MACOM Technology Solutions (MTSI) Tops Q1 EPS by 4c, Revenues Beat; Offers Q2 EPS/Revenue Guidance Above Consensus

MACOM Technology Solutions (NASDAQ: MTSI) reported Q1 EPS of $0.07, $0.04 better than the analyst estimate of $0.03. Revenue for the quarter came in at $119.1 million versus the consensus estimate of $114.51 million.

First Quarter Fiscal Year 2020 GAAP Results

• Revenue was $119.1 million, a decrease of 21.0% compared to $150.7 million in the previous year fiscal first quarter and an increase of 6.1% compared to $112.2 million in the prior fiscal quarter;
• Gross margin was 48.9%, compared to 50.8% in the previous year fiscal first quarter and 47.2% in the prior fiscal quarter;
• Operating loss was $10.5 million, compared to a loss of $14.4 million in the previous year fiscal first quarter and a loss of $12.0 million in the prior fiscal quarter; and
• Net loss was $28.4 million, or $0.43 loss per diluted share, compared to net loss of $23.4 million, or $0.44 loss per diluted share, in the previous year fiscal first quarter and net income of $10.5 million, or $0.16 per diluted share, in the prior fiscal quarter.

First Quarter Fiscal Year 2020 Adjusted Non-GAAP Results

• Adjusted gross margin was 53.5%, compared to 56.3% in the previous year fiscal first quarter and 53.0% in the prior fiscal quarter;
• Adjusted operating income was $13.0 million, or 10.9% of revenue, compared to adjusted operating income of $21.9 million, or 14.5% of revenue, in the previous year fiscal first quarter and adjusted operating income of $8.5 million, or 7.6% of revenue, in the prior fiscal quarter; and
• Adjusted net income was $4.9 million, or $0.07 per diluted share, compared to adjusted net income of $12.9 million, or $0.20 per diluted share, in the previous year fiscal first quarter and adjusted net income of $0.8 million, or $0.01 per diluted share, in the prior fiscal quarter.

Management Commentary

“Q1 was a solid start to our fiscal year,” said Stephen G. Daly, President and Chief Executive Officer. “Our new organization and engineering leadership is having a positive impact on product development.”

GUIDANCE:

MACOM Technology Solutions sees Q2 2020 EPS of $0.09-$0.13, versus the consensus of $0.05. MACOM Technology Solutions sees Q2 2020 revenue of $122-126 million, versus the consensus of $116.65 million.

For earnings history and earnings-related data on MACOM Technology Solutions (MTSI) click here.

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