M/A-COM Technology Solutions Holdings, Inc. (NASDAQ: MTSI)
(“MACOM”), a leading supplier of high-performance analog RF,
microwave, millimeterwave and photonic semiconductor products,
today announced its financial results for its fiscal second quarter
ended April 1, 2016.
Second Quarter Fiscal Year 2016 GAAP Results
- Revenue was $133.6 million, an increase
of 15.4% percent, compared to $115.8 million in the prior fiscal
quarter and an increase of 30.4% percent compared to $102.4 million
in the previous year fiscal second quarter;
- Gross profit was $65.5 million, an
increase of 8.6% percent, compared to $60.3 million in the prior
fiscal quarter and an increase of 40.3% percent compared to $46.7
million in the previous year fiscal second quarter;
- Gross margin was 49.1 percent, compared
to 52.1 percent in the prior fiscal quarter and 45.6 percent in the
previous year fiscal second quarter;
- Operating loss was $7.2 million,
compared to income of $0.2 million in the prior fiscal quarter and
an operating loss of $2.4 million in the previous year fiscal
second quarter; and
- Net loss from continuing operations was
$12.0 million, resulting in $0.23 loss per diluted share, compared
to net loss from continuing operations of $16.8 million, or $0.32
loss per diluted share, in the prior fiscal quarter and net loss
from continuing operations of $11.2 million, or $0.22 loss per
diluted share, in the previous year fiscal second quarter.
Second Quarter Fiscal Year 2016 Adjusted Non-GAAP
Results
- Adjusted gross margin was 58.1 percent,
compared to 58.7 percent in the prior fiscal quarter and 57.6
percent in the previous year fiscal second quarter;
- Adjusted operating income was $32.4
million, or 24.3 percent of revenue, compared to $27.7 million, or
23.9 percent of revenue, in the prior fiscal quarter and $23.7
million, or 23.2 percent of revenue, in the previous year fiscal
second quarter;
- Adjusted net income was $25.7 million,
or $0.46 per diluted share, compared to adjusted net income of
$21.8 million, or $0.40 per diluted share, in the prior fiscal
quarter and adjusted net income of $16.5 million, or $0.31 per
diluted share, in the previous year fiscal second quarter; and
- Adjusted EBITDA was $39.0 million,
compared to $33.5 million for the prior fiscal quarter and $27.4
million for the previous year fiscal second quarter.
Management Commentary
John Croteau, MACOM's President and Chief Executive Officer,
stated, "I am pleased to announce another quarter of solid
execution and sequential growth. Strong demand across our end
markets enabled us to beat the top end of guidance on revenue and
earnings per share.
"Our Network markets once again delivered solid growth across
all optical markets fueled by modulator drivers in long/haul metro
as well as lasers in access, backhaul and datacenter applications.
We also continued to advance our GaN vision and remain on track
with our process qualifications. We are rapidly converging on
program wins with Tier-1 customers addressing mainstream LTE
deployments."
Mr. Croteau concluded, “As we move into the fiscal second
half of the year, we remain focused on executing on our three
secular growth drivers - Optical, GaN, and Active Antennas - as
highlighted at our recent Analyst Day.”
Business Outlook
For the fiscal third quarter ending July 1, 2016, MACOM
expects revenue to be in the range of $138.0 million to $142.0
million. Adjusted gross margin is expected to be between 57 and 59
percent, and adjusted earnings per share between $0.49 and $0.52 on
an anticipated 56.5 million diluted shares outstanding.
Conference Call
MACOM will host a conference call on Tuesday, April 26,
2016 at 5:00 p.m. Eastern Time to discuss its second fiscal quarter
financial results and business outlook. Investors and analysts may
join the conference call by dialing 1-877-837-3908 and providing
the confirmation code 84787504.
