Inphi Corporation (NYSE: IPHI), a leader in high-speed data
movement interconnects, today announced financial results for its
third quarter ended September 30, 2019.
GAAP Results
Revenue in the third quarter of 2019 was a record $94.2 million
on a U.S. generally accepted accounting principles (GAAP) basis, up
20.8% year-over-year, compared with $78.0 million in the third
quarter of 2018. The increase was due to higher demand for long
haul, metro and datacenter products.
Gross margin under GAAP in the third quarter of 2019 was 57.8%,
compared with 55.7% in the third quarter of 2018. The increase was
mainly due to product and revenue mix.
GAAP operating loss in the third quarter of 2019 was $10.9
million or (11.6%) of revenue, compared to GAAP operating loss in
the third quarter of 2018 of $16.0 million or (20.6%) of revenue.
The decrease in operating loss was mainly due to higher gross
profit, partially offset by higher operating expenses.
GAAP net loss for the third quarter of 2019 was $16.2 million or
($0.36) per diluted common share, compared with $22.7 million or
($0.52) per diluted common share in the third quarter of 2018.
Inphi reports gross profit, 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 gross
profit, operating expenses, operating income, 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 third quarter of 2019
was 70.2%, compared with 69.4% in the third quarter of 2018.
The increase was due to a change in product and revenue mix.
Non-GAAP operating income in the third quarter of 2019 was $21.4
million, compared with non-GAAP operating income of $13.5 million
in the third quarter of 2018. The increase is primarily due to
higher gross profit, partially offset by higher operating
expenses.
Non-GAAP net income in the third quarter of 2019 was $21.5
million, or $0.45 per diluted common share. This compares with
non-GAAP net income of $13.7 million, or $0.30 per diluted common
share in the third quarter of 2018.
“We are very pleased to have exceeded the high-end of our
revenue and EPS guidance in Q3, delivering record results driven by
strength in both Cloud and Telecom,” said Ford Tamer, President and
CEO of Inphi Corporation. “The 50% year-on-year non-GAAP EPS
growth in Q3, based on 21% year-on-year revenue growth,
demonstrates the leverage in our operating model as we execute on
our customer growth strategy.”
Nine Months 2019 ResultsRevenue in the nine
months ended September 30, 2019 was $262.7 million, compared with
$208.0 million in the nine months ended September 30, 2018. GAAP
net loss in the nine months ended September 30, 2019 was $59.5
million, or ($1.32) per diluted common share, on approximately 45.1
million diluted weighted average common shares outstanding. This
compares with GAAP net loss of $74.1 million, or ($1.70) per
diluted common share, on approximately 43.5 million diluted
weighted average common shares outstanding in the nine months ended
September 30, 2018.
Non-GAAP net income in the nine months ended September 30, 2019
was $53.5 million, or $1.14 per diluted common share, on
approximately 47.1 million non-GAAP diluted weighted average common
shares outstanding. This compares with non-GAAP net income of $18.3
million in the nine months ended September 30, 2018, or $0.41 per
diluted common share, on approximately 44.8 million diluted
weighted average common shares outstanding.
Business OutlookThe following statements are
based on the Company’s current expectations for the fourth 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 Q4 2019 is expected to be in the range of $97.8
million to $101.8 million.
- GAAP gross margin is expected to be approximately 57.5% to
59.0%.
- Non-GAAP gross margin is expected to be approximately 69.5% to
70.5%.
- Stock-based compensation expense is expected to be in the range
of $20.0 million to $21.0 million.
- GAAP net loss is expected to be in range between $15.6 million
to $21.4 million, or ($0.34) to ($0.47) per basic share, based on
45.8 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 $19.3 million to $24.2 million, or $0.40 to $0.50 per
weighted average diluted share, based on 48.8 million estimated
non-GAAP weighted average 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, President and Chief Executive
Officer, and John Edmunds, Chief Financial Officer, to discuss the
third quarter 2019 results.
