MACOM Technology Solutions Holdings, Inc (MTSI) saw its loss widen to $130.13 million, or $2.14 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $10.65 million, or $0.20 a share. On the other hand, adjusted net income for the quarter stood at $39.42 million, or $0.63 a share compared with $25.68 million or $0.46 a share, a year ago. Revenue during the quarter surged 39.31 percent to $186.08 million from $133.58 million in the previous year period. Gross margin for the quarter contracted 1205 basis points over the previous year period to 37.01 percent. Operating margin for the quarter stood at negative 18.06 percent as compared to a negative 5.35 percent for the previous year period.
Operating loss for the quarter was $33.62 million, compared with an operating loss of $7.15 million in the previous year period.
However, the adjusted operating income for the quarter stood at $48.61 million compared to $32.40 million in the prior year period. At the same time, adjusted operating margin improved 187 basis points in the quarter to 26.12 percent from 24.26 percent in the last year period.
John Croteau, MACOM's President and Chief Executive Officer, stated, “We had yet another quarter of solid execution, achieving the top end of guidance for revenue and adjusted earnings per share. Aerospace & Defense and Multi-market were both up sequentially and year on year.
For the third-quarter 2017, MACOM Technology Solutions Holdings, Inc expects revenue to be in the range of $194 million to $198 million. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.67 to $0.71 for the third-quarter.
Operating cash flow drops significantly
MACOM Technology Solutions Holdings, Inc has generated cash of $20.84 million from operating activities during the first half, down 40.63 percent or $14.26 million, when compared with the last year period. The company has spent $231.67 million cash to meet investing activities during the first six months as against cash outgo of $83.91 million in the last year period.
The company has spent $9.25 million cash to carry out financing activities during the first six months as against cash outgo of $15.15 million in the last year period.
Cash and cash equivalents stood at $112.62 million as on Mar. 31, 2017, up 93.54 percent or $54.43 million from $58.19 million on Apr. 01, 2016.
Working capital increases sharply
MACOM Technology Solutions Holdings, Inc has recorded an increase in the working capital over the last year. It stood at $374.08 million as at Mar. 31, 2017, up 66.11 percent or $148.89 million from $225.19 million on Apr. 01, 2016. Current ratio was at 4.53 as on Mar. 31, 2017, up from 3.72 on Apr. 01, 2016.
Days sales outstanding went down to 59 days for the quarter compared with 68 days for the same period last year.
Days inventory outstanding has decreased to 54 days for the quarter compared with 139 days for the previous year period.
Debt increases substantially
MACOM Technology Solutions Holdings, Inc has witnessed an increase in total debt over the last one year. It stood at $593.26 million as on Mar. 31, 2017, up 71.51 percent or $247.36 million from $345.90 million on Apr. 01, 2016. Total debt was 38.13 percent of total assets as on Mar. 31, 2017, compared with 38.42 percent on Apr. 01, 2016. Debt to equity ratio was at 0.74 as on Mar. 31, 2017, down from 0.84 as on Apr. 01, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
