MACOM Reports Revenue $112.6 Million, Adjusted Gross Margin of 57.4% and Adjusted EPS $0.34 (non-GAAP) for Fiscal Fourth Quarter
Fourth Quarter Fiscal Year 2015 GAAP Results
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Revenue was
$112.6 million , compared to$109.1 million in the prior fiscal quarter and$93.9 million in the previous year's fiscal fourth quarter; - Gross margin was 50.6 percent, compared to 48.1 percent in the prior fiscal quarter and 52.0 percent in the previous year's fiscal fourth quarter;
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Operating income was
$4.7 million , compared to$4.4 million in the prior fiscal quarter and$10.6 million in the previous year's fiscal fourth quarter; and -
Net income from continuing operations was
$13.8 million , resulting in$0.08 income per diluted share, compared to net income from continuing operations of$1.8 million , or$0.03 income per diluted share, in the prior fiscal quarter and net income from continuing operations of$10.6 million , or$0.22 income per diluted share, in the previous year's fiscal fourth quarter; and -
Net income from discontinued operations during the quarter was
$40.6 million related primarily to proceeds received from the sale ofMACOM's Automotive business.
Fourth Quarter Fiscal Year 2015 Adjusted Non-GAAP Results
- Adjusted gross margin was 57.4 percent, compared to 58.0 percent in the prior fiscal quarter and 58.0 percent in the previous year's fiscal fourth quarter;
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Adjusted operating income was
$26.2 million , or 23.2 percent of revenue, compared to$25.8 million , or 23.6 percent of revenue, in the prior fiscal quarter and$20.0 million , or 21.4 percent of revenue, in the previous year's fiscal fourth quarter; -
Adjusted net income was
$18.8 million , or$0.34 per diluted share, compared to adjusted net income of$18.4 million , or$0.33 per diluted share, in the prior fiscal quarter and adjusted net income of$13.0 million , or$0.27 per diluted share, in the previous year's fiscal fourth quarter; and -
Adjusted EBITDA was
$29.9 million , compared to$29.0 million for the prior fiscal quarter and$23.2 million for the previous year's fiscal fourth quarter.
Fiscal Year 2015 GAAP Results
-
Revenue was
$420.6 million , compared to$339.2 million in fiscal year 2014; - Gross margin was 48.4 percent, compared to 41.6 percent in fiscal 2014;
-
Operating income was
$10.1 million , compared to an operating loss of$27.8 million in fiscal 2014; and -
Fully diluted loss per share from continuing operations was
$0.11 per share compared to a loss per fully diluted share from continuing operations of$0.53 per share in fiscal 2014.
Fiscal Year 2015 Adjusted Non-GAAP Results
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Adjusted revenue was
$420.6 million , compared to$338.1 million in fiscal 2014, growing 24.4 percent; - Adjusted gross margin was 57.5 percent, compared to 54.3 percent in fiscal year 2014, expanding by 320 basis points;
-
Adjusted operating income and operating margin were
$96.9 million and 23.0 percent, compared to$63.1 million and 18.7 percent in fiscal 2014; -
Adjusted EBITDA was
$111.0 million compared to$75.8 million in fiscal year 2014, growing 46.5 percent; and -
Adjusted EPS was
$1.28 per share compared to$0.91 per share in fiscal year 2014, growing 40.7 percent.
Management Commentary
Multi-market was flat quarter on quarter with POS and OEM demand for our catalog products effectively flat sequentially. In Aerospace and Defense, we realized growth from our airborne defense radar program, which was however more than offset by push outs in legacy ground-based radar and satellite communication programs.
Mr. Croteau concluded, "This afternoon we announced a definitive agreement to acquire FiBest. We believe that this tuck-in acquisition will complement and accelerate our success in Optical, an already proven area of growth and profitability. In addition, during the quarter we began to unveil the progress we've made in realizing the potential of our third major secular growth driver, Active Antenna Arrays. Moving forward, we believe that Active Antennas can deliver MACOM substantial short, medium and long term growth potential, consistent in magnitude with our other two secular growth drivers - Optical and GaN."
Business Outlook
MACOM will guide this quarter without the contribution of the FiBest acquisition, which the company expects to close during its fiscal first quarter of 2016.
