MACOM Reports Record Revenue $130.7 million and EPS $0.42 (non-GAAP) for Fiscal Third Quarter
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MACOM Reports Record Revenue $130.7 million and EPS $0.42 (non-GAAP) for Fiscal Third Quarter

LOWELL, Mass. — (BUSINESS WIRE) — July 28, 2015 — M/A-COM Technology Solutions Holdings, Inc. (NASDAQ: MTSI) (“MACOM”), a leading supplier of high-performance analog RF, microwave, millimeterwave and photonic semiconductor products, today announced its financial results for its fiscal third quarter ended July 3, 2015.

Third Quarter Fiscal Year 2015 GAAP Results

Third Quarter Fiscal Year 2015 Non-GAAP Results

Management Commentary

John Croteau, MACOM’s President and Chief Executive Officer, stated, "I am pleased to announce another quarter of solid execution. During the fiscal third quarter Networks grew on the back of strong demand in 100G for long haul and metro and lasers in the access market. In addition, we saw weakness in multi-market, including industrial. That said, end market demand across the full breadth of our catalog portfolio including Networks and A&D more than offset this weakness and actually grew sequentially.

During the quarter, we successfully achieved our goal of doubling laser production capacity at our Ithaca fab. We remain on track to double production capacity using our Lowell fab by the beginning of calendar 2016. These expansion efforts will enable us to address the next secular growth opportunity in datacenters."

Mr. Croteau concluded, "In mid-July we announced a definitive agreement to divest our automotive business to Autoliv ASP Inc. This divestiture supports MACOM's strategy to be a pure-play high performance analog company. We expect it will significantly accelerate our ability to meet our target operating model of 60% non-GAAP gross margin and 30% non-GAAP operating margin. We anticipate our optical and laser businesses will continue to outperform allowing us to meet our growth and profit objectives.”

Business Outlook

For the fiscal fourth quarter ending October 2, 2015, MACOM expects another quarter of growth with revenue expected to be in the range of $133 to $137 million. Non-GAAP gross margin is expected to be between 53 and 55 percent, and non-GAAP earnings per share between $0.43 and $0.46 on an anticipated 55.5 million shares outstanding, based on our increased share count following the public offering of common stock we completed in February.

Conference Call

MACOM will host a conference call on Tuesday, July 28, 2015 at 5:00 p.m. Eastern Time to discuss its fiscal third quarter financial results and business outlook. Investors and analysts may join the conference call by dialing 1-877-837-3908 and providing the confirmation code 69910703. International callers may join the teleconference by dialing +1-973-872-3000 and entering the same confirmation code at the prompt. A telephone replay of the call will be made available beginning two hours after the call and will remain available for 5 business days. The replay number is 1-855-859-2056 with a pass code of 69910703. International callers should dial +1-404-537-3406 and enter the same pass code at the prompt.

Additionally, this conference call will be broadcast live over the Internet and can be accessed by all interested parties in the Investors section of MACOM's website at http://www.macom.com. To listen to the live call, please go to the Investors section of MACOM's website and click on the conference call link at least fifteen minutes prior to the start of the conference call. For those unable to participate during the live broadcast, a replay will be available shortly after the call and will remain available for approximately 30 days.

About MACOM

M/A-COM Technology Solutions Holdings, Inc. ( 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, 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, our statements regarding our expectations of previously-announced divestment of our Automotive business, statements about expected expansion in capacity and any other statements regarding future 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, delays in completing, failure to complete or failure to realize the projected benefits of our anticipated 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, and 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, as well as those factors described in "Risk Factors" in MACOM's filings with the Securities and Exchange Commission (SEC), including its Quarterly Report on Form 10-Q for the fiscal quarter ended April 3, 2015 as filed with the SEC on May 13, 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.

