Inphi Corporation (NYSE: IPHI), a leader in high-speed data
movement interconnects, today announced financial results for its
fourth quarter and fiscal year ended Dec. 31, 2018.
GAAP Results
Revenue in the fourth quarter of 2018 was $86.5 million on a
U.S. generally accepted accounting principles (GAAP) basis,
slightly up year-over-year, compared with $85.7 million in the
fourth quarter of 2017 and up substantially from the third quarter
of 2018, resulting in a 10.9% sequential quarterly revenue growth.
The year over year increase was due to higher demand for data
center products, including PAM.
Gross margin under GAAP in the fourth quarter of 2018 was 57.2%,
compared with 62.0% in the fourth quarter of 2017. The decrease was
due to amortization of in-process research and development related
to the ClariPhy acquisition that was reclassified to developed
technology and product mix.
GAAP loss from operations in the fourth quarter of 2018 was $8.2
million, or (9.5%) of revenue, compared to GAAP loss from
operations in the fourth quarter of 2017 of $5.3 million or (6.2%)
of revenue. The increase was due to decline in gross margin as
discussed above.
GAAP net loss for the fourth quarter of 2018 was $21.6 million,
or ($0.49) per diluted common share, compared with GAAP net income
of $0.1 million in the fourth quarter of 2017.
Inphi reports revenue, gross margin, operating expenses, net
income (loss), and earnings per share in accordance with GAAP and
on a non-GAAP basis. A reconciliation of the GAAP to non-GAAP
revenue, gross margin, operating expenses, net income, earnings per
share, as well as a description of the items excluded from the
non-GAAP calculations, is included in the financial statements
portion of this press release.
Non-GAAP Results
Gross margin on a non-GAAP basis in the fourth quarter of 2018
was 69.3%, compared with 70.3% in the fourth quarter of 2017.
The slight decrease was largely due to change in product mix.
Non-GAAP income from operations in the fourth quarter of 2018
was $20.5 million, or 23.7% of revenue, compared with $17.2
million, or 20.1% of revenue in the fourth quarter of 2017.
Non-GAAP net income in the fourth quarter of 2018 was $20.5
million, or $0.45 per diluted common share. This compares with
non-GAAP net income of $16.2 million, or $0.37 per diluted common
share in the fourth quarter of 2017.
“Like others in the industry, we have been anticipating a
seasonally down Q1 ‘19 to be followed by strong growth in the
latter half of the 2019 calendar year,” said Ford Tamer, Inphi’s
President and CEO. “Our business grew 11% sequentially in Q4,
making it the third quarter in a row of double-digit revenue
growth. Our solid performance was driven by the production ramp of
PAM technology for 200G and 400G optical communication, which is
just beginning with US cloud customers. Furthermore, the 23.7%
non-GAAP income from operations in Q4 2018, and the resulting 3
cents non-GAAP EPS beat, serve to validate our business model.”
Year Ended 2018 ResultsRevenue in the year
ended December 31, 2018 was $294.5 million, compared with $348.2
million in the year ended December 31, 2017. GAAP net loss in the
year ended December 31, 2018 was $95.8 million, or ($2.19) per
diluted share, on approximately 43.7 million diluted weighted
average common shares outstanding. This compares with GAAP net loss
of $74.9 million, or ($1.78) per diluted share, on approximately
42.2 million diluted weighted average common shares outstanding in
the year ended December 31, 2017.
Non-GAAP net income in the year ended December 31, 2018 was
$38.8 million, or $0.86 per diluted weighted average common share
outstanding, on approximately 45.0 million diluted weighted average
common shares outstanding. This compares with non-GAAP net income
of $67.2 million in the year ended December 31, 2017, or $1.52 per
diluted weighted average common share outstanding, on approximately
44.3 million diluted weighted average common shares
outstanding.
Business OutlookThe following statements are
based on the Inphi’s current expectations for the first quarter of
2019. These statements are forward-looking and actual results may
differ materially. A reconciliation between the GAAP and Non-GAAP
outlook is included at the end of this press release.
