Exhibit 99.1

FOR ADDITIONAL INFORMATION:
Investor Relations Contact:	Media/Editorial Contact:
Applied Micro Circuits Corporation	The Ardell Group
Scott Dawson	Angela Edgerton
Phone: (858) 535-4217	Phone: (858) 792-2941
E-Mail: sdawson@amcc.com	E-Mail: angela@ardellgroup.com

Wednesday, October 26, 2005

Company Press Release

APPLIED MICRO CIRCUITS CORPORATION ANNOUNCES

SECOND QUARTER FISCAL 2006 FINANCIAL RESULTS

Selected Q2 Highlights:

• Q2 Net Revenues of $64.9 million and Q2 GAAP Net Loss of $6.4 million or $(0.02) per share

• Q2 Pro Forma Net Income improved to $4.0 million or $0.01 per share versus $3.1 million the prior quarter

• Planned reductions in operating expenses achieved one quarter ahead of schedule

• Announced and began shipping 9550SX SATA II RAID controller for high port market

SAN DIEGO—October 26, 2005—Applied Micro Circuits Corporation [NASDAQ: AMCC] today reported its financial results for the second quarter of fiscal 2006.

Net revenues for the second quarter of fiscal 2006 were $64.9 million compared to the $64.7 million reported in the first quarter of fiscal 2006 and $61.1 million reported in the second quarter of fiscal 2005.

The net loss on a generally accepted accounting principles (GAAP) basis for the second quarter of fiscal 2006 was $6.4 million or $(0.02) per share, compared with a net loss of $4.2 million or $(0.01) per share for the first quarter of fiscal 2006 and a net loss of $18.3 million or $(0.06) per share for the second quarter of fiscal 2005.

The pro forma net income for the second quarter of fiscal 2006 was $4.0 million or $0.01 per share, compared to the pro forma net income of $3.1 million or $0.01 per share in the first quarter of fiscal 2006 and the pro forma net loss of $4.1 million or $(0.01) per share in the second quarter of fiscal 2005.

Net revenues for the six months ended September 30, 2005 were $129.6 million compared to $128.5 million reported for the six months ended September 30, 2004.

The GAAP net loss for the six months ended September 30, 2005 was $10.6 million or $(0.03) per share, compared to the net loss of $40.1 million or $(0.13) per share for the six months ended September 30, 2004. The pro forma net income for the six months ended September 30, 2005 was $7.0 million or $0.02 per share, compared with the pro forma net loss of $2.0 million or $(0.01) per share for the six months ended September 30, 2004.

“This was a solid quarter for AMCC. We continued to execute upon our strategy and manage expenses tightly,” said Kambiz Hooshmand, President and Chief Executive Officer. “We delivered our third consecutive quarter of pro forma operating profitability and we continue to expand our top and bottom line despite significant product line transitions. I am particularly pleased with our exciting new 9550SX SATA II RAID controller announcement. The 9550SX delivers the fastest SATA RAID performance available on the market today and we believe the 9550SX will accelerate adoption of SATA RAID products for the remainder of the year.”

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, and payroll tax on certain 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 (loss), which quantifies the amounts excluded from pro forma results.

For More Information

AMCC management will be holding a conference call today, October 26, 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 second quarter of fiscal 2006 and to provide guidance for the third quarter of fiscal 2006. You may access the conference call via any of the following:

Teleconference:	913-981-4902
Conference ID:	6075994
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 product adoption and demand. 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, integration of acquired businesses, manufacturing capacity and execution, 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 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 reuse 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)

	Sept 30, 2005		March 31, 2005
	(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term investments	$	369,507	$	423,392
Accounts receivable, net		26,365		28,601
Inventories		18,697		18,014
Other current assets		14,937		51,448
Total current assets		429,506		521,455
Property and equipment, net		41,076		44,461
Other assets		2,493		1,965
Goodwill and purchased intangibles		521,746		534,514
Total assets	$	994,821	$	1,102,395
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	25,984	$	24,016
Other current liabilities		32,132		101,147
Current portion of long-term debt & capital leases		—		34
Total current liabilities		58,116		125,197
Stockholders’ equity		936,705		977,198
Total liabilities and stockholders’ equity	$	994,821	$	1,102,395

