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MACOM Reports Fiscal Fourth Quarter and Fiscal Year 2019 Financial Results

November 12, 2019

LOWELL, Mass.--(BUSINESS WIRE)--Nov 12, 2019--

MACOM Technology Solutions Holdings, Inc. (“MACOM”) (NASDAQ: MTSI), a leading supplier of semiconductor products, today announced its financial results for its fiscal fourth quarter and fiscal year ended September 27, 2019.

Fourth Quarter Fiscal Year 2019 GAAP Results

Fourth Quarter Fiscal Year 2019 Adjusted Non-GAAP Results

Fiscal Year 2019 GAAP Results

Fiscal Year 2019 Adjusted Non-GAAP Results

Management Commentary

“We are making progress on all fronts,” said Stephen G. Daly, President and Chief Executive Officer. “We are focused on profitability.”

Business Outlook

For the fiscal first quarter ending January 3, 2020, MACOM expects revenue to be in the range of $113 million to $117 million. Adjusted gross margin is expected to be between 53% and 55%, and adjusted earnings per share is expected to be between $0.01 and $0.05 on an anticipated 67.5 million adjusted diluted shares outstanding.

Conference Call

MACOM will host a conference call on Tuesday, November 12, 2019 at 5:00 p.m. Eastern Time to discuss its fiscal fourth quarter and fiscal year 2019 financial results and business outlook. Investors and analysts may join the conference call by dialing 1-877-837-3908 and providing the passcode 8579324.

International callers may join the teleconference by dialing +1-973-872-3000 and entering the same passcode at the prompt. A telephone replay of the call will be made available beginning two hours after the call and will remain available for five business days. The replay number is 1-855-859-2056 with a passcode of 8579324. International callers should dial +1-404-537-3406 and enter the same passcode 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://ir.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 designs and manufactures semiconductor products for Data Center, Telecommunication and Industrial and Defense applications. Headquartered in Lowell, Massachusetts, MACOM has design centers and sales offices throughout North America, Europe and Asia. MACOM is certified to the ISO9001 international quality standard and ISO14001 environmental management standard.

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. These forward-looking statements include, among others, statements about MACOM’s strategic plans and priorities, our new organizational structure and operational enhancements, MACOM’s prospects and growth opportunities in our three primary markets, the estimated financial results for our fiscal first quarter and the stated business outlook and future results of operations.

These forward-looking statements 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. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements, including those factors described in “Risk Factors” in MACOM’s filings with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other filings with the SEC. These forward-looking statements speak only as of the date of this press release, and MACOM undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Discussion Regarding the Use of Historical and Forward-Looking Non-GAAP Financial Measures

In addition to United States Generally Accepted Accounting Principles (“GAAP”) reporting, MACOM provides investors with financial measures that have not been calculated in accordance with GAAP, such as: non-GAAP gross profit and gross margin, non-GAAP income (loss) from operations and operating margin, non-GAAP operating expenses, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP income tax rate, adjusted EBITDA, non-GAAP interest expense and non-GAAP Free Cash Flow. From time to time in this release or elsewhere, we may alternatively refer to such non-GAAP measures as “adjusted” measures. This non-GAAP information excludes the effect, where applicable, of discontinued operations, intangible amortization expense, share-based and non-cash compensation costs, impairment and restructuring charges, changes in common stock warrant liability, financing and litigation costs, acquisition and integration related costs, equity investment gains and losses, divested business losses, other costs and the tax effect of each adjustment.

Management believes that these excluded items are not reflective of our underlying performance. Management uses these non-GAAP financial measures to evaluate our ongoing operating performance and compare it against prior periods, make operating decisions, forecast future periods, evaluate potential acquisitions, compare our operating performance against peer companies and assess certain compensation programs. The exclusion of these and other similar items from our non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent or unusual. We believe this non-GAAP financial information provides additional insight into our ongoing performance and have therefore chosen to provide this information to investors for a more consistent basis of comparison and to help them evaluate the results of our ongoing operations and enable more meaningful period-to-period comparisons. These non-GAAP measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release. We have not provided a reconciliation with respect to any forward-looking non-GAAP financial data presented because we do not have and cannot reliably estimate certain key inputs required to calculate the most comparable GAAP financial data, such as the future price per share of our common stock for purposes of calculating the value of our common stock warrant liability, future acquisition costs, the possibility and impact of any litigation costs, changes in our GAAP effective tax rate and impairment charges. We believe these unknown inputs are likely to have a significant impact on any estimate of the comparable GAAP financial data.

