MACOM Technology Solutions Holdings, Inc.
Jul 29, 2014

MACOM Reports Revenue $112.4 Million and EPS $0.33 (non-GAAP) for Fiscal Third Quarter; Revenue and EPS at the High End of Guidance

LOWELL, Mass., July 29, 2014 (GLOBE NEWSWIRE) -- M/A-COM Technology Solutions Holdings, Inc. (Nasdaq:MTSI) ("MACOM"), a leading supplier of high performance analog semiconductor solutions, today reported its financial results for its fiscal third quarter ended July 4, 2014.

Third Quarter Fiscal Year 2014 GAAP Results

Third Quarter Fiscal Year 2014 Non-GAAP Results

John Croteau, Chief Executive Officer of MACOM stated, "Revenue and earnings per share for the quarter were at the high end of our guidance with strong sequential growth that was broadly distributed across our end markets. Non-GAAP gross margin improved by 240 basis points sequentially and 670 basis points year over year to 51.7%, representing our seventh consecutive quarter of margin improvement."

"During the quarter, we closed on the sale of the CPE business to Freescale Semiconductor, which contributed one month of revenue in the quarter. Additionally, we closed on our seven-year Term Loan B facility that further strengthens our balance sheet and financial flexibility."

Mr. Croteau concluded, "We are pleased with our execution as we realize the benefits of our strategic initiatives and past investments in growth and gross margin expansion. We will remain laser-focused on servicing our target customers and applications as we further extend our leadership position and capture a greater share of the high performance analog RF, microwave and millimeter wave market."

During the fiscal third quarter, MACOM completed its refinancing of its existing revolving credit facility with a $450 million senior secured credit facility consisting of a $350 million Term Loan B facility and a $100 million Revolving Credit Facility. The initial draw down of the Term Loan B Facility was $350 million. Key benefits of this refinancing include extending the principal maturity of MACOM's outstanding indebtedness, providing access to institutional lenders and credit agency ratings, and providing access to additional capital for general corporate purposes, including future acquisitions.

Based on the greater level of outstanding debt and higher interest costs associated with the new facility, for the full fiscal fourth quarter, the refinancing will have a dilutive effect to MACOM's future EPS as described in more detail below.

Business Outlook

For the fiscal fourth quarter ending October 3, 2014, MACOM expects another quarter of solid growth with revenue expected to be in the range of 112 to 116 million dollars, which would be roughly 5 to 9 percent sequential growth after adjusting for the sale of the CPE business. Non-GAAP gross margin is expected to be between 50 and 53 percent, and non-GAAP earnings per diluted share between 31 and 34 cents on an anticipated 49 million shares outstanding, net of an expected $0.03 per share dilutive effect of the refinancing of MACOM's outstanding long-term indebtedness described above.

Conference Call

MACOM will host a conference call on Tuesday, July 29, 2014 at 5:00 p.m. Eastern Time to discuss its fiscal third quarter financial results and business outlook. Investors and analysts may join the conference call by dialing 1-877-837-3908 and providing the confirmation code 69009494. International callers may join the teleconference by dialing +1-973-872-3000 and entering the same confirmation code at the prompt. A telephone replay of the call will be made available beginning two hours after the call and will remain available for 5 business days. The replay number is 1-855-859-2056 with a pass code of 69009494. International callers should dial +1-404-537-3406 and enter the same pass code at the prompt.

Additionally, this conference call will be broadcast live over the Internet and can be accessed by all interested parties in the Investors section of MACOM's website at http://www.macom.com. To listen to the live call, please go to the Investors section of MACOM's website and click on the conference call link at least fifteen minutes prior to the start of the conference call. For those unable to participate during the live broadcast, a replay will be available shortly after the call and will remain available for approximately 30 days.

About MACOM

MACOM (www.macom.com) is a leading supplier of high performance analog RF, microwave, and millimeter wave products that enable next-generation Internet and modern battlefield applications. Recognized for its broad catalog portfolio of technologies and products, MACOM serves diverse markets, including high speed optical, satellite, radar, wired & wireless networks, CATV, automotive, industrial, medical, and mobile devices. A pillar of the semiconductor industry, we thrive on more than 60 years of solving our customers' most complex problems, serving as a true partner for applications ranging from RF to Light.

Headquartered in Lowell, Massachusetts, MACOM is certified to the ISO9001 international quality standard and ISO14001 environmental management standard. MACOM has design centers and sales offices throughout North America, Europe, Asia and Australia.

