Financial Performance - M/A-Com reported quarterly earnings of $0.90 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, and up from $0.66 per share a year ago, representing an earnings surprise of +1.12% [1] - The company posted revenues of $252.08 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.81%, and an increase from year-ago revenues of $190.49 million [2] Market Performance - M/A-Com shares have increased approximately 7% since the beginning of the year, compared to the S&P 500's gain of 7.9% [3] - The stock is currently rated Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $254.09 million, and for the current fiscal year, it is $3.46 on revenues of $958.14 million [7] - The semiconductor industry, particularly the Analog and Mixed segment, is ranked in the top 24% of Zacks industries, suggesting a favorable outlook for M/A-Com [8]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $252.1 million, up 6.9% sequentially, marking a new quarterly record [27] - Adjusted EPS for Q3 was $0.90, an increase from $0.85 in Q2 2025 [31] - Adjusted gross profit was $145.2 million, representing 57.6% of revenue, slightly ahead of prior quarters [28] - Cash flow from operations was approximately $60.4 million, up $21.6 million sequentially [32] - Cash and short-term investments totaled $735.2 million, an increase of $53.7 million from Q2 [34] Business Line Data and Key Metrics Changes - Industrial and Defense (IND) revenue was $108.2 million, up 10% sequentially; Data Center revenue was $75.8 million, up 5%; Telecom revenue was $68.1 million, up 4% [6] - The book-to-bill ratio for Q3 was just over 1.1, indicating strong demand and a record backlog [7] - The data center business is expected to see significant growth across almost all data rates and platforms, with a record 200G per lane product revenue anticipated in Q4 [14] Market Data and Key Metrics Changes - The IND market remains strong, particularly in the U.S. and European markets, driven by military and defense applications [10] - Telecom orders are solid, especially in 5G infrastructure and broadband access, despite expectations of limited growth in the global radio access network market [12] - The data center market continues to expand, with demand for high-performance connectivity ICs supporting 800G and 1.6T deployments [13] Company Strategy and Development Direction - The company focuses on technology differentiation across all product lines, aiming to enable high power, high frequency, and high data rate applications [9] - The strategy includes strengthening RF microwave and optical systems engineering capabilities to engage customers early in system architecture discussions [9] - The company aims to be the premier designer and manufacturer of high-frequency and high-power GaN IC semiconductors in Europe, leveraging its European Semiconductor Center [24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational improvements and cash generation capabilities, expecting continued revenue and profitability growth [35] - The company anticipates a slight decline in telecom revenues sequentially but expects overall growth in the telecom business year-over-year [37] - Management highlighted the importance of the RTP fab transfer, which is expected to enhance production capacity and yield improvements over the next few quarters [45] Other Important Information - The company has executed a plan to increase fab output capacity by up to 30% with the purchase of discounted fab equipment [24] - Susan Ocampo will retire from the Board of Directors effective August 31, 2025, after 15 years of service [38][39] Q&A Session Summary Question: RTP fab conveyance and margin headwind - Management discussed the transition of the RTP fab and the expected timeline for improvements to turn the margin headwind into a tailwind, estimating 25 to 50 basis points of improvement over the next few quarters [45][46] Question: LPO adoption and customer engagement - Management provided insights into the LPO ecosystem and the increasing customer engagement, indicating a positive outlook for broader adoption in fiscal 2026 [52][54] Question: Industrial and Defense trends - Management clarified that most growth in the IND category is driven by defense, with a book-to-bill ratio above one for several quarters [58] Question: Telecom business outlook - Management noted that while there is a modest sequential decline in telecom, the overall year-over-year growth is expected to be strong, particularly in SATCOM and 5G [65][84] Question: Data center growth drivers - Management highlighted broad strength across all data rates in the data center segment, with significant year-over-year growth anticipated [68][70]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $252.1 million, representing a sequential increase of 6.9% [23] - Adjusted gross profit was $145.2 million, or 57.6% of revenue, slightly ahead of prior quarters [24] - Adjusted net income increased approximately 6.1% to $68.2 million compared to $64.3 million in Q2 2025 [27] - Adjusted earnings per diluted share was $0.90, up from $0.85 in Q2 2025 [27] - Cash flow from operations was approximately $60.4 million, up $21.6 million sequentially [28] Business Line Data and Key Metrics Changes - Industrial and Defense (IND) revenue was $108.2 million, up 10% sequentially; Data Center revenue was $75.8 million, up 5% sequentially; Telecom revenue was $68.1 million, up 4% sequentially [5] - The Q3 book-to-bill ratio was just over 1.1, indicating strong demand and a record backlog [6] - The data center business is expected to see significant growth across almost all data rates and platforms, with a record 200G per lane product revenue anticipated in Q4 [12] Market Data and Key Metrics Changes - The IND market remains strong, particularly in the US and European markets, with opportunities in military space electronics and electronic warfare [8] - Telecom orders are solid, especially in 5G infrastructure and broadband access, despite expectations of limited growth in the global radio access network market [10] - The data center market continues to grow, driven by high-performance connectivity ICs supporting 800G and 1.6T deployments [11] Company Strategy and Development Direction - The company focuses on technology differentiation across all product lines, aiming to enable high power, high frequency, and high data rate applications [7] - The strategy includes strengthening RF microwave and optical systems engineering capabilities to engage customers early in system architecture discussions [7] - The company aims to be the premier designer and manufacturer of high-frequency and high-power GaN IC semiconductors in Europe, leveraging its European Semiconductor Center [21] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to improve yields and operational metrics at the RTP fab, which came under full control ahead of schedule [20] - The company anticipates revenue and profitability growth in Q4 2025, with adjusted gross margin expected to be between 56% and 58% [33] - Management noted that while telecom revenues may slightly decline sequentially, the overall telecom business is expected to grow over 40% year-over-year [59] Other Important Information - The company has executed a plan to increase fab output capacity by up to 30% with the purchase of discounted fab equipment [21] - Susan Ocampo will retire from the Board of Directors effective August 31, 2025, after 15 years of service [34][35] Q&A Session Summary Question: RTP fab conveyance and margin headwind - Management discussed the transition of the RTP fab and the expected timeline for improvements to turn the margin headwind into a tailwind, estimating a 25 to 50 basis points improvement over the next few quarters [41][42] Question: LPO adoption pipeline - Management highlighted the growing interest in LPO solutions, with one customer already in production and expectations for more business in 2026 [50] Question: Industrial and Defense trends - The growth in the IND category is primarily driven by defense, with a book-to-bill ratio over one for several quarters [53] Question: Telecom business outlook - Management noted that while there may be slight sequential declines, the telecom business is expected to grow over 40% year-over-year [59] Question: Data center growth drivers - The data center segment is experiencing broad strength across all data rates, with significant year-over-year growth anticipated [62]

[MACOM Fiscal Third Quarter 2025 Financial Results](index=1&type=section&id=MACOM%20Fiscal%20Third%20Quarter%202025%20Financial%20Results) MACOM's fiscal third quarter 2025 results present strong financial performance, a positive management outlook, and detailed financial statements [Financial Highlights](index=1&type=section&id=Financial%20Highlights) MACOM reported strong financial results for the third fiscal quarter of 2025, with significant year-over-year and sequential growth in revenue, and substantial increases in both GAAP and non-GAAP net income and earnings per share Q3 Fiscal 2025 GAAP Financial Highlights | Metric | Q3 FY2025 | Q3 FY2024 | YoY Change | Q2 FY2025 | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $252.1M | $190.5M | +32.3% | $235.9M | +6.9% | | Gross Margin | 55.3% | 53.2% | +210 bps | 55.2% | +10 bps | | Income from Operations | $37.7M | $19.7M | +91.4% | $34.9M | +8.0% | | Net Income | $36.5M | $19.9M | +83.4% | $31.7M | +15.1% | | Diluted EPS | $0.48 | $0.27 | +77.8% | $0.42 | +14.3% | Q3 Fiscal 2025 Adjusted Non-GAAP Financial Highlights | Metric | Q3 FY2025 | Q3 FY2024 | YoY Change | Q2 FY2025 | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Adjusted Gross Margin | 57.6% | 57.5% | +10 bps | 57.5% | +10 bps | | Adjusted Income from Operations | $63.5M | $45.6M | +39.3% | $59.8M | +6.2% | | Adjusted Net Income | $68.2M | $48.9M | +39.5% | $64.3M | +6.1% | | Adjusted Diluted EPS | $0.90 | $0.66 | +36.4% | $0.85 | +5.9% | [Management Commentary and Business Outlook](index=1&type=section&id=Management%20Commentary%20and%20Business%20Outlook) Management expressed confidence in the company's performance, attributing strong results to a competitive product portfolio and growing market momentum, while issuing a positive outlook for Q4 FY2025 - President and CEO Stephen G. Daly stated that the quarterly results demonstrate the growing competitiveness of MACOM's diverse product portfolio and increasing market momentum[4](index=4&type=chunk) Q4 Fiscal 2025 Business Outlook | Metric | Expected Range | | :--- | :--- | | Revenue | $256M - $264M | | Adjusted Gross Margin | 56.0% - 58.0% | | Adjusted Earnings per Diluted Share | $0.91 - $0.95 | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents MACOM's unaudited consolidated financial statements, detailing the company's financial position, operational performance, and cash flow activities [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the third quarter ended July 4, 2025, MACOM generated $252.1 million in revenue, a 32.3% increase year-over-year, with net income reaching $36.5 million or $0.48 per diluted share Income Statement Summary | Line Item | Three Months Ended July 4, 2025 ($ thousands) | Three Months Ended June 28, 2024 ($ thousands) | | :--- | :--- | :--- | | Revenue | $252,079 | $190,486 | | Gross Profit | $139,436 | $101,409 | | Income from Operations | $37,660 | $19,716 | | Net Income | $36,534 | $19,939 | | Diluted EPS | $0.48 | $0.27 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 4, 2025, MACOM's total assets increased to $2.00 billion, driven by growth in current assets including cash, cash equivalents, and short-term investments, while total liabilities also rose Balance Sheet Summary | Line Item | July 4, 2025 ($ thousands) | September 27, 2024 ($ thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $125,466 | $146,806 | | Short-term investments | $609,760 | $435,082 | | Total current assets | $1,127,355 | $903,078 | | Total assets | $2,003,272 | $1,755,640 | | **Liabilities & Equity** | | | | Total current liabilities | $294,647 | $108,184 | | Total liabilities | $739,921 | $629,297 | | Total stockholders' equity | $1,263,351 | $1,126,343 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended July 4, 2025, net cash provided by operating activities significantly improved to $165.7 million, while the company used $246.1 million in investing activities and generated $58.8 million from financing activities Cash Flow Summary (Nine Months Ended) | Line Item | July 4, 2025 ($ thousands) | June 28, 2024 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $165,732 | $100,311 | | Net cash used in investing activities | ($246,131) | ($148,615) | | Net cash provided by (used in) financing activities | $58,796 | ($8,434) | | Net change in cash and cash equivalents | ($21,340) | ($56,648) | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=2&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section explains MACOM's use of non-GAAP financial measures and provides a detailed reconciliation to comparable GAAP figures, showing an adjusted non-GAAP net income of $68.2 million for Q3 2025 - Management uses non-GAAP financial measures to evaluate ongoing operating performance by excluding items such as intangible amortization, share-based compensation, acquisition-related costs, and non-cash interest[10](index=10&type=chunk)[11](index=11&type=chunk) Q3 FY2025 GAAP to Non-GAAP Net Income Reconciliation | Description | Amount ($ thousands) | | :--- | :--- | | **Net income - GAAP** | **$36,534** | | Amortization expense | $4,967 | | Share-based compensation expense | $19,568 | | Non-cash interest, net | $381 | | Acquisition and integration related costs | $1,321 | | Tax effect of non-GAAP adjustments | $5,436 | | **Adjusted net income (Non-GAAP)** | **$68,207** | [About MACOM & Forward-Looking Statements](index=2&type=section&id=About%20MACOM%20%26%20Forward-Looking%20Statements) MACOM manufactures high-performance semiconductor products for Industrial and Defense, Data Center, and Telecommunications sectors, with this report containing forward-looking statements subject to inherent risks and uncertainties - MACOM designs and manufactures semiconductor products for the Industrial and Defense, Data Center, and Telecommunications industries, serving over **6,000 customers** annually[7](index=7&type=chunk) - The press release contains forward-looking statements about strategic plans, growth, and financial outlook, which are subject to risks and uncertainties that could cause actual results to differ materially[8](index=8&type=chunk)[9](index=9&type=chunk)

