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 third quarter
ended July 3, 2015.
Third Quarter Fiscal Year 2015 GAAP Results
- Revenue was $130.7 million, compared to
$124.9 million in the prior fiscal quarter and $112.4 million in
the previous year’s fiscal third quarter;
- Gross profit was 45.8 percent, compared
to 43.2 percent in the prior fiscal quarter and 44.7 percent in the
previous year’s fiscal third quarter;
- Operating income was $10.2 million,
compared to $3.3 million in the prior fiscal quarter and $7.3
million in the previous year’s fiscal third quarter; and
- Net income was $8.0 million, or $0.15
income per diluted share, compared to net loss of $7.5 million, or
$0.15 loss per diluted share, in the prior fiscal quarter and net
income of $1.2 million, or $0.02 income per diluted share, in the
previous year's fiscal third quarter.
Third Quarter Fiscal Year 2015 Non-GAAP Results
- Gross profit was 54.0 percent, compared
to 53.1 percent in the prior fiscal quarter and 51.7 percent in the
previous year’s fiscal third quarter;
- Operating income was $32.3 million, or
24.7 percent of revenue, compared to $30.3 million, or 24.3 percent
of revenue, in the prior fiscal quarter and $23.9 million, or 21.3
percent of revenue, in the previous year’s fiscal third
quarter;
- Adjusted EBITDA was $35.6 million,
compared to $34.1 million for the prior fiscal quarter and $27.2
million for the previous year's fiscal third quarter; and
- Net income was $23.1 million, or $0.42
per diluted share, compared to net income of $21.3 million, or
$0.41 per diluted share, in the prior fiscal quarter and net income
of $15.8 million, or $0.33 per diluted share, in the previous
year’s fiscal third quarter.
Management Commentary
John Croteau, MACOM’s President and Chief Executive Officer,
stated, "I am pleased to announce another quarter of solid
execution. During the fiscal third quarter Networks grew on the
back of strong demand in 100G for long haul and metro and lasers in
the access market. In addition, we saw weakness in multi-market,
including industrial. That said, end market demand across the full
breadth of our catalog portfolio including Networks and A&D
more than offset this weakness and actually grew sequentially.
During the quarter, we successfully achieved our goal of
doubling laser production capacity at our Ithaca fab. We remain on
track to double production capacity using our Lowell fab by the
beginning of calendar 2016. These expansion efforts will enable us
to address the next secular growth opportunity in datacenters."
Mr. Croteau concluded, "In mid-July we announced a
definitive agreement to divest our automotive business to Autoliv
ASP Inc. This divestiture supports MACOM's strategy to be a
pure-play high performance analog company. We expect it will
significantly accelerate our ability to meet our target
operating model of 60% non-GAAP gross margin and 30% non-GAAP
operating margin. We anticipate our optical and laser
businesses will continue to outperform allowing us to
meet our growth and profit objectives.”
Business Outlook
For the fiscal fourth quarter ending October 2, 2015, MACOM
expects another quarter of growth with revenue expected to be in
the range of $133 to $137 million. Non-GAAP gross margin is
expected to be between 53 and 55 percent, and non-GAAP earnings per
share between $0.43 and $0.46 on an anticipated 55.5 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, July 28, 2015
at 5:00 p.m. Eastern Time to discuss its fiscal third 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 69910703. 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 69910703. 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
our expectations of previously-announced divestment of our
Automotive business, statements about expected expansion in