MACOM, M/A-COM, M/A-COM Technology Solutions, M/A-COM Tech, Partners in RF & Microwave, Partners from RF to Light, The First Name in Microwave and related logos are trademarks of MACOM. All other trademarks are the property of their respective owners.

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements based on MACOM management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include, among others, information concerning our stated business outlook and future results of operations, our statements regarding realization of the benefits of our strategic initiatives and past investments in growth and gross margin expansion, our statements regarding our remaining laser-focused on servicing our target customers and applications as we further extend our leadership position and capture a greater share of the high performance analog RF, microwave and millimeter wave markets, and any statements regarding future trends, business strategies, competitive position, industry conditions, acquisitions and market opportunities. Forward-looking statements include all statements that are not historical facts and generally may be identified by terms such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "seeks," "should," "will," "would" or similar expressions and the negatives of those terms.

Forward-looking statements contained in this press release reflect MACOM's current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause those events or our actual activities or results to differ materially from those expressed in any forward-looking statement. Although MACOM believes that the expectations reflected in the forward-looking statements are reasonable, it cannot and does not guarantee future events, results, actions, levels of activity, performance or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements, including greater than expected dilutive effect on earnings of our outstanding indebtedness and related interest expense and other costs, lower than expected demand in any or all of our five primary end markets or from any of our large OEM customers based on macro-economic weakness or otherwise, our failure to realize the expected economies of scale, lowered production cost and other anticipated benefits of our previously announced GaN intellectual property licensing program, the potential for defense spending cuts, program delays, cancellations or sequestration, failures or delays by any customer in winning business or to make purchases from us in support of such business, lack of adoption or delayed adoption by customers and industries we serve of GaN or other solutions offered by us, failures or delays in porting and qualifying GaN process technology to our Lowell, MA fabrication facility or third party facilities, lower than expected utilization and absorption in our manufacturing facilities, lack of success or slower than expected success in our new product development efforts, loss of business due to competitive factors, product or technology obsolescence, customer program shifts or otherwise, lower than anticipated or slower than expected customer acceptance of our new product introductions, the potential for a shift in the mix of products sold in any period toward lower-margin products or a shift in the geographical mix of our revenues, the potential for increased pricing pressure based on competitive factors, technology shifts or otherwise, the impact of any executed or abandoned acquisition, divestiture or restructuring activity, the impact of supply shortages or other disruptions in our internal or outsourced supply chain, the relative success of our cost-savings initiatives, the potential for inventory obsolescence and related write-offs, the expense, business disruption or other impact of any current or future investigations, administrative actions, litigation or enforcement proceedings we may be involved in, and the impact of any claims of intellectual property infringement or misappropriation, which could require us to pay substantial damages for infringement, expend significant resources in prosecuting or defending such matters or developing non-infringing technology, incur material liability for royalty or license payments, or prevent us from selling certain of our products, as well as those factors described in "Risk Factors" in MACOM's filings with the Securities and Exchange Commission (SEC), including its Quarterly Report on Form 10-Q for the fiscal quarter ended April 4, 2014 as filed with the SEC on May 12, 2014. MACOM undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

In addition to GAAP reporting, MACOM provides investors with non-GAAP financial information, including revenue, gross margin, operating margin, operating income, net income, earnings per share, EBITDA and other data calculated on a non-GAAP basis. This non-GAAP information excludes the operations of Nitronex prior to the date of acquisition, discontinued operations, the impact of fair value accounting in merger and acquisitions (M&A) of businesses, M&A costs, including acquisition and related integration costs, certain cost savings from synergies expected from M&A activities, income and expenses from transition services related to M&A activities, expected amortization of acquisition-related intangibles, share-based and other non-cash compensation expense, certain cash compensation, restructuring charges, litigation settlement and costs, changes in the carrying values of liabilities measured at fair value, contingent consideration, amortization of debt discounts and issuance costs, other non-cash expenses, earn-out costs, exited leased facility costs and certain income tax items. Management does not believe that the excluded items are reflective of MACOM's underlying performance. The exclusion of these and other similar items from MACOM's non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or unusual. These and other similar items are also excluded from EBITDA, which is non-GAAP earnings before interest, income taxes, depreciation and amortization. MACOM believes this non-GAAP financial information provides additional insight into MACOM's on-going performance and has, therefore, chosen to provide this information to investors for a consistent basis of comparison and to help them evaluate the results of MACOM's on-going operations and enable more meaningful period to period comparisons. These non-GAAP measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release.

