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Press release from Business Wire

AppliedMicro Ships 2 Millionth 10G OTN Port

<p class='bwalignc'> <i>10-Gigabit Optical Transport Network technology reaching strong growth levels as AppliedMicro shipments double in less than 18 months</i> </p>

Wednesday, July 25, 2012

AppliedMicro Ships 2 Millionth 10G OTN Port09:10 EDT Wednesday, July 25, 2012 SUNNYVALE, Calif. (Business Wire) -- Applied Micro Circuits Corporation, or AppliedMicro (Nasdaq:AMCC), today announced that it has shipped two million 10G Optical Transport Network (OTN) ports to system providers, who face growing demand to rapidly expand the capacity of metro and core network infrastructure. The company reached the milestone less than 18 months after it achieved one million 10G OTN port shipments on March 7, 2011, indicating an acceleration of the adoption of OTN to help meet the growing needs for an increasingly connected global society. “The demand for 10G OTN is growing at a healthy rate, creating a sustainable market where technology advances at the same pace,” said Francesco Caggioni, AppliedMicro's Director of Strategic Marketing. “The milestone of two million OTN ports shipped allows AppliedMicro to maintain its leadership in this market. As demand remains high for our 10-Gigabit solutions in both the transponder and LAN/WAN/OTN Carrier Ethernet markets, our 40G and 100G OTN solutions are now in customer labs and early field deployment will soon expand our company's footprint. Interestingly, the rapid growth of 10G OTN ports has been bolstered by its increased use in edge routers, a market that AppliedMicro pioneered more than 4 years ago.” Annual global IP traffic is set to quadruple over the next four years from 369 Exabytes in 2011 to an estimated 1.3 billion Zettabytes in 2016, according to the recent projections by the Cisco Systems Virtual Networking Index. Growing bandwidth requirements are driven by higher volumes of connected devices and increased use of video, cloud computing and social networking applications. AppliedMicro OTN products help datacom and telecom service providers expand the capacity of their networks to meet this demand. “Infonetics' recent survey shows that OTN switching will play a significant role in the regional and long haul networks of most carriers,” said Andrew Schmitt, Principal Analyst, Optical for Infonetics Research. “OTN switching and transport hardware together made up 45 percent of global optical equipment spending in the first half of 2011, and we expect them to grow to 70 percent of the total by 2015, or $10.6 billion. AppliedMicro has been an avid supporter of OTN since its inception and is a major supplier of OTN silicon to equipment makers.” AppliedMicro is one of the early pioneers of OTN and first started shipping 10G OTN products in 2004. The company is now shipping its 4th generation family and its OTN products include Rubicon, Yahara, Pemaquid, PQx and its 100Gbps SoftSilicon® OTN Processors. AppliedMicro is providing Tier-1 customers with full OTN solutions with increased levels of integration for the continued expansion of network capacity, routing and switching speeds. AppliedMicro Overview AppliedMicro is a global leader in energy conscious computing solutions for telco, enterprise, data center, consumer and SMB applications. With a heritage of innovation in high-speed connectivity and high-performance computing, AppliedMicro delivers silicon solutions that dramatically lower total cost of ownership for service provider and data center infrastructures. AppliedMicro's corporate headquarters are located in Sunnyvale, California. Sales and engineering offices are located throughout the world. For further information regarding AppliedMicro, visit the company's Web site at http://www.apm.com. Applied Micro Circuits Corporation, AMCC, AppliedMicro and the AppliedMicro logo are trademarks or registered trademarks of Applied Micro Circuits Corporation. All other product or service names are the property of their respective owners. AppliedMicroTally Kaplan Porat, 408-702-3139 (Corporate)(c) 408-483-8370tkaplan@apm.comorAppliedMicroTom Murphy, 831-661-0260 (Media)(c) 831-402-4142tmurphy@apm.com