International callers may join the teleconference by dialing
+1-973-872-3000 and entering the same confirmation code at the
prompt. A telephone replay of the call will be made available
beginning two hours after the call and will remain available for 5
business days. The replay number is 1-855-859-2056 with a passcode
of 84787504. International callers should dial +1-404-537-3406 and
enter the same pass code at the prompt.
Additionally, this conference call will be broadcast live over
the Internet and can be accessed by all interested parties in the
Investors section of MACOM's website at http://www.macom.com. To listen to the live call,
please go to the Investors section of MACOM's website and click on
the conference call link at least fifteen minutes prior to the
start of the conference call. For those unable to participate
during the live broadcast, a replay will be available shortly after
the call and will remain available for approximately 30 days.
About MACOM
MACOM Technology Solutions Holdings, Inc. (www.macom.com) supplies key enabling technologies
for the Cloud Connected Apps Economy and Modern Networked
Battlefield. Recognized for its broad catalog portfolio of
technologies and products, MACOM provides high-performance analog
RF, microwave, millimeterwave and photonic semiconductor products
for diverse applications ranging from high speed optical,
satellite, wired and wireless networks to military and civil radar
systems. A pillar of the semiconductor industry, we thrive on more
than 60 years of solving our customers' most complex problems as
their trusted partner for solutions ranging from RF to Light.
Headquartered in Lowell, Massachusetts, MACOM is certified to
the ISO9001 international quality standard and ISO14001
environmental management standard. MACOM has design centers and
sales offices throughout North America, Europe, Asia and
Australia.
MACOM, M/A-COM, M/A-COM Technology Solutions, M/A-COM Tech,
Partners in RF & Microwave, The First Name in Microwave and
related logos are trademarks of MACOM. All other trademarks are the
property of their respective owners.
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements based on
MACOM management's beliefs and assumptions and on information
currently available to our management. Forward-looking statements
include, among others, information concerning our stated business
outlook and future results of operations, our expectations for
execution on our three growth drivers in fiscal year 2016, on our
GaN vision and qualification, and on program wins with Tier-1
customers addressing mainstream LTE deployments and any other
statements regarding future trends, business strategies,
competitive position, industry conditions, acquisitions and market
opportunities. Forward-looking statements include all statements
that are not historical facts and generally may be identified by
terms such as "anticipates," "believes," "could," "estimates,"
"expects," "intends," "may," "plans," "potential," "predicts,"
"projects," "seeks," "should," "will," "would" or similar
expressions and the negatives of those terms.
Forward-looking statements contained in this press release
reflect MACOM's current views about future events and are subject
to risks, uncertainties, assumptions and changes in circumstances
that may cause those events or our actual activities or results to
differ materially from those expressed in any forward-looking
statement. Although MACOM believes that the expectations reflected
in the forward-looking statements are reasonable, it cannot and
does not guarantee future events, results, actions, levels of
activity, performance or achievements. Readers are cautioned not to
place undue reliance on these forward-looking statements. A number
of important factors could cause actual results to differ
materially from those indicated by the forward-looking statements,
including the potential that the expected rollout of
fiber-to-the-home network technology or other new optical or other
network technology deployments in China, Japan and other
geographies fails to occur, occurs more slowly than we expect or
does not result in the amount or type of new business we
anticipate, lower than expected demand in the optical network
infrastructure market or any or all of our primary end markets or
from Huawei or any or all of our large OEM customers based on
seasonal effects, macro-economic weakness or otherwise, the
potential for increased pricing pressure and ASP erosion based on
competitive factors, technology shifts or otherwise, the potential
for inventory obsolescence and related write-offs, the expense,
business disruption or other impact of any current or future
investigations, administrative actions, litigation or
enforcement proceedings we may be involved in, the potential loss
of access to any in-licensed intellectual property or inability to
license technology we may require on reasonable terms, the impact
of any claims of intellectual property infringement or
misappropriation, which could require us to pay substantial damages
for infringement, expend significant resources in prosecuting or
defending such matters or developing non-infringing technology,