 
 
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share data)
           
   Three Months Ended Nine Months Ended
  July 4, April 4, June 28, July 4, June 28,
  2014 2014 2013 2014 2013
           
Revenue $ 112,364 $ 107,827 $ 83,477 $ 304,345 $ 238,396
Cost of revenue 62,150 80,964 47,973 191,546 138,573
Gross profit 50,214 26,863 35,504 112,799 99,823
Operating expenses:          
Research and development 20,810 20,347 12,139 53,587 33,938
Selling, general and administrative 22,065 24,504 13,449 65,952 38,106
Contingent consideration (577)
Restructuring charges 2,635 1,060 15,725 1,060
 Total operating expenses 42,875 47,486 26,648 135,264 72,527
Income (loss) from operations 7,339 (20,623) 8,856 (22,465) 27,296
Other income (expense):          
Warrant liability gain (expense) (2,782) (4,066) 1,060 (5,566) (2,035)
 Interest expense (5,625) (1,622) (190) (7,833) (616)
 Other income 1,354 1,009 123 2,441 293
 Total other income (expense) (7,053) (4,679) 993 (10,958) (2,358)
           
Income (loss) before income taxes 286 (25,302) 9,849 (33,423) 24,938
Income tax provision (benefit) (897) (5,680) 2,869 (8,168) 8,482
Income (loss) from continuing operations 1,183 (19,622) 6,980 (25,255) 16,456
Loss from discontinued operations (2,500) (4,605)
Net income (loss) $ 1,183 $ (22,122) $ 6,980 $ (29,860) $ 16,456
           
Net income (loss) per share:          
Basic:          
Income (loss) from continuing operations $ 0.03 $ (0.42) $ 0.15 $ (0.54) $ 0.36
Loss from discontinued operations (0.05) (0.10)
Income (loss) per share - basic $ 0.03 $ (0.47) $ 0.15 $ (0.64) $ 0.36
           
Diluted:          
Income (loss) from continuing operations $ 0.02 $ (0.42) $ 0.15 $ (0.54) $ 0.35
Loss from discontinued operations (0.05) (0.10)
Income (loss) per share - diluted $ 0.02 $ (0.47) $ 0.15 $ (0.64) $ 0.35
           
Shares:          
Basic 47,280 46,808 46,066 46,856 45,788
Diluted 48,524 46,808 47,221 46,856 47,036
 
 
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(unaudited and in thousands, except per share data)
             
             
   Three Months Ended
  July 4, 2014 April 4, 2014 June 28, 2013
             
       Amount    Amount  
Revenue - GAAP     $ 107,827   $ 83,477  
Nitronex prior to acquisition     (362)   (1,252)  
Revenue - Non-GAAP     $ 107,465   $ 82,225  
             
   Amount  % Revenue  Amount  % Revenue  Amount  % Revenue
             
Gross profit - GAAP $ 50,214 44.7% $ 26,863 24.9% $ 35,504 42.5%
Nitronex prior to acquisition 16 0.1 789 1.6
Amortization expense 6,270 5.6 6,262 5.8 473 0.6
Non-cash compensation expense 646 0.6 426 0.4 243 0.3
Equity-based compensation 23 30
Acquisition FMV step-up 168 0.1 18,003 16.8
Third-party engineering costs 400 0.4 570 0.5
Integration costs and synergy savings 345 0.3 822 0.8
Gross profit - non-GAAP $ 58,066 51.7% $ 52,992 49.3% $ 37,009 45.0%
             
Research and Development - GAAP $ 20,810 18.5% $ 20,347 18.9% $ 12,139 14.5%
Nitronex prior to acquisition (438) (0.4) (1,019) (1.0)
Earn-out costs (1,021) (1.2)
Non-cash compensation expense (893) (0.8) (728) (0.7) (421) (0.5)
Equity-based compensation (228) (0.2) (137) (0.1)
Acquisition FMV step-up (204) (0.2) (183) (0.2)
Integration costs and synergy savings (1,108) (1.0) (2,414) (2.2)
Third-party engineering costs 400 0.4 570 0.5
Research and Development - non-GAAP $ 18,777 16.7% $ 17,017 15.8% $ 9,678 11.8%
             