APPLIED MICRO CIRCUITS CORPORATION

GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

	Three months ended									Six months ended
	Sept 30, 2005			June 30, 2005			Sept 30, 2004			Sept 30, 2005			Sept 30, 2004
Net revenues	$	64,935		$	64,673		$	61,069		$	129,608		$	128,471
Cost of revenues		31,093			30,833			31,529			61,926			63,021
Gross profit		33,842			33,840			29,540			67,682			65,450
Operating expenses:
Research and development		23,161			22,974			31,702			46,135			62,692
Selling, general and administrative		14,344			15,550			15,298			29,894			29,676
Stock-based compensation:
Research and development		674			696			915			1,370			1,947
Selling, general and administrative		783			785			2,202			1,568			3,525
Amortization of purchased intangibles		1,107			1,267			1,962			2,374			3,519
Acquired in-process research and development		—			—			—			—			13,400
Restructuring charges		3,559			—			310			3,559			310
Total operating expenses		43,628			41,272			52,389			84,900			115,069
Operating loss		(9,786	)		(7,432	)		(22,849	)		(17,218	)		(49,619	)
Interest and other income, net		3,537			3,404			4,530			6,941			9,811
Loss before income taxes		(6,249	)		(4,028	)		(18,319	)		(10,277	)		(39,808	)
Income tax expense		175			176			—			351			335
Net loss	$	(6,424	)	$	(4,204	)	$	(18,319	)	$	(10,628	)	$	(40,143	)
Basic and diluted loss per share:
Loss per share	$	(0.02	)	$	(0.01	)	$	(0.06	)	$	(0.03	)	$	(0.13	)
Shares used in calculating basic and diluted loss per share		305,476			306,327			310,128			305,902			310,824

APPLIED MICRO CIRCUITS CORPORATION

PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

	Three months ended							Six months ended
	Sept 30, 2005		June 30, 2005		Sept 30, 2004			Sept 30, 2005		Sept 30, 2004
Net revenues	$	64,935	$	64,673	$	61,069		$	129,608	$	128,471
Cost of revenues		25,874		25,611		23,823			51,485		48,458
Gross profit		39,061		39,062		37,246			78,123		80,013
Operating expenses:
Research and development		23,161		22,974		31,702			46,135		62,692
Selling, general and administrative		14,344		15,550		15,298			29,894		29,674
Total operating expenses		37,505		38,524		47,000			76,029		92,366
Operating income (loss)		1,556		538		(9,754	)		2,094		(12,353	)
Interest and other income, net		3,537		3,404		4,530			6,941		9,811
Income (loss) before income taxes		5,093		3,942		(5,224	)		9,035		(2,542	)
Income tax expense (benefit)		1,120		867		(1,149	)		1,987		(559	)
Net income (loss)	$	3,973	$	3,075	$	(4,075	)	$	7,048	$	(1,983	)
Diluted income (loss) per share:
Income (loss) per share	$	0.01	$	0.01	$	(0.01	)	$	0.02	$	(0.01	)
Shares used in calculating diluted income (loss) per share		307,156		307,357		310,128			307,257		310,824

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 NET LOSS TO PRO FORMA NET INCOME (LOSS)

(unaudited)

(in thousands)

	Three months ended									Six months ended
	Sept 30, 2005			June 30, 2005			Sept 30, 2004			Sept 30, 2005			Sept 30, 2004
GAAP net loss	$	(6,424	)	$	(4,204	)	$	(18,319	)	$	(10,628	)	$	(40,143	)
Adjustments:
Stock-based compensation related to acquired companies		1,478			1,507			3,246			2,985			5,756
Amortization of purchased intangibles		6,305			6,463			9,539			12,768			17,798
Restructuring costs		3,559			—			310			3,559			310
Acquired in-process research and development		—			—			—			—			13,400
Payroll taxes on certain stock option exercises		—			—			—			—			2
Income tax adjustments		(945	)		(691	)		1,149			(1,636	)		894
Total GAAP to pro forma adjustments		10,397			7,279			14,244			17,676			38,160
Pro forma net income (loss)	$	3,973		$	3,075		$	(4,075	)	$	7,048		$	(1,983	)

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							Six months ended
	Sept 30, 2005		June 30, 2005		Sept 30, 2004			Sept 30, 2005		Sept 30, 2004
GROSS PROFIT:
GAAP gross profit	$	33,842	$	33,840	$	29,540		$	67,682	$	65,450
Amortization of purchased intangibles		5,198		5,196		7,577			10,394		14,279
Stock-based compensation related to acquired companies		21		26		129			47		284
Pro forma gross profit	$	39,061	$	39,062	$	37,246		$	78,123	$	80,013
OPERATING EXPENSES:
GAAP operating expenses	$	43,628	$	41,272	$	52,389		$	84,900	$	115,069
Amortization of purchased intangibles		1,107		1,267		1,962			2,374		3,519
Acquired in-process research and development		—		—		—			—		13,400
Stock-based compensation related to acquired companies		1,457		1,481		3,117			2,938		5,472
Restructuring costs		3,559		—		310			3,559		310
Payroll taxes on certain stock option exercises		—		—		—			—		2
Pro forma operating expenses	$	37,505	$	38,524	$	47,000		$	76,029	$	92,366
INCOME TAX EXPENSE (BENEFIT):
GAAP income tax expense	$	175	$	176	$	—		$	351	$	335
Income tax adjustments		945		691		(1,149	)		1,636		(894	)
Pro forma income tax expense (benefit)	$	1,120	$	867	$	(1,149	)	$	1,987	$	(559	)