ANALYST DAY 2016
Leanne Sievers
Investor Relations
Safe Harbor
The presentations and discussions you will hear today, and the materials that will be presented, will contain
forward-looking statements based on MACOM management's beliefs and assumptions and on information
currently available to our management, which are subject to a number of important factors, risks, uncertainties,
assumptions and changes in circumstances that may cause those events or our actual activities or results to differ
materially from those expressed in any forward-looking statement. For a discussion of these risks, you should
read our filings with the SEC, including our Quarterly Report on Form 10-Q for the fiscal quarter ended January 1,
2016 and our Annual Report on Form 10-K for the fiscal year ended October 2, 2015. MACOM undertakes no
obligation to publicly update or revise any forward-looking statement, whether as a result of new information,
future events or otherwise.
ANALYST DAY 2016
John Croteau
President and Chief Executive Officer
Fortune Favors the Bold
ANALYST DAY 2016
Optical Component Vendors
100G Optical
Networks
GaN RF
Power
Silicon Vendors
SiGe InP OSA
SiPh GaAs MMICs
GaN EFT Tiles
Active
Antennas
RF & Microwave Vendors
100G
Drivers,
TIAs
CATV
MMICs
High Power
Switches
GaAs
PHEMT
Switches
Bipolar
RF Power
Transistors
AlGaAs,
HMIC PIN
Diodes
SAEFT
Photonic
ICs
Crosspoint
Switches
Low Power
SOI
Switches
GaAs
A&D
MMICs
LDMOS
Pulsed Power
Transistors
Etched
Facet
Lasers
100G Optical
GaN
Pulsed Power
Transistors
Microwave
Backhaul
MMICs
LDMOS
Basestation
Transistors
mmW
Backhaul
MMICs
LEGACY
GaN
RF Energy
Solutions
GaN
Basestation
Solutions
GaN
A&D
MMICs
Active
Antenna
Tiles
X/Ku-band
A&D
MMICs
RENAISSANCE
60 Years
Gallium Nitride (GaN)
Active Antennas
Quarterly Revenue by Adjusted GM1
$120
60%
Revenue ($Millions)
$100
42.4% CAGR
$80
$60
47.7%
$40
70%+
60% to 70%
$20
Below 60%
$0
Q412
22.5% CAGR
4.6% CAGR
Q116
1
Adjusted Gross Margin is a Non-GAAP measure and has been adjusted for the automotive business now reflected as discontinued
operations and other items. Please see the appendix for reconciliation to GAAP. Q116 excludes FiBest and Metelics/Aeroflex acquisitions.
Breakout Growth in High Margin New Products
Optical Component Vendors
100G Optical
Networks
GaN RF
Power
Silicon Vendors
SiGe InP OSA
SiPh GaAs MMICs
GaN EFT Tiles
Active
Antennas
RF & Microwave Vendors
Optical Component Vendors
100G Optical
Networks
SiGe InP OSA
SiPh GaAs MMICs
GaN EFT Tiles
Optical Component Vendors
100G Optical
Networks
SiGe InP OSA
SiPh GaAs MMICs
GaN EFT Tiles
Optical Component Vendors
100G Optical
Networks
SiGe InP OSA
SiPh GaAs MMICs
GaN EFT Tiles
Optical Component Vendors
100G Optical
Networks
SiGe InP OSA
SiPh GaAs MMICs
GaN EFT Tiles
Optical Component Vendors
100G Optical
Networks
SiGe InP OSA
SiPh GaAs MMICs
GaN EFT Tiles
GaN RF
Power
Silicon Vendors
SiGe InP OSA
SiPh GaAs MMICs
GaN EFT Tiles
SiGe InP OSA
SiPh GaAs MMICs
GaN EFT Tiles
Active
Antennas
RF & Microwave Vendors
Optical Component Vendors
100G Optical
Networks
GaN RF
Power
Silicon Vendors
SiGe InP OSA
SiPh GaAs MMICs
GaN EFT Tiles
Active
Antennas
RF & Microwave Vendors
Long Term Growth Model
400%
Active
Antennas
300%
GaN
200%
Optical
100%
RF & Microwave
2014
2015
2016
2017
2018
2019
2020
Years
Represents long-term growth targets that assume perfect execution on our current growth strategy, are forward-looking and subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many
of which are beyond the control of the Company and its management. Actual results will vary and those variations may be material. Nothing in this presentation should be regarded as a representation by any person that these goals will
be achieved and the Company undertakes no duty to update its goals.
