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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, market and support high-performance integrated circuit, or IC, products, embedded
processors, and storage components for the communications and storage equipment markets. Our products are
essential for the transport, processing, switching, routing and storage of information worldwide. In the
communications market, we utilize a combination of design expertise coupled with system-level knowledge and
multiple technologies to offer IC products, as well as printed circuit board assemblies or PCBAs, for wireline and
wireless communications equipment such as wireless base stations, edge switches, routers, and gateways, metro
transport platforms and core switches and routers. We generate revenues in the communications market primarily
through sales of our IC products, embedded processors and PCBAs to communications equipment manufacturers,
such as Alcatel, Ciena, Cisco, Fujitsu, Hitachi, Huawei, JDS Uniphase, Juniper, Lucent, Marconi, NEC, Nortel,
Siemens, and Tellabs, who in turn supply their equipment principally to communications service providers. In the
storage market, we blend systems and software expertise with high-performance, high-bandwidth silicon
integration to deliver high-performance, high capacity Serial ATA, or SATA, storage solutions for emerging
storage applications such as disk-to-disk backup, near-line storage, network-attached storage, or NAS, video, and
high-performance computing; and various PowerPC control plane processing solutions ideally suited for
Redundant Array of Integrated Disks, or RAID, controllers and storage area networking, or SAN, equipment. We
generate revenues in the storage market primarily through sales of our SATA storage solutions through our
distribution channel partners who in turn sell to enterprises, small and mid-size businesses, value added resellers,
or VARs, systems integrators and retail consumers and through sales of our Fibre Channel hardware and software
products and embedded processors, to original equipment manufacturers, or OEMs, such as Brocade, Hewlett
Packard, Hitachi Data Systems, Network Appliance, StorageTek and Sun Microsystems.