MACOM Technology Solutions (NASDAQ: MTSI) reported Q4 EPS of $0.16, in-line with the analyst estimate of $0.16. Revenue for the quarter came in at $151.2 million versus the consensus estimate of $152.17 million.

• Adjusted gross margin was 54.8%, compared to 58.1% in the previous year fiscal fourth quarter and 56.0% in the prior fiscal quarter;
• Adjusted operating income was $18.7 million, or 12.3% of revenue, compared to $38.0 million, or 22.8% of revenue, in the previous year fiscal fourth quarter and $16.5 million, or 11.4% of revenue, in the prior fiscal quarter;
• Adjusted net income was $10.5 million, or $0.16 per diluted share, compared to $30.3 million, or $0.46 per diluted share, in the previous year fiscal fourth quarter and $8.6 million, or $0.13 per diluted share, in the prior fiscal quarter; and
• Adjusted EBITDA was $26.1 million, compared to $47.3 million for the previous year fiscal fourth quarter and $24.1 million for the prior fiscal quarter.

Management Commentary

“Our fourth quarter results were another step in the right direction toward our target operating model of 60% gross margin, 30% operating margin and 60% free cash flow,” commented John Croteau, President and CEO of MACOM.

Mr. Croteau concluded, “Adjusted revenue was up 4% sequentially, adjusted operating margins up 90 basis points and adjusted earnings per share increased 23% over the prior quarter. Looking ahead, we expect the combination of growing revenue contribution from our secular growth drivers and prudent cost management to provide leverage for expanding operating margins and profits over the course of fiscal 2019.”

GUIDANCE:

MACOM Technology Solutions sees Q1 2019 EPS of $0.18-$0.22, versus the consensus of $0.19. MACOM Technology Solutions sees Q1 2019 revenue of $150-156 million, versus the consensus of $1.55 million.

For earnings history and earnings-related data on MACOM Technology Solutions (MTSI) click here.