For the fiscal first quarter ending
Conference Call
MACOM will host a conference call on
Additionally, this conference call will be broadcast live over the
About MACOM
Headquartered in
MACOM, M/
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 our expectations for our announced tuck-in acquisition, statements about the growth potential of MACOM's growth drivers, including our Active Antennas offerings and any other 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 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
Non-GAAP Financial Measures
In addition to GAAP reporting, MACOM provides investors with non-GAAP adjusted financial information. Adjusted items include revenue, gross profit, gross margin, operating margin, operating income, net income, earnings per share, Adjusted 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 assets and liabilities measured at fair value, contingent consideration, amortization of debt discounts and issuance costs, other non-cash expenses, earn-out costs, restructuring costs and certain income tax items. Management does not believe that the adjusted items are reflective of MACOM's underlying performance. The adjustment 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 Adjusted EBITDA, which is non-GAAP earnings before interest, income taxes, depreciation and amortization. MACOM believes this non-GAAP financial information provides additional insight into these items and MACOM's 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 operations and enable more meaningful period to period comparisons. These non-GAAP measures may be different than similar measures used by other companies and should be considered in addition to, 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 used in this earnings release is included in the supplemental financial data attached to this press release.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands, except per share data) |
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Three Months Ended | Fiscal Year Ended | |||||||||||||||||||||||
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2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Revenue | $ | 112,564 | $ | 109,058 | $ | 93,859 | $ | 420,609 | $ | 339,189 | ||||||||||||||
Cost of revenue | 55,603 | 56,562 | 45,075 | 217,019 | 198,249 | |||||||||||||||||||
Gross profit | 56,961 | 52,496 | 48,784 | 203,590 | 140,940 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 22,002 | 20,965 | 19,540 | 82,188 | 71,351 | |||||||||||||||||||
Selling, general and administrative | 29,964 | 26,592 | 19,595 | 110,030 | 82,593 | |||||||||||||||||||
Restructuring charges | 308 | 558 | (902 | ) | 1,280 | 14,823 | ||||||||||||||||||
Total operating expenses | 52,274 | 48,115 | 38,233 | 193,498 | 168,767 | |||||||||||||||||||
Income (loss) from operations | 4,687 | 4,381 | 10,551 | 10,092 | (27,827 | ) | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Warrant liability gain (expense) | 9,651 | 546 | 1,638 | (6,020 | ) | (3,928 | ) | |||||||||||||||||
Interest expense | (4,425 | ) | (4,505 | ) | (4,529 | ) | (18,376 | ) | (12,362 | ) | ||||||||||||||
Other income (expense) | 131 | (225 | ) | 776 | (1,096 | ) | 3,217 | |||||||||||||||||