- Revenue in Q1 2019 is expected to be in the range of $80.0
million to $82.0 million, the midpoint being $81.0 million.
- GAAP gross margin is expected to be in the range of
approximately 56.5% to 57.8%.
- Non-GAAP gross margin is expected to be in the range of
approximately 69.5% to 70.5%.
- Stock-based compensation expense is expected to be in the range
of $16.3 million to $16.7 million.
- GAAP results are expected to be a net loss in the range of
$21.8 million to $22.8 million, or ($0.49) – ($0.51) per basic
share, based on 44.4 million estimated weighted average basic
shares outstanding.
- Non-GAAP net income, excluding stock-based compensation
expense, amortization of intangibles related to acquisitions and
noncash interest on convertible debt, is expected to be in the
range of $12.7 million to $13.2 million, or $0.27-$0.29 per diluted
share, based on 46.1 million estimated diluted shares
outstanding.
Quarterly Conference Call TodayInphi plans to
hold a conference call today at 4:30 p.m. Eastern Time / 1:30 p.m.
Pacific Time with Ford Tamer, its president and chief executive
officer, and John Edmunds, its chief financial officer, to discuss
the fourth quarter 2018 results.
The call can be accessed by dialing 765-507-2591, participant
passcode: 3045399. Please dial-in ten minutes prior to the
scheduled conference call time. A live and archived webcast of the
call will be available on Inphi’s website at
https://www.inphi.com/investors/ for up to 30 days after the
call.
About InphiInphi Corporation is a leader in
high-speed data movement. We move big data - fast, throughout
the globe, between data centers, and inside data centers.
Inphi's expertise in signal integrity results in reliable data
delivery, at high speeds, over a variety of distances. As
data volumes ramp exponentially due to video streaming, social
media, cloud-based services, and wireless infrastructure, the need
for speed has never been greater. That's where we come in.
Customers rely on Inphi's solutions to develop and build out the
Service Provider and Cloud infrastructures, and data centers of
tomorrow. To learn more about Inphi, visit www.inphi.com.
Cautionary Note Concerning Forward-Looking
StatementsStatements in this press release and certain
matters that may be discussed on the fourth quarter of 2018
conference call regarding Inphi Corporation, which are not
historical facts, are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements may be identified by terms such as
outlook, believe, expect, anticipate, may, will, provide, continue,
could, and should, and the negative of these terms or other similar
expressions. These statements include statements relating to
Inphi’s business outlook and current expectations for 2019,
including with respect to the first quarter of 2019, revenue, gross
margin, stock-based compensation expense, operating performance,
net income or loss, and earnings per share; the Company’s
expectations regarding growth opportunities and business model.
These statements are based on current expectations and
assumptions that are subject to risks and uncertainties. Actual
results could differ materially from those anticipated as a result
of various factors, including but not limited to: factors affecting
Inphi’s results of operations, Inphi’s ability to manage its
growth, Inphi’s ability to sustain or increase profitability,
demand for Inphi’s solutions, the effect of declines in average
selling prices for Inphi’s products, Inphi’s ability to compete,
Inphi’s ability to rapidly develop new technology and introduce new
products, Inphi’s ability to safeguard its intellectual property,
Inphi’s ability to qualify for tax holidays and incentives, trends
in the semiconductor industry and fluctuations in general economic
conditions. In addition, actual results could differ materially due
to changes in tax rates or tax benefits available, changes in
government regulation, changes in claims that may or may not be
asserted, as well as changes in pending litigation. For a
discussion of these and other related risks, please refer to
Inphi’s recent SEC filings, including its Annual Report on Form
10-K for the year ended December 31, 2017, which are available on
the SEC’s website at www.sec.gov. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date thereof. Inphi undertakes no obligation
to update forward-looking statements for any reason, except as
required by law, even as new information becomes available or other
events occur in the future.
