MACOM(US:MTSI)2019-02-06 00:20Revenue Performance - Revenue increased by $19.8 million, or 15.1%, to $150.7 million for the three months ended December 28, 2018, compared to $130.9 million for the same period in 2017[127]. - Telecom revenue decreased by $5.3 million, or 9.5%, primarily due to the sale of certain assets and lower sales to Asia customers[129]. - Data Center market revenue increased by $8.5 million, or 24.4%, driven by increased sales of legacy optical products and lasers[130]. - Industrial & Defense market revenue increased by $16.6 million, or 40.7%, reflecting strong demand in this sector[128]. - I&D market revenue increased by $16.6 million, or 40.7%, for the three months ended December 28, 2018, compared to the same period in 2017[131]. Profitability and Expenses - Gross profit margin improved to 50.8% for the three months ended December 28, 2018, compared to 46.6% for the same period in 2017[126]. - Gross profit was $76.6 million with a gross margin of 50.8% for the three months ended December 28, 2018, up from $61.0 million and 46.6% in the prior year[132]. - Total operating expenses increased to $91.0 million for the three months ended December 28, 2018, from $83.9 million in the same period in 2017[123]. - Research and development expenses rose by $1.9 million, or 4.5%, to $43.5 million, representing 28.9% of revenue for the three months ended December 28, 2018[133]. - Selling, general and administrative expenses increased by $4.9 million, or 13.0%, to $42.5 million, accounting for 28.2% of revenue for the three months ended December 28, 2018[134]. - Restructuring charges totaled $5.0 million for the three months ended December 28, 2018, with additional costs expected to be approximately $1.5 million to $2.0 million for the remainder of fiscal year 2019[135]. - Loss from operations decreased to $14.4 million for the three months ended December 28, 2018, compared to a loss of $23.0 million for the same period in 2017[123]. Cash Flow and Financial Position - Cash and cash equivalents decreased to $87.1 million as of December 28, 2018, down from $130.1 million at the beginning of the period[139]. - Net cash provided by operating activities was $2.9 million for the three months ended December 28, 2018, compared to $0.5 million in the same period of 2017[140]. - Cash flow used in investing activities included $68.5 million in short-term investments and $11.5 million in capital expenditures for the three months ended December 28, 2018[142]. - As of December 28, 2018, the company had $160.0 million in borrowing capacity under its revolving credit facility[146]. - The company plans to utilize available cash and short-term investments for general corporate purposes and potential acquisitions of complementary technologies and products[147]. Future Outlook - The company expects revenue growth driven by continued upgrades in the Telecom market and the adoption of cloud-based services in the Data Center market[116][117]. - The company anticipates continued growth in high-performance analog and optical semiconductors across its primary markets[115]. - The company has over 5,000 standard and custom devices across more than 60 product lines serving over 7,000 end customers[112].