Macom Tech Solutions Hldgs Inc Stock Price, News & Analysis

MACOM Technology Solutions has announced a new Opto-Amp™ optical amplifier product line for free space optical (FSO) communications between satellites and ground networks. The technology leverages Erbium and Ytterbium materials to achieve enhanced output power and efficiencies.

The product line aims to improve connectivity between earth stations and various satellite networks including LEO, MEO, and GEO. MACOM will manufacture these high-power optical amplifiers in U.S.-based facilities, incorporating radiation tolerant design elements proven for harsh space environments.

The amplifiers support multiple modulation methods including non-return-to-zero (NRZ), pulse-position-modulation (PPL), burst-mode, and coherent modulation. Engineering samples are expected in late 2025.

MACOM Technology Solutions (Nasdaq: MTSI) reported fiscal Q1 2025 results with revenue of $218.1 million, up 38.8% year-over-year and 8.7% sequentially. The company posted a net loss of $167.5 million ($2.30 loss per share), primarily due to a one-time $193.1 million charge related to debt refinancing.

Key metrics include GAAP gross margin of 53.7% and operating income of $17.5 million (8.0% of revenue). On an adjusted non-GAAP basis, gross margin was 57.5%, with operating income of $55.4 million (25.4% of revenue) and adjusted net income of $59.5 million ($0.79 per share).

For Q2 fiscal 2025, MACOM expects revenue between $227-233 million, adjusted gross margin of 57-58%, and adjusted EPS of $0.82-0.86.

MACOM Technology Solutions's European Semiconductor Center (MESC) has been awarded a multi-year contract from Banque Publique d'Investissement (BPI) to lead the development and manufacturing of advanced semiconductor products. The 'MAGENTA' program aims to develop next-generation Ka-band Monolithic Microwave Integrated Circuit (MMIC) front end products using MESC's Gallium Nitride (GaN) technology.

The program focuses on developing amplifiers with exceptional power-added efficiency to enhance high-frequency communications system performance. These products will support telecommunication systems in 5G-FR2 bands and low earth orbit (LEO) communication systems. MESC will lead the manufacturing of MMICs developed by MAGENTA partners, with the program being financed by the French government under France 2030 framework.

MACOM Technology Solutions has announced production availability of its 227 Gbps per lane family of linear equalizers for active copper cable applications. These devices can more than double the reach of traditional twinax Direct Attach Cables (DAC), enabling longer 1.6 Tbps copper cable assemblies for intra-rack connectivity in high-performance computing clusters.

The company offers two products: the MAEQ-40904, a small form-factor die solution, and the MAEQ-40914, a packaged part version. Both are designed for various small form factor cable connectors, including DSFP, QSFP, QSFP-DD, OSFP, and OSFP-XD. The equalizers use un-retimed, analog equalization techniques for lower power consumption and reduced link latency compared to retimed solutions.

MACOM will showcase these solutions at DesignCon in Santa Clara (January 29-30, 2025), along with their PURE DRIVE technology supporting 227 Gbps per lane for 1.6T linear pluggable optical modules.

MACOM Technology Solutions Holdings (Nasdaq: MTSI) has scheduled the announcement of its first quarter fiscal 2025 financial results for February 6, 2025, before market open. The company will host a conference call at 8:30 a.m. Eastern Time on the same day.

The call will feature President and CEO Stephen G. Daly and Senior VP/CFO John F. Kober. Interested parties can access the live call and webcast through MACOM's Investor Relations Website. A replay will be available for approximately 90 days after the event.

MACOM Technology Solutions (Nasdaq: MTSI) has announced a five-year strategic investment plan worth $345 million to modernize its Massachusetts and North Carolina semiconductor wafer fabrication facilities. The plan is supported by proposed funding through the CHIPS and Science Act, including up to $70 million in direct funding from the U.S. Department of Commerce.

The total government support could reach $180 million through a combination of federal funding, tax credits, and state support, including $15.7 million from the Massachusetts Technology Collaborative. MACOM plans to self-fund the remaining $165 million through operating cash flow over five years.

The investment will focus on expanding clean rooms, modernizing production lines, and upgrading infrastructure at both facilities. The Massachusetts facility will see modernization of 100mm production lines and installation of 150mm GaN-on-SiC manufacturing capabilities, while the North Carolina facility will receive 150mm wafer size production capabilities and advanced MOCVD epitaxial growth capabilities.

MACOM Technology Solutions (Nasdaq: MTSI) announced a refinancing operation of its convertible notes. The company will exchange approximately $288.8 million of existing 0.25% convertible senior notes due 2026 for $257.7 million of new 0% convertible senior notes due 2029 and approximately 1.6 million shares of common stock. Additionally, MACOM will issue $86.6 million in new convertible notes through a private placement.

The transactions are expected to close around December 19, 2024, resulting in a $61.7 million increase in cash balance (after fees) and a $55.5 million increase in debt balance, with a neutral impact on pro forma net leverage. The new notes and common stock issuance are being conducted under Securities Act exemptions and are not being registered.

MACOM Technology Solutions (Nasdaq: MTSI) reported fiscal Q4 2024 results with revenue of $200.7 million, up 33.5% year-over-year. Q4 GAAP net income reached $29.4 million ($0.39 per diluted share), while adjusted net income was $54.2 million ($0.73 per diluted share). For fiscal year 2024, revenue grew 12.5% to $729.6 million, with GAAP net income of $76.9 million ($1.04 per diluted share). Looking ahead, MACOM expects Q1 2025 revenue between $212-218 million with adjusted earnings per share of $0.75-0.81.

MACOM Technology Solutions (NASDAQ: MTSI) has acquired ENGIN-IC, a fabless semiconductor company specializing in Gallium Nitride (GaN) monolithic microwave integrated circuits and microwave assemblies. Founded in 2014, ENGIN-IC focuses on U.S. defense industry solutions with a portfolio of over 60 standard MMICs and custom products. The acquisition, funded with cash-on-hand, aims to strengthen MACOM's market position through ENGIN-IC's design capabilities in wideband and high-efficiency MMIC and module design. The transaction is expected to have minimal impact on MACOM's near-term financial performance.