Investors are cautioned against placing undue reliance on these non-GAAP financial measures and are urged to review and consider carefully the adjustments made by management to the most directly comparable GAAP financial measures to arrive at these non-GAAP financial measures. Non-GAAP financial measures may have limited value as analytical tools because they may exclude certain expenses that some investors consider important in evaluating our operating performance or ongoing business performance. Further, non-GAAP financial measures may have limited value for purposes of drawing comparisons between companies because different companies may calculate similarly titled non-GAAP financial measures in different ways because non-GAAP measures are not based on any comprehensive set of accounting rules or principles.

Additional information and management’s assessment regarding why certain items are excluded from our non-GAAP measures are summarized below:

During the fiscal fourth quarter we determined that we would no longer present the non-GAAP revenue measure, and as such have adjusted current and prior periods to reflect this change.

Amortization Expense - is related to acquired intangible assets which are based upon valuation methodologies, and are generally amortized over the expected life of the intangible asset at the time of acquisition, which may result in amortization amounts that vary over time. The expense is not considered by management in making operating decisions, and is considered a non-cash expense.

Share-Based and Non-cash Compensation Expense - includes share-based compensation expense for awards that are equity and liability classified on our balance sheet. Share-based compensation expense is partially outside of our control due to factors such as stock price volatility and interest rates, which may be unrelated to our operating performance during the period in which the expense is incurred. It is an expense based upon valuation methodologies and assumptions that vary over time, and the amount of the expense can vary significantly between companies due to factors that can be outside of their control. Share-based and non-cash compensation expense amounts are not considered by management in making operating decisions.

Impairment-Related Charges - includes expenses associated with the impairment of property and equipment and intangible assets as a result of our decision in the third fiscal quarter 2019 to reduce certain development activities for one of our product lines, cease design and development of optical modules and subsystems for Data Center applications as well as close certain product development facilities (the “2019 Restructuring”). Additionally, on April 15, 2018, Zhongxing Telecommunications Equipment Corporation, of Shenzhen, China, and certain affiliated entities (collectively “ZTE”) were added to the U.S. Department of Commerce’s Bureau of Industry and Security’s List of Denied Persons. Fiscal year 2018 and the 2019 fiscal first quarter include amounts associated with the impairment of property and equipment, inventory and other assets associated with ZTE which were not expected to have any future value. We believe these amounts are one-time in nature and are not correlated to future business operations and including such charges does not reflect our ongoing operations.

Restructuring Charges - includes amounts primarily associated with approved plans to reduce staffing and manufacturing, research and development or administrative footprints, including amounts associated with the 2019 Restructuring and other restructuring plans. We believe these amounts are not correlated to future business operations and including such charges does not reflect our ongoing operations.

Warrant Liability Expenses (Gains) - are associated with mark-to-market fair value adjustments which are largely based on the value of our common stock, which may vary from period to period due to factors such as stock price volatility. We believe these amounts are not correlated to future business operations and including such charges does not reflect our ongoing operations.

Non-Cash Interest, Net - includes amounts associated with the amortization of certain fees associated with the establishment or amendment of our credit agreement and term loans that are being amortized over the life of the agreement. We believe these amounts are non-cash in nature and not correlated to future business operations and including such charges does not reflect our ongoing operations.

Litigation Costs - includes gains, losses and expenses related to the resolution of other-than-ordinary-course threatened and actually filed lawsuits and other-than-ordinary-course contractual disputes and legal matters. We exclude these gains and losses because they are not considered by management in making operating decisions. We believe such gains, losses and expenses do not necessarily reflect the performance of our ongoing operations for the period in which such charges are recognized and the amount of such gains or losses and expenses can vary significantly between companies and make comparisons less reliable.

