Applied Micro Circuits Sued for Securities Fraud According to Schiffrin & Barroway, LLP

Apr 20, 2001, 01:00 ET from Schiffrin & Barroway, LLP

    BALA CYNWYD, Pa., April 20 /PRNewswire Interactive News Release/ -- The
 following statement was issued today by the law firm of Schiffrin & Barroway,
 LLP:
     Notice is hereby given that a class action lawsuit was filed in the United
 States District Court for the Southern District of California on behalf of all
 purchasers of the common stock of Applied Micro Circuits Corporation
 (Nasdaq:   AMCC) from November 30, 2000 through February 5, 2001, inclusive (the
 "Class Period").
     If you wish to discuss this action or have any questions concerning this
 notice or your rights or interests with respect to these matters, please
 contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Robert B. Weiser,
 Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
 info@sbclasslaw.com.
     The complaint charges Applied Micro Circuits Corporation and certain of
 its officers and directors with issuing false and misleading statements
 concerning the Company's operations and prospects for Q4 2001 and beyond.
 Specifically, the complaint alleges that, throughout the Class Period,
 defendants misrepresented that: (i) Applied Micro Circuits would achieve 16%
 to 20% sequential growth for the fourth quarter 2001, compared with analysts'
 forecasts of 13% growth; (ii) Applied Micro Circuits had $133 million in
 backlog, equal to 77% of its March 2001 forecast, and that this backlog was
 solid; (iii) the increase in the Company's Days Sales Outstanding in the third
 quarter was not attributable to many of the financial problems its customers
 were having but rather due to a recent acquisition and back-end loading due to
 foundry issues; and (iv) the Company would conservatively report fourth
 quarter EPS of $0.17 and fiscal 2001 EPS of $0.57.
     The complaint further alleges that these statements were false and
 misleading because defendants were aware that Applied Micro Circuits had
 received large order cancellations and push-outs from many of its customers.
 In fact, on February 5, 2001, after the close of trading, defendants admitted
 that the Company had received large-scale order cancellations.  On the heels
 of this announcement, Applied Micro Circuits' stock price plunged from its
 closing price of $70 on February 5, 2001 to as low as $53 on February 6, 2001.
     Defendants' misrepresentations caused the price of Applied Micro Circuits
 securities to be artificially inflated throughout the Class Period.  Making
 matters worse, the individual defendants named in this action took advantage
 of the artificial inflation in Applied Micro Circuits' stock price to dump
 nearly $100 million of their own shares on unsuspecting investors.
     Plaintiff seeks to recover damages on behalf of class members and is
 represented by the law firm of Schiffrin & Barroway, LLP, who has significant
 experience and expertise prosecuting class actions on behalf of investors and
 shareholders.  For more information on Schiffrin & Barroway, or to sign-up to
 participate in this action online, please visit www.sbclasslaw.com.
     If you are a member of the class described above, you may, not later than
 June 11, 2001, move the Court to serve as lead plaintiff of the class, if you
 so choose.  In order to serve as lead plaintiff, however, you must meet
 certain legal requirements.
 
       CONTACT:  Schiffrin & Barroway, LLP
                 Marc A. Topaz, Esq.
                 Robert B. Weiser, Esq.
                 Three Bala Plaza East, Suite 400, Bala Cynwyd, PA  19004
                 1-888-299-7706 (toll free) or 1-610-667-7706
                 Or by e-mail at info@sbclasslaw.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X48573543
 
 

SOURCE Schiffrin & Barroway, LLP
    BALA CYNWYD, Pa., April 20 /PRNewswire Interactive News Release/ -- The
 following statement was issued today by the law firm of Schiffrin & Barroway,
 LLP:
     Notice is hereby given that a class action lawsuit was filed in the United
 States District Court for the Southern District of California on behalf of all
 purchasers of the common stock of Applied Micro Circuits Corporation
 (Nasdaq:   AMCC) from November 30, 2000 through February 5, 2001, inclusive (the
 "Class Period").
     If you wish to discuss this action or have any questions concerning this
 notice or your rights or interests with respect to these matters, please
 contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Robert B. Weiser,
 Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
 info@sbclasslaw.com.
     The complaint charges Applied Micro Circuits Corporation and certain of
 its officers and directors with issuing false and misleading statements
 concerning the Company's operations and prospects for Q4 2001 and beyond.
 Specifically, the complaint alleges that, throughout the Class Period,
 defendants misrepresented that: (i) Applied Micro Circuits would achieve 16%
 to 20% sequential growth for the fourth quarter 2001, compared with analysts'
 forecasts of 13% growth; (ii) Applied Micro Circuits had $133 million in
 backlog, equal to 77% of its March 2001 forecast, and that this backlog was
 solid; (iii) the increase in the Company's Days Sales Outstanding in the third
 quarter was not attributable to many of the financial problems its customers
 were having but rather due to a recent acquisition and back-end loading due to
 foundry issues; and (iv) the Company would conservatively report fourth
 quarter EPS of $0.17 and fiscal 2001 EPS of $0.57.
     The complaint further alleges that these statements were false and
 misleading because defendants were aware that Applied Micro Circuits had
 received large order cancellations and push-outs from many of its customers.
 In fact, on February 5, 2001, after the close of trading, defendants admitted
 that the Company had received large-scale order cancellations.  On the heels
 of this announcement, Applied Micro Circuits' stock price plunged from its
 closing price of $70 on February 5, 2001 to as low as $53 on February 6, 2001.
     Defendants' misrepresentations caused the price of Applied Micro Circuits
 securities to be artificially inflated throughout the Class Period.  Making
 matters worse, the individual defendants named in this action took advantage
 of the artificial inflation in Applied Micro Circuits' stock price to dump
 nearly $100 million of their own shares on unsuspecting investors.
     Plaintiff seeks to recover damages on behalf of class members and is
 represented by the law firm of Schiffrin & Barroway, LLP, who has significant
 experience and expertise prosecuting class actions on behalf of investors and
 shareholders.  For more information on Schiffrin & Barroway, or to sign-up to
 participate in this action online, please visit www.sbclasslaw.com.
     If you are a member of the class described above, you may, not later than
 June 11, 2001, move the Court to serve as lead plaintiff of the class, if you
 so choose.  In order to serve as lead plaintiff, however, you must meet
 certain legal requirements.
 
       CONTACT:  Schiffrin & Barroway, LLP
                 Marc A. Topaz, Esq.
                 Robert B. Weiser, Esq.
                 Three Bala Plaza East, Suite 400, Bala Cynwyd, PA  19004
                 1-888-299-7706 (toll free) or 1-610-667-7706
                 Or by e-mail at info@sbclasslaw.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X48573543
 
 SOURCE  Schiffrin & Barroway, LLP