incur material liability for royalty or license payments, or
prevent us from selling certain of our products, greater than
expected dilutive effect on earnings of our equity issuances,
outstanding indebtedness and related interest expense and other
costs, our failure to realize the expected economies of scale,
lowered production cost and other anticipated benefits of our
previously announced GaN intellectual property licensing program or
InP laser production capacity expansion program, the potential for
defense spending cuts, program delays, cancellations or
sequestration, failures or delays by any customer in winning
business or to make purchases from us in support of such business,
lack of adoption or delayed adoption by customers and industries we
serve of Active Antennas, GaN, InP lasers or other solutions
offered by us, failures or delays in porting and qualifying GaN or
InP process technology to our Lowell fabrication facility or third
party facilities, lower than expected utilization and absorption in
our manufacturing facilities, lack of success or slower than
expected success in our new product development efforts, failure of
any announced transaction to close in accordance with its terms,
failure to successfully integrate acquired companies, technologies
or products or realize synergies associated with acquisitions, the
potential that we will experience difficulties in managing the
personnel and operations associated with our acquisitions, loss of
business due to competitive factors, product or technology
obsolescence, customer program shifts or otherwise, lower than
anticipated or slower than expected customer acceptance of our new
product introductions, the potential for a shift in the mix of
products sold in any period toward lower-margin products or a shift
in the geographical mix of our revenues, the impact of any executed
or abandoned acquisition, divestiture, joint venture, financing or
restructuring activity, the impact of supply shortages or other
disruptions in our internal or outsourced supply chain, the impact
of changes in export, environmental or other laws applicable to us,
the relative success of our cost-savings initiatives, as well as
those factors described in "Risk Factors" in MACOM's filings with
the Securities and Exchange Commission (SEC), including its
Quarterly Report on Form 10-Q for the fiscal quarter ended January
1, 2016, as filed with the SEC on January 27, 2016 and its Annual
Report on Form 10-K for the fiscal year ended October 2, 2015 as
filed with the SEC on November 24, 2015. MACOM undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Non-GAAP Financial Measures
In addition to GAAP reporting, MACOM provides investors with
adjusted non-GAAP financial information. Adjusted items include
revenue, gross profit, gross margin, operating margin, operating
income, net income, earnings per share, Adjusted EBITDA and other
data calculated on a non-GAAP basis. This non-GAAP information
excludes non-consulting agreement related discontinued operations,
the impact of fair value accounting in merger and acquisitions
(M&A) of businesses, M&A costs, including acquisition and
related integration costs, certain cost savings from synergies
expected from M&A activities, income and expenses from
transition services related to M&A activities, expected
amortization of acquisition-related intangibles, share-based and
other non-cash compensation expense, certain cash compensation,
restructuring charges, impairment charges, litigation settlement
and costs, changes in the carrying values of assets and liabilities
measured at fair value, contingent consideration, amortization of
debt discounts and issuance costs, debt settlement costs, other
non-cash expenses, earn-out costs, restructuring costs and certain
income tax items. The non-GAAP information includes consulting
agreement related revenue associated with the Automotive business
divestiture. Management does not believe that the adjusted items
are reflective of MACOM's underlying performance. The adjustment of
these and other similar items from MACOM's non-GAAP presentation
should not be interpreted as implying that these items are
non-recurring, infrequent or unusual. These and other similar items
are also excluded from Adjusted EBITDA, which is non-GAAP earnings
before interest, income taxes, depreciation and amortization. MACOM
believes this adjusted non-GAAP financial information provides
additional insight into these items and MACOM's performance and
has, therefore, chosen to provide this information to investors for
a consistent basis of comparison and to help them evaluate the
results of MACOM's operations and enable more meaningful period to
period comparisons. These adjusted non-GAAP measures may be
different than similar measures used by other companies and should
be considered in addition to, not as a substitute for, or superior
to, measures of financial performance prepared in accordance with
GAAP. A reconciliation between GAAP and adjusted non-GAAP financial
data used in this earnings release is included in the supplemental
financial data attached to this press release.