The call can be accessed by dialing (765) 507-2591, participant
passcode: 5069408. 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://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
StatementsThese forward-looking statements may be
identified by terms such as outlook, believe, expect, may, will,
provide, continue, could, and should, and the negative of these
terms or other similar expressions. These statements include
statements relating to: the Company’s business outlook and current
expectations for 2019, including with respect to the fourth 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, success
of our growth strategy, and increase in market share, increasing
demand in Q4, growth inside data centers, success of new product
introductions, customer relationships and design wins and benefits
of using non-GAAP financial measures. 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:
the Company’s ability to sustain profitable operations due to its
history of losses and accumulated deficit; dependence on a limited
number of customers for a substantial portion of revenue and lack
of long-term purchase commitments from our customers; product
defects; risk related to intellectual property matters, lengthy
sales cycle and competitive selection process; lengthy and
expensive qualification processes; ability to develop new or
enhanced products in a timely manner; development of target
markets; market demand for the Company’s products; reliance on
third parties to manufacture, assemble and test products; ability
to compete; and other risks inherent in fabless semiconductor
businesses. In addition, actual results could differ materially due
to changes in tax rates or tax benefits available, changes in
demand, 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 Corporation’s recent SEC filings, including
its Annual Report on Form 10-K for the year ended December 31,
2018, 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 Corporation 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.
| INPHI
CORPORATION |
| CONSOLIDATED
STATEMENTS OF OPERATIONS |
| (in thousands of
dollars, except share and per share amounts) |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
| |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
| Revenue |
$ |
94,231 |
|
$ |
78,009 |
|
$ |
262,739 |
|
$ |
207,959 |
|
| Cost of
revenue |
|
39,749 |
|
|
34,547 |
|
|
111,517 |
|
|
92,340 |
|
| |
|
|
|
|
|
|
|
|
| Gross
profit |
|
54,482 |
|
|
43,462 |
|
|
151,222 |
|
|
115,619 |
|
| |
|
|
|
|
|
|
|
|
| Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research and development |
|
44,895 |
|
|
41,558 |
|
|
133,999 |
|
|
127,300 |
|
| Sales
and marketing |
|
12,311 |
|
|
10,819 |
|
|
35,344 |
|
|
32,472 |
|
|
General and administrative |
|
8,165 |
|
|
7,134 |
|
|
22,478 |
|
|
21,767 |
|
| |
|
|
|
|
|
|
|
|
| Total
operating expenses |
|
65,371 |
|
|
59,511 |
|
|
191,821 |
|
|
181,539 |
|
| |
|
|
|
|
|
|
|
|
| Loss from
operations |
|
(10,889 |
) |
|
(16,049 |
) |
|
(40,599 |
) |
|
(65,920 |
) |
| |
|
|
|
|
|
|
|
|
| Interest