Non-GAAP Financial Measures

In addition to GAAP reporting, MACOM provides investors with non-GAAP financial information, including revenue, gross margin, operating margin, operating income, net income, earnings per share, Adjusted EBITDA and other data calculated on a non-GAAP basis. This non-GAAP information excludes the operations of Nitronex prior to the date of acquisition, discontinued operations, the impact of fair value accounting in merger and acquisitions (M&A) of businesses, M&A costs, including acquisition and related integration costs, certain cost savings from synergies expected from M&A activities, income and expenses from transition services related to M&A activities, expected amortization of acquisition-related intangibles, share-based and other non-cash compensation expense, certain cash compensation, restructuring charges, litigation settlement and costs, changes in the carrying values of assets and liabilities measured at fair value, contingent consideration, amortization of debt discounts and issuance costs, other non-cash expenses, earn-out costs, exited leased facility costs and certain income tax items. Management does not believe that the excluded items are reflective of MACOM's underlying performance. The exclusion of these and other similar items from MACOM's non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or unusual. These and other similar items are also excluded from Adjusted EBITDA, which is non-GAAP earnings before interest, income taxes, depreciation and amortization. MACOM believes this non-GAAP financial information provides additional insight into MACOM's on-going performance and has, therefore, chosen to provide this information to investors for a consistent basis of comparison and to help them evaluate the results of MACOM's on-going 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.

 

M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands, except per share data)

 
  Three Months Ended   Nine Months Ended
July 3,   April 3,   July 4, July 3,   July 4,
2015 2015 2014 2015 2014
 
Revenue $ 130,663 $ 124,885 $ 112,364 $ 370,412 $ 304,345
Cost of revenue 70,879   70,878   62,150   202,420   191,546  
Gross profit 59,784   54,007   50,214   167,992   112,799  
Operating expenses:
Research and development 21,611 21,061 20,810 62,146 53,587
Selling, general and administrative 27,428 29,227 22,065 82,254 65,952
Restructuring charges 558   413   —   971   15,725  
Total operating expenses 49,597   50,701   42,875   145,371   135,264  
Income (loss) from operations 10,187   3,306   7,339   22,621   (22,465 )
Other income (expense):
Warrant liability (expense) gain 546 (5,609 ) (2,782 ) (15,671 ) (5,566 )
Interest expense (4,505 ) (4,723 ) (5,625 ) (13,952 ) (7,833 )
Other income (expense) 3,775   (1,376 ) 1,354   2,774   2,441  
Total other expense (184 ) (11,708 ) (7,053 ) (26,849 ) (10,958 )
 
Income (loss) before income taxes 10,003 (8,402 ) 286 (4,228 ) (33,423 )
Income tax provision (benefit) 1,976   (865 ) (897 ) 1,589   (8,168 )
Income (loss) from continuing operations 8,027 (7,537 ) 1,183 (5,817 ) (25,255 )
Income (loss) from discontinued operations —   —   —   —   (4,605 )
Net income (loss) $ 8,027   $ (7,537 ) $ 1,183   $ (5,817 ) $ (29,860 )
 
Net income (loss) per share:
Basic:
Income (loss) from continuing operations $ 0.15 $ (0.15 ) $ 0.03 $ (0.12 ) $ (0.54 )
Income (loss) from discontinued operations —   —   —   —   (0.10 )
Income (loss) per share - basic $ 0.15   $ (0.15 ) $ 0.03   $ (0.12 ) $ (0.64 )
 
Diluted:
Income (loss) from continuing operations $ 0.15 $ (0.15 ) $ 0.02 $ (0.12 ) $ (0.54 )
Income (loss) from discontinued operations —   —   —   —   (0.10 )
Income (loss) per share - diluted $ 0.15   $ (0.15 ) $ 0.02   $ (0.12 ) $ (0.64 )
 
Shares:
Basic 53,098   50,593   47,280   50,433   46,856  
Diluted 55,175   50,593   48,524   50,433   46,856  
 
 

M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(unaudited and in thousands, except per share data)

