Exhibit 99.1

FOR ADDITIONAL INFORMATION:

Investor Relations Contact:	Media Contact:
Applied Micro Circuits Corporation	Applied Micro Circuits Corporation
Bob Gargus	Gilles Garcia
Phone: (408) 542-8752	Phone: (408) 542-8687
E-Mail: bgargus@amcc.com	E-Mail: ggarcia@amcc.com

Wednesday, July 30, 2008

Company Press Release

APPLIED MICRO CIRCUITS CORPORATION ANNOUNCES
FIRST QUARTER FISCAL 2009 FINANCIAL RESULTS IN LINE WITH
REVENUE GUIDANCE

Selected Q1 Highlights

• Q1 net revenues of $74.1 million, up 48% year over year and 4% sequentially.

• Q1 GAAP net loss of $5.2 million or $(0.08) per share.

• Q1 non-GAAP net income increased 29% sequentially to $7.7 million or $0.12 per share.

• Total short and long term cash increased to approximately $200 million.

• Signed major IP monetization contract for non-core patents valued at $33 million.

• AMCC doubled the performance of its storage processors by introducing the 1.2GHz PowerPC 460SX.

• AMCC announced the 1.4GHz PowerPC 460GTx for networking, wireless infrastructure, and general purpose control applications.

• Announced next generation Ethernet WDM solutions with BTI Systems.

SUNNYVALE, Calif., —July 30, 2008—Applied Micro Circuits Corporation [NASDAQ: AMCC] today reported its financial results for the first quarter of fiscal 2009.

Net revenues for the first quarter of fiscal 2009 were $74.1 million compared to $71.5 million reported in the fourth quarter of fiscal 2008, representing a sequential growth of 4% and a growth of 48% over the $50.1 million reported in the first quarter of fiscal 2008.

The net loss on a generally accepted accounting principles (GAAP) basis for the first quarter of fiscal 2009 was $5.2 million or $(0.08) per share. The first quarter GAAP net loss compares with a net loss of $86.3 million or $(1.33) per share for the fourth quarter of fiscal 2008 and a net loss of $16.4 million or $(0.23) per share for the first quarter of fiscal 2008.

The non-GAAP net income for the first quarter of fiscal 2009 was $7.7 million or $0.12 per share, compared to the non-GAAP net income of $6.0 million or $0.09 per share in the fourth quarter of fiscal 2008. Non-GAAP net loss for the first quarter of fiscal 2008 was $7.3 million or $(0.10) per share. Non-GAAP net income as a percentage of revenue expanded from 8.4 percent in the fourth quarter to 10.4 percent in the first quarter.

“I am pleased with our financial results for the June quarter. Our revenue growth was at the upper end of our guidance. We expect revenues to further expand in the September quarter. Our product cycles remain strong and are improving” said Kambiz Hooshmand, president and chief executive officer.

Bob Gargus, chief financial officer commented, “We continued our focus on profitability, our non-GAAP gross margin improved to 58.1 percent of revenue from 55.5 percent of revenue last quarter while we maintained solid expense control. We were cash flow positive and our asset management – particularly inventory, continues to improve. Overall a very solid quarter and we are definitely moving in the right direction.”

AMCC reports its financial results in accordance with GAAP and also provides additional financial data that have not been prepared in accordance with GAAP. The non-GAAP results and other financial measures reported by the Company exclude certain items that are required by GAAP, such as restructuring charges, amortization of purchased intangibles, stock-based compensation charges, impairment of goodwill, strategic investment written off, other than temporary impairment on investments, tax provision related to the creation of deferred tax liability relating to a prior asset purchase acquisition transaction, payroll tax on certain stock option exercises and expenses related to stock option investigation and other litigation. Expenses related to stock option investigation consist primarily of fees paid to professional service firms in connection with the Company’s internal investigation of historical stock option grant practices and the resulting restatement of the Company’s financial statements, the investigations by the Securities and Exchange Commission and the U.S. Attorney’s office arising from the internal investigation and the defense of derivative lawsuits arising from the Company’s internal investigation and other litigation relates to an accrual made for a potential litigation settlement. Income taxes are adjusted to an estimated non-GAAP effective tax rate. These non-GAAP measures are not a substitute for GAAP measures and may not be consistent with the presentation used by other companies. The Company uses the non-GAAP financial measures to evaluate and manage its operations. The Company is providing this information to allow investors to perform additional financial analysis and because it is consistent with the financial models and estimates published by analysts who follow the Company. The attached schedule reconciles non-GAAP results and

other financial measures reported by the Company with the most directly comparable GAAP financial measures.

