10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2013

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 001-35451

M/A-COM Technology Solutions Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware	27-0306875
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

100 Chelmsford Street

Lowell, MA 01851

(Address of principal executive offices and zip code)

(978) 656-2500

(Registrant’s telephone number, including area code)

Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of July 24, 2013, there were 46,332,274 shares of the registrant’s common stock outstanding.

M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

FORM 10-Q

TABLE OF CONTENTS

		Page No.
PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)		1
	Condensed Consolidated Balance Sheets		1
	Condensed Consolidated Statements of Operations		2
	Condensed Consolidated Statements of Comprehensive Income (Loss)		3
	Condensed Consolidated Statement of Stockholders’ Equity		4
	Condensed Consolidated Statements of Cash Flows		5
	Notes to Condensed Consolidated Financial Statements		6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		24
Item 4.	Controls and Procedures		25
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings		25
Item1A.	Risk Factors		26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		43
Item 6.	Exhibits		44
Signatures			45

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

	June 28, 2013			September 28, 2012
ASSETS
Current assets:
Cash and cash equivalents	$	115,631		$	84,528
Accounts receivable, net		55,195			54,184
Inventories		54,654			57,459
Income taxes receivable		4,220			4,939
Prepaid expenses and other current assets		5,217			3,660
Deferred income taxes		8,365			8,264
Total current assets		243,282			213,034
Property and equipment, net		28,749			30,209
Goodwill		3,990			3,990
Intangible assets, net		16,410			18,776
Other assets		1,386			2,064
TOTAL ASSETS	$	293,817		$	268,073
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	24,130		$	26,958
Accrued liabilities		15,621			20,447
Income taxes payable		834			330
Deferred revenue		8,065			7,992
Total current liabilities		48,650			55,727
Common stock warrant liability		9,596			7,561
Other long-term liabilities		813			1,236
Deferred income taxes		4,407			4,091
Total liabilities		63,466			68,615
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock		—			—
Common stock		46			45
Additional paid-in capital		355,503			347,971
Treasury stock		(762	)		(685	)
Accumulated deficit		(124,175	)		(147,736	)
Accumulated other comprehensive loss		(261	)		(137	)
Total stockholders’ equity		230,351			199,458
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	293,817		$	268,073

See notes to condensed consolidated financial statements.

1

M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended						Nine Months Ended
	June 28, 2013			June 29, 2012			June 28, 2013			June 29, 2012
Revenue	$	82,225		$	77,125		$	235,063		$	227,640
Cost of revenue		45,932			41,721			132,644			124,272
Gross profit		36,293			35,404			102,419			103,368
Operating expenses:
Research and development		11,120			9,193			31,093			27,857
Selling, general and administrative		12,980			10,706			36,552			33,024
Contingent consideration		—			101			(577	)		(977	)
Restructuring charges		950			—			950			1,586
Total operating expenses		25,050			20,000			68,018			61,490
Income from operations		11,243			15,404			34,401			41,878
Other income (expense)
Accretion of common stock warrant liability		1,060			3,198			(2,035	)		(2,791	)
Accretion of Class B conversion liability		—			—			—			(44,119	)
Interest expense		(190	)		(161	)		(616	)		(545	)
Other income - related party		123			91			293			91
Total other income (expense)		993			3,128			(2,358	)		(47,364	)
Income (loss) before income taxes		12,236			18,532			32,043			(5,486	)
Income tax provision		2,869			4,987			8,482			12,488
Net income (loss)		9,367			13,545			23,561			(17,974	)
Accretion of redeemable preferred stock and participating stock dividends		—			(41	)		—			(2,616	)
Net income (loss) attributable to common stockholders	$	9,367		$	13,504		$	23,561		$	(20,590	)
Net income (loss) per share:
Basic	$	0.20		$	0.30		$	0.51		$	(1.15	)
Diluted	$	0.20		$	0.29		$	0.50		$	(1.15	)
Shares used to compute net income (loss) per common share:
Basic		46,066			45,160			45,788			17,933
Diluted		47,221			47,264			47,036			17,933

See notes to condensed consolidated financial statements.

2

M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

	Three Months Ended					Nine Months Ended
	June 28, 2013		June 29, 2012			June 28, 2013			June 29, 2012
Net income (loss)	$	9,367	$	13,545		$	23,561		$	(17,974	)
Foreign currency translation gain (loss)		9		(48	)		(124	)		(32	)
Total comprehensive income (loss)	$	9,376	$	13,497		$	23,437		$	(18,006	)

See notes to condensed consolidated financial statements.

3

M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

										Accumulated Other Comprehensive Loss			Additional Paid-in Capital		Accumulated Deficit			Total Stockholders’ Equity
	Common Stock				Treasury Stock
	Shares		Amount		Shares		Amount
Balance at September 28, 2012		45,452	$	45		43	$	(685	)	$	(137	)	$	347,971	$	(147,736	)	$	199,458
Issuance of common stock upon exercise of common stock options and employee stock purchases		539		1		—		—			—			1,696		—			1,697
Vesting of restricted common stock and units		236		—				—			—			—		—			—
Repurchase of common stock				—		6		(77	)		—			—		—			(77	)
Share-based and other incentive compensation		—		—		—		—			—			4,366		—			4,366
Excess tax benefits		—		—		—		—			—			1,470		—			1,470
Foreign currency translation		—		—		—		—			(124	)		—		—			(124	)
Net income		—		—		—		—			—			—		23,561			23,561
Balance at June 28, 2013		46,227	$	46		49	$	(762	)	$	(261	)	$	355,503	$	(124,175	)	$	230,351

See notes to condensed consolidated financial statements.

4

M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Nine Months Ended
	June 28, 2013			June 29, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	23,561		$	(17,974	)
Adjustments to reconcile net income to net cash from operating activities:
Accretion of common stock warrant liability		2,035			2,791
Accretion of Class B conversion liability		—			44,119
Accretion of asset retirement obligations		44			58
Depreciation and amortization		10,338			8,577
Contingent consideration		(577	)		(977	)
Amortization of acquired unfavorable lease		(189	)		(155	)
Deferred income taxes		215			(1,728	)
Loss on disposal of property and equipment		28			88
Share-based and other non-cash incentive compensation		4,366			2,189
Change in operating assets and liabilities:
Payment of contingent consideration		(5,328	)		—
Accounts receivable		(1,011	)		(4,380	)
Inventories		2,805			(554	)
Prepaid expenses and other assets		(1,000	)		(2,350	)
Accounts payable		(3,122	)		4,437
Accrued and other liabilities		2,023			(214	)
Income taxes		1,223			(2,408	)
Deferred revenue		73			(5,240	)
Net cash from operating activities		35,484			26,279
CASH FLOWS FROM INVESTING ACTIVITIES—
Purchases of property and equipment		(6,666	)		(13,511	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Financing and offering costs		(126	)		(3,351	)
Proceeds from stock option exercises and employee stock purchases		1,697			174
Excess tax benefits		1,470			232
Repurchase of common stock		(77	)		(546	)
Payments of contingent consideration		(675	)		(15,000	)
Payment of dividends		—			(475	)
Payments to former Mimix Holdings, Inc. stockholders		(4	)		(17	)
Proceeds from initial public offering, net of underwriters’ discount		—			98,175
Payment of Class B preference		—			(60,000	)
Net cash from financing activities		2,285			19,192
NET CHANGE IN CASH AND CASH EQUIVALENTS		31,103			31,960
CASH AND CASH EQUIVALENTS — Beginning of period		84,528			45,668
CASH AND CASH EQUIVALENTS — End of period	$	115,631		$	77,628
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	$	369		$	204
Cash paid for income taxes	$	5,923		$	17,213

See notes to condensed consolidated financial statements.

5

M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCOUNTING

Description of Business—M/A-COM Technology Solutions Holdings, Inc. (MACOM or the Company) was incorporated in Delaware on March 25, 2009. MACOM is a provider of high-performance analog semiconductor solutions for use in wireless and wireline applications across the radio frequency (RF), microwave and millimeterwave spectrum. Headquartered in Lowell, Massachusetts, MACOM has offices in North America, Europe, Asia and Australia.

The Company has one reportable operating segment which designs, develops, manufactures and markets semiconductors and modules.

Basis of Presentation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2012 filed with the SEC on November 28, 2012. The Company completed its initial public offering (IPO) in March 2012.

The Company’s fiscal year ends on the Friday closest to the last day of September. For fiscal years in which there are 53 weeks, the fourth quarter reporting period includes 14 weeks. Fiscal years 2012 and 2013 are 52 weeks in length.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year 2013. The condensed consolidated financial statements include the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.

Use of Estimates—The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities during the reporting periods, the reported amounts of revenue and expenses during the reporting periods, and the disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, the Company bases estimates and assumptions on historical experience, currently available information and various other factors that management believes to be reasonable under the circumstances. Actual results may differ materially from these estimates and assumptions. The accounting policies which our management believes involve the most significant application of judgment, or involve complex estimation include revenue recognition, inventory, warranty obligations, share-based compensation, income taxes and fair value measurements related to contingent consideration liabilities, common stock warrant liabilities and, through the completion of the IPO in March 2012, Class B conversion liabilities. Actual results could differ from those estimates, and material effects on our operating results and financial position may result.

Recent Accounting Standards—Under the Jumpstart Our Business Startups Act (JOBS Act), the Company meets the definition of an emerging growth company. The Company has elected to avail itself of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act.

6

2. FINANCIAL INSTRUMENTS

Financial liabilities measured at fair value on a recurring basis consist of the following (in thousands):

	June 28, 2013
	Fair Value		Active Markets for Identical Assets (Level 1)		Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Common stock warrant liability	$	9,596	$	—	$	—	$	9,596

	September 28, 2012
	Fair Value		Active Markets for Identical Assets (Level 1)		Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Contingent consideration	$	6,580	$	—	$	—	$	6,580
Common stock warrant liability	$	7,561	$	—	$	—	$	7,561

The changes in financial liabilities with inputs classified within Level 3 of the fair value hierarchy consist of the following (in thousands):

	Three Months Ended June 28, 2013
	March 29, 2013		Net Realized/ Unrealized Losses (Gains) Included in Earnings			Purchases and Issuances		Sales and Settlements		Transfers in and/or (out) of Level 3		June 28, 2013
Common stock warrant liability	$	10,656	$	(1,060	)	$	—	$	—	$	—	$	9,596

	Three Months Ended June 29, 2012
	March 30, 2012		Net Realized/ Unrealized Losses (Gains) Included in Earnings			Purchases and Issuances		Sales and Settlements		Transfers in and/or (out) of Level 3		June 29, 2012
Contingent consideration	$	9,424	$	101		$	—	$	—	$	—	$	9,525
Common stock warrant liability	$	16,725	$	(3,198	)	$	—	$	—	$	—	$	13,527

7

	Nine Months Ended June 28, 2013
	September 28, 2012		Net Realized/ Unrealized Losses (Gains) Included in Earnings			Purchases and Issuances		Sales and Settlements			Transfers in and/or (out) of Level 3		June 28, 2013
Contingent consideration	$	6,580	$	(577	)	$	—	$	(6,003	)	$	—	$	—
Common stock warrant liability	$	7,561	$	2,035		$	—	$	—		$	—	$	9,596

	Nine Months Ended June 29, 2012
	September 30, 2011		Net Realized/ Unrealized Losses (Gains) Included in Earnings			Purchases and Issuances		Sales and Settlements			Transfers in and/or (out) of Level 3		June 29, 2012
Contingent consideration	$	25,502	$	(977	)	$	—	$	(15,000	)	$	—	$	9,525
Common stock warrant liability	$	10,736	$	2,791		$	—	$	—		$	—	$	13,527
Class B conversion liability	$	81,378	$	44,119		$	—	$	(125,497	)	$	—	$	—

The fair values of the contingent consideration liabilities were estimated based upon a risk-adjusted present value of the probability-weighted expected payments by the Company. Specifically, the Company considered base, upside and downside scenarios for the operating metrics upon which the contingent payments are to be based. Probabilities were assigned to each scenario and the probability-weighted payments were discounted to present value using risk-adjusted discount rates. We paid Cobham Defense Electronic Corporation (Cobham) a final payment of $6.0 million for the final earn-out period ending September 30, 2012 in November 2012 and no further amounts are owed under the arrangement.

The Company has an earn-out arrangement with the former stockholders and option holders of Optomai, Inc. (Optomai), which was acquired in April 2011. The initial earn-out measurement periods expired on March 29, 2013. In May 2013, the arrangement was amended such that the final earn-out period was extended through September 27, 2013 and the maximum earn-out payment, subject to potential reductions, was limited to $3.8 million. Prior to the amendment, the contingent consideration was carried at fair value and is included as a financial instrument in the table above, with changes in fair value being recorded in earnings. Pursuant to the initial terms, no amounts were payable through March 29, 2013. Amounts that may be payable to the former Optomai stockholders pursuant to the amended earn-out terms are being accounted for in a manner similar to compensation whereby the Company is accruing the probable payment over the remaining period that expires September 27, 2013 and is excluded from the tables above for the periods ended June 28, 2013. The accounting in a manner similar to compensation is being applied because a majority of any payments made pursuant to the arrangement are expected to be payable to persons who are currently employed by the Company, although employment during the earn-out period is not required under the terms of the agreement. For the three and nine months ended June 28, 2013, the Company expensed $1.6 million related to the amended arrangement, of which $1.0 million is included in research and development expense and $569,000 is included in selling, general and administrative expense in the accompanying condensed consolidated statements of operations.

Prior to the Company’s IPO in March 2012, the fair value of the common stock warrants was estimated based upon a present value of the probability-weighted expected investment returns to the holders. The Company weighted various scenarios of possible investment returns to the holders over the terms of the contracts, such as upon a sale of the Company and upon an initial public offering of its common stock, using a range of potential outcomes. Using the scenarios developed, management considered the likely timing and method of exercise of the warrants and investment returns to the holders. Where a settlement was considered likely in the near term, the probable settlement amounts were weighted. Where the time to exercise was expected to be longer, a Black-Scholes option pricing model was used to estimate the fair value of the warrants, giving consideration to remaining contractual life, expected volatility and risk free rates. The probability-weighted expected settlement of the warrant was discounted to the present using a risk adjusted discount rate. After March 2012, the quoted market price of the common stock underlying the warrants has been used. As of June 28, 2013, the fair value of the common stock warrants has been estimated using a Black-Scholes option pricing model giving consideration to the quoted market price of the common stock on that date, an expected life of 7.5 years, expected volatility of 44.5% and risk free rate of 2.2%.

The fair values of the Class B conversion liabilities were estimated based upon a consideration of the estimated fair value of the underlying common stock into which the Company’s Class B convertible preferred stock (Class B) was convertible, and the expected preferential payments pursuant to the terms of the securities. The Company estimated the fair value of the common stock by using the same probability-weighted scenarios used in estimating the fair value of the warrants. For each potential scenario, the value to the Class B was estimated relative to the existing preferences. The Class B conversion liabilities were settled upon the closing of the Company’s IPO in March 2012.

8

These estimates include significant judgments about potential future liquidity events and actual results could materially differ and could have a material impact upon the values of the recorded liabilities. Any changes in the estimated fair values of the liabilities in the future will be reflected in the Company’s earnings and such changes could be material.

3. INVENTORIES

Inventories consist of the following (in thousands):

	June 28, 2013		September 28, 2012
Raw materials	$	30,679	$	29,922
Work-in-process		5,663		5,472
Finished goods		18,312		22,065
Total	$	54,654	$	57,459

In the nine months ended June 28, 2013, the Company refined its estimation process used to capitalize material and manufacturing variances to inventory to better reflect its current business. This change resulted in a $1.1 million increase to inventory and a corresponding reduction to costs of sales in March 2013.

4. PROPERTY AND EQUIPMENT

Property and equipment consists of the following (in thousands):

	June 28, 2013			September 28, 2012
Machinery and equipment	$	45,166		$	38,795
Leasehold improvements		4,992			4,876
Furniture and fixtures		721			699
Construction in process		3,677			4,188
Computer equipment and software		6,695			6,594
Total property and equipment		61,251			55,152
Less accumulated depreciation and amortization		(32,502	)		(24,943	)
Property and equipment — net	$	28,749		$	30,209

Depreciation and amortization expense related to property and equipment for the three months ended June 28, 2013 and June 29, 2012 was $2.5 million and $2.2 million, respectively. Depreciation and amortization expense related to property and equipment for the nine months ended June 28, 2013 and June 29, 2012 was $7.7 million and $6.5 million, respectively.

5. DEBT

On September 30, 2011, the Company entered into a loan agreement with a syndicate of lenders, which was subsequently augmented in February 2012 and November 2012. The agreement provides for a revolving credit facility of up to $150.0 million that matures in September 2016. Borrowings under the revolving credit facility bear a variable interest rate equal to (i) the greater of the lender’s prime rate, the federal funds effective rate plus 0.5%, or an adjusted LIBOR plus 1.0%, in each case plus either an additional 1.25%, 1.50% or 1.75%, subject to certain conditions, or (ii) an adjusted LIBOR rate plus either 2.25%, 2.50% or 2.75%, subject to certain conditions. The Company also pays a fee on the unused portion of the credit facility. The revolving credit facility is secured by a first priority lien on substantially all of the Company’s assets and requires compliance with certain financial and non-financial covenants, including restrictions on payments of dividends, incurrence of additional debt, levels of capital expenditures, amounts and types of investments, guarantees of debts and obligations, creation of liens, transactions with affiliates, sales or leases of assets, transfers of assets, entering new lines of business and entering into certain merger, consolidation or other reorganization transactions. As of June 28, 2013 and September 28, 2012, there were no outstanding borrowings under the revolving credit facility.

9

6. INTANGIBLE ASSETS

Intangible assets include an indefinite-lived trade name with a carrying value of $3.4 million and the following amortizable intangible assets (in thousands):

	Total			Acquired Technology			Customer Relationships
As of June 28, 2013
Intangible assets	$	26,154		$	13,754		$	12,400
Less accumulated amortization		(13,144	)		(7,779	)		(5,365	)
Intangible assets - net	$	13,010		$	5,975		$	7,035
As of September 28, 2012:
Intangible assets	$	26,154		$	13,754		$	12,400
Less accumulated amortization		(10,778	)		(6,358	)		(4,420	)
Intangible assets - net	$	15,376		$	7,396		$	7,980

Amortization expense related to the Company’s amortized intangible assets is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	June 28, 2013		June 29, 2012		June 28, 2013		June 29, 2012
Cost of revenue	$	473	$	383	$	1,421	$	1,147
Selling, general and administrative		315		257		945		772
Total	$	788	$	640	$	2,366	$	1,919

Estimated amortization of the intangible assets in future fiscal years as of June 28, 2013 (in thousands):

2013 (rest of fiscal year)	$	789
2014		3,155
2015		3,155
2016		2,391
2017		1,627
Thereafter		1,893
Total	$	13,010

7. STOCKHOLDER’S EQUITY

The Company has authorized 10 million shares of $0.001 par value preferred stock and 300 million shares of $0.001 par value common stock as of June 28, 2013.

Outstanding shares of our common stock as of June 28, 2013 and September 28, 2012 presented in the accompanying condensed consolidated statements of stockholders’ equity exclude 85,000 and 131,000 unvested shares of restricted common stock, respectively, issued as compensation to employees that are subject to forfeiture.

8. INCOME (LOSS) PER SHARE

Basic net income (loss) per common share was presented in conformity with the two-class method required for participating securities. Upon completion of the IPO in March 2012, all outstanding shares of preferred stock were converted to common stock. As a result, common stock is the only outstanding capital stock since the IPO.

Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. The Company’s potential dilutive common shares consist of common shares issuable upon the exercise of warrants, stock options and vesting of restricted stock units. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method.

