The company, a supplier to major industry players including Apple Inc. (NASDAQ:AAPL) and Tesla, Inc. (NASDAQ:TSLA), reported quarterly net revenues of $3.095 billion.
The topline marked a 23.0% year-over-year growth, edging past the analyst consensus estimate of $3.039 billion.
Year-over-year net sales to OEMs and Distribution increased 24.5% and 19.2%, respectively.
Margin Compression and Profitability Headwinds
Adjusted earnings per share (EPS) of 13 cents decisively trailed the analyst consensus estimate of 17 cents.
Gross margin came in at 33.8%, beating the midpoint of the company's guidance and increasing 40 basis points Y/Y, mainly due to lower unused capacity charges and a better product mix.
Consequently, the operating margin rose 220 bps to 2.3%.
The company reported a net income of $37 million on an operating income of $70 million for the quarter.
The reported operating income included $71 million in impairment, restructuring charges, and other related phase-out costs, predominantly associated with the previously announced company-wide program to reshape its manufacturing footprint and resize its global cost base.
Excluding these one-time items, adjusted operating income stood at $171 million.
Segment Performance
Segmental results painted a mixed picture of market demand. The Analog Products, MEMS, and Sensors (AM&S) segment grew revenue by 23.2% to $1.32 billion, and the Embedded Processing (EMP) segment rose by 31.3% to $975 ...
