MACOM Reports Fiscal Fourth Quarter and Fiscal Year 2020 Financial Results
LOWELL, MA, November 5, 2020 - MACOM Technology Solutions Holdings, Inc. (“MACOM”) (NASDAQ: MTSI), a leading supplier of semiconductor products, today announced its financial results for its fiscal fourth quarter and fiscal year ended October 2, 2020.
Fourth Quarter Fiscal Year 2020 GAAP Results
•Revenue was $147.2 million, an increase of 31.2% compared to $112.2 million in the previous year fiscal fourth quarter and an increase of 7.3% compared to $137.3 million in the prior fiscal quarter;
•Gross margin was 52.8%, compared to 47.2% in the previous year fiscal fourth quarter and 51.6% in the prior fiscal quarter;
•Operating income was $12.7 million, compared to an operating loss of $12.0 million in the previous year fiscal fourth quarter and operating income of $6.5 million in the prior fiscal quarter; and
•Net income was $17.5 million, or $0.22 per diluted share, compared to net income of $10.5 million, or $0.16 per diluted share, in the previous year fiscal fourth quarter and net loss of $25.0 million, or $0.37 loss per diluted share, in the prior fiscal quarter.
Fourth Quarter Fiscal Year 2020 Adjusted Non-GAAP Results
•Adjusted gross margin was 56.4%, compared to 53.0% in the previous year fiscal fourth quarter and 55.5% in the prior fiscal quarter;
•Adjusted operating income was $34.1 million, or 23.2% of revenue, compared to adjusted operating income of $8.5 million, or 7.6% of revenue, in the previous year fiscal fourth quarter and adjusted operating income of $29.3 million, or 21.4% of revenue, in the prior fiscal quarter; and
•Adjusted net income was $27.6 million, or $0.40 per diluted share, compared to adjusted net income of $0.8 million, or $0.01 per diluted share, in the previous year fiscal fourth quarter and adjusted net income of $22.7 million, or $0.33 per diluted share, in the prior fiscal quarter.
Fiscal Year 2020 GAAP Results
•Revenue was $530.0 million, an increase of 6.1%, compared to $499.7 million in fiscal year 2019;
•Gross margin was 51.0%, compared to 44.2% in fiscal year 2019;
•Operating income was $3.4 million, compared to an operating loss of $380.4 million in fiscal year 2019; and
•Net loss was $46.1 million, or $0.69 loss per diluted share, compared to a net loss of $383.8 million, or $5.84 loss per diluted share in fiscal year 2019.
Fiscal Year 2020 Adjusted Non-GAAP Results
•Adjusted gross margin was 55.0%, compared to 50.6% in fiscal year 2019;
•Adjusted operating income was $96.0 million, compared to $10.9 million in fiscal year 2019; and
•Adjusted net income was $67.1 million, or $0.98 per diluted share, compared to adjusted net loss of $19.2 million, or $0.29 loss per diluted share in fiscal year 2019.
Management Commentary
“During fiscal 2020, we took steps to improve MACOM's financial performance, reinvigorate new product development and update our strategic plan,” said Stephen G. Daly, President and Chief Executive Officer. “We look forward to continued improvements during fiscal 2021.”
Business Outlook
For the fiscal first quarter ending January 1, 2021, MACOM expects revenue to be in the range of $146 million to $150 million. Adjusted gross margin is expected to be between 56% and 58%, and adjusted earnings per share is expected to be between $0.41 and $0.45 on an anticipated 69.8 million fully diluted shares outstanding.
Conference Call
MACOM will host a conference call on Thursday, November 5, 2020 at 5:00 p.m. Eastern Time to discuss its fiscal fourth quarter and fiscal year 2020 financial results and business outlook. Investors and analysts may join the conference call by dialing 1-877-837-3908 and providing the passcode 1388469.
International callers may join the teleconference by dialing +1-973-872-3000 and entering the same passcode at the prompt. A telephone replay of the call will be made available beginning two hours after the call and will remain available for five business days. The replay number is 1-855-859-2056 and the passcode is 1388469. International callers should dial +1-404-537-3406 and enter the same passcode at the prompt.
Additionally, this conference call will be broadcast live over the Internet and can be accessed by all interested parties in the Investors section of MACOM’s website at http://www.macom.com. To listen to the live call, please go to the Investors section of MACOM’s website and click on the conference call link at least fifteen minutes prior to the start of the conference call. For those unable to participate during the live broadcast, a replay will be available shortly after the call and will remain available for approximately 30 days.