Selling, General and Administrative - GAAP $ 22,065 19.6% $ 24,504 22.7% $ 13,449 16.1%
Nitronex prior to acquisition (191) (0.2) (469) (0.4)
Earn-out costs (569) (0.7)
Amortization expense (505) (0.4) (476) (0.4) (315) (0.4)
Non-cash compensation expense (1,851) (1.6) (2,136) (2.0) (756) (0.9)
Equity-based compensation (147) (0.1) (214) (0.2)
Acquisition FMV step-up (28) (21)
Litigation costs (1,836) (1.6) (440) (0.4) (250) (0.2)
Transaction expenses (250) (0.2)
Integration costs and synergy savings (2,321) (2.1) (6,178) (5.7)
Selling, General and Administrative - non-GAAP $ 15,377 13.7% $ 14,598 13.6% $ 11,090 13.5%
             
Total operating expenses - GAAP $ 42,875 38.2% $ 47,486 44.0% $ 26,648 31.9%
Nitronex prior to acquisition (629) (0.4) (1,598) (1.4)
Amortization expense (505) (0.4) (476) (0.4) (315) (0.4)
Non-cash compensation expense (2,744) (2.4) (2,864) (2.7) (1,177) (1.4)
Equity-based compensation (375) (0.3) (351) (0.3)
Acquisition FMV step-up (232) (0.2) (204) (0.2)
Contingent consideration and earn-out costs (1,590) (1.9)
Restructuring charges (2,635) (2.5) (950) (1.2)
Integration costs and synergy savings (3,429) (3.1) (8,592) (8.0)
Litigation costs (1,836) (1.6) (440) (0.4) (250) (0.3)
Transaction expenses (250) (0.2)
Third-party engineering 400 0.4 570 0.5
Total operating expenses - non-GAAP $ 34,154 30.4% $ 31,615 29.4% $ 20,768 25.3%
             
Income (loss) from operations - GAAP $ 7,339 6.5% $ (20,623) (19.1)% $ 8,856 10.6%
Nitronex prior to acquisition 645 0.4 2,387 3.1
Amortization expense 6,775 6.0 6,738 6.3 788 1.0
Non-cash compensation expense 3,390 3.0 3,290 3.1 1,420 1.7
Equity-based compensation 398 0.4 381 0.4
Contingent consideration and earn-out costs 1,590 1.9
Restructuring charges 2,635 2.5 950 1.2
Acquisition FMV step-up 400 0.4 18,207 16.9
Litigation costs 1,836 1.6 440 0.4 250 0.3
Transaction expenses 250 0.2
Integration costs and synergy savings 3,774 3.4 9,414 8.8
Income from operations - non-GAAP $ 23,912 21.3% $ 21,377 19.9% $ 16,241 19.8%
             
Net income (loss) - GAAP $ 1,183 1.1% $ (22,122) (20.5)% $ 6,980 8.4%
Nitronex prior to acquisition 645 0.5 2,387 2.9
Amortization expense 5,183 4.6 5,155 4.8 493 0.6
Non-cash compensation expense 2,593 2.3 2,517 2.3 872 1.1
Equity-based compensation 304 0.3 291 0.3
Contingent consideration and earn-out costs 995 1.2
Restructuring charges 2,016 1.9 666 0.8
Warrant liability (gain) expense 2,782 2.5 4,066 3.8 (1,060) (1.3)
Non-cash interest expense 1,838 1.6 91 0.1 46 0.1
Acquisition FMV step-up 306 0.3 13,061 12.2
Litigation costs 1,405 1.3 337 0.3 157 0.2
Integration costs and synergy savings 1,270 1.1 7,201 6.7
Transaction expenses 191 0.2
Transition services for divested business (1,036) (0.9) (741) (0.7)
Discontinued operations 2,500 2.3
Net income - non-GAAP $ 15,828 14.1% $ 15,208 14.2% $ 11,536 14.0%
             
Income from operations - non-GAAP $ 23,912   $ 21,377   $ 16,241  
Depreciation expense 3,296   3,367   2,534  
Other income, net   40   123  
EBITDA $ 27,208   $ 24,784   $ 18,898  
             
Interest expense- GAAP $ 5,625   $ 1,622   $ 190  
Non-cash interest expense (2,402)   (119)    (74)  
Interest expense- non-GAAP $ 3,223   $ 1,503   $ 116  
             
   
   
