Microsemi Corporation reported unaudited results for its first quarter of fiscal year 2016 ended Jan. 3, 2016. Net sales for Microsemi's first quarter of fiscal year 2016 were a record $329.2 million, up 8.5 percent from $303.6 million in the first quarter of 2015 and above the high end of guidance provided in the prior quarter. GAAP gross margin for the first quarter of 2016 was 57.1 percent, up 390 basis points from the 53.2 percent reported in the fourth quarter of 2015 and up 170 basis points from the 55.4 percent reported in the first quarter of 2015.
GAAP operating income for the first quarter of 2016 was a record $36.6 million, up 13.5 percent from the $32.3 million reported in the fourth quarter of 2015 and up 23.2 percent from the $29.7 million reported in the first quarter of 2015. GAAP operating margin for the first quarter of 2016 was 11.1 percent, up 130 basis points from the 9.8 percent reported in both the fourth and first quarters of 2015.
GAAP net income for the first quarter of 2016 was $23.7 million or $0.25 per diluted share compared to $25.3 million or $0.26 per diluted share for the fourth quarter of 2015 and compared to $19.7 million or $0.21 per diluted share for the first quarter of 2015.
Operating and free cash flow for the first quarter of 2016, which included payments for restructuring and transaction costs of $5.5 million, were both at records of $82.9 million and $72.4 million, respectively. Operating cash flow increased 6.5 percent from the $77.9 million reported in the fourth quarter of 2015 and increased 23.9 percent from the $66.9 million reported in the first quarter of 2015. Free cash flow increased 5.3 percent from the $68.7 million reported in the fourth quarter of 2015 and increased 34.5 percent from the $53.8 million reported in the first quarter of 2015.
"Delivering an impressive first quarter is only the start of what we expect to be a great year for Microsemi," said James J. Peterson, chairman and CEO of Microsemi. "Our team continues to achieve significant milestones, with record revenue and GAAP operating income, as well as record operating and free cash flow. As we look to integrate our recently completed acquisition of PMC-Sierra we will continue to focus on long-term growth and cash flow to deliver the enhanced profitability necessary to yield strong shareholder returns."
Microsemi currently expects net sales in the second quarter of fiscal year 2016 of between $435 million and $455 million, and expects non-GAAP diluted earnings per share of between $0.62 and $0.68, reflecting the transitional quarter of the PMC-Sierra acquisition.
