ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 27-0306875 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | x | Accelerated filer | ¨ | ||
Non-accelerated filer | ¨ | (Do not check if a smaller reporting company) | Smaller reporting company | ¨ | |
Emerging growth company | ¨ |
Page No. | |||
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 1. | |||
Item1A. | |||
Item 2. | |||
Item 6. | |||
ITEM 1. | FINANCIAL STATEMENTS |
March 31, 2017 | September 30, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 112,615 | $ | 332,977 | |||
Short term investments | 31,571 | 23,776 | |||||
Accounts receivable (less allowances of $8,064 and $3,279, respectively) | 127,709 | 108,331 | |||||
Inventories | 139,622 | 114,935 | |||||
Income tax receivable | 20,199 | 21,607 | |||||
Assets held for sale | 30,652 | — | |||||
Prepaid and other current assets | 17,805 | 11,318 | |||||
Total current assets | $ | 480,173 | $ | 612,944 | |||
Property and equipment, net | 118,518 | 99,167 | |||||
Goodwill | 309,884 | 120,024 | |||||
Intangible assets, net | 638,877 | 259,602 | |||||
Deferred income taxes | 1,941 | 89,606 | |||||
Other long-term assets | 6,339 | 7,208 | |||||
TOTAL ASSETS | $ | 1,555,732 | $ | 1,188,551 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Current portion of lease payable | $ | 991 | $ | 1,152 | |||
Current portion of long-term debt | 6,051 | 6,051 | |||||
Accounts payable | 34,124 | 30,579 | |||||
Accrued liabilities | 58,062 | 54,368 | |||||
Liabilities held for sale | 6,869 | — | |||||
Total current liabilities | $ | 106,097 | $ | 92,150 | |||
Lease payable, less current portion | 14,036 | 2,463 | |||||
Long-term debt, less current portion | 572,180 | 573,882 | |||||
Warrant liability | 45,648 | 38,253 | |||||
Deferred income taxes | 10,116 | 11,765 | |||||
Other long-term liabilities | 7,537 | 7,254 | |||||
Total liabilities | $ | 755,614 | $ | 725,767 | |||
Stockholders’ equity: | |||||||
Common stock | 64 | 54 | |||||
Treasury stock, at cost | (330 | ) | (330 | ) | |||
Accumulated other comprehensive (loss) income | 3,015 | 9,039 | |||||
Additional paid-in capital | 1,025,953 | 551,509 | |||||
Accumulated deficit | (228,584 | ) | (97,488 | ) | |||
Total stockholders’ equity | $ | 800,118 | $ | 462,784 | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,555,732 | $ | 1,188,551 |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, 2017 | April 1, 2016 | March 31, 2017 | April 1, 2016 | ||||||||||||
Revenue | $ | 186,084 | $ | 133,579 | $ | 337,836 | $ | 249,353 | |||||||
Cost of revenue | 117,220 | 68,054 | 190,477 | 123,510 | |||||||||||
Gross profit | 68,864 | 65,525 | 147,359 | 125,843 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 39,685 | 26,203 | 69,859 | 51,525 | |||||||||||
Selling, general and administrative | 62,327 | 34,617 | 98,822 | 69,303 | |||||||||||
Impairment charges | — | 11,005 | — | 11,005 | |||||||||||
Restructuring charges | 469 | 851 | 1,757 | 1,008 | |||||||||||
Total operating expenses | 102,481 | 72,676 | 170,438 | 132,841 | |||||||||||
Loss from operations | (33,617 | ) | (7,151 | ) | (23,079 | ) | (6,998 | ) | |||||||
Other (expense) income | |||||||||||||||
Warrant liability expense | (2,573 | ) | (4,201 | ) | (7,395 | ) | (19,079 | ) | |||||||
Interest expense, net | (7,374 | ) | (4,408 | ) | (14,724 | ) | (8,754 | ) | |||||||
Other (expense) income | (898 | ) | (81 | ) | (903 | ) | 19 | ||||||||
Total other expense, net | (10,845 | ) | (8,690 | ) | (23,022 | ) | (27,814 | ) | |||||||
Loss before income taxes | (44,462 | ) | (15,841 | ) | (46,101 | ) | (34,812 | ) | |||||||
Income tax expense (benefit) | 89,805 | (3,796 | ) | 90,337 | (5,997 | ) | |||||||||
Loss from continuing operations | (134,267 | ) | (12,045 | ) | (136,438 | ) | (28,815 | ) | |||||||
Income from discontinued operations | 4,136 | 1,396 | 5,342 | 2,595 | |||||||||||
Net loss | $ | (130,131 | ) | $ | (10,649 | ) | $ | (131,096 | ) | $ | (26,220 | ) | |||
Net income (loss) per share: | |||||||||||||||
Basic income (loss) per share: | |||||||||||||||
Loss from continuing operations | $ | (2.21 | ) | $ | (0.23 | ) | $ | (2.38 | ) | $ | (0.54 | ) | |||
Income from discontinued operations | 0.07 | 0.03 | 0.09 | 0.05 | |||||||||||
Loss per share - basic | $ | (2.14 | ) | $ | (0.20 | ) | $ | (2.29 | ) | $ | (0.49 | ) | |||
Diluted income (loss) per share: | |||||||||||||||
Loss from continuing operations | $ | (2.21 | ) | $ | (0.23 | ) | $ | (2.38 | ) | $ | (0.54 | ) | |||
Income from discontinued operations | 0.07 | 0.03 | 0.09 | 0.05 | |||||||||||
Loss per share - diluted | $ | (2.14 | ) | $ | (0.20 | ) | $ | (2.29 | ) | $ | (0.49 | ) | |||
Shares used: | |||||||||||||||
Basic | 60,813 | 53,228 | 57,276 | 53,122 | |||||||||||
Diluted | 60,813 | 53,228 | 57,276 | 53,122 |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, 2017 | April 1, 2016 | March 31, 2017 | April 1, 2016 | ||||||||||||
Net loss | $ | (130,131 | ) | $ | (10,649 | ) | $ | (131,096 | ) | $ | (26,220 | ) | |||
Unrealized gain on short term investments, net of tax | 52 | 73 | 6 | 12 | |||||||||||
Foreign currency translation gain (loss), net of tax | 3,567 | 5,647 | (6,030 | ) | 5,538 | ||||||||||
Other comprehensive loss, net of tax | 3,619 | 5,720 | (6,024 | ) | 5,550 | ||||||||||
Total comprehensive loss | $ | (126,512 | ) | $ | (4,929 | ) | $ | (137,120 | ) | $ | (20,670 | ) |
Accumulated Other Comprehensive Income (Loss) | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Balance at September 30, 2016 | 53,709 | $ | 54 | 23 | $ | (330 | ) | $ | 9,039 | $ | 551,509 | $ | (97,488 | ) | $ | 462,784 | |||||||||||||
Stock options exercises | 45 | — | — | — | — | 268 | — | 268 | |||||||||||||||||||||
Vesting of restricted common stock and units | 540 | — | — | — | — | — | — | — | |||||||||||||||||||||
Issuance of common stock pursuant to employee stock purchase plan | 77 | — | — | — | — | 2,420 | — | 2,420 | |||||||||||||||||||||
Shares repurchased for stock withholdings on restricted stock awards | (214 | ) | — | — | — | — | (10,027 | ) | — | (10,027 | ) | ||||||||||||||||||
Share-based compensation | — | — | — | — | — | 17,731 | — | 17,731 | |||||||||||||||||||||
Shares issued in connection with acquisition | 9,643 | 10 | — | — | — | 465,072 | — | 465,082 | |||||||||||||||||||||
Equity issuance costs | — | — | — | — | — | (1,020 | ) | — | (1,020 | ) | |||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (6,024 | ) | — | — | (6,024 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | — | (131,096 | ) | (131,096 | ) | |||||||||||||||||||
Balance at March 31, 2017 | 63,800 | $ | 64 | 23 | $ | (330 | ) | $ | 3,015 | $ | 1,025,953 | $ | (228,584 | ) | $ | 800,118 |
MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||
Six Months Ended | |||||||
March 31, 2017 | April 1, 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net loss | $ | (131,096 | ) | $ | (26,220 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities (net of acquisitions): | |||||||
Depreciation and intangibles amortization | 40,097 | 34,078 | |||||
Share-based compensation | 17,731 | 13,226 | |||||
Warrant liability expense | 7,395 | 19,079 | |||||
Acquired inventory step-up amortization | 31,373 | 2,084 | |||||
Deferred financing cost amortization | 1,423 | 810 | |||||
Acquisition prepaid compensation amortization | 506 | 3,241 | |||||
Loss on extinguishment of debt | 871 | — | |||||
Gain on disposition of business | (21,770 | ) | (3,750 | ) | |||
Deferred income taxes | 86,123 | (4,569 | ) | ||||
Impairment charges | — | 12,955 | |||||
Other adjustments, net | 4,334 | 298 | |||||
Change in operating assets and liabilities (net of acquisitions): | |||||||
Accounts receivable | (10,879 | ) | (203 | ) | |||
Inventories | 458 | (13,415 | ) | ||||
Prepaid expenses and other assets | 1,358 | (993 | ) | ||||
Accounts payable | (2,219 | ) | (2,880 | ) | |||
Accrued and other liabilities | (7,680 | ) | 2,072 | ||||
Income taxes | 2,814 | (715 | ) | ||||
Net cash provided by operating activities | 20,839 | 35,098 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisition of businesses, net | (229,423 | ) | (85,516 | ) | |||
Purchases of property and equipment | (16,295 | ) | (16,962 | ) | |||
Proceeds from sale of assets | 215 | — | |||||
Proceeds from sales and maturities of investments | 19,037 | 23,292 | |||||
Purchases of investments | (26,976 | ) | (7,696 | ) | |||
Proceeds from discontinued operations | 21,770 | 3,750 | |||||
Acquisition of intellectual property | — | (777 | ) | ||||
Net cash used in investing activities | (231,672 | ) | (83,909 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from corporate facility financing obligation | 4,250 | — | |||||
Proceeds from stock option exercises and employee stock purchases | 2,688 | 3,071 | |||||
Payments on notes payable | (3,026 | ) | (1,750 | ) | |||
Payments of capital leases and assumed debt | (618 | ) | (9,120 | ) | |||
Repurchase of common stock | (10,027 | ) | (6,152 | ) | |||
Payments of contingent consideration and other | (2,517 | ) | (1,195 | ) | |||
Net cash used in financing activities | (9,250 | ) | (15,146 | ) | |||
Foreign currency effect on cash | (279 | ) | (168 | ) | |||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (220,362 | ) | (64,125 | ) | |||
CASH AND CASH EQUIVALENTS — Beginning of period | $ | 332,977 | $ | 122,312 | |||
CASH AND CASH EQUIVALENTS — End of period | $ | 112,615 | $ | 58,187 | |||
Supplemental disclosure of non-cash activities | |||||||
Issuance of common stock in connection with the AppliedMicro Acquisition (See Note 2 - Acquisitions) | $ | 465,082 | $ | — |
1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Cash consideration paid to AppliedMicro common stockholders | $ | 287,060 | |
Common stock issued (9,544,125 shares of our common stock at $47.53 per share) | 453,632 | ||
Equity consideration for vested "in the money" stock options and unvested restricted stock units | 2,143 | ||
Fair value of the replacement equity awards attributable to pre-acquisition service | 9,307 | ||
Total consideration paid, excluding cash acquired | $ | 752,142 |
Preliminary Allocation | |||
Current assets | $ | 70,338 | |
Intangible assets | 410,348 | ||
Assets held for sale | 32,458 | ||
Other assets | 13,504 | ||
Total assets acquired | 526,648 | ||
Liabilities assumed: | |||
Liabilities held for sale | 4,444 | ||
Other liabilities | 17,890 | ||
Total liabilities assumed | 22,334 | ||
Net assets acquired | 504,314 | ||
Consideration: | |||
Cash paid upon closing | 230,298 | ||
Common stock issued | 455,775 | ||
Equity instruments issued | 9,307 | ||
Total consideration | $ | 695,380 | |
Goodwill | $ | 191,066 |
Included in assets held for sale | Included in retained business | Useful Lives (Years) | ||||||
Developed technology | $ | 9,600 | $ | 78,448 | 7 years | |||
Customer relationships | — | 331,900 | 10 years | |||||
$ | 9,600 | $ | 410,348 |
Three Months Ended | |||
March 31, 2017 | |||
Revenue | $ | 36,445 | |
Loss from continuing operations | (30,304 | ) | |
Loss from discontinued operations | (16,430 | ) |
Six Months Ended | |||||||
March 31, 2017 | April 1, 2016 | ||||||
Revenue | $ | 394,792 | $ | 329,923 | |||
Loss from continuing operations | (84,543 | ) | (62,937 | ) | |||
Loss from discontinued operations | (19,316 | ) | (35,764 | ) |
Preliminary Allocation as of September 30, 2016 | Allocation Adjustments | Final Allocation | |||||||||
Current assets | $ | 10,445 | $ | — | $ | 10,445 | |||||
Intangible assets | 45,650 | — | 45,650 | ||||||||
Other assets | 3,317 | — | 3,317 | ||||||||
Total assets acquired | 59,412 | — | 59,412 | ||||||||
Liabilities assumed: | |||||||||||
Debt | 11,627 | — | 11,627 | ||||||||
Deferred income taxes | 11,658 | (106 | ) | 11,552 | |||||||
Other liabilities | 3,968 | 326 | 4,294 | ||||||||
Total liabilities assumed | 27,253 | 220 | 27,473 | ||||||||
Net assets acquired | 32,159 | (220 | ) | 31,939 | |||||||
Consideration: | |||||||||||
Cash paid upon closing, net of cash acquired | 47,517 | — | 47,517 | ||||||||
Goodwill | $ | 15,358 | $ | 220 | $ | 15,578 |
Amount | Useful Lives (Years) | ||||
Developed technology | $ | 9,400 | 7 | ||
Customer relationships | 36,250 | 10 | |||
$ | 45,650 |
Three Months Ended | Six Months Ended | ||||||
April 1, 2016 | April 1, 2016 | ||||||
Revenue | $ | 8,435 | $ | 11,105 | |||
Loss before income taxes | (1,747 | ) | (2,558 | ) |
Three Months Ended | Six Months Ended | ||||||
April 1, 2016 | April 1, 2016 | ||||||
Revenue | $ | 133,579 | $ | 256,979 | |||
Net loss | (11,531 | ) | (26,785 | ) |
Preliminary Allocation as of September 30, 2016 | Allocation Adjustments | Final Allocation | |||||||||
Current assets | $ | 12,614 | $ | — | $ | 12,614 | |||||
Intangible assets | 20,900 | — | 20,900 | ||||||||
Other assets | 3,089 | — | 3,089 | ||||||||
Total assets acquired | 36,603 | — | 36,603 | ||||||||
Liabilities assumed: | |||||||||||
Other liabilities | 7,201 | — | 7,201 | ||||||||
Total liabilities assumed | 7,201 | — | 7,201 | ||||||||
Net assets acquired | 29,402 | — | 29,402 | ||||||||
Consideration: | |||||||||||
Cash paid upon closing, net of cash acquired | 37,125 | — | 37,125 | ||||||||