 
  Three Months Ended
July 3, 2015   April 3, 2015   July 4, 2014
     
Amount Amount Amount
Revenue - GAAP $ 130,663   $ 124,885   $ 112,364  
 
Amount

%
Revenue

Amount

%
Revenue

Amount

%
Revenue

 
Gross Profit - GAAP $ 59,784 45.8 % $ 54,007 43.2 % $ 50,214 44.7 %
Amortization expense 6,932 5.3 7,347 5.9 6,270 5.6
Non-cash compensation expense 503 0.4 599 0.5 646 0.6
Equity-based compensation 27 — 179 0.1 23 —
Acquisition FMV step-up 2,464 1.9 3,538 2.8 168 0.1
Third-party engineering costs 396 0.3 305 0.2 400 0.4
Integration costs and synergy savings 487   0.4   356   0.3   345   0.3  
Gross Profit - non-GAAP $ 70,593   54.0   % $ 66,331   53.1   % $ 58,066   51.7   %
 
Research and Development - GAAP $ 21,611 16.5 % $ 21,061 16.9 % $ 20,810 18.5 %
Non-cash compensation expense (1,506 ) (1.2 ) (1,620 ) (1.3 ) (893 ) (0.8 )
Equity-based compensation (305 ) (0.2 ) (669 ) (0.5 ) (228 ) (0.2 )
Acquisition FMV step-up (204 ) (0.2 ) (204 ) (0.2 ) (204 ) (0.2 )
Integration costs and synergy savings (74 ) (0.1 ) (137 ) (0.1 ) (1,108 ) (1.0 )
Third-party engineering costs 396   0.3   305   0.2   400   0.4  
Research and Development - non-GAAP $ 19,918   15.2   % $ 18,736   15.0   % $ 18,777   16.7   %
 
Selling, General and Administrative - GAAP $ 27,428 21.0 % $ 29,227 23.4 % $ 22,065 19.6 %
Amortization expense (3,201 ) (2.4 ) (3,096 ) (2.5 ) (505 ) (0.4 )
Non-cash compensation expense (4,763 ) (3.6 ) (7,578 ) (6.1 ) (1,851 ) (1.6 )
Equity-based compensation (246 ) (0.2 ) (501 ) (0.4 ) (147 ) (0.1 )
Acquisition FMV step-up (28 ) — (28 ) — (28 ) —
Litigation costs (559 ) (0.4 ) (971 ) (0.8 ) (1,836 ) (1.6 )
Transaction expenses (125 ) (0.1 ) 530 0.4 — —
Integration costs and synergy savings (136 ) (0.1 ) (282 ) (0.2 ) (2,321 ) (2.1 )
Selling, General and Administrative - non-GAAP $ 18,370   14.1   % $ 17,301   13.9   % $ 15,377   13.7   %
 
Total operating expenses - GAAP $ 49,597 38.0 % $ 50,701 40.6 % $ 42,875 38.2 %
Amortization expense (3,201 ) (2.4 ) (3,096 ) (2.5 ) (505 ) (0.4 )
Non-cash compensation expense (6,269 ) (4.8 ) (9,198 ) (7.4 ) (2,744 ) (2.4 )
Equity-based compensation (551 ) (0.4 ) (1,170 ) (0.9 ) (375 ) (0.3 )
Acquisition FMV step-up (232 ) (0.2 ) (232 ) (0.2 ) (232 ) (0.2 )
Restructuring charges (558 ) (0.4 ) (413 ) (0.3 ) — —
Integration costs and synergy savings (210 ) (0.2 ) (419 ) (0.3 ) (3,429 ) (3.1 )
Litigation costs (559 ) (0.4 ) (971 ) (0.8 ) (1,836 ) (1.6 )
Transaction expenses (125 ) (0.1 ) 530 0.4 — —
Third-party engineering 396   0.3   305   0.2   400   0.4  
Total operating expenses - non-GAAP $ 38,288   29.3   % $ 36,037   28.9   % $ 34,154   30.4   %
 
