Guidance for Fiscal Fourth Quarter
2015
M/A-COM Technology Solutions Holdings, Inc. (NASDAQ: MTSI)
(MACOM), a leading supplier of high-performance RF, microwave,
millimeterwave and photonic semiconductor products, today announced
it has completed the previously announced divestiture of its
Automotive business to Autoliv ASP Inc. (Autoliv) for approximately
$100 million in cash, plus the opportunity to receive up to an
additional $30 million in cash based on the achievement of
revenue-and customer order based earn-out targets through 2019.
In conjunction with closing the divestiture, MACOM announced
financial guidance for its fiscal fourth quarter ending October 2,
2015, excluding the Automotive business which is now classified as
discontinued operations. MACOM expects revenue to be in the range
of $110 to $114 million, or an increase of 1.0 percent to 4.5
percent, compared to the fiscal third quarter 2015 without
Automotive. Non-GAAP gross margin is expected to be between 56
percent and 59 percent, and non-GAAP earnings per diluted share
between $0.32 and $0.34 on an anticipated 55.5 million shares
outstanding.
Commenting on the closing, John Croteau, President and
Chief Executive Officer stated, “We are pleased to complete
the divestiture of our Automotive business, which we
believe represents a key step towards realizing our full potential
as a pure play high-performance analog semiconductor
company. Since announcing the transaction, we have
become increasingly confident in the accelerated growth
of our business, which we now
expect to replace the pre-divestiture earnings
contribution from the Auto business within a
few quarters. With our remaining business well
aligned with our high-growth, high margin model, we expect to
achieve our target of 60 percent non-GAAP gross margin in
the first half of fiscal 2016 and 30 percent
non-GAAP operating margin as we exit fiscal 2016. This
exceptional financial profile will position MACOM in the highest
performing segment of our industry and serve as a key
differentiator with both customers
and investors alike.”
MACOM expects by the end of this week to file a Current Report
on Form 8-K with the Securities and Exchange Commission (SEC),
including pro forma financial statements for its last three fiscal
years and the nine months ended July 3, 2015, adjusted to reflect
the Automotive business divestiture, and also to post to the
investor page of MACOM’s website (http://www.macom.com/) certain
comparative non-GAAP information along with a reconciliation to
GAAP.
About MACOM
MACOM (http://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, Partners from RF to Light, 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, the impact of our
divestment of our Automotive business, future activities or 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, indemnity claims related to or failure to
realize the projected benefits of our 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, 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, and any failure in the effectiveness of our internal
control over financial reporting or disclosure controls and
procedures, as well as those factors described in "Risk Factors" in
MACOM's filings with the SEC, including its Quarterly Report on
Form 10-Q for the fiscal quarter ended July 3, 2015 as filed with
the SEC on August 12, 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150817005854/en/
Company Contact:M/A-COM Technology Solutions Holdings,
Inc.Bob McMullan, 978-656-2753Chief Financial
Officerbob.mcmullan@macom.comorInvestor Relations
Contact:Shelton GroupLeanne K. Sievers, 949-224-3874EVPorBrett
L. Perry, 214-272-0070Managing
Directorsheltonir@sheltongroup.com
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