Core Viewpoint - MACOM Technology Solutions Holdings, Inc. reported strong financial results for its fiscal third quarter ended July 4, 2025, showcasing significant revenue growth and improved profitability metrics, indicating a competitive position in the semiconductor market [1][3]. Financial Results - Revenue for the third quarter was $252.1 million, representing a 32.3% increase year-over-year from $190.5 million and a 6.9% increase from the previous quarter's $235.9 million [8]. - Gross margin was reported at 55.3%, up from 53.2% in the same quarter last year and slightly improved from 55.2% in the prior quarter [8]. - Income from operations was $37.7 million, or 14.9% of revenue, compared to $19.7 million (10.4% of revenue) in the previous year and $34.9 million (14.8% of revenue) in the prior quarter [8]. - Net income was $36.5 million, translating to $0.48 per diluted share, compared to $19.9 million ($0.27 per diluted share) in the previous year and $31.7 million ($0.42 per diluted share) in the prior quarter [8]. Adjusted Financial Metrics - Adjusted gross margin was 57.6%, consistent with 57.5% in the previous year and prior quarter [8]. - Adjusted income from operations was $63.5 million, or 25.2% of revenue, compared to $45.6 million (24.0% of revenue) in the previous year and $59.8 million (25.4% of revenue) in the prior quarter [8]. - Adjusted net income was $68.2 million, or $0.90 per diluted share, compared to $48.9 million ($0.66 per diluted share) in the previous year and $64.3 million ($0.85 per diluted share) in the prior quarter [8]. Business Outlook - For the fiscal fourth quarter ending October 3, 2025, MACOM expects revenue to be in the range of $256 million to $264 million, with an adjusted gross margin between 56.0% and 58.0% [3]. - Adjusted earnings per diluted share are anticipated to be between $0.91 and $0.95, based on a non-GAAP income tax rate of 3% and 76.5 million fully diluted shares outstanding [3]. Company Overview - MACOM designs and manufactures high-performance semiconductor products for various industries, including Industrial and Defense, Data Center, and Telecommunications, serving over 6,000 customers annually [5]. - The company has achieved multiple certifications, including IATF16949 for automotive, AS9100D for aerospace, ISO9001 for quality, and ISO14001 for environmental management [5].

Wall Street analysts expect M/A-Com (MTSI) to post quarterly earnings of $0.89 per share in its upcoming report, which indicates a year-over-year increase of 34.9%. Revenues are expected to be $250.06 million, up 31.3% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Before a company reveals its earnings, it is vital to take ...

Company Overview - MACOM Technology Solutions Holdings, Inc. has assumed full operational control of a wafer fabrication facility in Research Triangle Park, North Carolina, ahead of schedule by approximately six months [1][3] - The facility specializes in GaN-on-SiC process technologies for RF power devices and monolithic microwave integrated circuits (MMICs), primarily serving telecommunications and defense electronics sectors [2] Operational Focus - MACOM's leadership is focused on improving the facility's performance and key operational metrics, with expectations for better results in the future [3] - The facility is recognized as a Trusted Foundry by the United States Department of Defense, indicating its importance in defense-related applications [2] Product and Market Position - MACOM designs and manufactures high-performance semiconductor products across various industries, including Telecommunications, Industrial, Defense, and Datacenter [3] - The company services over 6,000 customers annually and has a broad product portfolio that includes RF, Microwave, Analog, Mixed Signal, and Optical semiconductor technologies [3]

