AMCC Sees Unusual Options Trading

Applied Micro Circuits Corporation (AMCC) options are seeing heavy trading ahead of the company’s first quarter earnings set to be released tomorrow afterhours. The semiconductor company saw 3,442 option contracts trade hands yesterday, which is 18x the average volume of 188 contracts. The vast majority of the contracts were the 7.50 August ‘08 calls, which suggests that investors are betting on a positive earnings announcement.

Recently, networking companies like Cisco Systems (CSCO) and Netgear (NTGR) saw their sales skyrocket as networking equipment sold extremely well. Many analysts believe that these strong sales could equate to equally strong sales by companies like Applied Micro that supply networking manufacturers with integrated circuits and boards necessary to produce their products. However, results at other IC manufacturers have been questionable.

Applied Micro designs, develops, markets and supports integrated circuit and storage components, which are essential for the processing, transportation and storing of information worldwide. The company also offers integrated circuit products and printed circuit board assemblies for wireline and wireless communications equipment, edge switches, routers and gateways, metro transport platforms, and core switches and routers.

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