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 3, 2015.
Second Quarter Fiscal Year 2015 GAAP Results
- Revenue was $124.9 million, compared to
$114.9 million in the prior fiscal quarter and $107.8 million in
the previous year’s fiscal second quarter. The previous year's
fiscal second quarter included $9.7 million of revenue for the CPE
business sold in May 2014.
- Gross profit was 43.2 percent, compared
to 47.2 percent in the prior fiscal quarter and 24.9 percent in the
previous year’s fiscal second quarter;
- Operating income was $3.3 million,
compared to operating income of $9.1 million in the prior fiscal
quarter and operating loss of $20.6 million in the previous year’s
fiscal second quarter; and
- Net loss was $5.3 million, or $0.10
loss per diluted share, compared to net loss of $6.3 million, or
$0.13 loss per diluted share, in the prior fiscal quarter and net
loss of $22.1 million, or $0.47 loss per diluted share, in the
previous year's fiscal second quarter.
Second Quarter Fiscal Year 2015 Non-GAAP Results
- Gross profit was 53.1 percent, compared
to 53.7 percent in the prior fiscal quarter and 49.3 percent in the
previous year’s fiscal second quarter;
- Operating income was $30.3 million, or
24.3 percent of revenue, compared to $27.1 million, or 23.6 percent
of revenue, in the prior fiscal quarter and $21.4 million, or 19.9
percent of revenue, in the previous year’s fiscal second
quarter;
- EBITDA was $34.1 million, compared to
$30.6 million for the prior fiscal quarter and $24.8 million for
the previous year's fiscal second quarter; and
- Net income was $21.3 million, or $0.41
earnings per diluted share, compared to net income of $18.7
million, or $0.38 earnings per diluted share, in the prior fiscal
quarter and net income of $15.2 million, or $0.32 earnings per
diluted share, in the previous year’s fiscal second quarter.
Management Commentary
John Croteau, President and Chief Executive Officer, MACOM
stated, “I am pleased to announce another quarter of solid
execution. In the second fiscal quarter our networks business grew
due to strength in optical, with automotive up strong sequentially
as well. As we expected, demand for our multi-market products
snapped back from the broad based seasonal softness we saw the
previous quarter, returning close to our 2014 fourth quarter run
rate.”
“We have completed our 100-day integration of BinOptics and our
capacity expansion programs are right on track. The deal has
emerged as a catalyst for our Networks business overall, raising
MACOM to strategic vendor status in some of the largest
Telecommunications OEMs worldwide.”
Mr. Croteau concluded, “We believe we have the right strategy,
addressing the right secular growth drivers, with the correct
technology, intellectual property and leadership team to deliver
long term success.”
Business Outlook
For the fiscal third quarter ending July 3, 2015, MACOM
expects another quarter of growth with revenue expected to be in
the range of $126 to $130 million. Non-GAAP gross margin is
expected to be between 51 and 54 percent, and non-GAAP earnings per
share between $0.38 and $0.41 on an anticipated 55 million shares
outstanding, based on our increased share count following the
public offering of common stock we completed in February.