expense, net of other income |
|
(4,672 |
) |
|
(6,819 |
) |
|
(17,652 |
) |
|
(16,606 |
) |
| |
|
|
|
|
|
|
|
|
| Loss from
operations before income taxes |
|
(15,561 |
) |
|
(22,868 |
) |
|
(58,251 |
) |
|
(82,526 |
) |
| Provision
(benefit) for income taxes |
|
619 |
|
|
(203 |
) |
|
1,252 |
|
|
(8,406 |
) |
| |
|
|
|
|
|
|
|
|
| Net
loss |
$ |
(16,180 |
) |
$ |
(22,665 |
) |
$ |
(59,503 |
) |
$ |
(74,120 |
) |
| |
|
|
|
|
|
|
|
|
| Earnings per
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.36 |
) |
$ |
(0.52 |
) |
$ |
(1.32 |
) |
$ |
(1.70 |
) |
|
Diluted |
$ |
(0.36 |
) |
$ |
(0.52 |
) |
$ |
(1.32 |
) |
$ |
(1.70 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computing |
|
|
|
|
|
|
|
|
|
earnings per share: |
|
|
|
|
|
|
|
|
|
Basic |
|
45,517,862 |
|
|
43,934,598 |
|
|
45,057,539 |
|
|
43,535,033 |
|
|
Diluted |
|
45,517,862 |
|
|
43,934,598 |
|
|
45,057,539 |
|
|
43,535,033 |
|
| |
|
|
|
|
|
|
|
|
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 September 30, |
|
Nine Months Ended September 30, |
| |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
| |
|
(in thousands of
dollars) |
|
(in thousands of
dollars) |
| |
|
(Unaudited) |
|
(Unaudited) |
| Cost of
revenue |
$ |
1,953 |
|
$ |
636 |
|
$ |
4,432 |
|
$ |
1,810 |
|
| Research and
development |
|
10,297 |
|
|
9,614 |
|
|
30,954 |
|
|
27,853 |
|
| Sales and
marketing |
|
4,312 |
|
|
3,702 |
|
|
11,729 |
|
|
10,185 |
|
| General and
administrative |
|
3,316 |
|
|
2,788 |
|
|
9,482 |
|
|
7,661 |
|
| |
|
|
|
|
|
|
|
|
| |
$ |
19,878 |
|
$ |
16,740 |
|
$ |
56,597 |
|
$ |
47,509 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
| INPHI
CORPORATION |
| CONSOLIDATED
BALANCE SHEETS |
| (in thousands of
dollars) |
| (Unaudited) |
| |
|
September 30, 2019 |
|
December 31, 2018 |
|
Assets |
|
|
|
|
| Current
assets: |
|
|
|
|
| Cash
and cash equivalents |
$ |
151,118 |
|
$ |
172,018 |
|
|
Short-term investments in marketable securities |
|
273,643 |
|
|
235,339 |
|
|
Accounts receivable, net |
|
54,829 |
|
|
61,271 |
|
|
Inventories |
|
56,715 |
|
|
33,052 |
|
|
Prepaid expenses and other current assets |
|
7,011 |
|
|
9,600 |
|
| Total
current assets |
|
543,316 |
|
|
511,280 |
|
| |
|
|
|
|
| Property and
equipment, net |
|
79,872 |
|
|
70,740 |
|
|
Goodwill |
|
104,502 |
|
|
104,502 |
|
| Identifiable
intangible assets, net |
|
142,165 |
|
|
180,447 |
|
| Right of use
asset, net |
|
10,823 |
|
|
- |
|
| Other
noncurrent assets |
|
31,025 |
|
|
22,904 |
|
| Total
assets |
$ |
911,703 |
|
$ |
889,873 |
|
| |
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
| |
|
|
|
|
| Current
liabilities: |
|
|
|
|
|
Accounts payable |
$ |
27,568 |
|
$ |
15,891 |
|
|
Accrued expenses and other current liabilities |
|
39,326 |
|
|
43,120 |
|
|
Deferred revenue |
|
4,390 |
|
|
5,432 |
|
| |
|
|
|
|
| Total
current liabilities |
|
71,284 |
|
|
64,443 |
|
| |
|
|
|
|
| Convertible
debt |
|
468,840 |
|
|
447,825 |
|
| Other
liabilities |
|
23,837 |
|
|
10,911 |
|
| Total
liabilities |
|
563,961 |
|
|
523,179 |
|
| |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