Total other income (expense) | 5,357 | (4,184 | ) | (2,115 | ) | (25,492 | ) | (13,073 | ) | |||||||||||||||
Income (loss) before income taxes | 10,044 | 197 | 8,436 | (15,400 | ) | (40,900 | ) | |||||||||||||||||
Income tax provision (benefit) | (3,797 | ) | (1,559 | ) | (2,142 | ) | (9,858 | ) | (16,086 | ) | ||||||||||||||
Income (loss) from continuing operations | 13,841 | 1,756 | 10,578 | (5,542 | ) | (24,814 | ) | |||||||||||||||||
Income (loss) from discontinued operations | 40,564 | 6,271 | 3,959 | 54,131 | 9,491 | |||||||||||||||||||
Net income (loss) | $ | 54,405 | $ | 8,027 | $ | 14,537 | $ | 48,589 | $ | (15,323 | ) | |||||||||||||
Net income (loss) per share: | ||||||||||||||||||||||||
Basic: | ||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.26 | $ | 0.03 | $ | 0.22 | $ | (0.11 | ) | $ | (0.53 | ) | ||||||||||||
Income (loss) from discontinued operations | 0.76 | 0.12 | 0.08 | 1.06 | 0.20 | |||||||||||||||||||
Income (loss) per share - basic | $ | 1.02 | $ | 0.15 | $ | 0.31 | $ | 0.95 | $ | (0.33 | ) | |||||||||||||
Diluted: | ||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.08 | $ | 0.03 | $ | 0.22 | $ | (0.11 | ) | $ | (0.53 | ) | ||||||||||||
Income (loss) from discontinued operations | 0.74 | 0.11 | 0.08 | 1.06 | 0.20 | |||||||||||||||||||
Income (loss) per share - diluted | $ | 0.81 | $ | 0.15 | $ | 0.30 | $ | 0.95 | $ | (0.33 | ) | |||||||||||||
Shares - Basic | 53,287 | 53,098 | 47,480 | 51,146 | 47,009 | |||||||||||||||||||
Shares - Diluted | 54,991 | 55,175 | 48,873 | 51,146 | 47,009 | |||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited and in thousands) |
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2015 | 2014 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 122,312 | $ | 173,895 | |||||||
Short term investments | 39,557 | — | |||||||||
Accounts receivable, net | 83,950 | 62,258 | |||||||||
Inventories | 79,943 | 71,481 | |||||||||
Prepaids and other current assets | 58,457 | 50,726 | |||||||||
Current assets, discontinued operations | — | 14,989 | |||||||||
Total current assets | 384,219 | 373,349 | |||||||||
Property and equipment, net | 83,759 | 50,052 | |||||||||
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337,012 | 153,417 | |||||||||
Deferred income taxes | 48,239 | 84,629 | |||||||||
Other long-term assets | 13,022 | 20,232 | |||||||||
Other assets, discontinued operations | — | 555 | |||||||||
TOTAL ASSETS | $ | 866,251 | $ | 682,234 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of debt obligations | $ | 4,058 | $ | 3,478 | |||||||
Accounts payable, accrued liabilities and other | 67,418 | 74,247 | |||||||||
Other current liabilities, discontinued operations | — | 7,921 | |||||||||
Total current liabilities | 71,476 | 85,646 | |||||||||
Long-term debt obligations, less current portion | 340,504 | 343,178 | |||||||||
Common stock warrant liability | 21,822 | 15,801 | |||||||||
Deferred income taxes and other | 7,916 | 9,042 | |||||||||
Total liabilities | 441,718 | 453,667 | |||||||||
Stockholders' equity | 424,533 | 228,567 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 866,251 | $ | 682,234 | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in thousands) |
