, 2004, the Company completed the acquisition of 3ware, Inc. for approximately $145.0 million in cash and assumed options to purchase approximately 4.3 million shares of...

  • Page 80
    ... $264,492 $668,212 The total consideration issued in the acquisitions is as follows (in thousands): Fiscal 2005 Embedded Products Fiscal 2005 Business Subtotal Fiscal 2004 Fiscal 2005 Subtotal 3ware JNI PRS Business Total Cash paid and merger fees ...$145,832 $234,000 $379,832 $200,939 Value...

  • Page 81
    ... totaled $13.4 and $21.8 million for acquisitions completed in fiscal 2005 and 2004, respectively. The amounts allocated to IPR&D were determined through ...Rate (in thousands) (in thousands) Company Acquired Fiscal 2005: 3ware, Inc...SATA Raid Controller Cards Embedded Products Business ...Embedded ...

  • Page 82
    ... include the $16.1 million IPR&D charge. The results for the years ended March 31, 2005 and 2004, give effect to the amortization of purchased intangible assets and deferred compensation from JNI and 3ware. Also, included in the results are restructuring charges of $9.6 million and $22.3 million for...

  • Page 83
    ... existing employees generally vest and become exercisable ratably on a monthly basis over a period of 48 months measured from the date of grant. At March 31, 2005 and 2004, there were no shares of common stock subject to repurchase. At March 31, 2003, 305,000 shares of common stock were subject to...

  • Page 84
    ... fair market value of the common stock on the first or last day of the offering period, whichever is lower. At March 31, 2005 approximately 11.1 million shares had been issued under this plan and approximately 3.3 million shares were available for future issuance. Common Shares Reserved for Future...

  • Page 85
    ...(396,247) $ - $ 196,314 74,905 31,952 22,192 257 - 1,955 327,575 (17,911) (17,911) 309,664 (309,664) $ - At March 31, 2005, the Company has federal and state research and development tax credit carryforwards of approximately $75.3 million and $40.4 million, respectively, which will begin to expire...

  • Page 86
    ...the market capitalization of the Company was also considered in assessing the reasonableness of the cumulative fair values of its reporting. Upon completion of the annual impairment test for fiscal 2005 the Company determined that no impairment was indicated as the estimated fair values of the three...

  • Page 87
    ...for the year ended March 31, 2003. During the first annual test under FAS 142 in fiscal 2003, the Company determined..., 2004 ...Charged to expense ...Cash payments ...Noncash charges ...Adjustments to expense ...Liability, March 31, 2005 ... $ 66 4,369 (3,730) - (8) 697 $ 7,052 499 (6,098) (26) 575 ...

  • Page 88
    ... disposal of excess manufacturing equipment, the abandonment of certain leasehold improvements, and the write off of software licenses. During fiscal 2005, the Company has completed the restructuring activities contemplated by the July 2001 restructuring plan and no further payments or expenses are...

  • Page 89
    APPLIED MICRO CIRCUITS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) million for the estimated facility restoration costs and the severance packages for approximately 70 manufacturing employees, and of $3.0 million consisting of employee severances, related to the closure of a ...

  • Page 90
    .... The Company also leases certain engineering design software tools under non-cancelable operating leases expiring through fiscal 2005. Annual future minimum payments as of March 31, 2005, are as follows (in thousands): Fiscal Years Ending March 31, Operating Leases Capital Leases 2006 ...2007...

  • Page 91
    ... net revenues for period indicated. Net revenues by geographic region were as follows (in thousands): * * 18% 11% 17% 14% Fiscal Years Ended March 31, 2005 2004 2003 United States of America ...Other North America ...Europe and Israel ...Asia ...Other ... $121,527 21,003 50,124 59,748 1,354 $253...

  • Page 92
    ...and intends to defend against the lawsuit vigorously. In April 2005, Cicada Semiconductor Corporation, a Delaware corporation and now a ...investigate the allegations. In February 2003, the special litigation committee issued a report of its investigation, which concluded that it was not in JNI's ...

  • Page 93
    ...000, and $800,000 for such charters during the years ended March 31, 2005, 2004 and 2003, respectively. These amounts were within the limits on such ...approved by the board of directors. 14. Subsequent Events On April 1, 2005, the Company paid approximately $29 million, net of its insurers coverage ...

  • Page 94
    ... unaudited and has been prepared on the same basis as the annual consolidated financial statements. In our opinion, this quarterly information reflects ... quarter of fiscal 2005 include a $13.4 million charge for in-process research and development expenses related to the purchases of 3ware, Inc. and...

  • Page 95
    ... of Period Charged to Costs and Expenses Charged to Other Accounts Balance At End Of Period Description Deductions Year ended March 31, 2005: Allowance for doubtful accounts ...Year ended March 31, 2004: Allowance for doubtful accounts ...Year ended March 31, 2003: Allowance for doubtful accounts...

  • Page 96
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  • Page 97
    ... Sequence Drive, San Diego, CA 92121 * Term ends at the 2005 annual meeting of stockholders (1) Member of the Compensation Committee (2) Member of the... stockholders and other interested investors. For additional copies of this report, or other information, please contact: AMCC Debra K. Hart Director...

  • Page 98
    This Annual Report, including the annual report on Form 10-K for the year ended March 31, 2005 included herewith, contains forward-looking...looking statements contained in this Annual Report. 6290 Sequence Drive San Diego, CA 92121-4358 www.amcc.com AMCC and 3ware are registered trademarks and ...