Inphi Reports Second Quarter 2015 Financial Results 

SANTA CLARA, Calif., July 29 -- Inphi Corporation, a leading provider of high-speed analog and mixed-signal semiconductor solutions for the communications, data center and computing markets, today announced the financial results for its second quarter ended June 30, 2015.

Revenue in the second quarter of 2015 was a record $60.7 million, up 2.6% sequentially from $59.2 million reported in the first quarter of 2015 and up 79% year-over-year, compared with $33.9 million in the second quarter of 2014.

Gross margin under U.S. generally accepted accounting principles (GAAP) in the second quarter of 2015 was 61.6% of revenue, compared with 63.8% in the second quarter of 2014. The decline in gross margin was primarily due to the amortization of the acquired intangibles and amortization of inventory fair value step-up related to the acquired Cortina inventories sold during the second quarter of 2015.

GAAP results of operations for the second quarter of 2015 were breakeven, compared with GAAP net income of $2.6 million, or $0.08 per diluted common share, in the second quarter of 2014.

Inphi reports revenue, gross margin, operating expenses, 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 revenue, gross margin, operating expenses, net income, and 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 news release.

Gross margin on a non-GAAP basis for in the second quarter of 2015 was 68.6%, compared with 64.6% in the second quarter of 2014.

Non-GAAP net income in the second quarter of 2015 was a record $9.9 million, or $0.24 per diluted common share. This compares with non-GAAP net income of $2.9 million, or $0.09 per diluted common share in the second quarter of 2014.

"We are pleased to report record non-GAAP revenue and record earnings per share in Q2," said Ford Tamer, Inphi President and CEO. "While being cautious about a near-term slowdown in the service provider market in China, we remain confident in our ability to grow overall revenue and profitability in the mid- to long-term. We are convinced that our cloud product offerings will continue to position Inphi as a strong participant in the upcoming multi-billion dollar Data Center Interconnect market."

First Half 2015 Results

Revenue in the six months ended June 30, 2015 was $119.8 million, compared with $65.1 million in the six months ended June 30, 2014. GAAP net loss in the six months ended June 30, 2015 was $9.7 million, or ($0.26) per diluted share, on approximately 38.1 million diluted weighted average common shares outstanding. This compares with GAAP net income of $1.6 million, or $0.05 per diluted share, on approximately 32.9 million diluted weighted average common shares outstanding in the six months ended June 30, 2014.

Non-GAAP net income in the six months ended June 30, 2015 was $19.2 million, or $0.47 per diluted weighted average common share outstanding, on approximately 40.8 million diluted weighted average common shares outstanding. This compares with non-GAAP net income of $5.8 million in the six months ended June 30, 2014, or $0.18 per diluted weighted average common share outstanding.

About Inphi

Inphi Corporation is a leading provider of high-speed analog and mixed-signal semiconductor solutions for the communications, data center and computing markets. Inphi's end-to-end data transport platform delivers high signal integrity at leading-edge data speeds, addressing performance and bandwidth bottlenecks in networks, from fiber to memory. Inphi's solutions minimize latency in computing environments and enable the rollout of next-generation communications infrastructure. Inphi's solutions provide a vital interface between analog signals and digital information in high-performance systems, such as telecommunications transport systems, enterprise networking equipment, enterprise and data center servers, and storage platforms. To learn more about Inphi, visit www.inphi.com.

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Source: Inphi