MACOM Technology Solutions Holdings, Inc.
For the period ended Jul 4, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 4, 2025 · Filed Aug 7, 2025
MTSI$210.98+10.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-04-04; filed 2025-05-08.
0001493594-25-000029
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-07-04; filed 2025-08-07.
0001493594-25-000038
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 71 previous paragraphs and 74 current paragraphs.
44 unchanged; 25 reworded; 5 added; 1 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Income taxes
Current report
We are required to estimate our income taxes in each of the jurisdictions in which we operate. This process involves estimating our current tax exposure and assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within our Consolidated Balance Sheets. We then assess the likelihood that our deferred tax assets will be recovered from future taxable income within the relevant jurisdiction. To the extent we believe that recovery is not likely, we must establish a valuation allowance. We provide valuation allowances for certain deferred tax assets where it is more likely than not that any portion will not be realized.
Current report
The application of tax laws and regulations to calculate our tax liabilities is subject to legal and factual interpretation, judgment and uncertainty in a multitude of jurisdictions. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations, including the July 4, 2025 Bill, as well as court rulings. We recognize potential liabilities for anticipated tax audit matters in the United States and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes and interest will be due. We record an amount as an estimate of probable additional income tax liability at the largest amount that we feel is more likely than not, based upon the technical merits of the position, to be sustained upon audit by the relevant tax authority.
Current report
The Company is currently evaluating the impact of the July 4, 2025 Bill and does not believe there will be any significant impact to the current fiscal year ending October 3, 2025. The July 4, 2025 Bill restores the ability to deduct applicable research and development costs in the year they are incurred and no longer requires the deferral and amortization of these costs over five years, among other changes. We anticipate this change will impact the Company beginning in our fiscal year ending October 2, 2026. The July 4, 2025 Bill permits the acceleration of any unamortized balance of domestic research and development expenses which were previously deferred. In addition, the July 4, 2025 Bill increases the ITC relating to the CHIPS Act from 25% to 35% for qualifying assets placed into service after December 31, 2025.
Current report
We anticipate our capital expenditures for our fourth fiscal quarter ending October 3, 2025 to be in the range of $17.0 million to $23.0 million, which includes the purchase of approximately $12.0 million of production-related equipment to expand capacity at the RTP Fab.
Removed paragraphs (1)
Previous report
(2) There were no acquisition-related transaction costs for the three months ended April 4, 2025. The three months ended March 29, 2024 include $0.7 million of acquisition-related transaction costs. The six months ended April 4, 2025 and March 29, 2024 include less than $0.1 million and $7.7 million, respectively, of acquisition-related transaction costs.
Reworded paragraphs (25)
Previous wording
This Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of this Quarterly Report on Form 10-Q contain “forward-looking statements.” In addition, we may make other written and oral communications from time to time that contain such statements. Forward-looking statements include statements regarding our business outlook, strategic plans and priorities, expectations, anticipated drivers of future revenue growth, our ability to develop new products, achieve market acceptance of those products and better address certain markets, expand our capabilities and extend our product offerings, including through the RF Business Acquisition and the ENGIN-IC acquisition, risks related to any weakening of global economic conditions, including as a result of the evolving impacts from tariffs, sanctions or other trade tensions (including implementation of new tariffs or retaliatory trade measures), industry trends, our strategic investment plan, including negotiation and finalization of a definitive agreement with, and receipt of funding from the Federal and State governments, our estimated annual effective tax rate, our plans for use of our cash and cash equivalents and short-term investments, interest rate and foreign currency risks, our ability to meet working capital requirements, estimates and objectives for future operations, our future results of operations and our financial position, including liquidity, and other matters that do not relate strictly to historical facts. Forward-looking statements generally may be identified by terms such as “anticipates,” “believes,” “could,” “continue,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “seeks,”
Current wording
This Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of this Quarterly Report on Form 10-Q contain “forward-looking statements.” In addition, we may make other written and oral communications from time to time that contain such statements. Forward-looking statements include statements regarding our business outlook, strategic plans and priorities, expectations, anticipated drivers of future revenue growth, our ability to develop new products, achieve market acceptance of those products and better address certain markets, expand our capabilities and extend our product offerings, including through the ENGIN-IC acquisition and the RF Business Acquisition, including our ability to effectively integrate the RTP Fab, risks related to any weakening of global economic conditions, including as a result of the evolving impacts from tariffs, sanctions or other trade tensions (including implementation of new tariffs or retaliatory trade measures), the impact of the July 4, 2025 Bill on our business, industry trends, our strategic investment plan, including negotiation and finalization of a definitive agreement with, and receipt of funding from the Federal and State governments, our estimated annual effective tax rate, our plans for use of our cash and cash equivalents and short-term investments, interest rate and foreign currency risks, our ability to meet working capital requirements, estimates and objectives for future operations, our future results of operations and our financial position, including liquidity, and other matters that do not relate strictly to historical facts. Forward-looking statements generally may be identified by terms such as “anticipates,” “believes,” “could,” “continue,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “should,” “targets,” “will,” “would” or similar expressions or variations or the negatives of those terms. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described in the section entitled “Risk Factors” in this Quarterly Report on Form 10-Q and the 2024 Annual Report on Form 10-K. We caution the reader to carefully consider such factors. Furthermore, such forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.
