You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media.
This story originally appeared on Zacks
MACOM Technology Solutions Holdings, Inc. MTSI reported fourth-quarter fiscal 2021 non-GAAP earnings of 61 cents per share, beating the Zacks Consensus Estimate by 5.2%. Further, the bottom line improved 52.5% year over year and 7.1% from the previous quarter.
Revenues of $155.2 million surpassed the Zacks Consensus Estimate of $155 million. Moreover, the top line rose 5.4% from the year-ago quarter and 1.7% sequentially.
Top Line in Detail
Telecom Market: The company generated revenues of $46.6 million (30% of total revenues) from the market, down 3% from the previous quarter.
Data Center Market: The market generated revenues of $33.5 million (21.6% of total revenues), which rose 1% from the prior quarter.
Industrial & Defense Market: MACOM generated revenues of $75.1 million (48.4% of total revenues) from the market, which grew 5% sequentially.
In fourth-quarter fiscal 2021, the non-GAAP gross margin was 61.1%, which expanded 470 basis points (bps) year over year.
In the reported quarter, non-GAAP operating expenses were $48.1 million, which declined 1.6% year over year. As a percentage of revenues, the figure contracted 220 bps to 31%.
Consequently, the company’s non-GAAP operating margin was 30.2%, which expanded 700 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Oct 1, 2021, cash equivalents and short-term investments were $344.9 million, up from $308.9 million as of Jul 2, 2021. Inventories were $82.7 million, down from $83.5 million in the last reported quarter.
Long-term debt obligations, excluding the current portion, were $492.1 million in the reported quarter compared with $492.2 million in the previous quarter.
Cash generated from operations was $40.8 million, down from $44.9 million in the last reported quarter.
The company’s free cash flow in the reported quarter was $35.8 million.
For first-quarter fiscal 2022, MACOM expects revenues between $157 million and $161 million. The Zacks Consensus Estimate for the same is pegged at $158.09 million.
The company’s adjusted earnings per share are anticipated to be 60-64 cents. The Zacks Consensus Estimate for the same is pegged at 53 cents.
The non-GAAP gross margin is anticipated to be 60-62%.
Zacks Rank & Stocks to Consider
Currently, MACOM has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Advanced Micro Devices AMD, PerkinElmer PKI and Mimecast Ltd. MIME. While Advanced Micro Devices sports a Zacks Rank #1 (Strong Buy), PerkinElmer and Mimecast carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Advanced Micro Devices, PerkinElmer, and Mimecast are currently projected at 46.2%, 41.7%, and 35%, respectively.
Zacks’ Top Picks to Cash in on Artificial Intelligence
This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
PerkinElmer, Inc. (PKI): Free Stock Analysis Report
MACOM Technology Solutions Holdings, Inc. (MTSI): Free Stock Analysis Report
Mimecast Limited (MIME): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Denial of responsibility! Swiftheadline is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – email@example.com. The content will be deleted within 24 hours.