Inphi, the Inphi logo and Think fast are registered trademarks
of Inphi Corporation. All other trademarks used herein are the
property of their respective owners.
Corporate Contact:Kim
MarkleInphi408-217-7329kmarkle@inphi.com
Investor Contact:Deborah
Stapleton650-815-1239deb@stapleton.com
| INPHI CORPORATION |
| CONSOLIDATED STATEMENTS OF
OPERATIONS |
| (in thousands of dollars, except share and per share
amounts) |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| Revenue |
$ |
86,531 |
|
$ |
85,683 |
|
$ |
294,490 |
|
$ |
348,201 |
|
| Cost of revenue |
|
37,005 |
|
|
32,599 |
|
|
129,345 |
|
|
151,698 |
|
| |
|
|
|
|
|
|
|
|
| Gross margin |
|
49,526 |
|
|
53,084 |
|
|
165,145 |
|
|
196,503 |
|
| |
|
|
|
|
|
|
|
|
| Operating
expenses: |
|
|
|
|
|
|
|
|
| Research
and development |
|
40,624 |
|
|
41,965 |
|
|
167,924 |
|
|
200,539 |
|
| Sales and
marketing |
|
10,608 |
|
|
10,801 |
|
|
43,080 |
|
|
42,381 |
|
| General
and administrative |
|
6,535 |
|
|
5,605 |
|
|
28,302 |
|
|
23,782 |
|
| |
|
|
|
|
|
|
|
|
| Total operating
expenses |
|
57,767 |
|
|
58,371 |
|
|
239,306 |
|
|
266,702 |
|
| |
|
|
|
|
|
|
|
|
| Loss from
operations |
|
(8,241 |
) |
|
(5,287 |
) |
|
(74,161 |
) |
|
(70,199 |
) |
| |
|
|
|
|
|
|
|
|
| Interest expense, net
of other income |
|
(13,195 |
) |
|
(6,428 |
) |
|
(29,801 |
) |
|
(25,881 |
) |
| |
|
|
|
|
|
|
|
|
| Loss from operations
before income taxes |
|
(21,436 |
) |
|
(11,715 |
) |
|
(103,962 |
) |
|
(96,080 |
) |
| Provision (benefit) for
income taxes |
|
195 |
|
|
(11,817 |
) |
|
(8,211 |
) |
|
(21,176 |
) |
| |
|
|
|
|
|
|
|
|
| Net income (loss) |
$ |
(21,631 |
) |
$ |
102 |
|
$ |
(95,751 |
) |
$ |
(74,904 |
) |
| |
|
|
|
|
|
|
|
|
| Earnings per
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.49 |
) |
$ |
- |
|
$ |
(2.19 |
) |
$ |
(1.78 |
) |
|
Diluted |
$ |
(0.49 |
) |
$ |
- |
|
$ |
(2.19 |
) |
$ |
(1.78 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Weighted-average shares
used in computing earnings per share: |
|
|
|
|
|
|
|
|
|
Basic |
|
44,152,932 |
|
|
42,595,179 |
|
|
43,690,581 |
|
|
42,165,213 |
|
|
Diluted |
|
44,152,932 |
|
|
44,335,639 |
|
|
43,690,581 |
|
|
42,165,213 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents details of stock-based compensation
expense included in each functional line item in the consolidated
statements of operations above:
| |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| |
|
(in thousands of dollars) |
|
(in thousands of dollars) |
| |
|
(Unaudited) |
|
(Unaudited) |
| Cost of revenue |
$ |
717 |
$ |
391 |
$ |
2,527 |
$ |
2,045 |
| Research and
development |
|
9,544 |
|
7,887 |
|
37,397 |
|
28,846 |
| Sales and
marketing |
|
3,285 |
|
2,292 |
|
13,470 |
|
8,340 |
| General and
administrative |
|
2,829 |
|
1,895 |
|
10,490 |
|
5,602 |
| |
|
|
|
|
|
|
|
|
| |
$ |
16,375 |
$ |
12,465 |
$ |
63,884 |
$ |
44,833 |
| |
|
|
|
|
|
|
|
|
| INPHI CORPORATION |