Previous wording
We design, develop and manufacture differentiated semiconductor products and solutions for the Industrial and Defense (“I&D”), Data Center and Telecommunications (“Telecom”) industries for customers who demand high performance, quality and reliability. We are headquartered in Lowell, Massachusetts, with operational facilities throughout North America, Europe and Asia. We have more than 70 years of application expertise, combined with expertise in analog and mixed signal circuit design, compound semiconductor fabrication (including gallium arsenide (GaAs), gallium nitride (GaN), indium phosphide (InP) and specialized silicon), advanced packaging and back-end assembly and test. We offer a broad portfolio of thousands of standard and custom devices, which include integrated circuits (IC), multi-chip modules (MCM), diodes, amplifiers, switches and switch limiters, passive and active components and radio frequency (RF) and optical subsystems, which make up dozens of product lines that service over 6,000 end customers in our three primary markets. Our products are electronic components that our customers generally incorporate into larger electronic systems, such as wireless basestations, high-capacity optical networks, data center networks, radar, medical systems, satellite networks and test and measurement applications. Our primary end markets are: (1) I&D, which includes military and commercial radar, RF jammers, electronic countermeasures, communication data links, satellite communications (“SATCOM”) and various wired and wireless multi-market applications, which include industrial, medical, test and measurement and scientific applications; (2) Data Center, which includes intra-Data Center, Data Center Interconnect (DCI) applications, at 100G, 200G, 400G, 800G, 1.6T and higher speeds, enabled by our broad portfolio of analog ICs and photonic components for high speed connectivity customers; and (3) Telecom, which includes carrier infrastructure such as long-haul/metro, 5G and 6G infrastructure, satellite communications and Fiber-to-the-X (FTTx)/passive optical network (PON), among others.
Current wording
We design, develop and manufacture differentiated semiconductor products and solutions for the Industrial and Defense (“I&D”), Data Center and Telecommunications (“Telecom”) industries for customers who demand high performance, quality and reliability. We are headquartered in Lowell, Massachusetts, with operational facilities throughout North America, Europe and Asia. We have more than 70 years of application expertise, combined with expertise in analog and mixed signal circuit design, compound semiconductor fabrication (including gallium arsenide (GaAs), gallium nitride (GaN), indium phosphide (InP) and specialized silicon), advanced packaging and back-end assembly and test. We offer a broad portfolio of thousands of standard and custom devices, which include integrated circuits (IC), multi-chip modules (MCM), diodes, amplifiers, switches and switch limiters, passive and active components and radio frequency (RF) and optical subsystems, which make up dozens of product lines that service over 6,000 end customers in our three primary markets. Our products are electronic components that our customers generally incorporate into larger electronic systems, such as wireless basestations, high-capacity optical networks, data center networks, radar, medical systems, satellite networks and test and measurement applications. Our primary end markets are: (1) I&D, which includes military and commercial radar, RF jammers, electronic countermeasures, communication data links, space-related electronics and various wired and wireless multi-market applications, which include industrial, medical, test and measurement and scientific applications; (2) Data Center, which includes intra-Data Center, Data Center Interconnect (DCI) applications, at 100G, 200G, 400G, 800G, 1.6T and higher speeds, enabled by our broad portfolio of analog ICs and photonic components for high speed connectivity customers; and (3) Telecom, which includes carrier infrastructure such as long-haul/metro, 5G and 6G infrastructure, satellite communications (“SATCOM”) and Fiber-to-the-X (FTTx)/passive optical network (PON), among others.
