MACOM Technology Solutions (NASDAQ: MTSI) reported Q1 EPS of $0.20, in-line with the analyst estimate of $0.20. Revenue for the quarter came in at $150.7 million versus the consensus estimate of $153.28 million.

• Adjusted gross margin was 56.3%, compared to 53.7% in the previous year fiscal first quarter and 54.8% in the prior fiscal quarter;
• Adjusted operating income was $21.9 million, or 14.5% of revenue, compared to $13.4 million, or 10.3% of revenue, in the previous year fiscal first quarter and $18.7 million, or 12.3% of revenue, in the prior fiscal quarter;
• Adjusted net income was $12.9 million, or $0.20 per diluted share, compared to $6.6 million, or $0.10 per diluted share, in the previous year fiscal first quarter and $10.5 million, or $0.16 per diluted share, in the prior fiscal quarter; and
• Adjusted EBITDA was $29.5 million, compared to $20.9 million for the previous year fiscal first quarter and $26.1 million for the prior fiscal quarter.

Management Commentary

“Revenue for the fiscal first quarter was $151 million dollars, roughly flat sequentially. Adjusted gross margin was 56% and adjusted earnings per share was $0.20. All in all, a solid quarterly performance in the face of a challenging macro environment,” commented John Croteau, President and CEO of MACOM.

“Seasonally speaking, the early part of the year normally tends to have lower visibility as orders slow ahead of Chinese New Year. This year, trade tensions and recent geopolitical events have exacerbated the situation, which we view as short-term and temporary in nature. Based on current discussions with customers, we believe end market demand looks healthy for the year as a whole, with 5G in particular expected to drive a rebound for MACOM in the second half of the calendar year.”

GUIDANCE:

MACOM Technology Solutions sees Q2 2019 EPS of $0.04-$0.12, versus the consensus of $0.23. MACOM Technology Solutions sees Q2 2019 revenue of $134-142 million, versus the consensus of $158.6 million.

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