Conference Call
MACOM will host a conference call on Tuesday, April 28,
2015 at 5:00 p.m. Eastern Time to discuss its fiscal second 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 69009494. 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 pass code of 69009494. 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
M/A-COM Technology Solutions Holdings, Inc. (www.macom.com) is a
leading supplier of high-performance analog RF, microwave,
millimeterwave and photonic semiconductor products that
enable next-generation internet and modern battlefield
applications. Recognized for its broad catalog portfolio of
technologies and products, MACOM serves diverse markets,
including high speed optical, satellite, radar, wired and wireless
networks, automotive, industrial, medical, and mobile devices. A
pillar of the semiconductor industry, we thrive on more than 60
years of solving our customers' most complex problems, serving as a
true partner for applications 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 statements regarding
having the right strategy, addressing the right secular growth
drivers, with the correct technology, intellectual property and
leadership team to assure long term success, and any 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 greater than expected dilutive effect on earnings of our
equity issuances, outstanding indebtedness and related interest
expense and other costs, lower than expected demand in any or all
of our four primary end markets or from any of our large OEM
customers based on seasonal effects, macro-economic weakness or
otherwise, 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 GaN, InP lasers or other solutions offered by us, failures
or delays in porting and qualifying GaN or InP process technology
to our Lowell, MA 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, 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 potential for increased pricing pressure based on
competitive factors, technology shifts or otherwise, 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, 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, and 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, 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 2, 2015 as filed with the SEC on February 2, 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
non-GAAP financial information, including revenue, gross margin,
operating margin, operating income, net income, earnings per share,
EBITDA and other data calculated on a non-GAAP basis. This non-GAAP
information excludes the operations of Nitronex prior to the date
of acquisition, 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, litigation
settlement and costs, changes in the carrying values of liabilities
measured at fair value, contingent consideration, amortization of
debt discounts and issuance costs, other non-cash expenses,
earn-out costs, exited leased facility costs and certain income tax
items. Management does not believe that the excluded items are
reflective of MACOM's underlying performance. The exclusion 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 EBITDA, which is non-GAAP earnings before
interest, income taxes, depreciation and amortization. MACOM
believes this non-GAAP financial information provides additional
insight into MACOM's on-going 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 on-going 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.
