February 06, 2025 07:00 AM Eastern Standard Time

LOWELL, Mass.--(BUSINESS WIRE)--MACOM Technology Solutions Holdings, Inc. (“MACOM”) (Nasdaq: MTSI), a leading supplier of semiconductor products, today announced its financial results for its fiscal first quarter ended January 3, 2025.

First Quarter Fiscal Year 2025 GAAP Results

• Revenue was $218.1 million, an increase of 38.8%, compared to $157.1 million in the previous year fiscal first quarter and an increase of 8.7% compared to $200.7 million in the prior fiscal quarter;

• Gross margin was 53.7%, compared to 55.6% in the previous year fiscal first quarter and 54.7% in the prior fiscal quarter;

• Income from operations was $17.5 million, or 8.0% of revenue, compared to income from operations of $11.0 million, or 7.0% of revenue, in the previous year fiscal first quarter and income from operations of $27.5 million, or 13.7% of revenue, in the prior fiscal quarter; and

• Net loss, which includes a one-time, primarily non-cash, charge of $193.1 million loss on extinguishment of debt related to the previously-announced refinancing of a portion of the Company’s 0.25% convertible senior notes due 2026, was $167.5 million, or $2.30 loss per diluted share, compared to net income of $12.5 million, or $0.17 per diluted share, in the previous year fiscal first quarter and net income of $29.4 million, or $0.39 per diluted share, in the prior fiscal quarter.

First Quarter Fiscal Year 2025 Adjusted Non-GAAP Results

• Adjusted gross margin was 57.5%, compared to 59.2% in the previous year fiscal first quarter and 58.1% in the prior fiscal quarter;

• Adjusted income from operations was $55.4 million, or 25.4% of revenue, compared to adjusted income from operations of $38.6 million, or 24.5% of revenue, in the previous year fiscal first quarter and adjusted income from operations of $50.7 million, or 25.2% of revenue, in the prior fiscal quarter; and

• Adjusted net income was $59.5 million, or $0.79 per diluted share, compared to adjusted net income of $41.8 million, or $0.58 per diluted share, in the previous year fiscal first quarter and adjusted net income of $54.2 million, or $0.73 per diluted share, in the prior fiscal quarter.

Management Commentary

“Q1 was a good start to our fiscal 2025,” said Stephen G. Daly, President and Chief Executive Officer, MACOM. “We remain focused on serving our customers and building a stronger, broader and more competitive product portfolio.”

Business Outlook

For the fiscal second quarter ending April 4, 2025, MACOM expects revenue to be in the range of $227 million to $233 million. Adjusted gross margin is expected to be between 57% and 58%, and adjusted earnings per diluted share is expected to be between $0.82 and $0.86 utilizing an anticipated non-GAAP income tax rate of 3% and 76.0 million fully diluted shares outstanding.

Conference Call

MACOM will host a conference call on Thursday, February 6, 2025, at 8:30 a.m. Eastern Time to discuss its fiscal first quarter 2025 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 Industrial and Defense, Data Center and Telecommunications 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 AS9100D aerospace 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 and the associated earnings call contains forward-looking statements. These forward-looking statements include, among others, statements about MACOM’s strategic plans, priorities and long-term growth drivers, our ability to execute our long-term strategy, strengthen our position and drive market share gains and growth, our ability to develop new products, achieve market acceptance of those products and better address certain markets, expand our capabilities and extend our product offerings, including through the acquisitions of ENGIN-IC, Inc., Linearizer Communications Group and the radio frequency (RF) business of Wolfspeed, Inc. and through the establishment and growth of our European Semiconductor Center and potential collaboration and sales opportunities with private and public sector partners resulting therefrom.