Goodwill | $ | 7,723 | $ | — | $ | 7,723 |
Amount | Useful Lives (Years) | ||||
Developed technology | $ | 1,000 | 7 | ||
Customer relationships | 19,900 | 10 | |||
$ | 20,900 |
Three Months Ended | Six Months Ended | ||||||
April 1, 2016 | April 1, 2016 | ||||||
Revenue | $ | 10,345 | $ | 12,252 | |||
Income before income taxes | (220 | ) | (174 | ) |
Three Months Ended | Six Months Ended | ||||||
April 1, 2016 | April 1, 2016 | ||||||
Revenue | $ | 133,579 | $ | 258,189 | |||
Net loss | (10,119 | ) | (25,703 | ) |
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, 2017 | April 1, 2016 | March 31, 2017 | April 1, 2016 | |||||||||||||
Revenue (1) | $ | 259 | $ | — | $ | 259 | $ | — | ||||||||
Cost of revenue (1) | 1,620 | — | 1,620 | — | ||||||||||||
Gross profit | (1,361 | ) | — | (1,361 | ) | — | ||||||||||
Operating expenses: | ||||||||||||||||
Research and development (1) | 8,325 | — | 8,325 | — | ||||||||||||
Selling, general and administrative (1) | 6,744 | — | 6,744 | — | ||||||||||||
Total operating expenses | 15,069 | — | 15,069 | — | ||||||||||||
Income from operations | (16,430 | ) | — | (16,430 | ) | — | ||||||||||
Other income (2) | 1,875 | 1,875 | 3,750 | 3,750 | ||||||||||||
Gain on sale (2) | 18,022 | 308 | 18,022 | 308 | ||||||||||||
Income before income taxes | 3,467 | 2,183 | 5,342 | 4,058 | ||||||||||||
Income tax provision | (669 | ) | 787 | — | 1,463 | |||||||||||
Income from discontinued operations | $ | 4,136 | $ | 1,396 | $ | 5,342 | $ | 2,595 | ||||||||
Above includes depreciation and amortization of | $ | 2,535 | $ | — | $ | 2,535 | $ | — | ||||||||
Cash flow from operating activities | 12,487 | — | 12,487 | — | ||||||||||||
Cash flow from investing activities | (663 | ) | 3,750 | (663 | ) | 3,750 | ||||||||||
Cash flow from financing activities | (32,201 | ) | — | (32,201 | ) | — |
March 31, 2017 | |||||||||||||||
Amortized Cost | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Aggregate Fair Value | ||||||||||||
Corporate bonds | $ | 15,015 | $ | — | $ | (105 | ) | $ | 14,910 | ||||||
Commercial paper | 10,909 | — | (7 | ) | 10,902 | ||||||||||
Agency bonds | 2,956 | — | (7 | ) | 2,949 | ||||||||||
Money market funds | $ | 2,810 | $ | — | $ | — | $ | 2,810 | |||||||
Total investments | $ | 31,690 | $ | — | $ | (119 | ) | $ | 31,571 |
September 30, 2016 | |||||||||||||||
Amortized Cost | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Aggregate Fair Value | ||||||||||||
Corporate bonds | $ | 14,894 | $ | 9 | $ | (103 | ) | $ | 14,800 | ||||||
Commercial paper | 2,978 | — | (4 | ) | 2,974 | ||||||||||
Agency bonds | 6,004 | 1 | (3 | ) | 6,002 | ||||||||||
Total investments | $ | 23,876 | $ | 10 | $ | (110 | ) | $ | 23,776 |
March 31, 2017 | September 30, 2016 | ||||||
Less than 1 year | $ | 15,200 | $ | 8,976 | |||
Over 1 year | 16,371 | 14,800 | |||||
Total investments | $ | 31,571 | $ | 23,776 |
Level 1 - Quoted prices in active markets for identical assets or liabilities. |
Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data. |
Level 3 - Fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including assumptions and judgments made by us. |
March 31, 2017 | |||||||||||||||
Fair Value | Active Markets for Identical Assets (Level 1) | Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||
Assets | |||||||||||||||
Money market funds | $ | 2,935 | $ | 2,935 | $ | — | $ | — | |||||||
Commercial paper | 10,902 | — | 10,902 | — | |||||||||||
Agency bonds | 2,949 | — | 2,949 | — | |||||||||||
Corporate bonds | 14,910 | — | 14,910 | — | |||||||||||
Total assets measured at fair value | $ | 31,696 | $ | 2,935 | $ | 28,761 | $ | — | |||||||
Liabilities | |||||||||||||||
Contingent consideration | $ | 481 | $ | — | $ | — | $ | 481 | |||||||
Common stock warrant liability | 45,648 | — | — | 45,648 | |||||||||||
Total liabilities measured at fair value | $ | 46,129 | $ | — | $ | — | $ | 46,129 |
September 30, 2016 | |||||||||||||||
Fair Value | Active Markets for Identical Assets (Level 1) | Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||
Assets | |||||||||||||||
Money market funds | $ | 1,172 | $ | 1,172 | $ | — | $ | — | |||||||
Commercial paper | 102,928 | — | 102,928 | — | |||||||||||
US treasuries and agency bonds | 6,002 | — | 6,002 | — | |||||||||||
Corporate bonds | 14,799 | — | 14,799 | — | |||||||||||
Total assets measured at fair value | $ | 124,901 | $ | 1,172 | $ | 123,729 | $ | — | |||||||
Liabilities | |||||||||||||||
Contingent consideration | $ | 848 | $ | — | $ | — | $ | 848 | |||||||
Common stock warrant liability | 38,253 | — | — | 38,253 | |||||||||||
Total liabilities measured at fair value | $ | 39,101 | $ | — | $ | — | $ | 39,101 |
Inputs | |||||||
Liabilities | Valuation Technique | Unobservable Input | March 31, 2017 | September 30, 2016 | |||
Contingent consideration | Discounted cash flow | Discount rate | 10.6% | 12.9% | |||
Probability of achievement | 75% - 100% | 75% - 100% | |||||
Timing of cash flows | 8 months | 1 year | |||||
Warrant liability | Black-Scholes model | Volatility | 42.9% | 43.2% | |||
Discount rate | 1.76% | 1.14% | |||||
Expected life | 3.73 years | 4.23 years | |||||
Exercise price | $14.05 | $14.05 |
September 30, 2016 | Net Realized/Unrealized Losses Included in Earnings | Sales and Settlements | March 31, 2017 | ||||||||||||
Contingent consideration | $ | 848 | $ | 33 | $ | (400 | ) | $ | 481 | ||||||
Common stock warrant liability | $ | 38,253 | $ | 7,395 | $ | — | $ | 45,648 |
October 2, 2015 | Net Realized/Unrealized Losses Included in Earnings | Sales and Settlements | April 1, 2016 | ||||||||||||
Contingent consideration | $ | 1,150 | $ | 46 | $ | (400 | ) | $ | 796 | ||||||
Common stock warrant liability | $ | 21,822 | $ | 19,079 | $ | — | $ | 40,901 |
March 31, 2017 | September 30, 2016 | ||||||
Raw materials | $ | 69,972 | $ | 67,378 | |||
Work-in-process | 13,702 | 9,157 | |||||
Finished goods | 55,948 | 38,400 | |||||
Total | $ | 139,622 | $ | 114,935 |
March 31, 2017 | September 30, 2016 | ||||||
Land, buildings and improvements | $ | 16,653 | $ | 12,572 | |||
Construction in process | 13,196 | 9,415 | |||||
Machinery and equipment | 146,469 | 129,639 | |||||
Leasehold improvements | 13,215 | 12,152 | |||||
Furniture and fixtures | 2,767 | 1,469 | |||||
Computer equipment and software | 17,797 | 12,954 | |||||
Total property and equipment | $ | 210,097 | $ | 178,201 | |||
Less accumulated depreciation and amortization | (91,579 | ) | (79,034 | ) | |||
Property and equipment, net | $ | 118,518 | $ | 99,167 |
Principal balance | $ | 588,462 | |
Unamortized discount | (3,336 | ) | |
Total term loans | $ | 585,126 | |
Current portion | 6,051 | ||
Long-term, less current portion | $ | 579,075 |
2017 (rest of fiscal year) | $ | 3,026 | |
2018 | 6,051 | ||
2019 | 6,051 | ||
2020 | 6,051 | ||
2021 | 567,283 | ||
Total | $ | 588,462 |
Fiscal year ending: | Amount | |||
2017 | $ | 1,120 | ||
2018 | 1,898 | |||
2019 | 1,794 | |||
2020 | 1,621 | |||
2021 | 1,487 | |||
Thereafter | 20,541 | |||
Total minimum capital lease obligation payments | $ | 28,461 |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, 2017 | April 1, 2016 | March 31, 2017 | April 1, 2016 | ||||||||||||
Cost of revenue | $ | 7,276 | $ | 6,642 | $ | 13,278 | $ | 13,809 | |||||||
Selling, general and administrative | 7,163 | 6,304 | 13,630 | 10,727 | |||||||||||
Total | $ | 14,439 | $ | 12,946 | $ | 26,908 | $ | 24,536 |
March 31, 2017 | September 30, 2016 | ||||||
Acquired technology | $ | 243,020 | $ | 165,397 | |||
Customer relationships | 536,234 | 207,674 | |||||
In-process research and development | 8,000 | 8,000 | |||||
Trade name | 3,400 | 3,400 | |||||
Total | $ | 790,654 | $ | 384,471 | |||
Less accumulated amortization | (151,777 | ) | (124,869 | ) | |||
Intangible assets — net | $ | 638,877 | $ | 259,602 |
Intangible Assets | |||||||||||||||||||||||
Total Intangible Assets | Acquired Technology | Customer Relationships | In-Process Research and Development | Trade Name | Goodwill | ||||||||||||||||||
Balance at September 30, 2016 | $ | 384,471 | $ | 165,397 | $ | 207,674 | $ | 8,000 | $ | 3,400 | $ | 120,024 | |||||||||||
Acquired | 410,348 | 78,448 | 331,900 | — | — | 191,066 | |||||||||||||||||
Fair value adjustment | — | — | — | — | — | 220 | |||||||||||||||||
Currency translation adjustment | (4,165 | ) | (825 | ) | (3,340 | ) | — | — | (1,426 | ) | |||||||||||||
Balance at March 31, 2017 | $ | 790,654 | $ | 243,020 | $ | 536,234 | $ | 8,000 | $ | 3,400 | $ | 309,884 |
2017 Remaining | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | ||||||||||
Amortization expense | $ | 39,962 | 84,966 | 92,474 | 90,091 | 81,335 | 238,649 | $ | 627,477 |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, 2017 | April 1, 2016 | March 31, 2017 | April 1, 2016 | ||||||||||||
Numerator: | |||||||||||||||
Loss from continuing operations | $ | (134,267 | ) | $ | (12,045 | ) | $ | (136,438 | ) | $ | (28,815 | ) | |||
Income from discontinued operations | 4,136 | 1,396 | 5,342 | 2,595 | |||||||||||
Net loss | $ | (130,131 | ) | $ | (10,649 | ) | $ | (131,096 | ) | $ | (26,220 | ) | |||
Net loss attributable to common stockholders | $ | (130,131 | ) | $ | (10,649 | ) | $ | (131,096 | ) | $ | (26,220 | ) | |||
Denominator: | |||||||||||||||
Weighted average common shares outstanding-basic | 60,813 | 53,228 | 57,276 | 53,122 | |||||||||||
Weighted average common shares outstanding-diluted | $ | 60,813 | $ | 53,228 | $ | 57,276 | $ | 53,122 | |||||||
(Loss) earnings per share-basic: | |||||||||||||||
Continuing operations | $ | (2.21 | ) | $ | (0.23 | ) | $ | (2.38 | ) | $ | (0.54 | ) | |||
Discontinued operations | 0.07 | 0.03 | 0.09 | 0.05 | |||||||||||
Net common stock loss per share-basic | $ | (2.14 | ) | $ | (0.20 | ) | $ | (2.29 | ) | $ | (0.49 | ) | |||
(Loss) earnings per share-diluted: | |||||||||||||||
Continuing operations | $ | (2.21 | ) | $ | (0.23 | ) | $ | (2.38 | ) | $ | (0.54 | ) | |||
Discontinued operations | 0.07 | 0.03 | 0.09 | 0.05 | |||||||||||
Net common stock loss per share-diluted | $ | (2.14 | ) | $ | (0.20 | ) | $ | (2.29 | ) | $ | (0.49 | ) |
Balance as of September 30, 2016 | $ | 3,104 | |
Acquired liability | 142 | ||
Current period expense | 1,757 | ||
Payments | (3,858 | ) | |
Balance as of March 31, 2017 | $ | 1,145 |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, 2017 | April 1, 2016 | March 31, 2017 | April 1, 2016 | ||||||||||||
Cost of revenue | $ | 679 | $ | 493 | $ | 1,399 | $ | 950 | |||||||
Research and development | 2,727 | 1,671 | 4,671 | 3,508 | |||||||||||
Selling, general and administrative | 6,144 | 3,680 | 11,661 | 8,768 | |||||||||||
Total share-based compensation expense | $ | 9,550 | $ | 5,844 | $ | 17,731 | $ | 13,226 |
Number of RSUs | Weighted- Average Grate Date Fair Value | Aggregate Intrinsic Value (in thousands) | ||||||||
Balance at September 30, 2016 | 1,707,695 | $ | 32.76 | $ | 72,165 | |||||
Granted | 1,034,362 | 36.79 | ||||||||
Vested and released | (540,095 | ) | 26.91 | |||||||
Forfeited, canceled or expired | (31,299 | ) | 33.53 | |||||||
Balance at March 31, 2017 | 2,170,663 | $ | 36.13 | $ | 104,835 |
Six Months Ended | |||||||
March 31, 2017 | April 1, 2016 | ||||||
Cash paid for interest | $ | 16,668 | $ | 8,229 | |||
Cash (refunded) paid for income taxes | $ | (720 | ) | $ | 722 |
Three Months Ended | Six Months Ended | ||||||||||||||
Revenue by Geographic Region | March 31, 2017 | April 1, 2016 | March 31, 2017 | April 1, 2016 | |||||||||||
United States | $ | 66,223 | $ | 36,502 | $ | 110,184 | $ | 70,984 | |||||||
China | 39,859 | 34,565 | 87,337 | 65,284 | |||||||||||
Asia Pacific, excluding China (1) | 65,288 | 52,444 | 115,040 | 94,180 | |||||||||||
Other Countries (2) | 14,714 | 10,068 | 25,275 | 18,905 | |||||||||||
Total | $ | 186,084 | $ | 133,579 | $ | 337,836 | $ | 249,353 |
As of | ||||||||
Long-Lived Assets by Geographic Region | March 31, 2017 | September 30, 2016 | ||||||
United States | $ | 97,873 | $ | 79,832 | ||||
Asia Pacific (1) | 16,764 | 16,614 | ||||||
Other Countries (2) | 3,881 | 2,721 | ||||||
Total | $ | 118,518 | $ | 99,167 |
(1) | Asia Pacific represents Taiwan, Hong Kong, Japan, Singapore, India, Thailand, South Korea, Australia, Malaysia and the Philippines. |
(2) | No international country or region represented greater than 10% of the total net long-lived assets or revenue as of the dates presented, other than the Asia-Pacific region as presented above. |
Three Months Ended | Six Months Ended | ||||||||
Revenue | March 31, 2017 | April 1, 2016 | March 31, 2017 | April 1, 2016 | |||||
Customer A | 11 | % | 17 | % | 16% | 16% | |||
Customer B | 10 | % | 11 | % | 11% | 12% | |||
Customer D | 7 | % | 12 | % | 7% | 12% | |||
Customer E | 3 | % | 10 | % | 4% | 10% |
Accounts Receivable | March 31, 2017 | September 30, 2016 | |||
Customer A | 10 | % | 13 | % | |
Customer B | 13 | % | 14 | % | |
Customer C | 12 | % | 1 | % | |
Customer D | 8 | % | 16 | % |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | engaging early with our lead customers to develop products and solutions that can be driven across multiple growth markets; |
