Slide 1: Fiscal 4Q 2024 Earnings Call Supplementary Slides
Fiscal 4Q 2024 Earnings Call Supplementary Slides August 8, 2024
Slide 2: Cautionary Language Concerning Forward-Looking Statements
Cautionary Language Concerning Forward-Looking Statements This presentation contains forward-looking statements under Section 27A of the Securities Act of 1934. Forward-looking statements are all statements we make other than those dealing specifically with historical matters. These forward-looking
Slide 3: Fiscal 4Q 2024 Financial Highlights
Fiscal 4Q 2024 Financial Highlights (Amounts in $millions, except per share amount) F4Q 2024 F3Q 2024 F4Q 2023 QoQ YoY GAAP Revenue NE $158.5 $151.7 $175.5 4.5% (9.7%) SE $23.7 $18.1 $22.4 30.9% 5.8% OSP $69.8 $76.2 $65.7 (8.4%) 6.2% Total $252.0 $246.0 $263.6 2.4% (4.4%) Non-GAAP Gross Margin NE 61
Slide 4: Income Statement
Income Statement (Amounts in $millions, except per share amounts) F4Q 2024 F3Q 2024 F4Q 2023 QoQ YoY GAAP Revenue $252.0 $246.0 $263.6 2.4% (4.4%) Non-GAAP Gross Margin 59.6% 57.9% 58.2% 170 bps 140 bps Non-GAAP Operating Expenses $122.7 $119.5 $122.7 2.7% —% Non-GAAP Operating Profits $27.5 $23.0 $
Slide 5: Revenue by Business Segment and Geographic Region
Revenue by Business Segment and Geographic Region (Amounts in $millions) F4Q 2024 F3Q 2024 F4Q 2023 QoQ YoY Segment Mix NE $158.5 62.9% $151.7 61.6% $175.5 66.6% 4.5% (9.7%) SE $23.7 9.4% $18.1 7.4% $22.4 8.5% 30.9% 5.8% OSP $69.8 27.7% $76.2 31.0% $65.7 24.9% (8.4%) 6.2% Total $252.0 100.0% $246.0
Slide 6: Fiscal 4Q 2024 NSE Business Highlights
Fiscal 4Q 2024 NSE Business Highlights (Amounts in millions and other than revenue reflect non-GAAP) ▪ NSE revenue at $182.2 million was within the guidance range of $179-$189 million. ▪ Operating margin at 1.8% was within the guidance range of 1.4%-3.6%. NE Segment Highlights ▪ Revenue at $158.5 mi
Slide 7: Fiscal 4Q 2024 OSP Business Highlights
Fiscal 4Q 2024 OSP Business Highlights (Amounts in millions and other than revenue reflect non-GAAP) ▪ Revenue at $69.8 million, exceeded the guidance range of $67-$69 million and was an increase of 6.2% Y/Y, as a result of strength across all products. ▪ Gross margin at 53.0%, increased 640 basis p
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights (Amounts in $millions) F4Q 2024 Total Cash Balance (1) $496.2 Long-term Debt (Carrying Value) (2) $636.0 GAAP Cash from Operations $26.2 (1) Includes cash and cash-equivalents, short-term investments and short-term restricted cash. (2) Carrying value equals outstanding princ
Slide 9: Term Notes Summary
Term Notes Summary 2026 Convertible 2029 High-Yield Notes Notes Issue Size $250.0M $400.0M Current Outstanding * $250.0M $400.0M Coupon 1.625% 3.75% Final Maturity 3/15/2026 10/1/2029 Put Date N/A N/A Call Date 3/20/2025 10/1/2024 Call / Put Price (%) 100% N/A Conversion Price $13.19 N/A Shares Unde
Slide 10: Fiscal 1Q 2025 Guidance
Fiscal 1Q 2025 Guidance (Amounts other than revenue reflect non-GAAP) We expect first quarter revenue to be approximately $235 million to $245 million, non-GAAP operating margin to be 9.9% to 11.7% and non-GAAP EPS to be $0.05 to $0.07. ▪ Business segment revenue guidance: • For NSE, we expect reven
Slide 11: Investor Events - 1Q 2025
Investor Events - 1Q 2025 Date Event Forum Aug. 19, 2024 Rosenblatt’s 4th Annual Technology Summit Virtual Conference 10
Slide 12: Appendix
Appendix 11
Slide 13: Non-GAAP Income Statement
Non-GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q423 Q124 Q224 Q324 Q424 Non-GAAP Income Statement Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 ($ in millions, except per share amounts) Net revenue $ 263.6 $ 247.9 $ 254.5 $ 246.0 $ 252.0 Cost of revenues 110.1 98
Slide 14: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures (Amounts in $millions) Unaudited Q423 Q124 Q224 Q324 Q424 Gross Profit - GAAP to Non-GAAP Reconciliation Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 ($ in millions, except per share amounts) GAAP segment gross profit $ 146.0 $ 144.4 $ 148.0 $ 137
Slide 15: Financial Information by Segment
Financial Information by Segment (Amounts in millions) Unaudited Q423 Q124 Q224 Q324 Q424 Segment Results ($ in millions) Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Net revenue: Network Enablement $ 175.5 $ 150.0 $ 155.5 $ 151.7 $ 158.5 Service Enablement 22.4 20.4 24.1 18.1 23.7 Network and Servi
Slide 16: GAAP Income Statement
GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q423 Q124 Q224 Q324 Q424 GAAP Income Statement Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 ($ in millions, except per share amounts) Net revenue $ 263.6 $ 247.9 $ 254.5 $ 246.0 $ 252.0 Cost of revenues 111.7 100.0 103.
Slide 17: Condensed Balance Sheet
Condensed Balance Sheet (Amounts in $millions) Unaudited Q423 YTD Q424 YTD Balance Sheet (in millions) Jun 2023 Jun 2024 ASSETS Current assets: Cash and cash equivalents $ 506.5 $ 471.3 Short-term investments 14.6 19.9 Restricted cash 4.5 5.0 Accounts receivable, net 231.2 213.1 Inventories, net 116