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
3, January 2, April 4, April
3, April 4, 2015 2015 2014
2015 2014 Revenue $ 124,885 $ 114,864 $
107,827 $ 239,749 $ 191,981 Cost of revenue 70,878 60,663
80,964 131,541 129,396 Gross profit
54,007 54,201 26,863 108,208 62,585
Operating expenses: Research and development 21,061 19,474
20,347 40,535 32,777 Selling, general and administrative 29,227
25,599 24,504 54,826 43,887 Restructuring charges 413 —
2,635 413 15,725 Total operating
expenses 50,701 45,073 47,486 95,774
92,389 Income (loss) from operations 3,306 9,128
(20,623 ) 12,434 (29,804 ) Other income (expense):
Warrant liability expense (5,609 ) (10,608 ) (4,066 ) (16,217 )
(2,784 ) Interest expense (4,723 ) (4,723 ) (1,622 ) (9,446 )
(2,208 ) Other income 2,124 375 1,009 2,499
1,087 Total other expense (8,208 ) (14,956 ) (4,679 )
(23,164 ) (3,905 ) Loss before income taxes (4,902 ) (5,828
) (25,302 ) (10,730 ) (33,709 ) Income tax provision (benefit) 405
478 (5,680 ) 883 (7,271 ) Loss from continuing
operations (5,307 ) (6,306 ) (19,622 ) (11,613 ) (26,438 ) Loss
from discontinued operations — — (2,500 ) —
(4,605 ) Net loss $ (5,307 ) $ (6,306 ) $ (22,122 ) $ (11,613 ) $
(31,043 ) Net loss per share: Basic: Loss from continuing
operations $ (0.10 ) $ (0.13 ) $ (0.42 ) $ (0.24 ) $ (0.57 ) Loss
from discontinued operations — — (0.05 ) —
(0.10 ) Loss per share - basic $ (0.10 ) $ (0.13 ) $ (0.47 ) $
(0.24 ) $ (0.67 ) Diluted: Loss from continuing operations $
(0.10 ) $ (0.13 ) $ (0.42 ) $ (0.24 ) $ (0.57 ) Loss from
discontinued operations — — (0.05 ) — (0.10 )
Loss per share - diluted $ (0.10 ) $ (0.13 ) $ (0.47 ) $ (0.24 ) $
(0.67 ) Shares: Basic 50,593 47,606 46,808
49,100 46,656 Diluted 50,593 47,606
46,808 49,100 46,656
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 April 3, 2015 January 2,
2015 April 4, 2014 Amount Amount
Amount Revenue - GAAP $124,885 $114,864 $107,827 Nitronex
prior to acquisition — — (362 ) Revenue - Non-GAAP
$124,885 $114,864 $107,465
Amount
%Revenue
Amount
%Revenue
Amount
%Revenue
Gross Profit - GAAP $54,007 43.2 % $54,201 47.2 % $26,863
24.9 % Nitronex prior to acquisition — — — — 16 0.1 Amortization
expense 7,347 5.9 5,359 4.7 6,262 5.8 Non-cash compensation expense
599 0.5 354 0.3 426 0.4 Equity-based compensation 179 0.1 58 0.1 30
— Acquisition FMV step-up 3,538 2.8 835 0.7 18,003 16.8 Third-party
engineering costs 305 0.2 924 0.8 570 0.5 Integration costs and
synergy savings 356 0.3 (4 ) — 822 0.8
Gross Profit - non-GAAP $66,331 53.1 % $61,727
53.7 % $52,992 49.3 % Research and Development - GAAP
$21,061 16.9 % $19,474 17.0 % $20,347 18.9 % Nitronex prior to
acquisition — — — — (438 ) (0.5 ) Non-cash compensation expense
(1,620 ) (1.3 ) (1,038 ) (0.9 ) (728 ) (0.7 ) Equity-based
compensation (669 ) (0.5 ) (519 ) (0.5 ) (137 ) (0.1 ) Acquisition
FMV step-up (204 ) (0.2 ) (204 ) (0.2 ) (183 ) (0.2 )
Integration costs and synergy savings (137 ) (0.1 ) (171 ) (0.1 )
(2,414 ) (2.2 ) Third-party engineering costs 305 0.2
924 0.8 570 0.5 Research and
Development - non-GAAP $18,736 15.0 % $18,466 16.1 %
$17,017 15.8 % Selling, General and Administrative -
GAAP $29,227 23.4 % $25,599 22.3 % $24,504 22.7 % Nitronex prior to
acquisition — — — — (191 ) (0.4 ) Amortization expense (3,096 )
(2.5 ) (1,053 ) (0.9 ) (476 ) (0.4 ) Non-cash compensation expense
(7,578 ) (6.1 ) (2,405 ) (2.1 ) (2,136 ) (2.0 ) Equity-based
compensation (501 ) (0.4 ) (317 ) (0.3 ) (214 ) (0.2 ) Acquisition
