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. 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 the
potential that we are unable to identify and timely enter into new
markets for our products, such as our publicly-announced market
opportunities in Cloud Data Centers, 100G optical networks, 10G PON, 25G
lasers, L-PICs, GaN technology and Active Antennas, the potential that
we are unable to timely deliver the quantities of our products targeting
these or other applications at the right price point due to design
challenges, manufacturing bottlenecks, supply shortages, yield issues or
otherwise, the potential that the expected rollout of Cloud Data Center
build-outs, 5G network upgrades, fiber-to-the-home network technology or
other new optical or other network technology deployments in the U.S.,
China, Japan 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 the Cloud Data Center
market, the optical network infrastructure market or any or all of our
primary end markets or from any or all of our large OEM customers based
on seasonal effects, regulatory action (such as the recently resolved
ZTE export ban or previously announced Huawei investigation) or
inaction, technology shifts, standards changes, macro-economic weakness
or otherwise, and other events and trends on a national, regional and
global scale, including those of a political, economic, business,
competitive and regulatory nature, the potential for greater than
expected pricing pressure and average selling price erosion based on
attempts to win or maintain market share, competitive factors,
technology shifts or otherwise, the impact of international trade
agreements, including potential increases in trade tariffs, on our
business, our suppliers, or our customers, our potential inability to
ramp key new products into volume production with acceptable
manufacturing yields to satisfy key customer demand in a timely fashion,
the potential for inventory obsolescence and related write-offs, a delay
in consummating or failure to consummate the LR4 subassembly divestment
based on required regulatory approvals or otherwise, 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, greater than expected dilutive effect on earnings of our
equity issuances, outstanding indebtedness and related interest expense
and other costs, our failure to realize the expected economies of scale,
lowered production cost, increased customer penetration and other
anticipated benefits of our previously announced GaN intellectual
property licensing program or supply chain build-out initiatives, 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 Cloud Data
Centers, MACsec, single-Lambda PAM4, MMICs, L-PICs, Active Antennas,
SPAR tiles, GaN, InP lasers or other solutions offered by us, failures
or delays in porting and qualifying GaN or InP process technology to our
fabrication facilities or third party facilities and achieving
anticipated manufacturing economies of scale, lower than expected
utilization and absorption in our manufacturing facilities, lack of
success or slower than expected success in our new product development
or new product introduction efforts, loss of key personnel to
competitors or otherwise, failure of any announced transaction to close
in accordance with its terms, failure to successfully integrate acquired
companies, technologies or products or realize synergies associated with
acquisitions, the potential that we will experience difficulties in
managing the personnel and operations associated with our acquisitions,
loss of business due to competitive factors, product or technology
obsolescence, customer program shifts or otherwise, 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 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, as well as 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 for the fiscal year ended September 29, 2017, as filed on
November 15, 2017, its Quarterly Report on Form 10-Q for the fiscal
quarter ended December 29, 2017, as filed on February 7, 2018 and its
Quarterly Report on Form 10-Q for the fiscal quarter ended March 30,
2018, as filed on May 3, 2018. MACOM undertakes no obligation to
publicly update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.