San Diego, CA – Applied Micro Circuits Corp. reported its financial results for 1Q03, and announced a work force reduction, by which it expects to reduce headcount by approximately 275 employees, or about 25%, from the level of March 2002.

The reduction, which the company expects to complete by the end of its current fiscal year, will result from a combination of layoffs, attrition, and closure of the company’s wafer fabrication facility.

Net revenues 1Q03 were $30.2 million, a decrease of 27% from the $41.2 million reported in the same period of FY02. Sequentially, net revenues for 1Q03 were consistent with the net revenues of $30.1 million reported in the prior quarter.

The compensation committee of the board of directors reduced Chairman and CEO Dave Rickey’s salary by 27%, back to his salary level of three years ago when the company had comparable net revenues. President and COO Doug Spreng’s salary was also reduced.