Inphi Corporation Delivers Record Revenue in Q3 2020
Inphi Corporation (NASDAQ: IPHI) reported third-quarter 2020 revenue of $180.7 million, a 91.8% increase year-over-year, driven by robust demand in Cloud and Telecommunications markets, and the acquisition of eSilicon. GAAP net loss reduced to $3.4 million from $16.2 million in Q3 2019. Non-GAAP net income rose to $47.9 million, or $0.88 per diluted share, up from $21.5 million in the same quarter last year. Despite challenges, the company showcased strong growth with a non-GAAP operating margin of 29.5%. Q3 revenue marks a record high for Inphi.
- Record Q3 2020 revenue at $180.7 million, up 91.8% year-over-year.
- Non-GAAP net income increased to $47.9 million, or $0.88 per diluted share.
- Non-GAAP operating income rose to 29.5% of revenue from 22.7% in Q3 2019.
- Organic growth in the business expanded 57% year-over-year.
- GAAP net loss of $3.4 million, despite improvement from prior year.
- Gross margin on GAAP basis decreased to 56.2% from 57.8% in Q3 2019.
Strong year-over-year Growth Driven by both Cloud and Telecom
SANTA CLARA, Calif., Oct. 29, 2020 (GLOBE NEWSWIRE) -- Inphi Corporation (NASDAQ: IPHI), a leader in high-speed data movement interconnects, today announced financial results for its third quarter ended September 30, 2020. Inphi Corporation will not host a conference call to discuss its results for the third quarter of 2020 due to the proposed acquisition of Inphi Corporation by Marvell Technology Group Ltd. announced today.
GAAP Results
Revenue in the third quarter of 2020 was a record
Gross margin under GAAP in the third quarter of 2020 was
GAAP operating income in the third quarter of 2020 was
GAAP net loss for the third quarter of 2020 was
Inphi reports gross profit, operating expenses, operating income (loss), net income (loss), and earnings per share in accordance with GAAP and on a non-GAAP basis. A reconciliation of the GAAP to non-GAAP gross profit, operating expenses, operating income (loss), net income (loss), earnings per share, as well as a description of the items excluded from the non-GAAP calculations is included in the financial statements portion of this press release.
Non-GAAP Results
Gross margin on a non-GAAP basis in the third quarter of 2020 was
Non-GAAP operating income in the third quarter of 2020 was
Non-GAAP net income in the third quarter of 2020 was
“Despite unique macro challenges, Q3 of 2020 was another record revenue quarter for the Company. Our revenue grew
Nine Months 2020 Results
Revenue in the nine months ended September 30, 2020 was
Non-GAAP net income in the nine months ended September 30, 2020 was
Business Outlook
The following statements are based on the Company’s current expectations for the fourth quarter of 2020. These statements are forward-looking and actual results may differ materially. A reconciliation between the GAAP and non-GAAP outlook is included at the end of this press release.
- Revenue in Q4 2020 is expected to be in the range of
$185 million to$189 million . - GAAP gross margin is expected to be in the range of approximately
55.8% to57.0% . - Non-GAAP gross margin is expected to be in the range of approximately
63.7% to64.7% . - Stock-based compensation expense is expected to be in the range of
$28.0 million to$30.0 million . - GAAP net loss is expected to be in range between
$0.95 million to$2.65 million , or ($0.02) t o ($0.05) per basic share, based on 52.4 million estimated weighted average basic shares outstanding. - Non-GAAP net income, excluding stock-based compensation expense, acquisition expenses, amortization of intangibles and inventory fair value step up related to acquisitions and noncash interest on convertible debt, is expected to be in the range of
$47.2 million to$50.6 million , or$0.85 t o$0.91 per weighted average diluted share, based on 55.7 million estimated non-GAAP weighted average diluted shares outstanding.
