Fly News Breaks for May 16, 2019
News For MTSI From the Last 2 Days
Jun 18, 2019 | 19:02 EDT
UP AFTER EARNINGS: Adobe (ADBE) up 3.9%... Jabil (JBL) up 2.5%... U.S. Steel (X) up 1.9% after Q2 guidance. ALSO HIGHER: ArQule (ARQL) up 3.4% after announcing BMO Prescriptions presentation on June 25th... Upwork (UPWK) up 1.3% after being initiated at Overweight at Cantor Fitzgerald. DOWN AFTER EARNINGS: Macom (MTSI) down 9.7% after cutting Q3 guidance... La-Z-Boy (LZB) down 7.7%. ALSO LOWER: Kura Oncology (KURA) down 8.4% after equity offering... Green Plains (GPRE) down 7.8% after suspending quarterly dividend... NCR Corp (NCR) down 5.0% after NY Post report that bidders have walked away... Zymeworks (ZYME) down 4.6% after equity offering... Genocea Biosciences (GNCA) down 3.7% after equity offering... YY (YY) down 2.5% after convertible note offering... Graftech (EAF) down 2.0% after mixed shelf offering. Movers as of 18:45ET.
Jun 18, 2019 | 16:53 EDT
MACOM announced it has implemented a restructuring plan that will provide an expected annual expense savings of approximately $50M dollars once fully implemented. The Restructuring Plan includes: a permanent reduction in MACOM's hourly, salaried and management workforce of approximately 250 employees, or 20% of the total workforce, the closure of seven product development facilities, including locations in France, Japan, the Netherlands, Florida, Massachusetts, New Jersey and Rhode Island. The company also will no longer invest in the design and development of optical modules and subsystems for Data Center applications. Going forward, MACOM will be a merchant supplier of semiconductor integrated circuits, or ICs, and photonic devices and will support optical module manufacturers at the semiconductor component level. The company expects approximately $14 M in restructuring charges, a majority of which are expected to be incurred during Q3. The company is also performing a recoverability assessment for its long-lived assets, most specifically its intangible assets that may be impacted by the restructuring plan. As of March 29, 2019, MACOM's intangible assets had a carrying value of $472M. To date, the company has identified approximately $15M of non-cash impairment charges in addition to the restructuring charges discussed above, associated with these restructuring actions.