capacity 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 greater than expected dilutive effect on earnings of our
equity issuances, outstanding indebtedness and related interest
expense and other costs, the potential that the expected rollout of
fiber-to-the-home network technology or other new network
technology deployments in China 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 any or all of our primary end markets or from any of our
large OEM customers based on seasonal effects, macro-economic
weakness or otherwise, delays in completing, failure to complete or
failure to realize the projected benefits of our anticipated
Automotive business divestment, 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 April 3, 2015 as
filed with the SEC on May 13, 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,
Adjusted 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 assets and 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 Adjusted 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 Nine Months
Ended July 3, April 3, July
4, July 3, July 4, 2015 2015
2014 2015 2014 Revenue $ 130,663 $
124,885 $ 112,364 $ 370,412 $ 304,345 Cost of revenue 70,879
70,878 62,150 202,420 191,546 Gross
profit 59,784 54,007 50,214 167,992
112,799 Operating expenses: Research and development 21,611
21,061 20,810 62,146 53,587 Selling, general and administrative
27,428 29,227 22,065 82,254 65,952 Restructuring charges 558
413 — 971 15,725 Total operating
expenses 49,597 50,701 42,875 145,371
135,264 Income (loss) from operations 10,187 3,306
7,339 22,621 (22,465 ) Other income (expense):
Warrant liability (expense) gain 546 (5,609 ) (2,782 ) (15,671 )
(5,566 ) Interest expense (4,505 ) (4,723 ) (5,625 ) (13,952 )
(7,833 ) Other income (expense) 3,775 (1,376 ) 1,354
2,774 2,441 Total other expense (184 ) (11,708 )
(7,053 ) (26,849 ) (10,958 ) Income (loss) before income
taxes 10,003 (8,402 ) 286 (4,228 ) (33,423 ) Income tax provision
(benefit) 1,976 (865 ) (897 ) 1,589 (8,168 ) Income
(loss) from continuing operations 8,027 (7,537 ) 1,183 (5,817 )
(25,255 ) Income (loss) from discontinued operations — —
— — (4,605 ) Net income (loss) $ 8,027
$ (7,537 ) $ 1,183 $ (5,817 ) $ (29,860 ) Net income
(loss) per share: Basic: Income (loss) from continuing operations $
0.15 $ (0.15 ) $ 0.03 $ (0.12 ) $ (0.54 ) Income (loss) from
discontinued operations — — — — (0.10 )
Income (loss) per share - basic $ 0.15 $ (0.15 ) $ 0.03
$ (0.12 ) $ (0.64 ) Diluted: Income (loss) from
continuing operations $ 0.15 $ (0.15 ) $ 0.02 $ (0.12 ) $ (0.54 )
Income (loss) from discontinued operations — — —
— (0.10 ) Income (loss) per share - diluted $ 0.15
$ (0.15 ) $ 0.02 $ (0.12 ) $ (0.64 ) Shares:
Basic 53,098 50,593 47,280 50,433
46,856 Diluted 55,175 50,593 48,524
50,433 46,856
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 July 3, 2015
April 3, 2015 July 4, 2014
Amount Amount Amount Revenue - GAAP $
130,663 $ 124,885 $ 112,364
Amount
%Revenue
Amount
%Revenue
Amount
%Revenue
Gross Profit - GAAP $ 59,784 45.8 % $ 54,007 43.2 % $ 50,214
44.7 % Amortization expense 6,932 5.3 7,347 5.9 6,270 5.6 Non-cash
compensation expense 503 0.4 599 0.5 646 0.6 Equity-based
compensation 27 — 179 0.1 23 — Acquisition FMV step-up 2,464 1.9
3,538 2.8 168 0.1 Third-party engineering costs 396 0.3 305 0.2 400
0.4 Integration costs and synergy savings 487 0.4 356
0.3 345 0.3 Gross Profit - non-GAAP $
70,593 54.0 % $ 66,331 53.1 % $ 58,066
51.7 % Research and Development - GAAP $
21,611 16.5 % $ 21,061 16.9 % $ 20,810 18.5 % Non-cash compensation
expense (1,506 ) (1.2 ) (1,620 ) (1.3 ) (893 ) (0.8 ) Equity-based
compensation (305 ) (0.2 ) (669 ) (0.5 ) (228 ) (0.2 ) Acquisition
FMV step-up (204 ) (0.2 ) (204 ) (0.2 ) (204 ) (0.2 ) Integration