Preet Virk
Vivek Rajgarhia
SVP and General Manager,
Networking
VP of Strategy,
High Speed Networking
Dr. Alex Behfar
Robert Dennehy
SVP, Chief Scientist and General Manager,
Photonic Solutions
SVP,
Operations
Greg Baker
Preet Virk
SVP and General Manager,
RF & Microwave
SVP and General Manager,
Networking
Thomas Hwang
SVP,
Global Sales
Jack Kennedy
Dr. Doug Carlson
SVP and General Manager,
Aerospace & Defense
VP of Strategy,
RF & Microwave
Bob McMullan
SVP and Chief Financial Officer
Mike Murphy
SVP,
Engineering
Mike Murphy
SVP, Engineering
Our Life Blood, Our People
ANALYST DAY 2016
100G
Drivers,
TIAs
CATV
MMICs
High Power
Switches
GaAs
PHEMT
Switches
Bipolar
RF Power
Transistors
AlGaAs,
HMIC PIN
Diodes
SAEFT
Photonic
ICs
Crosspoint
Switches
Low Power
SOI
Switches
GaAs
A&D
MMICs
LDMOS
Pulsed Power
Transistors
Etched
Facet
Lasers
100G Optical
GaN
Pulsed Power
Transistors
Microwave
Backhaul
MMICs
LDMOS
Basestation
Transistors
mmW
Backhaul
MMICs
LEGACY
GaN
RF Energy
Solutions
GaN
Basestation
Solutions
GaN
A&D
MMICs
Active
Antenna
Tiles
X/Ku-band
A&D
MMICs
RENAISSANCE
60 Years
Gallium Nitride (GaN)
Active Antennas
Newport Beach Team Building
MACOM’s 28th Engineering Conference
Portland
Corning
Cork
Shanghai
Newport Beach
Ithaca
Rhode Island
Belfast
Burlington
Sydney
Long Beach
Nice
RTP
Lowell
Tokyo
Santa Clara
16 Design Centers, One Team
Franchise Players
Control Their Destiny
Since 2013 32% CAGR in Filings
GaN
Lasers
mmWave
Heterolithic Packaging
632 Patents Issued
Portland
Corning
Cork
Shanghai
Newport
Beach
Ithaca
Rhode Island
Belfast
Photonic
Controls
Burlington
Long Beach
Sydney
RTP
Santa
Clara
Corning
Lowell
Nice
Tokyo
Santa Clara
We Retain Nearly 100% of Key Personnel
Optical Component Vendors
Silicon Vendors
RF & Microwave Vendors
Optical Component Vendors
Silicon Vendors
RF & Microwave Vendors
Preet Virk
SVP and General Manager, Networking
Optical:
Mission Accomplished
ANALYST DAY 2016
FTTx/PON
Backhaul
Metro
Long Haul
Data Center
High Performance Analog Revenue
Photonic Solutions Revenue
57% Growth
Revenue
Revenue
62% Growth
FY14
FY15
Source: Internal MACOM
FY14
FY15
Source: Internal MACOM
FTTx/PON
Backhaul
Metro
Long Haul
Data Center
100G Coherent Port Count
450K
400K
Flagship Product
350K
300K
250K
Metro
200K
Long Haul
150K
100K
50K
0K
2014 2015 2016 2017 2018 2019 2020
Years
Source: MACOM Estimates Based on Internal and External (Infonetics)
MAOM-03409B