About MACOM
MACOM designs and manufactures semiconductor products for Telecommunication, Industrial and Defense and Data Center applications. Headquartered in Lowell, Massachusetts, MACOM has design centers and sales offices throughout North America, Europe and Asia. MACOM is certified to the ISO9001 international quality standard and ISO14001 environmental management standard.
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements based on MACOM management’s beliefs and assumptions and on information currently available to our management. These forward-looking statements include, among others, statements about MACOM’s strategic plans and priorities, our ability to ensure business continuity and to be successful in our engineering efforts, acceleration of new product introductions, MACOM’s profitability, prospects and growth opportunities in our three primary markets, development and process qualification timelines, continued improvements and the estimated financial results for our 2021 fiscal first quarter and the stated business outlook and future results of operations.
These forward-looking statements reflect MACOM’s current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause those events or our actual activities or results to differ materially from those indicated by the forward-looking statements, including any failure to anticipate demand for our products; risks related to any weakening of economic conditions, including as a result of the COVID-19 pandemic; our dependence on a limited number of customers; our ability to develop new products and achieve market acceptance of those products; disruptions in our supply chain; and those other factors described in "Risk Factors" in MACOM’s filings with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other filings with the SEC. These forward-looking statements speak only as of the date of this press release, and MACOM undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Discussion Regarding the Use of Historical and Forward-Looking Non-GAAP Financial Measures
In addition to United States Generally Accepted Accounting Principles ("GAAP") reporting, MACOM provides investors with financial measures that have not been calculated in accordance with GAAP, such as: non-GAAP gross profit and gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations and operating margin, adjusted EBITDA, non-GAAP net income (loss), non-GAAP diluted earnings (loss) per share, non-GAAP diluted shares, non-GAAP income tax rate, non-GAAP interest expense and free cash flow. In this release or elsewhere, we may alternatively refer to such non-GAAP measures as “adjusted” measures. This non-GAAP information excludes the effect, where applicable, of intangible amortization expense, share-based and non-cash compensation expense, impairment and restructuring charges, changes in common stock warrant liability, non-cash interest, litigation costs, acquisition, integration and restructuring related costs, equity investment gains and losses, sale of business losses and other and the tax effect of each non-GAAP adjustment.
Management believes these excluded items are not reflective of our underlying performance and uses these non-GAAP financial measures to: evaluate our ongoing operating performance and compare it against prior periods, make operating decisions, forecast future periods, evaluate potential acquisitions, compare our operating performance against peer companies and assess certain compensation programs. The exclusion of these items from our non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent or unusual. We believe this non-GAAP financial information provides additional insight into our ongoing performance and have therefore chosen to provide this information to investors to help them evaluate the results of our ongoing operations and enable more meaningful period-to-period comparisons. These non-GAAP measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release. We have not provided a reconciliation with respect to any forward-looking non-GAAP financial data presented because we do not have and cannot reliably estimate certain key inputs required to calculate the most comparable GAAP financial data, such as the future price per share of our common stock for purposes of calculating the value of our common stock warrant liability, future acquisition costs, the possibility and impact of any litigation costs, changes in our GAAP effective tax rate and impairment charges. We believe these unknown inputs are likely to have a significant impact on any estimate of the comparable GAAP financial data.
Investors are cautioned against placing undue reliance on non-GAAP financial measures and are urged to review and consider carefully the adjustments made by management to the most directly comparable GAAP financial measures. Non-GAAP financial measures may have limited value as analytical tools because they may exclude certain expenses that some investors consider important in evaluating our operating performance or ongoing business performance. Further, non-GAAP financial measures may have limited value for purposes of drawing comparisons between companies because different companies may calculate similarly titled non-GAAP financial measures in different ways because non-GAAP measures are not based on any comprehensive set of accounting rules or principles.
Additional information and management’s assessment regarding why certain items are excluded from our non-GAAP measures are summarized below:
Amortization Expense - is related to acquired intangible assets which are based upon valuation methodologies, and are generally amortized over the expected life of the intangible asset at the time of acquisition, which may result in amortization amounts that vary over time. This is a non-cash expense and is not considered by management in making operating decisions.