Previous wording
We expect our revenue in the I&D market to be driven by the expanding product portfolio that we offer which services applications such as test and measurement, satellite communications, civil and military radar, industrial, automotive, scientific and medical applications, further supported by growth in applications for our multi-market catalog products.
Current wording
We expect our revenue in the I&D market to be driven by the expanding product portfolio that we offer which services applications such as test and measurement, space-related electronics, civil and military radar, industrial, automotive, scientific and medical applications, further supported by growth in applications for our multi-market catalog products.
Previous wording
We expect our revenue in the Telecom market to be driven by 5G deployments, with continued upgrades and expansion of communications equipment, satellite communications networks and increasing adoption of our high-performance RF, millimeter wave, optical and photonic components.
Current wording
We expect our revenue in the Telecom market to be driven by 5G deployments, with continued upgrades and expansion of communications equipment, SATCOM networks and increasing adoption of our high-performance RF, millimeter wave, optical and photonic components.
Previous wording
Comparison of the Three and Six Months Ended April 4, 2025 to the Three and Six Months Ended March 29, 2024
Current wording
Comparison of the Three and Nine Months Ended July 4, 2025 to the Three and Nine Months Ended June 28, 2024
Previous wording
Revenue. Our revenue increased by $54.7 million, or 30.2%, to $235.9 million for the three months ended April 4, 2025, from $181.2 million for the three months ended March 29, 2024, and our revenue increased by $115.6 million, or 34.2%, to $454.0 million for the six months ended April 4, 2025, from $338.4 million for the six months ended March 29, 2024. The increase in revenue in the three and six months ended April 4, 2025 is described by end market in the following paragraphs.
Current wording
Revenue. Our revenue increased by $61.6 million, or 32.3%, to $252.1 million for the three months ended July 4, 2025, from $190.5 million for the three months ended June 28, 2024, and our revenue increased by $177.2 million, or 33.5%, to $706.1 million for the nine months ended July 4, 2025, from $528.9 million for the nine months ended June 28, 2024. The increase in revenue in the three and nine months ended July 4, 2025 is described by end market in the following paragraphs.
Previous wording
In the three months ended April 4, 2025, our I&D market revenue increased by $7.7 million, or 8.4%, compared to the three months ended March 29, 2024. In the six months ended April 4, 2025, our I&D market revenue increased by $28.1 million, or 16.7%, compared to the six months ended March 29, 2024. The increase in the three months ended April 4, 2025 was primarily driven by an increase in defense program revenue, partially offset by lower sales of legacy products for industrial markets. The increase in the six months ended April 4, 2025 was primarily driven by incremental revenue from the RF Business Acquisition, partially offset by lower sales of legacy products for industrial markets.
Current wording
In the three months ended July 4, 2025, our I&D market revenue increased by $17.3 million, or 19.0%, compared to the three months ended June 28, 2024. In the nine months ended July 4, 2025, our I&D market revenue increased by $45.4 million, or 17.5%, compared to the nine months ended June 28, 2024. The increase in the three months ended July 4, 2025 was primarily driven by an increase in defense program revenue and higher sales of legacy products for industrial markets. The increase in the nine months ended July 4, 2025 was primarily driven by revenue growth from defense programs, partially offset by lower sales of legacy products for industrial markets.
Previous wording
In the three months ended April 4, 2025, our Data Center market revenue increased by $29.0 million, or 67.3%, compared to the three months ended March 29, 2024. In the six months ended April 4, 2025, our Data Center market revenue increased by $44.8 million, or 48.4%, compared to the six months ended March 29, 2024. The increase in the three and six months ended April 4, 2025 was primarily driven by an increase in sales of high-performance analog Data Center products primarily supporting high speed data rates from 100G up to 1.6T.
Current wording
In the three months ended July 4, 2025, our Data Center market revenue increased by $26.8 million, or 54.7%, compared to the three months ended June 28, 2024. In the nine months ended July 4, 2025, our Data Center market revenue increased by $71.6 million, or 50.6%, compared to the nine months ended June 28, 2024. The increase in the three and nine months ended July 4, 2025 was primarily driven by an increase in sales of high-performance analog Data Center products and fees primarily supporting high speed data rates from 100G up to 1.6T.