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Fiscal Year Ended | ||||||||||||
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2015 | 2014 | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income (loss) | $ | 48,589 | $ | (15,323 | ) | |||||||
Non-cash adjustments | 109,045 | 57,755 | ||||||||||
Gain on sale of business | (63,256 | ) | — | |||||||||
Change in operating assets and liabilities | (60,700 | ) | (16,960 | ) | ||||||||
Net cash from operating activities | 33,678 | 25,472 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Acquisition of businesses, net | (208,352 | ) | (260,875 | ) | ||||||||
Sale of businesses and product line | 81,208 | 24,345 | ||||||||||
Purchase of investment securities | (40,183 | ) | — | |||||||||
Strategic investments | 1,500 | (5,250 | ) | |||||||||
Purchases of property and equipment | (38,252 | ) | (16,973 | ) | ||||||||
Acquisition of intellectual property | (3,346 | ) | (5,490 | ) | ||||||||
Net cash used in investing activities | (207,425 | ) | (264,243 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Payments of debt | (5,004 | ) | (44,417 | ) | ||||||||
Proceeds from stock offering | 127,761 | — | ||||||||||
Repurchase of common stock | (8,626 | ) | (1,282 | ) | ||||||||
Borrowings on revolving facility | 100,000 | 245,000 | ||||||||||
Payments on revolving facility | (100,000 | ) | (245,000 | ) | ||||||||
Proceeds from notes payable | — | 350,000 | ||||||||||
Proceeds from stock awards and units | 5,450 | 4,028 | ||||||||||
Capital contributions | — | 3,200 | ||||||||||
Other adjustments | 2,826 | (9,169 | ) | |||||||||
Net cash from financing activities | 122,407 | 302,360 | ||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (243 | ) | (182 | ) | ||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (51,583 | ) | 63,407 | |||||||||
CASH AND CASH EQUIVALENTS — Beginning of period | 173,895 | 110,488 | ||||||||||
CASH AND CASH EQUIVALENTS — End of period | $ | 122,312 | $ | 173,895 | ||||||||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (unaudited and in thousands, except per share data) |
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Three Months Ended | Three Months Ended | Fiscal Year Ended | ||||||||||||||||||||||||||||||||||||||
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Amount | Amount | Amount | Amount | |||||||||||||||||||||||||||||||||||||
Revenue - GAAP | $ | 112,564 | $ | 109,058 | $ | 93,859 | $ | 420,609 | $ | 339,189 | ||||||||||||||||||||||||||||||
Nitronex prior to acquisition | — | — | — | — | (1,048 | ) | ||||||||||||||||||||||||||||||||||
Adjusted Revenue (NonGAAP) | $ | 112,564 | $ | 109,058 | $ | 93,859 | $ | 420,609 | $ | 338,141 | ||||||||||||||||||||||||||||||
Amount | % Revenue | Amount | % Revenue | Amount | % Revenue | Amount | % Revenue | Amount | % Revenue | |||||||||||||||||||||||||||||||
Gross Profit - GAAP | $ | 56,961 | 50.6 | $ | 52,496 | 48.1 | $ | 48,784 | 52.0 | $ | 203,590 | 48.4 | $ | 140,940 | 41.6 | |||||||||||||||||||||||||
Nitronex prior to acquisition | — | — | — | — | — | — | — | — | 959 | 0.3 | ||||||||||||||||||||||||||||||