| CONSOLIDATED BALANCE SHEETS |
| (in thousands of dollars) |
| (Unaudited) |
| |
|
December 31,2018 |
|
December 31,2017 |
|
Assets |
|
|
|
|
| Current assets: |
|
|
|
|
| Cash and cash
equivalents |
$ |
172,018 |
|
$ |
163,450 |
|
|
Short-term investments in marketable securities |
|
235,339 |
|
|
241,737 |
|
| Accounts
receivable, net |
|
61,271 |
|
|
67,993 |
|
|
Inventories |
|
33,052 |
|
|
31,721 |
|
| Prepaid
expenses and other current assets |
|
9,600 |
|
|
12,208 |
|
| Total
current assets |
|
511,280 |
|
|
517,109 |
|
| |
|
|
|
|
| Property and equipment,
net |
|
70,740 |
|
|
60,344 |
|
| Goodwill |
|
104,502 |
|
|
104,502 |
|
| Identifiable intangible
assets |
|
180,447 |
|
|
222,933 |
|
| Other noncurrent
assets |
|
22,904 |
|
|
12,618 |
|
| Total assets |
$ |
889,873 |
|
$ |
917,506 |
|
| |
|
|
|
|
| Liabilities and
Stockholders’ Equity |
|
|
|
|
| |
|
|
|
|
| Current
liabilities: |
|
|
|
|
| Accounts
payable |
$ |
15,891 |
|
$ |
14,721 |
|
| Accrued
expenses and other current liabilities |
|
48,552 |
|
|
45,326 |
|
| |
|
|
|
|
| Total
current liabilities |
|
64,443 |
|
|
60,047 |
|
| |
|
|
|
|
| Convertible debt |
|
447,825 |
|
|
421,431 |
|
| Other liabilities |
|
10,911 |
|
|
24,627 |
|
| Total
liabilities |
|
523,179 |
|
|
506,105 |
|
| |
|
|
|
|
| Stockholders’
equity: |
|
|
|
|
| Common
stock |
|
44 |
|
|
43 |
|
|
Additional paid-in capital |
|
536,157 |
|
|
484,934 |
|
|
Accumulated deficit |
|
(169,896 |
) |
|
(74,145 |
) |
|
Accumulated other comprehensive income |
|
389 |
|
|
569 |
|
| Total stockholders’
equity |
|
366,694 |
|
|
411,401 |
|
| |
|
|
|
|
| Total liabilities and
stockholders’ equity |
$ |
889,873 |
|
$ |
917,506 |
|
| |
|
|
|
|
|
|
INPHI
CORPORATIONRECONCILIATION OF GAAP TO NON-GAAP
MEASURES(in thousands of dollars, except share and per
share amounts)
To supplement the financial data presented on a GAAP basis,
Inphi Corporation (the “Company”) discloses certain non-GAAP
financial measures, which exclude stock-based compensation, legal,
transition costs and other expenses, purchase price fair value
adjustments related to acquisitions, impairment of certain
intangibles and investments, restructuring expenses, non-cash
interest expense related to convertible debt, unrealized gain or
loss on equity investments, loss on claim settlement and deferred
tax asset valuation allowance. These non-GAAP financial
measures are not in accordance with GAAP. These results should only
be used to evaluate the Company’s results of operations in
conjunction with the corresponding GAAP measures. The Company
believes that its non-GAAP financial information provides useful
information to management and investors regarding financial and
business trends relating to its financial condition and results of
operations because it excludes charges or benefits that management
considers to be outside of the Company’s core operating results.