Previous wording
In the three months ended April 4, 2025, our Telecom market revenue increased by $18.0 million, or 38.1%, compared to the three months ended March 29, 2024. In the six months ended April 4, 2025, our Telecom market revenue increased by $42.8 million, or 54.9%, compared to the six months ended March 29, 2024. The increase in the three months ended April 4, 2025 was primarily driven by an increase in sales of products for 5G and Satcom applications. The increase in the six months ended April 4, 2025 was primarily driven by an increase in sales of products for 5G and Satcom applications and recent acquisitions.
Current wording
In the three months ended July 4, 2025, our Telecom market revenue increased by $17.5 million, or 34.6%, compared to the three months ended June 28, 2024. In the nine months ended July 4, 2025, our Telecom market revenue increased by $60.2 million, or 46.9%, compared to the nine months ended June 28, 2024. The increase in the three months ended July 4, 2025 was primarily driven by an increase in sales of products for 5G and SATCOM applications. The increase in the nine months ended July 4, 2025 was primarily driven by an increase in sales of products for 5G and SATCOM applications and recent acquisitions.
Previous wording
Certain sectors of our end markets continue to be negatively impacted by macroeconomic and geopolitical conditions, which we expect may result in weaker near-term demand for our products across all three of our primary markets. In addition, we could be negatively affected by any weakening of global economic conditions, including as result of the evolving impacts from tariffs, sanctions or other trade tensions (including implementation of new tariffs or retaliatory trade measures).
Current wording
Certain areas of our end markets continue to be negatively impacted by macroeconomic and geopolitical conditions, which we expect may result in weaker near-term demand for our products across all three of our primary markets. In addition, we could be negatively affected by any weakening of global economic conditions, including as a result of the evolving impacts from tariffs, sanctions or other trade tensions (including implementation of new tariffs or retaliatory trade measures).
Previous wording
Gross profit. Gross margin was 55.2% and 52.5% for the three months ended April 4, 2025 and March 29, 2024, respectively, and 54.5% and 53.9% for the six months ended April 4, 2025 and March 29, 2024, respectively. Gross profit was $130.2 million and $95.2 million for the three months ended April 4, 2025 and March 29, 2024, respectively, and $247.3 million and $182.5 million for the six months ended April 4, 2025 and March 29, 2024, respectively. Gross profit increased for the three months ended April 4, 2025 as compared to the three months ended March 29, 2024 primarily as a result of higher sales, decreases in production supplies and lower intangible asset amortization, partially offset by increases in employee-related costs. Gross profit increased for the six months ended April 4, 2025 as compared to the six months ended March 29, 2024 primarily as a result of higher sales and decreases in production supplies, partially offset by increases in employee-related costs and share-based compensation.
Current wording
Gross profit. Gross margin was 55.3% and 53.2% for the three months ended July 4, 2025 and June 28, 2024, respectively, and 54.8% and 53.7% for the nine months ended July 4, 2025 and June 28, 2024, respectively. Gross profit was $139.4 million and $101.4 million for the three months ended July 4, 2025 and June 28, 2024, respectively, and $386.7 million and $283.9 million for the nine months ended July 4, 2025 and June 28, 2024, respectively. Gross profit increased for the three months ended July 4, 2025 as compared to the three months ended June 28, 2024 primarily as a result of higher sales, decreases in production supplies and lower intangible asset amortization, partially offset by increases in employee-related costs. Gross profit increased for the nine months ended July 4, 2025 as compared to the nine months ended June 28, 2024 primarily as a result of higher sales and decreases in production supplies, partially offset by increases in employee-related costs and share-based compensation.
Previous wording
Research and development. Research and development expense increased by $12.2 million, or 26.8%, to $57.8 million, or 24.5% of our revenue, for the three months ended April 4, 2025, compared to $45.6 million, or 25.2% of our revenue, for the three months ended March 29, 2024. Research and development expense increased by $33.2 million, 39.0%, to $118.2 million, or 26.0% of our revenue, for the six months ended April 4, 2025, compared to $85.0 million, or 25.1% of our revenue, for the six months ended March 29, 2024. Research and development expense increased in the three and six months ended April 4, 2025 primarily as a result of higher employee-related costs due to acquisitions and increases in share-based compensation expense and supply costs.
Current wording
Research and development. Research and development expense increased by $15.8 million, or 33.3%, to $63.4 million, or 25.1% of our revenue, for the three months ended July 4, 2025, compared to $47.5 million, or 25.0% of our revenue, for the three months ended June 28, 2024. Research and development expense increased by $49.0 million, 37.0%, to $181.6 million, or 25.7% of our revenue, for the nine months ended July 4, 2025, compared to $132.6 million, or 25.1% of our revenue, for the nine months ended June 28, 2024. Research and development expense increased in the three and nine months ended July 4, 2025 primarily due to increases in employee-related costs, partially due to acquisitions, share-based compensation expense and development-related supply costs.