Income from operations - GAAP $ 10,187 7.8 % $ 3,306 2.6 % $ 7,339 6.5 %
Amortization expense 10,133 7.8 10,446 8.4 6,775 6.0
Non-cash compensation expense 6,772 5.2 9,797 7.8 3,390 3.0
Equity-based compensation 578 0.4 1,349 1.1 398 0.4
Restructuring charges 558 0.4 413 0.3 — —
Acquisition FMV step-up 2,696 2.1 3,770 3.0 400 0.4
Litigation costs 559 0.4 971 0.8 1,836 1.6
Transaction expenses 125 0.1 (530 ) (0.4 ) — —
Integration costs and synergy savings 697   0.5   772   0.6   3,774   3.4  
Income from operations - non-GAAP $ 32,305   24.7   % $ 30,294   24.3   % $ 23,912   21.3   %
 
Net income (loss) - GAAP $ 8,027 6.1 % $ (7,537 ) (6.0 ) % $ 1,183 1.1 %
Amortization expense 8,306 6.4 8,566 6.9 5,183 4.6
Non-cash compensation expense 5,529 4.2 8,309 6.7 2,593 2.3
Equity-based compensation 472 0.4 1,107 0.9 304 0.3
Impairment of minority investment — — 2,230 1.8 — —
Contingent consideration — — (1,640 ) (1.3 ) — —
Restructuring charges 457 0.3 339 0.3 — —
Warrant liability expense (546 ) (0.4 ) 5,609 4.5 2,782 2.5
Non-cash interest expense 333 0.3 330 0.3 1,838 1.6
Acquisition FMV step-up 2,210 1.7 3,092 2.5 306 0.3
Litigation costs (2,822 ) (2.2 ) 797 0.6 1,405 1.3
Integration costs and synergy savings 760 0.6 633 0.5 1,270 1.1
Transaction expenses 404 0.3 (435 ) (0.3 ) — —
Transition services for divested business —   —   (102 ) (0.1 ) (1,036 ) (0.9 )
Net income - non-GAAP $ 23,130   17.7   % $ 21,298   17.1   % $ 15,828   14.1   %
 
Income from operations - non-GAAP $ 32,305 $ 30,294 $ 23,912
Depreciation expense 3,298   3,759   3,296  
Adjusted EBITDA $ 35,603   $ 34,053   $ 27,208  
 
Interest expense- GAAP $ 4,505 $ 4,723 $ 5,625
Non-cash interest expense (405 ) (403 ) (2,402 )
Interest expense- non-GAAP $ 4,100   $ 4,320   $ 3,223  
 
                           
Three Months Ended
July 3, 2015   April 3, 2015   July 4, 2014  
Amount

Income
(loss) per
diluted
share

Amount

Income
(loss) per
diluted
share

Amount

Income
per
diluted
share

 
Net income (loss) - GAAP $ 8,027   $ 0.15   $ (7,537 ) $ (0.15 ) $ 1,183   $ 0.02  
 
Net income - non-GAAP $ 23,130   $ 0.42   $ 21,298   $ 0.41   $ 15,828   $ 0.33  
 
Diluted shares - GAAP 55,175 50,593 48,524
Incremental stock options, warrants, restricted stock and units —   1,908   —  
Diluted shares - non-GAAP 55,175   52,501   48,524  
 
 

M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(unaudited and in thousands, except per share data)

 
  Nine Months Ended
July 3, 2015   July 4, 2014
   
Amount Amount
Revenue - GAAP $ 370,412 $ 304,345
Nitronex prior to acquisition —   (1,048 )
Revenue - non-GAAP $ 370,412   $ 303,297  
 
Amount

%
Revenue

Amount

%
Revenue

 
 
Gross Profit - GAAP $ 167,992 45.4 % $ 112,799 37.1 %
Nitronex prior to acquisition — — 959 0.5
Amortization expense 19,638 5.3 13,779 4.5
Non-cash compensation expense 1,456 0.4 1,355 0.4
Equity-based compensation 264 0.1 53 —
Acquisition FMV step-up 6,837 1.8 18,707 6.2
Integration costs and synergy savings 839 0.2 1,306 0.4
Third-party engineering costs 1,625   0.4   970   0.3  
Gross Profit - non-GAAP $ 198,651   53.6   % $ 149,928   49.4   %
 