The Company believes that the non-GAAP measures of gross
margin, income from operations, net income and earnings per share,
in combination with the Company’s financial results calculated in
accordance with GAAP, provide investors with additional perspective
and a more meaningful understanding of the Company’s ongoing
operating performance. In addition, the Company’s management uses
these non-GAAP measures to review and assess the financial
performance of the Company, to determine executive officer
incentive compensation and to plan and forecast performance in
future periods. The Company’s non-GAAP measurements are not
prepared in accordance with GAAP, and are not an alternative to
GAAP financial information, and may be calculated differently than
non-GAAP financial information disclosed by other companies.
| RECONCILIATION OF GAAP NET INCOME TO NON-GAAP
NET INCOME |
|
| (in thousands of dollars, except share and per share
amounts) |
|
| (Unaudited) |
|
| |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
| |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
| GAAP gross
margin to Non-GAAP gross margin |
|
|
|
|
|
|
|
|
|
| GAAP gross margin |
$ |
49,526 |
|
$ |
53,084 |
|
$ |
165,145 |
|
$ |
196,503 |
|
|
| Adjustments to GAAP
gross margin: |
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
717 |
|
(a) |
391 |
|
(a) |
2,527 |
|
(a) |
2,045 |
|
(a) |
|
Acquisition related expenses |
|
- |
|
|
20 |
|
(b) |
3 |
|
(b) |
143 |
|
(b) |
|
Amortization of inventory step-up |
|
- |
|
(c) |
- |
|
(c) |
1,166 |
|
(c) |
9,304 |
|
(c) |
|
Amortization of intangibles |
|
9,724 |
|
(d) |
6,752 |
|
(d) |
32,846 |
|
(d) |
28,502 |
|
(d) |
|
Depreciation on step-up values of fixed assets |
|
(12 |
) |
(e) |
(17 |
) |
(e) |
(48 |
) |
(e) |
(5 |
) |
(e) |
|
Impairment of certain developed technology |
|
- |
|
|
- |
|
|
- |
|
|
10,174 |
|
(f) |
|
Restructuring expenses |
|
- |
|
|
- |
|
|
106 |
|
(g) |
- |
|
|
| Non-GAAP gross
margin |
$ |
59,955 |
|
$ |
60,230 |
|
$ |
201,745 |
|
$ |
246,666 |
|
|
| |
|
|
|
|
|
|
|
|
|
| GAAP operating
expenses to Non-GAAP operating expenses |
|
|
|
|
|
|
|
|
|
| GAAP research and
development |
$ |
40,624 |
|
$ |
41,965 |
|
$ |
167,924 |
|
$ |
200,539 |
|
|
| Adjustments to GAAP
research and development: |
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
(9,544 |
) |
(a) |
(7,887 |
) |
(a) |
(37,397 |
) |
(a) |
(28,846 |
) |
(a) |
|
Acquisition related expenses |
|
- |
|
|
(367 |
) |
(b) |
(607 |
) |
(b) |
(1,839 |
) |
(b) |
|
Depreciation on step-up values of fixed assets |
|
(109 |
) |
(e) |
(216 |
) |
(e) |
(402 |
) |
(e) |
(767 |
) |
(e) |
|
Impairment of in-process research and development |
|
- |
|
|
- |
|
|
- |
|
|
(36,840 |
) |
(f) |
|
Restructuring expenses |
|
- |
|
|
- |
|
|
(885 |
) |
(g) |
- |
|
|
| Non-GAAP research and
development |
$ |
30,971 |
|
$ |
33,495 |
|
$ |
128,633 |
|
$ |
132,247 |
|
|
| |
|
|
|
|
|
|
|
|
|
| GAAP sales and
marketing |
$ |
10,608 |
|
$ |
10,801 |
|
$ |
43,080 |
|
$ |
42,381 |
|
|
| Adjustments to GAAP
sales and marketing: |
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
(3,285 |
) |
(a) |
(2,292 |
) |
(a) |
