Australia markets closed
  • ALL ORDS

    7,771.80
    +43.30 (+0.56%)
     
  • ASX 200

    7,558.10
    +46.50 (+0.62%)
     
  • AUD/USD

    0.6924
    -0.0157 (-2.22%)
     
  • OIL

    73.23
    -2.65 (-3.49%)
     
  • GOLD

    1,865.90
    -50.40 (-2.63%)
     
  • BTC-AUD

    33,856.34
    -308.29 (-0.90%)
     
  • CMC Crypto 200

    535.42
    -1.43 (-0.27%)
     
  • AUD/EUR

    0.6411
    -0.0074 (-1.14%)
     
  • AUD/NZD

    1.0935
    +0.0005 (+0.05%)
     
  • NZX 50

    12,197.15
    +44.99 (+0.37%)
     
  • NASDAQ

    12,573.36
    -229.78 (-1.79%)
     
  • FTSE

    7,901.80
    +81.64 (+1.04%)
     
  • Dow Jones

    33,926.01
    -127.93 (-0.38%)
     
  • DAX

    15,476.43
    -32.76 (-0.21%)
     
  • Hang Seng

    21,660.47
    -297.89 (-1.36%)
     
  • NIKKEI 225

    27,509.46
    +107.41 (+0.39%)
     

MACOM Reports Fiscal Fourth Quarter and Fiscal Year 2022 Financial Results

LOWELL, Mass., November 03, 2022--(BUSINESS WIRE)--MACOM Technology Solutions Holdings, Inc. ("MACOM") (Nasdaq: MTSI), a leading supplier of semiconductor products, today announced its financial results for its fiscal fourth quarter and fiscal year ended September 30, 2022.

Fourth Quarter Fiscal Year 2022 GAAP Results

  • Revenue was $178.1 million, an increase of 14.8% compared to $155.2 million in the previous year fiscal fourth quarter and an increase of 3.4% compared to $172.3 million in the prior fiscal quarter;

  • Gross margin was 60.9%, compared to 58.1% in the previous year fiscal fourth quarter and 60.7% in the prior fiscal quarter;

  • Operating income was $37.0 million, compared to operating income of $26.3 million in the previous year fiscal fourth quarter and operating income of $36.0 million in the prior fiscal quarter; and

  • Net income, which includes a $202.8 million non-cash income tax benefit associated with the release of the valuation allowance on the majority of our deferred tax assets, was $239.3 million, or $3.36 per diluted share, compared to net income of $17.1 million, or $0.24 per diluted share, in the previous year fiscal fourth quarter and net income of $32.2 million, or $0.45 per diluted share, in the prior fiscal quarter.

Fourth Quarter Fiscal Year 2022 Adjusted Non-GAAP Results

  • Adjusted gross margin was 62.6%, compared to 61.1% in the previous year fiscal fourth quarter and 62.2% in the prior fiscal quarter;

  • Adjusted operating income was $56.9 million, or 32.0% of revenue, compared to adjusted operating income of $46.8 million, or 30.2% of revenue, in the previous year fiscal fourth quarter and adjusted operating income of $54.1 million, or 31.4% of revenue, in the prior fiscal quarter; and

  • Adjusted net income was $55.1 million, or $0.77 per diluted share, compared to adjusted net income of $43.3 million, or $0.61 per diluted share, in the previous year fiscal fourth quarter and adjusted net income of $52.1 million, or $0.73 per diluted share, in the prior fiscal quarter.

Fiscal Year 2022 GAAP Results

  • Revenue was $675.2 million, an increase of 11.2%, compared to $606.9 million in fiscal year 2021;

  • Gross margin was 60.2%, compared to 56.3% in fiscal year 2021;

  • Operating income was $132.7 million, compared to $81.0 million in fiscal year 2021; and

  • Net income was $440.0 million, or $6.18 per diluted share, compared to net income of $38.0 million, or $0.54 per diluted share, in fiscal year 2021. Net income for fiscal year 2022 includes a $118.2 million gain associated with the sale of an equity interest and a non-cash income tax benefit of $202.8 million associated with the release of the valuation allowance on the majority of our deferred tax assets.

