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Analyst Blog

Applied Micro Circuits Corporation (AMCC - Analyst Report) recently announced the opening of its new design center in Bangalore, India.

The company had earlier opened a design center in Pune. The new center in Bangalore is expected to provide advanced design and development of AppliedMicro’s computing and connectivity solutions, thereby offering significant value to its technology technological capabilities.

The aim behind the new design center is to empower the company to meet the rapidly brewing demand for “Just-Right” compute and connectivity products. These products are designed for enterprise and cloud data centers through the development of new products.

These new products are expected to reduce energy and total cost of ownership of data center infrastructure in a significant way.

Applied Micro continues to design innovative products in the cloud computing space. The company expects to deliver the latest technologically advanced products provided by both the Bangalore and Pune centers.

The design center Bangalore, the technology hub of India, is expected to draw the best talent in the industry and boost the company’s progress in cloud computing. The design center is expected to facialiate the company’s strategy in the development of its flagship product, "X-Gene," which is a processor required for next-generation cloud computing, wireless infrastructure, enterprise networking, and storage and security applications.

The center is also expected to accelerate the development of AppliedMicro’s next generation Optical Transport Network (OTN) and physical layer (PHY) products.

Besides, AppliedMicro has design centers in North America, Denmark and Vietnam, apart from Bangalore and Pune in India.

The company continues to struggle amidst a weak microenvironment.  We continue to maintain an Underperform recommendation on Applied Micro. However, in the short run, we have a Zacks #4 Rank on the stock, which translates into a short-term rating of Sell.

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