Acacia Communications (NYSE:ACIA) Q1 2019 Earnings Conference Call - Final Transcript

May 02, 2019 • 05:00 pm ET

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Acacia Communications (NYSE:ACIA) Q1 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Acacia Communications First Quarter 2019 Financial Results Conference call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Miss Monica Gould, IR of Acacia Communications. Thank you, Miss Gould. You may begin.

Executive
Monica Gould

Thank you, Tim, and good afternoon, everyone. Acacia Communications released results for the first quarter, ended March 31, 2019, this afternoon after market close. If you did not receive a copy of our earnings press release, you may obtain it from the Investor Relations section of our website at ir.acacia-inc.com. This call is being webcast live and a replay will be available on the Investor Relations section of our website. With me on today's call are Raj Shanmugaraj, President and Chief Executive Officer; and John Gavin, our Chief Financial Officer.

Before I turn the call over to Raj, I'd like to note that during today's discussion there are references to our prospects and expectations for the second quarter of 2019 and beyond, projections on the size of our markets and market share, statements about our customers and new products and our competitors' products, statements regarding the size and timing of demand for our products and other forward-looking statements, which are based on the business environment as we currently see it and, as such, include certain risks and uncertainties. Please refer to our earnings press release and our SEC filings for more information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements described in today's discussion. Any forward-looking statements that we make on this call are based on assumptions as of today and we undertake no obligation to update these statements as a result of new information or future events.

In addition to US GAAP reporting, we report certain financial measures that do not conform to GAAP. We believe these non-GAAP measures enhance the understanding of our performance. Reconciliations of the GAAP measures to these non-GAAP measures, in addition to a description of the non-GAAP measures can be found in today's earnings press release. And with that, I'd like to turn the call over to Raj.

Executive
Murugesan Shanmugaraj

Thank you, Monica. Good afternoon, everyone, and thanks for joining us today. I'll start with a business update and then turn the call over to John Gavin, who will provide a more detailed review of our financial performance and outlook.

I am pleased to report strong first quarter results that exceeded the high end of all four of our guidance metrics with total revenue of approximately $105 million and, on a non-GAAP basis, gross margin of 47.4%, net income of approximately $15 million and earnings of $0.37 per diluted share.

In the first quarter, we had four customers who each contributed 10% or greater of our total revenue. Sales to these four customers included a mix of pluggable and embedded modules as well as semiconductor products, which we believe demonstrates continued progress in our revenue diversification activities