For More Information

AMCC management will be holding a conference call today, July 30, 2008, at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time to discuss additional details regarding the Company’s performance for the first quarter of fiscal 2009 and to provide guidance for the second quarter of fiscal 2009. You may access the conference call via any of the following:

Teleconference:	719-325-4845
Conference ID:	9506474
Web Broadcast:	http://investor.amcc.com/events.cfm
Replay:	719-457-0820 (available through August 6, 2008)

AMCC Overview

AMCC is a global leader in network and embedded Power Architecture processing, optical transport and storage solutions. Our products enable the development of converged IP-based networks offering high-speed secure data, high-definition video and high-quality voice for carrier, metropolitan, access and enterprise applications. AMCC provides networking equipment vendors with industry-leading network and communications processing, Ethernet, SONET, OTN and switch fabric solutions. AMCC’s 3ware SAS and SATA RAID product families deliver cost-effective, high-performance, high-capacity storage for enterprises and consumers worldwide for applications from the desktop to the data center. AMCC’s corporate headquarters are located in Sunnyvale, California. Sales and engineering offices are located throughout the world.

For further information regarding AMCC, please visit our web site at http://www.amcc.com.

AMCC and 3ware are registered trademarks of Applied Micro Circuits Corporation. The PowerPC name and logo are registered trademarks of IBM Corporation and used under license therefrom. All other trademarks are the property of their respective owners. 

This news release contains forward-looking statements that reflect the Company’s current view with respect to future events and financial performance, including statements regarding backlog and future revenues, and profitability. These forward-looking statements are only predictions based on current information and expectations and are subject to certain risks and uncertainties, including, but not limited to, customer demand for the Company’s products, the businesses of the Company’s major customers, reductions, rescheduling or cancellation of orders by the Company’s customers, successful and timely development of products, market acceptance of new products, and general economic conditions. More information about potential factors that could affect the Company’s business and financial results is included in the “Risk Factors” set forth in the Company’s Annual Report on Form 10-K for the year ended March 31, 2007, and the Company’s other filings with the Securities and Exchange Commission. Actual results could differ materially, as a result of such factors, from those set forth in the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are

qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the issuance of this press release.

-Financial Tables Follow-

APPLIED MICRO CIRCUITS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)

	June 30,		March 31,
	2008		2008
ASSETS
Current assets:
Cash, cash equivalents and short-term investments	$	194,408	$	142,889
Accounts receivable, net		29,433		28,800
Inventories		33,928		37,966
Other current assets		10,646		11,340
Total current assets		268,415		220,995
Marketable securities		5,186		51,919
Property and equipment, net		27,726		25,995
Goodwill		264,130		264,130
Purchased intangibles		50,124		56,025
Other assets		13,843		13,783
Total assets	$	629,424	$	632,847
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	24,366	$	25,518
Other current liabilities		21,533		22,659
Total current liabilities		45,899		48,177
Deferred tax liability		4,178		3,958
Stockholders’ equity		579,347		580,712
Total liabilities and stockholders’ equity	$	629,424	$	632,847

APPLIED MICRO CIRCUITS CORPORATION
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	Three Months Ended
	June 30,			March 31,			June 30,
	2008			2008			2007
Net revenues	$	74,060		$	71,534		$	50,135
Cost of revenues		35,850			36,531			26,498
Gross profit		38,210			35,003			23,637
Operating expenses:
Research and development		23,481			22,892			25,482
Selling, general and administrative		16,613			15,869			16,063
Amortization of purchased intangibles		1,320			1,320			1,345
Impairment of goodwill		—			71,494			—
Restructuring charges		(258	)		1,516			(32	)
Litigation settlement		—			1,125			—
Option investigation related expenses, net		347			1,363			292
Total operating expenses		41,503			115,579			43,150
Operating loss		(3,293	)		(80,576	)		(19,513	)
Interest and other (expense) income, net		(1,327	)		(1,551	)		3,076
Loss before income taxes		(4,620	)		(82,127	)		(16,437	)
Income tax expense (benefit)		554			4,182			(17	)
Net loss	$	(5,174	)	$	(86,309	)	$	(16,420	)
Basic and diluted loss per share:
Loss per share	$	(0.08	)	$	(1.33	)	$	(0.23	)
Shares used in calculating basic and diluted loss per share		64,864			64,886			70,414

APPLIED MICRO CIRCUITS CORPORATION
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME (LOSS)
(in thousands, except per share data)
(unaudited)

	Three Months Ended
	June 30,			March 31,			June 30,
	2008			2008			2007
GAAP net loss	$	(5,174	)	$	(86,309	)	$	(16,420	)
Adjustments:
Stock-based compensation charges		3,208			3,078			2,620
Amortization of purchased intangibles		5,901			5,903			6,036
Impairment of goodwill		—			71,494			—
Restructuring charges		(258	)		1,516			(32	)
Other than temporary investment impairment		3,393			836			—
Impairment of strategic investment		—			3,000			—
Payroll taxes on certain stock option exercises		—			—			2
Litigation settlement		—			1,125			—
Option investigation related expenses, net		347			1,363			292
Income tax adjustments		315			3,996			209
Total GAAP to Non-GAAP adjustments		12,906			92,311			9,127
Non-GAAP net income (loss)	$	7,732		$	6,002		$	(7,293	)
Diluted income (loss) per share	$	0.12		$	0.09		$	(0.10	)
Shares used in calculating diluted income (loss) per share		65,104			65,039			70,414
Income (loss) per share:
GAAP income (loss) per share	$	(0.08	)	$	(1.33	)	$	(0.23	)
GAAP to non-GAAP adjustments		0.20			1.42			0.13
Non-GAAP income (loss) per share	$	0.12		$	0.09		$	(0.10	)
Reconciliation of shares used in calculating the non-GAAP income per share:
Shares used in calculating the basic and diluted income(loss) per share		64,864			64,886			70,414
Adjustment for dilutive securities		240			153			—
Non-GAAP shares used in the EPS calculation		65,104			65,039			70,414