10

The following table sets forth the computation for basic and diluted net income per share of common stock (in thousands, except per share data):

	Three Months Ended					Nine Months Ended
	June 28, 2013		June 29, 2012			June 28, 2013		June 29, 2012
Numerator:
Net income (loss)	$	9,367	$	13,545		$	23,561	$	(17,974	)
Accretion of redeemable preferred stock and participating stock dividends		—		(41	)		—		(2,616	)
Net income (loss) attributable to common stockholders	$	9,367	$	13,504		$	23,561	$	(20,590	)
Denominator:
Weighted average common shares outstanding-basic		46,066		45,160			45,788		17,933
Dilutive effect of options and warrants		1,155		2,104			1,248		—
Weighted average common shares outstanding-diluted		47,221		47,264			47,036		17,933
Common stock income (loss) per share:
Basic	$	0.20	$	0.30		$	0.51	$	(1.15	)
Diluted	$	0.20	$	0.29		$	0.50	$	(1.15	)

The table above excludes the effects of shares of common stock issuable upon exercise of stock options and warrants as well as the common stock issuable upon the conversion of preferred stock for the nine months ended June 29, 2012 as the inclusion of which would be antidilutive.

9. COMMITMENTS AND CONTINGENCIES

Unused Letter of Credit—As of June 28, 2013 and September 28, 2012, the Company had outstanding unused letters of credit from a bank aggregating $246,000.

Purchase Commitments—As of June 28, 2013 and September 28, 2012, the Company had outstanding non-cancelable purchase commitments aggregating $3.7 million and $6.3 million, respectively, pursuant to inventory supply arrangements. The Company has a long term technology licensing and transfer commitment that calls for potential payments by the Company of up to $9 million through July 2016.

Litigation—The Company is periodically subject to legal proceedings, claims and contingencies arising in the ordinary course of business.

GigOptix Matter. In April 2011, GigOptix, Inc. (GigOptix) filed a complaint and subsequently a first amended complaint (Complaint) in the Santa Clara County Superior Court against the Company, its subsidiary Optomai, and five of the employees (Ex-Employees) who had previously worked for GigOptix. GigOptix alleged that three of the Ex-Employees began conceptualizing a new business venture in 2009 (which would later become Optomai) before resigning from their employment with GigOptix, and that they used confidential information of GigOptix in their new business. The Complaint sought unspecified damages, attorneys’ fees and costs, and injunctive relief for alleged breach of employment-related agreements, trade secret misappropriation and other related alleged torts by the employee defendants, Optomai and, following its April 2011 acquisition of Optomai, the Company.

In July 2011, GigOptix sought a temporary restraining order and thereafter an injunction on the same grounds, both of which were denied by the court. In August 2011, GigOptix amended its Complaint for the second time to delete its causes of action for negligent and intentional interference with economic advantage and unfair competition, leaving the following causes of action to be adjudicated: (i) breach of duty of loyalty against the Ex-Employees only, (ii) breach of contract against the Ex-Employees only, (iii) misappropriation of trade secrets against all defendants, and (iv) unfair business practices against all defendants. Each side has served and responded to written discovery requests, produced documents and conducted witness depositions.

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On July 30, 2012, GigOptix filed and served a renewed motion for preliminary injunction, which was argued before the court on September 13, 2012. After considering evidence presented by the parties, including witness and expert testimony and forensic evidence, the court denied GigOptix’s renewed motion for preliminary injunction on September 18, 2012. The parties participated in a non-binding mediation of their dispute on December 20, 2012, but did not resolve the issues. In January 2013, the plaintiff’s claims were voluntarily dismissed as to two of the five individual Ex-Employee defendants and the court set a date for a trial beginning August 26, 2013. On July 26, 2013, the court heard motions brought by all defendants to stay the case on the basis that certain individual defendants are being investigated by the United States Attorneys’ Office for the Northern District of California, and consequently may be unavailable to testify and rebut allegations made in the civil complaint. On July 30, 2013, the court denied the defendants’ stay motions.

CSR Matter. In January 2013, CSR Technology Inc. (“CSR”) filed a complaint against the Company in the Massachusetts Superior Court for Suffolk County alleging breach of contract, breach of the implied covenant of good faith and fair dealing, misrepresentation, deceptive business practices and unfair competition, all relating to the Company’s purported failure to honor an alleged minimum purchase commitment contract between the Company with respect to certain semiconductor chips previously supplied by CSR for use in our automotive module product. The complaint claims alleged damages of $2.2 million and asks for attorney’s fees and other remedies. The Company filed an answer to the complaint on January 28, 2013. The parties are proceeding with discovery and document production.

The Company intends to continue to defend the aforementioned lawsuits vigorously. The Company does not expect that the ultimate cost to resolve these matters will have a material effect on the consolidated financial statements. The Company does not believe a risk of loss resulting from litigation is probable, nor is the Company able to estimate any reasonably possible range of loss.

10. RESTRUCTURINGS

The Company recorded restructuring charges of $1.9 million in fiscal year 2012 and $950,000 in the three and nine months ended June 28, 2013, representing the full cost of a reduction in staffing actions and consisting of direct and incremental costs related to severance and outplacement fees for terminated employees. The action in fiscal year 2012 was designed to further lower operating costs. The action in the three and nine months ended June 28, 2013 was designed to further reduce manufacturing and operating costs. The unpaid restructuring costs from fiscal year 2012 were paid during the nine months ended June 28, 2013 and the unpaid costs of $594,000 as of June 28, 2013 are expected to be paid through the first quarter of fiscal year 2014. The following is a summary of the costs related to the restructuring actions (in thousands):

Balance-September 28, 2012	$	328
Current period charges		950
Payments		(684	)
Balance-June 28, 2013	$	594

11. SHARE-BASED COMPENSATION

The following table presents the effects of share-based compensation expense related to share-based awards to employees and non-employees in the Company’s condensed consolidated statements of operations during the periods presented (in thousands):

	Three Months Ended				Nine Months Ended
	June 28, 2013		June 29, 2012		June 28, 2013		June 29, 2012
Cost of revenue	$	243	$	304	$	852	$	372
Research and development		421		391		1,277		603
Selling, general and administrative		756		518		2,597		1,142
Total stock-based compensation expense	$	1,420	$	1,213	$	4,726	$	2,117

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A summary of stock option activity for the nine months ended June 28, 2013, is as follows (in thousands, except per share amounts):

	Number of Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding-September 28, 2012		1,861		$	1.23		7.1	$	21,352
Exercised		(407	)		1.11
Forfeited, canceled or expired		(404	)		0.66
Outstanding-June 28, 2013		1,050			1.48		6.1		13,775
Options vested and expected to vest as of June 28, 2013		1,019			1.45		6.1		13,361
Options vested and exercisable as of June 28, 2013		781			1.35		6.1		10,355

Aggregate intrinsic value represents the difference between the Company’s closing stock price on June 28, 2013 and the exercise price of outstanding, in-the-money options. The total intrinsic value of options exercised was $$5.4 million for the nine months ended June 28, 2013. No options were granted in the nine months ended June 28, 2013. As of June 28, 2013, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options was $243,000, which is expected to be recognized over the next 1.0 years.

A summary of restricted stock and restricted stock units activity for the nine months ended June 28, 2013, is as follows (in thousands):

	Number of Shares			Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Unvested-September 28, 2012		582			2.9	$	7,391
Granted		843
Vested		(236	)
Forfeited, canceled or expired		(43	)
Issued and unvested-June 28, 2013		1,146			3.1		18,419
Shares expected to vest-June 28, 2013		1,014			3.1		16,298

The total intrinsic value of restricted stock awards vesting was $3.7 million for the nine months ended June 28, 2013. As of June 28, 2013, total unrecognized compensation cost, adjusted for estimated forfeitures, related to restricted stock and units was $13.6 million, which is expected to be recognized over the next 3.1 years.

As of June 28, 2013, total unrecognized compensation cost related to the 2012 Employee Stock Purchase Plan (ESPP) was not material.

Certain of the share-based awards granted and outstanding as of June 28, 2013 are subject to accelerated vesting upon a sale of the Company or similar changes in control.

Effective September 29, 2012, pursuant to an “evergreen” provision, the number of shares of common stock available for issuance under the 2012 Omnibus Incentive Plan and the ESPP were increased by 1.9 million shares and 0.6 million shares, respectively.

There were no material modifications to stock-based awards during the periods presented.

12. INCOME TAXES

The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax and may also be subject to current U.S. income tax. For interim periods, the Company records a tax provision or benefit based upon the estimated effective tax rate expected for the full fiscal year, adjusted for material discrete taxation matters arising during the interim periods.

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The difference between the U.S. federal statutory income tax rate of 35% and the Company’s effective income tax rates for the three and nine months ended June 28, 2013 and June 29, 2012 was driven primarily by the changes in fair values of the common stock warrant liability and, in the 2012 periods, the Class B conversion liability, neither of which are taxable nor deductible for tax purposes, income taxed in foreign jurisdictions at generally lower tax rates, partially offset by U.S. state income taxes, and, in the nine months ended June 28, 2013, a benefit relating to the retroactive reinstatement of the U.S. research and development tax credits, and, in the nine months ended June 29, 2012, a $1.7 million deferred income tax benefit resulting from a change in the deferred income tax liability related to acquired intangible assets. The U.S. research and development tax credit, which had previously expired on December 31, 2011, was reinstated as part of The American Taxpayer Relief Act of 2012 enacted on January 2, 2013.

13. RELATED PARTY TRANSACTIONS

GaAs Labs, LLC (GaAs Labs), a stockholder and an affiliate of directors and majority stockholders John and Susan Ocampo, was formerly engaged to provide management services pursuant to an agreement entered into in fiscal year 2008 and amended in December 2010. Commencing in fiscal year 2009, the Company paid GaAs Labs $60,000 per month. Selling, general and administrative expenses for the nine months ended June 29, 2012 include $360,000 for such services. The agreement terminated by its terms concurrently with the closing of the IPO in March 2012.

In April 2012, the Company entered into an agreement with GaAs Labs whereby GaAs Labs pays the Company for administrative and business development services provided to GaAs Labs on a time and materials basis. There are no minimum service requirements or payment obligations and the agreement may be terminated by either party with 30 days notice. In the three and nine months ended June 28, 2013, the Company billed GaAs Labs $123,000 and $293,000, respectively, for services provided pursuant to this agreement and has recorded these amounts as other income in the accompanying condensed consolidated statements of operations.

In February 2012, the Company entered into a design services agreement with Ubiquiti Networks, Inc. (Ubiquiti). Two of the Company’s directors are also directors of Ubiquiti. An affiliate of one of the directors is also an Ubiquiti stockholder. The agreement provides that the Company will provide engineering services to Ubiquiti toward the development of a device. The agreement also provides that Ubiquiti will pay the Company up to $500,000 for such services based on milestone achievement and sets a unit price for any future production orders of such devices. Pursuant to the terms of the agreement, the Company recorded revenue of $0 and $92,000 respectively, for the three months ended June 28, 2013 and June 29, 2012 and $200,000 and $200,000, respectively, for the nine months then ended.

In the three and nine months ended June 28, 2013, the Company recorded revenue of $242,000 from sales of product to a privately-held company with a common director.

14. SUPPLEMENTAL CASH FLOW INFORMATION

As of June 28, 2013 and June 29, 2012, the Company had $821,000 and $1.5 million, respectively, in unpaid amounts related to purchases of property and equipment included in accounts payable and accrued liabilities. These amounts have been excluded from the payments for purchases of property and equipment in the accompanying condensed consolidated statements of cash flows until paid.

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15. GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION

Information about the Company’s operations in different geographic regions, based upon customer locations, is presented below (in thousands):

	Three Months Ended				Nine Months Ended
Revenue by Geographic Region	June 28, 2013		June 29, 2012		June 28, 2013		June 29, 2012
United States	$	46,835	$	40,608	$	137,729	$	116,938
International (1)		35,390		36,517		97,334		110,702
Total	$	82,225	$	77,125	$	235,063	$	227,640

	As of
Long-Lived Assets by Geographic Region	June 28, 2013		September 28, 2012
United States	$	22,303	$	23,027
International (2)		6,446		7,182
Total	$	28,749	$	30,209

(1) No international countries represented greater than 10% of total revenue during the periods presented.

(2) No international country or region represented greater than 10% of the total net long-lived assets as of the dates presented, other than the Asia-Pacific region, which accounted for 13% as of June 28, 2013.

The following is a summary of customer concentrations as a percentage of total sales and accounts receivable as of and for the periods presented:

	Three Months Ended						Nine Months Ended
Revenue	June 28, 2013			June 29, 2012			June 28, 2013			June 29, 2012
Customer A		14	%		17	%		15	%		18	%
Customer B		25	%		16	%		25	%		14	%

	As of
Accounts Receivable	June 28, 2013			September 28, 2012
Customer A		16	%		16	%
Customer B		21	%		18	%

No other customer represented more than 10% of revenue or accounts receivable in the periods presented in the accompanying consolidated financial statements. For the three months ended June 28, 2013 and June 29, 2012, ten customers represented 59% and 59% of total revenue, respectively. For the nine months ended June 28, 2013 and June 29, 2012, ten customers represented 59% and 54% of total revenue, respectively.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion of our financial condition and results of operations in conjunction with the condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the fiscal year ended September 28, 2012 filed with the Securities and Exchange Commission (SEC) on November 28, 2012.

M/A-COM Technology Solutions Holdings, Inc. and its subsidiaries are collectively referred to herein as the “Company,” “we,” “us” or “our.”

Cautionary Note Regarding Forward-Looking Statements

This Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of this Quarterly Report on Form 10-Q contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, we may make other written and oral communications from time to time that contain such statements. Forward-looking statements include statements as to industry trends and our future expectations and other matters that do not relate strictly to historical facts. These statements are often identified by the use of words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue,” and similar expressions or variations. These statements are based on management’s beliefs and assumptions as of the date of this report, based on information currently available to us. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described herein in Part II. Item 1A, “Risk Factors” and in the section entitled “Risk Factors” in our Annual Report on Form 10-K as filed with the SEC on November 28, 2012. We caution the reader to carefully consider such factors. Furthermore, such forward-looking statements speak only as of the date of this report. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

Overview

We are a leading provider of high-performance analog semiconductor solutions for use in wireless and wireline applications across the radio frequency (RF), microwave and millimeterwave spectrum. We leverage our system-level expertise to design and manufacture differentiated, high-value products for customers who demand high performance, quality and reliability. The diversity and depth of our business across technologies, products, applications, end markets and geographies provide us with opportunities for growth and enable us to develop broad relationships with our customers. We offer over 2,700 standard and custom devices, which include integrated circuits (ICs), multi-chip modules, power pallets and transistors, diodes, switches and switch limiters, passive and active components and complete subsystems, across 37 product lines serving over 6,000 end customers in four large primary markets with opportunities for long-term future growth. Our semiconductor products are electronic components that our customers incorporate into their larger electronic systems, such as point-to-point radios, radar, optical components, satellite communications systems, automobile navigation systems, cable television (CATV) set-top boxes, magnetic resonance imaging systems and unmanned aerial vehicles. Our primary markets are Networks, which includes CATV, cellular backhaul, cellular infrastructure and optical communications applications; Aerospace and Defense (A&D); Automotive, which includes global positioning modules (GPS) we sell to the automotive industry; and Multi-market, which includes industrial, medical, mobile communications and scientific applications. Commencing in the first quarter of fiscal year 2013, we separated the products sold in our Automotive market from Multi-market in presenting our revenue by market for the current and historical periods due to its growing significance to our overall business. We have one reportable operating segment, semiconductors and modules. We have a 52 or 53-week fiscal year ending on the Friday closest to September 30.

Description of Our Revenue, Cost of Revenue and Expenses

Revenue. Substantially all of our revenue is derived from sales of high-performance analog semiconductor solutions for use in wireless and wireline applications across the RF, microwave and millimeterwave spectrum. We design, integrate, manufacture and package differentiated product solutions that we sell to customers through our direct sales organization, our network of independent sales representatives and our distributors.

We believe the primary drivers of our future revenue growth will include:

• early customer engagement with our lead customers to develop products and solutions that can be driven across multiple growth markets;

• leveraging our core strength and leadership position in standard, catalog products that service all of our end applications;

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• increasing content of our semiconductor solutions in our customers’ systems through cross-selling of our 37 product lines;

• introduction of, and the market’s reception to, new products that command higher prices based on the application of advanced technologies such as Gallium Nitride (GaN), added features, higher levels of integration and improved performance; and

• growth in the market for high-performance analog semiconductors generally, and in our four primary markets in particular.

Our core strategy is to develop innovative, high-performance products that address our customers’ most difficult technical challenges in our primary markets: Networks, A&D, Automotive and Multi-market. While sales in any or all of our primary markets may slow or decline from period to period, over the long term we generally expect to benefit from strength in these markets.

We expect growth in the Networks market to be primarily driven by continued upgrades and expansion of communications equipment to support expansion in Internet traffic, driven by the proliferation of mobile computing devices such as smartphones and tablets coupled with bandwidth rich services such as video on demand and cloud computing.

We expect growth in the A&D market to be driven by the upgrading of radar applications and battlefield communications devices designed to improve situational awareness. Growth in this market is subject to changes in governmental programs and budget funding, which is difficult to predict.

We expect continued strength in the Automotive market subject to fluctuations in our largest customer’s market share and overall macroeconomic conditions.

The Multi-market is our most diverse market, and we expect steady growth over the long term in this market for our multi-purpose catalog products.

We believe GaN technology will be a key long-term enabler in growth applications across a number of our commercial and defense-related markets, and that we are well-positioned to differentiate ourselves from competitors in the GaN market in the future by providing customers with a secure dual source supply chain for high performance GaN devices.

Cost of revenue. Cost of revenue consists primarily of the cost of semiconductor wafers and other materials used in the manufacture of our products, and the cost of assembly and testing of our products, whether performed by our internal manufacturing personnel or outsourced vendors. Cost of revenue also includes costs associated with personnel engaged in our manufacturing operations, such as wages and share-based compensation expense, as well as costs and overhead related to our manufacturing operations, including lease occupancy and utility expense related to our manufacturing operations, depreciation, production computer services and equipment costs, and the cost of our manufacturing quality assurance and supply chain activities. Further, cost of revenue includes the impact of warranty and inventory adjustments, including write-downs for excess and obsolete inventory as well as amortization of intangible assets related to acquired technology.

We seek to introduce high-performance products that are valued by our customers for their ability to address technically challenging applications, rather than commoditized products used in high-volume applications where cost, rather than performance, is the highest priority.

Our gross margin in any period is significantly affected by industry demand and competitive factors in the markets into which we sell our products. Gross margin is also significantly affected by our product mix, that is, the percentage of our revenue in that period that is attributable to relatively higher or lower-margin products. Additional factors affecting our gross margin include fluctuations in the cost of wafers and materials, including precious metals, utilization of our wafer fabrication operation, or fab, level of usage of outsourced manufacturing, assembly and test services, changes in our manufacturing yields, changes in foreign currencies and numerous other factors, some of which are not under our control. As a result of these or other factors, we may be unable to maintain or increase our gross margin in future periods and our gross margin may fluctuate from period to period.

Gross margin was 44.1% and 45.9% for the three months ended June 28, 2013 and June 29, 2012, respectively. Gross margin was 43.6% and 45.4% for the nine months ended June 28, 2013 and June 29, 2012, respectively. Over the long-term we generally expect improvement in our gross margin as we continue implementing cost savings initiatives, execute on our new product development and sales and marketing strategies and experience higher volumes.

Research and development. Research and development (R&D) expense consists primarily of costs relating to our employees engaged in the design and development of our products and technologies, including wages and share-based compensation. R&D expense also includes costs for consultants, facilities, services related to supporting computer design tools used in the engineering and design process, prototype development and project materials. We expense all research and development costs as incurred. We have made a significant investment in R&D since March 2009 and expect to maintain or

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increase the dollar amount of R&D investment in future periods, although amounts may increase or decrease in any individual quarter. Commencing in May 2013, R&D also includes expense for potential earn-out payments related to the acquisition of Optomai as further described below under Contingent consideration.