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(unaudited and in thousands, except per
share data)
Three Months Ended Six Months Ended April
1, January 1, April 3, April
1, April 3, 2016 2016 2015
2016 2015 Revenue $ 133,579 $ 115,774 $ 102,431 $
249,353 $ 198,987 Cost of revenue 68,054 55,456
55,717 123,510 104,854 Gross profit 65,525
60,318 46,714 125,843 94,133
Operating expenses: Research and development 26,203 25,322 20,439
51,525 39,221 Selling, general and administrative 34,617 34,686
28,247 69,303 53,475 Impairment charges 11,005 — — 11,005 —
Restructuring charges 851 157 413 1,008
413 Total operating expenses 72,676 60,165
49,099 132,841 93,109 Income (loss) from
operations (7,151 ) 153 (2,385 ) (6,998 ) 1,024 Other
income (expense): Warrant liability expense (4,201 ) (14,878 )
(5,609 ) (19,079 ) (16,217 ) Interest expense, net (4,408 ) (4,346
) (4,723 ) (8,754 ) (9,446 ) Other income (expense), net (81 ) 100
(1,376 ) 19 (1,001 ) Total other income (expense)
(8,690 ) (19,124 ) (11,708 ) (27,814 ) (26,664 ) Loss before
income taxes (15,841 ) (18,971 ) (14,093 ) (34,812 ) (25,640 )
Income tax benefit (3,796 ) (2,201 ) (2,917 ) (5,997 ) (4,500 )
Loss from continuing operations (12,045 ) (16,770 ) (11,176 )
(28,815 ) (21,140 ) Income from discontinued operations 1,396
1,199 3,639 2,595 7,297 Net loss
$ (10,649 ) $ (15,571 ) $ (7,537 ) $ (26,220 ) $ (13,843 )
Net income (loss) per share: Basic: Loss from continuing
operations $ (0.23 ) $ (0.32 ) $ (0.22 ) $ (0.54 ) $ (0.43 ) Income
from discontinued operations 0.03 0.02 0.07
0.05 0.15 Loss per share - basic $ (0.20 ) $ (0.29 )
$ (0.15 ) $ (0.49 ) $ (0.28 ) Diluted: Loss from continuing
operations $ (0.23 ) $ (0.32 ) $ (0.22 ) $ (0.54 ) $ (0.43 ) Income
from discontinued operations 0.03 0.02 0.07
0.05 0.15 Loss per share - diluted $ (0.20 ) $ (0.29
) $ (0.15 ) $ (0.49 ) $ (0.28 ) Shares - Basic 53,228
53,015 50,593 53,122 49,100 Shares -
Diluted 53,228 53,015 50,593 53,122
49,100
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited and in thousands)
April 1, October 2, 2016 2015
ASSETS Current assets: Cash and cash equivalents $ 58,187 $ 122,312
Short term investments 23,632 39,557 Accounts receivable, net
91,604 83,950 Inventories 106,972 79,943 Deferred income taxes (1)
— 31,431 Income tax receivable 16,077 15,854 Prepaids and other
current assets 11,553 11,172 Total current assets 308,025
384,219 Property and equipment, net 99,637 83,759 Goodwill and
intangible assets, net 397,370 337,012 Deferred income taxes 83,909
48,239 Other long-term assets 11,457 13,022 TOTAL ASSETS $
900,398 $ 866,251 LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities: Current portion of debt obligations $
4,499 $ 4,058 Accounts payable, accrued liabilities and other
78,335 67,418 Total current liabilities 82,834 71,476
Long-term debt obligations, less current portion 341,396 340,504
Common stock warrant liability 40,901 21,822 Deferred income taxes
13,920 — Long-term liabilities and other 7,339 7,916 Total
liabilities 486,390 441,718 Stockholders' equity 414,008
424,533 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 900,398
$ 866,251
(1) During the second quarter of fiscal 2016, we early-adopted
Accounting Standards Update (ASU) No. 2015-17, Balance Sheet
Classification of Deferred Taxes, and applied ASU 2015-17 on a
prospective basis. This standard requires that all deferred tax
assets and liabilities, and any related valuation allowance, be
classified as noncurrent on the balance sheet. As of the second
quarter of fiscal 2016, we included $31.4 million of current
deferred income tax assets with our noncurrent deferred income tax
assets; no adjustments were made to deferred tax liabilities.