Previous wording
Selling, general and administrative. Selling, general and administrative expense increased by $3.3 million, or 9.6%, to $37.4 million, or 15.9% of our revenue, for the three months ended April 4, 2025, compared to $34.2 million, or 18.9% of our revenue, for the three months ended March 29, 2024. Selling, general and administrative expense increased by $5.6 million, or 7.9%, to $76.7 million, or 16.9% of our revenue, for the six months ended April 4, 2025, compared to $71.1 million, or 21.0% of our revenue, for the six months ended March 29, 2024. Selling, general and administrative expense increased in the three months ended April 4, 2025 primarily due to an increase in employee-related costs and share-based compensation, partially offset by lower intangible asset amortization. Selling, general and administrative expense increased in the six months ended April 4, 2025 primarily due to an increase in employee-related costs and share-based compensation, partially offset by decreases in acquisition-related transaction costs and intangible asset amortization.
Current wording
Selling, general and administrative. Selling, general and administrative expense increased by $4.2 million, or 12.4%, to $38.4 million, or 15.2% of our revenue, for the three months ended July 4, 2025, compared to $34.2 million, or 17.9% of our revenue, for the three months ended June 28, 2024. Selling, general and administrative expense increased by $9.8 million, or 9.3%, to $115.1 million, or 16.3% of our revenue, for the nine months ended July 4, 2025, compared to $105.2 million, or 19.9% of our revenue, for the nine months ended June 28, 2024. Selling, general and administrative expense increased in the three months ended July 4, 2025 primarily due to an increase in employee-related costs and share-based compensation, partially offset by lower intangible asset amortization. Selling, general and administrative expense increased in the nine months ended July 4, 2025 primarily due to an increase in employee-related costs and share-based compensation, partially offset by decreases in acquisition-related transaction costs and intangible asset amortization.
Previous wording
Interest income. In the three months ended April 4, 2025, interest income was $7.2 million, compared to $5.4 million for the three months ended March 29, 2024. In the six months ended April 4, 2025, interest income was $14.2 million, compared to $10.9 million for the six months ended March 29, 2024. The increase for the three and six months ended April 4, 2025 is primarily due to an increase in short-term investments and associated interest income.
Current wording
Interest income. In the three months ended July 4, 2025, interest income was $7.6 million, compared to $5.8 million for the three months ended June 28, 2024. In the nine months ended July 4, 2025, interest income was $21.8 million, compared to $16.7 million for the nine months ended June 28, 2024. The increase for the three and nine months ended July 4, 2025 is primarily due to an increase in short-term investments and associated interest income.
Previous wording
Loss on extinguishment of debt. In the six months ended April 4, 2025, we recognized a $193.1 million loss on exchange of our 2026 Convertible Notes. See Note 9 - Debt to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q for additional information.
Current wording
Loss on extinguishment of debt. In the nine months ended July 4, 2025, we recognized a $193.1 million loss on exchange of our 2026 Convertible Notes. See Note 9 - Debt to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q for additional information.
Previous wording
The primary driver for the rate reduction for the three months ended April 4, 2025 as compared to the three months ended March 29, 2024 is the removal of a taxable income limitation on GILTI and foreign derived intangible income benefits. The primary driver for the rate reduction for the six months ended April 4, 2025 as compared to the six months ended March 29, 2024 is the non-deductibility of the loss on extinguishment of debt.
Current wording
The primary driver for the rate reduction for the three months ended July 4, 2025 as compared to the three months ended June 28, 2024 is the removal of a taxable income limitation on GILTI and foreign derived intangible income benefits. The primary driver for the rate reduction for the nine months ended July 4, 2025 as compared to the nine months ended June 28, 2024 is the non-deductibility of the loss on extinguishment of debt.
Previous wording
Our estimated annual effective tax rate for the fiscal year ending October 3, 2025 is expected to be approximately 17%, adjusted for discrete taxation matters arising during the interim periods, primarily the removal of the loss on extinguishment of debt of $193.1 million.