Share-Based and Non-cash Compensation Expense - includes share-based compensation expense for awards that are equity and liability classified on our balance sheet. Share-based compensation expense is partially outside of our control due to factors such as stock price volatility and interest rates, which may be unrelated to our operating performance during the period in which the expense is incurred. It is an expense based upon valuation methodologies and assumptions that vary over time, and the amount of the expense can vary significantly between companies. Share-based and non-cash compensation expense amounts are not considered by management in making operating decisions.
Impairment-Related Charges - includes amounts associated with the impairment of intangible assets and property and equipment primarily associated with our decision in the third fiscal quarter of 2019 to cease design and development of optical modules and subsystems for Data Center applications, close certain product development facilities and reduce certain development activities for one of our product lines. We believe these amounts are not correlated to future business operations and including such charges does not reflect our ongoing operations.
Restructuring Charges - includes amounts primarily associated with approved plans to reduce staffing and manufacturing, research and development and administrative footprints, including amounts associated with the 2019 restructuring plan. We believe these amounts are not correlated to future business operations and including such charges does not reflect our ongoing operations.
Warrant Liability Expenses/Gains - are associated with mark-to-market fair value adjustments which are largely based on the value of our common stock, which may vary from period to period due to factors such as stock price volatility. We believe these amounts are not correlated to future business operations and including such charges does not reflect our ongoing operations.
Non-cash Interest, Net - includes amounts associated with the amortization of certain fees associated with the establishment or amendment of our credit agreement and term loans that are being amortized over the life of the agreement. We believe these amounts are non-cash in nature and not correlated to future business operations and including such charges does not reflect our ongoing operations.
Litigation Costs - includes gains, losses and expenses related to the resolution of other-than-ordinary-course threatened and actually filed lawsuits, contractual disputes and legal matters. These amounts are not considered by management in making operating decisions. We believe these amounts do not necessarily reflect the performance of our ongoing operations for the period in which such charges are recognized and the amounts of such gains, losses and expenses can vary significantly between companies.
Acquisition, Integration and Restructuring Related Costs - includes items such as professional fees, contingent consideration adjustments, severance payments, and salary and facility-related costs incurred that are not expected to have a continuing contribution to operations. We believe the exclusion of these items is useful in providing management a basis to evaluate ongoing operating activities and strategic decision making.
Equity Investment and Sale of Business Losses and Other - primarily includes losses associated with a non-marketable equity investment we have in a private business, impairment of our cost method investment, as well as other gains and losses associated with historical acquisitions and divestitures. The investment losses are non-cash in nature. We believe these items are not correlated to future business operations and including such amounts does not reflect our ongoing operations.
Tax Effect of Non-GAAP Adjustments - includes adjustments to arrive at an estimate of our adjusted non-GAAP income tax rate associated with our adjusted non-GAAP income over a period of time. We determine our adjusted non-GAAP income tax rate by using applicable rates in taxing jurisdictions and assessing certain factors including our historical and forecast earnings by jurisdiction, discrete items, cash taxes paid in relation to our adjusted non-GAAP net income before income taxes and our ability to realize tax assets. We generally assess this adjusted non-GAAP income tax rate quarterly and have utilized 8% for our fiscal years 2019 and 2020. Our historical effective income tax rate under GAAP has varied significantly from our adjusted non-GAAP income tax rate due primarily to changes in fair values of the common stock warrant liability, which are excluded from our adjusted net income and are neither deductible nor taxable for tax purposes, losses or gains associated with our equity method investment in a private business, income taxed in foreign jurisdictions at generally lower tax rates, intangible impairments, research and development tax credits and merger expenses. We believe it is beneficial for management to review our adjusted non-GAAP income tax rate on a consistent basis over periods of time. Items such as those noted above may have a significant impact on our GAAP income tax expense and associated effective tax rate over time.
Adjusted EBITDA - is a calculation that adds depreciation expense to our adjusted income from operations. Management reviews and utilizes this measure for operational analysis purposes. We believe competitors and others in the financial industry also utilize this measure for analysis purposes.
Free Cash Flow - is a calculation that starts with cash flow from operating activities and reduces this amount by our capital expenditures in the applicable period. Management reviews and utilizes this measure for cash flow analysis purposes. We believe competitors and others in the financial industry also utilize this measure for analyzing a company’s cash flow.
Incremental Shares - is the number of potential shares of common stock issuable upon the exercise of stock options, restricted stock, restricted stock units and warrants that were not included in the calculation of our GAAP diluted shares. We believe competitors and others in the financial industry utilize this measure for analysis purposes.