Quad Modulator Driver for CFP2 ACO
Indium Phosphide
Industry‘s Lowest Power Dissipation
FTTx/PON
Backhaul
Metro
Long Haul
Data Center
Total PON ONTs/ONUs
Flagship Products
120
M02180
10G SiGe laser driver for PON
Integrated CDR, APD DC-DC controller, EEPROM and DDMI
Industry’s lowest power
Units in Millions
100
80
10G-PON
GPON
EPON
60
M02027
2.5G TIA for GPON ONU
Best-in-class sensitivity and overload performance
Industry’s lowest power
40
131D-02E-VCT11-501
20
2.5G 1310nm DFB Laser for GPON
Indium Phosphide
Etch Facet Technology (EFT)
0
2013 2014 2015 2016 2017 2018 2019
Years
Source: Infonetics, Ovum and MACOM Internal Estimates
131F-10I-LT5K1C-S
10G 1310nm FP Laser for Mobile 4G-LTE Front/Backhaul
Indium Phosphide
Etch Facet Technology (EFT)
Optical Component Vendors
100G Optical
Networks
SiGe InP OSA
SiPh GaAs MMICs
GaN EFT Tiles
Vivek Rajgarhia
VP of Strategy, High Speed Networking
Datacenters:
Riding the Tsunami
ANALYST DAY 2016
Datacenter Traffic
Datacenter Traffic (2018)
Zettabytes per year
10
8
8.6
17%
7.1
6
Data
Center-to-Data Center 8.5%
5.8
4
2
Data
Center-to-User
4.7
3.1
3.8
74.5%
Within
Data Center
0
2013
2014
2015
2016
2017
2018
Years
Source: Cisco Global Cloud Index, 2013–2018
Source: Cisco Global Cloud Index
4x
1/8x
1/5x
Density
Power
Cost
CFP
400Gb
Cost Per Bit
4x
Speed Integration
CFP2
800Gb
CFP4/QSFP28
3200Gb
Source: LightCounting
CFP
24 W
CFP2
12 W
CFP4 / QSFP28
5 W / 3.5 W
SFP28
Onboard
Optics
Optical Component Vendors
100G Optical
Networks
SiGe InP OSA
SiPh GaAs
EFT
Etched Facet Laser
Silicon Photonics
Laser
Quad L-PIC
Photonic Controls
100G Telecom Transceiver
Assembly
100G Datacenter Transceiver
Photonics
Assembly
Packaging
Packaging
Photonics
Optoelectronics
Optoelectronics
Quad L-PIC
Integrated
Quad Driver
and CDR
Integrated
TIA and CDR
We are Attacking All Aspects of Transceiver Cost Structure
Long Term Growth Model
400%
300%
200%
Optical
100%
RF & Microwave
2014
2015
2016
2017
2018
2019
2020
Years
Represents long-term growth targets that assume perfect execution on our current growth strategy, are forward-looking and subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are
beyond the control of the Company and its management. Actual results will vary and those variations may be material. Nothing in this presentation should be regarded as a representation by any person that these goals will be achieved and the
Company undertakes no duty to update its goals.