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(unaudited and in thousands)
Six Months Ended April
1, April 3, 2016 2015
CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (26,220 ) $
(13,843 ) Adjustments to reconcile net loss to net operating cash
77,452 61,947 Change in operating assets and liabilities (16,134 )
(46,672 ) Net cash from operating activities 35,098 1,432
CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of
businesses, net (85,516 ) (208,369 ) Purchases, sales and
maturities of investments 15,596 — Gain on disposition of business
3,750 — Strategic investments — (250 ) Purchases of property and
equipment (16,962 ) (14,036 ) Acquisition of intellectual property
(777 ) (1,587 ) Net cash used in investing activities (83,909 )
(224,242 ) CASH FLOWS FROM FINANCING ACTIVITIES: Payments of notes
payable (1,750 ) (1,750 ) Proceeds from stock offering — 127,959
Payment of assumed debt (9,120 ) (1,232 ) Proceeds from stock
option exercises and employee stock purchases 3,071 2,871
Repurchase of common stock (6,152 ) (4,924 ) Borrowings on
revolving facility — 100,000 Payments on revolving facility —
(100,000 ) Other adjustments (1,195 ) (39 ) Net cash from financing
activities (15,146 ) 122,885 EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS (168 ) — NET CHANGE IN CASH AND CASH
EQUIVALENTS (64,125 ) (99,925 ) CASH AND CASH EQUIVALENTS —
Beginning of period 122,312 173,895 CASH AND CASH
EQUIVALENTS — End of period $ 58,187 $ 73,970
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS,
INC.
RECONCILIATION OF GAAP TO NON-GAAP
RESULTS
(unaudited and in thousands, except per
share data)
Three Months Ended
Six Months Ended April 1,
2016 January 1, 2016
April 3, 2015 April 1,
2016 April 3, 2015 Amount
Amount Amount
Amount Amount
Revenue - GAAP $ 133,579 $ 115,774 $ 102,431 $
249,353 $ 198,987 Adjusted Revenue (NonGAAP) $
133,579 $ 115,774 $ 102,431 $ 249,353 $
198,987
Amount % Revenue
Amount % Revenue
Amount % Revenue
Amount % Revenue Amount
% Revenue Gross Profit - GAAP $ 65,525 49.1 $ 60,318
52.1 $ 46,714 45.6 $ 125,843 50.5 $ 94,133 47.3 Intangible
amortization expense 6,642 5.0 7,167 6.2 7,347 7.2 13,809 5.5
12,706 6.4 Non-cash compensation expense 500 0.4 491 0.4 577 0.6
991 0.4 919 0.5 Equity-based compensation 191 0.1 51 — 179 0.2 242
0.1 237 0.1 Impairment charges 1,950 1.5 — — — — 1,950 0.8 — —
Acquisition FMV step-up expense (inventory/fixed assets) 2,646 2.0
(226 ) (0.2 ) 3,538 3.5 2,420 1.0 4,373 2.2 Third-party engineering