   Three Months Ended
  July 4, 2014 April 4, 2014 June 28, 2013
 

Amount

Income per
diluted share


Amount
Income (loss)
per
diluted share


Amount

Income per
diluted share
             
Net income (loss) $ 1,183 $ 0.02 $ (22,122) $ (0.47) $ 6,980 $ 0.15
             
Net income - non-GAAP $ 15,828 $ 0.33 $ 15,208 $ 0.32 $ 11,536 $ 0.24
             
Diluted shares - GAAP 48,524   46,808   47,221  
Incremental stock options, warrants, restricted stock and units   1,406   1,003  
Diluted shares - non-GAAP 48,524   48,214   48,224  
 
 
 
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(unaudited and in thousands, except per share data)
         
         
  Nine Months Ended
  July 4, 2014 June 28, 2013
         
   Amount    Amount  
Revenue - GAAP $ 304,345   $ 238,396  
Nitronex prior to acquisition (1,048)   (3,333)  
Revenue - non-GAAP $ 303,297   $ 235,063  
         
   Amount  % Revenue  Amount  % Revenue
         
Gross profit - GAAP $ 112,799 37.1% $ 99,823 41.9%
Nitronex prior to acquisition 959 0.5 2,596 1.6
Amortization expense 13,779 4.5 1,421 0.6
Non-cash compensation expense 1,355 0.4 823 0.4
Equity-based compensation 53
Acquisition FMV step-up 18,707 6.2
Integration costs and synergy savings 1,306 0.4
Third-party engineering costs 970 0.3
Gross profit - non-GAAP $ 149,928 49.4% $ 104,663 44.5%
         
Research and Development - GAAP $ 53,587 17.6% $ 33,938 14.2%
Nitronex prior to acquisition (1,423) (0.3) (2,845) (1.0)
Earn-out costs (1,021) (0.4)
Non-cash compensation expense (2,105) (0.7) (1,226) (0.5)
Equity-based compensation (365) (0.1)
Acquisition FMV step-up (459) (0.2)
Integration costs and synergy savings (3,558) (1.2)
Third-party engineering costs 970 0.3
Research and Development - non-GAAP $ 46,647 15.4% $ 28,846 12.3%
         
Selling, General and Administrative - GAAP $ 65,952 21.7% $ 38,106 16.0%
Nitronex prior to acquisition (685) (0.2) (1,554) (0.5)
Earn-out costs (569) (0.2)
Amortization expense (1,347) (0.4) (945) (0.4)
Non-cash compensation expense (5,065) (1.7) (2,317) (1.0)
Equity-based compensation (361) (0.1)
Acquisition FMV step-up (60)
Integration costs and synergy savings (8,914) (2.9) (1,267) (0.5)
Litigation costs (3,240) (1.1) (601) (0.3)
Transaction expenses (4,472) (1.5)
Selling, General and Administrative - non-GAAP $ 41,808 13.8% $ 30,853 13.1%
         
         
Total operating expenses - GAAP $ 135,264 44.4% $ 72,527 30.4%
Nitronex prior to acquisition (2,108) (0.4) (4,509) (1.5)
Amortization expense (1,347) (0.4) (945) (0.4)
Non-cash compensation expense (7,170) (2.4) (3,543) (1.5)
Equity-based compensation (726) (0.2)
Acquisition FMV step-up (519) (0.2)
Contingent consideration and earn-out costs (1,013) (0.4)
Restructuring charges (15,725) (5.2) (950) (0.4)
Integration costs and synergy savings (12,472) (4.1) (1,267) (0.5)
Litigation costs (3,240) (1.1) (601) (0.3)
Transaction expenses (4,472) (1.5)
Third-party engineering 970 0.3
Total operating expenses - non-GAAP $ 88,455 29.2% $ 59,699 25.4%
         
Income (loss) from operations - GAAP $ (22,465) (7.4)% $ 27,296 11.4%
Nitronex prior to Acquisition 3,067 1.0 7,105 3.2
Amortization expense 15,126 5.0 2,366 1.0
Non-cash compensation expense 8,525 2.8 4,366 1.9
Equity-based compensation 779 0.3
Contingent consideration and earn-out costs 1,013 0.4
Restructuring charges 15,725 5.2 950 0.4
Acquisition FMV step-up 19,226 6.3
Integration costs and synergy savings 13,778 4.5 1,267 0.5
Litigation costs 3,240 1.1 601 0.3
Transaction expenses 4,472 1.5
Income from operations - non-GAAP $ 61,473 20.3% $ 44,964 19.1%
         