Common stock |
|
46 |
|
|
44 |
|
|
Additional paid-in capital |
|
575,456 |
|
|
536,157 |
|
|
Accumulated deficit |
|
(229,399 |
) |
|
(169,896 |
) |
|
Accumulated other comprehensive income |
|
1,639 |
|
|
389 |
|
| Total
stockholders’ equity |
|
347,742 |
|
|
366,694 |
|
| |
|
|
|
|
| Total
liabilities and stockholders’ equity |
$ |
911,703 |
|
$ |
889,873 |
|
| |
|
|
|
|
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, 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, loss on claim settlements, non-cash interest expense
related to convertible debt, unrealized gain or loss on equity
investments 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 September 30, |
|
Nine Months Ended September 30, |
|
| |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
| GAAP
gross profit to Non-GAAP gross profit |
|
|
|
|
|
|
|
|
|
| GAAP gross
profit |
$ |
54,482 |
|
$ |
43,462 |
|
$ |
151,222 |
|
$ |
115,619 |
|
|
| Adjustments
to GAAP gross profit: |
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
1,953 |
|
(a) |
636 |
|
(a) |
4,432 |
|
(a) |
1,810 |
|
(a) |
|
Acquisition related expenses |
|
- |
|
|
- |
|
|
- |
|
|
3 |
|
(b) |
|
Amortization of inventory step-up |
|
- |
|
|
302 |
|
(c) |
- |
|
|
1,166 |
|
(c) |
|
Amortization of intangibles |
|
9,724 |
|
(d) |
9,724 |
|
(d) |
29,172 |
|
(d) |
23,122 |
|
(d) |
|
Depreciation on step-up values of fixed assets |
|
(3 |
) |
(e) |
(10 |
) |
(e) |
(27 |
) |
(e) |
(36 |
) |
(e) |
|
Restructuring expenses |
|
- |
|
|
- |
|
|
- |
|
|
106 |
|
(f) |
| Non-GAAP
gross profit |
$ |
66,156 |
|
$ |
54,114 |
|
$ |
184,799 |
|
$ |
141,790 |
|
|
| |
|
|
|
|
|
|
|
|
|
| GAAP
operating expenses to non-GAAP operating expenses |
|
|
|
|
|
|
|
|
|
| GAAP
research and development |
$ |
44,895 |
|
$ |
41,558 |
|
$ |
133,999 |
|
$ |
127,300 |
|
|
| Adjustments
to GAAP research and development: |
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
(10,297 |
) |
(a) |
(9,614 |
) |
(a) |
(30,954 |
) |
(a) |
(27,853 |
) |
(a) |
|
Acquisition related expenses |
|
- |
|
|
- |
|
|
- |
|
|
(607 |
) |
(b) |
|
Depreciation on step-up values of fixed assets |
|
(157 |
) |
(e) |
(120 |
) |
(e) |
(354 |
) |
(e) |
(293 |
) |
(e) |
|
Restructuring expenses |
|
- |
|
|
- |
|
|
- |
|
|
(885 |
) |
(f) |
| Non-GAAP
research and development |
$ |
34,441 |
|
$ |
31,824 |
|
$ |
102,691 |
|
$ |
97,662 |
|
|
| |
|
|
|
|
|
|
|
|
|
| GAAP sales
and marketing |
$ |
12,311 |
|
$ |
10,819 |
|
$ |
35,344 |
|
$ |
32,472 |
|
|
| Adjustments
to GAAP sales and marketing: |
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
(4,312 |
) |
(a) |
(3,702 |
) |
(a) |
(11,729 |
) |
(a) |
(10,185 |
) |
(a) |
|
Acquisition related expenses |
|
- |
|
|
- |
|
|
- |
|
|
(259 |
) |
(b) |
|
Amortization of intangibles |
|
(2,431 |
) |
(d) |
(2,432 |
) |
(d) |
(7,293 |
) |
(d) |
(7,295 |
) |
(d) |
|
Depreciation on step-up values of fixed assets |
|
(2 |
) |
(e) |
(19 |
) |
(e) |
(7 |
) |
(e) |
(60 |
) |
(e) |
|
Restructuring expenses |
|
- |
|
|
- |
|
|
- |
|
|
(367 |
) |
(f) |
| Non-GAAP
sales and marketing |