costs and synergy savings (74 ) (0.1 ) (137 ) (0.1 ) (1,108 ) (1.0
) Third-party engineering costs 396 0.3 305
0.2 400 0.4 Research and Development -
non-GAAP $ 19,918 15.2 % $ 18,736 15.0
% $ 18,777 16.7 % Selling, General and
Administrative - GAAP $ 27,428 21.0 % $ 29,227 23.4 % $ 22,065 19.6
% Amortization expense (3,201 ) (2.4 ) (3,096 ) (2.5 ) (505 ) (0.4
) Non-cash compensation expense (4,763 ) (3.6 ) (7,578 ) (6.1 )
(1,851 ) (1.6 ) Equity-based compensation (246 ) (0.2 ) (501 ) (0.4
) (147 ) (0.1 ) Acquisition FMV step-up (28 ) — (28 ) — (28 ) —
Litigation costs (559 ) (0.4 ) (971 ) (0.8 ) (1,836 ) (1.6 )
Transaction expenses (125 ) (0.1 ) 530 0.4 — — Integration costs
and synergy savings (136 ) (0.1 ) (282 ) (0.2 ) (2,321 ) (2.1 )
Selling, General and Administrative - non-GAAP $ 18,370 14.1
% $ 17,301 13.9 % $ 15,377 13.7
% Total operating expenses - GAAP $ 49,597 38.0 % $ 50,701
40.6 % $ 42,875 38.2 % Amortization expense (3,201 ) (2.4 ) (3,096
) (2.5 ) (505 ) (0.4 ) Non-cash compensation expense (6,269 ) (4.8
) (9,198 ) (7.4 ) (2,744 ) (2.4 ) Equity-based compensation (551 )
(0.4 ) (1,170 ) (0.9 ) (375 ) (0.3 ) Acquisition FMV step-up (232 )
(0.2 ) (232 ) (0.2 ) (232 ) (0.2 ) Restructuring charges (558 )
(0.4 ) (413 ) (0.3 ) — — Integration costs and synergy savings (210
) (0.2 ) (419 ) (0.3 ) (3,429 ) (3.1 ) Litigation costs (559 ) (0.4
) (971 ) (0.8 ) (1,836 ) (1.6 ) Transaction expenses (125 ) (0.1 )
530 0.4 — — Third-party engineering 396 0.3 305
0.2 400 0.4 Total operating expenses -
non-GAAP $ 38,288 29.3 % $ 36,037 28.9
% $ 34,154 30.4 % Income from operations -
GAAP $ 10,187 7.8 % $ 3,306 2.6 % $ 7,339 6.5 % Amortization
expense 10,133 7.8 10,446 8.4 6,775 6.0 Non-cash compensation
expense 6,772 5.2 9,797 7.8 3,390 3.0 Equity-based compensation 578
0.4 1,349 1.1 398 0.4 Restructuring charges 558 0.4 413 0.3 — —
Acquisition FMV step-up 2,696 2.1 3,770 3.0 400 0.4 Litigation
costs 559 0.4 971 0.8 1,836 1.6 Transaction expenses 125 0.1 (530 )
(0.4 ) — — Integration costs and synergy savings 697 0.5
772 0.6 3,774 3.4 Income from
operations - non-GAAP $ 32,305 24.7 % $ 30,294
24.3 % $ 23,912 21.3 % Net income
(loss) - GAAP $ 8,027 6.1 % $ (7,537 ) (6.0 ) % $ 1,183 1.1 %
Amortization expense 8,306 6.4 8,566 6.9 5,183 4.6 Non-cash
compensation expense 5,529 4.2 8,309 6.7 2,593 2.3 Equity-based
compensation 472 0.4 1,107 0.9 304 0.3 Impairment of minority
investment — — 2,230 1.8 — — Contingent consideration — — (1,640 )
(1.3 ) — — Restructuring charges 457 0.3 339 0.3 — — Warrant
liability expense (546 ) (0.4 ) 5,609 4.5 2,782 2.5 Non-cash
interest expense 333 0.3 330 0.3 1,838 1.6 Acquisition FMV step-up
2,210 1.7 3,092 2.5 306 0.3 Litigation costs (2,822 ) (2.2 ) 797
0.6 1,405 1.3 Integration costs and synergy savings 760 0.6 633 0.5
1,270 1.1 Transaction expenses 404 0.3 (435 ) (0.3 ) — — Transition
services for divested business — — (102 ) (0.1 )
(1,036 ) (0.9 ) Net income - non-GAAP $ 23,130 17.7 %
$ 21,298 17.1 % $ 15,828 14.1 %
Income from operations - non-GAAP $ 32,305 $ 30,294 $ 23,912
Depreciation expense 3,298 3,759 3,296
Adjusted EBITDA $ 35,603 $ 34,053 $ 27,208
Interest expense- GAAP $ 4,505 $ 4,723 $ 5,625 Non-cash
interest expense (405 ) (403 ) (2,402 ) Interest expense- non-GAAP
$ 4,100 $ 4,320 $ 3,223
Three Months Ended July 3, 2015
April 3, 2015 July 4, 2014
Amount
Income(loss)
perdilutedshare
Amount
Income(loss)
perdilutedshare
Amount
Incomeperdilutedshare
Net income (loss) - GAAP $ 8,027 $ 0.15 $
(7,537 ) $ (0.15 ) $ 1,183 $ 0.02 Net income -
non-GAAP $ 23,130 $ 0.42 $ 21,298 $ 0.41
$ 15,828 $ 0.33 Diluted shares - GAAP
55,175 50,593 48,524 Incremental stock options, warrants,
restricted stock and units — 1,908 — Diluted
shares - non-GAAP 55,175 52,501 48,524
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS,
INC.
