Slide 1: Fiscal 2Q 2024 Earnings Call Supplementary Slides
Fiscal 2Q 2024 Earnings Call Supplementary Slides February 1, 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 2Q 2024 Financial Highlights
Fiscal 2Q 2024 Financial Highlights (Amounts in $millions, except per share amount) F2Q 2024 F1Q 2024 F2Q 2023 QoQ YoY GAAP Revenue NE $155.5 $150.0 $183.3 3.7% (15.2%) SE $24.1 $20.4 $23.8 18.1% 1.3% OSP $74.9 $77.5 $77.4 (3.4%) (3.2%) Total $254.5 $247.9 $284.5 2.7% (10.5%) Non-GAAP Gross Margin N
Slide 4: Income Statement
Income Statement (Amounts in $millions, except per share amounts) F2Q 2024 F1Q 2024 F2Q 2023 QoQ YoY GAAP Revenue $254.5 $247.9 $284.5 2.7% (10.5%) Non-GAAP Gross Margin 60.0% 60.1% 61.1% (10) bps (110) bps Non-GAAP Operating Expenses $119.1 $118.2 $127.9 0.8% (6.9%) Non-GAAP Operating Profits $33.7
Slide 5: GAAP Revenue by Business Segment and Geographic Region
GAAP Revenue by Business Segment and Geographic Region (Amounts in $millions) F2Q 2024 F1Q 2024 F2Q 2023 QoQ YoY Segment Mix NE $155.5 61.1% $150.0 60.5% $183.3 64.4% 3.7% (15.2%) SE $24.1 9.5% $20.4 8.2% $23.8 8.4% 18.1% 1.3% OSP $74.9 29.4% $77.5 31.3% $77.4 27.2% (3.4%) (3.2%) Total $254.5 100.0%
Slide 6: Fiscal 2Q 2024 NSE Business Highlights
Fiscal 2Q 2024 NSE Business Highlights (Amounts in millions and other than revenue reflect non-GAAP) ▪ NSE revenue at $179.6 million was above the midpoint of guidance range ($169-$185 million). ▪ Operating margin at 3.6% was above the midpoint of the guidance range (0.0%-4.0%). NE Segment Highlight
Slide 7: Fiscal 2Q 2024 OSP Business Highlights
Fiscal 2Q 2024 OSP Business Highlights (Amounts in millions and other than revenue reflect non-GAAP) ▪ Revenue at $74.9 million, above the midpoint of the guidance range ($71-$75 million) although, was a decrease of 3.2% Y/Y due to lower demand in Anti-Counterfeiting. ▪ Gross margin at 52.1% decreas
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights (Amounts in $millions) F2Q 2024 Total Cash Balance (1) $571.8 Short-term Debt (Carrying Value) (2) $96.3 Long-term Debt (Carrying Value) (2) $632.8 GAAP Cash from Operations $20.4 (1) Includes cash and cash-equivalents, short-term investments and restricted cash. (2) Carryin
Slide 9: Term Notes Summary
Term Notes Summary 2024 Convertible 2026 Convertible 2029 High-Yield Notes Notes Notes Issue Size $460.0M $250.0M $400.0M Current Outstanding * $96.4M $250.0M $400.0M Coupon 1.00% 1.625% 3.75% Final Maturity 3/1/2024 3/15/2026 10/1/2029 Put Date N/A N/A N/A Call Date N/A 3/20/2025 10/1/2024 Call / P
Slide 10: Fiscal 3Q 2024 Guidance
Fiscal 3Q 2024 Guidance (Amounts other than revenue reflect non-GAAP) We expect third quarter revenue to be approximately $245 million to $253 million, non-GAAP operating margin to be 8.8% to 12.0% and non-GAAP EPS to be $0.05 to $0.09. ▪ Business segment revenue guidance: • For NSE, we expect reven
Slide 11: Investor Events - F3Q24
Investor Events - F3Q24 Date Event Forum Feb. 27-28, 2024 Mobile World Conference Barcelona, Spain Mar. 06, 2024 Morgan Stanley Investor Conference San Francisco,CA Mar. 26, 2024 OFC Conference San Diego,CA 10
Slide 12: Appendix
Appendix 11
Slide 13: Non-GAAP Income Statement
Non-GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q223 Q323 Q423 Q124 Q224 Non-GAAP Income Statement Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 ($ in millions, except per share amounts) Net revenue $ 284.5 $ 247.8 $ 263.6 $ 247.9 $ 254.5 Cost of revenues 110.6 99
Slide 14: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures (Amounts in $millions) Unaudited Q223 Q323 Q423 Q124 Q224 Gross Profit - GAAP to Non-GAAP Reconciliation Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 ($ in millions, except per share amounts) GAAP segment gross profit $ 167.0 $ 141.0 $ 146.0 $ 144
Slide 15: Financial Information by Segment
Financial Information by Segment (Amounts in $millions) Unaudited Q223 Q323 Q423 Q124 Q224 Segment Results ($ in millions) Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Net revenue: Network Enablement $ 183.3 $ 151.9 $ 175.5 $ 150.0 $ 155.5 Service Enablement 23.8 25.4 22.4 20.4 24.1 Network and Serv
Slide 16: GAAP Income Statement
GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q223 Q323 Q423 Q124 Q224 GAAP Income Statement Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 ($ in millions, except per share amounts) Net revenue $ 284.5 $ 247.8 $ 263.6 $ 247.9 $ 254.5 Cost of revenues 111.8 100.9 111.
Slide 17: Condensed Balance Sheet
Condensed Balance Sheet (Amounts in $millions) Unaudited Q423 YTD Q224 YTD Balance Sheet (in millions) Jun 2023 Dec 2023 ASSETS Current assets: Cash and cash equivalents $ 506.5 $ 543.7 Short-term investments 14.6 25.0 Restricted cash 4.5 3.1 Accounts receivable, net 231.2 208.9 Inventories, net 116