Acquisition, Integration and Restructuring-Related Costs - includes such items as professional fees incurred in connection with pre-acquisition and integration specific activities, post-acquisition employee retention amounts, contingent consideration adjustments, severance and other amounts accrued or paid to terminated employees of acquired businesses, costs including salaries incurred which are not expected to have a continuing contribution to operations or are expected to have a diminishing contribution during the integration or restructuring period and the amortization of the fair market step-up value of acquired inventory and fixed assets. Also included are severance costs associated with the departure of executive officers. We believe the exclusion of these items is useful in providing management a basis to evaluate ongoing operating activities and strategic decision making.

Production and Product Line Exits - includes costs associated with our decision to exit certain production facilities and product lines. The costs are primarily inventory reserves associated with products that are considered excess and may not be internally consumed due to the production process change, have potential reliability issues that will not be resolved due to our decision to exit production and or may not be sold to customers. In addition, there are certain other costs incurred associated with the production process that is being exited that are not expected to occur in the future. We believe the exclusion of these items is useful in providing management a basis to evaluate ongoing operating activities and strategic decision making.

Discontinued Operations - includes the profit and loss amounts of discontinued operations. We believe excluding gains and losses associated with historically divested businesses from our net income provides management with a comparable basis to our current ongoing operating activities.

Equity Investment and Sale of Business Gains and Losses - primarily includes losses associated with a non-marketable equity investment we have in a private business, as well as a $34 million loss associated with the sale and transfer of certain assets associated with our Japan-based long-range optical subassembly business (the “LR4 Business”) during the fiscal third quarter of 2018. The investment losses are non-cash in nature, and we believe the sale of our LR4 Business is not correlated to future business operations and including such amounts does not reflect our ongoing operations.

Tax Effect of Non-GAAP Adjustments - adjustments to arrive at an estimate of our adjusted non-GAAP income tax rate associated with our adjusted non-GAAP income over a period of time. We determine our adjusted non-GAAP income tax rate by using applicable rates in taxing jurisdictions and assessing certain factors including our historical and forecast earnings by jurisdiction, discrete items, cash taxes paid in relation to our adjusted non-GAAP net income before income taxes and our ability to realize tax assets. We generally assess this adjusted non-GAAP income tax rate quarterly and have utilized 8% for our fiscal years 2018 and 2019. Our historical effective income tax rate under GAAP has varied significantly from our adjusted non-GAAP income tax rate. Items that have historically resulted in significant difference between our effective income tax rate under GAAP and our adjusted non-GAAP income tax rate include changes in fair values of the common stock warrant liability, which are excluded from our adjusted net income and are neither deductible nor taxable for tax purposes, losses or gains associated with our equity method investment in a private business, income taxed in foreign jurisdictions at generally lower tax rates, intangible impairments, research and development tax credits and merger expenses, as well as a $37.4 million deferred income tax benefit from an intra-entity asset transfer recognized during our fiscal year 2019. We believe it is beneficial for our management to review our adjusted non-GAAP income tax rate on a consistent basis over periods of time. Items such as those noted above may have a significant impact on our GAAP income tax expense and associated effective tax rate over time. Our adjusted non-GAAP income tax rate is an estimate, and may differ from our effective income tax rate determined under GAAP.

Adjusted EBITDA - is a calculation that adds depreciation expense to our adjusted income from operations. Adjusted EBITDA is a measure that management reviews and utilizes for operational analysis purposes. We believe competitors and others in the financial industry utilize this non-GAAP measure for analysis purposes.

Free Cash Flow - is a calculation that starts with GAAP cash flow from operating activities, reduces this amount by our capital expenditures in the applicable period. Free Cash Flow is a measure that management reviews and utilizes for cash flow analysis purposes. We believe competitors and others in the financial industry utilize this non-GAAP measure for analyzing a company’s cash flow.

Incremental Shares - is the number of potential shares of common stock issuable upon the exercise of stock options, restricted stock, restricted stock units and warrants which were not included in the calculation of our GAAP diluted shares. We believe competitors and others in the financial industry utilize this non-GAAP measure for analysis purposes.