• | leveraging our core strength and leadership position in standard, catalog products that service all of our end applications; |
• | increasing content of our semiconductor solutions in our customers’ systems through cross-selling of our more than 40 product lines; |
• | introducing new products through internal development and acquisitions with market reception that command higher prices based on the application of advanced technologies such as GaN, added features, higher levels of integration and improved performance; and |
• | continued growth in the market for high-performance analog and optical semiconductors in our three primary markets in particular. |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, 2017 | April 1, 2016 | March 31, 2017 | April 1, 2016 | ||||||||||||
Revenue | $ | 186,084 | $ | 133,579 | $ | 337,836 | $ | 249,353 | |||||||
Cost of revenue (1) (4) (5) | 117,220 | 68,054 | 190,477 | 123,510 | |||||||||||
Gross profit | $ | 68,864 | $ | 65,525 | $ | 147,359 | $ | 125,843 | |||||||
Operating expenses: | |||||||||||||||
Research and development (1) | 39,685 | 26,203 | 69,859 | 51,525 | |||||||||||
Selling, general and administrative (1) (2) (6) | 62,327 | 34,617 | 98,822 | 69,303 | |||||||||||
Impairment charges (4) | — | 11,005 | — | 11,005 | |||||||||||
Restructuring charges | 469 | 851 | 1,757 | 1,008 | |||||||||||
Total operating expenses | $ | 102,481 | $ | 72,676 | $ | 170,438 | $ | 132,841 | |||||||
Loss from operations | $ | (33,617 | ) | $ | (7,151 | ) | $ | (23,079 | ) | $ | (6,998 | ) | |||
Other (expense) income | |||||||||||||||
Warrant liability expense (3) | (2,573 | ) | (4,201 | ) | (7,395 | ) | (19,079 | ) | |||||||
Interest expense | (7,374 | ) | (4,408 | ) | (14,724 | ) | (8,754 | ) | |||||||
Other (expense) income | (898 | ) | (81 | ) | (903 | ) | 19 | ||||||||
Total other expense, net | $ | (10,845 | ) | $ | (8,690 | ) | $ | (23,022 | ) | $ | (27,814 | ) | |||
Loss before income taxes | (44,462 | ) | (15,841 | ) | (46,101 | ) | (34,812 | ) | |||||||
Income tax expense (benefit) | 89,805 | (3,796 | ) | 90,337 | (5,997 | ) | |||||||||
Loss from continuing operations | $ | (134,267 | ) | $ | (12,045 | ) | $ | (136,438 | ) | $ | (28,815 | ) | |||
Income from discontinued operations (6) (7) | 4,136 | 1,396 | 5,342 | 2,595 | |||||||||||
Net loss | $ | (130,131 | ) | $ | (10,649 | ) | $ | (131,096 | ) | $ | (26,220 | ) |
(1) | Includes (a) Amortization expense related to intangible assets arising from acquisitions and (b) Share-based compensation expense included in our consolidated statements of operations as set forth below (in thousands): |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, 2017 | April 1, 2016 | March 31, 2017 | April 1, 2016 | ||||||||||||
(a) Intangible amortization expense: | |||||||||||||||
Cost of revenue | $ | 7,276 | $ | 6,642 | $ | 13,278 | $ | 13,809 | |||||||
Selling, general and administrative | 7,163 | 6,304 | 13,630 | 10,727 | |||||||||||
(b) Share-based compensation expense: | |||||||||||||||
Cost of revenue | $ | 679 | $ | 493 | $ | 1,399 | $ | 950 | |||||||
Research and development | 2,727 | 1,671 | 4,671 | 3,508 | |||||||||||
Selling, general and administrative | 6,144 | 3,680 | 11,661 | 8,768 |
Three Months Ended | Six Months Ended | ||||||||||
March 31, 2017 | April 1, 2016 | March 31, 2017 | April 1, 2016 | ||||||||
Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
Cost of revenue | 63.0 | 50.9 | 56.4 | 49.5 | |||||||
Gross profit | 37.0 | 49.1 | 43.6 | 50.5 | |||||||
Operating expenses: | |||||||||||
Research and development | 21.3 | 19.6 | 20.7 | 20.7 | |||||||
Selling, general and administrative | 33.5 | 25.9 | 29.3 | 27.8 | |||||||
Impairment charges | — | 8.2 | — | 4.4 | |||||||
Restructuring charges | 0.3 | 0.6 | 0.5 | 0.4 | |||||||
Total operating expenses | 55.1 | 54.4 | 50.4 | 53.3 | |||||||
Loss from operations | (18.1 | ) | (5.4 | ) | (6.8 | ) | (2.8 | ) | |||
Other (expense) income | |||||||||||
Warrant liability expense | (1.4 | ) | (3.1 | ) | (2.2 | ) | (7.7 | ) | |||
Interest expense | (4.0 | ) | (3.3 | ) | (4.4 | ) | (3.5 | ) | |||
Other (expense) income | (0.5 | ) | (0.1 | ) | (0.3 | ) | — | ||||
Total other expense, net | (5.8 | ) | (6.5 | ) | (6.8 | ) | (11.2 | ) | |||
Loss before income taxes | (23.9 | ) | (11.9 | ) | (13.6 | ) | (14.0 | ) | |||
Income tax expense (benefit) | 48.3 | (2.8 | ) | 26.7 | (2.4 | ) | |||||
Loss from continuing operations | (72.2 | ) | (9.0 | ) | (40.4 | ) | (11.6 | ) | |||
Income from discontinued operations | 2.2 | 1.0 | 1.6 | 1.0 | |||||||
Net loss | (69.9 | )% | (8.0 | )% | (38.8 | )% | (10.5 | )% |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
March 31, 2017 | April 1, 2016 | % Change | March 31, 2017 | April 1, 2016 | % Change | ||||||||||||||||
Networks | $ | 140,932 | $ | 96,344 | 46.3 | % | $ | 249,286 | $ | 179,364 | 39.0 | % | |||||||||
A&D | 22,253 | 18,046 | 23.3 | % | 44,261 | 36,338 | 21.8 | % | |||||||||||||
Multi-market | 22,899 | 19,188 | 19.3 | % | 44,289 | 33,651 | 31.6 | % | |||||||||||||
Total | $ | 186,084 | $ | 133,578 | $ | 337,836 | $ | 249,353 | |||||||||||||
Networks | 75.7 | % | 72.1 | % | 73.8 | % | 71.9 | % | |||||||||||||
A&D | 12.0 | % | 13.5 | % | 13.1 | % | 14.6 | % | |||||||||||||
Multi-market | 12.4 | % | 14.4 | % | 13.1 | % | 13.5 | % | |||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
March 31, 2017 | April 1, 2016 | |||||||
Cash and cash equivalents, beginning of period | $ | 332,977 | $ | 122,312 | ||||
Net cash provided by operating activities | 20,839 | 35,098 | ||||||
Net cash used in investing activities | (231,672 | ) | (83,909 | ) | ||||
Net cash used in financing activities | (9,250 | ) | (15,146 | ) | ||||
Foreign currency effect on cash | (279 | ) | (168 | ) | ||||
Cash and cash equivalents, end of period | $ | 112,615 | $ | 58,187 |
• | the accurate prediction of market requirements, changes in technology and evolving standards; |
• | the availability of qualified product designers and process technologies needed to solve difficult design challenges in a cost-effective, reliable manner; |
• | our ability to design products that meet customers’ cost, size and performance requirements and other technical specifications; |
• | our ability to design and manufacture new products in volume with acceptable manufacturing yields, and deliver them to customers in time for the applicable market adoption window; |
• | our ability to offer new products at competitive prices; |
• | the acceptance by customers of our new product designs; |
• | the identification of and timely entry into new markets for our products, such as our publicly announced market opportunities in cloud data centers, 100G optical networks, GaN technology and active antennas; |
• | the acceptance of our customers’ products by the market and the lifecycle of such products; |
• | our ability to innovate, the strength of our intellectual property rights, and our ability to protect our intellectual property rights; and, |
• | our ability to maintain and increase our level of product content in our customers’ systems. |
Period | Total Number of Shares (or Units) Purchased (1) | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number that May Yet Be Purchased Under the Plans or Programs | ||||||||
December 31, 2016 - January 27, 2017 | — | $ | — | — | — | |||||||
January 28, 2017 - February 24, 2017 | 213,568 | 46.96 | — | — | ||||||||
February 25, 2017 - March 31, 2017 | — | — | — | — | ||||||||
213,568 | $ | 46.96 | — | — |
(1) | We employ “withhold to cover” as a tax payment method for vesting of restricted stock awards for our employees, pursuant to which, we withheld from employees the shares noted in the table above to cover tax withholding related to the vesting of their awards. The average prices listed in the above table are averages of the fair market prices at which we valued shares withheld for purposes of calculating the number of shares to be withheld. |
Exhibit Number | Description |
3.1 | |
3.2 | |
10.1* | |
10.2 | |
10.3 | |
10.4 | |
31.1 | |
31.2 | |
32.1 | |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Schema Document |
101.CAL | XBRL Taxonomy Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Definition Linkbase Document |
101.LAB | XBRL Taxonomy Label Linkbase Document |
101.PRE | XBRL Taxonomy Presentation Linkbase Document |
* Management contract or compensatory plan |
MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC. | ||
Dated: April 26, 2017 | By: | /s/ John Croteau |
John Croteau | ||
President and Chief Executive Officer (Principal Executive Officer) | ||
Dated: April 26, 2017 | By: | /s/ Robert J. McMullan |
Robert J. McMullan | ||
Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of MACOM Technology Solutions Holdings, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
1. | I have reviewed this Quarterly Report on Form 10-Q of MACOM Technology Solutions Holdings, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Apr. 21, 2017 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC. | |
Entity Central Index Key | 0001493594 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2017 | |
Entity Common Stock, Shares Outstanding | 63,827,572 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Sep. 30, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 8,064 | $ 3,279 |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Income Statement [Abstract] | ||||
Revenue | $ 186,084 | $ 133,579 | $ 337,836 | $ 249,353 |
Cost of revenue | 117,220 | 68,054 | 190,477 | 123,510 |
Gross profit | 68,864 | 65,525 | 147,359 | 125,843 |
Operating expenses: | ||||
Research and development | 39,685 | 26,203 | 69,859 | 51,525 |
Selling, general and administrative | 62,327 | 34,617 | 98,822 | 69,303 |
Impairment charges | 0 | 11,005 | 0 | 11,005 |
Restructuring charges | 469 | 851 | 1,757 | 1,008 |
Total operating expenses | 102,481 | 72,676 | 170,438 | 132,841 |
Loss from operations | (33,617) | (7,151) | (23,079) | (6,998) |
Other (expense) income | ||||
Warrant liability expense | (2,573) | (4,201) | (7,395) | (19,079) |
Interest expense, net | (7,374) | (4,408) | (14,724) | (8,754) |
Other (expense) income | (898) | (81) | (903) | 19 |
Total other expense, net | (10,845) | (8,690) | (23,022) | (27,814) |
Loss before income taxes | (44,462) | (15,841) | (46,101) | (34,812) |
Income tax expense (benefit) | 89,805 | (3,796) | 90,337 | (5,997) |
Loss from continuing operations | (134,267) | (12,045) | (136,438) | (28,815) |
Income from discontinued operations | 4,136 | 1,396 | 5,342 | 2,595 |
Net loss | $ (130,131) | $ (10,649) | $ (131,096) | $ (26,220) |
Basic income (loss) per share: | ||||
Income (loss) from continuing operations (in usd per share) | $ (2.21) | $ (0.23) | $ (2.38) | $ (0.54) |
Income from discontinued operations (in usd per share) | 0.07 | 0.03 | 0.09 | 0.05 |
Income (loss) per share - basic (in usd per share) | (2.14) | (0.20) | (2.29) | (0.49) |
Diluted income (loss) per share: | ||||
Income (loss) from continuing operations (in usd per share) | (2.21) | (0.23) | (2.38) | (0.54) |
Income from discontinued operations (in usd per share) | 0.07 | 0.03 | 0.09 | 0.05 |
Income (loss) per share - diluted (in usd per share) | $ (2.14) | $ (0.20) | $ (2.29) | $ (0.49) |
Shares used: | ||||
Basic (in shares) | 60,813 | 53,228 | 57,276 | 53,122 |
Diluted (in shares) | 60,813 | 53,228 | 57,276 | 53,122 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (130,131) | $ (10,649) | $ (131,096) | $ (26,220) |
Unrealized gain on short term investments, net of tax | 52 | 73 | 6 | 12 |
Foreign currency translation gain (loss), net of tax | 3,567 | 5,647 | (6,030) | 5,538 |
Other comprehensive loss, net of tax | 3,619 | 5,720 | (6,024) | 5,550 |
Total comprehensive loss | $ (126,512) | $ (4,929) | $ (137,120) | $ (20,670) |
Summary of Significant Accounting Policies |
6 Months Ended |
