EXHIBIT 99.1

FOR ADDITIONAL INFORMATION:

Investor Relations Contact:	Media/Editorial Contact:
Applied Micro Circuits Corporation Debra Hart	The Ardell Group Angela Edgerton
Phone: (858) 535-4217	Phone: (858) 792-2941
E-Mail: dhart@amcc.com	E-Mail: angela@ardellgroup.com

Wednesday, July 27, 2005

Company Press Release

APPLIED MICRO CIRCUITS CORPORATION ANNOUNCES

FIRST QUARTER FISCAL 2006 FINANCIAL RESULTS

SAN DIEGO—July 27, 2005—Applied Micro Circuits Corporation [NASDAQ: AMCC] today reported its financial results for the first quarter of fiscal 2006.

Net revenues for the first quarter of fiscal 2006 were $64.7 million compared to the $64.2 million reported in the fourth quarter of fiscal 2005 and $67.4 million reported in the first quarter of fiscal 2005.

The net loss on a GAAP basis for the first quarter of fiscal 2006 was $4.2 million or $(0.01) per share, compared with a net loss of $5.3 million or $(0.02) per share for the fourth quarter of fiscal 2005 and a net loss of $21.8 million or $(0.07) per share for the first quarter of fiscal 2005.

The pro forma net income for the first quarter of fiscal 2006 was $3.1 million or $0.01 per share, compared to the pro forma net income of $3.6 million or $0.01 per share in the fourth quarter of fiscal 2005 and the pro forma net income of $2.1 million or $0.01 per share in the first quarter of fiscal 2005.

“I’m pleased with our results for this quarter in that we delivered our third consecutive quarter of revenue growth and our second consecutive quarter of proforma operating profitability,” said Kambiz Hooshmand, President and Chief Executive Officer. “This represents my first full quarter at AMCC and I am very excited about the opportunities that lie ahead. AMCC’s legacy of technical innovation remains strong. In each of our businesses, we have unique and relevant differentiators that set us apart from our competition. We are keenly focused on leveraging these strengths in the growing segments of our served markets.”

AMCC reports its financial results in accordance with GAAP and additionally on a non-GAAP basis referred to as pro forma. These pro forma measures are not in accordance with, nor are they a substitute for, GAAP measures and they may not be consistent with the presentation used by

other companies. AMCC uses the pro forma financial measures to evaluate and manage the Company’s operations. AMCC is providing this information to investors to allow for the performance of additional financial analysis and because it is consistent with the financial models and estimates published by analysts who follow the Company.

The pro forma results exclude certain items which are required by GAAP such as restructuring costs, amortization of purchased intangibles, acquired in-process research and development charges, stock-based compensation charges related to acquired companies, litigation settlement costs and payroll tax effects of stock option exercises. Income taxes are adjusted to an estimated pro forma effective tax rate. See the attached reconciliation of the GAAP net loss to the pro forma net income, which quantifies the amounts excluded from pro forma basis results.

In addition, AMCC announced plans to restructure and reorganize its operations. The plan includes reducing approximately 5% of the current headcount by eliminating job redundancies. The company expects to incur a charge of approximately $2 million to $3 million in the second quarter of fiscal 2006 and anticipates that the restructuring plan will reduce ongoing operating expenses by approximately $1 million per quarter commencing in the third quarter of fiscal 2006.

AMCC will file a current report on Form 8-K regarding this press release with the U.S. Securities and Exchange Commission today. A copy of the filed current report will be accessible at www.sec.gov or through the company’s website provided below.

For More Information

AMCC management will be holding a conference call today, July 27, 2005, 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 2006 and to provide guidance for the second quarter of fiscal 2006. You may access the conference call via any of the following:

Teleconference:	913-981-4902
Conference ID:	7924460
Web Broadcast:	http://www.amcc.com
Replay:	719-457-0820
	(available for 7 days following the call)

AMCC Overview

AMCC provides the essential building blocks for the processing, moving and storing of information worldwide. The company blends systems and software expertise with high-performance, high-bandwidth silicon integration to deliver silicon, hardware and software solutions for global wide area networks (WAN), embedded applications such as PowerPC and programmable SOC architectures, storage area networks (SAN), and high-growth storage markets such as Serial ATA (SATA) RAID. AMCC’s corporate headquarters are located in San Diego, 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.

This news release contains forward-looking statements, including, but not limited to, statements regarding the company’s restructuring plan, including the planned reduction of ongoing operating expenses, the anticipated amounts of restructuring costs, the impact of the reduction in force on the company’s headcount, and the timetable for completion of the restructuring 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 according to the timetable and 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 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, 2005, and the company’s subsequent filings with the Securities and Exchange Commission. Actual results could differ materially from those set forth in the forward-looking statements as a result of such risk factors as well as other risks and uncertainties.