RECONCILIATION OF GAAP TO NON-GAAP
RESULTS
(unaudited and in thousands, except per
share data)
Nine Months Ended July 3, 2015
July 4, 2014 Amount Amount
Revenue - GAAP $ 370,412 $ 304,345 Nitronex prior to acquisition —
(1,048 ) Revenue - non-GAAP $ 370,412 $ 303,297
Amount
%Revenue
Amount
%Revenue
Gross Profit - GAAP $ 167,992 45.4 % $ 112,799 37.1 %
Nitronex prior to acquisition — — 959 0.5 Amortization expense
19,638 5.3 13,779 4.5 Non-cash compensation expense 1,456 0.4 1,355
0.4 Equity-based compensation 264 0.1 53 — Acquisition FMV step-up
6,837 1.8 18,707 6.2 Integration costs and synergy savings 839 0.2
1,306 0.4 Third-party engineering costs 1,625 0.4 970
0.3 Gross Profit - non-GAAP $ 198,651 53.6
% $ 149,928 49.4 % Research and
Development - GAAP $ 62,146 16.8 % $ 53,587 17.6 % Nitronex prior
to acquisition — — (1,423 ) (0.3 ) Non-cash compensation expense
(4,164 ) (1.1 ) (2,105 ) (0.7 ) Equity-based compensation (1,493 )
(0.4 ) (365 ) (0.1 ) Acquisition FMV step-up (612 ) (0.2 ) (459 )
(0.2 ) Integration costs and synergy savings (382 ) (0.1 ) (3,558 )
(1.2 ) Third-party engineering costs 1,625 0.4 970
0.3 Research and Development - non-GAAP $ 57,120
15.4 % $ 46,647 15.4 % Selling,
General and Administrative - GAAP $ 82,254 22.2 % $ 65,952 21.7 %
Nitronex prior to acquisition — — (685 ) (0.2 ) Amortization
expense (7,350 ) (2.0 ) (1,347 ) (0.4 ) Non-cash compensation
expense (14,746 ) (4.0 ) (5,065 ) (1.7 ) Equity-based compensation
(1,064 ) (0.3 ) (361 ) (0.1 ) Acquisition FMV step-up (84 ) — (60 )
— Integration costs and synergy savings (714 ) (0.2 ) (8,914 ) (2.9
) Litigation costs (2,247 ) (0.6 ) (3,240 ) (1.1 ) Transaction
expenses (4,231 ) (1.1 ) (4,472 ) (1.5 ) Selling, General and
Administrative - non-GAAP $ 51,818 14.0 % $ 41,808
13.8 % Total operating expenses - GAAP $
145,371 39.2 % $ 135,264 44.4 % Nitronex prior to acquisition — —
(2,108 ) (0.4 ) Amortization expense (7,350 ) (2.0 ) (1,347 ) (0.4
) Non-cash compensation expense (18,910 ) (5.1 ) (7,170 ) (2.4 )
Equity-based compensation (2,557 ) (0.7 ) (726 ) (0.2 ) Acquisition
FMV step-up (696 ) (0.2 ) (519 ) (0.2 ) Restructuring charges (971
) (0.3 ) (15,725 ) (5.2 ) Integration costs and synergy savings
(1,096 ) (0.3 ) (12,472 ) (4.1 ) Litigation costs (2,247 ) (0.6 )
(3,240 ) (1.1 ) Transaction expenses (4,231 ) (1.1 ) (4,472 ) (1.5
) Third-party engineering 1,625 0.4 970 0.3
Total operating expenses - non-GAAP $ 108,938 29.4
% $ 88,455 29.2 % Income (loss) from
operations - GAAP $ 22,621 6.1 % $ (22,465 ) (7.4 ) % Nitronex
prior to Acquisition — — 3,067 1.0 Amortization expense 26,988 7.3
15,126 5.0 Non-cash compensation expense 20,366 5.5 8,525 2.8
Equity-based compensation 2,820 0.8 779 0.3 Restructuring charges
971 0.3 15,725 5.2 Acquisition FMV step-up 7,533 2.0 19,226 6.3
Integration costs and synergy savings 1,935 0.5 13,778 4.5
Litigation costs 2,247 0.6 3,240 1.1 Transaction expenses 4,231
1.1 4,472 1.5 Income from operations -
non-GAAP $ 89,712 24.2 % $ 61,473 20.3
% Net loss - GAAP $ (5,817 ) (1.6 ) % $ (29,860 ) (9.8 ) %
Nitronex prior to acquisition — — 3,067 0.9 Amortization expense
22,130 6.0 11,572 3.8 Non-cash compensation expense 16,951 4.6
6,521 2.2 Equity-based compensation 2,312 0.6 595 0.2 Impairment of
minority investment 2,230 0.6 — — Contingent consideration (1,640 )
(0.4 ) — — Restructuring charges 796 0.2 12,030 4.0 Warrant
liability expense 15,671 4.2 5,566 1.8 Non-cash interest expense
