Guidance for Fiscal Fourth Quarter 2015
LOWELL, Mass.--(BUSINESS WIRE)--
M/A-COM Technology Solutions Holdings, Inc. (NASDAQ: MTSI) (MACOM), a
leading supplier of high-performance RF, microwave, millimeterwave and
photonic semiconductor products, today announced it has completed the
previously announced divestiture of its Automotive business to Autoliv
ASP Inc. (Autoliv) for approximately $100 million in cash, plus the
opportunity to receive up to an additional $30 million in cash based on
the achievement of revenue-and customer order based earn-out targets
through 2019.
In conjunction with closing the divestiture, MACOM announced financial
guidance for its fiscal fourth quarter ending October 2, 2015, excluding
the Automotive business which is now classified as discontinued
operations. MACOM expects revenue to be in the range of $110 to $114
million, or an increase of 1.0 percent to 4.5 percent, compared to the
fiscal third quarter 2015 without Automotive. Non-GAAP gross margin is
expected to be between 56 percent and 59 percent, and non-GAAP earnings
per diluted share between $0.32 and $0.34 on an anticipated 55.5 million
shares outstanding.
Commenting on the closing, John Croteau, President and Chief Executive
Officer stated, "We are pleased to complete the divestiture of
our Automotive business, which we believe represents a key step towards
realizing our full potential as a pure play high-performance analog
semiconductor company. Since announcing the transaction, we have become
increasingly confident in the accelerated growth of our
business, which we now expect to replace the pre-divestiture earnings
contribution from the Auto business within a few quarters. With
our remaining business well aligned with our high-growth, high margin
model, we expect to achieve our target of 60 percent non-GAAP gross
margin in the first half of fiscal 2016 and 30 percent non-GAAP
operating margin as we exit fiscal 2016. This exceptional financial
profile will position MACOM in the highest performing segment of our
industry and serve as a key differentiator with both customers
and investors alike."
MACOM expects by the end of this week to file a Current Report on Form
8-K with the Securities and Exchange Commission (SEC), including pro
forma financial statements for its last three fiscal years and the nine
months ended July 3, 2015, adjusted to reflect the Automotive business
divestiture, and also to post to the investor page of MACOM's website (http://www.macom.com/)
certain comparative non-GAAP information along with a reconciliation to
GAAP.
About MACOM
MACOM (http://www.macom.com/)
is a leading supplier of high-performance analog RF, microwave,
millimeterwave and photonic semiconductor 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 and wireless networks, 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, the impact of our divestment of our Automotive
business, future activities or 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 equity issuances, outstanding indebtedness and
related interest expense and other costs, the potential that the
expected rollout of fiber-to-the-home network technology or other new
network technology deployments in China and other geographies fails to
occur, occurs more slowly than we expect or does not result in the
amount or type of new business we anticipate, lower than expected demand
in any or all of our primary end markets or from any of our large OEM
customers based on seasonal effects, macro-economic weakness or
otherwise, indemnity claims related to or failure to realize the
projected benefits of our Automotive business divestment, 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 or InP laser production capacity expansion
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, InP lasers or other solutions offered by us,
failures or delays in porting and qualifying GaN or InP 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, joint venture, financing
or restructuring activity, the impact of supply shortages or other
disruptions in our internal or outsourced supply chain, the impact of
changes in export, environmental or other laws applicable to us, 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, the potential loss of access to any in-licensed
intellectual property or inability to license technology we may require
on reasonable terms, 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, and any failure in the
effectiveness of our internal control over financial reporting or
disclosure controls and procedures, as well as those factors described
in "Risk Factors" in MACOM's filings with the SEC, including its
Quarterly Report on Form 10-Q for the fiscal quarter ended July 3, 2015
as filed with the SEC on August 12, 2015. MACOM undertakes no obligation
to publicly update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150817005854/en/
Company Contact:
M/A-COM Technology Solutions Holdings, Inc.
Bob
McMullan, 978-656-2753
Chief Financial Officer
bob.mcmullan@macom.com
or
Investor
Relations Contact:
Shelton Group
Leanne K. Sievers,
949-224-3874
EVP
or
Brett L. Perry, 214-272-0070
Managing
Director
sheltonir@sheltongroup.com
Source: M/A-COM Technology Solutions Holdings, Inc.
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