FMV step-up (28 ) — (28 )
—
(21 ) — Litigation costs (971 ) (0.8 ) (717 ) (0.6 ) (440 ) (0.4 )
Transaction expenses 530 0.4 (4,636 ) (4.0 ) (250 ) (0.2 )
Integration costs and synergy savings (282 ) (0.2 ) (296 ) (0.3 )
(6,178 ) (5.4 ) Selling, General and Administrative - non-GAAP
$17,301 13.9 % $16,147 14.1 % $14,598 13.6 %
Total operating expenses - GAAP $50,701 40.6 % $45,073 39.2
% $47,486 44.0 % Nitronex prior to acquisition — — — — (629 ) (0.6
) Amortization expense (3,096 ) (2.5 ) (1,053 ) (0.9 ) (476 ) (0.4
) Non-cash compensation expense (9,198 ) (7.4 ) (3,443 ) (3.0 )
(2,864 ) (2.7 ) Equity-based compensation (1,170 ) (0.9 ) (836 )
(0.7 ) (351 ) (0.3 ) Acquisition FMV step-up (232 ) (0.2 ) (232 )
(0.2 ) (204 ) (0.2 ) Restructuring charges (413 ) (0.3 ) — — (2,635
) (2.5 ) Integration costs and synergy savings (419 ) (0.3 ) (467 )
(0.4 ) (8,592 ) (8.0 ) Litigation costs (971 ) (0.8 ) (717 ) (0.6 )
(440 ) (0.4 ) Transaction expenses 530 0.4 (4,636 ) (4.0 ) (250 )
(0.2 ) Third-party engineering 305 0.2 924 0.8
570 0.5 Total operating expenses -
non-GAAP $36,037 28.9 % $34,613 30.1 % $31,615
29.4 % Income (loss) from operations - GAAP $3,306 2.6 %
$9,128 7.9 % $(20,623 ) (19.1 )% Nitronex prior to acquisition — —
— — 645 0.8 Amortization expense 10,446 8.4 6,412 5.6 6,738 6.3
Non-cash compensation expense 9,797 7.8 3,797 3.3 3,290 3.1
Equity-based compensation 1,349 1.1 894 0.8 381 0.4 Restructuring
charges 413 0.3 — — 2,635 2.5 Acquisition FMV step-up 3,770 3.0
1,067 0.8 18,207 16.9 Litigation costs 971 0.8 717 0.6 440 0.4
Transaction expenses (530 ) (0.4 ) 4,636 4.0 250 0.2 Integration
costs and synergy savings 772 0.6 463 0.6
9,414 8.8 Income from operations - non-GAAP
$30,294 24.3 % $27,114 23.6 % $21,377 19.9 %
Net loss - GAAP $(5,307 ) (4.2 )% $(6,306 ) (5.5 )% $(22,122
) (20.5 )% Nitronex prior to acquisition — — — — 645 0.6
Amortization expense 8,566 6.9 5,258 4.6 5,155 4.8 Non-cash
compensation expense 8,309 6.7 3,113 2.7 2,517 2.3 Equity-based
compensation 1,107 0.9 733 0.6 291 0.3 Contingent consideration
(1,640 ) (1.3 ) — — — — Restructuring charges 339 0.3 — — 2,016 1.9
Warrant liability expense 5,609 4.5 10,608 9.2 4,066 3.8 Non-cash
interest expense 330
0.3
360 0.3 91 0.1 Acquisition FMV step-up 3,092 2.5 875 0.8 13,061
12.2 Litigation costs 797 0.6 588 0.5 337 0.3 Integration costs and
synergy savings 633 0.5 380 0.3 7,201 6.7 Transaction expenses (435
) (0.3 ) 3,420 3.0 191 0.2 Transition services for divested
business (102 ) (0.1 ) (308 ) (0.3 ) (741 ) (0.7 ) Discontinued
operations — — — — 2,500 2.3
Net income - non-GAAP $21,298 17.1 % $18,721
16.3 % $15,208 14.2 % Income from operations -
non-GAAP $30,294 $27,114 $21,377 Depreciation expense 3,759 3,453
3,367 Other income, net — — 40 EBITDA $34,053
$30,567 $24,784 Interest expense- GAAP
$4,723 $4,723 $1,622 Non-cash interest expense (403 ) (439 ) (119 )
Interest expense- non-GAAP $4,320 $4,284 $1,503
Three Months Ended April 3, 2015
January 2, 2015 April 4, 2014 Amount
Income(loss)
perdilutedshare
Amount
Income(loss)
perdilutedshare
Amount
Income(loss)
perdilutedshare
Net loss - GAAP $(5,307 ) $(0.10 ) $(6,306 ) $(0.13 )
$(22,122 ) $(0.47 ) Net income - non-GAAP $21,298
$0.41 $18,721 $0.38 $15,208 $0.32
Diluted shares - GAAP 50,593 47,606 46,808
Incremental stock options, warrants, restricted stock and units
1,908 1,599 1,406 Diluted shares - non-GAAP
52,501 49,206 48,214
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS,
INC.