costs — — — — 305 0.3 — — 1,229 0.6 Integration costs and synergy
savings 102 0.1 158
0.1 356 0.3
260 0.1 352
0.2 Adjusted Gross Profit (NonGAAP) $ 77,556
58.1 $ 67,959 58.7
$ 59,016 57.6
$ 145,515 58.4
$ 113,949 57.3 Research and
Development - GAAP $ 26,203 19.6 $ 25,322 21.9 $ 20,439 20.0 $
51,525 20.7 $ 39,221 19.7 Non-cash compensation expense (1,742 )
(1.3 ) (2,142 ) (1.9 ) (1,563 ) (1.5 ) (3,884 ) (1.6 ) (2,568 )
(1.3 ) Equity-based compensation (1,061 ) (0.8 ) (894 ) (0.8 ) (669
) (0.7 ) (1,955 ) (0.8 ) (1,188 ) (0.6 ) Acquisition FMV step-up
expense (inventory/fixed assets) (204 ) (0.2 ) (204 ) (0.2 ) (204 )
(0.2 ) (408 ) (0.2 ) (408 ) (0.2 ) Integration costs and synergy
savings (133 ) (0.1 ) (597 ) (0.5 ) (137 ) (0.1 ) (730 ) (0.3 )
(308 ) (0.2 ) Third-party engineering costs — —
— — 305
0.3 —
— 1,229 0.6
Adjusted Research and Development (NonGAAP) $ 23,063
17.3 $ 21,485 18.6
$ 18,171 17.7
$ 44,548 17.9 $ 35,978
18.1 Selling, General and
Administrative - GAAP $ 34,617 25.9 $ 34,686 30.0 $ 28,247 27.6 $
69,303 27.8 $ 53,475 26.9 Earn-out costs (26 ) — 196 0.2 — — 170
0.1 — — Intangible amortization expense (6,304 ) (4.7 ) (4,423 )
(3.8 ) (3,096 ) (3.0 ) (10,727 ) (4.3 ) (4,149 ) (2.1 ) Non-cash
compensation expense (4,210 ) (3.2 ) (7,383 ) (6.4 ) (7,558 ) (7.4
) (11,592 ) (4.6 ) (9,953 ) (5.0 ) Equity-based compensation (705 )
(0.5 ) (462 ) (0.4 ) (501 ) (0.5 ) (1,167 ) (0.5 ) (818 ) (0.4 )
Acquisition FMV step-up expense (inventory/fixed assets) (28 ) —
(28 ) — (28 ) — (56 ) — (56 ) — Litigation related costs (232 )
(0.2 ) (108 ) (0.1 ) (206 ) (0.2 ) (340 ) (0.1 ) (766 ) (0.4 )
Transaction expenses (102 ) (0.1 ) (3,111 ) (2.7 ) 530 0.5 (3,213 )
(1.3 ) (4,106 ) (2.1 ) Integration costs and synergy savings (919 )
(0.7 ) (571 ) (0.5 ) (282
) (0.3 ) (1,491 ) (0.6 )
(578 ) (0.3 ) Adjusted Selling, General and
Administrative (NonGAAP) $ 22,091 16.5
$ 18,796 16.2 $ 17,106
16.7 $ 40,887
16.4 $ 33,049 16.6
Amount % Revenue Amount
% Revenue Amount %
Revenue Amount %
Revenue Amount % Revenue
Total operating expenses - GAAP $ 72,676 54.4 $ 60,165 52.0 $
49,099 47.9 $ 132,841 53.3 $ 93,109 46.8 Intangible amortization
expense (6,304 ) (4.7 ) (4,423 ) (3.8 ) (3,096 ) (3.0 ) (10,727 )
(4.3 ) (4,149 ) (2.1 ) Non-cash compensation expense (5,951 ) (4.5
) (9,525 ) (8.2 ) (9,121 ) (8.9 ) (15,477 ) (6.2 ) (12,521 ) (6.3 )
Equity-based compensation (1,766 ) (1.3 ) (1,356 ) (1.2 ) (1,170 )
(1.1 ) (3,122 ) (1.3 ) (2,006 ) (1.0 ) Acquisition FMV step-up
expense (inventory/fixed assets) (232 ) (0.2 ) (232 ) (0.2 ) (232 )
