MACOM Technology Solutions (NASDAQ: MTSI) reported Q2 EPS of $0.51, $0.04 better than the analyst estimate of $0.47. Revenue for the quarter came in at $150.6 million versus the consensus estimate of $150.06 million.

Second Quarter Fiscal Year 2021 GAAP Results

• Revenue was $150.6 million, an increase of 19.1%, compared to $126.4 million in the previous year fiscal second quarter and an increase of 1.4% compared to $148.5 million in the prior fiscal quarter;
• Gross margin was 55.9%, compared to 50.1% in the previous year fiscal second quarter and 54.0% in the prior fiscal quarter;
• Operating income was $19.0 million, compared to a loss of $5.3 million in the previous year fiscal second quarter and income of $12.1 million in the prior fiscal quarter; and
• Net income was $14.8 million, or $0.21 per diluted share, compared to net loss of $10.2 million, or $0.28 loss per diluted share, in the previous year fiscal second quarter and net loss of $9.0 million, or $0.13 loss per diluted share, in the prior fiscal quarter.

Second Quarter Fiscal Year 2021 Adjusted Non-GAAP Results

• Adjusted gross margin was 59.2%, compared to 54.5% in the previous year fiscal second quarter and 57.5% in the prior fiscal quarter;
• Adjusted operating income was $41.8 million, or 27.8% of revenue, compared to adjusted operating income of $19.6 million, or 15.5% of revenue, in the previous year fiscal second quarter and adjusted operating income of $37.8 million, or 25.4% of revenue, in the prior fiscal quarter; and
• Adjusted net income was $36.1 million, or $0.51 per diluted share, compared to adjusted net income of $11.9 million, or $0.17 per diluted share, in the previous year fiscal second quarter and adjusted net income of $32.2 million, or $0.46 per diluted share, in the prior fiscal quarter.

Management Commentary

“Q2 was a solid quarter,” said Stephen G. Daly, President and Chief Executive Officer. “Our engineering, sales, operations and administrative teams continue to work closely together to service our customers and improve our competitiveness in all aspects of our business.”

GUIDANCE:

MACOM Technology Solutions sees Q3 2021 EPS of $0.52-$0.56, versus the consensus of $0.48. MACOM Technology Solutions sees Q3 2021 revenue of $150-154 million, versus the consensus of $151.75 million.

For the fiscal third quarter ending July 2, 2021, MACOM expects revenue to be in the range of $150 million to $154 million. Adjusted gross margin is expected to be between 58% and 60%, and adjusted earnings per share is expected to be between $0.52 and $0.56 on an anticipated 71.0 million fully diluted shares outstanding.

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