1,023 0.3 2,020 0.7 Acquisition FMV step-up 6,177 1.7 13,841 4.6
Integration costs and synergy savings 1,773 0.5 8,922 2.9
Litigation costs (1,437 ) (0.4 ) 2,479 0.8 Transaction expenses
3,388 0.9 3,537 1.2 Transition services for divested business (409
) (0.1 ) (1,777 ) (0.6 ) Discontinued operations — —
4,605 1.5 Net income - non-GAAP $ 63,148 17.0
% $ 43,118 14.2 %
Amount
Income(loss)
perdilutedshare
Amount
Income(loss)
perdilutedshare
Net loss - GAAP $ (5,817 ) $ (0.12 ) $ (29,860 ) $(0.64)
Net income - non-GAAP $ 63,148 $1.20 $ 43,118
$0.89 Diluted shares - GAAP 50,433 46,856 Incremental stock
options, warrants, restricted stock and units 2,126 1,349
Diluted shares - non-GAAP 52,559 48,205
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited and in thousands)
July 3, October 3, 2015
2014 ASSETS Current assets: Cash and cash equivalents $
80,687 $ 173,895 Accounts receivable, net 89,714 75,156 Inventories
84,373 73,572 Deferred income taxes and other 54,380 50,726
Total current assets 309,154 373,349 Property and equipment, net
80,167 50,357 Goodwill and intangible assets, net 351,295 153,417
Deferred income taxes and other 66,098 105,111 TOTAL ASSETS
$ 806,714 $ 682,234 LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities: Current portion of lease $ 554 $ —
Current portion of long-term debt 3,500 3,478 Accounts payable,
accrued liabilities and other 61,264 64,910 Deferred revenue 336
17,258 Total current liabilities 65,654 85,646 Lease
payable, less current portion 608 — Long-term debt, less current
portion 340,813 343,178 Common stock warrant liability 31,472
15,801 Deferred income taxes and other 7,365 9,042 Total
liabilities 445,912 453,667 Commitments and contingencies
Stockholders' equity 360,802 228,567 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 806,714 $ 682,234
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(unaudited and in thousands)
Nine Months Ended July 3,
July 4, 2015 2014 CASH FLOWS FROM
OPERATING ACTIVITIES: Net loss $ (5,817 ) $ (29,860 ) Non-cash
adjustments 86,208 47,690 Change in operating assets and
liabilities (52,196 ) (8,170 ) Net cash from operating activities
28,195 9,660 CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of businesses, net (208,352 ) (258,108 ) Sale of a
business — 8,627 Sale of a product line — 12,000 Strategic
investments 1,250 (5,250 ) Purchases of property and equipment
(32,488 ) (10,279 ) Acquisition of intellectual property (2,483 )
(5,088 ) Net cash used in investing activities (242,073 ) (258,098
) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from notes payable
— 350,000 Payment of assumed debt — (34,952 ) Capital contributions
— 3,200 Proceeds from stock offering, net of issuance costs 127,697
— Proceeds from revolving facility 100,000 — Proceeds from stock
awards and units 5,329 3,777 Financing and offering costs (39 )
(8,790 ) Payments on revolving facility (100,000 ) — Other
financing activities (11,916 ) (1,847 ) Net cash from financing
activities 121,071 311,388 EFFECT OF EXCHANGE RATE
CHANGES ON CASH AND CASH EQUIVALENTS (401 ) 70 NET CHANGE IN CASH
AND CASH EQUIVALENTS (93,208 ) 63,020 CASH AND CASH EQUIVALENTS —
Beginning of period 173,895 110,488 CASH AND CASH
EQUIVALENTS — End of period $ 80,687 $ 173,508
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150728006625/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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