Research and Development - GAAP $ 62,146 16.8 % $ 53,587 17.6 %
Nitronex prior to acquisition — — (1,423 ) (0.3 )
Non-cash compensation expense (4,164 ) (1.1 ) (2,105 ) (0.7 )
Equity-based compensation (1,493 ) (0.4 ) (365 ) (0.1 )
Acquisition FMV step-up (612 ) (0.2 ) (459 ) (0.2 )
Integration costs and synergy savings (382 ) (0.1 ) (3,558 ) (1.2 )
Third-party engineering costs 1,625   0.4   970   0.3  
Research and Development - non-GAAP $ 57,120   15.4   % $ 46,647   15.4   %
 
Selling, General and Administrative - GAAP $ 82,254 22.2 % $ 65,952 21.7 %
Nitronex prior to acquisition — — (685 ) (0.2 )
Amortization expense (7,350 ) (2.0 ) (1,347 ) (0.4 )
Non-cash compensation expense (14,746 ) (4.0 ) (5,065 ) (1.7 )
Equity-based compensation (1,064 ) (0.3 ) (361 ) (0.1 )
Acquisition FMV step-up (84 ) — (60 ) —
Integration costs and synergy savings (714 ) (0.2 ) (8,914 ) (2.9 )
Litigation costs (2,247 ) (0.6 ) (3,240 ) (1.1 )
Transaction expenses (4,231 ) (1.1 ) (4,472 ) (1.5 )
Selling, General and Administrative - non-GAAP $ 51,818   14.0   % $ 41,808   13.8   %
 
Total operating expenses - GAAP $ 145,371 39.2 % $ 135,264 44.4 %
Nitronex prior to acquisition — — (2,108 ) (0.4 )
Amortization expense (7,350 ) (2.0 ) (1,347 ) (0.4 )
Non-cash compensation expense (18,910 ) (5.1 ) (7,170 ) (2.4 )
Equity-based compensation (2,557 ) (0.7 ) (726 ) (0.2 )
Acquisition FMV step-up (696 ) (0.2 ) (519 ) (0.2 )
Restructuring charges (971 ) (0.3 ) (15,725 ) (5.2 )
Integration costs and synergy savings (1,096 ) (0.3 ) (12,472 ) (4.1 )
Litigation costs (2,247 ) (0.6 ) (3,240 ) (1.1 )
Transaction expenses (4,231 ) (1.1 ) (4,472 ) (1.5 )
Third-party engineering 1,625   0.4   970   0.3  
Total operating expenses - non-GAAP $ 108,938   29.4   % $ 88,455   29.2   %
 
Income (loss) from operations - GAAP $ 22,621 6.1 % $ (22,465 ) (7.4 ) %
Nitronex prior to Acquisition — — 3,067 1.0
Amortization expense 26,988 7.3 15,126 5.0
Non-cash compensation expense 20,366 5.5 8,525 2.8
Equity-based compensation 2,820 0.8 779 0.3
Restructuring charges 971 0.3 15,725 5.2
Acquisition FMV step-up 7,533 2.0 19,226 6.3
Integration costs and synergy savings 1,935 0.5 13,778 4.5
Litigation costs 2,247 0.6 3,240 1.1
Transaction expenses 4,231   1.1   4,472   1.5  
Income from operations - non-GAAP $ 89,712   24.2   % $ 61,473   20.3   %
 