 

MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands, except per share data)

 

 

Three Months Ended

 

Twelve Months Ended

 

September 27,
2019

 

June 28, 2019

 

September 28,
2018

 

September 27,
2019

 

September 28,
2018

 

 

 

 

 

Revenue

$

112,248

 

$

108,306

 

$

151,188

 

$

499,708

 

$

570,398

Cost of revenue

59,323

 

74,478

 

80,206

 

279,000

 

324,692

Gross profit

52,925

 

33,828

 

70,982

 

220,708

 

245,706

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

34,875

 

42,708

 

46,226

 

163,469

 

177,713

Selling, general and administrative

26,849

 

41,920

 

42,280

 

153,286

 

161,673

Impairment charges

700

 

264,086

 

 

264,786

 

6,575

Restructuring charges

2,496

 

8,887

 

(36)

 

19,543

 

6,265

Total operating expenses

64,920

 

357,601

 

88,470

 

601,084

 

352,226

Loss from operations

(11,995)

 

(323,773)

 

(17,488)

 

(380,376)

 

(106,520)

Other (expense) income:

 

 

 

 

 

 

 

 

 

Warrant liability (expense) gain

(5,023)

 

1,927

 

2,750

 

765

 

27,646

Interest expense, net

(8,661)

 

(8,967)

 

(8,089)

 

(35,803)

 

(31,338)

Other (expense) income, net

(3,507)

 

4,777

 

(3,609)

 

(7,739)

 

(45,023)

Total other expense

(17,191)

 

(2,263)

 

(8,948)

 

(42,777)

 

(48,715)

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

(29,186)

 

(326,036)

 

(26,436)

 

(423,153)

 

(155,235)

Income tax benefit

(37,297)

 

(1,322)

 

(10,320)

 

(36,950)

 

(21,473)

Income (loss) from continuing operations

8,111

 

(324,714)

 

(16,116)

 

(386,203)

 

(133,762)

Loss from discontinued operations

 

 

(378)

 

 

(6,215)

Net income (loss)

$

8,111

 

$

(324,714)

 

$

(16,494)

 

$

(386,203)

 

$

(139,977)

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

$

0.12

 

$

(4.93)

 

$

(0.25)

 

$

(5.88)

 

$

(2.07)

Loss from discontinued operations

 

 

(0.01)

 

 

(0.10)

Income (loss) per share - basic

$

0.12

 

$

(4.93)

 

$

(0.25)

 

$

(5.88)

 

$

(2.16)

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

$

0.12

 

$

(4.95)

 

$

(0.29)

 

$

(5.88)

 

$

(2.47)

Loss from discontinued operations

 

 

(0.01)

 

 

(0.10)

Income (loss) per share - diluted

$

0.12

 

$

(4.95)

 

$

(0.29)

 

$

(5.88)

 

$

(2.57)

 

 

 

 

 

 

 

 

 

 

Shares - Basic

66,077

 

65,858

 

65,170

 

65,686

 

64,741

Shares - Diluted

66,378

 

65,945

 

65,648

 

65,686

 

65,311

 

MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands, except per share data)

 

 

September 27, 2019

 

September 28, 2018

 

 

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

75,519

 

$

94,676

Short term investments

 

101,226

 

98,221

Accounts receivable, net

 

69,790

 

97,375

Inventories

 

107,880

 

122,837

Income tax receivable

 

16,661

 

17,601

Assets held for sale, current

 

 

4,840

Prepaids and other current assets

 

27,506

 

23,311

Total current assets

 

398,582

 

458,861

Property and equipment, net

 

132,647

 

149,923

Goodwill and intangible assets, net

 

495,955

 

826,861

Deferred income taxes

 

41,407

 

2,272

Other investments

 

23,613

 

31,094

Other long-term assets

 

10,965

 

13,484

TOTAL ASSETS

 

$

1,103,169

 

$

1,482,495

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Current portion of lease payable

 

$

1,084

 

$

467

Current portion of long-term debt

 

6,885

 

6,885

Accounts payable

 

24,822

 

41,951

Accrued liabilities

 