* * *
Company Contact:
MACOM Technology Solutions Holdings, Inc.
Stephen Ferranti
Vice President, Strategic Initiatives and Investor Relations
P: 978-656-2977
E: stephen.ferranti@macom.com
MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share data)
Three Months Ended
Twelve Months Ended
October 2, 2020
July 3, 2020
September 27, 2019
October 2, 2020
September 27, 2019
Revenue
$
147,249
$
137,267
$
112,248
$
530,037
$
499,708
Cost of revenue
69,533
66,391
59,323
259,871
279,000
Gross profit
77,716
70,876
52,925
270,166
220,708
Operating expenses:
Research and development
35,397
34,948
34,875
141,333
163,469
Selling, general and administrative
29,990
29,982
26,849
124,306
153,286
Impairment charges
—
—
700
—
264,786
Restructuring (benefit) charges
(356)
(554)
2,496
1,139
19,543
Total operating expenses
65,031
64,376
64,920
266,778
601,084
Income (loss) from operations
12,685
6,500
(11,995)
3,388
(380,376)
Other income (expense):
Warrant liability gain (expense)
2,003
(19,511)
(5,023)
(12,948)
765
Interest expense, net
(5,239)
(5,849)
(8,661)
(27,380)
(35,803)
Other income (expense), net
7,843
(4,372)
(3,507)
(4,622)
(7,739)
Total other income (expense)
4,607
(29,732)
(17,191)
(44,950)
(42,777)
Income (loss) before income taxes
17,292
(23,232)
(29,186)
(41,562)
(423,153)
Income tax (benefit) expense
(200)
1,750
(39,702)
4,516
(39,355)
Net income (loss)
$
17,492
$
(24,982)
$
10,516
$
(46,078)
$
(383,798)
Net income (loss) per share:
Income (loss) per share - Basic
$
0.26
$
(0.37)
$
0.16
$
(0.69)
$
(5.84)
Income (loss) per share - Diluted
$
0.22
$
(0.37)
$
0.16
$
(0.69)
$
(5.84)
Weighted average common shares
Shares - Basic
66,893
66,796
66,077
66,606
65,686
Shares - Diluted
69,286
66,796
66,378
66,606
65,686
MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
October 2, 2020
September 27, 2019
ASSETS
Current assets:
Cash and cash equivalents
$
129,441
$
75,519
Short term investments
203,711
101,226
Accounts receivable, net
45,884
69,790
Inventories
91,584
107,880
Income tax receivable
1,240
16,661
Prepaids and other current assets
9,659
27,506
Total current assets
481,519
398,582
Property and equipment, net
118,866
132,647
Goodwill and intangible assets, net
445,910
495,955
Deferred income taxes
41,935
43,812
Other investments
17,745
23,613
Other long-term assets
40,453
10,965
TOTAL ASSETS
$
1,146,428
$
1,105,574
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of finance lease obligations and other
$
1,368
$
1,084
Current portion of long-term debt
6,885
6,885
Accounts payable
23,043
24,822
Accrued liabilities
63,654
42,045
Total current liabilities
94,950
74,836
Finance lease obligations and other, less current portion
28,994
29,506
Long-term debt obligations, less current portion
652,172
655,272
Common stock warrant liability
25,312
12,364
Other long-term liabilities
44,854
19,700
Total liabilities
846,282
791,678
Stockholders’ equity
300,146
313,896
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
1,146,428
$
1,105,574
MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
Twelve Months Ended
October 2, 2020
September 27, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(46,078)
$
(383,798)
Depreciation and amortization
78,826
104,418
Share-based compensation
35,674
23,792
Warrant liability expense (gain)
12,948
(765)
Deferred income taxes
3,340
(41,297)
Loss on and impairment of minority equity investments
5,867
7,481
Impairment and restructuring related charges
—
273,572
Other adjustments to reconcile loss to net operating cash