(13,470 |
) |
(a) |
(8,340 |
) |
(a) |
|
Acquisition related expenses |
|
- |
|
|
(179 |
) |
(b) |
(259 |
) |
(b) |
(772 |
) |
(b) |
|
Amortization of intangibles |
|
(2,431 |
) |
(d) |
(2,432 |
) |
(d) |
(9,726 |
) |
(d) |
(9,725 |
) |
(d) |
|
Depreciation on step-up values of fixed assets |
|
(4 |
) |
(e) |
(28 |
) |
(e) |
(64 |
) |
(e) |
(103 |
) |
(e) |
|
Restructuring expenses |
|
- |
|
|
- |
|
|
(367 |
) |
(g) |
- |
|
|
| Non-GAAP sales and
marketing |
$ |
4,888 |
|
$ |
5,870 |
|
$ |
19,194 |
|
$ |
23,441 |
|
|
| |
|
|
|
|
|
|
|
|
|
| GAAP general and
administrative |
$ |
6,535 |
|
$ |
5,605 |
|
$ |
28,302 |
|
$ |
23,782 |
|
|
| Adjustments to GAAP
general and administrative: |
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
(2,829 |
) |
(a) |
(1,895 |
) |
(a) |
(10,490 |
) |
(a) |
(5,602 |
) |
(a) |
|
Acquisition related expenses |
|
- |
|
|
(3 |
) |
(b) |
(6 |
) |
(b) |
(756 |
) |
(b) |
|
Amortization of intangibles |
|
(116 |
) |
(d) |
(116 |
) |
(d) |
(464 |
) |
(d) |
(464 |
) |
(d) |
|
Depreciation on step-up values of fixed assets |
|
(6 |
) |
(e) |
67 |
|
(e) |
(56 |
) |
(e) |
279 |
|
(e) |
|
Restructuring expenses |
|
- |
|
|
- |
|
|
(133 |
) |
(g) |
- |
|
|
| Loss on
claim settlement from ClariPhy acquisition |
|
- |
|
|
- |
|
|
(2,250 |
) |
(h) |
- |
|
|
| Non-GAAP general and
administrative |
$ |
3,584 |
|
$ |
3,658 |
|
$ |
14,903 |
|
$ |
17,239 |
|
|
| Non-GAAP total
operating expenses |
$ |
39,443 |
|
$ |
43,023 |
|
$ |
162,730 |
|
$ |
172,927 |
|
|
| Non-GAAP income from
operations |
$ |
20,512 |
|
$ |
17,207 |
|
$ |
39,015 |
|
$ |
73,739 |
|
|
| |
|
|
|
|
|
|
|
|
|
| GAAP net income
(loss) to Non-GAAP net income |
|
|
|
|
|
|
|
|
|
| GAAP net income (loss)
to Non-GAAP net income |
$ |
(21,631 |
) |
$ |
102 |
|
$ |
(95,751 |
) |
$ |
(74,904 |
) |
|
| Adjusting items to GAAP
net income (loss): |
|
|
|
|
|
|
|
|
|
| Operating
expenses related to stock-based compensation expense |
|
16,375 |
|
(a) |
12,465 |
|
(a) |
63,884 |
|
(a) |
44,833 |
|
(a) |
|
Acquisition related expenses |
|
- |
|
|
569 |
|
(b) |
875 |
|
(b) |
3,510 |
|
(b) |
|
Amortization of inventory fair value step-up |
|
- |
|
|
- |
|
(c) |
1,166 |
|
(c) |
9,304 |
|
(c) |
|
Amortization of intangibles related to purchase price |
|
12,271 |
|
(d) |
9,300 |
|
(d) |
43,036 |
|
(d) |
38,691 |
|
(d) |
|
Depreciation on step-up values of fixed assets |
|
107 |
|
(e) |
160 |
|
(e) |
474 |
|
(e) |
586 |
|
(e) |
|
Impairment of certain intangibles from ClariPhy acquisition |
|
- |
|
|
- |
|
|
- |
|
|
47,014 |
|
(f) |
|
Restructuring expenses |
|
- |
|
|
- |
|
|
1,491 |
|
(g) |
- |
|
|
| Loss on
claim settlement from ClariPhy acquisition |
|
- |
|
|
- |
|
|
2,250 |
|
(h) |
- |
|
|
| Loss on
retirement of certain property and equipment from acquisitions |
|
- |
|
|
- |
|
|
66 |
|
(i) |
77 |
|
(i) |
|
Unrealized loss (gain) on equity investment |
|
(66 |
) |
(j) |
- |
|
|
(2,440 |
) |
(j) |
- |
|
|
|
Impairment of investment |
|
7,000 |
|
(k) |
- |
|
|
7,000 |
|
(k) |
- |
|
|
| Accretion
and amortization expense on convertible debt |
|
6,828 |
|
(l) |
6,356 |
|
(l) |
26,394 |
|
(l) |
24,574 |
|
(l) |
| Valuation