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Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Unaudited Interim Financial Information—The accompanying unaudited, condensed consolidated financial statements have been prepared according to the rules and regulations of the United States (the “U.S.”) Securities and Exchange Commission (“SEC”) and, in the opinion of management, reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the condensed consolidated balance sheets, condensed consolidated statements of operations, condensed consolidated statement of comprehensive loss, condensed consolidated statements of stockholders' equity and condensed consolidated statements of cash flows of MACOM Technology Solutions Holdings, Inc. (“MACOM”, the “Company”, “us”, “we” or “our”) for the periods presented. We prepare our interim financial information using the same accounting principles we use for our annual audited consolidated financial statements. Certain information and note disclosures normally included in the annual audited consolidated financial statements have been condensed or omitted in accordance with prescribed SEC rules. We believe that the disclosures made in our condensed consolidated financial statements and the accompanying notes are adequate to make the information presented not misleading. The consolidated balance sheet at September 30, 2016 is as reported in our audited consolidated financial statements as of that date. Our accounting policies are described in the notes to our September 30, 2016 consolidated financial statements, which were included in our Annual Report on Form 10-K for our fiscal year ended September 30, 2016 filed with the SEC on November 17, 2016. We recommend that the financial statements included in this Quarterly Report on Form 10-Q be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for our fiscal year ended September 30, 2016. Principles of Consolidation—We have one reportable segment, semiconductors and modules. The accompanying consolidated financial statements include our accounts and the accounts of our majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. We have a 52 or 53-week fiscal year ending on the Friday closest to the last day of September. The fiscal years 2017 and 2016 include 52 weeks. To offset the effect of holidays, for fiscal years in which there are 53 weeks, we include the extra week arising in our fiscal years in the first quarter. Use of Estimates—The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities during the reporting periods, the reported amounts of revenue and expenses during the reporting periods, and the disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, we base estimates and assumptions on historical experience, currently available information and various other factors that management believes to be reasonable under the circumstances. Actual results may differ materially from these estimates and assumptions. Recent Accounting Pronouncements—Our Recent Accounting Pronouncements are described in the notes to our September 30, 2016 consolidated financial statements, which were included in our Annual Report on Form 10-K for fiscal year ended September 30, 2016. In September 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Acquirers will now recognize measurement-period adjustments during the period in which they determine the amount of the adjustment. This ASU is effective for annual and interim reporting periods beginning after December 15, 2015, and should be applied prospectively to adjustments for provisional amounts that occur after the effective date. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | ACQUISITIONS Acquisition of Applied Micro Circuits Corporation— On January 26, 2017 we completed the acquisition of Applied Micro Circuits Corporation (“AppliedMicro”), a global provider of silicon solutions for next-generation cloud infrastructure and cloud data centers, as well as connectivity products for edge, metro and long-haul communications equipment (the “AppliedMicro Acquisition”). We acquired AppliedMicro in order to expand our business in enterprise and cloud data center applications. In connection with the AppliedMicro Acquisition, we acquired all of the outstanding common stock of AppliedMicro for total consideration of $695.4 million, which included cash paid of $287.1 million, less $56.8 million of cash acquired, and equity issued at a fair value of $465.1 million. In conjunction with the equity issued, we granted vested out-of-money stock options and unvested restricted stock units to replace outstanding vested out-of-money stock options and unvested restricted stock units of AppliedMicro. The total fair value of granted vested out-of-money stock options and unvested restricted stock units was $14.5 million, of which $9.3 million was attributable to pre-combination service and was included in the total consideration transferred. We funded the AppliedMicro Acquisition with cash on hand and short term investments. For the three and six months ended March 31, 2017, we recorded transaction costs of $8.3 million and $11.8 million, respectively. We recorded transaction costs related to the acquisition in selling, general and administrative expense, except for $1.0 million related to equity issuance costs which was recorded to additional paid in capital. The AppliedMicro Acquisition was accounted for as a stock purchase and the operations of AppliedMicro have been included in our consolidated financial statements since the date of acquisition. We recognized the AppliedMicro assets acquired and liabilities assumed based upon the fair value of such assets and liabilities measured as of the date of acquisition. The aggregate purchase price for AppliedMicro has been allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair value at the date of acquisition. The excess of the purchase price over the fair value of the acquired net assets represents cost and revenue synergies specific to the Company, as well as non-capitalizable intangible assets, such as the employee workforce acquired, and has been allocated to goodwill, none of which will be tax deductible. The purchase accounting is preliminary and subject to completion including certain fair value measurements, particularly the finalization of the valuation assessment of the acquired tangible and intangible assets. The adjustments arising from the completion of the outstanding matters may materially affect the preliminary purchase accounting. In connection with the acquisition of AppliedMicro, we entered into a plan to divest a portion of AppliedMicro's business specifically related to its compute business (the "Compute business"). Accordingly these assets and liabilities are accounted for as discontinued operations and classified as assets and liabilities held for sale. The following table summarizes the total estimated acquisition consideration (in thousands):
The preliminary allocation of purchase price as of March 31, 2017 is as follows (in thousands):
The components of the acquired intangible assets were as follows (in thousands):
The overall weighted-average life of the identified intangible assets acquired in the AppliedMicro Acquisition is estimated to be 9.4 years and the assets are being amortized over their estimated useful lives based upon the pattern over which we expect to receive the economic benefit from these assets. The following is a summary of AppliedMicro revenue and earnings included in our accompanying condensed consolidated statements of operations for the three months ended March 31, 2017 (in thousands):
The pro forma statements of operations data for the six months ended March 31, 2017 and April 1, 2016, below, give effect to the AppliedMicro Acquisition, described above, as if it had occurred at October 2, 2015. These amounts have been calculated after applying our accounting policies and adjusting the results of AppliedMicro to reflect; transaction costs, retention compensation expense, the impact of the step-up to the value of acquired inventory, as well as the additional intangible amortization that would have been charged assuming the fair value adjustments had been applied and incurred since October 2, 2015. This pro forma data is presented for informational purposes only and does not purport to be indicative of our future results of operations.
Acquisition of FiBest Limited—On December 9, 2015, we completed the acquisition of FiBest Limited (“FiBest”) a Japan-based merchant market component supplier of optical sub-assemblies (“FiBest Acquisition”). We acquired FiBest to expand our position in optical networking components. In connection with the FiBest Acquisition, all of the outstanding equity interests (including outstanding options) of FiBest were exchanged for aggregate consideration of $59.1 million including cash of $47.5 million and assumed debt of $11.6 million. We funded the FiBest Acquisition with cash on hand. There were no transaction costs recorded in the six months ended March 31, 2017. For the six months ended April 1, 2016 we recorded transaction costs of $2.7 million as selling, general and administrative expenses related to this acquisition. The FiBest Acquisition was accounted for as a stock purchase and the operations of FiBest have been included in our consolidated financial statements since the date of acquisition. We recognized the FiBest assets acquired and liabilities assumed based upon the fair value of such assets and liabilities measured as of the date of acquisition. The aggregate purchase price for FiBest has been allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The excess of the purchase price over the fair value of the acquired net assets represents cost and revenue synergies specific to the Company, as well as non-capitalizable intangible assets, such as the employee workforce acquired, and has been allocated to goodwill, none of which is tax deductible. During the quarter ended December 30, 2016, we recorded an adjustment of $0.2 million primarily related to other liabilities and an adjustment of the deferred tax liability associated with the FiBest Acquisition. We finalized our allocation of purchase price during the quarter ended December 30, 2016. The final allocation of purchase price as of December 30, 2016, is as follows (in thousands):
The components of the acquired intangible assets were as follows (in thousands):
The overall weighted-average life of the identified intangible assets acquired in the FiBest Acquisition is estimated to be 9.4 years and the assets are being amortized over their estimated useful lives based upon the pattern over which we expect to receive the economic benefit from these assets. The following is a summary of FiBest revenue and earnings included in our accompanying condensed consolidated statements of operations for the three and six months ended April 1, 2016 (in thousands):
The pro forma statements of operations data for the three and six months ended April 1, 2016, below, give effect to the FiBest Acquisition, described above, as if it had occurred at October 4, 2014. These amounts have been calculated after applying our accounting policies and adjusting the results of FiBest to reflect; transaction costs, retention compensation expense, the impact of the step-up to the value of acquired inventory, as well as the additional intangible amortization that would have been charged assuming the fair value adjustments had been applied and incurred since October 4, 2014. This pro forma data is presented for informational purposes only and does not purport to be indicative of our future results of operations.
Acquisition of Aeroflex/Metelics Inc.—On December 14, 2015, we acquired Aeroflex/Metelics, Inc. (“Metelics”), a diode supplier for aggregate cash consideration of $38.0 million, subject to customary working capital and other adjustments (“Metelics Acquisition”). We acquired Metelics to expand our diode business. We funded the acquisition with cash on hand. The Metelics Acquisition was accounted for as a stock purchase and the operations of Metelics have been included in our consolidated financial statements since the date of acquisition. For the six months ended March 31, 2017, no material transaction costs were recorded. For the six months ended April 1, 2016, we recorded transaction costs of $0.5 million as selling, general and administrative expenses related to this acquisition. We recognized the Metelics assets acquired and liabilities assumed based upon the fair value of such assets and liabilities measured as of the date of acquisition. The aggregate purchase price for Metelics has been allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The excess of the purchase price over the fair value of the acquired net assets represents cost and revenue synergies specific to the Company, as well as non-capitalizable intangible assets, such as the employee workforce acquired, and has been allocated to goodwill, which is tax deductible due to a 338(h)(10) election. We finalized our allocation of purchase price during the quarter ended December 30, 2016. The final allocation of purchase price as of December 30, 2016, is as follows (in thousands):
The components of the acquired intangible assets were as follows (in thousands):
The overall weighted-average life of the identified intangible assets acquired in the Metelics Acquisition is estimated to be 9.9 years and the assets are being amortized over their estimated useful lives based upon the pattern over which we expect to receive the economic benefit from these assets. The following is a summary of Metelics revenue and earnings included in our accompanying condensed consolidated statements of operations for the three and six months ended April 1, 2016 (in thousands):
The pro forma statements of operations data for the three and six months ended April 1, 2016, below, give effect to the Metelics Acquisition, described above, as if it had occurred at October 4, 2014. These amounts have been calculated after applying our accounting policies and adjusting the results of Metelics to reflect the transaction costs, the impact of the step-up to the value of acquired inventory, as well as, the additional intangible amortization that would have been charged assuming the fair value adjustments had been applied and incurred since October 4, 2014. This pro forma data is presented for informational purposes only and does not purport to be indicative of our future results of operations.