5,302
4,255
Accounts receivable
23,906
27,585
Inventories
16,296
14,964
Change in other operating assets and liabilities
35,316
(9,507)
Net cash provided by operating activities
171,397
20,700
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(17,573)
(37,963)
Purchases, sales and maturities of investments
(101,044)
(1,094)
Proceeds from divested business
11,003
—
Proceeds from sale of assets
419
5,541
Acquisition of businesses, net
—
(375)
Net cash used in investing activities
(107,195)
(33,891)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of long-term debt
(6,885)
(6,885)
Payments on finance leases and other
(1,708)
(1,421)
Proceeds from stock option exercises and employee stock purchases
4,585
7,193
Repurchase of common stock - tax withholdings on equity awards
(6,708)
(4,137)
Other adjustments
—
(578)
Net used in financing activities
(10,716)
(5,828)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
436
(138)
NET CHANGE IN CASH AND CASH EQUIVALENTS
53,922
(19,157)
CASH AND CASH EQUIVALENTS — Beginning of period
75,519
94,676
CASH AND CASH EQUIVALENTS — End of period
$
129,441
$
75,519
MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(unaudited and in thousands, except per share data)
Three Months Ended
Twelve Months Ended
October 2, 2020
July 3, 2020
September 27, 2019
October 2, 2020
September 27, 2019
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Gross profit - GAAP
$
77,716
52.8
$
70,876
51.6
$
52,925
47.2
$
270,166
51.0
$
220,708
44.2
Amortization expense
4,347
3.0
4,347
3.2
5,773
5.1
17,462
3.3
29,847
6.0
Share-based and non-cash compensation expense
914
0.6
1,024
0.7
836
0.7
4,143
0.8
2,973
0.6
Impairment-related charges
—
—
—
—
—
—
—
—
(991)
(0.2)
Acquisition, integration and restructuring related costs
—
—
—
—
—
—
—
—
547
0.1
Adjusted gross profit (Non-GAAP)
$
82,977
56.4
$
76,247
55.5
$
59,534
53.0
$
291,771
55.0
$
253,084
50.6
Three Months Ended
Twelve Months Ended
October 2, 2020
July 3, 2020
September 27, 2019
October 2, 2020
September 27, 2019
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Operating expenses - GAAP
$
65,031
44.2
$
64,376
46.9
$
64,920
57.8
$
266,778
50.3
$
601,084
120.3
Amortization expense
(8,071)
(5.5)
(8,071)
(5.9)
(6,757)
(6.0)
(32,868)
(6.2)
(44,872)
(9.0)
Share-based and non-cash compensation expense
(8,560)
(5.8)
(9,908)
(7.2)
(3,551)
(3.2)
(37,016)
(7.0)
(22,742)
(4.6)
Impairment and restructuring benefit (charges)
356
0.2
554
0.4
(3,196)
(2.8)
(1,139)
(0.2)
(284,329)
(56.9)
Litigation costs
—
—
—
—
—
—
—
—
(167)
—
Acquisition, integration and restructuring related benefit (costs)
104
0.1
(22)
—
(366)
(0.3)
38
—
(6,799)
(1.4)
Adjusted operating expenses (Non-GAAP)
$
48,860
33.2
$
46,929
34.2
$
51,050
45.5
$
195,793
36.9
$
242,175
48.5
Three Months Ended
Twelve Months Ended
October 2, 2020
July 3, 2020
September 27, 2019
October 2, 2020
September 27, 2019
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Income (loss) from operations - GAAP
$
12,685
8.6
$
6,500
4.7
$
(11,995)
(10.7)
$
3,388
0.6
$
(380,376)
(76.1)
Amortization expense
12,418
8.4
12,417
9.0
12,530
11.2
50,330
9.5
74,719
15.0
Share-based and non-cash compensation expense
9,474
6.4
10,933
8.0
4,387
3.9
41,159
7.8
25,684
5.1
Impairment and restructuring (benefit) charges
(356)
(0.2)
(554)
(0.4)
3,196
2.8
1,139
0.2
283,338
56.7
Litigation costs
—
—
—
—
—
—
—
—
167
—
Acquisition, integration and restructuring related (benefit) costs
(104)
(0.1)
22
—
366
0.3
(38)
—
7,377
1.5