Selling, general and administrative. Selling, general and administrative (SG&A) expense consists primarily of costs of our executives, sales and marketing, finance, human resources and administrative organizations, including wages and share-based compensation. SG&A expense also includes professional fees, sales commissions paid to independent sales representatives, costs of advertising, trade shows, marketing, promotion, travel, occupancy and equipment costs, computer services costs, costs of providing customer samples and amortization of certain intangible assets relating to customer relationships. Commencing in May 2013, SG&A also includes expense for potential earn-out payments related to the acquisition of Optomai as further described below under Contingent consideration.

Contingent consideration. We have partially funded the acquisition of businesses through contingent earn-out consideration in which we have agreed to pay contingent amounts to the previous owners of acquired businesses based upon those businesses achieving contractual milestones. We record these obligations as liabilities at fair value and any changes in fair value are reflected in our earnings.

In May 2013, we amended the terms of an earn-out arrangement with the former stockholders of Optomai, Inc. whereby the earn-out period was extended through September 27, 2013 and the maximum earn-out payments, subject to potential reductions, was limited to $3.8 million. Because the amended potential earn-out was not contemplated at the acquisition date, the as amended potential earn-out payments are accounted for in a manner similar to contingent compensation and is no longer carried at fair value since the date of amendment. This accounting is being applied because a majority of any payments made pursuant to the arrangement are expected to be payable to persons who are currently employed by us, although employment is not required under the terms of the earn-out. The minimum probable earn-out payments are being expensed through the amended earn-out period ending September 27, 2013 and included in R&D and SG&A.

Restructuring charges. Restructuring expense consists of severance and related costs incurred in connection with reductions in staff relating to initiatives designed to lower our manufacturing and operating costs.

Other income (expense). Other income (expense) consists of accretion of our common stock warrant liability, accretion of our Class B conversion liability, which was settled in March 2012, interest expense and income from our administrative and business development services agreement with GaAs Labs, which is an affiliate of our directors and majority stockholders John and Susan Ocampo.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements. The preparation of financial statements, in conformity with generally accepted accounting principles in the U.S. (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. By their nature, these estimates and judgments are subject to an inherent degree of uncertainty. On an ongoing basis, we re-evaluate our judgments and estimates. We base our estimates and judgments on our historical experience and on other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making the judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The accounting policies which our management believes involve the most significant application of judgment, or involve complex estimation, include revenue recognition, inventory, warranty obligations, share-based compensation, income taxes and fair value measurements related to contingent consideration liabilities, common stock warrant liabilities and, through the completion of the IPO in March 2012, Class B conversion liabilities. Actual results could differ from those estimates, and material effects on our operating results and financial position may result.

For a description of the accounting policies which, in our opinion, involve the most significant application of judgment, or involve complex estimation, and which could, if different judgments or estimates were made, materially affect our reported results of operations, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the fiscal year ended September 28, 2012.

As discussed in Part II, Item 1A. “Risk Factors”, as an emerging growth company and pursuant to Section 102(6)(1) of the JOBS Act, we have elected to delay adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies, and thus our financial statements may not be comparable to those of other companies that comply with public company effective dates.

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Results of Operations

The following table sets forth, for the periods indicated, our statement of operations data (in thousands):

	Three Months Ended						Nine Months Ended
	June 28, 2013			June 29, 2012			June 28, 2013			June 29, 2012
Revenue	$	82,225		$	77,125		$	235,063		$	227,640
Cost of revenue (1)		45,932			41,721			132,644			124,272
Gross profit		36,293			35,404			102,419			103,368
Operating expenses:
Research and development (1)		11,120			9,193			31,093			27,857
Selling, general and administrative (1) (4) (5)		12,980			10,706			36,552			33,024
Contingent consideration		—			101			(577	)		(977	)
Restructuring charges		950			—			950			1,586
Total operating expenses		25,050			20,000			68,018			61,490
Income from operations		11,243			15,404			34,401			41,878
Other income (expense):
Accretion of common stock warrant liability (2)		1,060			3,198			(2,035	)		(2,791	)
Accretion of Class B conversion liability (3)		—			—			—			(44,119	)
Interest expense (1)		(190	)		(161	)		(616	)		(545	)
Other income - related party		123			91			293			91
Total other income (expense)		993			3,128			(2,358	)		(47,364	)
Income (loss) before income taxes		12,236			18,532			32,043			(5,486	)
Income tax provision		2,869			4,987			8,482			12,488
Net income (loss)	$	9,367		$	13,545		$	23,561		$	(17,974	)

(1) Amortization expense related to intangible assets arising from acquisitions, non-cash compensation expense, potential earn-out payments and amortization of deferred financing costs recorded as interest expense included in our consolidated statements of operations is set forth below (in thousands):

	Three Months Ended				Nine Months Ended
	June 28, 2013		June 29, 2012		June 28, 2013		June 29, 2012
Amortization expense:
Cost of revenue	$	473	$	383	$	1,421	$	1,147
Selling, general and administrative		315		257		945		772
Non-cash compensation expense: (a)
Cost of revenue		243		302		823		380
Research and development		421		388		1,226		612
Selling, general and administrative		756		503		2,317		1,197
Potential earn-out payments:
Research and development		1,021		—		1,021		—
Selling, general and administrative		569		—		569		—
Amortization of deferred financing costs – interest expense		74		68		247		200

(a) Includes share-based compensation and other non-cash incentive compensation.

(2) Represents changes in the fair value of common stock warrants recorded as liabilities and adjusted each reporting period to fair value.

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(3) Represents changes in the fair value of certain features of our Class B convertible preferred stock that were recorded as liabilities and adjusted each reporting period to fair value. The liabilities were settled in connection with the IPO in March 2012.

(4) Includes Optomai litigation costs of $0.3 million and $0.6 million, respectively, incurred in the three and nine months ended June 28, 2013.

(5) Includes $1.3 million of remediation costs pertaining to an exited leased facility incurred in the nine months ended June 28, 2013.

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The following table sets forth, for the periods indicated, our statement of operations data expressed as a percentage of our revenue:

	Three Months Ended						Nine Months Ended
	June 28, 2013			June 29, 2012			June 28, 2013			June 29, 2012
Revenue		100.0	%		100.0	%		100.0	%		100.0	%
Cost of revenue		55.9			54.1			56.4			54.6
Gross margin		44.1			45.9			43.6			45.4
Operating expenses:
Research and development		13.5			11.9			13.2			12.2
Selling, general and administrative		15.8			13.9			15.5			14.5
Contingent consideration		—			0.1			(0.2	)		(0.4	)
Restructuring charges		1.2			—			0.4			0.7
Total operating expenses		30.5			25.9			28.9			27.0
Income from operations		13.7			20.0			14.6			18.4
Other income (expense):
Accretion of common stock warrant liability		1.3			4.1			(0.9	)		(1.2	)
Accretion of Class B conversion liability		—			—			—			(19.4	)
Interest expense		(0.2	)		(0.2	)		(0.3	)		(0.2	)
Other income - related party		0.1			0.1			0.1			—
Total other income (expense)		1.2			4.1			(1.0	)		(20.8	)
Income (loss) before income taxes		14.9			24.0			13.6			(2.4	)
Income tax provision		3.5			6.5			3.6			5.5
Net income (loss)		11.4	%		17.6	%		10.0	%		(7.9	)%

Comparison of the Three and Nine Months Ended June 28, 2013 to the Three and Nine Months Ended June 29, 2012

Revenue. Our revenue increased $5.1 million, or 6.6%, to $82.2 million for the three months ended June 28, 2013 from $77.1 million for the three months ended June 29, 2012. Our revenue increased $7.4 million, or 3.3%, to $235.1 million for the nine months ended June 28, 2013 from $227.6 million for the nine months ended June 29, 2012. The increase in revenue in the 2013 periods was primarily due to continued strength in our Automotive market and, for the three months ended June 28, 2013, strength in our optical, CATV, and broadband products. These increases were partially offset by soft demand in our other markets, which we believe primarily reflects softness in regional capital spending in telecommunications as well as fluctuations in demand in A&D.

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Revenue from our primary markets, the percentage of change between the periods, and revenue by primary markets expressed as a percentage of total revenue were (in thousands, except percentages):

	Three Months Ended									Nine Months Ended
	June 28, 2013			June 29, 2012			% Change			June 28, 2013			June 29, 2012			% Change
Networks	$	22,526		$	21,655			4.0	%	$	61,921		$	62,624			(1.1	)%
A&D		22,533			23,843			(5.5	)%		64,003			72,528			(11.8	)%
Automotive		22,047			13,603			62.1	%		63,148			37,374			69.0	%
Multi-Market		15,119			18,024			(16.1	)%		45,991			55,114			(16.6	)%
Total	$	82,225		$	77,125					$	235,063		$	227,640
Networks		27.4	%		28.1	%					26.3	%		27.5	%
A&D		27.4	%		30.9	%					27.2	%		31.9	%
Automotive		26.8	%		17.6	%					26.9	%		16.4	%
Multi-Market		18.4	%		23.4	%					19.6	%		24.2	%
Total		100.0	%		100.0	%					100.0	%		100.0	%

In the three months ended June 28, 2013, our Networks market revenue increased by $0.9 million, or 4.0%, compared to the three months ended June 29, 2012. In the nine months ended June 28, 2013, our Networks market revenue decreased by $0.7 million, or 1.1%, compared to the nine months ended June 29, 2012. The increase between the three month periods was due primarily to increased sales of our products targeting 100G Optical applications. The decrease between the nine month periods was primarily due to a continuing slowdown in capital spending by telecommunications operators for cellular infrastructure and wireless backhaul applications, partially offset by strength in our optical products.

In the three months ended June 28, 2013, our A&D market revenue decreased by $1.3 million, or 5.5%, compared to the three months ended June 29, 2012. In the nine months ended June 28, 2013, our A&D market revenue decreased by $8.5 million, or 11.8%, compared to the nine months ended June 29, 2012. We attribute these decreases in both periods primarily to weaker demand for satellite communications applications and continued weaker overall market demand for tactical and public safety radios, as well as in certain legacy radar programs.

In the three months ended June 28, 2013, our Automotive revenues increased by $8.4 million, or 62.1%, compared to the three months ended June 29, 2012. In the nine months ended June 28, 2013, our Automotive revenues increased by $25.8 million, or 69.0%, compared to the nine months ended June 29, 2012. We attribute this growth in both primarily to adoption by our largest automotive customer of our GPS modules across the majority of its domestic fleet as well as further penetration into the international market.

In the three months ended June 28, 2013, our Multi-market revenues decreased by $2.9 million, or 16.1%, compared to the three months ended June 29, 2012. In the nine months ended June 28, 2013, our Multi-market revenues decreased by $9.1 million, or 16.6%, compared to the nine months ended June 29, 2012. We attribute this decrease in both periods primarily to a continued ramp down of certain higher volume consumer targeted products, lower demand for our catalog products for test and measurement applications as well as lower demand for certain catalog products resulting from general market softness.

Gross margin. Gross margin was 44.1% for the three months ended June 28, 2013 and 45.9% for the three months ended June 29, 2012. Gross margin was 43.6% for the nine months ended June 28, 2013 and 45.4% for the nine months ended June 29, 2012. Gross margin in the 2013 periods compared to the 2012 periods was negatively impacted by unfavorable manufacturing variances and product mix, as well as increases in warranty costs, non-cash compensation, depreciation and amortization. These were partially offset by a refinement in the estimation process we use to capitalize material and manufacturing variances to inventory to better reflect our current business, as well as lower payroll costs, external services and relocation expenses. The unfavorable manufacturing variances were primarily a result of the aforementioned ramp down of higher volume consumer targeted products. The negative product mix was primarily due to the increase in revenue from lower gross margin automotive products, and partially offset by lower costs to manufacture these products and increased sales of higher margin optical products.

Research and development. R&D expense increased by $1.9 million, or 21.0%, to $11.1 million, or 13.5% of our revenue, for the three months ended June 28, 2013 compared with $9.2 million, or 11.9% of our revenue, for the three months ended June 29, 2012. R&D expense increased by $3.2 million, or 11.6%, to $31.1 million, or 13.2% of our revenue, for the nine months ended June 28, 2013 compared with $27.9 million, or 12.2% of our revenue, for the nine months ended June 29, 2012. Research and development costs in the 2013 periods increased as compared to the 2012 periods primarily as a result of increases in potential earn-out payments, cash and non-cash compensation, engineering supplies, and costs for seminars and conferences, partially offset by increased foreign government research tax credits. In addition, for the nine months ended June 28, 2013, foundry purchases and foreign government grants both increased as compared to the comparable 2012 period.

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Selling, general and administrative. SG&A expense increased $2.3 million, or 21.2%, to $13.0 million, or 15.8% of our revenue, for the three months ended June 28, 2013 compared with $10.7 million, or 13.9% of our revenue, for the three months ended June 29, 2012. SG&A expense increased $3.5 million, or 10.7%, to $36.6 million, or 15.5% of our revenue, for the nine months ended June 28, 2013 compared with $33.0 million, or 14.5% of our revenue, for the nine months ended June 29, 2012. The increase between the three month periods was primarily due to increases in potential earn-out payments, professional fees, including litigation related, and increases in cash and non-cash compensation, partially offset by lower commissions paid to third party representatives. The increase between the nine month periods was primarily due to a charge of $1.3 million pertaining to restoration of a leased facility that was exited in fiscal year 2012 as well as increases in cash and non-cash and other employee compensation and depreciation expense, partially offset by lower bad debt expense and employee relocation costs.

Contingent consideration. Contingent consideration was an expense of zero and a gain of $0.6 million, respectively for the three and nine months ended June 28, 2013 compared with an expense of $0.1 million for the three months ended June 29, 2012 and a gain of $1.0 million for the nine months ended June 29, 2012. Contingent consideration is a result of changes in the fair value of the contingent consideration we paid or expected to pay related to acquisitions.

Restructuring charges. Restructuring charges were $1.0 million for the three and nine months ended June 28, 2013 compared with zero and $1.6 million for the three and nine months ended June 29, 2012, respectively. The restructuring charge in the 2012 period related to a reduction of staffing during the period and represents severance and related benefits that we paid in fiscal years 2012 and 2013.

In April 2013, we implemented a restructuring plan to further reduce manufacturing and operating costs through a reduction of staffing. This restructuring plan resulted in a charge of $1.0 million, representing the full cost of the actions and consisting of direct and incremental costs related to severance and outplacement fees for terminated employees. These costs are expected to be paid through the first quarter of fiscal year 2014.

Income from operations. Income from operations decreased $4.2 million, or 27.0%, to $11.2 million or 13.7% of our revenue for the three months ended June 28, 2013 compared with $15.4 million or 20.0% of our revenue for the three months ended June 29, 2012. Income from operations decreased $7.5 million, or 17.9%, to $34.4 million or 14.6% of our revenue for the nine months ended June 28, 2013 compared with $41.9 million or 18.4% of our revenue for the nine months ended June 29, 2012.

Accretion of common stock warrant liability. Common stock warrant gain of $1.1 million for the three months ended June 28, 2013 compares to a gain of $3.2 million for the three months ended June 29, 2012. Common stock warrant expense of $2.0 million for the nine months ended June 28, 2013 compares to an expense of $2.8 million for the nine months ended June 29, 2012. The changes relate to the changes in the estimated fair value of common stock warrants we issued in December 2010, which we carry as a liability at fair value.

Interest expense. Interest expense was $0.2 million for the three months ended June 28, 2013 and June 29, 2012. Interest expense was $0.6 million for the nine months ended June 28, 2013 and $0.5 million for the nine months ended June 29, 2012.

Other income - related party. In the three and nine months ended June 28, 2013, we billed GaAs Labs $0.1 million and $0.3 million, respectively, for services provided pursuant to our administrative and business development services agreement with it and have recorded the amount as other income. This compares to $0.1 million recorded in the three and nine months ended June 29, 2012.

Provision for income taxes. The provision for income taxes was $2.9 million and $5.0 million for the three months ended June 28, 2013 and June 29, 2012, respectively, and $8.5 million and $12.5 million for the nine months ended June 28, 2013 and June 29, 2012, respectively. The provision for income taxes and the effective income tax rates decreased in the three months ended June 28, 2013 as compared to the three months ended June 29, 2012 primarily due to increases in the 2013 period in the amount of income taxed in foreign jurisdictions at generally lower tax rates. The provision for income taxes and the effective income tax rates decreased in the nine months ended June 28, 2013 as compared to the nine months ended June 29, 2012 primarily due to increases in the 2013 period of income taxed in foreign jurisdictions as well as due to the impact of a retroactive U.S. research and development tax credit that had previously expired on December 31, 2011 and was reinstated as part of The American Taxpayer Relief Act of 2012 enacted on January 2, 2013, resulting in a larger benefit being recognized in the nine months ended June 28, 2013.

The difference between the U.S. federal statutory income tax rate of 35% and the Company’s effective income tax rates for the three and nine months ended June 28, 2013 and June 29, 2012 was driven primarily by changes in fair values of the common stock warrant liability and, in the 2012 periods, the Class B conversion liability, neither of which are deductible nor taxable for tax purposes, income taxed in foreign jurisdictions at generally lower tax rates partially offset by U.S. state income taxes, and, in the nine months ended June 28, 2013, a benefit relating to the retroactive reinstatement of the U.S. research and development tax credits, and, in the nine months ended June 29, 2012, a $1.7 million deferred income tax benefit resulting from a change in the deferred income tax liability related to acquired intangible assets. The U.S. research and development tax credit, which had previously expired on December 31, 2011, was reinstated as part of The American Taxpayer Relief Act of 2012 enacted on January 2, 2013.

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Liquidity and Capital Resources

As of June 28, 2013, we held $115.6 million of cash and cash equivalents, all deposited with financial institutions, including in money market accounts. Cash from operations was $35.5 million in the nine months ended June 28, 2013, of which the principal components were a net income of $23.6 million, plus non-cash expenses of $16.3 million, partially offset by a reduction in cash flows from operating assets and liabilities of $4.3 million. The change in operating assets and liabilities includes decreases in inventory of $2.8 and net income tax receivable of $1.2 million as well as increases in accounts receivable and other current assets aggregating $2.0 million and net decreases in accounts payable and other current liabilities, excluding an earn-out obligation, aggregating $1.1 million. In addition, during the nine months ended June 28, 2013, we paid Cobham $6.0 million as a third and final earn-out payment, $5.3 million of which is reflected as a reduction of cash from operations and the remaining $0.7 million is reflected as a reduction of cash from financing activities.

Cash used in investing activities was $6.7 million in the nine months ended June 28, 2013, all of which consisted of purchases of property and capital equipment, including renovation of a leased facility and purchases of production and manufacturing equipment, tooling, engineering equipment and software tools.

Cash from financing activities was $2.3 million in the nine months ended June 28, 2013. Proceeds from stock option exercises, employee stock purchases and excess tax benefits related to restricted stock awards totaled $3.2 million during the period.

We have a revolving credit facility with up to $150.0 million in borrowing availability maturing in September 2016. Borrowings under the revolving credit facility bear a variable interest rate. The revolving credit facility is secured by a first priority lien on substantially all of our assets and provides that we must comply with certain financial and non-financial covenants. We were in compliance with all financial and non-financial covenants under the revolving credit facility as of June 28, 2013 and had no outstanding borrowings under the revolving credit facility as of that date.

We have a long term technology licensing and transfer commitment that calls for potential payments by us of up to $9 million through July 2016.

The undistributed earnings of our foreign subsidiaries are indefinitely reinvested since we do not intend to repatriate such earnings. We believe the decision to reinvest these earnings will not have a significant impact on our liquidity. As of June 28, 2013, cash held by our foreign subsidiaries was $13.3 million, which, along with cash generated from foreign operations, is expected to be used in the support of international growth and working capital requirements.