Current wording
Our estimated annual effective tax rate for the fiscal year ending October 3, 2025 is expected to be approximately 15%, adjusted for discrete taxation matters arising during the interim periods, primarily the removal of the loss on extinguishment of debt of $193.1 million.
Previous wording
Our cash flow from operating activities for the six months ended April 4, 2025 of $105.3 million consisted of a net loss of $135.9 million plus adjustments of $263.1 million, to reconcile our net loss to cash provided by operating activities, less cash used in operating assets and liabilities of $21.9 million. Adjustments to reconcile our net loss to cash provided by operating activities primarily included loss on extinguishment of debt of $193.1 million, share-based compensation expense of $44.3 million and depreciation and intangible amortization expense of $30.8 million. In addition, cash used in operating assets and liabilities was $21.9 million for the six months ended April 4, 2025, primarily driven by an increase in accounts receivables of $24.7 million, an increase in inventories of $15.0 million, partially offset by an increase in accounts payable of $14.8 million.
Current wording
Our cash flow from operating activities for the nine months ended July 4, 2025 of $165.7 million consisted of a net loss of $99.3 million plus adjustments of $299.3 million, to reconcile our net loss to cash provided by operating activities, less cash used in operating assets and liabilities of $34.3 million. Adjustments to reconcile our net loss to cash provided by operating activities primarily included loss on extinguishment of debt of $193.1 million, share-based compensation expense of $61.6 million and depreciation and intangible amortization expense of $45.6 million. In addition, cash used in operating assets and liabilities was $34.3 million for the nine months ended July 4, 2025, primarily driven by an increase in accounts receivables of $22.8 million and an increase in inventories of $20.6 million, partially offset by an increase in accounts payable of $16.5 million.
Previous wording
Our cash flow from operating activities for the six months ended March 29, 2024 of $51.3 million consisted of a net income of $27.5 million plus adjustments of $54.4 million, to reconcile our net income to cash provided by operating activities, less cash used in operating assets and liabilities of $30.6 million. Adjustments to reconcile our net income to cash provided by operating activities primarily included depreciation and intangible amortization expense of $31.5 million and share-based compensation expense of $20.7 million. In addition, cash used in operating assets and liabilities was $30.6 million for the six months ended March 29, 2024, primarily driven by an increase in accounts receivables of $31.3 million, an increase in inventories of $12.3 million, partially offset by an increase of $19.2 million in accounts payable. The increases in accounts receivable and accounts payable were primarily a result of the integration of the RF Business during the three months ended March 29, 2024.
Current wording
Our cash flow from operating activities for the nine months ended June 28, 2024 of $100.3 million consisted of a net income of $47.4 million plus adjustments of $89.0 million, to reconcile our net income to cash provided by operating activities, less cash used in operating assets and liabilities of $36.1 million. Adjustments to reconcile our net income to cash provided by operating activities primarily included depreciation and intangible amortization expense of $49.4 million and share-based compensation expense of $34.1 million. In addition, cash used in operating assets and liabilities was $36.1 million for the nine months ended June 28, 2024, primarily driven by an increase in accounts receivables of $17.9 million, an increase in inventories of $25.1 million, a decrease of $6.1 million inaccrued and other liabilities, partially offset byan increase of $14.7 million in accounts payable. The increase in inventory is primarily due to timing of certain program shipments and inventory builds to support future revenue. The increases in accounts receivable and accounts payable were primarily a result of the integration of the RF Business during the nine months ended June 28, 2024.
Previous wording
Our cash flow used in investing activities for the six months ended April 4, 2025 of $167.1 million consisted primarily of cash paid for acquisitions, net of cash acquired of $12.7 million, capital expenditures of $13.5 million and purchases of $320.5 million of short-term investments and other investing activities of $8.0 million, offset by proceeds of $187.6 million for the sale and maturity of short-term investments.
Current wording
Our cash flow used in investing activities for the nine months ended July 4, 2025 of $246.1 million consisted primarily of purchases of $450.9 million of short-term investments, purchase of property under financing arrangement of $28.8 million, capital expenditures of $22.3 million, cash paid for acquisitions, net of cash acquired of $12.7 million and other investing activities of $11.0 million, offset by proceeds of $279.6 million for the sale and maturity of short-term investments.
Previous wording
Our cash flow used in investing activities for the six months ended March 29, 2024 of $100.1 million consisted primarily of cash paid for acquisitions, net of cash acquired of $74.8 million, capital expenditures of $9.8 million and purchases of $230.6 million of short-term investments, offset by proceeds of $215.1 million for the sale and maturity of short-term investments. For additional information on the cash paid for our acquisitions, see Note 3 - Acquisitionsto our condensed consolidated financial statements in this Quarterly Report on Form 10-Q.
