Inphi Corporation Announces First Quarter 2016 Results 

SANTA CLARA, Calif., April 29 -- Inphi Corporation (NYSE: IPHI), a leading provider of high-speed analog and mixed-signal semiconductor solutions for the communications, data center and computing markets, today announced financial results for its first quarter ended March 31, 2016.

Revenue in the first quarter of 2016 was a record $66.5 million on U.S. generally accepted accounting principles (GAAP) basis, up 3.3% sequentially from $64.4 million reported in the fourth quarter of 2015 and up 12% year-over-year, compared with $59.2 million in the first quarter of 2015.

Gross margin under GAAP in the first quarter of 2016 was 63.5%, compared with 50.6% in the first quarter of 2015. The increase in gross margin was primarily due to higher product cost in the first quarter of 2015 as a result of higher inventory fair value step-up related to the acquired Cortina inventories sold during the first quarter of 2015.

GAAP income from operations in the first quarter of 2016 was $2.5 million or 3.8% of revenue, compared to a GAAP loss from operations in the first quarter of 2015 of $5.5 million or (9.3%) of revenue.

GAAP net income for the first quarter of 2016 was $0.2 million, or $0.01 per diluted common share, compared with GAAP net loss of $9.7 million, or ($0.26) per diluted common share, in the first quarter of 2015.

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, 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 in the first quarter of 2016 increased to 68.8%, compared with 66.6% in the first quarter of 2015.

Non-GAAP income from operations in the first quarter of 2016 was $13.7 million, or 20.6% of revenue, compared with $11.2 million, or 18.7% of revenue, in the first quarter of 2015.

Non-GAAP net income in the first quarter of 2016 was $11.7 million, or $0.27 per diluted common share. This compares with non-GAAP net income of $9.3 million, or $0.23 per diluted common share in the first quarter of 2015.

"We are delighted to report another strong quarter in Q1 and pleased to be forecasting continued growth in Q2," said Ford Tamer president and CEO of Inphi Corporation. "We introduced several new products at March's Optical Fiber Conference this year and we are excited about their potential. We are working hard to get all of these new product offerings into production by the end of the year. Reflecting the market's growing interest in high speed optical communication, we are confident that we have the right team, delivering the right products to leverage this growing market opportunity in the quarters to come," he said.

Business Outlook

The following statements are based on the Company's current expectations for the second quarter of 2016. These statements are forward-looking and actual results may differ materially. A reconciliation between the GAAP and Non GAAP outlook is included in the back of the press release.

• Revenue is expected to be up 2.8% to 5.8% sequentially in Q2 2016, a range of $68.4 million to $70.4 million.
• GAAP based gross margin is expected to be 63.1% - 63.8%
• Non-GAAP gross margin is expected to be approximately 68.0% to 68.5%.
• Stock-based compensation expense is expected to be in the range of $8.7 million to $8.9 million.
• GAAP results are expected to be in a range between a net loss of $0.1 million to net income of $ 0.8 million, or $0.0 - $0.02 per diluted share, on 44.2 million estimated diluted shares outstanding.
• Non-GAAP net income, excluding stock-based compensation expense and expenses related to the Cortina acquisition, is expected to be in the range of $11.9 million to $12.8 million, or $0.27 - $0.29 per diluted share, on 44.2 million estimated fully diluted shares 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.

Source: Inphi