Fiscal Year 2022 Adjusted Non-GAAP Results

  • Adjusted gross margin was 62.0%, compared to 59.6% in fiscal year 2021;

  • Adjusted operating income was $211.0 million, or 31.2% of revenue, compared to $170.3 million, or 28.1% of revenue, in fiscal year 2021; and

  • Adjusted net income was $201.0 million, or $2.82 per diluted share, compared to adjusted net income of $151.9 million, or $2.15 per diluted share, in fiscal year 2021.

Management Commentary

"We are pleased with our Q4 and fiscal 2022 results," said Stephen G. Daly, President and Chief Executive Officer. "More importantly, we have many new and compelling products to support market share gains in fiscal 2023."

Business Outlook

For the fiscal first quarter ending December 30, 2022, MACOM expects revenue to be in the range of $177 million to $182 million. Adjusted gross margin is expected to be between 61.5% and 63.5%, and adjusted earnings per share is expected to be between $0.78 and $0.82 utilizing an anticipated non-GAAP income tax rate of 3% and 71.4 million fully diluted shares outstanding.

Conference Call

MACOM will host a conference call on Thursday, November 3, 2022 at 8:30 a.m. Eastern Time to discuss its fiscal fourth quarter and fiscal year 2022 financial results and business outlook. Investors and analysts may visit MACOM's Investor Relations website at https://ir.macom.com/events-webcasts to register for a user-specific access code for the live call or to access the live webcast. A replay of the call will be available within 24 hours and remain accessible by all interested parties for approximately 90 days.

About MACOM

MACOM designs and manufactures high-performance semiconductor products for the Telecommunications, Industrial and Defense and Datacenter industries. MACOM services over 6,000 customers annually with a broad product portfolio that incorporates RF, Microwave, Analog and Mixed Signal and Optical semiconductor technologies. MACOM has achieved certification to the IATF16949 automotive standard, the ISO9001 international quality standard and the ISO14001 environmental management standard. MACOM operates facilities across the United States, Europe, Asia and is headquartered in Lowell, Massachusetts.

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. These forward-looking statements include, among others, statements about MACOM’s strategic plans and priorities, our ability to continue to improve our earnings and to ensure business continuity and to be successful and drive market share gains in our technology, product development and engineering efforts, acceleration, strength and competitiveness of new product introductions and technology portfolio expansion, MACOM’s profitability, prospects and growth opportunities in our three primary markets, our strategy with respect to adjacent markets, development and process qualification timelines, the potential impact to our business of and our ability to remain cash flow positive in an economic downturn or recession, continued revenue growth and financial and business improvements and the estimated financial results for our 2023 fiscal first quarter and the stated business outlook and future results of operations.

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 indicated by the forward-looking statements, including any failure to accurately anticipate demand for our products and effectively manage our inventory; risks related to any weakening of economic conditions; our dependence on a limited number of customers; our ability to develop new products and achieve market acceptance of those products; component shortages or other disruptions in our supply chain, including as a result of the COVID-19 pandemic, geopolitical unrest or otherwise; inflationary pressures; our ability to compete effectively; and those other factors described in "Risk Factors" in MACOM’s filings with the Securities and Exchange Commission ("SEC"), including its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other filings with the SEC. These forward-looking statements speak only as of the date of this press release, and MACOM undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Discussion Regarding the Use of Historical and Forward-Looking Non-GAAP Financial Measures

In addition to United States Generally Accepted Accounting Principles ("GAAP") reporting, MACOM provides investors with financial measures that have not been calculated in accordance with GAAP, such as: non-GAAP gross profit and gross margin, non-GAAP operating expenses, non-GAAP income from operations and operating margin, adjusted EBITDA, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP diluted shares, non-GAAP income tax rate, non-GAAP interest expense and non-GAAP free cash flow. In this release or elsewhere, we may alternatively refer to such non-GAAP measures as "adjusted" measures. This non-GAAP information excludes the effect, where applicable, of intangible amortization expense, share-based compensation expense, warrant liability expense, non-cash interest, loss on debt extinguishment, equity method investment gains and losses and the tax effect of each non-GAAP adjustment.