Net loss - GAAP $ (5,817 ) (1.6 ) % $ (29,860 ) (9.8 ) %
Nitronex prior to acquisition — — 3,067 0.9
Amortization expense 22,130 6.0 11,572 3.8
Non-cash compensation expense 16,951 4.6 6,521 2.2
Equity-based compensation 2,312 0.6 595 0.2
Impairment of minority investment 2,230 0.6 — —
Contingent consideration (1,640 ) (0.4 ) — —
Restructuring charges 796 0.2 12,030 4.0
Warrant liability expense 15,671 4.2 5,566 1.8
Non-cash interest expense 1,023 0.3 2,020 0.7
Acquisition FMV step-up 6,177 1.7 13,841 4.6
Integration costs and synergy savings 1,773 0.5 8,922 2.9
Litigation costs (1,437 ) (0.4 ) 2,479 0.8
Transaction expenses 3,388 0.9 3,537 1.2
Transition services for divested business (409 ) (0.1 ) (1,777 ) (0.6 )
Discontinued operations —   —   4,605   1.5  
Net income - non-GAAP $ 63,148   17.0   % $ 43,118   14.2   %
 
 
Amount

Income
(loss) per
diluted
share

Amount  

Income
(loss) per
diluted
share

Net loss - GAAP $ (5,817 ) $ (0.12 ) $ (29,860 ) $(0.64)
   
Net income - non-GAAP $ 63,148   $1.20 $ 43,118   $0.89
 
Diluted shares - GAAP 50,433 46,856
Incremental stock options, warrants, restricted stock and units 2,126   1,349  
Diluted shares - non-GAAP 52,559   48,205  
 
 

M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)

 
  July 3,   October 3,
2015 2014
ASSETS
Current assets:
Cash and cash equivalents $ 80,687 $ 173,895
Accounts receivable, net 89,714 75,156
Inventories 84,373 73,572
Deferred income taxes and other 54,380   50,726
Total current assets 309,154 373,349
Property and equipment, net 80,167 50,357
Goodwill and intangible assets, net 351,295 153,417
Deferred income taxes and other 66,098   105,111
TOTAL ASSETS $ 806,714   $ 682,234
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of lease $ 554 $ —
Current portion of long-term debt 3,500 3,478
Accounts payable, accrued liabilities and other 61,264 64,910
Deferred revenue 336   17,258
Total current liabilities 65,654 85,646
Lease payable, less current portion 608 —
Long-term debt, less current portion 340,813 343,178
Common stock warrant liability 31,472 15,801
Deferred income taxes and other 7,365   9,042
Total liabilities 445,912 453,667
Commitments and contingencies
Stockholders' equity 360,802   228,567
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 806,714   $ 682,234
 
 

M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in thousands)

 
  Nine Months Ended
July 3,   July 4,
2015 2014
 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (5,817 ) $ (29,860 )
Non-cash adjustments 86,208 47,690
Change in operating assets and liabilities (52,196 ) (8,170 )
Net cash from operating activities 28,195   9,660  
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of businesses, net (208,352 ) (258,108 )
Sale of a business — 8,627
Sale of a product line — 12,000
Strategic investments 1,250 (5,250 )
Purchases of property and equipment (32,488 ) (10,279 )
Acquisition of intellectual property (2,483 ) (5,088 )
Net cash used in investing activities (242,073 ) (258,098 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable — 350,000
Payment of assumed debt — (34,952 )
Capital contributions — 3,200
Proceeds from stock offering, net of issuance costs 127,697 —
Proceeds from revolving facility 100,000 —
Proceeds from stock awards and units 5,329 3,777
Financing and offering costs (39 ) (8,790 )
Payments on revolving facility (100,000 ) —
Other financing activities (11,916 ) (1,847 )
Net cash from financing activities 121,071   311,388  
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (401 ) 70
NET CHANGE IN CASH AND CASH EQUIVALENTS (93,208 ) 63,020
CASH AND CASH EQUIVALENTS — Beginning of period 173,895   110,488  
CASH AND CASH EQUIVALENTS — End of period $ 80,687   $ 173,508  


Contact:

Company Contact:
M/A-COM Technology Solutions Holdings, Inc.
Robert J. McMullan, 978-656-2753
Senior Vice President and Chief Financial Officer
Email Contact
or
Investor Relations Contact:
Shelton Group
Leanne K. Sievers, 949-224-3874
EVP, Investor Relations
Email Contact