Intangible amortization expense | 7,647 | 6.8 | 6,932 | 6.4 | 4,495 | 4.8 | 27,285 | 6.5 | 18,274 | 5.4 | ||||||||||||||||||||||||||||||
Non-cash compensation expense | 607 | 0.5 | 485 | 0.4 | 404 | 0.4 | 2,011 | 0.5 | 1,721 | 0.5 | ||||||||||||||||||||||||||||||
Equity-based compensation | (21 | ) | — | 27 | — | 13 | — | 243 | 0.1 | 66 | — | |||||||||||||||||||||||||||||
Acquisition FMV step-up expense (inventory/fixed assets) | (631 | ) | (0.6 | ) | 2,464 | 2.3 | 168 | 0.2 | 6,206 | 1.5 | 18,875 | 5.6 | ||||||||||||||||||||||||||||
Third-party engineering costs | — | — | 396 | 0.4 | 493 | 0.5 | 1,625 | 0.4 | 1,463 | 0.4 | ||||||||||||||||||||||||||||||
Integration costs and synergy savings | 41 | — | 487 | 0.4 | 100 | 0.1 | 880 | 0.2 | 1,406 | 0.4 | ||||||||||||||||||||||||||||||
Adjusted Gross Profit (NonGAAP) | $ | 64,604 | 57.4 | $ | 63,287 | 58.0 | $ | 54,457 | 58.0 | $ | 241,840 | 57.5 | $ | 183,704 | 54.3 | |||||||||||||||||||||||||
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$ | 22,002 | 19.5 | $ | 20,965 | 19.2 | $ | 19,540 | 20.8 | $ | 82,188 | 19.5 | $ | 71,351 | 21.0 | |||||||||||||||||||||||||
Nitronex prior to acquisition | — | — | — | — | — | — | — | — | (1,423 | ) | (0.2 | ) | ||||||||||||||||||||||||||||
Non-cash compensation expense | (2,380 | ) | (2.1 | ) | (1,456 | ) | (1.3 | ) | (680 | ) | (0.7 | ) | (6,404 | ) | (1.5 | ) | (2,678 | ) | (0.8 | ) | ||||||||||||||||||||
Equity-based compensation | 27 | — | (305 | ) | (0.3 | ) | (112 | ) | (0.1 | ) | (1,466 | ) | (0.3 | ) | (477 | ) | (0.1 | ) | ||||||||||||||||||||||
Acquisition FMV step-up expense (inventory/fixed assets) | (204 | ) | (0.2 | ) | (204 | ) | (0.2 | ) | (204 | ) | (0.2 | ) | (816 | ) | (0.2 | ) | (663 | ) | (0.2 | ) | ||||||||||||||||||||
Integration costs and synergy savings | (149 | ) | (0.1 | ) | (74 | ) | (0.1 | ) | (898 | ) | (1.0 | ) | (531 | ) | (0.1 | ) | (4,456 | ) | (1.3 | ) | ||||||||||||||||||||
Third-party engineering costs | — | — | 396 | 0.4 | 493 | 0.5 | 1,625 | 0.4 | 1,463 | 0.4 | ||||||||||||||||||||||||||||||
Adjusted |
$ | 19,296 | 17.1 | $ | 19,322 | 17.7 | $ | 18,139 | 19.3 | $ | 74,596 | 17.7 | $ | 63,117 | 18.7 | |||||||||||||||||||||||||
Selling, General and Administrative - GAAP | $ | 29,964 | 26.6 | $ | 26,592 | 24.4 | $ | 19,595 | 20.9 | $ | 110,030 | 26.2 | $ | 82,593 | 24.4 | |||||||||||||||||||||||||
Nitronex prior to acquisition | — | — | — | — | — | — | — | — | (685 | ) | (0.2 | ) | ||||||||||||||||||||||||||||
Earn-out costs | (330 | ) | (0.3 | ) | — | — | — | — | (330 | ) | (0.1 | ) | — | — | ||||||||||||||||||||||||||
Intangible amortization expense | (4,345 | ) | (3.9 | ) | (3,201 | ) | (2.9 | ) | (432 | ) | (0.5 | ) | (11,695 | ) | (2.8 | ) | (1,779 | ) | (0.5 | ) | ||||||||||||||||||||
Non-cash compensation expense | (5,589 | ) | (5.0 | ) | (4,697 | ) | (4.3 | ) | (1,613 | ) | (1.7 | ) | (20,239 | ) | (4.8 | ) | (6,632 | ) | (2.0 | ) | ||||||||||||||||||||
Equity-based compensation | 173 | 0.2 | (246 | ) | (0.2 | ) | (106 | ) | (0.1 | ) | (891 | ) | (0.2 | ) | (467 | ) | (0.1 | ) | ||||||||||||||||||||||
Acquisition FMV step-up expense (inventory/fixed assets) | (28 | ) | — | (28 | ) | — | (28 | ) | — | (112 | ) | — | (88 | ) | — | |||||||||||||||||||||||||
