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Dec 30, 2022

Macom Q1 2023 Earnings Report

MACOM's Q1 2023 financial results were announced, with revenue increasing by 12.8% compared to the previous year and operating income increasing to $38.6 million.

Key Takeaways

MACOM reported a revenue of $180.1 million for Q1 2023, a 12.8% increase year-over-year. The company's operating income was $38.6 million, and net income was $29.5 million, or $0.41 per diluted share.

Revenue increased by 12.8% compared to the previous year fiscal first quarter.

Gross margin was 61.3%, compared to 59.0% in the previous year fiscal first quarter.

Operating income was $38.6 million, or 21.4% of revenue, compared to $27.1 million in the previous year fiscal first quarter.

Net income was $29.5 million, or $0.41 per diluted share, compared to $138.8 million in the previous year fiscal first quarter.

Total Revenue
$180M
Previous year: $160M
+12.8%
EPS
$0.81
Previous year: $0.64
+26.6%
Gross Profit
$110M
Previous year: $94.1M
+17.2%
Cash and Equivalents
$126M
Previous year: $273M
-53.9%
Free Cash Flow
$28.7M
Previous year: $29M
-1.2%
Total Assets
$1.59B
Previous year: $1.26B
+26.0%

Macom

Macom

Forward Guidance

For the fiscal second quarter ending March 31, 2023, MACOM expects revenue to be in the range of $166 million to $170 million. Adjusted gross margin is expected to be between 61.5% and 63.5%, and adjusted earnings per share is expected to be between $0.76 and $0.80.

Positive Outlook

  • Revenue to be in the range of $166 million to $170 million.
  • Adjusted gross margin is expected to be between 61.5% and 63.5%.
  • Adjusted earnings per share is expected to be between $0.76 and $0.80.
  • Anticipated non-GAAP income tax rate of 3%.
  • 71.5 million fully diluted shares outstanding.

Challenges Ahead

  • Guidance range does not include any revenue contributions or financial impact from pending acquisition of OMMIC SAS.
  • Risks related to any weakening of economic conditions
  • Dependence on a limited number of customers
  • Component shortages or other disruptions in our supply chain
  • Inflationary pressures