allowance and tax effect of the adjustments above from GAAP to
non-GAAP |
|
(354 |
) |
(m) |
(12,723 |
) |
(m) |
(9,635 |
) |
(m) |
(26,523 |
) |
(m) |
| Non-GAAP net
income |
$ |
20,530 |
|
$ |
16,229 |
|
$ |
38,810 |
|
$ |
67,162 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Shares used in
computing non-GAAP basic earnings per share |
|
44,152,932 |
|
|
42,595,179 |
|
|
43,690,581 |
|
|
42,165,213 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Shares used in
computing non-GAAP diluted earnings per share before
offsetting shares from call option |
|
45,516,402 |
|
|
44,335,639 |
|
|
44,986,718 |
|
|
44,524,224 |
|
|
| Offsetting shares from
call option |
|
- |
|
|
- |
|
|
- |
|
|
(201,291 |
) |
|
| Shares used in
computing non-GAAP diluted earnings per share |
|
45,516,402 |
|
|
44,335,639 |
|
|
44,986,718 |
|
|
44,322,933 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Non-GAAP earnings per
share: |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.46 |
|
$ |
0.38 |
|
$ |
0.89 |
|
$ |
1.59 |
|
|
|
Diluted |
$ |
0.45 |
|
$ |
0.37 |
|
$ |
0.86 |
|
$ |
1.52 |
|
|
| |
|
|
|
|
|
|
|
|
|
| GAAP gross margin as a
% of revenue |
|
57.2 |
% |
|
62.0 |
% |
|
56.1 |
% |
|
56.4 |
% |
|
| Stock-based
compensation |
|
0.8 |
% |
|
0.5 |
% |
|
0.9 |
% |
|
0.6 |
% |
|
| Amortization of
inventory fair value step-up and intangibles |
|
11.3 |
% |
|
7.8 |
% |
|
11.5 |
% |
|
13.8 |
% |
|
| Non-GAAP gross margin
as a % of revenue |
|
69.3 |
% |
|
70.3 |
% |
|
68.5 |
% |
|
70.8 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
- Reflects the stock-based compensation expense recorded relating
to stock based awards. The Company excludes this item when it
evaluates the continuing operational performance of the Company as
management believes this GAAP measure is not indicative of its core
operating performance.
- Reflects the legal, transition costs and other expenses related
to acquisition. The transition costs also include short-term
cash retention bonus payments to ClariPhy employees that were part
of the purchase agreement when the Company acquired ClariPhy.
The Company excludes this item when it evaluates the continuing
operational performance of the Company as management believes this
GAAP measure is not indicative of its core operating
performance.
- Reflects the cost of goods sold fair value amortization of
inventory step-up related to acquisitions. The Company
excludes these items when it evaluates the continuing operational
performance of the Company as management believes this GAAP measure
is not indicative of its core operating performance.
- Reflects the fair value amortization of intangibles related to
acquisitions. The Company excludes these items when it
evaluates the continuing operational performance of the Company as
management believes this GAAP measure is not indicative of its core
operating performance.
- Reflects the fair value depreciation of fixed assets related to
acquisitions. The Company excludes these items when it
evaluates the continuing operational performance of the Company as
management believes this GAAP measure is not indicative of its core
operating performance.