Litigation related costs | (188 | ) | (0.2 | ) | 21 | — | (653 | ) | (0.7 | ) | (933 | ) | (0.2 | ) | (1,598 | ) | (0.5 | ) | ||||||||||||||||||||||
Transaction expenses | (193 | ) | (0.2 | ) | (125 | ) | (0.1 | ) | — | — | (4,423 | ) | (1.1 | ) | (4,472 | ) | (1.3 | ) | ||||||||||||||||||||||
Integration costs and synergy savings | (315 | ) | (0.3 | ) | (136 | ) | (0.1 | ) | (485 | ) | (0.6 | ) | (1,029 | ) | (0.2 | ) | (9,399 | ) | (2.8 | ) | ||||||||||||||||||||
Adjusted Selling, General and Administrative (NonGAAP) | $ | 19,149 | 17.0 | $ | 18,180 | 16.7 | $ | 16,278 | 17.3 | $ | 70,378 | 16.7 | $ | 57,473 | 17.0 | |||||||||||||||||||||||||
Amount | % Revenue | Amount | % Revenue | Amount | % Revenue | Amount | % Revenue | Amount | % Revenue | ||||||||||||||||||||||||||||||||||||
Total operating expenses - GAAP | $ | 52,274 | 46.4 | $ | 48,115 | 44.1 | $ | 38,233 | 40.7 | $ | 193,498 | 46.0 | $ | 168,767 | 49.8 | ||||||||||||||||||||||||||||||
Nitronex prior to acquisition | — | — | — | — | — | — | — | — | (2,108 | ) | (0.3 | ) | |||||||||||||||||||||||||||||||||
Intangible amortization expense | (4,345 | ) | (3.9 | ) | (3,201 | ) | (2.9 | ) | (432 | ) | (0.5 | ) | (11,695 | ) | (2.8 | ) | (1,779 | ) | (0.5 | ) | |||||||||||||||||||||||||
Non-cash compensation expense | (7,968 | ) | (7.1 | ) | (6,153 | ) | (5.6 | ) | (2,293 | ) | (2.4 | ) | (26,642 | ) | (6.3 | ) | (9,310 | ) | (2.8 | ) | |||||||||||||||||||||||||
Equity-based compensation | 199 | 0.2 | (551 | ) | (0.5 | ) | (218 | ) | (0.2 | ) | (2,358 | ) | (0.6 | ) | (944 | ) | (0.3 | ) | |||||||||||||||||||||||||||
Acquisition FMV step-up expense (inventory/fixed assets) | (232 | ) | (0.2 | ) | (232 | ) | (0.2 | ) | (232 | ) | (0.2 | ) | (928 | ) | (0.2 | ) | (751 | ) | (0.2 | ) | |||||||||||||||||||||||||
Contingent consideration and earn-out costs | (330 | ) | (0.3 | ) | — | — | — | — | (330 | ) | (0.1 | ) | — | — | |||||||||||||||||||||||||||||||
Restructuring charges | (309 | ) | (0.3 | ) | (558 | ) | (0.5 | ) | 902 | 1.0 | (1,280 | ) | (0.3 | ) | (14,823 | ) | (4.4 | ) | |||||||||||||||||||||||||||
Integration costs and synergy savings | (464 | ) | (0.4 | ) | (210 | ) | (0.2 | ) | (1,383 | ) | (1.5 | ) | (1,560 | ) | (0.4 | ) | (13,855 | ) | (4.1 | ) | |||||||||||||||||||||||||
Litigation related costs | (188 | ) | (0.2 | ) | 21 | — | (653 | ) | (0.7 | ) | (933 | ) | (0.2 | ) | (1,598 | ) | (0.5 | ) | |||||||||||||||||||||||||||
Transaction expenses | (192 | ) | (0.2 | ) | (125 | ) | (0.1 | ) | — | — | (4,423 | ) | (1.1 | ) | (4,472 | ) | (1.3 | ) | |||||||||||||||||||||||||||
Third-party engineering | — | — | 396 | 0.4 | 493 | 0.5 | 1,625 | 0.4 | 1,463 | 0.4 | |||||||||||||||||||||||||||||||||||
Adjusted Total Operating Expenses (NonGAAP) | $ | 38,445 | 34.2 | $ | 37,502 | 34.4 | $ | 34,417 | 36.7 | $ | 144,974 | 34.5 | $ | 120,590 | 35.7 | ||||||||||||||||||||||||||||||
Income (loss) from operations - GAAP | $ | 4,687 | 4.2 | $ | 4,381 | 4.0 | $ | 10,551 | 11.2 | $ | 10,092 | 2.4 | $ | (27,827 | ) | (8.2 | ) | ||||||||||||||||||||||||||||
Nitronex prior to acquisition | — | — | — | — | — | — | — | (0.1 | ) | 3,067 | 0.9 | ||||||||||||||||||||||||||||||||||