Management believes these excluded items are not reflective of our underlying performance and uses these non-GAAP financial measures to: evaluate our ongoing operating performance and compare it against prior periods, make operating decisions, forecast future periods, evaluate potential acquisitions, compare our operating performance against peer companies and assess certain compensation programs. The exclusion of these items from our non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent or unusual. We believe this non-GAAP financial information provides additional insight into our ongoing performance and have therefore chosen to provide this information to investors to help them evaluate the results of our ongoing 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. We have not provided a reconciliation with respect to any forward-looking non-GAAP financial data presented because we do not have and cannot reliably estimate certain key inputs required to calculate the most comparable GAAP financial data, such as future acquisition costs, the possibility and impact of any litigation costs, changes in our GAAP effective tax rate and impairment charges. We believe these unknown inputs are likely to have a significant impact on any estimate of the comparable GAAP financial data.

Investors are cautioned against placing undue reliance on non-GAAP financial measures and are urged to review and consider carefully the adjustments made by management to the most directly comparable GAAP financial measures. Non-GAAP financial measures may have limited value as analytical tools because they may exclude certain expenses that some investors consider important in evaluating our operating performance or ongoing business performance. Further, non-GAAP financial measures may have limited value for purposes of drawing comparisons between companies because different companies may calculate similarly titled non-GAAP financial measures in different ways because non-GAAP measures are not based on any comprehensive set of accounting rules or principles.

Additional information and managements assessment regarding why certain items are excluded from our non-GAAP measures are summarized below:

Amortization Expense – is related to acquired intangible assets which are based upon valuation methodologies, and are generally amortized over the expected life of the intangible asset at the time of acquisition, which may result in amortization amounts that vary over time. This non-cash expense is not considered by management in making operating decisions.

Share-Based Compensation Expense – includes share-based compensation expense for awards that are equity and liability classified on our balance sheet and the related employer tax expense at vesting. Share-based compensation expense is partially outside of our control due to factors such as stock price volatility and interest rates, which may be unrelated to our operating performance during the period in which the expense is incurred. It is an expense based upon valuation methodologies and assumptions that vary over time, and the amount of the expense can vary significantly between companies. Share-based compensation expense amounts are not considered by management in making operating decisions.

Warrant Liability Expense – is associated with mark-to-market fair value adjustments, which are largely based on the value of our common stock, which may vary from period to period due to factors such as stock price volatility. We believe these amounts are not correlated to future business operations and do not reflect our ongoing operations.

Non-cash Interest, Net – includes amounts associated with the amortization of the discount on our convertible notes and the amortization of certain fees associated with the establishment or amendment of our term loans and convertible notes that are being amortized over the life of the agreements. We believe these amounts are non-cash in nature, are not correlated to future business operations and do not reflect our ongoing operations.

Equity Method Investment Gains and Losses – primarily includes non-cash gains and losses associated with a non-marketable equity investment we had in Ampere Computing Holdings LLC and the $118.2 million cash gain on the sale of this investment in December 2021. We believe these items are not correlated to future business operations and including such amounts does not reflect our ongoing operations.

Loss on Debt Extinguishment – includes the write-off of unamortized deferred financing costs associated with the paydown of our term loans. We believe these non-cash amounts are not correlated to future business operations and do not reflect on our ongoing operations.

Tax Effect of Non-GAAP Adjustments – the fiscal fourth quarter and fiscal year 2022 include a non-cash benefit of $202.8 million associated with the release of the valuation allowance on the majority of our domestic deferred tax assets resulting from our assessment of positive and negative evidence as of September 30, 2022. We believe this non-cash amount is not correlated to future operations and does not reflect our ongoing operations. Includes adjustments to arrive at an estimate of our non-GAAP income tax rate associated with our non-GAAP income over a period of time. We determine our non-GAAP income tax rate using applicable rates in taxing jurisdictions and assessing certain factors including our historical and forecast earnings by jurisdiction, discrete items, cash taxes paid in relation to our non-GAAP net income before income taxes and our ability to realize tax assets. We generally assess this non-GAAP income tax rate quarterly and have utilized 3% for our second, third and fourth quarters of fiscal year 2022 and 5% for our first quarter of fiscal year 2022 and fiscal year 2021. Our historical effective income tax rate under GAAP has varied significantly from our non-GAAP income tax rate due primarily to changes in fair values of the common stock warrant liability, which are excluded from our adjusted net income and are neither deductible nor taxable for tax purposes, gains or losses associated with our equity method investment in a private business, income taxed in foreign jurisdictions at generally lower tax rates, research and development tax credits and merger expenses. We believe it is beneficial for management to review our non-GAAP income tax rate on a consistent basis over periods of time. Items such as those noted above may have a significant impact on our GAAP income tax expense and associated effective tax rate over time.