Dr. Alex Behfar
SVP, Chief Scientist and General Manager,
Photonic Solutions
Photonics:
Changing the Economics of
100G in Datacenters
ANALYST DAY 2016
The Connectivity Challenge
MIPS/CPU Clock Speed
103
102
101
100
1980 1985 1990 1995 2000 2005 2010
The Connectivity Challenge in
Datacenters
Long Haul
10km - 300km
Metro
Photonic Integrated Circuits
2km - 10km
Datacenter
3m - 2km
Copper
Copper
Backplane
50cm - 3m
VCSEL
Board
10 - 50cm
1Mbps
1Tbps
1Gbps
1Pbps
Data Rate
Source: ST Micro/MACOM Internal Estimates
PICs Will Permeate Everything from Backplane to Long Haul
Laser
Quad PIC
Photonic Controls
Laser
Quad L-PIC
Up to 80% Coupling of Light
Self Aligned Etched Facet Technology (SAEFT)
Attachment of InP to Silicon
Maturity
Alignment
Intel
MACOM
Avago/Mitsubishi
Hybrid Silicon Laser
Etched Facet Laser
Cleaved Facet Laser
Glass-glue Fuses InP to Silicon
Flip Chip Mounting
Flip Chip Mounting
Research
~100M Devices Shipped
100’s of Millions of Devices
Shipped
Alignment Free
Self Aligned
Manual Alignment
SAEFT Uses Proven Laser and Flip Chip Techniques
to Deliver Breakthrough Cost Benefits
MAOP-L284CN
100G CWDM Quad L-PIC for Datacenters
Robert Dennehy
SVP, Global Operations
Scaling Capacity:
Welcome to the Big Leagues
ANALYST DAY 2016
2.5 G NFF DFB Lasers
11,000,000
Lasers Shipped
10,000,000
9,000,000
8,000,000
Ithaca
Lowell
3 inch
4 inch
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
CYQ4 CYQ1 CYQ2 CYQ3 CYQ4 CYQ1
2014 2015 2015 2015 2015 2016
Laser Capacity Quadrupled in 12 Months
Datacenters
4G LTE Basestations
FTTx/PON
5G Active Antennas
We Are Now a Proven Strategic Vendor
Gross Margin Progression
Adjusted Gross Margin
60%
55%
50%
57.5
54.3
45%
60.0
48.4
40%
FY 2013
FY 2014
FY 2015
Q1 FY 2016
Years
1
Adjusted Gross Margin is a Non-GAAP measure and has been adjusted for the automotive business now reflected as discontinued operations and other items.
Please see the appendix for reconciliation to GAAP. Q116 excludes FiBest and Metelics/Aeroflex acquisitions
Materials
Wafer Processing
Assembly/Test
Silicon Ingot
6”-8” Wafer Fabs
Scalable High Volume
SiC Boules
4” Wafer Fabs
Boutique
MACOM GaN
GaN SiC
MACOM GaN Enables Requisite Cost and Capacity
2016
Process Freeze
Qualification Lots Fab
Process Qualification
Product Qualification
Product Release
Production Ready
Production Ready
Product
Sampling
Process
Freeze
Pre Series
Production
Qualification
Completion
We Remain on Track For Summer 2016 Production
ANALYST DAY 2016
Preet Virk
SVP and General Manager, Networking
Wireless Basestations:
The Tipping Point
ANALYST DAY 2016
Suppliers:
Buyers:
Basestation RF Power Sales
Basestation RF Power Spend
11%
8%
NXP (FSL)
9%
45%
9%
32%
Ampleon (China)
Infineon
35%
Huawei
Others
Dominated by two LDMOS suppliers
Source: Internal MACOM
Nokia (ALU)
Ericsson
ZTE
24%
Samsung
25%
Others
Dominated by three buyers
Source: Internal MACOM
Pre LTE Bands
4G/LTE Bands
LTE and Future Bands
Up to 1.8GHz
1.8GHz to 2.6GHz
> 2.6GHz
Primarily LDMOS
GaN sweet spot
All GaN
GaN at ‘right’ cost
Most new deployments
No LDMOS play
MACOM GaN Covers All Frequency Bands
Requirement
Power Efficiency
70% or greater
Frequency Range
1.8 – 3.8GHz
Gain
Power Levels
19dB or greater
120 – 320W; up to 700W
Video BW
200MHz
Linearity
DPD friendly
Packages
Ceramic + Plastic (Earless)
