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Applied Micro ships microserver chips in challenge to Intel

30
Jul
2014

By Noel Randewich SAN FRANCISCO (Reuters) – Applied Micro Circuits has begun shipping a new kind of low-power server chip that might challenge heavyweight Intel in cutting-edge data centers. The Sunnyvale, California, company disappointed Wall Street on Tuesday with first fiscal quarter revenue and second-quarter revenue outlook that missed expectations due to a declining legacy business, sending its shares 4 percent lower after hours. In the quarter that ended in June, Applied Micro Circuits recognized its first revenue from the chips – about a $1 million – and the company said it expects “meaningful” revenue from the chips in the quarters ending in December and March as shipments build.

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