Intangible amortization expense | 11,992 | 10.7 | 10,133 | 9.3 | 4,927 | 5.2 | 38,983 | 9.3 | 20,053 | 5.9 | |||||||||||||||||||||||||||||||||||
Non-cash compensation expense | 8,575 | 7.6 | 6,638 | 6.1 | 2,697 | 2.9 | 28,653 | 6.8 | 11,031 | 3.3 | |||||||||||||||||||||||||||||||||||
Equity-based compensation | (221 | ) | (0.2 | ) | 578 | 0.5 | 231 | 0.2 | 2,600 | 0.6 | 1,010 | 0.3 | |||||||||||||||||||||||||||||||||
Contingent consideration and earn-out costs | 330 | 0.3 | — | — | — | — | 330 | 0.1 | — | — | |||||||||||||||||||||||||||||||||||
Restructuring charges | 308 | 0.3 | 558 | 0.5 | (902 | ) | (1.0 | ) | 1,280 | 0.3 | 14,823 | 4.4 | |||||||||||||||||||||||||||||||||
Acquisition FMV step-up expense (inventory/fixed assets) | (399 | ) | (0.4 | ) | 2,696 | 2.5 | 400 | 0.4 | 7,134 | 1.7 | 19,626 | 5.8 | |||||||||||||||||||||||||||||||||
Litigation related costs | 188 | 0.2 | (21 | ) | — | 653 | 0.7 | 933 | 0.2 | 1,598 | 4.5 | ||||||||||||||||||||||||||||||||||
Transaction expenses | 192 | 0.2 | 125 | 0.1 | — | — | 4,423 | 1.1 | 4,472 | 0.5 | |||||||||||||||||||||||||||||||||||
Integration costs and synergy savings | 505 | 0.4 | 697 | 0.6 | 1,483 | 1.6 | 2,439 | 0.6 | 15,261 | 1.3 | |||||||||||||||||||||||||||||||||||
Adjusted Income (Loss) from Operations (NonGAAP) | $ | 26,157 | 23.2 | $ | 25,785 | 23.6 | $ | 20,040 | 21.4 | $ | 96,867 | 23.0 | $ | 63,114 | 18.7 | ||||||||||||||||||||||||||||||
Depreciation expense | 3,786 | 3.4 | 3,253 | 3.0 | 3,201 | 3.4 | 14,128 | 3.4 | 12,555 | 3.7 | |||||||||||||||||||||||||||||||||||
Other income, net | — | — | — | — | — | — | — | — | 118 | — | |||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 29,943 | 26.6 | $ | 29,038 | 26.6 | $ | 23,241 | 34.4 | $ | 110,995 | 26.4 | $ | 75,787 | 22.4 | ||||||||||||||||||||||||||||||
Interest expense- GAAP | $ | 4,425 | 3.9 | $ | 4,505 | 4.1 | $ | 4,529 | 4.8 | $ | 18,376 | 4.4 | $ | 12,362 | 3.7 | ||||||||||||||||||||||||||||||
Non-cash interest expense | (405 | ) | (0.4 | ) | (405 | ) | (0.4 | ) | (381 | ) | (0.4 | ) | (1,652 | ) | (0.4 | ) | (3,021 | ) | (0.9 | ) | |||||||||||||||||||||||||
Adjusted Interest Expense (NonGAAP) | $ | 4,020 | 3.6 | $ | 4,100 | 3.8 | $ | 4,148 | 4.4 | $ | 16,724 | 4.0 | $ | 9,341 | 2.8 | ||||||||||||||||||||||||||||||
Net income (loss) - GAAP | $ | 54,405 | 48.3 | $ | 8,027 | 7.4 | $ | 14,537 | 15.5 | $ | 48,589 | 11.6 | $ | (15,323 | ) | (4.5 | ) | ||||||||||||||||||||||||||||
Discontinued operations | (40,564 | ) | (36.0 | ) | (6,271 | ) | (5.8 | ) | (3,959 | ) | (4.2 | ) | (54,131 | ) | (12.9 | ) | (9,491 | ) | (2.8 | ) | |||||||||||||||||||||||||
Nitronex prior to acquisition | — | — | — | — | — | — | — | — | 3,067 | 0.9 | |||||||||||||||||||||||||||||||||||
Intangible amortization expense | 11,992 | 10.7 | 10,133 | 9.3 | 4,927 | 5.2 | 38,980 | 9.3 | 20,053 | 5.9 | |||||||||||||||||||||||||||||||||||
Non-cash compensation expense | 8,576 | 7.6 | 6,638 | 6.1 | 2,697 | 2.9 | 28,654 | 6.8 | 11,031 | 3.3 | |||||||||||||||||||||||||||||||||||
Equity-based compensation | (221 | ) | (0.2 | ) | 578 | 0.5 | 231 | 0.2 | 2,600 | 0.6 | 1,010 | 0.3 | |||||||||||||||||||||||||||||||||
