MACOM reported revenue of $128.5 million for its fiscal second quarter ended March 29, 2019, a decrease of 14.6% compared to $150.4 million in the previous year fiscal second quarter and a decrease of 14.7% compared to $150.7 million in the prior fiscal quarter. Gross profit was $57.3 million, a decrease of 12.6% compared to $65.6 million in the previous year fiscal second quarter and a decrease of 25.2% compared to $76.6 million in the prior fiscal quarter.
“Fiscal Q2 was a challenging quarter as the magnitude of the Data Center inventory correction has been deeper and more disruptive than we originally anticipated. However, some customers are indicating they will be exiting the quarter at more normalized inventory levels, which is a leading indicator of a recovery in the second half of the year,” said John Croteau, President and CEO of MACOM.
“Despite this temporary, albeit precipitous market correction in Data Centers, the fundamental demand drivers for each of our growth opportunities remain intact with several potentially coming to fruition simultaneously."