About Inphi
Inphi Corporation is a leader in high-speed data movement. We move big data -- fast, throughout the globe, between data centers, and inside data centers. Inphi's expertise in signal integrity results in reliable data delivery, at high speeds, over a variety of distances. As data volumes ramp exponentially due to video streaming, social media, cloud-based services, and wireless infrastructure, the need for speed has never been greater. That's where we come in. Customers rely on Inphi's solutions to develop and build out the Service Provider and Cloud infrastructures, and data centers of tomorrow. To learn more about Inphi, visit www.inphi.com.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terms such as outlook, believe, expect, may, will, provide, continue, could, and should, and the negative of these terms or other similar expressions. These statements include statements relating to: the Company’s business outlook and current expectations for 2020, including with respect to the fourth quarter of 2020, revenue, gross margin, stock-based compensation expense, net income or loss, and earnings per share; the Company’s expectations regarding growth opportunities; strength in both our cloud data center and telecom markets, our operating model and the benefits of using non-GAAP financial measures. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors, including: the Company’s ability to sustain profitable operations due to its history of losses and accumulated deficit; the proposed acquisition, dependence on a limited number of customers for a substantial portion of revenue and lack of long-term purchase commitments from customers; product defects; risk related to intellectual property matters, lengthy sales cycle and competitive selection process; lengthy and expensive qualification processes; ability to develop new or enhanced products in a timely manner; development of target markets; market demand for the Company’s products; reliance on third parties to manufacture, assemble and test products; ability to compete; the ability to effectively integrate eSilicon and other risks inherent in fabless semiconductor businesses. In addition, actual results could differ materially due to changes in tax rates or tax benefits available, changes in demand, including as a result of the impact of the COVID-19 pandemic, changes in government regulation, changes in claims that may or may not be asserted, as well as changes in pending litigation. For a discussion of these and other related risks, please refer to Inphi Corporation’s recent SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2019, which are available on the SEC’s website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. Inphi Corporation undertakes no obligation to update forward-looking statements for any reason, except as required by law, even as new information becomes available or other events occur in the future.
Inphi, the Inphi logo and Think fast are registered trademarks of Inphi Corporation. All other trademarks used herein are the property of their respective owners.
| INPHI CORPORATION | ||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (in thousands of dollars, except share and per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Revenue | $ | 180,691 | $ | 94,231 | $ | 495,413 | $ | 262,739 | ||||
| Cost of revenue | 79,151 | 39,749 | 227,244 | 111,517 | ||||||||
| Gross margin | 101,540 | 54,482 | 268,169 | 151,222 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development | 66,832 | 44,895 | 198,701 | 133,999 | ||||||||
| Sales and marketing | 15,341 | 12,311 | 45,274 | 35,344 | ||||||||
| General and administrative | 13,125 | 8,165 | 38,508 | 22,478 | ||||||||
| Total operating expenses | 95,298 | 65,371 | 282,483 | 191,821 | ||||||||
| Income (loss) from operations | 6,242 | (10,889 | ) | (14,314 | ) | (40,599 | ) | |||||
| Loss on early extinguishment of convertible debt | (149 | ) | - | (13,446 | ) | - | ||||||
| Interest expense, net of other income | (8,285 | ) | (4,672 | ) | (18,475 | ) | (17,652 | ) | ||||
| Loss before income taxes | (2,192 | ) | (15,561 | ) | (46,235 | ) | (58,251 | ) | ||||
| Provision for income taxes | 1,188 | 619 | 1,482 | 1,252 | ||||||||
| Net loss | $ | (3,380 | ) | $ | (16,180 | ) | $ | (47,717 | ) | $ | (59,503 | ) |
| Earnings per share: | ||||||||||||
| Basic | $ | (0.07 | ) | $ | (0.36 | ) | $ | (0.97 | ) | $ | (1.32 | ) |
| Diluted | $ | (0.07 | ) | $ | (0.36 | ) | $ | (0.97 | ) | $ | (1.32 | ) |
| Weighted-average shares used in computing | ||||||||||||
| earnings per share: | ||||||||||||
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FAQ
What were Inphi's Q3 2020 earnings results?
Inphi reported Q3 2020 revenue of $180.7 million, a 91.8% increase year-over-year, with a GAAP net loss of $3.4 million.
How did Inphi's revenue perform compared to last year?
The revenue increased from $94.2 million in Q3 2019 to $180.7 million in Q3 2020.
What is Inphi's stock symbol?
Inphi's stock symbol is IPHI.
What drove Inphi's revenue growth in Q3 2020?
The revenue growth was driven by higher demand for Cloud and Telecommunications products, along with the eSilicon acquisition.
How did Inphi's non-GAAP net income change in Q3 2020?
Non-GAAP net income in Q3 2020 increased to $47.9 million, or $0.88 per diluted share, compared to $21.5 million in Q3 2019.
IPHI
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