We plan to use our available cash and cash equivalents for general corporate purposes, including working capital. We may also use a portion of our cash and cash equivalents for the acquisition of, or investment in, complementary technologies, design teams, products and companies. We believe that our cash and cash equivalents and cash generated from operations will be sufficient to meet our working capital requirements for at least the next 12 months.

Recent Accounting Pronouncements

See Note 1 to Condensed Consolidated Financial Statements contained in Part I. Item 1, “Financial Statements” in this Quarterly Report on Form 10-Q.

Off-Balance Sheet Arrangements

We did not have any off-balance sheet arrangements as of June  28, 2013.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risk in the ordinary course of business, which consists primarily of interest rate risk associated with our cash and cash equivalents, as well as foreign exchange rate risk.

Interest rate risk. The primary objectives of our investment activity are to preserve principal, provide liquidity and earn a market rate of return. To minimize market risk, we maintain our portfolio in cash and diversified short-term investments, which may consist of bank deposits, money market funds and highly-rated, short-term US government securities and short-term commercial paper through domestic banks who are insured by the Federal Deposit Insurance Corporation. The interest rates are variable and fluctuate with current market conditions. The risk associated with fluctuating interest rates is limited to this investment portfolio. We believe that a 10% change in interest rates would not have a material impact on our financial position or results of operations.

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Our exposure to interest rate risk also relates to the increase or decrease in the amount of interest expense we must pay on our revolving credit facility. The interest rate on our revolving credit facility is a variable interest rate based on our lender’s prime rate or the federal funds effective rate, in each case, plus the applicable lender’s margin or an adjusted LIBOR plus the applicable lender’s margin, which exposes us to market interest rate risk when we have outstanding borrowings under the revolving credit facility. As of June 28, 2013, we had no outstanding borrowings under the revolving credit facility. We believe that a 10% change in interest rates would not have a material impact on our financial position or results of operations.

Foreign currency risk. To date, our international customer agreements have been denominated primarily in U.S. dollars. Accordingly, we have limited exposure to foreign currency exchange rates. The functional currency of a majority of our foreign operations is U.S. dollars with the remaining operations being local currency. The effects of exchange rate fluctuations on the net assets of the majority of our operations are accounted for as transaction gains or losses. We believe that a change of 10% in such foreign currency exchange rates would not have a material impact on our financial position or results of operations. In the future, we may enter into foreign currency exchange hedging contracts to reduce our exposure to changes in exchange rates.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act)), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 28, 2013.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended June 28, 2013 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time we may be subject to commercial disputes, employment issues, claims by other companies in the industry that we have infringed their intellectual property rights and other similar claims and litigations. Any such claims may lead to future litigation and material damages and defense costs. Other than as set forth below, we were not involved in any material pending legal proceedings during the three months ended June 28, 2013.

GigOptix Matter. In April 2011, GigOptix, Inc. (GigOptix) filed a complaint and subsequently a first amended complaint (Complaint) in the Santa Clara County Superior Court against us, our subsidiary Optomai, and five employees (Ex-Employees) who had previously worked for GigOptix. GigOptix alleged that three of the Ex-Employees began conceptualizing a new business venture in 2009 (which would later become Optomai) before resigning from their employment with GigOptix, and that they used confidential information of GigOptix in their new business. The Complaint sought unspecified damages, attorneys’ fees and costs, and injunctive relief for alleged breach of employment-related agreements, trade secret misappropriation and other related alleged torts by the employee defendants, Optomai and, following our April 2011 acquisition of Optomai, us.

In July 2011, GigOptix sought a temporary restraining order and thereafter an injunction on the same grounds, both of which were denied by the court. In August 2011, GigOptix amended its Complaint for the second time to delete its causes of action for negligent and intentional interference with economic advantage and unfair competition, leaving the following causes of action to be adjudicated: (i) breach of duty of loyalty against the Ex-Employees only, (ii) breach of contract against the Ex-Employees only, (iii) misappropriation of trade secrets against all defendants, and (iv) unfair business practices against all defendants. Each side has served and responded to written discovery requests, produced documents and conducted witness depositions.

On July 30, 2012, GigOptix filed and served a renewed motion for preliminary injunction, which was argued before the court on September 13, 2012. After considering evidence presented by the parties, including witness and expert testimony and forensic evidence, the court denied GigOptix’s renewed motion for preliminary injunction on September 18, 2012. The parties participated in a non-binding mediation of their dispute on December 20, 2012, but did not resolve the issues. In January 2013, the plaintiff’s claims were voluntarily dismissed as to two of the five individual Ex-Employee defendants and the court set a date for a trial beginning August 26, 2013. On July 26, 2013, the court heard motions brought by all defendants to stay the case on the basis that certain individual defendants are being investigated by the United States Attorneys’ Office for the Northern District of California, and consequently may be unavailable to testify and rebut allegations made in the civil complaint. On July 30, 2013, the court denied the defendants’ stay motions. We intend to continue to defend the lawsuit vigorously.

CSR Matter. In January 2013, CSR Technology Inc. (“CSR”) filed a complaint against us in the Massachusetts Superior Court for Suffolk County alleging breach of contract, breach of the implied covenant of good faith and fair dealing,

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misrepresentation, deceptive business practices and unfair competition, all relating to our purported failure to honor an alleged minimum purchase commitment contract with respect to certain semiconductor chips previously supplied by CSR for use in our automotive module product. The complaint claims alleged damages of $2.2 million and asks for attorney’s fees and other remedies. We filed an answer to the complaint on January 28, 2013. The parties are proceeding with discovery and document production. We intend to continue to defend the lawsuit vigorously.

ITEM 1A. RISK FACTORS

Our business involves a high degree of risk. If any of the following risks actually occurs, our business, financial condition or results of operations could suffer. The risks described below are not the only ones facing us. Additional risks not presently known to us or that we currently consider immaterial also may adversely affect our Company.

Risks Relating to Our Business

Our revenue growth is substantially dependent on our successful development and release of new products.

Maintaining or growing our revenue will depend on our ability to timely develop new products for existing and new markets that meet customers’ performance, reliability and price requirements. The development of new products is a highly complex process, and we have in the past and may in the future experience delays and failures in completing the development and introduction of new products. Our successful product development depends on a number of factors, including the following:

• accurate prediction of market requirements, changes in technology and evolving standards;

• the availability of qualified product designers and process technologies needed to solve difficult design challenges in a cost-effective, reliable manner;

• our ability to design products that meet customers’ cost, size and performance requirements;

• our ability to manufacture new products according to customer needs with acceptable manufacturing yields;

• our ability to offer new products at competitive prices;

• acceptance by customers of our new product designs;

• identification of and entry into new markets for our products;

• acceptance of our customers’ products by the market and the lifecycle of such products;

• our ability to deliver products in a timely manner within our customers’ product planning and deployment cycle; and

• our ability to maintain and increase our level of product content in our customers’ systems.

A new product design effort may last 12 to 18 months or longer, and requires material investments in engineering hours and materials, as well as sales and marketing expenses, which will not be recouped if the product launch is unsuccessful. We may not be able to design and introduce new products in a timely or cost-efficient manner, and our new products may fail to meet the requirements of the market or our customers, or may be adopted by customers slower than we expect. In that case, we may not reach our expected level of production orders and may lose market share, which could adversely affect our ability to sustain our revenue growth or maintain our current revenue levels.

Various factors may reduce our gross margin, which could negatively affect our business, financial condition and results of operations.

If we are unable to utilize our design, fabrication, assembly and test facilities at a high level, the significant fixed costs associated with these facilities may not be fully absorbed, resulting in higher average unit costs and lower gross margin. Our various products have different gross margin and increased sales of lower-margin products, such as our products targeted at automotive and other consumer markets, in a given period relative to sales of higher-margin products such as our optical products may cause us to report lower overall gross margin. In our fourth fiscal quarter of 2012 and at other times in the past, we have experienced periods where our gross margin declined due to, among other things, reduced factory utilization resulting from reduced customer demand, reduced selling prices and a change in product mix towards lower-margin products. Future market conditions may adversely affect our revenue and utilization rates and consequently our future gross margin, and this, in turn, could have an adverse impact on our business, financial condition and results of operations. In addition, increased raw material costs, changes in manufacturing yields, more complex engineering requirements and other factors may lead to lower margins for us in the future. As a result of these or other factors, we may be unable to maintain or increase our gross margin in future periods and our gross margin may fluctuate from period to period.

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Our operating results may fluctuate significantly from period to period. We may not meet investors’ quarterly or annual financial expectations and, as a result, our stock price may decline.

Our quarterly and annual operating results and related expectations may vary significantly in the future based upon a number of factors, many of which are beyond our control. Factors that could cause operating results and related expectations to fluctuate include:

• general economic growth or decline in the U.S. or foreign markets;

• the reduction or cancellation of orders by customers, whether as a result of a loss of market share by us or our customers, changes in the design of customers’ products, or slowing demand for our products or customers’ products;

• the amount of new customer orders we both book and ship in any particular fiscal quarter, which accounts for a significant amount of our net revenue in any particular quarter, and which can often be weighted toward the latter part of each fiscal quarter, making the timing of recognition of the associated revenue difficult to forecast with fidelity and susceptible to slippage between quarters;

• the relative linearity of our shipments within any particular fiscal quarter, in that a less linear shipment pattern within a given fiscal quarter tends to result in lower gross margin in that quarter, and a shipment pattern weighted toward the latter part of a fiscal quarter tends to reduce our cash flows from operations in that quarter, as collections of related receivables do not occur until later fiscal periods;

• the gain or loss of a key customer or significant changes in the financial condition of one or more key customers;

• fluctuations in manufacturing output, yields, capacity levels, quality control or other potential problems or delays we or our subcontractors may experience in the fabrication, assembly, testing or delivery of our products;

• fluctuations in demand relating to the A&D market due to changes in government programs, budgets or procurement;

• the market acceptance of our products and particularly the timing and success of new product and technology introductions by us, customers or competitors;

• the amount, timing and relative success of our investments in research and development, which impacts our ability to develop, introduce and market new products and solutions on a timely basis;

• period-to-period changes in the mix of products we sell, which can result in lower gross margin;

• availability, quality and cost of semiconductor wafers and other raw materials, equipment, components and internal or outsourced manufacturing, packaging and test capacity, particularly where we have only one qualified source of supply;

• seasonal and other changes in customer purchasing cycles and component inventory levels;

• the effects of competitive pricing pressures, including decreases in average selling prices of our products;

• impairment charges associated with intangible assets, including goodwill and acquisition-related intangible assets;

• loss of key personnel or the shortage of available skilled workers;

• factors that could cause our reported domestic and foreign income taxes and income tax rate to increase in future periods, such as limits on our ability to utilize net operating losses or tax credits and the geographic distribution of our income, which may change from period to period; and

• the effects of war, natural disasters, acts of terrorism, macroeconomic uncertainty or decline or geopolitical unrest.

The foregoing factors are difficult to forecast, and these, as well as other factors, could materially and adversely affect our quarterly and annual operating results and related expectations for future periods. In addition, if our operating results in any period do not meet our publicly stated guidance, if any, or the expectations of investors or securities analysts, our stock price may decline. Similarly, any publicly stated guidance we provide in the future may itself fail to meet the expectations of investors or securities analysts, and our stock price may decline as a result.

If our primary markets decline or fail to grow, our revenue and profitability may suffer.

Our future growth depends to a significant extent on the continued growth in usage of advanced electronic systems in our primary markets: Networks, A&D, Automotive and Multi-market. The rate and extent to which these markets grow, if at all, is uncertain. These markets may fail to grow or decline for many reasons, including insufficient consumer demand, lack of access to capital, sequestration or other changes in the U.S. defense budget and procurement processes, changes in regulatory environments, macro-economic factors and changes in network specifications. If demand for electronic systems in which our products are incorporated declines, fails to grow, or grows more slowly than we anticipate, purchases of our products may be reduced, which may adversely affect our business, financial condition and results of operations. In particular, our sales to Ford

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Motor Company (Ford), which accounted for 15.8% of our revenue for fiscal year 2012 and substantially all of the revenue in our Automotive market, are dependent upon the health of the automotive industry, Ford’s ability to maintain or grow its market share, Ford’s continuing to source parts from us for its current platforms and Ford’s continuing to design our products into its auto platforms as they evolve, none of which are assured.

We typically depend on orders from a limited number of customers for a significant percentage of our revenue.

In fiscal years 2012, 2011 and 2010, sales to our distributor Richardson Electronics, an Arrow Electronics Company (Richardson), and to Ford each accounted for more than 10% of our revenue. Sales to our top 10 direct and distribution customers accounted for 55%, 61% and 58%, respectively, of our revenue. While the composition of our top 10 customers varies from year to year, we expect that sales to a limited number of customers will continue to account for a significant percentage of our revenue for the foreseeable future. The purchasing arrangements with our customers are typically conducted on a purchase order basis that does not require our customers to purchase any minimum amount of our products over a period of time. As a result, it is possible that any of our major customers could terminate their purchasing arrangements with us or significantly reduce or delay the amount of our products that they order, purchase products from our competitors or develop their own products internally. The loss of, or a reduction in, orders from any major customer could cause a decline in revenue and adversely affect our results of operations.

Our investment in research and development may not be successful, which may impact our profitability.

The semiconductor industry requires substantial investment in research and development in order to develop and bring to market new and enhanced technologies and products. Research and development expenses were $35.8 million, $36.1 million and $25.8 million for our fiscal years 2012, 2011 and 2010, respectively. In each of the last three fiscal years, we invested in research and development as part of our strategy toward the development of innovative products and solutions to fuel our growth and profitability. We cannot assure you if or when the products and solutions where we have focused our research and development expenditures will become commercially successful. In addition, we may not have sufficient resources to maintain the level of investment in research and development required to remain competitive or succeed in our strategy. Our efforts to develop new and improved process technologies for use in our products require substantial expenditures that may not generate any return on investment, may take longer than we anticipate to generate a return or may generate a return on investment that is inadequate. In July 2013 we announced that we had licensed 0.5 µm, 0.25 µm and 0.15 µm GaN process technology from Global Communications Semiconductors, LLC (GCS) and would be porting such process technology to our Lowell, Massachusetts manufacturing facility. This porting effort is expected to be a multi-year process and to involve tens of millions of dollars of investment in capital equipment, license fees and other related costs and expenses. We may experience unexpected difficulties, expenses or delays in porting and qualifying this GaN technology, and ultimately may not be successful in our efforts or may not realize customer demand for the ported technology that meets our expectations following a successful porting effort, either of which could lead to reduced revenues and gross margin or otherwise harm our business.

We may incur significant risk and expense in attempting to win new business, and such efforts may never generate revenue.

To obtain new business, we often need to win a competitive selection process to develop semiconductors for use in our customers’ systems, known in the industry as a “design win.” These competitive selection processes can be lengthy and can require us to incur significant and unreimbursed design and development expenditures and dedicate scarce engineering resources in pursuit of a single customer opportunity. We may not win the competitive selection process and may never generate any revenue despite incurring significant design and development expenditures and selling, general and administrative expenses. Failure to obtain a design win sometimes prevents us from supplying components for an entire generation of a customer’s system. This can result in lost revenue and could weaken our position in future competitive selection processes.

Even when we achieve a design win, success is not assured. Customer qualification and design cycles can be lengthy, and it may take a year or more following a successful design win and product qualification for one of our products to be purchased in volume by the customer. We may experience difficulties manufacturing the part in volume, such as low yields, supply chain delays or shortages, or quality issues. Further, while the customer has successfully qualified our part for use in its system when it awards a design win to us, it may not have qualified all of the other components being sourced for its system, or qualified its system as a whole with its end customers. Any difficulties our customer may experience in completing those qualifications may delay or prevent us from translating the design win into revenue. These risks can be particularly acute in our A&D market, where we may spend material amounts and commit substantial design engineer resources to product development work in support of an OEM customer’s attempt to win business tied to a government contract award, but realize no related revenue or less than expected revenue from that investment based on failure of the OEM to win the business, government program cancellation, federal budget limitations or otherwise. Any of these events, or any cancellation of a customer’s program or failure of our customer to successfully market its own product after our design win could materially and adversely affect our business, financial condition and results of operations, as we may have incurred significant expense and generated no revenue.

We are subject to order and shipment uncertainties. Our profitability will decline if we fail to accurately forecast customer demand when managing inventory.

We generally sell our products on the basis of purchase orders rather than long-term purchase commitments from our customers. Our customers can typically cancel purchase orders or defer product shipments for some period without incurring liability to us. We typically plan production and inventory levels based on internal forecasts of customer demand, which can be highly unpredictable and can fluctuate substantially, leading to excess inventory write-downs and resulting negative impacts on gross margin and net income. We have limited visibility into our customers’ inventories, future customer demand and the product mix that our customers will require, which could adversely affect our production forecasts and operating margins. In a number of markets we serve, and in our A&D market in particular, large dollar value customer orders scheduled for delivery in the current fiscal quarter may be canceled or rescheduled by the customer for delivery in a future fiscal quarter on short notice,

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which could cause our reported revenue to vary materially from our prior expectations. In addition, the rapid pace of innovation in our industry could render significant portions of our inventory obsolete. If we overestimate our customers’ requirements, we may have excess inventory, which could lead to obsolete inventory and unexpected costs. Conversely, if we underestimate our customers’ requirements, we may have inadequate inventory, which could lead to foregone revenue opportunities, loss of potential market share and damage to customer relationships as product deliveries may not be made on a timely basis, disrupting our customers’ production schedules. Some of our larger customers also require us to build and maintain minimum inventories and keep them available for purchase at specified locations based on non-binding demand estimates that are subject to change, which exposes us to increased inventory risk and makes it more difficult to manage our working capital. If demand from such customers decreases, we may be left with excess or obsolete inventory we are unable to sell. In response to anticipated long lead times to obtain inventory and materials from outside suppliers and foundries, we periodically order materials and build a stock of finished goods inventory in advance of customer demand. This advance ordering of raw material and building of finished goods inventory has in the past and may in the future result in excess inventory levels or unanticipated inventory write-downs if expected orders fail to materialize, or other factors make our products less saleable. In addition, any significant future cancellation or deferral of product orders could adversely affect our revenue and margins, increase inventory write-downs due to obsolete inventory, and adversely affect our operating results and stock price.

Because we have a limited history of operations as a standalone company, it may be difficult to evaluate our current business and prospects.

While many of the products and technologies now comprising our business had a long history of operations as part of the larger organizations of prior owners, our standalone business began in March 2009. This short operating history as a standalone company, rather than as a small subset of a much larger corporate parent, combined with the rapidly evolving nature of our industry and fluctuations in the overall worldwide economy since March 2009, may make it difficult to evaluate our current business and future prospects.

The average selling prices of our products may decrease over time, which could have a material adverse effect on our revenue and gross margin.

It is common in our industry for the average selling price of a given product to decrease over time as production volumes increase, competing products are developed, technology, industry standards and customer platforms evolve, or new technologies featuring higher performance or lower cost emerge. To combat the negative effects that erosion of average selling prices have had in the past and may in the future have on our revenue and gross margin, we attempt to actively manage the prices of our existing products and introduce new process technologies and products in the market that exhibit higher performance, new features that are in demand, or lower manufacturing cost. Despite this strategy, we may experience price erosion in select product platforms or generally in future periods. Failure to maintain our current prices or to successfully execute on our new product development strategy will cause our revenue and gross margin to decline, which could decrease the value of your investment in our common stock.

We face intense competition in our industry, and our inability to compete successfully could negatively affect our operating results.

The semiconductor industry is highly competitive. While we compete with a wide variety of companies, we compete with Hittite Microwave Corporation across most of our primary markets. Our other significant competitors include, among others, Aeroflex, Inc., Avago, Inc., Microsemi Corporation, RF Micro Devices, Inc., Skyworks Solutions, Inc. and TriQuint Semiconductor, Inc.