Current wording
Our cash flow used in investing activities for the nine months ended June 28, 2024 of $148.6 million consisted primarily of cash paid for acquisitions, net of cash acquired of $72.6 million for acquisitions, capital expenditures of $17.3 million and purchases of $330.7 million of short-term investments, offset by proceeds of $274.1 million for the sale and maturity of short-term investments. For additional information on the consideration paid for our acquisitions, see Note 3 - Acquisitionsto our condensed consolidated financial statements in this Quarterly Report on Form 10-Q.
Previous wording
During the six months ended April 4, 2025, our cash provided by financing activities of $26.3 million was primarily related to $86.6 million of proceeds from convertible notes and $4.5 million of proceeds from stock option exercises and employee stock purchases, partially offset by $41.3 million of common stock withheld associated with employee taxes on vested equity awards and $23.1 million of fees for the convertible note exchange and payments for debt issuance costs.
Current wording
During the nine months ended July 4, 2025, our cash provided by financing activities of $58.8 million was primarily related to $86.6 million of proceeds from convertible notes, $28.8 million of proceeds from financing arrangement and $10.2 million of proceeds from stock option exercises and employee stock purchases, partially offset by $42.7 million of common stock withheld associated with employee taxes on vested equity awards and $23.2 million of fees for the convertible note exchange and payments for debt issuance costs.
Previous wording
During the six months ended March 29, 2024, our cash used in financing activities of $10.4 million was primarily related to $12.5 million of common stock withheld associated with employee taxes on vested equity awards, partially offset by $2.8 million of proceeds from stock option exercises and employee stock purchases.
Current wording
During the nine months ended June 28, 2024, our cash used in financing activities of $8.4 million was primarily related to $13.9 million of common stock withheld associated with employee taxes on vested equity awards, partially offset by $6.5 million of proceeds from stock option exercises and employee stock purchases.
Previous wording
As of April 4, 2025, we held $110.9 million of cash and cash equivalents, primarily deposited with financial institutions, as well as $570.6 million of liquid short-term investments. The undistributed earnings of certain foreign subsidiaries are considered indefinitely reinvested for the periods presented and we do not intend to repatriate such earnings. We believe the decision to reinvest these earnings will not have a significant impact on our liquidity. As of April 4, 2025, cash held by our indefinitely reinvested foreign subsidiaries was $10.2 million, which, along with cash generated from foreign operations, is expected to be used in the support of international growth and working capital requirements as well as the repayment of certain intercompany loans.
Current wording
As of July 4, 2025, we held $125.5 million of cash and cash equivalents, primarily deposited with financial institutions, as well as $609.8 million of liquid short-term investments. The undistributed earnings of certain foreign subsidiaries are considered indefinitely reinvested for the periods presented and we do not intend to repatriate such earnings. We believe the decision to reinvest these earnings will not have a significant impact on our liquidity. As of July 4, 2025, cash held by our indefinitely reinvested foreign subsidiaries was $8.7 million, which, along with cash generated from foreign operations, is expected to be used in the support of international growth and working capital requirements as well as the repayment of certain intercompany loans.
Previous wording
During the fiscal quarter ended April 4, 2025, our common stock price was less than $106.76 during the period of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending April 4, 2025. Therefore, holders of our 2026 Convertible Notes cannot convert their notes at their option at any time during the subsequent third fiscal quarter ended July 4, 2025 in multiples of $1,000 principal amount. For additional information on the 2026 Convertible Notes, see Note 9 - Debt to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q.
Current wording
During the fiscal quarter ended July 4, 2025, our common stock price for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending July 4, 2025 was greater than $106.76 on each applicable trading day. Therefore, holders of our 2026 Convertible Notes may convert their notes at their option at any time during the subsequent fourth fiscal quarter ended October 3, 2025 in multiples of $1,000 principal amount. For additional information on the 2026 Convertible Notes, see Note 9 - Debt to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
“should,” “targets,” “will,” “would” or similar expressions or variations or the negatives of those terms. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described in the section entitled “Risk Factors” in this Quarterly Report on Form 10-Q and the 2024 Annual Report on Form 10-K. We caution the reader to carefully consider such factors. Furthermore, such forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.