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Jul 03, 2020

Macom Q3 2020 Earnings Report

MACOM's Q3 2020 financial results were announced, demonstrating revenue growth and improved profitability.

Key Takeaways

MACOM reported a 26.7% increase in revenue compared to the previous year, reaching $137.3 million. The company's gross margin improved to 51.6%, and operating income was $6.5 million, a significant turnaround from the previous year's loss. Adjusted non-GAAP EPS was $0.33 per diluted share.

Revenue increased by 26.7% year-over-year to $137.3 million.

Gross margin improved to 51.6% compared to 31.2% in the previous year.

Operating income was $6.5 million, a significant improvement from the previous year's loss of $323.8 million.

Adjusted non-GAAP EPS was $0.33 per diluted share, compared to a loss of $0.42 in the previous year.

Total Revenue
$137M
Previous year: $108M
+26.7%
EPS
$0.33
Previous year: -$0.42
-178.6%
Free Cash Flow
$30.4M
Adjusted Operating Income
$29.3M
Gross Profit
$70.9M
Previous year: $33.8M
+109.5%
Cash and Equivalents
$132M
Previous year: $85.3M
+54.7%
Free Cash Flow
$30.4M
Previous year: -$7.87M
-486.9%
Total Assets
$1.12B
Previous year: $1.1B
+1.5%

Macom

Macom

Forward Guidance

For the fiscal fourth quarter ending October 2, 2020, MACOM expects revenue to be in the range of $144 million to $148 million. Adjusted gross margin is expected to be between 55% and 57%, and adjusted earnings per share is expected to be between $0.36 and $0.40 on an anticipated 69.5 million fully diluted shares outstanding.

Positive Outlook

  • Revenue is expected to be in the range of $144 million to $148 million.
  • Adjusted gross margin is expected to be between 55% and 57%.
  • Adjusted earnings per share is expected to be between $0.36 and $0.40.
  • Anticipated 69.5 million fully diluted shares outstanding.
  • Continued focus on engineering excellence, financial performance and execution.

Challenges Ahead

  • Guidance is based on management's beliefs and assumptions.
  • Forward-looking statements are subject to risks and uncertainties.
  • Potential weakening of economic conditions, including as a result of the COVID-19 pandemic.
  • Dependence on a limited number of customers.
  • Disruptions in the supply chain.