8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): January 27, 2009

Applied Micro Circuits Corporation

(Exact name of registrant as specified in its charter)

DELAWARE	000-23193	94-2586591
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

215 Moffett Park Drive, Sunnyvale, California 94089
(Address of principal executive offices)

(408) 542-8600
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

     Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EX-99.1

Item 2.05. Costs Associated with Exit or Disposal Activities.

     On January 27, 2009, the board of directors of Applied Micro Circuits Corporation (the “Company”) approved a restructuring plan to reorganize the Company’s operations and reduce its workforce to realign and focus its resources on its core competencies. The plan includes eliminating job redundancies and reducing the Company’s current workforce by slightly over 100 people. Additionally, the company implemented reductions to current compensation levels ranging from 13-25% at the executive level and 7-11% for all other employees. These compensation reductions will be effective April 1, 2009. The employees affected by the plan were informed on February 11, 2009. The Company expects to incur cash expenditures of approximately $2.9 million to $3.3 million during this quarter for employee severances and expects to incur additional non-cash charges related to this restructuring plan. The Company anticipates that the restructuring plan will reduce its ongoing operating expenses by approximately $14 million to $16 million annually.

Item 9.01 Financial Statements and Exhibits

     (d) Exhibits.

     99.1      Press release dated February 11, 2009.

     This current report on Form 8-K contains forward-looking statements, including, but not limited to, statements regarding the expected costs of the Company’s restructuring plan and the anticipated reduction of ongoing operating expenses to the Company as a result of the plan. 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, the Company’s ability to implement the restructuring plan to the extent currently anticipated, possible changes in the size and components of the operating expense reductions, the impact of personnel reductions on product development efforts, the Company’s ability to project accurately cost savings and changes from the plan 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, 2008, 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 current report on Form 8-K. All forward-looking statements are qualified in their entirety by this cautionary statement.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Applied Micro Circuits Corporation
Date: February 11, 2009	By:	/s/ Cynthia J. Moreland
		Cynthia J. Moreland
		Vice President and General Counsel

INDEX TO EXHIBITS

     99.1      Press release dated February 11, 2009.

EX-99.1

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, February 11, 2009
Company Press Release

APPLIED MICRO CIRCUITS CORPORATION ANNOUNCES REDUCTION IN FORCE

SUNNYVALE, Calif., —February 11, 2009 — Applied Micro Circuits Corporation [NASDAQ: AMCC] today announced compensation reductions and a reduction in its worldwide workforce which impacts slightly over 100 people. This is expected to reduce annual operating expenses by an estimated $14 million to $16 million for AMCC’s Fiscal Year 2010.

“We are committed to managing our Operating Expenses prudently through this economic downturn. We strive to remain, as much as possible, cash flow neutral. As a part of this, we have also sharpened our focus on key customers and key products. As a result, we are creating a more efficient R&D, SG&A, and operations team that will deliver best in class solutions to Process, Transport, and Store information. We are confident that our strategic capabilities remain intact and our sharpened focus will yield even more significant design wins than the ones we have already secured.” Said Kambiz Hooshmand, AMCC’s President and Chief Executive Officer.

AMCC Overview

AMCC is a global leader in energy efficient sustainable solutions to Process, Transport, and Store information for the next generation of internet data center and carrier central office. A leader in high speed signal processing, IP & Ethernet packet processing, storage controllers, and processors, AMCC’s patented innovations provide high value solutions in Telecom, Enterprise and Consumer Applications.

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.

Forward-Looking Statements

This news release contains forward-looking statements, including, but not limited to, statements regarding the expected costs of the Company’s restructuring plan and the anticipated reduction of ongoing operating expenses to the Company as a result of the plan. 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, the Company’s ability to implement the restructuring plan to the extent currently anticipated, possible changes in the size and components of the operating expense reductions, the impact of personnel reductions on product development efforts, the Company’s ability to project accurately cost savings and changes from the plan 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, 2008, 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 news release. All forward-looking statements are qualified in their entirety by this cautionary statement.