-Financial Tables Follow-

APPLIED MICRO CIRCUITS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in thousands)

	June 30, 2005		March 31, 2005
	(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term investments	$	379,371	$	423,392
Accounts receivable, net		23,694		28,601
Inventories		16,399		18,014
Other current assets		15,585		51,448
Total current assets		435,049		521,455
Property and equipment, net		44,668		44,461
Other assets		2,071		1,965
Goodwill and purchased intangibles		528,051		534,514
Total assets	$	1,009,839	$	1,102,395
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	19,747	$	24,016
Other current liabilities		33,691		101,147
Current portion of long-term debt & capital leases		7		34
Total current liabilities		53,445		125,197
Stockholders’ equity		956,394		977,198
Total liabilities and stockholders’ equity	$	1,009,839	$	1,102,395

APPLIED MICRO CIRCUITS CORPORATION

GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

	Three months ended
	June 30, 2005			March 31, 2005			June 30, 2004
Net revenues	$	64,673		$	64,204		$	67,402
Cost of revenues		30,833			30,073			31,492
Gross profit		33,840			34,131			35,910
Operating expenses:
Research and development		22,974			24,562			30,990
Selling, general and administrative		15,550			14,353			14,378
Stock-based compensation:
Research and development		696			708			1,032
Selling, general and administrative		785			763			1,323
Amortization of purchased intangibles		1,267			1,608			1,557
Acquired in-process research and development		—			—			13,400
Restructuring charges		—			1,233			—
Litigation settlement, net		—			350			—
Total operating expenses		41,272			43,577			62,680
Operating loss		(7,432	)		(9,446	)		(26,770	)
Interest and other income, net		3,404			4,108			5,281
Loss before income taxes		(4,028	)		(5,338	)		(21,489	)
Income tax expense		176			—			335
Net loss	$	(4,204	)	$	(5,338	)	$	(21,824	)
Basic and diluted loss per share:
Loss per share	$	(0.01	)	$	(0.02	)	$	(0.07	)
Shares used in calculating basic and diluted loss per share		306,327			308,448			311,519

APPLIED MICRO CIRCUITS CORPORATION

PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

	Three months ended
	June 30, 2005		March 31, 2005		June 30, 2004
Net revenues	$	64,673	$	64,204	$	67,402
Cost of revenues		25,611		24,833		24,635
Gross profit		39,062		39,371		42,767
Operating expenses:
Research and development		22,974		24,555		30,990
Selling, general and administrative		15,550		14,350		14,376
Total operating expenses		38,524		38,905		45,366
Operating income (loss)		538		466		(2,599	)
Interest and other income, net		3,404		4,108		5,281
Income before income taxes		3,942		4,574		2,682
Income tax expense		867		1,006		590
Net income	$	3,075	$	3,568	$	2,092
Diluted income per share:
Income per share	$	0.01	$	0.01	$	0.01
Shares used in calculating diluted income per share		307,357		310,420		318,327

The above pro forma statements are based on the Company’s consolidated statements of operations for the periods presented. This pro forma information is not prepared in accordance with generally accepted accounting principles and may not be consistent with the presentation used by other companies. The pro forma operating results are used by the Company’s management to evaluate the operating performance of the Company and are also consistent with the financial models and estimates published by analysts who follow the Company. See the schedule of pro forma adjustments for a reconciliation of the pro forma results to the GAAP basis results.

APPLIED MICRO CIRCUITS CORPORATION

RECONCILIATION OF GAAP TO PRO FORMA NET INCOME

(unaudited)

(in thousands)

	Three months ended
	June 30, 2005			March 31, 2005			June 30, 2004
GAAP net loss	$	(4,204	)	$	(5,338	)	$	(21,824	)
Adjustments:
Stock-based compensation related to acquired companies		1,507			1,514			2,510
Amortization of purchased intangibles		6,463			6,805			8,259
Restructuring costs		—			1,233			—
Litigation settlement, net		—			350			—
Acquired in-process research and development		—			—			13,400
Payroll taxes on certain stock option exercises		—			10			2
Income tax adjustments		(691	)		(1,006	)		(255	)
Total GAAP to pro forma adjustments		7,279			8,906			23,916
Pro forma net income	$	3,075		$	3,568		$	2,092

APPLIED MICRO CIRCUITS CORPORATION

SCHEDULE OF SELECTED PRO FORMA ADJUSTMENTS

(unaudited)

(in thousands)

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

	Three months ended
	June 30, 2005		March 31, 2005		June 30, 2004
GROSS PROFIT:
GAAP gross profit	$	33,840	$	34,131	$	35,910
Amortization of purchased intangibles		5,196		5,197		6,702
Stock-based compensation related to acquired companies		26		43		155
Pro forma gross profit	$	39,062	$	39,371	$	42,767
OPERATING EXPENSES:
GAAP operating expenses	$	41,272	$	43,577	$	62,680
Amortization of purchased intangibles		1,267		1,608		1,557
Acquired in-process research and development		—		—		13,400
Stock-based compensation related to acquired companies		1,481		1,471		2,355
Restructuring costs		—		1,233		—
Litigation settlement, net		—		350		—
Payroll taxes on certain stock option exercises		—		10		2
Pro forma operating expenses	$	38,524	$	38,905	$	45,366
INCOME TAX BENEFIT:
GAAP income tax expense	$	176	$	—	$	335
Income tax adjustments		691		1,006		255
Pro forma income tax expense	$	867	$	1,006	$	590