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | DISCONTINUED OPERATIONS In connection with the acquisition of AppliedMicro, we entered into a plan to divest its Compute business. As of March 31, 2017, the Compute business is being actively marketed, negotiations are preliminary and the sale is expected to be completed within twelve months from the date of acquisition. We are accounting for the business as a discontinued operation. In August 2015, we sold our Automotive business to Autoliv ASP Inc. (“Autoliv”), as the Automotive business was not consistent with our long-term strategic vision from both a growth and profitability perspective. The agreed consideration included $82.1 million in cash paid at closing and $18.0 million payable in eighteen months pending resolution of any contingencies as part of an indemnification agreement, plus the opportunity to receive up to an additional $30.0 million in cash based on achievement of revenue-based earnout targets through fiscal year 2019. Additionally, we entered into a consulting agreement pursuant to which we may provide Autoliv with certain non-design advisory services for a period of two years following the closing of the transaction for up to $15.0 million in cash (the "Consulting Agreement"). During the three months ended March 31, 2017, we received $18.0 million, the full amount of the indemnification escrow. The remainder of the consideration to be received from Autoliv, if any, including any additional amounts related to the Consulting Agreement, will be accounted for in discontinued operations when the contingencies are finalized and the proceeds, if any, become realizable. Other income recorded during the three and six months ended March 31, 2017 and April 1, 2016 from the Automotive business related to the Consulting Agreement. The accompanying consolidated statements of operations includes the following operating results related to these discontinued operations (in thousands):
(1) Amounts are associated with the Compute business. (2) Amounts are associated with the Automotive business. |
Short Term Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | INVESTMENTS All investments are short term in nature and are invested in corporate bonds, restricted money market funds, commercial paper and agency bonds, and are classified as available-for-sale. Money market funds include restricted investments in mutual funds acquired in connection with the acquisition of AppliedMicro, which are expected to be liquidated during our fiscal quarter ending June 30, 2017. The amortized cost, gross unrealized holding gains or losses, and fair value of our investments by major investment type as of March 31, 2017 and September 30, 2016 are summarized in the tables below (in thousands):
The contractual maturities of investments were as follows (in thousands):
Available-for-sale investments are reported at fair value and as such, their associated unrealized gains and losses are reported as a separate component of stockholders’ equity within accumulated other comprehensive loss. |
Fair Value |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | FAIR VALUE We group our financial assets and liabilities measured at fair value on a recurring basis in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis We measure certain assets and liabilities at fair value on a recurring basis such as our financial instruments and derivatives. There have been no transfers between Level 1, 2 or 3 assets or liabilities during the three and six months ended March 31, 2017. Money market funds are actively traded and consist of highly liquid investments with original maturities of 90 days or less. They are measured at their net asset value and classified as Level 1 assets. Corporate and agency bonds and commercial paper are categorized as Level 2 assets except where sufficient quoted prices exist in active markets, in which case such securities are categorized as Level 1 assets. These securities are valued using third-party pricing services. These services may use, for example, model-based pricing methods that utilize observable market data as inputs. We generally use quoted prices for recent trading activity of assets with similar characteristics to the debt security or bond being valued. The securities and bonds priced using such methods are generally classified as Level 2 assets. Broker dealer bids or quotes on securities with similar characteristics may also be used. Assets and liabilities measured at fair value on a recurring basis consist of the following (in thousands):
As of March 31, 2017 and September 30, 2016, the fair value of the common stock warrants has been estimated using a Black-Scholes option pricing model. The quantitative information utilized in the fair value calculation of our Level 3 liabilities is as follows:
The fair values of the contingent consideration liabilities were estimated based upon a risk-adjusted present value of the probability-weighted expected payments by us. Specifically, we considered base, upside and downside scenarios for the operating metrics upon which the contingent payments are to be based. Probabilities were assigned to each scenario and the probability weighted payments were discounted to present value using risk-adjusted discount rates. The changes in liabilities with inputs classified within Level 3 of the fair value hierarchy consist of the following (in thousands):
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES Inventories consist of the following (in thousands):
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Property, Plant and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following (in thousands):
Depreciation and amortization expense related to property, plant and equipment for the three and six months ended March 31, 2017 was $7.2 million and $13.1 million, respectively. Depreciation and amortization expense related to property, plant and equipment for the three and six months ended April 1, 2016 was $5.2 million and $9.5 million, respectively. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT On May 8, 2014, we entered into a credit agreement (“Credit Agreement”) with a syndicate of lenders that provided for term loans in an aggregate principal amount of $350.0 million, which mature in May 2021 (“Initial Term Loans”) and a revolving credit facility of $100.0 million initially, which matures in May 2019 (“Revolving Facility”). In February 2015, we executed an amendment to the Credit Agreement that increased our aggregate borrowing capacity under the Revolving Facility to $130 million. The Initial Term Loans were issued with an original issue discount of 0.75%, which is being amortized over the term of the Initial Term Loans using the straight-line method, which approximates the effective interest rate method. On August 31, 2016, we entered into an amendment (“Incremental Term Loan Amendment”) to our Credit Agreement which provided for incremental term loans in an aggregate principal amount of $250 million, which mature in May 2021 (“Incremental Term Loans”, together with the Initial Term Loans, “Term Loans”). The terms of the Incremental Term Loans are identical to the terms of the Initial Term Loans, other than with respect to upfront fees, original issue discount and arrangement, structuring or similar fees payable in connection therewith. The Incremental Term Loans were issued with an original issue discount of 0.95%, which is being amortized over the term of the Incremental Term Loans using the straight-line method, which approximates the effective interest rate method. On March 10, 2017, we entered into multiple amendments to our Credit Agreement (the "March 2017 Amendments"), which consisted of (i) the Second Incremental Amendment, by and among MACOM, Barclays Bank PLC and Goldman Sachs Bank USA, as Administrative Agent, (ii) the Refinancing Amendment, by and among MACOM Technology Solutions Holdings, Inc., the lenders party thereto and Goldman Sachs Bank USA, as Administrative Agent and (iii) Amendment No. 4 to the Credit Agreement, by and among MACOM Technology Solutions Holdings, Inc., the revolving credit lenders and Goldman Sachs Bank USA, as Administrative Agent. Pursuant to the March 2017 Amendments, we increased the revolving credit commitments available under our revolving credit facility by $30.0 million to $160.0 million. No amounts were drawn under the increased revolving credit commitments on the closing date of the March 2017 Amendments or as of March 31, 2017. In addition, pursuant to the March 2017 Amendments, our existing Term Loans were refinanced at a reduced interest rate. The Term Loans will bear interest at: (i) for LIBOR loans for any interest period, a rate per annum equal to the LIBOR rate as determined by the administrative agent, plus an applicable margin in the range of 2.75% to 3.00% (based on our total net leverage ratio being within certain defined ranges); and (ii) for base rate loans, a rate per annum equal to the greater of (x) the prime rate quoted in the print edition of the Wall Street Journal, Money Rates Section, (y) the federal funds rate plus one-half of 1.00% and (z) the LIBOR rate applicable to a one-month interest period plus 1.00% (but, in each case, not less than 1.00%), plus an applicable margin in the range of 1.75% to 2.00% (based on our total net leverage ratio being within certain defined ranges). Interest on the Term Loans is payable quarterly. The effective interest rate on our Term Loans was 3.86% as of March 31, 2017. Further, pursuant to the March 2017 Amendments, the Credit Agreement was amended to provide that the financial covenant under the revolving credit facility would only be tested if, as of the last date of any fiscal quarter, the aggregate amount outstanding under the revolving credit facility (other than with respect to (a) undrawn letters of credit in an amount not to exceed $5.0 million and (b) letters of credit that have been cash collateralized pursuant to the Credit Agreement) exceeds 35% of the revolving credit commitments under the Company’s revolving credit facility. Prior to the Revolver Amendment, the threshold for testing the financial covenant was set at 25% of the revolving credit commitments under the Company’s revolving credit facility. We incurred $8.7 million in fees for the issuance of the Credit Agreement in May 2014, and $3.2 million in fees for the issuance of the Incremental Term Loan Amendment in August 2016, which were initially recorded as deferred financing costs and are being amortized over the life of the Credit Agreement as interest expense. In March 2017, we incurred an additional $1.0 million in fees for the issuance of the March 2017 Amendments. In connection with the March 2017 Amendments, we determined that $0.9 million of deferred costs previously capitalized should be expensed as a loss on extinguishment of debt related to syndicated lenders whose debt was extinguished. As of March 31, 2017, approximately $8.2 million of deferred financing costs remain unamortized, of which $6.9 million is related to the Incremental Term Loans and is recorded as a direct reduction of the recognized debt liabilities in our accompanying consolidated balance sheet, and $1.3 million is related to the Revolving Facility and is recorded in other assets in our accompanying consolidated balance sheet. The Term Loans and Incremental Term Loans are secured by a first priority lien on substantially all of our assets and provide that we must comply with certain financial and non-financial covenants. As of March 31, 2017, we were in compliance with all financial and non-financial covenants under the Credit Agreement and we had $588.5 million of outstanding Term Loan borrowings under the Credit Agreement and $160.0 million of borrowing capacity under our Revolving Facility. As of March 31, 2017, the following remained outstanding on the Term Loans (in thousands):
As of March 31, 2017, the minimum principal payments under the Term Loans in future fiscal years were as follows (in thousands):
The fair value of the Term Loans was estimated to be approximately $596.6 million as of March 31, 2017 and was determined using Level 2 inputs, including a quoted rate from a bank. |
Capital Lease and Financing Obligations Capital Lease and Financing Obligations |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Lease Obligations | 9. CAPITAL LEASE AND FINANCING OBLIGATIONS Corporate Facility Financing Obligation On May 26, 2016, we entered into a Purchase and Sale Agreement (“Purchase Agreement”) with Calare Properties, Inc., a Delaware corporation (together with its affiliates, the “Buyer”) for the sale and subsequent leaseback of our corporate headquarters, located at 100 Chelmsford Street, Lowell, Massachusetts. The transactions contemplated by the Purchase Agreement closed on December 28, 2016, at which time we also entered into three lease agreements with the Buyer including: (1) a 20-year leaseback of the facility located at 100 Chelmsford Street (the “100 Chelmsford Lease”), (2) a 20-year build-to-suit lease arrangement for the construction and subsequent lease back of a new facility to be located at 144 Chelmsford Street (the “144 Chelmsford Lease”), and (3) a 14-year building lease renewal of an adjacent facility at 121 Hale Street (the “121 Hale Lease”, and together with the 100 Chelmsford Lease and the 144 Chelmsford Lease, the “Leases”). Because the transactions contemplated by the Purchase Agreement and the related Leases were negotiated and consummated at the same time and in contemplation of one another to achieve the same commercial objective, the transactions are accounted for by us as a single unit of accounting. In addition, the Leases were determined to represent a failed sale-leaseback due to our continuing involvement in the properties in the form of non-recourse financing. As a result, the Leases are accounted for under the financing method and we will be the deemed accounting owner under the arrangement, including the assets to be constructed under the 144 Chelmsford Lease. We will continue to recognize the existing building and improvements sold under the Purchase Agreement, capitalize the 121 Hale Street building as well as the assets constructed under the Leases, and depreciate the assets over the shorter of their estimated useful lives or the lease terms. The sale proceeds from the Purchase Agreement of $8.2 million (which includes $4.2 million in cash and $4.0 million in construction allowances) and the fair value of the 121 Hale Street building of $4.0 million were recognized as a financing obligation on our balance sheet and are being amortized over the 20-year lease term based on the minimum lease payments required under the Leases and our incremental borrowing rate. Future construction costs funded by the Buyer under the 144 Chelmsford Lease will be recognized as additional financing obligations on our balance sheet as incurred and will be amortized over the 20-year lease term based on the minimum lease payments required under the Leases and our incremental borrowing rate. As a result of the failed sale-leaseback accounting, we calculated a financing obligation as of the December 28, 2016 inception of the lease based on the future minimum lease payments discounted at 8.5%. The discount rate represents the estimated incremental borrowing rate over the lease term of 20-years. The minimum lease payments are recorded as interest expense and in part as a payment of principal reducing the financing obligation. The real property assets in the transaction remain on the consolidated balance sheets and continue to be depreciated over the remaining useful lives. As of March 31, 2017, approximately $12.2 million of the financing obligation was outstanding associated with the Leases. Acquired Capital Leases In connection with the FiBest Acquisition in December 2015 and the acquisition of BinOptics Corporation (“BinOptics Acquisition”) in December 2014 we assumed certain capital lease obligations, of which approximately $2.8 million was outstanding as of March 31, 2017. As of March 31, 2017, future minimum payments under capital lease obligations and financing obligations related to the Leases were as follows (in thousands):
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Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | INTANGIBLE ASSETS Amortization expense related to intangible assets is as follows (in thousands):
Intangible assets consist of the following (in thousands):
A summary of the activity in intangible assets and goodwill follows (in thousands):
As of March 31, 2017, our estimated amortization of our intangible assets in future fiscal years was as follows (in thousands):
Our trade name is an indefinite-lived intangible assets. During development, in-process research and development (“IPR&D”) is not subject to amortization and is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test consists of a comparison of the fair value to its carrying amount. If the carrying value exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Once an IPR&D project is complete, it becomes a definite long-lived intangible asset and is evaluated for impairment in accordance with our policy for long-lived assets. Accumulated amortization for acquired technology and customer relationships were $89.8 million and $61.9 million, respectively, as of March 31, 2017, and $76.7 million and $48.1 million, respectively, as of September 30, 2016. |
Stockholders' Equity |
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Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY We have authorized 10 million shares of $0.001 par value preferred stock and 300 million shares of $0.001 par value common stock as of March 31, 2017 and September 30, 2016. The outstanding shares of our common stock as of March 31, 2017 and September 30, 2016, presented in the accompanying consolidated statements of stockholders’ equity exclude 200 and 3,300 unvested shares of restricted stock awards, respectively, issued as compensation to employees and directors that remained subject to forfeiture. Common Stock Warrants—In March 2012, we issued warrants to purchase 1,281,358 shares of common stock for $14.05 per share. The warrants expire December 21, 2020, or earlier as per the terms of the agreement, including immediately following consummation of a sale of all or substantially all assets or capital stock or other equity securities, including by merger, consolidation, recapitalization, or similar transactions. We do not currently have sufficient registered and available shares to immediately satisfy a request for registration, if such a request were made. As of March 31, 2017, no exercise of the warrants had occurred and no request had been made to register the warrants or any underlying securities for resale by the holders. We are recording the estimated fair values of the warrants as a long-term liability in the accompanying consolidated financial statements with changes in the estimated fair value being recorded in the accompanying statements of operations. See Note 5 - Fair Value for additional information related to the fair value of our warrant liability. |
Earnings (Loss) Per Share |
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Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHARE The following table sets forth the computation for basic and diluted net loss per share of common stock (in thousands, except per share data):
The table above excludes the effects of 2,031 and 2,139 shares for the three months ended March 31, 2017 and April 1, 2016, respectively, and 1,953 and 2,081 shares for the six months ended March 31, 2017 and April 1, 2016, respectively, of potential shares of common stock issuable upon exercise of stock options, restricted stock and stock units, and warrants as the inclusion would be antidilutive. |
Commitments and Contingencies |
6 Months Ended |
