On November 9, 2023, MACOM Technology Solutions Holdings Inc (MTSI, Financial) released its financial results for the fiscal fourth quarter and the full fiscal year ended September 29, 2023. The company, a leading supplier of semiconductor products, reported a mixed set of numbers with a year-over-year decline in revenue but a slight quarter-over-quarter increase.
Fiscal Fourth Quarter 2023 GAAP Results
MTSI's revenue for the fourth quarter was $150.4 million, marking a 15.6% decrease compared to $178.1 million in the same quarter of the previous year, but a 1.2% increase from the prior fiscal quarter. Gross margin also saw a decline to 57.6% from 60.9% year-over-year. Income from operations was reported at $15.6 million, or 10.4% of revenue, a significant drop from $37.0 million, or 20.8% of revenue, in the previous year's fiscal fourth quarter. Net income for the quarter stood at $24.5 million, or $0.34 per diluted share, compared to a substantial $239.3 million, or $3.36 per diluted share, in the previous year, which included a $202.8 million non-cash income tax benefit.
Adjusted Non-GAAP Results
On an adjusted non-GAAP basis, MTSI's fourth-quarter gross margin was 60.1%, consistent with the prior fiscal quarter but down from 62.6% in the previous year. Adjusted income from operations was $37.2 million, or 24.7% of revenue, compared to $56.9 million, or 32.0% of revenue, in the same quarter last year. Adjusted net income was $40.1 million, or $0.56 per diluted share, a decrease from $55.1 million, or $0.77 per diluted share, in the fiscal fourth quarter of the previous year.
Fiscal Year 2023 Overview
For the full fiscal year 2023, MTSI reported a 4.0% decrease in revenue to $648.4 million, down from $675.2 million in fiscal year 2022. The gross margin for the year was 59.5%, slightly lower than the 60.2% reported in the previous year. Income from operations for the year was $107.4 million, down from $132.7 million in fiscal year 2022. Net income for the fiscal year was $91.6 million, or $1.28 per diluted share, compared to a net income of $440.0 million, or $6.18 per diluted share in fiscal year 2022, which included a gain from the sale of an equity interest and a significant non-cash income tax benefit.
Adjusted non-GAAP results for the fiscal year showed a gross margin of 61.3%, a slight decrease from 62.0% in the previous year. Adjusted income from operations was $189.6 million, or 29.2% of revenue, down from $211.0 million, or 31.2% of revenue, in fiscal year 2022. Adjusted net income was $193.3 million, or $2.70 per diluted share, compared to $201.0 million, or $2.82 per diluted share in the previous year.
Management Commentary and Business Outlook
Stephen G. Daly, President and Chief Executive Officer, commented on the results, stating,
We believe focusing on the highest frequency, highest power and highest data rate applications will further strengthen our market position and results in fiscal year 2024."For the fiscal first quarter ending December 29, 2023, MTSI expects revenue to be in the range of $149 million to $153 million, with an adjusted gross margin between 59% and 61%, and adjusted earnings per diluted share between $0.55 and $0.59.
Despite the year-over-year declines, MTSI's management appears to be optimistic about the company's strategic focus and market positioning for the upcoming fiscal year. Investors and analysts interested in further details can access the live webcast or replay of the conference call on MACOM's Investor Relations website.
For a detailed financial analysis and to stay updated on MTSI's performance, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from MACOM Technology Solutions Holdings Inc for further details.