39,908

 

49,945

Deferred revenue

 

2,137

 

7,757

Total current liabilities

 

74,836

 

107,005

Lease payable, less current portion

 

29,506

 

29,023

Long-term debt obligations, less current portion

 

655,272

 

658,372

Common stock warrant liability

 

12,364

 

13,129

Deferred income taxes

 

632

 

389

Other long-term liabilities

 

19,068

 

5,902

Total liabilities

 

791,678

 

813,820

Stockholders' equity

 

311,491

 

668,675

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

1,103,169

 

$

1,482,495

 

MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)

 

 

 

Twelve Months Ended

 

 

September 27,
2019

 

September 28,
2018

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net loss

 

$

(386,203)

 

$

(139,977)

Depreciation and amortization

 

104,418

 

112,383

Share based compensation

 

23,792

 

31,937

Warrant liability gain

 

(765)

 

(27,646)

Acquired inventory step-up amortization

 

 

224

Loss on disposition of business

 

 

34,343

Deferred income taxes

 

(38,893)

 

(16,528)

Loss on minority equity investment

 

7,481

 

10,406

Restructuring and impairment related charges

 

273,572

 

9,143

Other adjustments to reconcile loss to net operating cash

 

4,255

 

(594)

Inventories

 

14,964

 

(2,166)

Accounts receivable

 

27,585

 

38,679

Change in other operating assets and liabilities

 

(9,506)

 

(13,911)

Net cash provided by operating activities

 

20,700

 

36,293

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Acquisition of businesses, net

 

(375)

 

(1,000)

Sales, purchases and maturities of investments

 

(1,094)

 

(14,086)

Purchases of other investments

 

 

(5,000)

Proceeds associated with discontinued operations

 

 

4,737

Sale of businesses and assets

 

5,541

 

1,274

Purchases of property and equipment

 

(37,963)

 

(53,044)

Net cash used in investing activities

 

(33,891)

 

(67,119)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Payments of financing costs

 

 

(505)

Proceeds from corporate facility financing obligation

 

 

4,000

Payments of notes payable and assumed debt

 

(8,306)

 

(7,598)

Proceeds from stock option exercises and employee stock purchases

 

7,193

 

6,957

Repurchase of common stock - tax withholding on equity awards

 

(4,137)

 

(6,828)

Other adjustments

 

(578)

 

(477)

Net cash used in financing activities

 

(5,828)

 

(4,451)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

(138)

 

(151)

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

(19,157)

 

(35,428)

CASH AND CASH EQUIVALENTS — Beginning of period

 

94,676

 

130,104

CASH AND CASH EQUIVALENTS — End of period

 

$

75,519

 

$

94,676

 

MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS

(unaudited and in thousands, except per share data)

 

 

Three Months Ended

Twelve Months Ended

 

September 27, 2019

June 28, 2019

September 28, 2018

September 27, 2019

September 28, 2018

 

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Gross profit - GAAP

$

52,925

47.2

$

33,828

31.2

$

70,982

46.9

$

220,708

44.2

$

245,706

43.1

Amortization expense

5,773

5.1

8,149

7.5

8,515

5.6

29,847

6.0

33,428

5.9

Share-based and non-cash compensation

836

0.7

662

0.6

1,115

0.7

2,973

0.6

4,053

0.7

Impairment related charges

(991)

(0.2)

2,568

0.5

Acquisition, integration and restructuring related costs

1,176

0.8

547

0.1

1,966

0.3

Production and product line exits

1,000

0.7

17,165

3.0

Adjusted gross profit (Non-GAAP)

$

59,534

53.0

$

42,639

39.4

$

82,788

54.8

$

253,084

50.6

$

304,886

53.5

 

 

Three Months Ended

Twelve Months Ended

 

September 27, 2019

June 28, 2019

September 28, 2018

September 27, 2019

September 28, 2018

 

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Operating expenses - GAAP

$

64,920

57.8

$

357,601

330.2

$

88,470

58.5

$

601,084

120.3

$

352,226

61.8

Amortization expense

(6,757)

(6.0)

(13,713)

(12.7)