Company Overview - MACOM Technology Solutions Holdings, Inc. designs and manufactures high-performance semiconductor products for various industries including Telecommunications, Industrial, Defense, and Datacenter [3] - The company services over 6,000 customers annually with a broad product portfolio that includes RF, Microwave, Analog, Mixed Signal, and Optical semiconductor technologies [3] - MACOM has achieved multiple certifications including IATF16949 for automotive, AS9100D for aerospace, ISO9001 for international quality, and ISO14001 for environmental management [3] - The company operates facilities across the United States, Europe, and Asia, with its headquarters located in Lowell, Massachusetts [3] Upcoming Financial Results - MACOM plans to announce its financial results for the third quarter ended July 4, 2025, before market open on August 7, 2025 [1] - A conference call will be conducted at 8:30 a.m. Eastern Time on the same day, hosted by the President and CEO, Mr. Stephen G. Daly, and the Senior Vice President and CFO, Mr. John F. Kober [1] Investor Relations - Interested parties can register for a user-specific access code for the live call or access the live webcast through MACOM's Investor Relations Website [2] - A replay of the call will be available within 24 hours and will remain accessible for approximately 90 days [2]

Core Insights - The technology sector has been the top performer over the past decade, significantly outpacing other sectors, with an average annual return of 20.9% [14] - Major trends driving investment in technology include semiconductors, big data, the Internet of Things, cloud computing, machine learning, and artificial intelligence [1][4] Group 1: Technology Sector Performance - Technology investing is synonymous with growth investing, responsible for five of the top ten performing stocks in the market over the past decade [4] - The technology sector has consistently outperformed the S&P 500, with a 7 percentage point advantage over the index [14] - Nearly 32% of the S&P 500 Index's weight is assigned to the information technology sector, with tech and tech-adjacent stocks exceeding 41% [16][17] Group 2: Characteristics of Tech Stocks - The technology sector includes companies involved in IT services, software development, technology hardware distribution, and semiconductor manufacturing [11] - The classification of tech stocks has become complex due to the emergence of the communication services sector, which includes former tech companies like Meta Platforms and Alphabet [8][9] Group 3: Investment Rationale - Companies across all sectors are increasingly reliant on technology for growth, leading to sustained demand for tech stocks [12][13] - The trend of technology integration into various industries is expected to continue, reinforcing the growth potential of tech investments [12] Group 4: Identifying Top Tech Stocks - A quality screen for selecting tech stocks includes criteria such as a long-term estimated earnings-per-share growth rate of at least 15% and expected revenue growth of at least 15% annually over the next two years [19][20] - Stocks must have at least ten analysts covering them and a consensus Buy rating of 2.5 or lower to be considered for investment [20][21]

Core Insights - MACOM Technology Solutions Inc. has announced new additions to its RF and optical portfolio aimed at the SATCOM industry, including high bandwidth optical transmitters and RF over Fiber modules [1] - The company will showcase these solutions at the International Microwave Symposium (IMS) in San Francisco from June 17 to 19, 2025 [1] RF Amplifiers - New C-Band and X-Band Power Amplifiers (PAs) have been introduced, targeting commercial SATCOM and defense applications, with C-Band PAs operating from 5.85 – 6.75 GHz and X-Band PAs from 7.7 – 8.5 GHz, both achieving output power levels of 60 W and 130 W [2] - The C-Band PAs utilize MACOM's GaN-on-SiC production process for high linear power and efficiency [2] Ku-Band - The CMPA1E1F060 Ku-Band GaN-on-SiC SATCOM MMIC offers 60 W continuous wave saturated output power and a power added efficiency (PAE) of 35%, available in various package options [3] Ka-Band - The CMPA2H3B025D GaN High Power PA operates from 27 – 31 GHz, achieving up to 25 W of typical saturated output power and over 25% PAE, targeting both commercial and defense SATCOM applications [4] RFoF Modules - The Th-Mod MATT-60M1 transmitter and receiver modules provide up to 70 GHz bandwidth, suitable for antenna remoting and RFoF applications, offering low noise and high linearity [5] - The Open VPX RFoF solution includes MAVT-50C1 modules that provide up to 50 GHz of bandwidth over single mode fiber, designed for various RFoF applications [6] Company Overview - MACOM designs and manufactures high-performance semiconductor products for Telecommunications, Industrial and Defense, and Data Center industries, serving over 6,000 customers annually [8] - The company has achieved multiple certifications, including IATF16949, AS9100D, ISO9001, and ISO14001, and operates facilities across the United States, Europe, and Asia [8]