MACOM Technology Solutions Holdings, Inc. (MTSI) has reported 90.62 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $5.10 million, or $0.09 a share in the quarter, compared with $54.40 million, or $0.81 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $30.08 million, or $0.54 a share compared with $18.82 million or $0.34 a share, a year ago.
Revenue during the quarter surged 35.65 percent to $152.70 million from $112.56 million in the previous year period. Gross margin for the quarter expanded 297 basis points over the previous year period to 53.57 percent. Total expenses were 93.41 percent of quarterly revenues, down from 95.84 percent for the same period last year. This has led to an improvement of 243 basis points in operating margin to 6.59 percent.
Operating income for the quarter was $10.06 million, compared with $4.69 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $44.89 million compared with $29.94 million in the prior year period. At the same time, adjusted EBITDA margin improved 280 basis points in the quarter to 29.40 percent from 26.60 percent in the last year period.
John Croteau, MACOM's president and chief executive officer, stated, "I am pleased to announce another quarter of solid execution, with Networks up 5% sequentially driven primarily by Metro/Long-haul. Aerospace and Defense saw a strong quarter and was up 18% sequentially, while Multi-market saw strong growth of 10% sequentially. Our R&D investments are showing results, specifically with our high performance MMIC-based products, which are expected to continue to drive growth in A&D and Multi-market moving into 2017.
For the first-quarter, MACOM Technology Solutions Holdings forecasts revenue to be in the range of $150 million to $154 million. The company expects diluted earnings per share to be in the range of $0.54 to $0.58.
Operating cash flow improves significantlyMACOM Technology Solutions Holdings has generated cash of $79.23 million from operating activities during the year, up 135.26 percent or $45.55 million, when compared with the last year. The company has spent $94.86 million cash to meet investing activities during the year as against cash outgo of $207.42 million in the last year.
Cash flow from financing activities was $227.35 million for the year, up 85.74 percent or $104.95 million, when compared with the last year.
Cash and cash equivalents stood at $332.98 million as on Sep. 30, 2016, up 172.24 percent or $210.66 million from $122.31 million on Oct. 02, 2015.
Working capital increases sharply
MACOM Technology Solutions Holdings has recorded an increase in the working capital over the last year. It stood at $520.79 million as at Sep. 30, 2016, up 66.52 percent or $208.05 million from $312.74 million on Oct. 02, 2015. Current ratio was at 6.65 as on Sep. 30, 2016, up from 5.38 on Oct. 02, 2015.
Debt increases substantiallyMACOM Technology Solutions Holdings has witnessed an increase in total debt over the last one year. It stood at $583.55 million as on Sep. 30, 2016, up 72.06 percent or $244.40 million from $339.14 million on Oct. 02, 2015. Total debt was 49.10 percent of total assets as on Sep. 30, 2016, compared with 39.15 percent on Oct. 02, 2015. Debt to equity ratio was at 1.26 as on Sep. 30, 2016, up from 0.80 as on Oct. 02, 2015. Interest coverage ratio improved to 1.90 for the quarter from 1.06 for the same period last year. 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]
