•
Mar 31, 2023

Macom Q2 2023 Earnings Report

MACOM's financial performance for Q2 2023 was announced, with revenue increasing slightly year-over-year but decreasing compared to the previous quarter. The company's portfolio expansion strategy remains on track.

Key Takeaways

MACOM reported revenue of $169.4 million for Q2 2023, a 2.6% increase compared to the previous year but a 5.9% decrease from the prior quarter. Net income was $25.8 million, or $0.36 per diluted share, compared to $29.6 million, or $0.42 per diluted share, in the previous year.

Revenue increased by 2.6% year-over-year to $169.4 million.

Gross margin was 60.6%, compared to 59.9% in the previous year.

Net income was $25.8 million, or $0.36 per diluted share.

Adjusted net income was $56.7 million, or $0.79 per diluted share.

Total Revenue
$169M
Previous year: $165M
+2.6%
EPS
$0.79
Previous year: $0.68
+16.2%
Gross Profit
$103M
Previous year: $99M
+3.7%
Cash and Equivalents
$137M
Previous year: $128M
+7.1%
Free Cash Flow
$26.5M
Previous year: $35.4M
-25.2%
Total Assets
$1.62B
Previous year: $1.29B
+25.7%

Macom

Macom

Forward Guidance

For the fiscal third quarter ending June 30, 2023, MACOM expects revenue to be in the range of $145 million to $150 million. Adjusted gross margin is expected to be between 59.0% and 61.0%, and adjusted earnings per diluted share is expected to be between $0.52 and $0.56.

Positive Outlook

  • Revenue is expected to be between $145 million and $150 million.
  • Adjusted gross margin is expected to be between 59.0% and 61.0%.
  • Adjusted earnings per diluted share is expected to be between $0.52 and $0.56.
  • Anticipated non-GAAP income tax rate of 3%.
  • 71.5 million fully diluted shares outstanding.

Challenges Ahead

  • Second half will be more challenging.
  • Guidance range does not include any revenue contributions or financial impact from pending acquisition of the assets of OMMIC SAS.
  • Future acquisition costs are unknown.
  • Possibility and impact of any litigation costs are unknown.
  • Changes in GAAP effective tax rate and impairment charges are unknown.