We believe future competition could also come from companies developing new alternative technologies, component suppliers based in countries with lower production costs and IC manufacturers achieving higher levels of integration that exceed the functionality offered by our products. Our customers and suppliers could also develop products that compete with or replace our products. A decision by any of our large customers to design and manufacture ICs internally could have an adverse effect on our operating results. Increased competition could mean lower prices for our products, reduced demand for our products and a corresponding reduction in our ability to recover development, engineering and manufacturing costs.

Many of our existing and potential competitors have entrenched market positions, historical affiliations with original equipment manufacturers, considerable internal manufacturing capacity, established intellectual property rights and substantial technological capabilities. Many of them may also have greater financial, technical, manufacturing or marketing resources than we do. Prospective customers may decide not to buy from us due to concerns about our relative size, financial stability or other factors. Our failure to successfully compete could result in lower revenue, decreased profitability and a lower stock price.

We operate in the semiconductor industry, which is cyclical and subject to significant downturns.

The semiconductor industry is highly cyclical and is characterized by constant and rapid technological change, price erosion, product obsolescence, evolving standards, short product lifecycles and significant fluctuations in supply and demand. The industry has historically experienced significant fluctuations in demand and product obsolescence, resulting in product

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overcapacity, high inventory levels and accelerated erosion of average selling prices. Downturns in many sectors of the electronic systems industry have in the past contributed to extended periods of weak demand for semiconductor products. We have experienced adverse effects on our profitability and cash flows during such downturns in the past, and our business may be similarly harmed by any downturns in the future, particularly if we are unable to effectively respond to reduced demand in a particular market.

We expect to make future acquisitions, dispositions and investments, which involve numerous risks.

We have an active corporate development program and routinely evaluate potential acquisitions of, and investments with or other strategic alliances involving, complementary technologies, design teams, products and companies. We also may evaluate the merits of a potential divestment of one or more of our existing business lines. We expect to pursue such transactions if appropriate opportunities arise. However, we may not be able to identify suitable transactions in the future, or if we do identify such transactions, we may not be able to complete them on commercially acceptable terms, or at all. We also face intense competition for acquisitions from other acquirers in our industry. These competing acquirers may have significantly greater financial and other resources than us, which may prevent us from successfully pursuing a transaction. In the event we pursue acquisitions, we will face numerous risks including:

• difficulties in integrating the personnel, culture, operations, technology or products and service offerings of the acquired company;

• diversion of management’s attention from normal daily operations of our business;

• difficulties in entering markets where competitors have stronger market positions;

• difficulties in improving and integrating the financial reporting capabilities and operating systems of any acquired operations, particularly foreign and formerly private operations, as needed to maintain effective internal control over financial reporting and disclosure controls and procedures;

• the loss of any key personnel of the acquired company as well as their know-how, relationships and expertise, which is common following an acquisition;

• maintaining customer, supplier or other favorable business relationships of acquired operations;

• generating insufficient revenue from completed acquisitions to offset increased expenses associated with any abandoned or completed acquisitions;

• acquiring material or unknown leasehold, environmental, regulatory, infringement, contractual or other liabilities associated with any acquired operations;

• litigation frequently associated with merger and acquisition transactions; and

• additional expense associated with amortization or depreciation of acquired tangible and intangible assets.

Our past acquisitions of Mimix Holdings, Inc. and Optomai required significant management time and attention relating to the transaction and subsequent integration. If we fail to properly integrate these acquired companies with ours, we may not receive the expected benefits of the acquisitions. Even if a proposed acquisition is successfully realized and integrated, we may not receive the expected benefits of the transaction.

Past transactions, whether completed or abandoned by us, have resulted, and in the future may result, in significant costs, expenses, liabilities and charges to earnings. The accounting treatment for any acquisition may result in significant amortizable intangible assets which, when amortized, will negatively affect our consolidated results of operations. The accounting treatment for any acquisition may result in significant goodwill, which, if impaired, will negatively affect our consolidated results of operations. Furthermore, we may incur indebtedness or issue equity securities to pay for acquisitions. The incurrence of indebtedness could limit our operating flexibility and be detrimental to our profitability, and the issuance of equity securities would be dilutive to our existing stockholders. Any or all of the above factors may differ from the investment community’s expectations in a given quarter, which could negatively affect our stock price. In addition, as a result of the foregoing, we may not be able to successfully execute acquisitions in the future to the same extent as we have the in the past, if at all.

In the event we make future investments, the investments may decline in value or fail to deliver any strategic benefits we anticipate from them, and we may lose all or part of our investment. In the event we undertake divestments, we may suffer from associated management distraction, damaged customer relationships, failure to realize the perceived strategic or financial merits of the divestment, or we may incur material indemnity liabilities to the purchaser.

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We may incur liability for claims of intellectual property infringement relating to our products.

The semiconductor industry is generally subject to frequent litigation regarding patents and other intellectual property rights. Other companies in the industry have numerous patents that protect their intellectual property rights in these areas, and have made in the past and may make in the future claims that we have infringed or misappropriated their intellectual property rights. One currently pending suit of this type is discussed in Part II. Item 1, “Legal Proceedings” of this report. Our customers may assert claims against us for indemnification if they receive claims alleging that their or our products infringe others’ intellectual property rights, and have in the past and may in the future choose not to purchase our products based on their concerns over such a pending claim. In the event of an adverse result of any intellectual property rights litigation, including the GigOptix litigation described in this report, we could be required to pay substantial damages for infringement, expend significant resources to develop non-infringing technology, incur material liability for royalty payments or fees to obtain licenses to the technology covered by the litigation, or be subjected to an injunction, which could prevent us from selling our products and materially and adversely affect our revenue and results of operations. We cannot be sure that we will be successful in any such non-infringing development or that any such license would be available on commercially reasonable terms, if at all. Any claims relating to the infringement of third-party proprietary rights, even if not meritorious, could result in costly litigation, lost sales or damaged customer relationships, and diversion of management’s attention and resources.

We depend on third parties for products and services required for our business, which may limit our ability to meet customer demand, assure product quality and control costs.

We purchase numerous raw materials, such as ceramic packages, precious metals, semiconductor wafers and dies, from a limited number of external suppliers. We also currently use several external manufacturing suppliers for assembly and testing of our products, and in some cases for fully-outsourced turnkey manufacturing of our products. We currently expect to increase our use of outsourced manufacturing in the future as a strategy for lowering our fixed operating costs. The ability and willingness of our external suppliers to perform is largely outside of our control. The use of external suppliers involves a number of risks, including the possibility of material disruptions in the supply of key components, the lack of control over delivery schedules, capacity constraints, manufacturing yields, quality and fabrication costs, and misappropriation of our intellectual property. For example, a defective batch of a chemical etchant received from a supplier caused scrap loss in our internal manufacturing facility in March 2011, which reduced manufacturing yields and gross profit by $0.7 million for fiscal year 2011. If these vendors’ processes vary in reliability or quality, they could negatively affect our products and, therefore, our customer relations and results of operations. We generally purchase raw materials on a purchase order basis and we do not have significant long-term supply commitments from our vendors. Where we do have long-term supply commitments, they may result in our being obligated to purchase more material than we need, materially and negatively impacting our operating results. In terms of relative bargaining power, many of our suppliers are larger than we are, with greater resources, and many of their other customers are larger and have greater resources than we do. If these vendors experience shortages or fail to accurately predict customer demand, they may have insufficient capacity to meet our demand, creating a capacity constraint on our business. They may also choose to supply others in preference to us in times of capacity constraint or otherwise, particularly where the other customers purchase in higher volume. Third-party supplier capacity constraints have in the past and may in the future prevent us from supplying customer demand that we otherwise could have fulfilled at attractive prices. If we have a firm commitment to supply our customer but are unable to do so based on inability or unwillingness of one of our suppliers to provide related materials or services, we may be liable for resulting damages and expense incurred by our customer.

Based on superior performance features, cost parameters or other factors, we utilize sole source suppliers for certain semiconductor packages and other materials, and it is not uncommon for one of our outside semiconductor foundries to be our sole supplier for the particular semiconductor fabrication process technologies manufactured at that supplier’s facility. Such supplier concentrations involve the risk of a potential future business interruption if the supplier becomes unable or unwilling to supply us at any point. While in some cases alternate suppliers may exist, because there are limited numbers of third-party wafer fabs that use the process technologies we select for our products and that have sufficient capacity to meet our needs, it may not be possible or may be expensive to find an alternative source of supply. Even if we are able to find an alternative source, moving production to an alternative external fab requires an extensive qualification or re-qualification process that could prevent or delay product shipments or disrupt customer’s production schedules, which could harm our business. In addition, some of our external foundry suppliers compete against us in the market in addition to being our supplier. The loss of a supplier can also significantly harm our business and operating results. A supplier may discontinue supplying us if its business is not sufficiently profitable, for competitive reasons or otherwise. We have in the past and may in the future have our supply relationship discontinued by an external foundry, causing us to experience supply chain disruption, customer dissatisfaction, loss of business and increased cost.

If we lose key personnel or fail to attract and retain key personnel, we may be unable to pursue business opportunities or develop our products.

We believe our continued ability to recruit, hire, retain and motivate highly-skilled engineering, operations, sales, administrative and managerial personnel is key to our future success. Competition for these employees is intense, particularly with respect to qualified engineers. Our failure to retain our present employees and hire additional qualified personnel in a timely manner and on reasonable terms could harm our competitiveness and results of operations. In addition, from time to time we may recruit and hire employees from our competitors, customers, suppliers and distributors, which could result in liability to us and has in the past and could in the future damage our business relationship with these parties. None of our senior management team is contractually bound to remain with us for a specified period, and we generally do not maintain key person life insurance covering our senior management. The loss of any member of our senior management team could strengthen a competitor or harm our ability to implement our business strategy.

Sources for certain components and materials are limited, which could result in interruptions, delays or reductions in product shipments.

Our industry may be affected from time to time by limited supplies of certain key components and materials. We have in the past and may in the future experience delays or reductions in supply shipments, which could reduce our revenue and profitability. If key components or materials are unavailable, our costs could increase and our revenue could decline.

In particular, our manufacturing headquarters, design facilities, assembly and test facilities and supply chain, and those of our contract manufacturers, are subject to risk of catastrophic loss due to fire, flood, or other natural or man-made disasters, such as the earthquake and tsunami that devastated parts of Japan in 2011. The majority of our semiconductor products are fabricated in our Lowell, Massachusetts headquarters, where our only internal wafer fab is located. The majority of the internal and outsourced assembly and test facilities we utilize are located in the Pacific Rim, and some of our internal design, assembly and test facilities are located in California, regions with above average seismic and severe weather activity. In addition, our

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research and development personnel are concentrated in a few locations, primarily our headquarters and our Santa Clara, California, Sydney, Australia, Belfast, Northern Ireland and Cork, Ireland locations, with the expertise of the personnel at each such location generally focused on one or two specific areas. Any catastrophic loss or significant damage to any of these facilities would likely disrupt our operations, delay production, shipments and revenue and result in significant expenses to repair or replace the facility, and in some instances, could significantly curtail our research and development efforts in a particular product area or primary market, which could have a material adverse effect on our operations. For example, in October 2011, heavy monsoon rains in Thailand caused widespread flooding affecting major cities and industrial parks where there is a concentration of semiconductor manufacturing, assembly and test sites. One of our contract manufacturing suppliers located in Thailand was affected by the flooding and, as a result of the flooding of our affected contract manufacturer, $2.7 million of orders that were scheduled for shipment to our customers in the three months ended December 30, 2011 were delayed into the second quarter of fiscal year 2012 or were canceled. In particular, any catastrophic loss at our headquarters facility would materially and adversely affect our business and financial results, revenue and profitability.

Our failure to continue to keep pace with new or improved semiconductor process technologies could impair our competitive position.

Semiconductor manufacturers constantly seek to develop new and improved semiconductor process technologies. Our future success depends in part upon our ability to continue to gain access to these semiconductor process technologies, internally or externally, in order to adapt to emerging customer requirements and competitive market conditions. We may be unable to internally develop such technologies successfully, and may be unable to gain access to them from merchant foundries or other sources on commercially reasonable terms, or at all. If we fail for any reason to remain abreast of new and improved semiconductor process technologies as they emerge, we may lose market share and our revenue and gross margin may decline, which could adversely affect our operating results.

Minor deviations in the manufacturing process can cause substantial manufacturing yield loss or even cause halts in production, which could have a material adverse effect on our revenue and gross margin.

Our products involve complexities in both their design and the semiconductor process technology employed in their fabrication. In many cases, the products are also assembled in customized packages or feature high levels of integration. Our products must meet exacting customer specifications for quality, performance and reliability. Our manufacturing yield, or the percentage of units of a given product in a given period that is usable relative to all such units produced, is a combination of yields including wafer fabrication, assembly, and test yields. Due to the complexity of our products, we periodically experience difficulties in achieving acceptable yields as even minor deviations in the manufacturing process can cause substantial manufacturing yield loss or even cause halts in production. Our customers may also test our components once they have been assembled into their products. The number of usable products that result from our production process can fluctuate as a result of many factors, including the following:

• design errors;

• defects in photomasks, which are used to print circuits on wafers;

• minute impurities in materials used;

• contamination of the manufacturing environment;

• equipment failure or variations in the manufacturing processes;

• losses from broken wafers or other human error;

• defects in packaging; and

• issues and errors in testing.

Typically, for a given level of sales, when our yields improve, our gross margin improves. When our yields decrease, our unit costs are typically higher, our gross margin is lower and our profitability is adversely affected, any or all of which can harm our results of operations and lower our stock price.

We depend on third-party sales representatives and distributors for a material portion of our revenues.

We sell many of our products to customers through independent sales representatives and distributors, as well as through our direct sales force. We are unable to predict the extent to which our independent sales representatives and distributors will be successful in marketing and selling our products. Moreover, many of our independent sales representatives and distributors also market and sell competing products. Our relationships with our representatives and distributors typically may be terminated by either party at any time, and do not require them to buy any of our products. Sales to distributors accounted for 21.3% of our revenue in fiscal year 2012, and sales to our largest distributor, Richardson, represented 17.6% of our revenue in the same period. If our distributors cease doing business with us or fail to successfully market and sell our products, our ability to sustain and grow our revenue could be materially adversely affected.

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Our internal and external manufacturing, assembly and test model subjects us to various manufacturing and supply risks.

We operate a semiconductor wafer processing and manufacturing facility at our headquarters in Lowell, Massachusetts. This facility is also our primary internal design, assembly and test facility. We maintain other internal assembly and test operation facilities as well, including leased sites in Long Beach, California and Hsinchu, Taiwan. We also use multiple external foundries for outsourced semiconductor wafer supply, as well as multiple domestic and Asian assembly and test suppliers to assemble and test our products. A number of factors will affect the future success of these internal manufacturing facilities and outsourced supply and service arrangements, including the following:

• the level of demand for our products;

• our ability to expand and contract our facilities and purchase commitments in a timely and cost-effective manner in response to changes in demand for our products;

• our ability to generate revenue in amounts that cover the significant fixed costs of operating our facilities;

• our ability to qualify our facilities for new products in a timely manner;

• the availability of raw materials, including GaAs substrates and high purity source materials such as gallium, aluminum, arsenic, indium and silicon;

• our manufacturing cycle times and yields;

• the political and economic risks associated with our reliance on outsourced Asian assembly and test suppliers;

• the location of our facilities and those of our outsourced suppliers;

• natural disasters impacting our facilities and those of our outsourced suppliers;

• our ability to hire, train, manage and retain qualified production personnel;

• our compliance with applicable environmental and other laws and regulations; and

• our ability to avoid prolonged periods of downtime or high levels of scrap in our and our suppliers’ facilities for any reason.

We may experience difficulties in managing any future growth.

To successfully conduct business in a rapidly evolving market, we must effectively plan and manage any current and future growth. Our ability to do so will be dependent on a number of factors, including:

• maintaining access to sufficient manufacturing capacity to meet customer demands;

• arranging for sufficient supply of key raw materials and services to avoid shortages or supply bottlenecks;

• building out our administrative infrastructure at the proper pace to support any current and future sales growth while maintaining operating efficiencies;

• adhering to our high quality and process execution standards, particularly as we hire and train new employees and during periods of high volume;

• managing the various components of our working capital effectively;

• upgrading our operational and financial systems, procedures and controls, including improvement of our accounting and internal management systems; and

• maintaining high levels of customer satisfaction.

If we do not effectively manage any future growth, we may not be able to take advantage of attractive market opportunities, our operations may be impacted and we may experience delays in delivering products to our customers or damaged customer relationships, and achieve lower than anticipated revenue and decreased profitability.

We may not realize the expected benefits of our recent restructuring activities and other initiatives designed to reduce costs and increase revenue across our operations.

We have pursued a number of restructuring initiatives designed to reduce costs and increase revenue across our operations. These initiatives included reductions in our number of manufacturing facilities and significant workforce reductions in certain areas as we realigned our business. Additional initiatives included establishing certain operations closer in location to our global customers and evaluating functions that may be more efficiently performed through outsourcing arrangements. These initiatives have been substantial in scope and disruptive to some of our historical operations. We may not realize the

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expected benefits of these new initiatives. As a result of these initiatives, we have incurred restructuring or other charges and we may in the future experience disruptions in our operations, loss of personnel and difficulties in delivering products in a timely fashion. In fiscal years 2012, 2011 and 2010, we incurred restructuring charges of $1.9 million, $1.5 million and $2.2 million, respectively, consisting primarily of employee severance and related costs resulting from reductions in our workforce.

Our business could be harmed if systems manufacturers choose not to use components made of compound semiconductor materials we utilize.

Silicon semiconductor technologies are the dominant process technologies for the manufacture of ICs in high-volume, commercial markets and the performance of silicon ICs continues to improve. While we use silicon for some applications, we also often use compound semiconductor technologies such as GaAs, indium phosphide (InP) or gallium nitride (GaN) to deliver reliable operation at higher power, higher frequency or smaller form factor than a silicon solution has historically allowed. While these compound semiconductor materials offer high-performance features, it is generally more difficult to design and manufacture products with reliability and in volume using them. GaN and InP, in particular, are newer process technologies that do not have as extensive a track record of reliable performance in the field as many of the competing process technologies. Compound semiconductor technology tends to be more expensive than silicon technology due to its above-described challenges and the generally lower volumes at which parts in those processes tend to be manufactured relative to silicon parts for high-volume consumer applications.

System designers in some markets may be reluctant to adopt our non-silicon products or may be likely to adopt silicon products in lieu of our products if silicon products meeting their demanding performance requirements are available, because of:

• their unfamiliarity with designing systems using our products;

• their concerns related to manufacturing costs and yields;

• their unfamiliarity with our design and manufacturing processes; or

• uncertainties about the relative cost effectiveness of our products compared to high-performance silicon components.

We cannot be certain that additional systems manufacturers will design our compound semiconductor products into their systems or that the companies that have utilized our products will continue to do so in the future. Improvements in the performance of available silicon process technologies and solutions could result in a loss of market share on our part. If our products fail to achieve or maintain market acceptance for any of the above reasons, our results of operations will suffer.

Earn-out arrangements from our acquisitions may negatively affect our future cash flows.

We sometimes use earn-out arrangements when acquiring other companies. For example, we have entered into such an arrangement in connection with our Optomai acquisition, pursuant to which we may pay up to an additional $3.8 million based on sales of related products through September 2013.

Any payment of earn-outs will reduce the cash we otherwise would have available for general corporate purposes. If an earn-out payment is required in connection with our sale to a future acquirer, it will reduce the proceeds otherwise available for distribution to stockholders in connection with the closing of such sale. Earn-outs can also have negative effects on our operations, such as limiting or delaying our ability to fully integrate an acquired business into our business and giving acquired personnel incentives that may differ from those of the rest of our employees.

We may incur material costs and our business may be interrupted in connection with consolidation and outsourcing initiatives.