Impairment of minority investment | — | — | — | — | — | — | 3,500 | 0.8 | — | — | |||||||||||||||||||||||||||||||||||
Contingent consideration | 330 | 0.3 | — | — | — | — | (1,670 | ) | (0.4 | ) | — | — | |||||||||||||||||||||||||||||||||
Restructuring charges | 308 | 0.3 | 558 | 0.5 | (902 | ) | (1.0 | ) | 1,280 | 0.3 | 14,823 | 4.4 | |||||||||||||||||||||||||||||||||
Warrant liability (gain) expense | (9,651 | ) | (8.6 | ) | (546 | ) | (0.5 | ) | (1,638 | ) | (1.7 | ) | 6,020 | 1.4 | 3,928 | 1.2 | |||||||||||||||||||||||||||||
Non-cash interest expense | 405 | 0.4 | 405 | 0.4 | 381 | 0.4 | 1,652 | 0.4 | 3,021 | 0.9 | |||||||||||||||||||||||||||||||||||
Acquisition FMV step-up expense (inventory/fixed assets) | (399 | ) | (0.4 | ) | 2,696 | 2.5 | 400 | 0.4 | 7,134 | 1.7 | 19,626 | 5.8 | |||||||||||||||||||||||||||||||||
Litigation related costs | 188 | 0.2 | (21 | ) | — | 653 | 0.7 | 933 | 0.6 | 1,598 | 4.5 | ||||||||||||||||||||||||||||||||||
Integration costs and synergy savings | 505 | 0.4 | 697 | 0.6 | 1,483 | 1.6 | 2,440 | 0.2 | 15,261 | 0.5 | |||||||||||||||||||||||||||||||||||
Transaction expenses | 192 | 0.2 | 125 | 0.1 | — | — | 4,422 | 1.1 | 4,472 | 1.3 | |||||||||||||||||||||||||||||||||||
Amount | % Revenue | Amount | % Revenue | Amount | % Revenue | Amount | % Revenue | Amount | % Revenue | ||||||||||||||||||||||||||||||||||||
Tax effect of non-GAAP adjustments | (7,117 | ) | (6.3 | ) | (4,811 | ) | (4.4 | ) | (5,003 | ) | (5.3 | ) | (21,877 | ) | (5.2 | ) | (25,786 | ) | (7.6 | ) | |||||||||||||||||||||||||
Transition services for divested business and other | (130 | ) | (0.1 | ) | 225 | 0.2 | (776 | ) | (0.8 | ) | (404 | ) | (0.1 | ) | (3,099 | ) | (0.9 | ) | |||||||||||||||||||||||||||
Adjusted Net Income (NonGAAP) | $ | 18,819 | 16.7 | $ | 18,433 | 16.9 | $ | 13,031 | 13.9 | $ | 68,122 | 16.2 | $ | 44,191 | 13.1 | ||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Fiscal Year Ended | |||||||||||||||||||||||||||||||||||||||||||
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Net Income (Loss) | Income (loss) per diluted share | Net Income (Loss) | Income (loss) per diluted share | Net Income (Loss) | Income (loss) per diluted share | Net Income (Loss) | Income (loss) per diluted share | Net Income (Loss) | Income (loss) per diluted share | ||||||||||||||||||||||||||||||||||||
GAAP | $ | 54,405 | $ | 0.81 | $ | 8,027 | $ | 0.15 | $ | 14,537 | $ | 0.30 | $ | 48,589 | $ | 0.95 | $ | (15,323 | ) | $ | (0.33 | ) | |||||||||||||||||||||||
Adjusted (NonGAAP) | $ | 18,819 | $ | 0.34 | $ | 18,433 | $ | 0.33 | $ | 13,031 | $ | 0.27 | $ | 68,122 | $ | 1.28 | $ | 44,191 | $ | 0.91 | |||||||||||||||||||||||||
Shares | Shares | Shares | Shares | Shares | |||||||||||||||||||||||||||||||||||||||||
Diluted Shares - GAAP | 54,991 | 55,175 | 48,873 | 51,146 | 47,009 | ||||||||||||||||||||||||||||||||||||||||
Incremental stock options, warrants, restricted stock and units | — | — | — | 2,056 | 1,408 | ||||||||||||||||||||||||||||||||||||||||
Adjusted Diluted Shares (NonGAAP) | 54,991 | 55,175 | 48,873 | 53,202 | 48,417 | ||||||||||||||||||||||||||||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20151117006904/en/
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