Net income (loss) - GAAP $ (29,860) (9.8)% $ 16,456 6.9%
Nitronex prior to acquisition 3,067 0.9 7,105 3.1
Amortization expense 11,572 3.8 1,481 0.6
Non-cash compensation expense 6,521 2.2 3,154 1.3
Equity-based compensation 595 0.2
Contingent consideration 634 0.3
Restructuring charges 12,030 4.0 666 0.3
Warrant liability expense 5,566 1.8 2,035 0.9
Non-cash interest expense 2,020 0.7 155 0.1
Acquisition FMV step-up 13,841 4.6
Integration costs and synergy savings 8,922 2.9 793 0.3
Litigation costs 2,479 0.8 376 0.2
Transaction expenses 3,537 1.2
Transition services for divested business (1,777) (0.6)
Discontinued operations 4,605 1.5
Net income - non-GAAP $ 43,118 14.2% $ 32,855 14.0%
         
         
 

Amount
Income (loss)
per
diluted share


Amount

Income per
diluted share
Net income (loss) - GAAP $ (29,860) $ (0.64) $ 16,456 $ 0.35
         
Net income - non-GAAP $ 43,118 $ 0.89 $ 32,855 $ 0.69
         
Diluted shares - GAAP 46,856   47,036  
Incremental stock options, warrants, restricted stock and units 1,349   804  
Diluted shares - non-GAAP 48,205   47,840  
 
 
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands) 
 
  July 4, September 27,
  2014 2013
 ASSETS    
 Current assets:    
Cash and cash equivalents $ 173,508 $ 110,488
 Accounts receivable, net 75,795 63,526
 Inventories 69,923 54,908
 Deferred income taxes and other 46,638 17,525
 Total current assets 365,864 246,447
 Property and equipment, net 48,860 32,735
 Goodwill and intangible assets, net 175,956 31,548
 Deferred income taxes and other 88,654 5,905
 TOTAL ASSETS $ 679,334 $ 316,635
     
 LIABILITIES AND STOCKHOLDERS' EQUITY    
 Current liabilities:    
Current portion of long-term debt $ 8,032 $ —
Accounts payable, accrued liabilities and other 71,555 42,927
Deferred revenue 16,398 9,231
 Total current liabilities 95,985 52,158
 Long-term debt, less current portion 343,938
 Common stock warrant liability 17,439 11,873
 Deferred income taxes and other 7,908 5,463
 Total liabilities 465,270 69,494
 Commitments and contingencies    
 Stockholders' equity 214,064 247,141
 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 679,334 $ 316,635
 
 
M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
 
  Nine Months Ended
  July 4, June 28,
  2014 2013
     
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ (29,860) $ 16,456
Non-cash adjustments 47,706 17,357
Payment of contingent consideration (5,328)
Change in operating assets and liabilities (8,116) 948
Net cash from operating activities 9,730 29,433
CASH FLOWS FROM INVESTING ACTIVITIES:    
Acquisition of businesses, net (258,108)
Sale of a business 8,627
Sale of a product line 12,000
Strategic investments (5,250)
Purchases of property and equipment (10,279) (7,171)
Acquisition of intellectual property (5,088)
Net cash used in investing activities (258,098) (7,171)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from issuance of term notes payable 347,375
Payment of assumed debt (34,952)
Capital contributions 3,200 6,515
Payment of contingent consideration (675)
Financing activities (4,235) 2,960
Net cash from financing activities 311,388 8,800
NET CHANGE IN CASH AND CASH EQUIVALENTS 63,020 31,062
CASH AND CASH EQUIVALENTS — Beginning of period 110,488 84,600
CASH AND CASH EQUIVALENTS — End of period $ 173,508 $ 115,662
CONTACT: Company Contact:

         M/A-COM Technology Solutions Holdings, Inc.

         Robert J. McMullan

         Senior Vice President and Chief Financial Officer

         P: 978-656-2753

         E: bob.mcmullan@macom.com



         Investor Relations Contact:

         Shelton Group

         Leanne K. Sievers

         EVP, Investor Relations

         P: 949-224-3874

         E: lsievers@sheltongroup.com

M/A-COM Technology Solutions Inc. logo

Source: M/A-COM Technology Solutions Inc.

News Provided by Acquire Media