Local Support
Basestation Expert
MACOM GaN








Customer Validation is Complete
LDMOS
Power Amp Efficiency ”>2GHz”
MACOM GaN
GaN on SiC
Benefits
>10%
Improvement
>10%
Improvement
Lower Operating Expense
New Spectrum Deployments
Higher Frequency Bands
1.8 GHz
Up to >3.8 GHz
Up to >3.8 GHz
Wider Bandwidths
100 MHz
200 MHz
200 MHz
Higher Capacity per Basestation
Power Density
1-1.5 W/mm
4-6 W/mm
4-8 W/mm
Smaller Antenna, Lower CapEx
Linearity
DPD Friendly
DPD Friendly
Charge Trapping
8”
Up to 8”
4” 6”
Silicon
Silicon
SiC
Supply Chain
Cost
Higher Order Modulation Schemes
Capacity and Surge Capability
LDMOS Like Cost Structure
GaN Performance at LDMOS Cost Structures
US Team
ERICSSON
ERICSSON
ERICSSON
US Team
China Team
China Team
“Been There, Done That”
GaN RF
Power
Silicon Vendors
SiGe InP OSA
SiPh GaAs MMICs
GaN EFT Tiles
Greg Baker
SVP and General Manager, RF & Microwave
RF Energy:
Pouring It On
ANALYST DAY 2016
RF Energy TAM Estimates
$1,600
High
Market TAM ($Millions)
$1,400
$1,200
Medium
$1,000
$800
$600
Low
$400
4 inch
6 inch
$200
$0
2015
2016
2017
Years
Source: Sun Trust
2018
2019
2020
Less than
$0.05/Watt
8 inch
Applications
Heating
Radar
Microwave Oven
Industrial Oven
1910
1940
1970
2010
Vacuum Tubes
Magnetron
Technologies
Solid State
RF Cooking
and Heating
10x Longer Operating Life
RF Drying
RF High Bay
and Street Lighting
50% More Efficient Than Traditional HID Lamps
RF Tumor Ablation
Automotive Ignition Systems
10% Improved Fuel Efficiency
MACOM RF Energy Portfolio (2.45 GHz)
Type Number
Power
Gain
Efficiency
Package
MAGE-100027-50C0P
50W
17dB
>70%
TO272-2
MAGE-100027-100C0P
100W
17dB
>70%
TO272-2
MAGE-100027-200C0P
200W
17dB
>70%
TO272-4
MAGE-100027-300C0P
300W
17dB
>70%
TO272-4
TO272-2
TO272-4
US Team
China Team
US Team
China Team
Accelerating Down the Learning Curve
Power Amp Efficiency
Power Density
LDMOS
MACOM GaN
GaN on SiC
<60%
>70%
>70%
1-1.5 W/mm
4-6 W/mm
4-8 W/mm
200V BV, 100 yr.
MTTF at 200C Tj
200V BV, 100 yr.
MTTF at 200C Tj
8” wafers
Up to 8”
4” 6” wafers
Silicon
Silicon
SiC
BV, <100 Yr.
Ruggedness/Reliability 65-100V
MTTF at 175C Tj
Supply Chain
Cost
Benefits
Heat Dissipation and Energy
Consumption
Smaller Size
Longer Operating Life
Capacity for Mainstream Applications
Hits $0.05/Watt
Uniquely Positioned to Enable the RF Energy Market
RF Energy TAM Estimates
Basestation and RF Energy TAM
$1,600
$2,000
High
$1,200
Medium
$1,000
$800
$600
Low
$400
$200
$0
2015
$1,600
$1,400
RF Energy
$1,200
$1,000
$800
$600
Basestation
$400
$200
2016
2017
Years
Source: Sun Trust
$1,800
Market TAM ($Millions)
Market TAM ($Millions)
$1,400
2018
2019
2020
$0
2015
2016
2017
2018
Years
Source: Sun Trust, EJL Wireless and Internal MACOM Estimates
2019
2020
Long Term Growth Model
400%
300%
GaN
200%
Optical
100%
RF & Microwave
2014
2015
2016
2017
2018
2019
2020
Years
Represents long-term growth targets that assume perfect execution on our current growth strategy, are forward-looking and subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are
beyond the control of the Company and its management. Actual results will vary and those variations may be material. Nothing in this presentation should be regarded as a representation by any person that these goals will be achieved and the
Company undertakes no duty to update its goals.