We have a number of ongoing strategic initiatives aimed at reducing our long-term operating cost model, including the outsourcing of various manufacturing functions to third party suppliers and consolidation of our operations within existing facilities. While the goal of these actions is to reduce recurring fixed cost, there are associated restructuring charges and execution risks associated with these initiatives. Exiting a leased site may involve contractual or negotiated exit payments with the landlord, temporary holding over at an increased lease rate, costs to perform restoration work required by the lease, or associated environmental liability, any of which may be material in amount. For example, we paid $2.5 million in exit costs in connection with our exit from a former leased site in Santa Clara, California in September 2010. Consolidation of operations and outsourcing may involve substantial capital expenses and the transfer of manufacturing processes and personnel from one site to another, with resultant startup issues at the receiving site and need for re-qualification of the transitioned operations with major customers and for ISO or other certifications. We may experience shortages of affected products, delays and higher than expected expenses. Affected employees may be distracted by the transition or may seek other employment, which could cause our overall operational efficiency to suffer.

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We are subject to risks from our international sales and operations.

We have operations in Europe, Asia and Australia, and customers around the world. As a result, we are subject to regulatory, geopolitical and other risks associated with doing business outside the U.S. Global operations involve inherent risks, including currency controls, currency exchange rate fluctuations, tariffs, required import and export licenses, associated delays and other related international trade restrictions and regulations.

The legal system in many of the regions where we conduct business can lack transparency in certain respects relative to that of the U.S. and can accord local government authorities a higher degree of control and discretion over business than is customary in the U.S. This makes the process of obtaining necessary regulatory approvals and maintaining compliance inherently more difficult and unpredictable. In addition, the protection accorded to proprietary technology and know-how under these legal systems may not be as strong as in the U.S., and, as a result, we may lose valuable trade secrets and competitive advantage. The cost of doing business in European jurisdictions can also be higher than in the U.S. due to exchange rates, local collective bargaining regimes and local legal requirements and norms regarding employee benefits and employer-employee relations, in particular.

Sales to customers located outside the U.S. accounted for 47.2%, 46.4% and 39.7% of our revenue for the fiscal years 2012, 2011 and 2010, respectively. We expect that revenue from international sales will continue to be a significant part of our total revenue. Because the majority of our foreign sales are denominated in U.S. dollars, our products become less price-competitive in countries with currencies that are low or are declining in value against the U.S. dollar. Also, we cannot be sure that our international customers will continue to accept orders denominated in U.S. dollars. If they do not, our reported revenue and earnings will become more directly subject to foreign exchange fluctuations. Some of our customer purchase orders and agreements are governed by foreign laws, which may differ significantly from U.S. laws. We may be limited in our ability to enforce our rights under such agreements and to collect amounts owed to us.

The majority of our assembly, packaging and test vendors are located in Asia. We generally do business with our foreign assemblers in U.S. dollars. Our manufacturing costs could increase in countries with currencies that are increasing in value against the U.S. dollar. Also, our international manufacturing suppliers may not continue to accept orders denominated in U.S. dollars. If they do not, our costs will become more directly subject to foreign exchange fluctuations. From time to time we may attempt to hedge our exposure to foreign currency risk by buying currency contracts or otherwise, and any such efforts involve expense and associated risk that the currencies involved may not behave as we expect, and we may lose money on such hedging strategies or not properly hedge our risk.

In addition, if terrorist activity, armed conflict, civil, economic or military unrest, or political instability occurs in the U.S. or other locations, such events may disrupt our manufacturing, assembly, logistics, security and communications, and could also result in reduced demand for our products. We have in the past and may again in the future experience difficulties relating to employees traveling in and out of countries facing civil unrest or political instability and with obtaining travel visas for our employees. Major health pandemics could also adversely affect our business and our customer order patterns. We could also be affected if labor issues disrupt our transportation arrangements or those of our customers or suppliers. There can be no assurance that we can mitigate all identified risks with reasonable effort. The occurrence of any of these events could have a material adverse effect on our operating results.

Our business could be adversely affected if we experience product returns, product liability and defects claims.

Our products are complex and frequently operate in high-performance, challenging environments. We may not be able to anticipate all of the possible performance or reliability problems that could arise with our products after they are released to the market. If such problems occur or become significant, we may experience reduced revenue and increased costs related to product recalls, inventory write-offs, warranty or damage claims, delays in, cancellations of, or returns of product orders, and other expenses. The many materials and vendors used in the manufacture of our products increase the risk that some defects may escape detection in our manufacturing process and subsequently affect our customers, even in the case of long-standing product designs. Our use of newly-developed or less mature semiconductor process technologies, such as GaN and InP, which have a less extensive track record of reliability in the field than other more mature process technologies, also increases the risk of performance and reliability problems. These matters have arisen in our operations from time to time in the past, have resulted in significant net costs to us per occurrence, and will likely occur again in the future. The occurrence of defects could result in product returns and liability claims, reduced product shipments, the loss of customers, the loss of or delay in market acceptance of our products, harm to our reputation, diversion of management’s time and resources, lower revenue, higher expenses and reduced profitability. Any warranty or other rights we may have against our suppliers for quality issues caused by them may be more limited than those our customers have against us, based on our relative size, bargaining power, or otherwise. In addition, even if we ultimately prevail, such claims could result in costly litigation, divert management’s time and resources, and damage our customer relationships.

We also face exposure to potential liability resulting from the fact that some of our customers integrate our products into consumer products such as automobiles or mobile communication devices, which are then sold to consumers in the marketplace. We may be named in product liability claims even if there is no evidence that our products caused a loss. Product liability claims could result in significant expenses in connection with the defense of such claims and possible damages. In

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addition, we may be required to participate in a recall if our products prove to be defective. Any product recall or product liability claim brought against us, particularly in high-volume consumer markets, could have a material negative impact on our reputation, business, financial condition or results of operations.

The outcome of litigation in which we have been named as a defendant is unpredictable and an adverse decision in any such matter could subject us to damage awards and lower the market price of our stock.

From time to time we are a defendant in a litigation matters such as those described in Part II. Item 1, “Legal Proceedings” of this report. This and any other future disputes, litigations, investigations, administrative proceedings or enforcement actions we may be involved in may divert financial and management resources that would otherwise be used to benefit our operations, result in negative publicity and harm our customer or supplier relationships. Although we intend to contest such matters vigorously, we cannot assure you that their outcome will be favorable to us. In particular, the injunctive relief requested by GigOptix in its pending litigation with us, if awarded by the court, could materially and adversely impact the revenue we derive from our products targeting optical applications, as could any related damage award or other negative development in that case. An adverse resolution of any such matter in the future, including the results of any amicable settlement, could subject us to material damage awards or settlement payments or otherwise materially harm our business.

Our financial results may be adversely affected by increased tax rates and exposure to additional tax liabilities.

Our effective tax rate is highly dependent upon the geographic composition of our worldwide earnings and tax regulations governing each region, each of which can change from period to period. We are subject to income taxes in both the U.S. and various foreign jurisdictions, and significant judgment is required to determine our worldwide tax liabilities. Our effective tax rate as well as the actual tax ultimately payable could be adversely affected by changes in the amount of our earnings attributable to countries with differing statutory tax rates, changes in the valuation of our deferred tax assets, changes in tax laws or tax rates (particularly in the U.S. or Ireland), increases in non-deductible expenses, the availability of tax credits, material audit assessments or repatriation of non-U.S. earnings, each of which could materially affect our profitability. Any significant increase in our effective tax rates could materially reduce our net income in future periods and decrease the value of your investment in our common stock.

Changes in tax laws are introduced from time to time to reform U.S. taxation of international business activities. Depending on the final form of legislation enacted, if any, these consequences may be significant for us due to the large scale of our international business activities. If any of these proposals are enacted into legislation, they could have material adverse consequences on the amount of tax we pay and thereby on our financial position and results of operations.

Our limited ability to protect our proprietary information and technology may adversely affect our ability to compete.

Our future success and ability to compete is dependent in part upon our protection of our proprietary information and technology through patent filings and otherwise. We cannot be certain that any patents we apply for will be issued or that any claims allowed from pending applications will be of sufficient scope or strength to provide meaningful protection or commercial advantage. Our competitors may also be able to design around our patents. The laws of some countries in which our products are or may be developed, manufactured or sold, may not protect our products or intellectual property rights to the same extent as U.S. laws, increasing the possibility of piracy of our technology and products. Although we intend to vigorously defend our intellectual property rights, we may not be able to prevent misappropriation of our technology.

In addition, we rely on trade secrets, technical know-how and other unpatented proprietary information relating to our product development and manufacturing activities. We try to protect this information by entering into confidentiality agreements with employees and other parties. We cannot be sure that these agreements will be adequate and will not be breached, that we would have adequate remedies for any breach or that our trade secrets and proprietary know-how will not otherwise become known or independently discovered by others.

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Additionally, our competitors may independently develop technologies that are substantially equivalent or superior to our technology. Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to copy or otherwise obtain or use our products or technology. Patent litigation is expensive, and our ability to enforce our patents and other intellectual property is limited by our financial resources and is subject to general litigation risks. If we seek to enforce our rights, we may be subject to claims that the intellectual property rights are invalid, are otherwise not enforceable or are licensed to the party against whom we assert a claim. In addition, our assertion of intellectual property rights could result in the other party seeking to assert alleged intellectual property rights of its own against us, which is a frequent occurrence in such litigations.

If we fail to comply with export control regulations we could be subject to substantial fines or other sanctions, including loss of export privileges.

Certain of our products are subject to the Export Administration Regulations, administered by the Department of Commerce, Bureau of Industry Security, which require that we obtain an export license before we can export products or technology to specified countries. Other products are subject to the International Traffic in Arms Regulations, which restrict the export of information and material that may be used for military or intelligence applications by a foreign person. We are also subject to U.S. import regulations and the import and export regimes of other countries in which we operate. Failure to comply with these laws could result in sanctions by the government, including substantial monetary penalties, denial of export privileges and debarment from government contracts. Export and import regulations may create delays in the introduction of our products in international markets or prevent the export or import of our products to certain countries or customers altogether. Any change in export or import regulations or related legislation, shift in approach by regulators to the enforcement or scope of existing regulations, changes in the interpretation of existing regulations by regulators or change in the countries, persons or technologies targeted by such regulations, could harm our business by resulting in decreased use of our products by, or our decreased ability to export or sell our products to, existing or potential customers with international operations. In addition, our sale of our products to or through third-party distributors, resellers and sales representatives creates the risk that any violation of these laws they may engage in may cause disruption in our markets or otherwise bring liability on us.

We face risks associated with government contracting.

Some of our revenue is derived from contracts with agencies of the U.S. government or subcontracts with its prime contractors. Under some of our government subcontracts, we are required to maintain secure facilities and to obtain security clearances for personnel involved in performance of the contract, in compliance with applicable federal standards. If we were unable to comply with these requirements, or if personnel critical to our performance of these contracts were to lose their security clearances, we might be unable to perform these contracts or compete for other projects of this nature, which could adversely affect our revenue.

We may need to modify our activities or incur substantial costs to comply with environmental laws, and if we fail to comply with environmental laws we could be subject to substantial fines or be required to change our operations.

We are subject to a variety of international, federal, state and local governmental regulations directed at preventing or mitigating climate change and other environmental harms, as well as to the storage, discharge, handling, generation, disposal and labeling of toxic or other hazardous substances used to manufacture our products. If we fail to comply with these regulations, substantial fines could be imposed on us, and we could be required to suspend production, alter manufacturing processes, cease operations, or remediate polluted land, air or groundwater, any of which could have a negative effect on our sales, income and business operations. Failure to comply with environmental regulations could subject us to civil or criminal sanctions and property damage or personal injury claims. Compliance with current or future environmental laws and regulations could restrict our ability to expand our facilities or build new facilities, or require us to acquire additional expensive equipment, modify our manufacturing processes, or incur other substantial expenses which could harm our business, financial condition and results of operations. In addition, under some of these laws and regulations, we could be held financially responsible for remedial measures if our properties or those nearby are contaminated, even if we did not cause the contamination. We have incurred in the past and may in the future incur environmental liability based on the actions of prior owners, lessees or neighbors of sites we have leased or may lease in the future, or sites we become associated with due to acquisitions. We cannot predict:

• changes in environmental or health and safety laws or regulations;

• the manner in which environmental or health and safety laws or regulations will be enforced, administered or interpreted;

• our ability to enforce and collect under any indemnity agreements and insurance policies relating to environmental liabilities; or

• the cost of compliance with future environmental or health and safety laws or regulations or the costs associated with any future environmental claims, including the cost of clean-up of currently unknown environmental conditions.

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In addition to the costs of complying with environmental, health and safety requirements, we may in the future incur costs defending against environmental litigation brought by government agencies, lessors at sites we currently lease or have been associated with in the past and other private parties. We may be defendants in lawsuits brought by parties in the future alleging environmental damage, personal injury or property damage. A significant judgment or fine levied against us, or agreed settlement payment, could materially harm our business, financial condition and results of operations.

Environmental regulations such as the WEEE and RoHS directives limit our flexibility and may require us to incur material expense.

Various countries require companies selling a broad range of electrical equipment to conform to regulations such as the Waste Electrical and Electronic Equipment (WEEE) and the European Directive 2002/95/Ec on restriction of hazardous substances (RoHS). New environmental standards such as these could require us to redesign our products in order to comply with the standards, require the development of compliance administration systems or otherwise limit our flexibility in running our business or require us to incur substantial compliance costs. For example, RoHS requires that certain substances be removed from most electronic components. The WEEE directive makes producers of electrical and electronic equipment financially responsible for specified collection, recycling, treatment and disposal of past and future covered products. We have already invested significant resources into complying with these regimes, and further investments may be required. Alternative designs implemented in response to regulation may be more costly to produce, resulting in an adverse effect on our gross profit margin. If we cannot develop compliant products in a timely fashion or properly administer our compliance programs, our revenue may also decline due to lower sales, which would adversely affect our operating results. Further, if we were found to be non-compliant with any rule or regulation, we could be subject to fines, penalties and/or restrictions imposed by government agencies that could adversely affect our operating results.

Customer demands and new regulations related to “conflict” minerals may force us to incur additional expenses and liabilities.

In August 2012, the SEC adopted its final rule to implement Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding disclosure and reporting requirements for companies who use “conflict” minerals mined from the Democratic Republic of Congo and adjoining countries in their products. In the semiconductor industry, these minerals are most commonly found in metals used in the manufacture of semiconductor devices and related assemblies. These new requirements could adversely affect our ability to source related minerals and metals and increase our related cost. We will face difficulties and increased expense associated with complying with the disclosure requirements, such as costs related to determining the source of any conflict minerals used in our products. Also, since our supply chain is complex, and some suppliers may be unwilling to share related confidential information regarding the source of their products, we may face reputational challenges if we are unable to sufficiently verify the origins of the subject minerals and metals. Moreover, we may encounter challenges to satisfy any related requirements of our customers, which may be different from or more onerous than the requirements of the related SEC rule. If we cannot satisfy these customers, they may choose a competitor’s products or may choose to disqualify us as a supplier, and we may have to write off inventory in the event that it becomes unsalable as a result of these regulations.

Our revolving credit facility could result in outstanding debt with a claim to our assets that is senior to that of our stockholders, and may have other adverse effects on our results of operations.

As of June 28, 2013, we have a revolving credit facility with a syndicate of lenders with a potential future borrowing availability of up to $150.0 million, subject to compliance with financial and other covenants. The facility is secured by a first priority lien on substantially all of our assets. The amount of our indebtedness could have important consequences, including the following:

• our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general corporate or other purposes may be limited;

• no proceeds will be available for distribution to our stockholders in a sale or liquidation until any balance on the line is repaid in full;

• we may be more vulnerable to economic downturns, less able to withstand competitive pressures and less flexible in responding to changing business and economic conditions;

• cash flow from operations will be allocated to the payment of the principal of, and interest on, any outstanding indebtedness; and

• we cannot assure you that our business will generate sufficient cash flow from operations or other sources to enable us to meet our payment obligations under the facility and to fund other liquidity needs.

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Our revolving credit facility also contains certain restrictive covenants that may limit or eliminate our ability to incur additional debt, sell, lease or transfer our assets, pay dividends, make capital expenditures, investments and loans, make acquisitions, guarantee debt or obligations, create liens, enter into transactions with our affiliates, enter into new lines of business and enter into certain merger, consolidation or other reorganizations transactions. These restrictions could limit our ability to withstand downturns in our business or the economy in general or to take advantage of business opportunities that may arise, any of which could place us at a competitive disadvantage relative to our competitors that are not subject to such restrictions. If we breach a loan covenant, the lenders could either refuse to lend funds to us or accelerate the repayment of any outstanding borrowings under the revolving credit facility. In addition, the lenders could either refuse to lend funds to us or accelerate the repayment of any outstanding borrowings under the revolving credit facility if a person acquires more than 35% of our outstanding equity securities. We might not have sufficient assets to repay such indebtedness upon a default. If we are unable to repay the indebtedness, the lenders could initiate a bankruptcy proceeding against us or collection proceedings with respect to our assets securing the facility, which could materially decrease the value of our common stock.

We are a holding company and rely on dividends, distributions and other payments, advances and transfers of funds from our subsidiaries to meet our obligations.

As a holding company, we derive substantially all of our cash flow from our subsidiaries. Because we conduct our operations through our subsidiaries, we depend on those entities for dividends and other payments or distributions to meet our operating needs. Legal and contractual restrictions in any existing and future outstanding indebtedness we or our subsidiaries incur may limit our ability to obtain cash from our subsidiaries. The deterioration of the earnings from, or other available assets of, our subsidiaries for any reason could limit or impair their ability to pay dividends or other distributions to us.

Variability in self-insurance liability estimates could impact our results of operations.

We self-insure for employee health insurance and workers’ compensation insurance coverage up to a predetermined level, beyond which we maintain stop-loss insurance from a third-party insurer. Our aggregate exposure varies from year to year based upon the number of participants in our insurance plans. We estimate our self-insurance liabilities using an analysis provided by our claims administrator and our historical claims experience. Our accruals for insurance reserves reflect these estimates and other management judgments, which are subject to a high degree of variability. If the number or severity of claims for which we self-insure increases, it could cause a material and adverse change to our reserves for self-insurance liabilities, as well as to our earnings.

We may be subject to liabilities based on alleged links between the semiconductor manufacturing process and certain illnesses and birth defects.

In recent years, there has been increased media scrutiny and associated reports regarding a potential link between working in semiconductor manufacturing clean room environments and birth defects and certain illnesses, primarily cancer. Regulatory agencies and industry associations have begun to study the issue to determine if any actual correlation exists. Because we utilize clean rooms, we may become subject to liability claims alleging personal injury. In addition, these reports may also affect our ability to recruit and retain employees. A significant judgment against us or material defense costs could harm our reputation, business, financial condition and results of operations.

We rely on third parties to provide corporate infrastructure services necessary for the operation of our business. Any failure of one or more of our vendors to provide these services could have a material adverse effect on our business.

We rely on third-party vendors to provide critical corporate infrastructure services, including, among other things, certain services related to information technology, network development and monitoring, and human resources. We depend on these vendors to ensure that our corporate infrastructure will consistently meet our business requirements. The ability of these third-party vendors to successfully provide reliable, high quality services is subject to technical and operational uncertainties that are beyond our control. While we may be entitled to damages if our vendors fail to perform under their agreements with us, our agreements with these vendors limit the amount of damages we may receive. In addition, we do not know whether we will be able to collect on any award of damages or that any such damages would be sufficient to cover the actual costs we would incur as a result of any vendor’s failure to perform under its agreement with us. Any failure of our corporate infrastructure could have a material adverse effect on our business, financial condition and results of operations. Upon expiration or termination of any of our agreements with third-party vendors, we may not be able to replace the services provided to us in a timely manner or on terms and conditions, including service levels and cost, that are favorable to us and a transition from one vendor to another vendor could subject us to operational delays and inefficiencies until the transition is complete.

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Risks Relating to Ownership of our Common Stock

The market price of our common stock may be volatile, which could result in substantial losses for investors.