Adjusted income (loss) from operations (Non-GAAP)
$
34,117
23.2
$
29,318
21.4
$
8,484
7.6
$
95,978
18.1
$
10,909
2.2
Depreciation expense
6,657
4.5
7,092
5.2
7,276
6.5
28,496
5.4
29,699
5.9
Adjusted EBITDA (Non-GAAP)
$
40,774
27.7
$
36,410
26.5
$
15,760
14.0
$
124,474
23.5
$
40,608
8.1
Three Months Ended
Twelve Months Ended
October 2, 2020
July 3, 2020
September 27, 2019
October 2, 2020
September 27, 2019
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Net income (loss) - GAAP
$
17,492
11.9
$
(24,982)
(18.2)
$
10,516
9.4
$
(46,078)
(8.7)
$
(383,798)
(76.8)
Amortization expense
12,418
8.4
12,418
9.0
12,530
11.2
50,330
9.5
74,719
15.0
Share-based and non-cash compensation expense
9,474
6.4
10,933
8.0
4,387
3.9
41,159
7.8
25,715
5.1
Impairment and restructuring (benefit) charges
(356)
(0.2)
(554)
(0.4)
3,196
2.8
1,139
0.2
283,338
56.7
Warrant liability (gain) expense
(2,003)
(1.4)
19,511
14.2
5,023
4.5
12,948
2.4
(765)
(0.2)
Non-cash interest, net
1,015
0.7
1,015
0.7
1,015
0.9
4,061
0.8
4,061
0.8
Litigation costs
—
—
—
—
—
—
—
—
167
—
Acquisition, integration and restructuring related (benefit) costs
(104)
(0.1)
22
—
366
0.3
(38)
—
7,346
1.5
Equity investment, sale of business losses and other
(7,770)
(5.3)
4,571
3.3
3,545
3.2
4,905
0.9
7,700
1.5
Tax effect of non-GAAP adjustments
(2,596)
(1.8)
(224)
(0.2)
(39,772)
(35.4)
(1,319)
(0.2)
(37,686)
(7.5)
Adjusted net income (loss) (Non-GAAP)
$
27,570
18.7
$
22,710
16.5
$
806
0.7
$
67,107
12.7
$
(19,203)
(3.8)
Three Months Ended
Twelve Months Ended
October 2, 2020
July 3, 2020
September 27, 2019
October 2, 2020
September 27, 2019
Net Income (Loss)
Income (loss) per diluted share
Net Income (Loss)
Income (loss) per diluted share
Net Income (Loss)
Income (loss) per diluted share
Net Income (Loss)
Income (loss) per diluted share
Net Income (Loss)
Income (loss) per diluted share
Net income (loss) - GAAP
$
17,492
$
(24,982)
$
10,516
$
(46,078)
$
(383,798)
Warrant liability gain
(2,003)
—
—
—
—
Net income (loss) - diluted
$
15,489
$
0.22
$
(24,982)
$
(0.37)
$
10,516
$
0.16
$
(46,078)
$
(0.69)
$
(383,798)
$
(5.84)
Adjusted net income (loss) (Non-GAAP)
$
27,570
$
0.40
$
22,710
$
0.33
$
806
$
0.01
$
67,107
$
0.98
$
(19,203)
$
(0.29)
Three Months Ended
Twelve Months Ended
October 2, 2020
July 3, 2020
September 27, 2019
October 2, 2020
September 27, 2019
Shares
Shares
Shares
Shares
Shares
Diluted shares - GAAP
69,286
66,796
66,378
66,606
65,686
Incremental shares
—
1,767
358
1,756
387
Adjusted diluted shares (Non-GAAP)
69,286
68,563
66,736
68,362
66,073
Three Months Ended
Twelve Months Ended
October 2, 2020
July 3, 2020
September 27, 2019
October 2, 2020
September 27, 2019
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Interest expense, net - GAAP
$
5,239
3.6
$
5,849
4.3
$
8,661
7.7
$
27,380
5.2
$
35,803
7.2
Non-cash interest expense
(1,016)
(0.7)
(1,015)
(0.7)
(1,015)
(0.9)
(4,061)
(0.8)
(4,061)
(0.8)
Adjusted interest expense (Non-GAAP)
$
4,223
2.9
$
4,834
3.5
$
7,646
6.8
$
23,319
4.4
$
31,742
6.4
Three Months Ended
Twelve Months Ended
October 2, 2020
July 3, 2020
September 27, 2019
October 2, 2020
September 27, 2019
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Cash flow from (used in) operations
$
74,403
50.5
$
34,056
24.8
$
(7,578)
(6.8)
$
171,397
32.3
$
20,700
4.1
Capital expenditures
(4,915)
(3.3)
(3,622)
(2.6)
(6,058)
(5.4)
(17,573)
(3.3)
(37,963)
(7.6)
Free cash flow (Non-GAAP)
$
69,488
47.2
$
30,434
22.2
$
(13,636)
(12.1)
$
153,824
29.0
$
(17,263)
(3.5)
Free cash flow as a percentage of Adjusted net income