Adjusted EBITDA – is a calculation that adds depreciation expense to our adjusted income from operations. Management reviews and utilizes this measure for operational analysis purposes. We believe competitors and others in the financial industry also utilize this measure for analysis purposes.

Free Cash Flow – is a calculation that starts with cash flow from operating activities and reduces this amount by our capital expenditures in the applicable period. Management reviews and utilizes this measure for cash flow analysis purposes. We believe competitors and others in the financial industry also utilize this measure for analyzing a company’s cash flow.

Incremental Shares – is the number of potential shares of common stock issuable upon the exercise of stock options, restricted stock, restricted stock units and warrants that were not included in the calculation of our GAAP diluted shares, as the impact would have been anti-dilutive. We believe competitors and others in the financial industry utilize this measure for analysis purposes.

MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands, except per share data)

Three Months Ended

Twelve Months Ended

September 30,

July 1,

October 1,

September 30,

October 1,

2022

2022

2021

2022

2021

Revenue

$

178,143

$

172,259

$

155,211

$

675,170

$

606,920

Cost of revenue

69,636

67,717

65,000

268,989

265,065

Gross profit

108,507

104,542

90,211

406,181

341,855

Operating expenses:

Research and development

39,678

37,625

33,679

148,228

138,844

Selling, general and administrative

31,798

30,914

30,250

125,279

122,009

Total operating expenses

71,476

68,539

63,929

273,507

260,853

Income from operations

37,031

36,003

26,282

132,674

81,002

Other (expense) income:

Warrant liability expense

(11,130

)

Interest expense, net

(372

)

(845

)

(5,482

)

(4,300

)

(20,593

)

Other (expense) income, net

(120

)

13

(2,048

)

114,746

(6,334

)

Total other (expense) income

(492

)

(832

)

(7,530

)

110,446

(38,057

)

Income before income taxes

36,539

35,171

18,752

243,120

42,945

Income tax (benefit) expense

(202,797

)

2,937

1,623

(196,835

)

4,972

Net income

$

239,336

$

32,234

$

17,129

$

439,955

$

37,973

Net income per share:

Income per share - Basic

$

3.42

$

0.46

$

0.25

$

6.30

$

0.55

Income per share - Diluted

$

3.36

$

0.45

$

0.24

$

6.18

$

0.54

Weighted average common shares:

Shares - Basic

69,998

69,946

68,804

69,783

68,449

Shares - Diluted

71,274

71,060

71,050

71,166

70,474

MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)

September 30,

October 1,

2022

2021

ASSETS

Current assets:

Cash and cash equivalents

$

119,952

$

156,537

Short-term investments

466,580

188,365

Accounts receivable, net

101,551

84,570

Inventories

114,960

82,699

Prepaid and other current assets

10,040

9,365

Total current assets

813,083

521,536

Property and equipment, net

123,701

120,526

Goodwill and intangible assets, net

362,671

398,925

Deferred income taxes

237,415

39,516

Other long-term assets

34,947

53,642

Total assets

$

1,571,817

$

1,134,145

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Current portion of finance lease obligations

$

1,006

$

958

Accounts payable

30,733

28,712

Accrued liabilities

65,475

63,374

Total current liabilities

97,214

93,044

Finance lease obligations, less current portion

27,032

28,037

Financing obligation

9,544

8,720

Long-term debt obligations

565,920

492,097

Other long-term liabilities

29,359

40,511

Total liabilities

729,069

662,409

Stockholders’ equity

842,748

471,736

Total liabilities and stockholders’ equity

$

1,571,817

$

1,134,145

MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in thousands)

Twelve Months Ended

September 30,

October 1,

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

439,955

$

37,973

Depreciation and intangible asset amortization

57,229

69,953

Share-based compensation

41,185

34,998

Gain on equity method investment, net

(114,908

)