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Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES From time to time we may be subject to commercial disputes, employment issues, claims by other companies in the industry that we have infringed their intellectual property rights and other similar claims and litigations. Any such claims may lead to future litigation and material damages and defense costs. Other than as set forth below, we were not involved in any material pending legal proceedings during the quarter ended March 31, 2017. GaN Lawsuit Against Infineon. On April 26, 2016, we and our wholly-owned subsidiary Nitronex, LLC brought suit against Infineon Technologies Americas Corporation (“Infineon Americas”) and Infineon Technologies AG (“Infineon AG” and collectively, with Infineon Americas, “Infineon”) in the Federal District Court for the Central District of California, seeking injunctive relief, monetary damages, and specific performance of certain contractual obligations. On July 19, 2016, we filed a first amended complaint, and, on November 21, 2016, we filed a second amended complaint. After motions to dismiss certain claims from MACOM’s second amended complaint were denied on February 28, 2017, Infineon AG answered on March 24, 2017, asserting no counterclaims. Infineon Americas also answered and counterclaimed on March 24, 2017 and then submitted amended counterclaims on April 14, 2017, asserting counterclaims of patent infringement and breach of contract and seeking a declaration that a certain license agreement has been terminated. MACOM’s response to the counterclaims is currently due on April 28, 2017. The suit arises out of agreements relating to GaN patents that were executed in 2010 by Nitronex Corporation (acquired by us in 2014) and International Rectifier Corporation (“International Rectifier”) (acquired by Infineon AG in 2015). We assert claims for breach of contract, breach of the covenant of good faith and fair dealing, declaratory judgment of contractual rights, declaratory judgment of non-infringement of patents, and, against Infineon AG only, intentional interference with contract. If successful, the relief sought in our first amended complaint would, among other remedies, require Infineon to assign back to us certain GaN-related Nitronex patents that were previously assigned to International Rectifier and enjoin Infineon from proceeding with its marketing and sales of certain types of GaN-on-Si products. In an order dated October 31, 2016, the Court granted us a preliminary injunction against Infineon, which then issued on December 8, 2016 and was modified on March 6, 2017. The preliminary injunction declares that an exclusive licensing arrangement between us and Infineon that Infineon had purported to terminate is still in effect and prohibits Infineon Americas and others acting in concert with it from engaging in certain activities in our exclusive field, which includes RF power amplifiers for cellular base stations. Infineon appealed the preliminary injunction order to the Federal Circuit on January 3, 2017, and MACOM appealed the modification order on April 5, 2017. The first appeal is now fully briefed, but no date has been set for oral argument. MACOM’s brief in the second appeal is currently due on June 5, 2017. Meanwhile, the district court case is proceeding, with expedited discovery currently occurring on Infineon’s potential violations of the preliminary injunction and a case scheduling conference set for June 26, 2017. With respect to the above legal proceeding, we are not able to reasonably estimate the amount or range of any possible loss, and accordingly have not accrued or disclosed any related amounts of possible loss in the accompanying consolidated financial statements. |
Restructurings |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||
Restructurings | RESTRUCTURINGS We have periodically implemented restructuring actions in connection with broader plans to reduce staffing, reduce our internal manufacturing footprint and, generally, reduce operating costs. The restructuring expenses are primarily comprised of direct and incremental costs related to headcount reductions including severance and outplacement fees for the terminated employees, as well as facility closure costs. The following is a summary of the costs incurred and remaining balances included in accrued expenses for the six months ended March 31, 2017 (in thousands):
The restructuring expenses recorded to date are expected to be paid through the remainder of fiscal year 2017. Our restructuring charges incurred to date are primarily employee related with non-employee related charges determined to be immaterial. We expect to incur additional restructuring costs of approximately $0.6 million to $1.6 million during the remainder of calendar year 2017 as we complete restructuring actions primarily associated with facility consolidations. |
Share-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | SHARE-BASED COMPENSATION Stock Plans As of March 31, 2017, we had 16.4 million shares available for future issuance under our 2012 Omnibus Incentive Plan (as Amended and Restated) (the “2012 Plan”), and 3.1 million shares available for issuance under our Employee Stock Purchase Plan (“ESPP”). Under the 2012 Plan, we have the ability to issue incentive stock options (“ISOs”), non-statutory stock options (“NSOs”), performance based non-statutory stock options, stock appreciation rights, restricted stock (“RSAs”), restricted stock units (“RSUs”), performance-based stock units (“PRSUs”), performance shares and other equity-based awards to employees, directors and outside consultants. The ISOs and NSOs must be granted at a price per share not less than the fair value of our common stock on the date of grant. Options granted to date primarily vest based on certain market-based and performance-based criteria as described below. Options granted generally have a term of seven to ten years. Certain of the share-based awards granted and outstanding as of March 31, 2017 are subject to accelerated vesting upon a change in control. There were no modifications to share-based awards during the periods presented. As of March 31, 2017, total unrecognized compensation cost related to the employee stock purchase plan was not material. Share-Based Compensation The following table shows a summary of share-based compensation expense included in the Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2017 and April 1, 2016 (in thousands):
As of March 31, 2017, the total unrecognized compensation costs, adjusted for estimated forfeitures, related to outstanding stock options, restricted stock awards and units including awards with time-based and performance based vesting was $76.4 million, which we expect to recognize over a weighted-average period of 3.0 years. Stock Options We had 1.3 million stock options outstanding as of March 31, 2017, with a weighted-average exercise price per share of $28.56 and weighted-average remaining contractual term of 5.6 years. The aggregate intrinsic value of the stock options outstanding as of March 31, 2017 was $26.9 million which represents our closing stock price value on the last trading day of the period in excess of the weighted-average exercise price multiplied by the number of options outstanding. During November 2016, we granted 310,000 non-qualified stock options with a grant date fair value of $4.1 million that are subject to vesting only upon the market price of the Company’s underlying public stock closing above a certain price target within seven years of the date of grant. These non-qualified stock options with market related vesting conditions are valued using a Monte Carlo simulation model, using a volatility rate of 32.2%, a risk-free rate of 1.84%, a strike price of $40.25 and a term of seven years. Share-based compensation expense is recognized regardless of the number of awards that are earned based on the market condition and is recognized on a straight-line basis over the estimated service period of approximately three years. If the required service period is not met for these options then the share-based compensation expense would be reversed. In the event that the Company’s common stock achieves the target price of $66.96 per share based on a 30 day trailing average prior to the end of the estimated service period, any remaining unamortized compensation cost will be recognized. During January 2017, we granted 10,000 non-qualified stock options with a grant date fair value of $0.2 million that are subject to vesting only upon the market price of the Company’s underlying public stock closing above a certain price target within seven years of the date of grant. These non-qualified stock options with market related vesting conditions are valued using a Monte Carlo simulation model, using a volatility rate of 34.5%, a risk-free rate of 2.25%, a strike price of $46.28 and a term of seven years. Share-based compensation expense is recognized regardless of the number of awards that are earned based on the market condition and is recognized on a straight-line basis over the estimated service period of approximately three years. If the required service period is not met for these options then the share-based compensation expense would be reversed. In the event that the Company’s common stock achieves the target price of $80.70 per share based on a 30 day trailing average prior to the end of the estimated service period, any remaining unamortized compensation cost will be recognized. The total intrinsic value of options exercised was $0.3 million and $1.8 million for the three and six months ended March 31, 2017, respectively, and was $0.8 million and $2.7 million for the three and six months ended April 1, 2016, respectively. Restricted Stock, Restricted Stock Units and Performance-Based Restricted Stock Units A summary of restricted stock, restricted stock unit and performance-based restricted stock unit activity for the six months ended March 31, 2017, is as follows:
Restricted stock, restricted stock units and performance-based restricted stock units that vested during the six months ended March 31, 2017 and April 1, 2016 had fair value of $10.0 million and $15.7 million as of the vesting date, respectively. |
Income Taxes |
6 Months Ended |
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Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES We are subject to income tax in the U.S. as well as other tax jurisdictions in which we conduct business. Earnings from non-U.S. activities are subject to local country income tax and may also be subject to current U.S. income tax. For interim periods, we record a tax provision or benefit based upon the estimated effective tax rate expected for the full fiscal year, adjusted for material discrete taxation matters arising during the interim periods. The difference between the U.S. federal statutory income tax rate of 35% and our effective income tax rates for the three and six months ended April 1, 2016, was primarily impacted by changes in fair values of the common stock warrant liability which is neither deductible nor taxable for tax purposes, income taxed in foreign jurisdictions at generally lower tax rates, non-deductible compensation, research and development tax credits and non-deductible merger expenses, offset by U.S. state income taxes. The difference between the U.S. federal statutory income tax rate of 35% and our effective income tax rates for the three and six months ended March 31, 2017 was primarily driven by the establishment of a valuation allowance against our U.S. deferred tax assets. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making this determination, we consider available positive and negative evidence or factors that may impact the valuation of our deferred tax asset including results of recent operations, future reversals of existing taxable temporary differences, projected future taxable income, and tax-planning strategies. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended March 31, 2017 which we believe limits our ability to consider other subjective evidence, such as our projections for future growth. Certain transaction and integration related expenses incurred in the U.S. associated primarily with the AppliedMicro Acquisition during the three months ended March 31, 2017 resulted for the first time in significant negative objective evidence in the form of adjusted cumulative losses in the U.S. over the past three-year period. This resulted in our determination that there was not sufficient objectively verifiable positive evidence to offset this negative objective evidence and we concluded that a full valuation allowance totaling $88.0 million was required for our U.S. deferred tax assets as of March 31, 2017. In addition, a full valuation allowance was established against the U.S. deferred tax assets acquired in connection with the AppliedMicro Acquisition. The balance of the unrecognized tax benefit as of March 31, 2017 and September 30, 2016 did not change and remained at $1.7 million. The unrecognized tax benefits primarily relate to positions taken by us in our 2014 U.S. tax filings. The entire balance of unrecognized tax benefits, if recognized, will reduce income tax expense. It is our policy to recognize any interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the quarters ended March 31, 2017 and September 30, 2016, we did not make any accrual or payment of interest and penalties. As disclosed in Note 2 - Acquisitions, our purchase accounting for the AppliedMicro Acquisition, including income taxes, is preliminary and subject to revision upon obtaining and analyzing all information. As of March 31, 2017, we recorded a full valuation allowance against the deferred tax assets acquired based on the factors described above. Our purchase accounting related to the FiBest Acquisition, including income taxes, was finalized during the three months ended December 30, 2016. We recorded an aggregate net deferred income tax liability estimated to be $11.6 million which includes a net deferred income tax asset of $2.5 million relating to net operating loss ("NOL") carryforwards and a net deferred income tax liability of $14.1 million related to the difference between the book and tax basis of the intangible and other assets acquired. Related to the Metelics Acquisition we do not anticipate the recording of any deferred taxes due to a Section 338(h) (10) election which will permit us to have tax basis equal to the purchase price. |
Related Party Transactions |
6 Months Ended |
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Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS GaAs Labs, LLC (“GaAs Labs”), a former stockholder and an affiliate of directors John and Susan Ocampo, continues to engage us to provide administrative and business development services to GaAs Labs on a time and materials basis. There are no minimum service requirements or payment obligations and the agreement may be terminated by either party with 30 days notice. In the six months ended March 31, 2017 and April 1, 2016, we recorded no material billings to GaAs Labs. Cadence Design Systems, Inc. ("Cadence"), an affiliate of director Geoffrey Ribar, who joined our Board of Directors on March 22, 2017, provides us with certain engineering licenses on an ongoing basis. During the three months ended March 31, 2017, we made payments of $1.5 million to Cadence subsequent to Mr. Ribar joining the Board of Directors. In the six months ended March 31, 2017 and April 1, 2016, we recorded no material revenue associated with product sales to a public company with a common director. |
Supplemental Cash Flow Information |
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Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION As of March 31, 2017 and April 1, 2016, we had $1.1 million and $0.7 million in unpaid amounts related to purchases of property and equipment included in accounts payable and accrued liabilities during each period, respectively. These amounts have been excluded from the payments for purchases of property and equipment in the accompanying condensed consolidated statements of cash flows until paid. In January 2017, we issued common stock with a fair value of $465.1 million in connection with the AppliedMicro Acquisition. This was accounted for as a non-cash transaction as no shares were purchased or sold as part of the transaction. The following is supplemental cash flow information regarding non-cash investing and financing activities (in thousands):
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Geographic and Significant Customer Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geographic and Significant Customer Information | GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION We have one reportable operating segment that designs, develops, manufactures and markets semiconductors and modules. The determination of the number of reportable operating segments is based on the chief operating decision maker’s use of financial information for the purposes of assessing performance and making operating decisions. In evaluating financial performance and making operating decisions, the chief operating decision maker primarily uses consolidated revenue, gross profit and operating income (loss). Information about our operations in different geographic regions, based upon customer locations, is presented below (in thousands):
The following is a summary of customer concentrations as a percentage of revenue and accounts receivable as of and for the periods presented:
No other customer represented more than 10% of revenue or accounts receivable in the periods presented in the accompanying consolidated financial statements. For the three and six months ended March 31, 2017, our top ten customers represented 56% and 57% of total revenue, respectively, and for the three and six months ended April 1, 2016 our top ten customers represented 66% and 64% of total revenue, respectively. |
Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation—We have one reportable segment, semiconductors and modules. The accompanying consolidated financial statements include our accounts and the accounts of our majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Period | We have a 52 or 53-week fiscal year ending on the Friday closest to the last day of September. The fiscal years 2017 and 2016 include 52 weeks. To offset the effect of holidays, for fiscal years in which there are 53 weeks, we include the extra week arising in our fiscal years in the first quarter. |
Use of Estimates | Use of Estimates—The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities during the reporting periods, the reported amounts of revenue and expenses during the reporting periods, and the disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, we base estimates and assumptions on historical experience, currently available information and various other factors that management believes to be reasonable under the circumstances. Actual results may differ materially from these estimates and assumptions. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements—Our Recent Accounting Pronouncements are described in the notes to our September 30, 2016 consolidated financial statements, which were included in our Annual Report on Form 10-K for fiscal year ended September 30, 2016. In September 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Acquirers will now recognize measurement-period adjustments during the period in which they determine the amount of the adjustment. This ASU is effective for annual and interim reporting periods beginning after December 15, 2015, and should be applied prospectively to adjustments for provisional amounts that occur after the effective date. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Acquisitions (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Acquisitions | The following table summarizes the total estimated acquisition consideration (in thousands):
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Schedule of Aggregate Purchase Price Allocated to Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed | The final allocation of purchase price as of December 30, 2016, is as follows (in thousands):
The final allocation of purchase price as of December 30, 2016, is as follows (in thousands):
The preliminary allocation of purchase price as of March 31, 2017 is as follows (in thousands):
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Components of Acquired Intangible Assets on a Preliminary Basis | The components of the acquired intangible assets were as follows (in thousands):
The components of the acquired intangible assets were as follows (in thousands):
The components of the acquired intangible assets were as follows (in thousands):
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Summary of Unaudited Supplemental Pro Forma Data | The following is a summary of FiBest revenue and earnings included in our accompanying condensed consolidated statements of operations for the three and six months ended April 1, 2016 (in thousands):
The following is a summary of Metelics revenue and earnings included in our accompanying condensed consolidated statements of operations for the three and six months ended April 1, 2016 (in thousands):
This pro forma data is presented for informational purposes only and does not purport to be indicative of our future results of operations.
The following is a summary of AppliedMicro revenue and earnings included in our accompanying condensed consolidated statements of operations for the three months ended March 31, 2017 (in thousands):
This pro forma data is presented for informational purposes only and does not purport to be indicative of our future results of operations.