(0.2 ) (464 ) (0.2 ) (464 ) (0.2 ) Contingent consideration and
earn-out costs (26 ) — 196 0.2 — — 170 0.1 — — Impairment charges
(11,005 ) (8.2 ) — — — — (11,005 ) (4.4 ) — — Restructuring charges
(851 ) (0.6 ) (157 ) (0.1 ) (413 ) (0.4 ) (1,008 ) (0.4 ) (413 )
(0.2 ) Integration costs and synergy savings (1,053 ) (0.8 ) (1,168
) (1.0 ) (419 ) (0.4 ) (2,221 ) (0.9 ) (886 ) (0.4 ) Litigation
related costs (232 ) (0.2 ) (108 ) (0.1 ) (206 ) (0.2 ) (340 ) (0.1
) (766 ) (0.4 ) Transaction expenses (102 ) (0.1 ) (3,111 ) (2.7 )
530 0.5 (3,213 ) (1.3 ) (4,106 ) (2.1 ) Third-party engineering —
— — —
305 0.3
— — 1,229
0.6 Adjusted Total Operating Expenses (NonGAAP) $ 45,154
33.8 $ 40,281 34.8
$ 35,277 34.4
$ 85,434 34.3
$ 69,027 34.7 Income (loss) from
operations - GAAP $ (7,151 ) (5.4 ) $ 153 0.1 $ (2,385 ) (2.3 ) $
(6,998 ) (2.8 ) $ 1,024 0.5 Intangible amortization expense 12,946
9.7 11,590 10.0 10,446 10.2 24,536 9.8 16,858 8.5 Non-cash
compensation expense 6,452 4.8 10,016 8.7 9,698 9.5 16,468 6.6
13,440 6.8 Equity-based compensation 1,957 1.5 1,407 1.2 1,349 1.3
3,364 1.3 2,243 1.1 Contingent consideration and earn-out costs 26
— (196 ) (0.2 ) — — (170 ) (0.1 ) — — Impairment charges 12,955 9.7
— — — — 12,955 5.2 — — Restructuring charges 851 0.6 157 0.1 413
0.4 1,008 0.4 413 0.2 Acquisition FMV step-up expense
(inventory/fixed assets) 2,878 2.2 6 — 3,770 3.7 2,884 1.2 4,837
2.4 Litigation related costs 232 0.2 108 0.1 206 0.2 340 0.1 766
0.6 Transaction expenses 102 0.1 3,111 2.7 (530 ) (0.5 ) 3,213 1.3
4,106 0.4 Integration costs and synergy savings 1,154
0.9 1,326 1.1
772 0.8
2,480 1.0 1,235
2.1 Adjusted Income (Loss) from Operations (NonGAAP) $
32,402 24.3 $ 27,678
23.9 $ 23,739 23.2
$ 60,080 24.1
$ 44,922 22.6 Depreciation
expense 4,840 3.6 3,903 3.4 3,702 3.6 8,743 3.5 7,089 3.6 Other
income, net 1,792 1.3 1,954
1.7 — —
3,746 1.5
— — Adjusted EBITDA $ 39,034
29.2 $ 33,535 29.0
$ 27,441 26.8
$ 72,569 29.1 $
52,011 26.1 Interest expense- GAAP $
4,478 3.4 $ 4,475 3.9 $ 4,723 4.6 $ 8,953 3.6 $ 9,446 4.7 Non-cash
interest expense (425 ) (0.3 ) (398 )
(0.3 ) (403 ) (0.4 )
(823 ) (0.3 ) (842 ) (0.4 )
Adjusted Interest Expense (NonGAAP) $ 4,053 3.0
$ 4,077 3.5
$ 4,320 4.2 $
8,130 3.3 $ 8,604
4.3 Net income (loss) - GAAP $ (10,649 ) (8.0 ) $
(15,571 ) (13.4 ) $ (7,537 ) (7.4 ) $ (26,220 ) (10.5 ) $ (13,843 )
(7.0 ) Discontinued operations (1,396 ) (1.0 ) (1,199 ) (1.0 )
(3,639 ) (3.6 ) (2,595 ) (1.0 ) (7,297 ) (3.7 ) Intangible
amortization expense 12,946 9.7 11,590 10.0 10,446 10.2 24,536 9.8