2,403

Warrant liability expense

11,130

Deferred income taxes

(200,431

)

2,520

Other adjustments, net

644

15,361

Accounts receivable

(16,981

)

(38,686

)

Inventories

(32,261

)

8,886

Change in other operating assets and liabilities

2,550

3,874

Net cash provided by operating activities

176,982

148,412

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sale of equity method investment

127,750

Purchases of property and equipment

(26,513

)

(17,954

)

Sales, purchases and maturities of investments

(284,121

)

15,087

Proceeds from sale of assets

23

284

Net cash used in investing activities

(182,861

)

(2,583

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from convertible notes, net of issuance costs

444,249

Payments of long-term debt

(545,321

)

Payments on finance leases

(957

)

(1,368

)

Proceeds from stock option exercises and employee stock purchases

8,052

6,781

Repurchase of common stock - tax withholdings on equity awards

(36,003

)

(23,436

)

Net cash used in financing activities

(28,908

)

(119,095

)

Foreign currency effect on cash

(1,798

)

362

NET CHANGE IN CASH AND CASH EQUIVALENTS

(36,585

)

27,096

CASH AND CASH EQUIVALENTS — Beginning of period

156,537

129,441

CASH AND CASH EQUIVALENTS — End of period

$

119,952

$

156,537

MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS

(unaudited and in thousands, except per share data)

Three Months Ended

Twelve Months Ended

September 30, 2022

July 1, 2022

October 1, 2021

September 30, 2022

October 1, 2021

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Gross profit - GAAP

$

108,507

60.9

$

104,542

60.7

$

90,211

58.1

$

406,181

60.2

$

341,855

56.3

Amortization expense

1,778

1.0

1,778

1.0

3,806

2.5

7,839

1.2

15,296

2.5

Share-based compensation expense

1,166

0.7

887

0.5

878

0.6

4,597

0.7

4,314

0.7

Adjusted gross profit (Non-GAAP)

$

111,451

62.6

$

107,207

62.2

$

94,895

61.1

$

418,617

62.0

$

361,465

59.6

Three Months Ended

Twelve Months Ended

September 30, 2022

July 1, 2022

October 1, 2021

September 30, 2022

October 1, 2021

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Operating expenses - GAAP

$

71,476

40.1

$

68,539

39.8

$

63,929

41.2

$

273,507

40.5

$

260,853

43.0

Amortization expense

(6,258

)

(3.5

)

(6,276

)

(3.6

)

(7,601

)

(4.9

)

(25,592

)

(3.8

)

(30,918

)

(5.1

)

Share-based compensation expense

(10,692

)

(6.0

)

(9,167

)

(5.3

)

(8,272

)

(5.3

)

(40,276

)

(6.0

)

(38,772

)

(6.4

)

Adjusted operating expenses (Non-GAAP)

$

54,526

30.6

$

53,096

30.8

$

48,056

31.0

$

207,639

30.8

$

191,163

31.5

Three Months Ended

Twelve Months Ended

September 30, 2022

July 1, 2022

October 1, 2021

September 30, 2022

October 1, 2021

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Income from operations - GAAP

$

37,031

20.8

$

36,003

20.9

$

26,282

16.9

$

132,674

19.7

$

81,002

13.3

Amortization expense

8,036

4.5

8,054

4.7

11,407

7.3

33,431

5.0

46,214

7.6

Share-based compensation expense

11,859

6.7

10,054

5.8

9,150

5.9

44,873

6.6

43,086

7.1

Adjusted income from operations (Non-GAAP)

$

56,926

32.0

$

54,111

31.4

$

46,839

30.2

$

210,978

31.2

$

170,302

28.1

Depreciation expense

6,141

3.4

5,918

3.4

5,692

3.7

23,798

3.5

23,739

3.9

Adjusted EBITDA (Non-GAAP)