(12,438)

(8.2)

(44,872)

(9.0)

(48,266)

(8.5)

Share-based and non-cash compensation

(3,551)

(3.2)

(2,383)

(2.2)

(6,984)

(4.6)

(22,742)

(4.6)

(27,614)

(4.8)

Impairment and restructuring charges

(3,196)

(2.8)

(272,973)

(252.0)

36

(284,329)

(56.9)

(12,840)

(2.3)

Litigation costs

(982)

(0.6)

(167)

(3,507)

(0.6)

Acquisition, integration and restructuring related costs

(366)

(0.3)

(3,612)

(3.3)

(3,117)

(2.1)

(6,799)

(1.4)

(9,948)

(1.7)

Production and product line exits

(857)

(0.6)

(2,445)

(0.4)

Adjusted operating expenses (Non-GAAP)

$

51,050

45.5

$

64,920

59.9

$

64,128

42.4

$

242,175

48.5

$

247,606

43.4

 

 

Three Months Ended

Twelve Months Ended

 

September 27, 2019

June 28, 2019

September 28, 2018

September 27, 2019

September 28, 2018

 

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Loss from operations - GAAP

$

(11,995)

(10.7)

$

(323,773)

(298.9)

$

(17,488)

(11.6)

$

(380,376)

(76.1)

$

(106,520)

(18.7)

Amortization expense

12,530

11.2

21,862

20.2

20,953

13.9

74,719

15.0

81,694

14.3

Share-based and non-cash compensation

4,387

3.9

3,045

2.8

8,099

5.4

25,684

5.1

31,666

5.6

Impairment and restructuring charges

3,196

2.8

272,973

252.0

(36)

283,338

56.7

15,408

2.7

Litigation costs

982

0.6

167

3,507

0.6

Acquisition, integration and restructuring related costs

366

0.3

3,612

3.3

4,293

2.8

7,377

1.5

11,914

2.1

Production and product line exits

1,857

1.2

19,610

3.4

Adjusted income (loss) from operations (Non-GAAP)

$

8,484

7.6

$

(22,281)

(20.6)

$

18,660

12.3

$

10,909

2.2

$

57,279

10.0

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

7,276

6.5

7,272

6.7

7,416

4.9

29,699

5.9

30,099

5.3

Adjusted EBITDA (Non-GAAP)

$

15,760

14.0

$

(15,009)

(13.9)

$

26,076

17.2

$

40,608

8.1

$

87,378

15.3

 

 

Three Months Ended

Twelve Months Ended

 

September 27, 2019

June 28, 2019

September 28, 2018

September 27, 2019

September 28, 2018

 

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Net income (loss) - GAAP

$

8,111

7.2

$

(324,714)

(299.8)

$

(16,494)

(10.9)

$

(386,203)

(77.3)

$

(139,977)

(24.5)

Amortization expense

12,530

11.2

21,862

20.2

20,953

13.9

74,719

15.0

81,694

14.3

Share-based and non-cash compensation

4,387

3.9

3,075

2.8

8,099

5.4

25,715

5.1

31,666

5.6

Impairment and restructuring charges

3,196

2.8

272,973

252.0

(36)

283,338

56.7

15,408

2.7

Warrant liability expense (gain)

5,023

4.5

(1,927)

(1.8)

(2,750)

(1.8)

(765)

(0.2)

(27,646)

(4.8)

Non-cash interest, net

1,015

0.9

1,015

0.9

1,015

0.7

4,061

0.8

4,587

0.8

Litigation costs

982

0.6

167

3,507

0.6

Acquisition, integration and restructuring related costs

366

0.3

3,582

3.3

4,293

2.8

7,346

1.5

11,914

2.1

Production and product line exits

1,857

1.2

19,610

3.4

Discontinued operations

378

0.3

6,215

1.1

Equity investment and sale of business (gains) losses

3,545

3.2

(4,705)

(4.3)

3,462

2.3

7,700

1.5

44,749

7.8

Other

Tax effect of non-GAAP adjustments

(37,367)

(33.3)

1,091

1.0

(11,235)

(7.4)

(35,281)