APPLIED MICRO CIRCUITS CORPORATION
SCHEDULE OF SELECTED GAAP TO NON-GAAP ADJUSTMENTS
(in thousands)
(unaudited)

The following schedule reconciles selected line items from the GAAP basis statements of operations to the non-GAAP statements of operations:

	Three Months Ended
	June 30,			March 31,			June 30,
	2008			2008			2007
GROSS PROFIT:
GAAP gross profit	$	38,210		$	35,003		$	23,637
Amortization of purchased intangibles		4,581			4,583			4,691
Stock-based compensation expense		214			135			72
Non-GAAP gross profit	$	43,005		$	39,721		$	28,400
OPERATING EXPENSES:
GAAP operating expenses	$	41,503		$	115,579		$	43,150
Amortization of purchased intangibles		(1,320	)		(1,320	)		(1,345	)
Impairment of goodwill		—			(71,494	)		—
Stock-based compensation expense		(2,994	)		(2,943	)		(2,548	)
Restructuring charges		258			(1,516	)		32
Payroll taxes on certain stock option exercises		—			—			(2	)
Litigation settlement		—			(1,125	)		—
Option investigation related expenses, net		(347	)		(1,363	)		(292	)
Non-GAAP operating expenses	$	37,100		$	35,818		$	38,995
INTEREST AND OTHER INCOME, NET
GAAP interest and other (expense) income, net	$	(1,327	)	$	(1,551	)	$	3,076
Other than temporary investment impairment		3,393			836			—
Impairment of strategic investment		—			3,000			—
Non-GAAP interest and other income, net	$	2,066		$	2,285		$	3,076
INCOME TAX EXPENSE (BENEFIT):
GAAP income tax expense (benefit)	$	554		$	4,182		$	(17	)
Income tax adjustments		(315	)		(3,996	)		(209	)
Non-GAAP income tax expense (benefit)	$	239		$	186		$	(226	)
RESEARCH AND DEVELOPMENT
GAAP research and development	$	23,481		$	22,892		$	25,482
Stock-based compensation expense		(1,337	)		(1,349	)		(1,055	)
Payroll taxes on certain stock option exercises		—			—			(2	)
Non-GAAP research and development	$	22,144		$	21,543		$	24,425
SELLING, GENERAL AND ADMINISTRATIVE
GAAP selling, general and administrative	$	16,613		$	15,869		$	16,063
Stock-based compensation expense		(1,657	)		(1,594	)		(1,493	)
Non-GAAP selling, general and administrative	$	14,956		$	14,275		$	14,570

APPLIED MICRO CIRCUITS CORPORATION
CONSOLIDATED STATEMENT OF CASHFLOWS
($ in thousands)
(unaudited)

	Three Months Ended June 30,
	2008			2007
Operating activities:
Net loss	$	(5,174	)	$	(16,420	)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities
Depreciation and amortization		1,742			1,633
Amortization of purchased intangibles		5,901			6,036
Stock-based compensation expense :
Stock options		2,110			2,339
Restricted stock units		1,098			281
Impairment of marketable securities		3,393			—
Net gain on disposal of property		29			(6	)
Changes in operating assets and liabilities:
Accounts receivable		(633	)		10,848
Inventories		4,038			(3,548	)
Other assets		634			573
Accounts payable		(1,152	)		(8,783	)
Accrued payroll and other accrued liabilities		(1,475	)		(1,802	)
Deferred tax liability		220			—
Deferred revenue		349			53
Net cash provided by (used for) operating activities		11,080			(8,796	)
Investing activities:
Proceeds from sales and maturities of investments		138,248			118,105
Purchases of investments		(135,162	)		(112,237	)
Purchase of property, equipment and other assets		(3,502	)		(1,097	)
Proceeds from sale of property, equipment and other assets		—			7
Net cash provided by (used for) investing activities		(416	)		4,778
Financing activities:
Proceeds from issuance of common stock		78			599
Open market repurchases of Company stock		—			(9,138	)
Funding of structured stock repurchase agreements		—			(10,000	)
Other		(109	)		(172	)
Net cash used for financing activities		(31	)		(18,711	)
Net decrease in cash and cash equivalents		10,633			(22,729	)
Cash and cash equivalents at beginning of the period		42,689			51,595
Cash and cash equivalents at end of the period	$	53,322		$	28,866