$ |
5,566 |
|
$ |
4,666 |
|
$ |
16,315 |
|
$ |
14,306 |
|
|
| |
|
|
|
|
|
|
|
|
|
| GAAP general
and administrative |
$ |
8,165 |
|
$ |
7,134 |
|
$ |
22,478 |
|
$ |
21,767 |
|
|
| Adjustments
to GAAP general and administrative: |
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
(3,316 |
) |
(a) |
(2,788 |
) |
(a) |
(9,482 |
) |
(a) |
(7,661 |
) |
(a) |
|
Acquisition related expenses |
|
- |
|
|
- |
|
|
- |
|
|
(6 |
) |
(b) |
|
Amortization of intangibles |
|
(116 |
) |
(d) |
(116 |
) |
(d) |
(348 |
) |
(d) |
(348 |
) |
(d) |
|
Depreciation on step-up values of fixed assets |
|
(5 |
) |
(e) |
(16 |
) |
(e) |
(14 |
) |
(e) |
(50 |
) |
(e) |
|
Restructuring expenses |
|
- |
|
|
- |
|
|
- |
|
|
(133 |
) |
(f) |
| Loss
on claim settlement from ClariPhy acquisition |
|
- |
|
|
(125 |
) |
(g) |
(400 |
) |
(g) |
(2,250 |
) |
(g) |
| Non-GAAP
general and administrative |
$ |
4,728 |
|
$ |
4,089 |
|
$ |
12,234 |
|
$ |
11,319 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Non-GAAP
total operating expenses |
$ |
44,735 |
|
$ |
40,579 |
|
$ |
131,240 |
|
$ |
123,287 |
|
|
| Non-GAAP
income from operations |
$ |
21,421 |
|
$ |
13,535 |
|
$ |
53,559 |
|
$ |
18,503 |
|
|
| |
|
|
|
|
|
|
|
|
|
| GAAP
net loss to non-GAAP net income |
|
|
|
|
|
|
|
|
|
| GAAP net
loss |
$ |
(16,180 |
) |
$ |
(22,665 |
) |
$ |
(59,503 |
) |
$ |
(74,120 |
) |
|
| Adjusting
items to GAAP net loss: |
|
|
|
|
|
|
|
|
|
|
Operating expenses related to stock-based |
|
|
|
|
|
|
|
|
|
|
compensation expense |
|
19,878 |
|
(a) |
16,740 |
|
(a) |
56,597 |
|
(a) |
47,509 |
|
(a) |
|
Acquisition related expenses |
|
- |
|
|
- |
|
|
- |
|
|
875 |
|
(b) |
|
Amortization of inventory fair value step-up |
|
- |
|
|
302 |
|
(c) |
- |
|
|
1,166 |
|
(c) |
|
Amortization of intangibles related to purchase price |
|
12,271 |
|
(d) |
12,272 |
|
(d) |
36,813 |
|
(d) |
30,765 |
|
(d) |
|
Depreciation on step-up values of fixed assets |
|
161 |
|
(e) |
145 |
|
(e) |
348 |
|
(e) |
367 |
|
(e) |
|
Restructuring expenses |
|
- |
|
|
- |
|
|
- |
|
|
1,491 |
|
(f) |
| Loss
on claim settlement from ClariPhy acquisition |
|
- |
|
|
125 |
|
(g) |
400 |
|
(g) |
2,250 |
|
(g) |
| Loss
on claim settlement from Exactik disposition |
|
- |
|
|
- |
|
|
296 |
|
(h) |
- |
|
|
| Loss
on retirement of certain property and equipment from
acquisitions |
|
7 |
|
(i) |
66 |
|
(i) |
7 |
|
(i) |
66 |
|
(i) |
|
Unrealized loss (gain) on equity investment |
|
(2,152 |
) |
(j) |
482 |
|
(j) |
(2,077 |
) |
(j) |
(2,374 |
) |
(j) |
|
Accretion and amortization expense on convertible debt |
|
7,210 |
|
(k) |
6,713 |
|
(k) |
21,015 |
|
(k) |
19,566 |
|
(k) |
|
Valuation allowance and tax effect of the |
|
|
|
|
|
|
|
|
|
|
adjustments above from GAAP to non-GAAP |
|
297 |
|
(l) |
(494 |
) |
(l) |
(403 |
) |
(l) |
(9,281 |
) |
(l) |
| Non-GAAP net
income |
$ |
21,492 |
|
$ |
13,686 |
|
$ |
53,493 |
|
$ |
18,280 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Shares used
in computing non-GAAP basic earnings per share |
|
45,517,862 |
|
|
43,934,598 |
|
|
45,057,539 |
|
|