(7.1)

(23,893)

(4.2)

Adjusted net income (loss) (Non-GAAP)

$

806

0.7

$

(27,748)

(25.6)

$

10,524

7.0

$

(19,203)

(3.8)

$

27,834

4.9

 

Three Months Ended

Twelve Months Ended

 

September 27, 2019

June 28, 2019

September 28, 2018

September 27, 2019

September 28, 2018

 

Net Income
(Loss)

Income (loss)
per diluted
share

Net Income
(Loss)

Income (loss)
per diluted
share

Net Income
(Loss)

Income (loss)
per diluted
share

Net Income
(Loss)

Income (loss)
per diluted
share

Net Income
(Loss)

Income (loss)
per diluted
share

Net income (loss) - GAAP

$

8,111

 

$

(324,714)

 

$

(16,494)

 

$

(386,203)

 

$

(139,977)

 

Warrant liability gain

 

(1,927)

 

(2,750)

 

 

(27,646)

 

Net income (loss) - diluted

$

8,111

$

0.12

$

(326,641)

$

(4.95)

$

(19,244)

$

(0.29)

$

(386,203)

$

(5.88)

$

(167,623)

$

(2.57)

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (loss) (Non-GAAP)

$

806

$

0.01

$

(27,748)

$

(0.42)

$

10,524

$

0.16

$

(19,203)

$

(0.29)

$

27,834

$

0.42

 

Three Months Ended

Twelve Months Ended

 

September 27, 2019

June 28, 2019

September 28, 2018

September 27, 2019

September 28, 2018

 

Shares

 

Shares

 

Shares

 

Shares

 

Shares

 

Diluted shares - GAAP

66,378

 

65,945

 

65,648

 

65,686

 

65,311

 

Incremental shares

358

 

80

 

236

 

387

 

376

 

Adjusted diluted shares (Non-GAAP)

66,736

 

66,025

 

65,884

 

66,073

 

65,687

 

 

Three Months Ended

Twelve Months Ended

 

September 27, 2019

June 28, 2019

September 28, 2018

September 27, 2019

September 28, 2018

 

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Interest expense, net - GAAP

$

8,661

7.7

$

8,967

8.3

$

8,089

5.4

$

35,803

7.2

$

31,338

5.5

Non-cash interest expense

(1,015)

(0.9)

(1,015)

(0.9)

(1,015)

(0.7)

(4,061)

(0.8)

(4,588)

(0.8)

Adjusted Interest Expense (Non-GAAP)

$

7,646

6.8

$

7,952

7.3

$

7,074

4.7

$

31,742

6.4

$

26,750

4.7

 

Three Months Ended

Twelve Months Ended

 

September 27, 2019

June 28, 2019

September 28, 2018

September 27, 2019

September 28, 2018

 

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Cash flow from operations - GAAP

$

(7,578)

(6.8)

$

1,439

1.3

$

25,076

16.6

$

20,700

4.1

$

36,293

6.4

Capital expenditures

(6,058)

(5.4)

(9,305)

(8.6)

(13,601)

(9.0)

(37,963)

(7.6)

(53,044)

(9.3)

Free cash flow (Non-GAAP)

$

(13,636)

(12.1)

$

(7,866)

(7.3)

$

11,475

7.6

$

(17,263)

(3.5)

$

(16,751)

(2.9)

Free cash flow as a percentage of Adjusted net income

(1,692)

%

 

(28)

%

 

109

%

 

(90)

%

 

(60)

%

 

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191112006036/en/

CONTACT: MACOM Technology Solutions Holdings, Inc.

Stephen Ferranti

Vice President of Investor Relations

P: 978-656-2977

E:stephen.ferranti@macom.com

KEYWORD: MASSACHUSETTS UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: SEMICONDUCTOR INTERNET SATELLITE MOBILE/WIRELESS TECHNOLOGY

SOURCE: MACOM Technology Solutions Holdings, Inc.

Copyright Business Wire 2019.

PUB: 11/12/2019 04:05 PM/DISC: 11/12/2019 04:06 PM

http://www.businesswire.com/news/home/20191112006036/en