Thomas Hwang
SVP, Global Sales
Demand Creation:
Where the Rubber Hits the Road
ANALYST DAY 2016
Optical Component Vendors
Silicon Vendors
RF & Microwave Vendors
Optical Component Vendors
Silicon Vendors
RF & Microwave Vendors
Paul Wilson
Silicon Vendors
Optical Component Vendors
Ali Abouzari
Long-term Strategic Partnerships
Cork
Shanghai
Rhode Island
ERICSSON
ERICSSON
Taiwan
Belfast
Long Beach
Lowell
Tokyo
Raising the Stakes in Customer Engagement
ANALYST DAY 2016
Dr. Doug Carlson
Vice President of Strategy, RF & Microwave
Active Antennas:
We Aren’t in Kansas Anymore
ANALYST DAY 2016
OLD
NEW
OLD
NEW
OLD
NEW
MACOM GaAs and GaN High Power Amplifiers
MACOM GaAs
MACOM Silicon CMOS
MACOM Proprietary Diode Technology
Proven in the field
Potential Demand in Excess of 275,000 SPAR Tiles
mmWave Small Cells
5G Basestations
Internet in the Sky
Active Antennas Transcend A&D
Deployed in the field today
Jack Kennedy
SVP and General Manager, Aerospace & Defense
Defense Programs:
Locked on to Airborne,
Sea- and Ground-based Targets
ANALYST DAY 2016
SPAR Tile Market Opportunity
Military MMIC Market
$4,500
$600
$4,000
$500
$3,000
AESA TAM
$2,500
$2,000
$1,500
$1,000
Tile SAM
$500
$0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Market ($Million)
Market ($Million)
$3,500
$400
Communications
$300
Radar
$200
$100
Electronic Warfare
$0
2014 2015 2016 2017 2018 2019
Years
Source: Strategy Analytics and Internal MACOM Estimates
Years
Source: Strategy Analytics
100G
Drivers,
TIAs
CATV
MMICs
High Power
Switches
GaAs
PHEMT
Switches
Bipolar
RF Power
Transistors
AlGaAs,
HMIC PIN
Diodes
SAEFT
Photonic
ICs
Crosspoint
Switches
Low Power
SOI
Switches
GaAs
A&D
MMICs
LDMOS
Pulsed Power
Transistors
Etched
Facet
Lasers
100G Optical
GaN
Pulsed Power
Transistors
Microwave
Backhaul
MMICs
LDMOS
Basestation
Transistors
mmW
Backhaul
MMICs
LEGACY
GaN
RF Energy
Solutions
GaN
Basestation
Solutions
GaN
A&D
MMICs
Active
Antenna
Tiles
X/Ku-band
A&D
MMICs
RENAISSANCE
60 Years
Gallium Nitride (GaN)
Active Antennas
OLD: Brick/Slat
NEW: Tile
SPAR Tiles Spearhead the DoD Better Buying Power Initiative
Naval Volume Search Radar
Expeditionary
Ground Based Radar
Fixed Ground Based Radar
Deployed in the field today
Active
Antennas
RF & Microwave Vendors
Long Term Growth Model
400%
Active
Antennas
300%
GaN
200%
Optical
100%
RF & Microwave
2014
2015
2016
2017
2018
2019
2020
Years
Represents long-term growth targets that assume perfect execution on our current growth strategy, are forward-looking and subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are
beyond the control of the Company and its management. Actual results will vary and those variations may be material. Nothing in this presentation should be regarded as a representation by any person that these goals will be achieved and the
Company undertakes no duty to update its goals.
ANALYST DAY 2016
Bob McMullan
SVP and Chief Financial Officer
Financial Overview
ANALYST DAY 2016
Financial Performance (Adjusted)1
FY2015
FY2014
Growth
Revenue
$420.6
$338.1
24%
Gross Margin
57.5%
54.3%
320bps
Operating Income
$96.9
$63.1
54%
EPS
$1.28
$0.91
41%
1All figures
above are Non-GAAP measures adjusted for the automotive business now reflected as discontinued operations and other items. See
reconciliation to GAAP on last page of Analyst Day 2016 slide deck. Dollar figures in millions except per share data.
Long Term Growth Model
400%
Active
Antennas
300%
Active Antennas
GaN
200%
Optical
GaN
100%
RF & Microwave
2014
2015
2016
Years
2017
2018
2019
2020
Optical
Represents long-term growth targets that assume perfect execution on our current growth strategy, are forward-looking and subject to significant business, economic, regulatory
and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management. Actual results will vary and those variations may be
material. Nothing in this presentation should be regarded as a representation by any person that these goals will be achieved and the Company undertakes no duty to update its
goals.