- Reflects the impairment of in-process research and development
and developed technology from the ClariPhy acquisition.
The Company excludes these items when it evaluates the continuing
operational performance of the Company as management believes this
GAAP measure is not indicative of its core operating
performance.
- Reflects restructuring expenses incurred. The Company
excludes this item when it evaluates the continuing operational
performance of the Company as management believes this GAAP measure
is not indicative of its core operating performance.
- Reflects the loss on settlement of certain customer claims from
the ClariPhy acquisition. The Company excludes these items
when it evaluates the continuing operational performance of the
Company as management believes this GAAP measure is not indicative
of its core operating performance.
- Reflects the loss on disposal of certain property and equipment
from the acquisitions. The Company excludes these items when
it evaluates the continuing operational performance of the Company
as management believes this GAAP measure is not indicative of its
core operating performance.
- Reflects the unrealized gain or loss on equity
investments. The Company excludes these items when it
evaluates the continuing operational performance of the Company as
management believes this GAAP measure is not indicative of its core
operating performance.
- Reflects the impairment of non-marketable equity
investment. The Company excludes these items when it
evaluates the continuing operational performance of the Company as
management believes this GAAP measure is not indicative of its core
operating performance
- Reflects the accretion and amortization expense on convertible
debt. The Company excludes these items when it evaluates the
continuing operational performance of the Company as management
believes this GAAP measure is not indicative of its core operating
performance.
- Reflects the change in valuation allowance and delta in interim
period tax allocation from GAAP to non-GAAP related to non-GAAP
adjustments. The Company excludes this item when it evaluates the
continuing operational performance of the Company as management
believes this GAAP measure is not indicative of its core operating
performance.
| INPHI CORPORATION |
| RECONCILIATION OF GAAP TO NON-GAAP MEASURES -
FIRST QUARTER 2019 GUIDANCE |
| (in thousands of dollars, except share and per share
amounts) |
| (Unaudited) |
| |
|
|
|
|
| |
|
Three Months Ending March 31,
2019 |
| |
|
High |
|
Low |
| Estimated GAAP net
loss |
$ |
(21,800 |
) |
$ |
(22,800 |
) |
| Adjusting items to
estimated GAAP net loss: |
|
|
|
|
| Operating
expenses related to stock-based compensation expense |
|
16,300 |
|
|
16,700 |
|
|
Amortization of intangibles |
|
12,200 |
|
|
12,200 |
|
|
Amortization of convertible debt interest cost |
|
6,800 |
|
|
6,800 |
|
| Tax
effect of GAAP to non-GAAP adjustments |
|
(260 |
) |
|
(240 |
) |
| Estimated non-GAAP net
income |
$ |
13,240 |
|
$ |
12,660 |
|
| |
|
|
|
|
| Shares used in
computing estimated non-GAAP diluted earnings per share |
|
46,130,000 |
|
|
46,130,000 |
|
| |
|
|
|
|
| Estimated non-GAAP
diluted earnings per share |
$ |
0.29 |
|
$ |
0.27 |
|
| |
|
|
|
|
| |
|
|
|
|
| Revenue |
$ |
82,000 |
|
$ |
80,000 |
|
| |
|
|
|
|
| GAAP gross margin |
$ |
47,400 |
|
$ |
45,175 |
|
| as a % of
revenue |
|
57.8 |
% |
|
56.5 |
% |
| Adjusting items to
estimated GAAP gross margin: |
|
|
|
|
|
Stock-based compensation |
|
700 |
|
|
700 |
|
|
Amortization of intangibles |
|
9,700 |
|
|
9,700 |
|
| Estimated non-GAAP
gross margin |
$ |
57,800 |
|
$ |
55,575 |
|
| as a % of
revenue |
|
70.5 |
% |
|
69.5 |
% |
| |
|
|
|
|
|
|
Inphi (NASDAQ:IPHI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Inphi (NASDAQ:IPHI)
Historical Stock Chart
From Jul 2023 to Jul 2024