You should consider an investment in our common stock risky and invest only if you can withstand a significant loss and wide fluctuations in the market value of your investment. In addition to the risks described in this report, other factors that may cause the market price of our common stock to fluctuate include:

• changes in general economic, industry and market conditions;

• domestic and international economic factors unrelated to our performance;

• actual or anticipated fluctuations in our quarterly operating results;

• changes in or failure to meet publicly disclosed expectations as to our future financial performance, as was the case in August 2012 when the trading price of our common stock declined approximately 21% on the day following our public announcement of lower than expected revenue, gross margin and business outlook figures;

• changes in securities analysts’ estimates of our financial performance or lack of research and reports by industry analysts;

• changes in market valuations or earnings of similar companies;

• addition or loss of significant customers;

• announcements by us or our competitors, customers or suppliers of significant products, contracts, acquisitions, strategic partnerships or other events;

• developments or disputes concerning patents or proprietary rights, including any injunction issued or material sums paid for damage awards, settlement payments, license fees, attorney’s fees or other litigation expenses associated with intellectual property lawsuits we may initiate, or in which we may be named as defendants;

• failure to complete significant sales;

• developments concerning current or future strategic alliances or acquisitions;

• any future sales of our common stock or other securities; and

• additions or departures of directors, executives or key personnel.

Furthermore, the stock markets recently have experienced price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political and market conditions such as recessions, interest rate changes or international currency fluctuations, may negatively impact the market price of our common stock. In the past, companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation. We may be the target of this type of litigation in the future. Securities litigation against us could result in substantial costs and divert our management’s attention from other business concerns, which could seriously harm our business.

If securities or industry analysts do not publish research or reports about our business, or publish negative reports about our business, our stock price and trading volume could decline.

The trading market for our common stock will depend on the research and reports that securities or industry analysts publish about us or our business. We do not have any control over these analysts. If one or more of the analysts who cover us downgrade our common stock or change their opinion of our common stock, our stock price would likely decline. If one or more of these analysts cease their coverage of us or fail to regularly publish reports on us, we could lose visibility in the financial markets, which could cause our stock price or trading volume to decline.

Our common stock price may decline if a substantial number of shares are sold in the market by our stockholders.

Future sales of substantial amounts of shares of our common stock by our existing stockholders in the public market, or the perception that these sales could occur, may cause the market price of our common stock to decline. Increased sales of our common stock in the market for any reason could exert significant downward pressure on our stock price. These sales also might make it more difficult for us to sell equity or equity-related securities in the future at a time and price we deem appropriate.

Some of our stockholders can exert control over us, and they may not make decisions that reflect our interests or those of other stockholders.

Our largest stockholders control a significant amount of our outstanding common stock. As of June 28, 2013, John and Susan Ocampo beneficially owned 54.1% of our common stock and certain investment funds affiliated with Summit Partners, L.P. owned 20.5% of our common stock, each on an as-converted basis. As a result, these stockholders will be able to exert a significant degree of influence over our management and affairs and control over matters requiring stockholder approval, including the election of our directors and approval of significant corporate transactions. In addition, this concentration of ownership may delay or prevent a change in control of us and might affect the market price of our securities. In addition, the interests of these stockholders may not always coincide with your interests or the interests of other stockholders.

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We may engage in future capital-raising transactions that dilute our stockholders or cause us to incur debt.

We may issue additional equity, debt or convertible securities to raise capital in the future. If we do, existing stockholders may experience significant further dilution. In addition, new investors may demand rights, preferences or privileges that differ from, or are senior to, those of our existing stockholders. Our incurrence of indebtedness could limit our operating flexibility and be detrimental to our results of operations.

We will incur increased costs and demands upon management as a result of complying with the laws and regulations affecting public companies, which could adversely affect our operating results.

Having become a public company in 2012, we will incur significant legal, accounting and other expenses in future years that we did not incur as a private company, including costs associated with public company reporting requirements. We also have incurred and will incur costs associated with applicable corporate governance requirements, including requirements under the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act, as well as related rules and regulations implemented by the SEC and NASDAQ. In addition, our management team will have to adapt to the requirements of being a public company. The expenses incurred by public companies generally for reporting and corporate governance purposes have been increasing. We expect these rules and regulations to increase our legal and financial compliance costs and to make some activities more time-consuming and costly. We also expect these rules and regulations may make it more difficult and more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage than used to be available. As a result, it may be more difficult for us to attract and retain qualified individuals to serve on our board of directors or as our executive officers.

We are required to evaluate our internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002, and any adverse results from such evaluation could result in a loss of investor confidence in our financial reports and have an adverse effect on our stock price.

Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002, we are required to furnish a report by our management on our internal control over financial reporting and evaluate the effectiveness of our internal control over financial reporting as of the end of each fiscal quarter. Such a report will contain, among other matters, an assessment of the effectiveness of our internal control over financial reporting as of the end of our fiscal year, including a statement as to whether or not our internal control over financial reporting is effective. This assessment must include disclosure of any material weaknesses in our internal control over financial reporting identified by management. We have not completed the system and process documentation and evaluation needed to comply with these requirements. If our management identifies one or more material weaknesses in our internal control over financial reporting during this process, we will be unable to assert such internal control is effective. If we are unable to assert that our internal control over financial reporting is effective, or if our independent registered public accounting firm is unable to express an opinion on the effectiveness of our internal controls, we could lose investor confidence in the accuracy and completeness of our financial reports, which could have an adverse effect on our stock price. We cannot assure you that we will not have deficiencies or weaknesses in our internal control over financial reporting in the future.

In addition, having become a public company in 2012, we are implementing additional financial and management controls, reporting systems and procedures in order to ensure the accuracy and completeness of our financial reports even before we are subject to the management report requirements under Section 404 of the Sarbanes-Oxley Act. If we are unable to accomplish these objectives in a timely and effective fashion, our ability to comply with our financial reporting requirements and other rules that apply to reporting companies could be impaired, which could lead to inaccurate financial reports, which in turn could adversely affect our stock price.

We may also rely on external consultants to supplement our internal controls. For example, we partly rely on external consultants to supplement our internal control over financial reporting in connection with our accounting for income taxes and other complex accounting and financial matters, some of which require significant technical accounting expertise or require significant judgment. Use of external consultants involves additional risk that our external consultants may not perform as expected, or that coordination between our internal and external resources may not be adequate, resulting in one or more procedures not being performed or reviewed as planned, or one or more errors not being identified and corrected. If we do not effectively manage our external consultants or if they fail to perform as expected or fail to provide an adequate level of expertise in certain areas, our ability to comply with our financial reporting requirements and other rules that apply to reporting companies could be impaired and the accuracy and completeness of our financial reports could be compromised, which could adversely affect our stock price.

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As an emerging growth company, we have elected to delay adoption of new or revised accounting standards, and thus our financial statements may not be comparable to those of most other companies.

Pursuant to the JOBS Act, as an emerging growth company, we have elected to take advantage of an extended transition period for any new or revised accounting standards that may be issued by the Financial Accounting Standards Board (FASB) or the SEC, which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, can delay adoption of the standard until it applies to private companies. This may make a comparison of our financial statements with any other public company that is not an emerging growth company difficult, as they may be applying different standards. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile and could decline.

Anti-takeover provisions in our charter documents and Delaware law could prevent or delay a change in control of our company that stockholders may consider beneficial and may adversely affect the price of our stock.

Provisions of our fourth amended and restated certificate of incorporation and second amended and restated bylaws may discourage, delay or prevent a merger, acquisition or change of control that a stockholder may consider favorable. These provisions could also discourage proxy contests and make it more difficult for stockholders to elect directors and take other corporate actions. The existence of these provisions could limit the price that investors might be willing to pay in the future for shares of our common stock. These provisions include authorizing the issuance of “blank check” preferred stock, staggered elections of directors, and establishing advance notice requirements for nominations for election to the board of directors and for proposing matters to be submitted to a stockholder vote. Provisions of Delaware law may also discourage, delay or prevent someone from acquiring or merging with our company or obtaining control of our company. Specifically, Section 203 of the Delaware General Corporate Law may prohibit business combinations with stockholders owning 15% or more of our outstanding voting stock and could reduce our value.

We do not intend to pay dividends for the foreseeable future.

We do not intend to pay any cash dividends on our common stock in the foreseeable future. The payment of cash dividends is restricted under the terms of the agreements governing our indebtedness. In addition, because we are a holding company, our ability to pay cash dividends may be limited by restrictions on our ability to obtain sufficient funds through dividends from subsidiaries, including restrictions under the terms of the agreements governing our indebtedness. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.

We are a “controlled company” within the meaning of the rules of the NASDAQ Stock Market, and, as a result, will qualify for, and will rely on, exemptions from certain corporate governance requirements. Our stockholders will not have the same protections afforded to stockholders of companies that are subject to such requirements.

John and Susan Ocampo control a majority of the voting power of our outstanding common stock. We are a “controlled company” within the meaning of the corporate governance standards of the Nasdaq Stock Market. Under these rules, a listed company of which more than 50% of the voting power is held by an individual, group or another company is a “controlled company” and may elect not to comply with certain corporate governance requirements, including:

• the requirement that a majority of the board of directors consist of independent directors;

• the requirement that the listed company have a nominating and governance committee that is composed entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities;

• the requirement that the listed company have a compensation committee that is composed entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities; and

• the requirement for an annual performance evaluation of the nominating and governance and compensation committees.

We currently are a “controlled company”, currently plan to rely on the exemption regarding the requirement that a majority of the board of directors consist of independent directors in the future, and may utilize any or all of these exemptions from time to time in the future. Accordingly, you may not have the same protections afforded to stockholders of companies that are subject to all of the corporate governance requirements of the Nasdaq Stock Market.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Use of Proceeds from Public Offering of Common Stock

On March 20, 2012, we closed our IPO, in which we issued and sold 5,556,000 shares of common stock at a public offering price of $19.00 per share. The aggregate offering price for shares sold by us in the offering was approximately $105.6 million. The offer and sale of all of the shares in the IPO were registered under the Securities Act pursuant to a registration statement on Form S-1 (File No. 333-175934), which was declared effective by the SEC on March 14, 2012. Barclays Capital Inc., J.P. Morgan Securities LLC, Jefferies & Company, Inc., Needham & Company, LLC, Raymond James & Associates, Inc., and Stifel, Nicolaus & Company, Incorporated acted as the underwriters. We raised approximately $93.7 million in net proceeds after deducting underwriting discounts and commissions of approximately $7.4 million and other offering expenses of approximately $4.5 million. No payments were made by us to directors, officers or persons owning ten percent or more of our common stock or to their associates, or to our affiliates, other than payments in the ordinary course of business to officers for salaries, and the $60.0 million preference payment made upon closing of our IPO to the former holders of our Class B convertible preferred stock, which included affiliates of one of our directors. There has been no material change in the planned use of proceeds from our IPO as described in our final prospectus filed with the SEC on March 15, 2012 pursuant to Rule 424(b). We invested the funds received in registered money market funds.

Issuer Purchases of Equity Securities

Period	Total Number of Shares (or Units) Purchased			Average Price Paid per Share (or Unit)		Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares (or  Units) that May Yet Be Purchased Under the Plans or Programs
March 30, 2013 - April 26, 2013		—		$	—		—		—
April 27, 2013 - May 24, 2013		—			—		—		—
May 25, 2013 - June 28, 2013		1,103	(1)		13.93		—		—
Total		1,103		$	13.93		—		—

(1) In 2011, our Board of Directors approved “withhold to cover” as a tax payment method for vesting of restricted stock awards for our employees. Pursuant to an election for “withhold to cover” made by our employees in connection with the vesting of such awards, all of which were outside of a publicly-announced repurchase plan we withheld from such employees the shares noted in the table above to cover tax withholding related to the vesting of their awards. The average prices listed in the above table are averages of the fair market prices we valued shares withheld at for purposes of calculating the number of shares to be withheld.

43

ITEM 6. EXHIBITS

Exhibit Number	Description
3.1	Fourth Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.3 to Amendment No. 6 to our Registration Statement on Form S-1 (File No. 333-175934) filed on February 28, 2012).
3.2	Second Amended and Restated Bylaws (incorporated by reference to Exhibit 3.4 to Amendment No. 6 to our Registration Statement on Form S-1 (File No. 333-175934) filed on February 28, 2012).
4.1	Specimen of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Amendment No. 4 to our Registration Statement on Form S-1 (File No. 333-175934) filed on November 23, 2011).
4.2	Form of Common Stock Purchase Warrant issued on December 21, 2010 (incorporated by reference to Exhibit 4.3 our Registration Statement on Form S-1 (File No. 333-175934) filed on August 1, 2011).
4.3	Second Amended and Restated Investor Rights Agreement, dated February 28, 2012 (incorporated by reference to Exhibit 4.2 to Amendment No. 6 to our Registration Statement on Form S-1 (File No. 333-175934) filed on February 28, 2012).
4.4	First Amendment to the Second Amended and Restated Investor Rights Agreement, dated May 20, 2013 (incorporated by reference to Exhibit 4.5 to our Registration Statement on Form S-3 (File No. 333-188728) filed on May 21, 2013).
10.1	Amendment No. 1 to Agreement and Plan of Merger by and among M/A-COM Technology Solutions Inc., Optomai, Inc., Optomai Merger Sub, Inc. and the other named parties therein, dated May 2, 2013 (incorporated by reference to Exhibit 10.2 to our Quarterly Report on Form 10-Q filed on May 3, 2013).
31.1	Certification of Principal Executive Officer Required Under Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.
31.2	Certification of Principal Financial Officer Required Under Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.
32.1	Certification of Principal Executive Officer and Principal Financial Officer Required Under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. §1350.
101.INS††	XBRL Instance Document
101.SCH††	XBRL Taxonomy Schema Document
101.CAL††	XBRL Taxonomy Calculation Linkbase Document
101.DEF††	XBRL Taxonomy Definition Linkbase Document
101.LAB††	XBRL Taxonomy Label Linkbase Document
101.PRE††	XBRL Taxonomy Presentation Linkbase Document

†† In accordance with Rule 406T of Regulation S-T, the information in these exhibits is furnished and deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

44

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	M/A-COM TECHNOLOGY SOLUTIONS HOLDINGS, INC.
Dated: August 5, 2013	By:	/s/ John Croteau
		John Croteau
		President and Chief Executive Officer (Principal Executive Officer)
Dated: August 5, 2013	By:	/s/ Conrad Gagnon
		Conrad Gagnon
		Chief Financial Officer (Principal Financial Officer)

45

EXHIBIT INDEX

Exhibit Number	Description
3.1	Fourth Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.3 to Amendment No. 6 to our Registration Statement on Form S-1 (File No. 333-175934) filed on February 28, 2012).
3.2	Second Amended and Restated Bylaws (incorporated by reference to Exhibit 3.4 to Amendment No. 6 to our Registration Statement on Form S-1 (File No. 333-175934) filed on February 28, 2012).
4.1	Specimen of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Amendment No. 4 to our Registration Statement on Form S-1 (File No. 333-175934) filed on November 23, 2011).
4.2	Form of Common Stock Purchase Warrant issued on December 21, 2010 (incorporated by reference to Exhibit 4.3 our Registration Statement on Form S-1 (File No. 333-175934) filed on August 1, 2011).
4.3	Second Amended and Restated Investor Rights Agreement, dated February 28, 2012 (incorporated by reference to Exhibit 4.2 to Amendment No. 6 to our Registration Statement on Form S-1 (File No. 333-175934) filed on February 28, 2012).
4.4	First Amendment to the Second Amended and Restated Investor Rights Agreement, dated May 20, 2013 (incorporated by reference to Exhibit 4.5 to our Registration Statement on Form S-3 (File No. 333-188728) filed on May 21, 2013).
10.1	Amendment No. 1 to Agreement and Plan of Merger by and among M/A-COM Technology Solutions Inc., Optomai, Inc., Optomai Merger Sub, Inc. and the other named parties therein, dated May 2, 2013 (incorporated by reference to Exhibit 10.2 to our Quarterly Report on Form 10-Q filed on May 3, 2013).
31.1	Certification of Principal Executive Officer Required Under Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.
31.2	Certification of Principal Financial Officer Required Under Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.
32.1	Certification of Principal Executive Officer and Principal Financial Officer Required Under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. §1350.
101.INS††	XBRL Instance Document
101.SCH††	XBRL Taxonomy Schema Document
101.CAL††	XBRL Taxonomy Calculation Linkbase Document
101.DEF††	XBRL Taxonomy Definition Linkbase Document
101.LAB††	XBRL Taxonomy Label Linkbase Document
101.PRE††	XBRL Taxonomy Presentation Linkbase Document

†† In accordance with Rule 406T of Regulation S-T, the information in these exhibits is furnished and deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

46

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE PRESIDENT AND CEO PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John Croteau, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of M/A-COM Technology Solutions Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 5, 2013

/s/ John Croteau

John Croteau

President and Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE CFO PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Conrad Gagnon, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of M/A-COM Technology Solutions Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 5, 2013

/s/ Conrad Gagnon

Conrad Gagnon

Chief Financial Officer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of M/A-COM Technology Solutions Holdings, Inc. (the “Company”) on Form 10-Q for the three months ended June 28, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), John Croteau, as President and Chief Executive Officer of the Company, and Conrad R. Gagnon, as Chief Financial Officer of the Company, each hereby certifies, pursuant to and solely for the purpose of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the period covered by the Report.

Date: August 5, 2013
By:	/s/ John Croteau
John Croteau
President and Chief Executive Officer
(Principal Executive Officer)
By:	/s/ Conrad Gagnon
Conrad Gagnon
Chief Financial Officer
(Principal Financial Officer)

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Share-Based Compensation

9 Months Ended

Jun. 28, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

11. SHARE-BASED COMPENSATION

The following table presents the effects of share-based compensation expense related to share-based awards to employees and non-employees in the Company’s condensed consolidated statements of operations during the periods presented (in thousands):

	Three Months Ended				Nine Months Ended
	June 28, 2013		June 29, 2012		June 28, 2013		June 29, 2012
Cost of revenue	$	243	$	304	$	852	$	372
Research and development		421		391		1,277		603
Selling, general and administrative		756		518		2,597		1,142
Total stock-based compensation expense	$	1,420	$	1,213	$	4,726	$	2,117

A summary of stock option activity for the nine months ended June 28, 2013, is as follows (in thousands, except per share amounts):

	Number of Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding-September 28, 2012		1,861		$	1.23		7.1	$	21,352
Exercised		(407	)		1.11
Forfeited, canceled or expired		(404	)		0.66
Outstanding-June 28, 2013		1,050			1.48		6.1		13,775
Options vested and expected to vest as of June 28, 2013		1,019			1.45		6.1		13,361
Options vested and exercisable as of June 28, 2013		781			1.35		6.1		10,355

Aggregate intrinsic value represents the difference between the Company’s closing stock price on June 28, 2013 and the exercise price of outstanding, in-the-money options. The total intrinsic value of options exercised was $$5.4 million for the nine months ended June 28, 2013. No options were granted in the nine months ended June 28, 2013. As of June 28, 2013, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options was $243,000, which is expected to be recognized over the next 1.0 years.

A summary of restricted stock and restricted stock units activity for the nine months ended June 28, 2013, is as follows (in thousands):

	Number of Shares			Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Unvested-September 28, 2012		582			2.9	$	7,391
Granted		843
Vested		(236	)
Forfeited, canceled or expired		(43	)
Issued and unvested-June 28, 2013		1,146			3.1		18,419
Shares expected to vest-June 28, 2013		1,014			3.1		16,298

The total intrinsic value of restricted stock awards vesting was $3.7 million for the nine months ended June 28, 2013. As of June 28, 2013, total unrecognized compensation cost, adjusted for estimated forfeitures, related to restricted stock and units was $13.6 million, which is expected to be recognized over the next 3.1 years.

As of June 28, 2013, total unrecognized compensation cost related to the 2012 Employee Stock Purchase Plan (ESPP) was not material.

Certain of the share-based awards granted and outstanding as of June 28, 2013 are subject to accelerated vesting upon a sale of the Company or similar changes in control.