Target Financial Operating Model1
Revenue +20% Growth
Adjusted
60%
Gross Margin
Adjusted
30% ⟶ 40%
Operating Margin
Free Cash Flow2 60% Proforma Net Income
1 All figures below are Non-GAAP measures
adjusted for the automotive business now reflected as discontinued operations and
other items. See reconciliation to GAAP on last page of Analyst Day 2016 slide deck. Dollar figures in millions except per share
date.
2Capital
Expenditures – 5% of Revenue
Operating Margins – 30% of Revenue
Non-GAAP to GAAP Net Income ($Millions)
Non-GAAP Net Income (54% Growth ↑)
GAAP Adjustments:
Discontinued Operations
Nitronex pooling pre-acquisition date
Intangible amortization expense
Non-cash compensation expense
Equity-based compensation
Non-cash-impairment investment
Contingent consideration
Restructuring charges
Non-cash warrant liability (gain) expense
Non-cash interest expense
Acquisition FMV step-up
Litigation related costs
Integration costs and synergies savings
Acquisition transaction expenses
Tax effect adjustments
Transition services for divested businesses
GAAP Net Income (Loss)
Acquisition related non-cash
Acquisition related cash expense
GAAP Net Income (Loss)
Acquisition related non-cash
Acquisition related cash expense
FY 2015
$68.1
FY2014
$44.1
$54.1
$9.5
$(3.1)
$(20.1)
$(11.0)
$(1.0)
$(39.0)
$(28.7)
$(2.6)
$(3.5)
$1.7
$(1.3)
$(6.0)
$(1.7)
$(7.1)
$(0.9)
$(2.4)
$(4.4)
$21.9
$0.4
$(19.5)
$48.6
$46.1
$ 6.0
$48.6
$(15.4)
$46.1
$42.7
$ 6.0
$31.5
$(14.8)
$(3.9)
$(3.0)
$(19.7)
$(1.6)
$(15.3)
$(4.5)
$25.8
$3.1
$(59.5)
$(15.4)
$42.7
$31.5
Source: Earnings Press Release Reconciliation and 10-K GAAP Cash Flow Statement
Tax Effect ($Millions)
FY 2015
FY2014
Actual Cash Taxes Paid
$22.6 (1)
$4.7
Non-GAAP Tax Expense
$12.0
$9.7
Cash (Used) Generated
$(10.6)
$5.0
Source: 10-K Financial Notes
1 FY2015
taxes 12% total income including gain of the sale of the auto business
Cash Flow From Operations ($Millions)
Acquisition Purchase Price Delta
FY 2015
FY2014
Cash Paid for Acquisitions
BinOptics
$230
Total Cash Outflow Acquisition
$230
$272
$26
$4
$302
Acquisition of Business, net
$208
$260
Allocated to net working capital included
cash flow from operations
$22
$42
Mindspeed
Nitronex
Others
Source: MACOM Earnings Press Releases and 10-K Cash Flow From Operations
Disciplined Consolidator and Proven Integrator
Reconciliation of GAAP to Non-GAAP Results
(Unaudited and in Thousands, Except per Share Data)
MTSI Stock Progression
45
40
35
30
May 29th 2014 :
Analyst Day
MTSI: $17.85
25
20
15
MTSI (NASDAQ) Stock Price as of February 26, 2016 close of market.
February 26th 2016:
MTSI: $37.25
Long Term Growth Model
400%
Active
Antennas
300%
GaN
200%
Optical
100%
RF & Microwave
2014
2015
2016
2017
2018
2019
2020
Years
Represents long-term growth targets that assume perfect execution on our current growth strategy, are forward-looking and subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many
of which are beyond the control of the Company and its management. Actual results will vary and those variations may be material. Nothing in this presentation should be regarded as a representation by any person that these goals will
be achieved and the Company undertakes no duty to update its goals.
ANALYST DAY 2016