RECONCILIATION OF GAAP TO NON-GAAP
RESULTS
(unaudited and in thousands, except per
share data)
Six Months Ended April 3, 2015 April
4, 2014 Amount Amount
Revenue - GAAP $239,749 $191,981 Nitronex prior to acquisition —
(1,048 ) Revenue - non-GAAP $239,749 $190,933
Amount
%Revenue
Amount
%Revenue
Gross Profit - GAAP $108,208
45.1
%
$62,585
32.6
%
Nitronex prior to acquisition — 0.1 959 0.5 Amortization expense
12,706 5.3 7,509 3.9 Non-cash compensation expense 953 0.4 709 0.4
Equity-based compensation 237 0.1 30 — Acquisition FMV step-up
4,373 1.8 18,539 9.7 Integration costs and synergy savings 352 0.1
961 0.5 Third-party engineering costs 1,229 0.5 570
0.3 Gross Profit - non-GAAP $128,058
53.4
%
$91,862
48.1
%
Research and Development - GAAP $40,535
16.9
%
$32,777
17.1
%
Nitronex prior to acquisition — — (1,423 ) (0.8 ) Non-cash
compensation expense (2,658 ) (1.1 ) (1,212 ) (0.6 ) Equity-based
compensation (1,188 ) (0.5 ) (137 ) (0.1 ) Acquisition FMV step-up
(408 ) (0.2 ) (255 ) (0.1 ) Integration costs and synergy savings
(308 ) (0.1 ) (2,450 ) (1.3 ) Third-party engineering costs 1,229
0.5 570 0.3 Research and Development -
non-GAAP $37,202 15.5
%
$27,870
14.6
%
Selling, General and Administrative - GAAP $54,826
22.9
%
$43,887 22.9
%
Nitronex prior to acquisition — (0.1 ) (685 ) (0.5 ) Amortization
expense (4,149 ) (1.7 ) (842 ) (0.4 ) Non-cash compensation expense
(9,983 ) (4.2 ) (3,214 ) (1.7 ) Equity-based compensation (818 )
(0.3 ) (214 ) (0.1 ) Acquisition FMV step-up (56 ) — (32 ) —
Integration costs and synergy savings (578 ) (0.2 ) (6,593 ) (3.5 )
Litigation costs (1,688 ) (0.7 ) (1,404 ) (0.7 ) Transaction
expenses (4,106 ) (1.7 ) (4,472 ) (2.3 ) Selling, General and
Administrative - non-GAAP $33,448
14.0
%
$26,431
13.8
%
Total operating expenses - GAAP $95,774
39.9
%
$92,389
48.1
%
Nitronex prior to acquisition — 0.1 (2,108 ) (1.2 )
Amortization expense (4,149 ) (1.7 ) (842 ) (0.4 ) Non-cash
compensation expense (12,641 ) (5.3 ) (4,426 ) (2.3 ) Equity-based
compensation (2,006 ) (0.8 ) (351 ) (0.2 ) Acquisition FMV step-up
(464 ) (0.2 ) (287 ) (0.2 ) Contingent consideration and earn-out
costs — — — — Restructuring charges (413 ) (0.2 ) (15,725 ) (8.2 )
Integration costs and synergy savings (886 ) (0.4 ) (9,043 ) (4.7 )
Litigation costs (1,688 ) (0.7 ) (1,404 ) (0.7 ) Transaction
expenses (4,106 ) (1.7 ) (4,472 ) (2.3 ) Third-party engineering
1,229 0.5 570 0.3 Total operating
expenses - non-GAAP $70,650
29.5
%
$54,301
28.4
%
Income (loss) from operations - GAAP $12,434 5.2
%
(29,804 )
(15.5
)%
Nitronex prior to Acquisition — — 3,067 1.8 Amortization expense
16,858 7.0 8,351 4.4 Non-cash compensation expense 13,594 5.7 5,135
2.7 Equity-based compensation 2,243 0.9 381 0.2 Contingent
consideration and earn-out costs — — — — Restructuring charges 413
0.2 15,725 8.2 Acquisition FMV step-up 4,837 2.0 18,826 9.9
Integration costs and synergy savings 1,235 0.5 10,004 5.2
Litigation costs 1,688 0.7 1,404 0.7 Transaction expenses 4,106
1.7 4,472 2.3 Income from operations -
non-GAAP $57,408
23.9
%
$37,561
19.7
%
Net loss - GAAP $(11,613 )
(4.8
)%
$(31,043 )
(16.2
)%
Nitronex prior to acquisition — (0.1 ) 3,067 1.2 Amortization
expense 13,824 5.8 6,389 3.3 Non-cash compensation expense 11,148