43,535,033 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Shares used
in computing non-GAAP diluted earnings per share before offsetting
shares from call option |
|
49,912,318 |
|
|
45,210,493 |
|
|
47,920,275 |
|
|
44,808,725 |
|
|
| Offsetting
shares from call option |
|
1,694,050 |
|
|
- |
|
|
827,059 |
|
|
- |
|
|
| Shares used
in computing non-GAAP diluted earnings per share |
|
48,218,268 |
|
|
45,210,493 |
|
|
47,093,216 |
|
|
44,808,725 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Non-GAAP
earnings per share: |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.47 |
|
$ |
0.31 |
|
$ |
1.19 |
|
$ |
0.42 |
|
|
|
Diluted |
$ |
0.45 |
|
$ |
0.30 |
|
$ |
1.14 |
|
$ |
0.41 |
|
|
| |
|
|
|
|
|
|
|
|
|
| GAAP gross
profit as a % of revenue |
|
57.8 |
% |
|
55.7 |
% |
|
57.6 |
% |
|
55.6 |
% |
|
| Stock-based
compensation |
|
2.1 |
% |
|
0.8 |
% |
|
1.7 |
% |
|
0.9 |
% |
|
| Amortization
of inventory fair value step-up and intangibles |
|
10.3 |
% |
|
12.9 |
% |
|
11.0 |
% |
|
11.7 |
% |
|
| Non-GAAP
gross profit as a % of revenue |
|
70.2 |
% |
|
69.4 |
% |
|
70.3 |
% |
|
68.2 |
% |
|
| |
|
|
|
|
|
|
|
|
|
- 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 merger 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 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 settlement of claim from the Exactik
business disposal. 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 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 -FOURTH QUARTER
2019 GUIDANCE |
| (in thousands of
dollars, except share and per share amounts) |
| (Unaudited) |
| |
|
|
|
|
| |
|
Three Months Ending December 31, 2019 |
|
|
|
High |
|
Low |
| Estimated
GAAP net loss |
$ |
(15,600 |
) |
$ |
(21,450 |
) |
| Adjusting
items to estimated GAAP net loss: |
|
|
|
|
|
Operating expenses related to stock-based |
|
|
|
|
|
compensation expense |
|
20,000 |
|
|
21,000 |
|
|
Amortization of intangibles |
|
12,275 |
|
|
12,275 |
|
|
Amortization of convertible debt interest cost |
|
7,200 |
|
|
7,200 |
|
| Tax
effect of GAAP to non-GAAP adjustments |
|
300 |
|
|
300 |
|
| Estimated
non-GAAP net income |
$ |
24,175 |
|
$ |
19,325 |
|
| |
|
|
|
|
| Shares used
in computing estimated non-GAAP diluted earnings per share |
|
48,830,000 |
|
|
48,830,000 |
|
| |
|
|
|
|
| Estimated
non-GAAP diluted earnings per share |
$ |
0.50 |
|
$ |
0.40 |
|
| |
|
|
|
|
| |
|
|
|
|
| Revenue |
$ |
101,800 |
|
$ |
97,800 |
|
| |
|
|
|
|
| GAAP gross
profit |
$ |
60,062 |
|
$ |
56,235 |
|
| as a
% of revenue |
|
59.0 |
% |
|
57.5 |
% |
| Adjusting
items to estimated GAAP gross profit: |
|
|
|
|
|
Stock-based compensation |
|
2,000 |
|
|
2,000 |
|
| Fixed
assets depreciation step up |
|
(3 |
) |
|
(3 |
) |
|
Amortization of intangibles |
|
9,723 |
|
|
9,723 |
|
| Estimated
non-GAAP gross profit |
$ |
71,782 |
|
$ |
67,955 |
|
| as a
% of revenue |
|
70.5 |
% |
|
69.5 |
% |
| |
|
|
|
|
Corporate Contact:
Kim Markle
408-217-7329
kmarkle@inphi.com
Investor Contact:
Vernon P. Essi, Jr.
408-606-6524
vessi@inphi.com
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