$

63,067

35.4

$

60,029

34.8

$

52,531

33.8

$

234,776

34.8

$

194,041

32.0

Three Months Ended

Twelve Months Ended

September 30, 2022

July 1, 2022

October 1, 2021

September 30, 2022

October 1, 2021

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Net income - GAAP

$

239,336

134.4

$

32,234

18.7

$

17,129

11.0

$

439,955

65.2

$

37,973

6.3

Amortization expense

8,036

4.5

8,054

4.7

11,407

7.3

33,431

5.0

46,214

7.6

Share-based compensation expense

11,859

6.7

10,054

5.8

9,150

5.9

44,873

6.6

43,086

7.1

Warrant liability expense

11,130

1.8

Non-cash interest, net

412

0.2

412

0.2

4,123

2.7

1,692

0.3

9,590

1.6

Equity method investment loss (gain), net

2,116

1.4

(114,908

)

(17.0

)

2,403

0.4

Loss on debt extinguishment

4,488

0.7

Tax effect of non-GAAP adjustments

(204,503

)

(114.8

)

1,326

0.8

(655

)

(0.4

)

(204,037

)

(30.2

)

(3,021

)

(0.5

)

Adjusted net income (Non-GAAP)

$

55,140

31.0

$

52,080

30.2

$

43,270

27.9

$

201,006

29.8

$

151,863

25.0

Three Months Ended

Twelve Months Ended

September 30, 2022

July 1, 2022

October 1, 2021

September 30, 2022

October 1, 2021

Net income

Income per

diluted share

Net income

Income per

diluted share

Net income

Income per

diluted share

Net income

Income per

diluted share

Net income

Income per

diluted share

Net income - GAAP diluted

$

239,336

$

3.36

$

32,234

$

0.45

$

17,129

$

0.24

$

439,955

$

6.18

$

37,973

$

0.54

Adjusted net income (Non-GAAP)

$

55,140

$

0.77

$

52,080

$

0.73

$

43,270

$

0.61

$

201,006

$

2.82

$

151,863

$

2.15

Three Months Ended

Twelve Months Ended

September 30, 2022

July 1, 2022

October 1, 2021

September 30, 2022

October 1, 2021

Shares

Shares

Shares

Shares

Shares

Diluted shares - GAAP

71,274

71,060

71,050

71,166

70,474

Incremental shares

87

Adjusted diluted shares (Non-GAAP)

71,274

71,060

71,050

71,166

70,561

Three Months Ended

Twelve Months Ended

September 30, 2022

July 1, 2022

October 1, 2021

September 30, 2022

October 1, 2021

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Interest expense, net - GAAP

$

372

0.2

$

845

0.5

$

5,482

3.5

$

4,300

0.6

$

20,593

3.4

Non-cash interest expense

(412

)

(0.2

)

(412

)

(0.2

)

(4,123

)

(2.7

)

(1,692

)

(0.3

)

(9,590

)

(1.6

)

Adjusted interest (income) expense (Non-GAAP)

$

(40

)

$

433

0.3

$

1,359

0.9

$

2,608

0.4

$

11,003

1.8

Three Months Ended

Twelve Months Ended

September 30, 2022

July 1, 2022

October 1, 2021

September 30, 2022

October 1, 2021

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Amount

% Revenue

Cash flow from operations

$

59,993

33.7

$

40,392

23.4

$

40,812

26.3

$

176,982

26.2

$

148,412

24.5

Capital expenditures

(7,695

)

(4.3

)

(6,634

)

(3.9

)

(5,029

)

(3.2

)

(26,513

)

(3.9

)

(17,954

)

(3.0

)

Free cash flow (Non-GAAP)

$

52,298

29.4

$

33,758

19.6

$

35,783

23.1

$

150,469

22.3

$

130,458

21.5

Free cash flow as a percentage of Adjusted net income (Non-GAAP)

94.8

%

64.8

%

82.7

%

74.9

%

85.9

%

RECONCILIATION OF DEBT ACTIVITY

(unaudited and in thousands)

Long-term debt obligations

Balance as of October 1, 2021

$

492,097

Reclassification of convertible notes from stockholders' equity

72,177

Other activity

1,646

Balance as of September 30, 2022

$

565,920

View source version on businesswire.com: https://www.businesswire.com/news/home/20221103005334/en/

Contacts

Company:
MACOM Technology Solutions Holdings, Inc.
Stephen Ferranti
Vice President, Strategic Initiatives and Investor Relations
P: 978-656-2977
E: stephen.ferranti@macom.com