This pro forma data is presented for informational purposes only and does not purport to be indicative of our future results of operations.
|
Discontinued Operations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Operating Results through Dates of Divestiture Related to Divested Businesses | The accompanying consolidated statements of operations includes the following operating results related to these discontinued operations (in thousands):
|
Short Term Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Available for Sale Investments |
Money market funds include restricted investments in mutual funds acquired in connection with the acquisition of AppliedMicro, which are expected to be liquidated during our fiscal quarter ending June 30, 2017. The amortized cost, gross unrealized holding gains or losses, and fair value of our investments by major investment type as of March 31, 2017 and September 30, 2016 are summarized in the tables below (in thousands):
|
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Summary of Contractual Maturities of Investments | The contractual maturities of investments were as follows (in thousands):
|
Fair Value (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis consist of the following (in thousands):
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Quantitative information Used in Fair Value Calculation of Level 3 Liabilities | The quantitative information utilized in the fair value calculation of our Level 3 liabilities is as follows:
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Changes in Liabilities with Inputs Classified within Level 3 of Fair Value | The changes in liabilities with inputs classified within Level 3 of the fair value hierarchy consist of the following (in thousands):
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Changes in Assets with Inputs Classified within Level 3 of Fair Value | The changes in liabilities with inputs classified within Level 3 of the fair value hierarchy consist of the following (in thousands):
|
Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventories | Inventories consist of the following (in thousands):
|
Property, Plant and Equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Property, Plant and Equipment | Property, plant and equipment consists of the following (in thousands):
|
Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Remained Outstanding on Term Loans | As of March 31, 2017, the following remained outstanding on the Term Loans (in thousands):
|
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Schedule of Minimum Principal Payments under Term Loans | As of March 31, 2017, the minimum principal payments under the Term Loans in future fiscal years were as follows (in thousands):
|
Capital Lease and Financing Obligations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases | As of March 31, 2017, future minimum payments under capital lease obligations and financing obligations related to the Leases were as follows (in thousands):
|
Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Amortization Expense of Intangible Assets | Amortization expense related to intangible assets is as follows (in thousands):
|
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Summary of Intangible Assets | Intangible assets consist of the following (in thousands):
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Summary of Activity in Intangible Assets and Goodwill | A summary of the activity in intangible assets and goodwill follows (in thousands):
|
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Summary of Estimated Amortization of Intangible Assets in Future Fiscal Years | As of March 31, 2017, our estimated amortization of our intangible assets in future fiscal years was as follows (in thousands):
|
Earnings (Loss) Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation for Basic and Diluted Net Loss Per Share of Common Stock | The following table sets forth the computation for basic and diluted net loss per share of common stock (in thousands, except per share data):
|
Restructurings (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||
Summary of Costs Incurred and Remaining Balances Included in Accrued Expenses | The following is a summary of the costs incurred and remaining balances included in accrued expenses for the six months ended March 31, 2017 (in thousands):
|
Share-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effects of Stock-Based Compensation Expense Related to Stock-Based Awards to Employees and Nonemployees | The following table shows a summary of share-based compensation expense included in the Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2017 and April 1, 2016 (in thousands):
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Summary of Restricted Stock, Restricted Stock Unit and Performance-based Restricted Stock Unit Activity | A summary of restricted stock, restricted stock unit and performance-based restricted stock unit activity for the six months ended March 31, 2017, is as follows:
|
Supplemental Cash Flow Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Cash Flow Information Regarding Non-cash Investing and Financing Activities | The following is supplemental cash flow information regarding non-cash investing and financing activities (in thousands):
|
Geographic and Significant Customer Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Different Geographic Regions | Information about our operations in different geographic regions, based upon customer locations, is presented below (in thousands):
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Summary of Customer Concentrations as Percentage of Revenue and Accounts Receivable | The following is a summary of customer concentrations as a percentage of revenue and accounts receivable as of and for the periods presented:
|
Summary of Significant Accounting Policies (Details) |
6 Months Ended |
---|---|
Mar. 31, 2017
segment
| |
Accounting Policies [Abstract] | |
Number of reportable operating segment | 1 |
Acquisitions Acquisitions - Acquisition Consideration Transferred (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jan. 26, 2017 |
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Business Acquisition [Line Items] | |||
Consideration paid, equity instruments issued | $ 465,082 | $ 0 | |
Applied Micro Circuits Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Cash Acquired from Acquisition | $ 56,800 | ||
Cash consideration paid to AppliedMicro common stockholders | 287,060 | ||
Consideration paid, equity instruments issued | 453,632 | ||
Equity consideration for vested in the money stock options and unvested restricted stock units | 2,143 | ||
Fair value of the replacement equity awards attributable to pre-acquisition service | 9,307 | ||
Total consideration paid, excluding cash acquired | $ 752,142 | ||
Number of shares issued for acquisition (in shares) | 9,544,125 | ||
Price per share issued for acquisition (in dollars per share) | $ 47.53 |
Acquisitions - Summary of Revenue and Earnings (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Business Acquisition [Line Items] | ||||
Loss from discontinued operations | $ 4,136 | $ 1,396 | $ 5,342 | $ 2,595 |
Applied Micro Circuits Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenue | 36,445 | |||
Loss from continuing operations | (30,304) | |||
Loss from discontinued operations | $ (16,430) | |||
Fi Best Limited [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenue | 8,435 | 11,105 | ||
Loss from continuing operations | (1,747) | (2,558) | ||
Aeroflex/Metelics Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenue | 10,345 | 12,252 | ||
Loss from continuing operations | $ (220) | $ (174) |
Acquisitions - Summary of Unaudited Supplemental Pro Forma Data (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Applied Micro Circuits Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Revenue | $ 394,792 | $ 329,923 | |
Loss from continuing operations | (84,543) | (62,937) | |
Loss from discontinued operations | $ (19,316) | (35,764) | |
Fi Best Limited [Member] | |||
Business Acquisition [Line Items] | |||
Revenue | $ 133,579 | 256,979 | |
Loss from continuing operations | (11,531) | (26,785) | |
Aeroflex/Metelics Inc [Member] | |||
Business Acquisition [Line Items] | |||
Revenue | 133,579 | 258,189 | |
Loss from continuing operations | $ (10,119) | $ (25,703) |
Discontinued Operations - Summary of Operating Results through Dates of Divestiture Related to Divested Businesses (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Discontinued Operations and Disposal Groups [Abstract] | ||||
Revenue (1) | $ 259 | $ 0 | $ 259 | $ 0 |
Cost of revenue (1) | 1,620 | 0 | 1,620 | 0 |
Gross profit | (1,361) | 0 | (1,361) | 0 |
Operating expenses: | ||||
Research and development (1) | 8,325 | 0 | 8,325 | 0 |
Selling, general and administrative (1) | 6,744 | 0 | 6,744 | 0 |
Total operating expenses | 15,069 | 0 | 15,069 | 0 |
Income from operations | (16,430) | 0 | (16,430) | 0 |
Other income (2) | 1,875 | 1,875 | 3,750 | 3,750 |
Gain on sale (2) | 18,022 | 308 | 18,022 | 308 |
Income before income taxes | 3,467 | 2,183 | 5,342 | 4,058 |
Income tax provision | (669) | 787 | 0 | 1,463 |
Income from discontinued operations | 4,136 | 1,396 | 5,342 | 2,595 |
Above includes depreciation and amortization of | 2,535 | 0 | 2,535 | 0 |
Cash flow from operating activities | 12,487 | 0 | 12,487 | 0 |
Cash flow from investing activities | (663) | 3,750 | (663) | 3,750 |
Cash Provided by (Used in) Financing Activities, Discontinued Operations | $ (32,201) | $ 0 | $ (32,201) | $ 0 |
Short Term Investments - Change in Available for Sale Investments (Details) $ in Thousands |
Mar. 31, 2017
USD ($)
|
---|---|
Movement in Available-for-sale Securities [Roll Forward] | |
Balance at beginning of period | $ 23,776 |
Balance at end of period | 31,571 |
Agency Bonds [Member] | |
Movement in Available-for-sale Securities [Roll Forward] | |
Balance at beginning of period | 6,002 |
Balance at end of period | 2,949 |
Corporate Debt Securities [Member] | |
Movement in Available-for-sale Securities [Roll Forward] | |
Balance at beginning of period | 14,800 |
Balance at end of period | $ 14,910 |
Investments - Summary of Contractual Maturities of Investments (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Sep. 30, 2016 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Less than 1 year | $ 15,200 | $ 8,976 |
Over 1 year | 16,371 | 14,800 |
Total investments | $ 31,571 | $ 23,776 |
Fair Value - Changes in Assets and Liabilities with Inputs Classified within Level 3 of Fair Value (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Contingent Consideration [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 848 | $ 1,150 |
Net Realized/Unrealized Losses Included in Earnings | 33 | 46 |
Sales and Settlements | (400) | (400) |
Balance at end of period | 481 | 796 |
Common Stock Warrant Liability [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 38,253 | 21,822 |
Net Realized/Unrealized Losses Included in Earnings | 7,395 | 19,079 |
Sales and Settlements | 0 | 0 |
Balance at end of period | $ 45,648 | $ 40,901 |
Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Sep. 30, 2016 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 69,972 | $ 67,378 |
Work-in-process | 13,702 | 9,157 |
Finished goods | 55,948 | 38,400 |
Total | $ 139,622 | $ 114,935 |
Property Plant and Equipment - Components of Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Sep. 30, 2016 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 210,097 | $ 178,201 |
Less accumulated depreciation and amortization | (91,579) | (79,034) |
Property and equipment, net | 118,518 | 99,167 |
Land, Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 16,653 | 12,572 |
Construction in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 13,196 | 9,415 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 146,469 | 129,639 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 13,215 | 12,152 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,767 | 1,469 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 17,797 | $ 12,954 |
Property Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 7.2 | $ 5.2 | $ 13.1 | $ 9.5 |
Debt - Additional Information (Details) - USD ($) |
6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 10, 2017 |
Mar. 09, 2017 |
Sep. 30, 2016 |
Aug. 31, 2016 |
Feb. 28, 2015 |
May 08, 2014 |
|
Debt Instrument [Line Items] | ||||||||
Write off of Deferred Debt Issuance Cost | $ 871,000 | $ 0 | ||||||
Unamortized deferred financing costs | 8,200,000 | |||||||
Term Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount drawn | $ 585,126,000 | |||||||
Effective interest rate | 3.86% | |||||||
Unamortized deferred financing costs | $ 6,900,000 | |||||||
Principal balance | 588,462,000 | |||||||
Estimated fair value of Term Loans | 596,600,000 | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Unamortized deferred financing costs | 1,300,000 | |||||||
Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance fee | $ 8,700,000 | |||||||
Credit Agreement [Member] | Term Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 350,000,000.0 | |||||||
Original issue discount | 0.75% | |||||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 160,000,000 | $ 130,000,000 | $ 100,000,000.0 | |||||
Amount drawn | 0 | 0 | ||||||
Maximum undrawn letters of credit | $ 5,000,000 | |||||||
Maximum undrawn letters of credit as a percentage of revolving credit commitments | 35.00% | 25.00% | ||||||
Increase in maximum borrowing capacity | 30,000,000 | |||||||
Credit facility, remaining borrowing capacity | $ 160,000,000 | |||||||
Incremental Term Loan Amendment [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance fee | 3,200,000 | |||||||
Incremental Term Loan Amendment [Member] | Term Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 250,000,000.0 | |||||||
Original issue discount | 0.95% | |||||||
March 2017 Amendments [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance fee | $ 1,000,000 | |||||||
Federal Funds Effective Swap Rate [Member] | Term Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
One Month London Interbank Offered Rate (LIBOR) [Member] | Term Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Minimum [Member] | Term Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Term Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.75% | |||||||
Minimum [Member] | Base Rate [Member] | Term Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | |||||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Term Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 3.00% | |||||||
Maximum [Member] | Base Rate [Member] | Term Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.00% |
Debt - Schedule of Remained Outstanding on Term Loans (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Sep. 30, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Current portion | $ 6,051 | $ 6,051 |
Long-term, less current portion | 572,180 | $ 573,882 |
Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Principal balance | 588,462 | |
Unamortized discount | (3,336) | |
Total term loans | 585,126 | |
Current portion | 6,051 | |
Long-term, less current portion | $ 579,075 |
Debt - Schedule of Minimum Principal Payments under Term Loans (Details) - Term Loans [Member] $ in Thousands |
Mar. 31, 2017
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
2017 (rest of fiscal year) | $ 3,026 |
2018 | 6,051 |
2019 | 6,051 |
2020 | 6,051 |
2021 | 567,283 |
Total | $ 588,462 |
Capital Lease and Financing Obligations Narrative (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Capital Leased Assets [Line Items] | ||
Proceeds from corporate facility financing obligation | $ 4,250 | $ 0 |
Discount rate | 8.50% | |
FiBest and Bin Optics | ||
Capital Leased Assets [Line Items] | ||
Financing obligations associated with leases | $ 2,800 | |
100 Chelmsford Street | ||
Capital Leased Assets [Line Items] | ||
Lease term | 20 years | |
Proceeds from corporate facility financing obligation | $ 4,200 | |
Noncash or Part Noncash Divestiture, Description | 4,000 | |
Financing obligations associated with leases | $ 8,200 | |
144 Chelmsford Street Lease | ||
Capital Leased Assets [Line Items] | ||
Lease term | 20 years | |
Corporate Facility Leases | ||
Capital Leased Assets [Line Items] | ||
Lease term | 20 years | |
Financing obligations associated with leases | $ 12,200 | |
121 Hale Street | ||
Capital Leased Assets [Line Items] | ||
Lease term | 14 years | |
Financing obligations associated with leases | $ 4,000 |
Capital Lease and Financing Obligations FutureMinimumLeasePayments (Details) $ in Thousands |
Mar. 31, 2017
USD ($)
|
---|---|
Leases [Abstract] | |
2017 | $ 1,120 |
2018 | 1,898 |
2019 | 1,794 |
2020 | 1,621 |
2021 | 1,487 |
Thereafter | 20,541 |
Total minimum capital lease obligation payments | $ 28,461 |
Intangible Assets - Summary of Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Total | $ 14,439 | $ 12,946 | $ 26,908 | $ 24,536 |
