MACOM(MTSI) - 2025 Q1 - Quarterly Report

Revenue Growth - Revenue increased by $61.0 million, or 38.8%, to$ 218.1 million for the three months ended January 3, 2025, compared to $157.1 million for the same period in 2023[125] - Industrial & Defense market revenue rose by$ 20.4 million, or 26.5%, driven by incremental revenue from the RF Business Acquisition[126] - Data Center market revenue increased by $15.8 million, or 31.9%, primarily due to the adoption of higher speed processing technologies[127] - Telecom market revenue surged by$ 24.8 million, or 80.9%, reflecting strong demand for 5G deployments and communication equipment upgrades[126] - Telecom market revenue increased by $24.8 million, or 80.9%, driven by 5G applications and recent acquisitions[129] Profitability and Expenses - Gross profit margin decreased to 53.7% for the three months ended January 3, 2025, down from 55.6% in the prior year[124] - Operating expenses increased to$ 99.6 million, representing 45.7% of revenue, compared to 48.6% in the previous year[124] - Net loss for the three months ended January 3, 2025, was $167.5 million, compared to a net income of$ 12.5 million for the same period in 2023[123] - Research and development expenses rose by $21.0 million, or 53.2%, to$ 60.4 million, representing 27.7% of revenue[132] - Selling, general and administrative expenses increased by $2.3 million, or 6.3%, to$ 39.2 million, accounting for 18.0% of revenue[133] Interest and Cash Flow - Interest income increased to $7.0 million, while interest expense was$ 1.4 million for the three months ended January 3, 2025[123] - Interest income increased to $7.0 million from$ 5.6 million, attributed to higher short-term investments[134] - Cash and cash equivalents at the end of the period were $232.7 million, up from$ 146.8 million at the beginning[138] - Cash flow from operating activities was $66.7 million, compared to$ 33.1 million in the previous period[139] Future Outlook - The company expects continued growth driven by the demand for high-performance analog, digital, and optical semiconductors across its primary markets[116] - Future revenue growth is anticipated from the introduction of new products and increased content of semiconductor solutions in customer systems[116] - The company plans to use remaining cash and short-term investments for general corporate purposes and potential acquisitions[149] - A preliminary agreement with the CHIPS Program Office could provide up to $70 million in funding under the CHIPS Act[148] Other Financial Events - The company recognized a$ 193.1 million loss on extinguishment of debt during the quarter[135]