LOWELL, Mass. — (BUSINESS WIRE) — November 14, 2017 — MACOM Technology Solutions Holdings, Inc. (NASDAQ: MTSI) (“MACOM”), a leading supplier of high-performance RF, microwave, millimeterwave and lightwave semiconductor products, today announced its financial results for its fiscal fourth quarter and fiscal year ended September 29, 2017.
Fiscal Year 2017 GAAP Results
- Revenue was $698.8 million, an increase of 28.4%, compared to $544.3 million in fiscal year 2016;
- Gross profit was $326.9 million, an increase of 16.1%, compared to $281.6 million in fiscal year 2016;
- Fiscal year 2017 gross margin was 46.8%, compared to 51.7% in fiscal year 2016;
- Operating loss was $16.1 million, compared to operating income of $13.2 million in fiscal year 2016; and
- Fully diluted net loss from continuing operations was $2.48 per share, compared to a net loss per fully diluted share from continuing operations of $0.07 per share in fiscal year 2016.
Fiscal Year 2017 Adjusted Non-GAAP Results
- Adjusted gross margin was 58.1%, compared to 58.1% in fiscal year 2016;
- Adjusted operating income was $180.5 million, or 25.8% of revenue, compared to $133.3 million, or 24.5% of revenue, in fiscal year 2016;
- Adjusted net income was $145.5 million, or $2.32 per diluted share, compared to adjusted net income of $105.5 million, or $1.91 per diluted share in fiscal year 2016, growing 37.9%; and
- Adjusted EBITDA was $213.9 million, compared to $159.6 million in fiscal year 2016, growing 34%.
Fourth Quarter Fiscal Year 2017 GAAP Results
- Revenue was $166.4 million, an increase of 9.0%, compared to $152.7 million in the previous year fiscal fourth quarter and a decrease of 14.5% compared to $194.6 million in the prior fiscal quarter;
- Gross profit was $86.9 million, an increase of 6.2% compared to $81.8 million in the previous year fiscal fourth quarter, and a decrease of 6.2% compared to $92.6 million in the prior fiscal quarter;
- Gross margin was 52.2%, compared to 53.6% in the previous year fiscal fourth quarter and 47.6% in the prior fiscal quarter;
- Operating income was $0.3 million, compared to operating income of $10.1 million in the previous year fiscal fourth quarter and an operating income of $6.6 million in the prior fiscal quarter; and
- Net loss from continuing operations was $1,000, or $0.21 loss per diluted share, compared to net income from continuing operations of $3.9 million, or $0.07 income per diluted share, in the previous year fiscal fourth quarter and net loss from continuing operations of $14.0 million, or $0.22 loss per diluted share, in the prior fiscal quarter.
Fourth Quarter Fiscal Year 2017 Adjusted Non-GAAP Results
- Adjusted gross margin was 58.1%, compared to 58.5% in the previous year fiscal fourth quarter and 58.5% in the prior fiscal quarter;
- Adjusted operating income was $38.0 million, or 22.8% of revenue, compared to $38.3 million, or 25.1% of revenue, in the previous year fiscal fourth quarter and $52.9 million, or 27.2% of revenue, in the prior fiscal quarter;
- Adjusted net income was $30.3 million, or $0.46 per diluted share, compared to adjusted net income of $30.1 million, or $0.54 per diluted share, in the previous year fiscal fourth quarter and adjusted net income of $43.9 million, or $0.67 per diluted share, in the prior fiscal quarter; and
- Adjusted EBITDA was $47.3 million, compared to $44.9 million for the previous year fiscal fourth quarter and $61.6 million for the prior fiscal quarter.
Management Commentary
"As expected, fiscal Q4 was a very challenging quarter, as we navigated
through a hard pause in network infrastructure demand in China,
impacting our entire range of Networks businesses," remarked John
Croteau, President and CEO of MACOM. "Networks was down 25%
sequentially, though it still grew 3% year on year. Somewhat offsetting
the decline in Networks, we had a very strong quarter in our A&D and
multi-market businesses, which grew 32% and 16% year-over-year,
respectively.