Cost of Revenue [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total | 7,276 | 6,642 | 13,278 | 13,809 |
Selling, General and Administrative [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total | $ 7,163 | $ 6,304 | $ 13,630 | $ 10,727 |
Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Sep. 30, 2016 |
Apr. 01, 2016 |
---|---|---|---|
Finite-Lived Intangible Assets [Line Items] | |||
Trade name | $ 3,400 | $ 3,400 | |
Total | 790,654 | 384,471 | |
Less accumulated amortization | (151,777) | (124,869) | |
Intangible assets — net | 638,877 | 259,602 | |
Acquired Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets | 243,020 | 165,397 | |
Less accumulated amortization | (89,800) | $ (76,700) | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets | 536,234 | 207,674 | |
Less accumulated amortization | (61,900) | $ (48,100) | |
In-Process Research and Development [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets | $ 8,000 | $ 8,000 |
Intangible Assets - Summary of Activity in Intangible Assets and Goodwill (Details) $ in Thousands |
6 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
| |
Indefinite-lived Intangible Assets [Roll Forward] | |
Goodwill, Purchase Accounting Adjustments | $ 220 |
Finite-lived Intangible Assets [Roll Forward] | |
Balance at beginning of period | 120,024 |
Acquired | 191,066 |
Currency translation adjustment | (1,426) |
Balance at end of period | 309,884 |
Goodwill and Intangible Assets [Roll Forward] | |
Balance at beginning of period | 384,471 |
Acquired | 410,348 |
Goodwill and Intangible Assets, Purchase Accounting Adjustments | 0 |
Currency translation adjustment | (4,165) |
Balance at end of period | 790,654 |
Trade Name [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Indefinite-lived Intangible Assets, Purchase Accounting Adjustments | 0 |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance at beginning of period | 3,400 |
Acquired | 0 |
Currency translation adjustment | 0 |
Balance at end of period | 3,400 |
Acquired Technology [Member] | |
Finite-lived Intangible Assets [Roll Forward] | |
Balance at beginning of period | 165,397 |
Acquired | 78,448 |
Fair value adjustment | 0 |
Currency translation adjustment | (825) |
Balance at end of period | 243,020 |
Customer Relationships [Member] | |
Finite-lived Intangible Assets [Roll Forward] | |
Balance at beginning of period | 207,674 |
Acquired | 331,900 |
Fair value adjustment | 0 |
Currency translation adjustment | (3,340) |
Balance at end of period | 536,234 |
In-Process Research and Development [Member] | |
Finite-lived Intangible Assets [Roll Forward] | |
Balance at beginning of period | 8,000 |
Acquired | 0 |
Fair value adjustment | 0 |
Currency translation adjustment | 0 |
Balance at end of period | $ 8,000 |
Intangible Assets - Summary of Estimated Amortization of Intangible Assets (Details) $ in Thousands |
Mar. 31, 2017
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2017 Remaining | $ 39,962 |
2017 | 84,966 |
2018 | 92,474 |
2019 | 90,091 |
2020 | 81,335 |
Thereafter | 238,649 |
Total | $ 627,477 |
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
Sep. 30, 2016 |
|
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated amortization | $ 151,777 | $ 151,777 | $ 124,869 | ||
Impairment of assets | 0 | $ 12,955 | |||
Impairments charges, fixed assets, intangibles and contractual commitment | 0 | $ 11,005 | 0 | 11,005 | |
Acquired Technology [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated amortization | 89,800 | 76,700 | 89,800 | 76,700 | |
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated amortization | $ 61,900 | $ 48,100 | $ 61,900 | $ 48,100 |
Stockholders' Equity - Additional Information (Details) - $ / shares |
Mar. 31, 2017 |
Sep. 30, 2016 |
Mar. 31, 2012 |
---|---|---|---|
Equity [Abstract] | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 | |
Common stock, shares authorized | 300,000,000 | 300,000,000 | |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | |
Class of Warrant or Right [Line Items] | |||
Unvested shares of restricted common stock excluded from outstanding shares | 2,170,663,000 | 1,707,695,000 | |
Common stock warrants per share (in usd per share) | $ 14.05 | ||
Common Stock [Member] | |||
Class of Warrant or Right [Line Items] | |||
Common stock warrants (in shares) | 1,281,358 | ||
Restricted Stock [Member] | |||
Class of Warrant or Right [Line Items] | |||
Unvested shares of restricted common stock excluded from outstanding shares | 200 | 3,300 |
Stockholders' Equity - Summary of Activity of Warrant Liability (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Movement in Warranty Liability [Roll Forward] | ||||
Balance at beginning of period | $ 38,253 | |||
Change in estimated fair value | $ 2,573 | $ 4,201 | 7,395 | $ 19,079 |
Balance at end of period | $ 45,648 | $ 45,648 |
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Numerator: | ||||
Loss from continuing operations | $ (134,267) | $ (12,045) | $ (136,438) | $ (28,815) |
Income from discontinued operations | 4,136 | 1,396 | 5,342 | 2,595 |
Net loss | (130,131) | (10,649) | (131,096) | (26,220) |
Net loss attributable to common stockholders | $ (130,131) | $ (10,649) | $ (131,096) | $ (26,220) |
Denominator: | ||||
Weighted average common shares outstanding-basic | 60,813,000 | 53,228,000 | 57,276,000 | 53,122,000 |
Weighted average common shares outstanding-diluted | 60,813,000 | 53,228,000 | 57,276,000 | 53,122,000 |
(Loss) earnings per share-basic: | ||||
Continuing operations (in usd per share) | $ (2.21) | $ (0.23) | $ (2.38) | $ (0.54) |
Discontinued operations (in usd per share) | 0.07 | 0.03 | 0.09 | 0.05 |
Income (loss) per share - basic (in usd per share) | (2.14) | (0.20) | (2.29) | (0.49) |
(Loss) earnings per share-diluted: | ||||
Continuing operations (in usd per share) | (2.21) | (0.23) | (2.38) | (0.54) |
Discontinued operations (in usd per share) | 0.07 | 0.03 | 0.09 | 0.05 |
Income (loss) per share - diluted (in usd per share) | $ (2.14) | $ (0.20) | $ (2.29) | $ (0.49) |
Number of antidilutive shares of common stock excluded from the calculation | 1,953 | 2,081 |
Restructurings - Summary of Costs Incurred and Remaining Balances Included in Accrued Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Restructuring Reserve [Roll Forward] | ||||
Balance as of beginning of period | $ 3,104 | |||
Acquired liability | 142 | |||
Current period expense | $ 469 | $ 851 | 1,757 | $ 1,008 |
Payments | (3,858) | |||
Balance as of end of period | $ 1,145 | $ 1,145 |
Restructurings - Additional Information (Details) $ in Millions |
Mar. 31, 2017
USD ($)
|
---|---|
Minimum [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Additional restructuring costs expects during the remainder of 2016 | $ 0.6 |
Maximum [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Additional restructuring costs expects during the remainder of 2016 | $ 1.6 |
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jan. 27, 2017 |
Nov. 25, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
Dec. 30, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation cost expected to be recognized | $ 76.4 | $ 76.4 | |||||
Compensation cost expected to be recognized, weighted-average period | 3 years | ||||||
Stock options outstanding (in shares) | 1,300,000 | 1,300,000 | |||||
Weighted-average exercise price per share (in usd per share) | $ 28.56 | $ 28.56 | |||||
Weighted-average remaining contractual term | 5 years 7 months 21 days | ||||||
Aggregate intrinsic value stock options outstanding | $ 26.9 | $ 26.9 | |||||
Stock value per share (in usd per share) | $ 36.79 | ||||||
Total intrinsic value of options exercised | $ 0.3 | $ 0.8 | $ 1.8 | $ 2.7 | |||
Restricted Stock, Restricted Stock Units and Performance-based Restricted Stock Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fair value of restricted stock units vesting | $ 10.0 | $ 15.7 | |||||
Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term of options granted | 7 years | ||||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term of options granted | 10 years | ||||||
Options Granted in November 2016 [Member] | Performance Based Employee Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 32.20% | ||||||
Options Granted in November 2016 [Member] | Non-Qualified Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation cost expected to be recognized, weighted-average period | 3 years | ||||||
Target price for common stock for recognition of unamortized compensation cost (in dollars per share) | $ 66.96 | ||||||
Shares granted | 310,000 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award Stock Option Grant Date Fair Value | $ 4.1 | ||||||
Term of vesting of options | 7 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.84% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ 40.25 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years | ||||||
Options Granted in January 2017 [Member] | Performance Based Employee Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 34.50% | ||||||
Options Granted in January 2017 [Member] | Non-Qualified Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation cost expected to be recognized, weighted-average period | 3 years | ||||||
Target price for common stock for recognition of unamortized compensation cost (in dollars per share) | $ 80.70 | ||||||
Shares granted | 10,000 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award Stock Option Grant Date Fair Value | $ 0.2 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.25% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ 46.28 | $ 46.28 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years | ||||||
2012 Omnibus Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for future grants | 16,400,000 | 16,400,000 | |||||
Employee Stock Purchase Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for future grants | 3,100,000 | 3,100,000 |
Share-Based Compensation - Effects of Stock-Based Compensation Expense Related to Stock-Based Awards to Employees and Non-Employees (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | $ 9,550 | $ 5,844 | $ 17,731 | $ 13,226 |
Cost of Revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | 679 | 493 | 1,399 | 950 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | 2,727 | 1,671 | 4,671 | 3,508 |
Selling, General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | $ 6,144 | $ 3,680 | $ 11,661 | $ 8,768 |
Share-Based Compensation - Summary of Restricted Stock, Restricted Stock Unit and Performance-based Restricted Stock Unit Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
6 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Sep. 30, 2016 |
|
Number of RSUs | ||
Balance at beginning of period (in shares) | 1,707,695 | |
Granted (in shares) | 1,034,362 | |
Vested and released (in shares) | (540,095) | |
Forfeited, canceled or expired (in shares) | (31,299) | |
Balance at end of period (in shares) | 2,170,663 | |
Weighted- Average Grate Date Fair Value | ||
Balance at beginning of period (in usd per share) | $ 32.76 | |
Granted (in usd per share) | 36.79 | |
Vested and released (in usd per share) | 26.91 | |
Forfeited, canceled or expired (in usd per share) | 33.53 | |
Balance at end of period (in usd per share) | $ 36.13 | |
Aggregate Intrinsic Value (in thousands) | $ 104,835 | $ 72,165 |
Income Taxes (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 31, 2017 |
Sep. 30, 2016 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
Dec. 30, 2016 |
|
Income Tax Disclosure [Abstract] | ||||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |||
Unrecognized tax benefit | $ 1,700,000 | $ 1,700,000 | $ 1,700,000 | |||
Income Tax Examination, Penalties and Interest Accrued | 0 | 0 | 0 | |||
Business Acquisition [Line Items] | ||||||
Income Tax Examination, Penalties and Interest Expense | 0 | $ 0 | ||||
Fi Best Limited [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Deferred income tax liability | 11,600,000 | 11,600,000 | $ 11,552,000 | |||
Net deferred income tax liability | 14,100,000 | 14,100,000 | ||||
Fi Best Limited [Member] | NOL and Tax Credit Carryforwards [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Deferred income tax asset | $ 2,500,000 | $ 2,500,000 |
Income Taxes Income Taxes - Additional Information (Details) $ in Millions |
Mar. 31, 2017
USD ($)
|
---|---|
Valuation Allowance [Line Items] | |
Valuation Allowances and Reserves, Balance | $ 88.0 |
Related Party Transactions (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Related Party Transaction [Line Items] | ||
Notice period to terminate agreement | 30 days | |
Public Company [Member] | ||
Related Party Transaction [Line Items] | ||
Other income-related party (less than) | $ 0.0 | $ 0.0 |
GaAs Labs [Member] | Stockholder [Member] | ||
Related Party Transaction [Line Items] | ||
Other income-related party (less than) | 0.0 | $ 0.0 |
Cadence [Member] | Public Company [Member] | ||
Related Party Transaction [Line Items] | ||
Other expense - related party | $ 1.5 |
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Supplemental Cash Flow Elements [Abstract] | ||
Unpaid amounts related to purchase of assets | $ 1.1 | $ 0.7 |
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information Regarding Non-cash Investing and Financing Activities (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
|
Supplemental Cash Flow Elements [Abstract] | ||
Consideration paid, equity instruments issued | $ 465,082 | $ 0 |
Cash paid for interest | 16,668 | 8,229 |
Cash (refunded) paid for income taxes | $ (720) | $ 722 |
Geographic and Significant Customer Information - Additional Information (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017
customer
|
Apr. 01, 2016
customer
|
Mar. 31, 2017
segment
customer
|
Apr. 01, 2016
customer
|
|
Segment Reporting [Abstract] | ||||
Number of reportable operating segment | segment | 1 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of major customers | customer | 10 | 10 | 10 | 10 |
Revenue [Member] | Customer Concentration Risk [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 56.00% | 66.00% | 57.00% | 64.00% |
Geographic and Significant Customer Information - Summary of Different Geographic Regions (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
Sep. 30, 2016 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue by Geographic Region | $ 186,084 | $ 133,579 | $ 337,836 | $ 249,353 | |
Long-Lived Assets by Geographic Region | 118,518 | 118,518 | $ 99,167 | ||
United States [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue by Geographic Region | 66,223 | 36,502 | 110,184 | 70,984 | |
Long-Lived Assets by Geographic Region | 97,873 | 97,873 | 79,832 | ||
CHINA | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue by Geographic Region | 39,859 | 34,565 | 87,337 | 65,284 | |
Asia Pacific [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue by Geographic Region | 65,288 | 52,444 | 115,040 | 94,180 | |
Long-Lived Assets by Geographic Region | 16,764 | 16,764 | 16,614 | ||
Other Countries [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue by Geographic Region | 14,714 | $ 10,068 | 25,275 | $ 18,905 | |
Long-Lived Assets by Geographic Region | $ 3,881 | $ 3,881 | $ 2,721 |
Geographic and Significant Customer Information - Summary of Customer Concentrations as Percentage of Revenue and Accounts Receivable (Details) - Customer Concentration Risk [Member] |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Mar. 31, 2017 |
Apr. 01, 2016 |
Mar. 31, 2017 |
Apr. 01, 2016 |
Sep. 30, 2016 |
|
Revenue [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Concentration risk, percentage | 56.00% | 66.00% | 57.00% | 64.00% | |
Revenue [Member] | Customer A [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Concentration risk, percentage | 11.00% | 17.00% | 16.00% | 16.00% | |
Revenue [Member] | Customer B [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Concentration risk, percentage | 10.00% | 11.00% | 11.00% | 12.00% | |
Revenue [Member] | Customer D [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Concentration risk, percentage | 7.00% | 12.00% | 7.00% | 12.00% | |
Revenue [Member] | Customer E [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Concentration risk, percentage | 3.00% | 10.00% | 4.00% | 10.00% | |
Accounts Receivable [Member] | Customer A [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Concentration risk, percentage | 10.00% | 13.00% | |||
Accounts Receivable [Member] | Customer B [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Concentration risk, percentage | 13.00% | 14.00% | |||
Accounts Receivable [Member] | Customer C [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Concentration risk, percentage | 12.00% | 1.00% | |||
Accounts Receivable [Member] | Customer D [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Concentration risk, percentage | 8.00% | 16.00% |
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