Slide 1: Fiscal 1Q 2024 Earnings Call Supplementary Slides
Fiscal 1Q 2024 Earnings Call Supplementary Slides November 2, 2023
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 1Q 2024 Financial Highlights
Fiscal 1Q 2024 Financial Highlights (Amounts reflect non-GAAP and in $millions, except per share amounts) Result Y/Y Performance GAAP Revenue $247.9 down (20.1)% Non-GAAP Gross Margin 60.1% down (220) basis points NE 63.1% down (140) basis points SE 67.2% up 110 basis points OSP 52.5% down (420) bas
Slide 4: Income Statement
Income Statement (Amounts reflect non-GAAP and in $millions, except per share amounts) F1Q 2024 F4Q 2023 F1Q 2023 QoQ YoY GAAP Revenue $247.9 $263.6 $310.2 (6.0%) (20.1%) Non-GAAP Gross Margin 60.1% 58.2% 62.3% 190 bps (220) bps Non-GAAP Operating Expenses $118.2 $122.7 $126.0 (3.7%) (6.2%) Non-GAAP
Slide 5: GAAP Revenue by Business Segment and Geographic Region
GAAP Revenue by Business Segment and Geographic Region (Amounts in $millions) F1Q 2024 F4Q 2023 F1Q 2023 QoQ YoY Segment Mix NE $150.0 60.5% $175.5 66.6% $196.5 63.3% (14.5%) (23.7%) SE $20.4 8.2% $22.4 8.5% $22.4 7.2% (8.9%) (8.9%) OSP $77.5 31.3% $65.7 24.9% $91.3 29.5% 18.0% (15.1%) Total $247.9
Slide 6: Business Segment Results
Business Segment Results (Amounts in $millions) F1Q 2024 F4Q 2023 F1Q 2023 QoQ YoY GAAP Revenue NE $150.0 $175.5 $196.5 (14.5%) (23.7%) SE $20.4 $22.4 $22.4 (8.9%) (8.9%) OSP $77.5 $65.7 $91.3 18.0% (15.1%) Total $247.9 $263.6 $310.2 (6.0%) (20.1%) Non-GAAP Gross Margin NE 63.1% 61.7% 64.5% 140 bps
Slide 7: Fiscal 1Q 2024 NSE Business Highlights
Fiscal 1Q 2024 NSE Business Highlights (Amounts reflect non-GAAP and in $millions) ▪ NSE revenue at $170.4 million was within the guidance range ($167-$183 million). ▪ Operating margin at 0.9% was below the guidance range (3.0%-5.0%). NE Segment Highlights ▪ Revenue at $150.0 million down 23.7% Y/Y
Slide 8: Fiscal 1Q 2024 OSP Business Highlights
Fiscal 1Q 2024 OSP Business Highlights (Amounts reflect non-GAAP and in $millions) ▪ Revenue at $77.5 million, exceeded the guidance range ($73-$77 million) although, was a decrease of 15.1% Y/Y due to lower Anti-Counterfeiting and 3D Sensing product sales. ▪ Non-GAAP Gross margin at 52.5% decreased
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights (Amounts in $millions) F1Q 2024 Total Cash Balance (1) $544.5 Short-term Debt (Carrying Value) (2) $96.2 Long-term Debt (Carrying Value) (2) $631.1 GAAP Cash from Operations $50.3 (1) Includes cash and cash-equivalents, short-term investments and restricted cash. (2) Carryin
Slide 10: 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 11: Fiscal 2Q 2024 Guidance
Fiscal 2Q 2024 Guidance (Amounts reflect non-GAAP) We expect second quarter revenue to be approximately $240 million to $260 million, non-GAAP operating margin to be 9.6% to 12.8% and non-GAAP EPS to be $0.06 to $0.10. ▪ Business segment revenue guidance: • For NSE, we expect revenue to be $169 mill
Slide 12: Investor Events - F2Q24
Investor Events - F2Q24 Date Event Forum November 14, 17th Annual Needham Virtual Security, Networking & 2023 Communications Conference. Virtual Conference November 28, The Phoenician, UBS Global Technology Conference. 2023 Scottsdale Arizona 11
Slide 13: Appendix
Appendix
Slide 14: Non-GAAP Income Statement
Non-GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q123 Q223 Q323 Q423 Q124 Non-GAAP Income Statement Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 ($ in millions, except per share amounts) Net revenue $ 310.2 $ 284.5 $ 247.8 $ 263.6 $ 247.9 Cost of revenues 116.8 11
Slide 15: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures (Amounts in $millions) Unaudited Q123 Q223 Q323 Q423 Q124 Gross Profit - GAAP to Non-GAAP Reconciliation Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 ($ in millions, except per share amounts) GAAP segment gross profit $ 184.8 $ 167.0 $ 141.0 $ 146
Slide 16: Financial Information by Segment
Financial Information by Segment (Amounts in $millions) Unaudited Q123 Q223 Q323 Q423 Q124 Segment Results ($ in millions) Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Net revenue: Network Enablement $ 196.5 $ 183.4 $ 151.9 $ 175.5 $ 150.0 Service Enablement 22.4 23.7 25.4 22.4 20.4 Network and Serv
Slide 17: GAAP Income Statement
GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q123 Q223 Q323 Q423 Q124 GAAP Income Statement Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 ($ in millions, except per share amounts) Net revenue $ 310.2 $ 284.5 $ 247.8 $ 263.6 $ 247.9 Cost of revenues 118.3 111.8 100.
Slide 18: Condensed Balance Sheet
Condensed Balance Sheet (Amounts in $millions) Unaudited Q423 YTD Q124 YTD Balance Sheet (in millions) Jun 2023 Sep 2023 ASSETS Current assets: Cash and cash equivalents $ 506.5 $ 520.6 Short-term investments 14.6 20.5 Restricted cash 4.5 3.4 Accounts receivable, net 231.2 190.9 Inventories, net 116