4.6 3,928 2.1 Equity-based compensation 1,840 0.8 291 0.2
Contingent consideration (1,640 ) (0.7 ) — — Restructuring charges
339 0.1 12,030 6.3 Warrant liability expense 16,217 6.8 2,784 1.5
Non-cash interest expense 689 0.3 182 0.1 Acquisition FMV step-up
3,966 1.7 13,535 7.1 Integration costs and synergy savings 1,012
0.4 7,652 4.0 Litigation costs 1,385 0.6 1,074 0.6 Transaction
expenses 3,261 1.4 3,537 1.9 Transition services for divested
business (409 ) (0.2 ) (741 ) (0.4 ) Discontinued operations —
— 4,605 2.4 Net income - non-GAAP
$40,019
16.7
%
$27,290
14.3
%
Amount
Income(loss)
perdilutedshare
Amount
Incomeperdilutedshare
Net loss - GAAP $(11,613 ) $(0.24 ) $(31,043 ) $(0.67 ) Net
income - non-GAAP $40,019 $0.79 $27,290 $0.57
Diluted shares - GAAP 49,100 46,656 Incremental stock
options, warrants, restricted stock and units 1,814 1,412
Diluted shares - non-GAAP 50,914 48,068
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited and in thousands)
April 3, October 3, 2015 2014
ASSETS Current assets: Cash and cash equivalents $ 73,970 $ 173,895
Accounts receivable, net 89,350 75,156 Inventories 84,077 73,572
Deferred income taxes and other 61,343 50,726 Total
current assets 308,740 373,349 Property and equipment, net 65,352
50,357 Goodwill and intangible assets, net 357,900 153,417 Deferred
income taxes and other 70,487 105,111 TOTAL ASSETS $
802,479 $ 682,234 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Current portion of long-term debt $ 4,062 $
3,478 Accounts payable, accrued liabilities and other 63,844 64,910
Deferred revenue 267 17,258 Total current liabilities
68,173 85,646 Long-term debt, less current portion 342,335 343,178
Common stock warrant liability 32,018 15,801 Deferred income taxes
and other 8,028 9,042 Total liabilities 450,554
453,667 Commitments and contingencies Stockholders' equity
351,925 228,567 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $
802,479 $ 682,234
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(unaudited and in thousands)
Six Months Ended April 3, April 4,
2015 2014 CASH FLOWS FROM OPERATING
ACTIVITIES: Net loss $(11,613 ) $(31,043 ) Non-cash adjustments
55,240 43,029 Change in operating assets and liabilities (27,609 )
(16,270 ) Net cash from operating activities 16,018 (4,284 )
CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of businesses,
net (222,955 ) (258,108 ) Sale of a business — 8,627 Strategic
investments (250 ) — Purchases of property and equipment (14,036 )
(5,994 ) Acquisition of intellectual property (1,587 ) (4,096 ) Net
cash used in investing activities (238,828 ) (259,571 ) CASH FLOWS
FROM FINANCING ACTIVITIES: Proceeds from issuance of term notes
payable — 245,000 Payment of debt (2,982 ) (34,952 ) Capital
contributions — 3,200 Proceeds from stock offering, net 127,959 —
Proceeds from revolving credit facility 100,000 — Payments on
revolving credit facility (100,000 ) — Financing activities (2,092
) 3,258 Net cash from financing activities 122,885
216,506 NET CHANGE IN CASH AND CASH EQUIVALENTS (99,925 )
(47,349 ) CASH AND CASH EQUIVALENTS — Beginning of period 173,895
110,488 CASH AND CASH EQUIVALENTS — End of period
$73,970 $63,139
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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