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Small-cap Applied Micro caves to Kingdom Ridge Capital

Applied Micro Circuits has offered a board seat Kingdom Ridge Capital founder Chris Zepf. His fund owns nearly 10% of Applied Micro. This comes as Applied Micro has performed relatively poorly of late, amassing a $270 million in cumulative net losses over the past five years.  

Applied and Kingdom have had closed doors discussions. But with Zepf on the board executive compensation and an outright sale of the company will likely be the focus. Where, on the revenue side, AMCC launched its X-Gene Server on a Chip and beat its goal of units shipped in the first year. Assuming X-Gene demonstrates traction, the buyout is alive. Heck, that’s expected to be a $50 billion market by 2017.

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