16,858 8.5 Non-cash compensation expense 6,452 4.8 10,016 8.7 9,698
9.5 16,468 6.6 13,440 6.8 Equity-based compensation 1,957 1.5 1,407
1.2 1,349 1.3 3,364 1.3 2,243 1.1 Impairment of minority investment
— — — — 3,500 3.4 — — 3,500 1.8 Contingent consideration 26 — (196
) (0.2 ) (2,000 ) (2.0 ) (170 ) (0.1 ) (2,000 ) (1.0 ) Consulting
agreement 1,875 1.4 1,875 1.6 — — 3,750 1.5 — — Impairment charges
12,955 9.7 — — — — 12,955 5.2 — — Restructuring charges 851 0.6 157
0.1 413 0.4 1,008 0.4 413 0.2 Warrant liability (gain) expense
4,201 3.1 14,879 12.9 5,609 5.5 19,080 7.7 16,217 8.1 Non-cash
interest expense 425 0.3 398 0.3 403 0.4 823 0.3 842 0.4
Acquisition FMV step-up expense (inventory/fixed assets) 2,878 2.2
6 — 3,770 3.7 2,884 1.2 4,837 2.4 Litigation related costs 232 0.2
108 0.1 206 0.2 340 1.0 766 0.6 Integration costs and synergy
savings 1,152 0.9 1,306 1.1 772 0.8 2,457 0.1 1,235 0.4 Transaction
expenses 102 0.1 3,111 2.7 (530 ) (0.5 ) 3,213 1.3 4,106 2.1 Tax
effect of non-GAAP adjustments (8,327 ) (6.2 ) (6,054 ) (5.2 )
(5,830 ) (5.7 ) (14,381 ) (5.8 ) (9,948 ) (5.0 ) Transition
services for divested business and other — —
— — (124 )
(0.1 ) — —
(499 ) (0.3 ) Adjusted Net Income (NonGAAP) $ 25,680
19.2 $ 21,833 18.9
$ 16,506 16.1
$ 47,512 19.1
$ 30,870 15.5
Three Months Ended Six Months
Ended April 1, 2016 January 1, 2016
April 3, 2015
April 1, 2016 April 3, 2015
Net Income(Loss)
Income (loss)per
dilutedshare
Net Income(Loss)
Income (loss)per
dilutedshare
Net Income(Loss)
Income (loss)per
dilutedshare
Net Income(Loss)
Income (loss)per
dilutedshare
Net Income(Loss)
Income (loss)per
dilutedshare
GAAP $ (10,649 ) $ (0.20 ) $ (15,571 )
$ (0.29 ) $ (7,537 ) $ (0.15 )
$ (26,220 ) $ (0.49 ) $
(13,843 ) $ (0.28 ) Adjusted (NonGAAP) $ 25,680
$ 0.46 $ 21,833 $
0.40 $ 16,506 $ 0.31
$ 47,512 $ 0.86
$ 30,870 $ 0.61
Shares Shares
Shares
Shares
Shares Diluted Shares - GAAP 53,228 53,015
50,593 53,122 49,100 Incremental stock options, warrants,
restricted stock and units 2,139
1,996 1,908
2,081
1,815 Adjusted Diluted Shares (NonGAAP)
55,367 55,011
52,501
55,203 50,915
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160426006655/en/
Company Contact:M/A-COM Technology Solutions Holdings,
Inc.Robert J. McMullan, 978-656-2753Senior Vice President and Chief
Financial Officerbob.mcmullan@macom.comorInvestor Relations
Contact:Shelton GroupLeanne K. Sievers, 949-224-3874EVP,
Investor Relationslsievers@sheltongroup.com
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