Effective September 29, 2012, pursuant to an “evergreen” provision, the number of shares of common stock available for issuance under the 2012 Omnibus Incentive Plan and the ESPP were increased by 1.9 million shares and 0.6 million shares, respectively.

There were no material modifications to stock-based awards during the periods presented.

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Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Jun. 28, 2013	Jun. 29, 2012
Income Tax Disclosure [Abstract]
U.S. federal statutory income tax rate	35.00%
Deferred income tax benefit		$ 1.7

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Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Amounts Reclassified Out Of Accumulated Other Comprehensive Income Loss [Abstract]
Net income (loss)	$ 9,367	$ 13,545	$ 23,561	$ (17,974)
Foreign currency translation gain (loss)	9	(48)	(124)	(32)
Total comprehensive income (loss)	$ 9,376	$ 13,497	$ 23,437	$ (18,006)

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Property and Equipment

9 Months Ended

Jun. 28, 2013

Property Plant And Equipment [Abstract]

Property and Equipment

4. PROPERTY AND EQUIPMENT

Property and equipment consists of the following (in thousands):

	June 28, 2013			September 28, 2012
Machinery and equipment	$	45,166		$	38,795
Leasehold improvements		4,992			4,876
Furniture and fixtures		721			699
Construction in process		3,677			4,188
Computer equipment and software		6,695			6,594
Total property and equipment		61,251			55,152
Less accumulated depreciation and amortization		(32,502	)		(24,943	)
Property and equipment — net	$	28,749		$	30,209

Depreciation and amortization expense related to property and equipment for the three months ended June 28, 2013 and June 29, 2012 was $2.5 million and $2.2 million, respectively. Depreciation and amortization expense related to property and equipment for the nine months ended June 28, 2013 and June 29, 2012 was $7.7 million and $6.5 million, respectively.

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Inventories (Tables)

9 Months Ended

Jun. 28, 2013

Inventory Disclosure [Abstract]

Components of Inventories

Inventories consist of the following (in thousands):

	June 28, 2013		September 28, 2012
Raw materials	$	30,679	$	29,922
Work-in-process		5,663		5,472
Finished goods		18,312		22,065
Total	$	54,654	$	57,459

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Geographic and Significant Customer Information - Summary of Different Geographic Regions (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012	Sep. 28, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue by Geographic Region	$ 82,225	$ 77,125	$ 235,063	$ 227,640
Long-Lived Assets by Geographic Region	28,749		28,749		30,209
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue by Geographic Region	46,835	40,608	137,729	116,938
Long-Lived Assets by Geographic Region	22,303		22,303		23,027
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue by Geographic Region	35,390	36,517	97,334	110,702
Long-Lived Assets by Geographic Region	$ 6,446		$ 6,446		$ 7,182

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Income Taxes

9 Months Ended

Jun. 28, 2013

Income Tax Disclosure [Abstract]

Income Taxes

12. INCOME TAXES

The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax and may also be subject to current U.S. income tax. For interim periods, the Company records a tax provision or benefit based upon the estimated effective tax rate expected for the full fiscal year, adjusted for material discrete taxation matters arising during the interim periods.

The difference between the U.S. federal statutory income tax rate of 35% and the Company’s effective income tax rates for the three and nine months ended June 28, 2013 and June 29, 2012 was driven primarily by the changes in fair values of the common stock warrant liability and, in the 2012 periods, the Class B conversion liability, neither of which are taxable nor deductible for tax purposes, income taxed in foreign jurisdictions at generally lower tax rates, partially offset by U.S. state income taxes, and, in the nine months ended June 28, 2013, a benefit relating to the retroactive reinstatement of the U.S. research and development tax credits, and, in the nine months ended June 29, 2012, a $1.7 million deferred income tax benefit resulting from a change in the deferred income tax liability related to acquired intangible assets. The U.S. research and development tax credit, which had previously expired on December 31, 2011, was reinstated as part of The American Taxpayer Relief Act of 2012 enacted on January 2, 2013.

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Restructurings - Summary of Costs Related to Restructuring Actions (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended		12 Months Ended
	Jun. 28, 2013	Jun. 28, 2013	Jun. 29, 2012	Sep. 28, 2012
Discontinued Operations And Disposal Groups [Abstract]
Beginning Balance		$ 328
Current period charges	950	950	1,586	1,900
Payments		(684)
Ending Balance	$ 594	$ 594		$ 328

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Geographic and Significant Customer Information - Summary of Different Geographic Regions (Parenthetical) (Detail)	Jun. 28, 2013	Sep. 28, 2012	Jun. 29, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of geographic segment revenue threshold	10.00%		10.00%
Percentage of geographic segment long-lived assets threshold	10.00%	10.00%
Asia-Pacific Region [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of geographic segment long-lived assets threshold	13.00%

XML

Property and Equipment - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Property Plant And Equipment Useful Life And Values [Abstract]
Depreciation and amortization expense	$ 2.5	$ 2.2	$ 7.7	$ 6.5

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Income (Loss) Per Share (Tables)

9 Months Ended

Jun. 28, 2013

Earnings Per Share [Abstract]

Computation for Basic and Diluted Net Income Per Share of Common Stock

The following table sets forth the computation for basic and diluted net income per share of common stock (in thousands, except per share data):

	Three Months Ended					Nine Months Ended
	June 28, 2013		June 29, 2012			June 28, 2013		June 29, 2012
Numerator:
Net income (loss)	$	9,367	$	13,545		$	23,561	$	(17,974	)
Accretion of redeemable preferred stock and participating stock dividends		—		(41	)		—		(2,616	)
Net income (loss) attributable to common stockholders	$	9,367	$	13,504		$	23,561	$	(20,590	)
Denominator:
Weighted average common shares outstanding-basic		46,066		45,160			45,788		17,933
Dilutive effect of options and warrants		1,155		2,104			1,248		—
Weighted average common shares outstanding-diluted		47,221		47,264			47,036		17,933
Common stock income (loss) per share:
Basic	$	0.20	$	0.30		$	0.51	$	(1.15	)
Diluted	$	0.20	$	0.29		$	0.50	$	(1.15	)

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Intangible Assets (Tables)

9 Months Ended

Jun. 28, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Amortized Intangible Assets

Intangible assets include an indefinite-lived trade name with a carrying value of $3.4 million and the following amortizable intangible assets (in thousands):

	Total			Acquired Technology			Customer Relationships
As of June 28, 2013
Intangible assets	$	26,154		$	13,754		$	12,400
Less accumulated amortization		(13,144	)		(7,779	)		(5,365	)
Intangible assets - net	$	13,010		$	5,975		$	7,035
As of September 28, 2012:
Intangible assets	$	26,154		$	13,754		$	12,400
Less accumulated amortization		(10,778	)		(6,358	)		(4,420	)
Intangible assets - net	$	15,376		$	7,396		$	7,980

Summary of Amortization Expense of Intangible Assets

Amortization expense related to the Company’s amortized intangible assets is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	June 28, 2013		June 29, 2012		June 28, 2013		June 29, 2012
Cost of revenue	$	473	$	383	$	1,421	$	1,147
Selling, general and administrative		315		257		945		772
Total	$	788	$	640	$	2,366	$	1,919

Summary of Estimated Amortization of Intangible Assets in Future Fiscal Years

Estimated amortization of the intangible assets in future fiscal years as of June 28, 2013 (in thousands):

2013 (rest of fiscal year)	$	789
2014		3,155
2015		3,155
2016		2,391
2017		1,627
Thereafter		1,893
Total	$	13,010

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Commitments and Contingencies - Additional Information (Detail) (USD $)	1 Months Ended	9 Months Ended	12 Months Ended
	Jan. 28, 2013	Jun. 28, 2013 Defendant	Sep. 28, 2012	Apr. 30, 2011 Employees
Contingencies And Commitments [Line Items]
Outstanding unused letters of credit from a bank		$ 246,000	$ 246,000
Long term technology licensing and transfer commitment		3,700,000	6,300,000
Long term technology licensing and transfer commitment,Expiry Date		2016-07
Number of Ex-Employees previously worked for GigOptix				5
Number of Ex-Employees conceptualizing a new business venture				3
Ex-Employee defendants		5
Number of plaintiff's claims, voluntarily dismissed		2
Alleged damages	2,200,000
Maximum [Member]
Contingencies And Commitments [Line Items]
Long term technology licensing and transfer commitment		$ 9,000,000

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Financial Instruments - Additional Information (Detail) (USD $)	3 Months Ended	9 Months Ended
	Jun. 28, 2013	Jun. 28, 2013	May 31, 2013	Sep. 30, 2012
Fair Value Measurements Of Financial Instruments [Line Items]
Maximum possible earn-out				$ 6,000,000
Maximum earn-out payment			3,800,000
Expense related to amended arrangement	1,600,000	1,600,000
Expected life of common stock warrants		7 years 6 months
Expected volatility		44.50%
Risk free rate		2.20%
Research and Development [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Expense related to amended arrangement	1,000,000	1,000,000
Selling, General and Administrative [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Expense related to amended arrangement	$ 569,000	$ 569,000

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Intangible Assets - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Jun. 28, 2013
Goodwill And Intangible Assets Disclosure [Abstract]
Carrying value of trade name	$ 3.4

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Share-Based Compensation - Effects of Share-Based Compensation Expense Related to Share-Based Awards to Employees and Non-employees (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 1,420	$ 1,213	$ 4,726	$ 2,117
Cost of Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	243	304	852	372
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	421	391	1,277	603
Selling, General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 756	$ 518	$ 2,597	$ 1,142

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Description of Business, Basis of Presentation and Accounting - Additional Information (Detail)	9 Months Ended
	Jun. 28, 2013 Segment
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of reportable operating segment	1
Reporting period description	For fiscal years in which there are 53 weeks, the fourth quarter reporting period includes 14 weeks
Number of weeks in period	52 weeks

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Intangible Assets - Summary of Estimated Amortization of Intangible Assets in Future Fiscal Years (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 28, 2013	Sep. 28, 2012
Goodwill And Intangible Assets Disclosure [Abstract]
2013 (rest of fiscal year)	$ 789
2014	3,155
2015	3,155
2016	2,391
2017	1,627
Thereafter	1,893
Intangible assets - net	$ 13,010	$ 15,376

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Property and Equipment (Tables)

9 Months Ended

Jun. 28, 2013

Property Plant And Equipment [Abstract]

Components of Property and Equipment

Property and equipment consists of the following (in thousands):

	June 28, 2013			September 28, 2012
Machinery and equipment	$	45,166		$	38,795
Leasehold improvements		4,992			4,876
Furniture and fixtures		721			699
Construction in process		3,677			4,188
Computer equipment and software		6,695			6,594
Total property and equipment		61,251			55,152
Less accumulated depreciation and amortization		(32,502	)		(24,943	)
Property and equipment — net	$	28,749		$	30,209

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Jun. 28, 2013	Jun. 29, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 23,561	$ (17,974)
Adjustments to reconcile net income to net cash from operating activities:
Accretion of common stock warrant liability	2,035	2,791
Accretion of Class B conversion liability		44,119
Accretion of asset retirement obligations	44	58
Depreciation and amortization	10,338	8,577
Contingent consideration	(577)	(977)
Amortization of acquired unfavorable lease	(189)	(155)
Deferred income taxes	215	(1,728)
Loss on disposal of property and equipment	28	88
Share-based and other non-cash incentive compensation	4,366	2,189
Change in operating assets and liabilities:
Payment of contingent consideration	(5,328)
Accounts receivable	(1,011)	(4,380)
Inventories	2,805	(554)
Prepaid expenses and other assets	(1,000)	(2,350)
Accounts payable	(3,122)	4,437
Accrued and other liabilities	2,023	(214)
Income taxes	1,223	(2,408)
Deferred revenue	73	(5,240)
Net cash from operating activities	35,484	26,279
CASH FLOWS FROM INVESTING ACTIVITIES-
Purchases of property and equipment	(6,666)	(13,511)
CASH FLOWS FROM FINANCING ACTIVITIES:
Financing and offering costs	(126)	(3,351)
Proceeds from stock option exercises and employee stock purchases	1,697	174
Excess tax benefits	1,470	232
Repurchase of common stock	(77)	(546)
Payments of contingent consideration	(675)	(15,000)
Payment of dividends		(475)
Payments to former Mimix Holdings, Inc. stockholders	(4)	(17)
Proceeds from initial public offering, net of underwriters' discount		98,175
Payment of Class B preference		(60,000)
Net cash from financing activities	2,285	19,192
NET CHANGE IN CASH AND CASH EQUIVALENTS	31,103	31,960
CASH AND CASH EQUIVALENTS - Beginning of period	84,528	45,668
CASH AND CASH EQUIVALENTS - End of period	115,631	77,628
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	369	204
Cash paid for income taxes	$ 5,923	$ 17,213

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Financial Instruments

9 Months Ended

Jun. 28, 2013

Fair Value Disclosures [Abstract]

Financial Instruments

2. FINANCIAL INSTRUMENTS

Financial liabilities measured at fair value on a recurring basis consist of the following (in thousands):

	June 28, 2013
	Fair Value		Active Markets for Identical Assets (Level 1)		Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Common stock warrant liability	$	9,596	$	—	$	—	$	9,596

	September 28, 2012
	Fair Value		Active Markets for Identical Assets (Level 1)		Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Contingent consideration	$	6,580	$	—	$	—	$	6,580
Common stock warrant liability	$	7,561	$	—	$	—	$	7,561

The changes in financial liabilities with inputs classified within Level 3 of the fair value hierarchy consist of the following (in thousands):

	Three Months Ended June 28, 2013
	March 29, 2013		Net Realized/ Unrealized Losses (Gains) Included in Earnings			Purchases and Issuances		Sales and Settlements		Transfers in and/or (out) of Level 3		June 28, 2013
Common stock warrant liability	$	10,656	$	(1,060	)	$	—	$	—	$	—	$	9,596

	Three Months Ended June 29, 2012
	March 30, 2012		Net Realized/ Unrealized Losses (Gains) Included in Earnings			Purchases and Issuances		Sales and Settlements		Transfers in and/or (out) of Level 3		June 29, 2012
Contingent consideration	$	9,424	$	101		$	—	$	—	$	—	$	9,525
Common stock warrant liability	$	16,725	$	(3,198	)	$	—	$	—	$	—	$	13,527

	Nine Months Ended June 28, 2013
	September 28, 2012		Net Realized/ Unrealized Losses (Gains) Included in Earnings			Purchases and Issuances		Sales and Settlements			Transfers in and/or (out) of Level 3		June 28, 2013
Contingent consideration	$	6,580	$	(577	)	$	—	$	(6,003	)	$	—	$	—
Common stock warrant liability	$	7,561	$	2,035		$	—	$	—		$	—	$	9,596

	Nine Months Ended June 29, 2012
	September 30, 2011		Net Realized/ Unrealized Losses (Gains) Included in Earnings			Purchases and Issuances		Sales and Settlements			Transfers in and/or (out) of Level 3		June 29, 2012
Contingent consideration	$	25,502	$	(977	)	$	—	$	(15,000	)	$	—	$	9,525
Common stock warrant liability	$	10,736	$	2,791		$	—	$	—		$	—	$	13,527
Class B conversion liability	$	81,378	$	44,119		$	—	$	(125,497	)	$	—	$	—

The fair values of the contingent consideration liabilities were estimated based upon a risk-adjusted present value of the probability-weighted expected payments by the Company. Specifically, the Company considered base, upside and downside scenarios for the operating metrics upon which the contingent payments are to be based. Probabilities were assigned to each scenario and the probability-weighted payments were discounted to present value using risk-adjusted discount rates. We paid Cobham Defense Electronic Corporation (Cobham) a final payment of $6.0 million for the final earn-out period ending September 30, 2012 in November 2012 and no further amounts are owed under the arrangement.

The Company has an earn-out arrangement with the former stockholders and option holders of Optomai, Inc. (Optomai), which was acquired in April 2011. The initial earn-out measurement periods expired on March 29, 2013. In May 2013, the arrangement was amended such that the final earn-out period was extended through September 27, 2013 and the maximum earn-out payment, subject to potential reductions, was limited to $3.8 million. Prior to the amendment, the contingent consideration was carried at fair value and is included as a financial instrument in the table above, with changes in fair value being recorded in earnings. Pursuant to the initial terms, no amounts were payable through March 29, 2013. Amounts that may be payable to the former Optomai stockholders pursuant to the amended earn-out terms are being accounted for in a manner similar to compensation whereby the Company is accruing the probable payment over the remaining period that expires September 27, 2013 and is excluded from the tables above for the periods ended June 28, 2013. The accounting in a manner similar to compensation is being applied because a majority of any payments made pursuant to the arrangement are expected to be payable to persons who are currently employed by the Company, although employment during the earn-out period is not required under the terms of the agreement. For the three and nine months ended June 28, 2013, the Company expensed $1.6 million related to the amended arrangement, of which $1.0 million is included in research and development expense and $569,000 is included in selling, general and administrative expense in the accompanying condensed consolidated statements of operations.

Prior to the Company’s IPO in March 2012, the fair value of the common stock warrants was estimated based upon a present value of the probability-weighted expected investment returns to the holders. The Company weighted various scenarios of possible investment returns to the holders over the terms of the contracts, such as upon a sale of the Company and upon an initial public offering of its common stock, using a range of potential outcomes. Using the scenarios developed, management considered the likely timing and method of exercise of the warrants and investment returns to the holders. Where a settlement was considered likely in the near term, the probable settlement amounts were weighted. Where the time to exercise was expected to be longer, a Black-Scholes option pricing model was used to estimate the fair value of the warrants, giving consideration to remaining contractual life, expected volatility and risk free rates. The probability-weighted expected settlement of the warrant was discounted to the present using a risk adjusted discount rate. After March 2012, the quoted market price of the common stock underlying the warrants has been used. As of June 28, 2013, the fair value of the common stock warrants has been estimated using a Black-Scholes option pricing model giving consideration to the quoted market price of the common stock on that date, an expected life of 7.5 years, expected volatility of 44.5% and risk free rate of 2.2%.

The fair values of the Class B conversion liabilities were estimated based upon a consideration of the estimated fair value of the underlying common stock into which the Company’s Class B convertible preferred stock (Class B) was convertible, and the expected preferential payments pursuant to the terms of the securities. The Company estimated the fair value of the common stock by using the same probability-weighted scenarios used in estimating the fair value of the warrants. For each potential scenario, the value to the Class B was estimated relative to the existing preferences. The Class B conversion liabilities were settled upon the closing of the Company’s IPO in March 2012.

These estimates include significant judgments about potential future liquidity events and actual results could materially differ and could have a material impact upon the values of the recorded liabilities. Any changes in the estimated fair values of the liabilities in the future will be reflected in the Company’s earnings and such changes could be material.

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Debt

9 Months Ended

Jun. 28, 2013

Debt Disclosure [Abstract]

Debt

5. DEBT

On September 30, 2011, the Company entered into a loan agreement with a syndicate of lenders, which was subsequently augmented in February 2012 and November 2012. The agreement provides for a revolving credit facility of up to $150.0 million that matures in September 2016. Borrowings under the revolving credit facility bear a variable interest rate equal to (i) the greater of the lender’s prime rate, the federal funds effective rate plus 0.5%, or an adjusted LIBOR plus 1.0%, in each case plus either an additional 1.25%, 1.50% or 1.75%, subject to certain conditions, or (ii) an adjusted LIBOR rate plus either 2.25%, 2.50% or 2.75%, subject to certain conditions. The Company also pays a fee on the unused portion of the credit facility. The revolving credit facility is secured by a first priority lien on substantially all of the Company’s assets and requires compliance with certain financial and non-financial covenants, including restrictions on payments of dividends, incurrence of additional debt, levels of capital expenditures, amounts and types of investments, guarantees of debts and obligations, creation of liens, transactions with affiliates, sales or leases of assets, transfers of assets, entering new lines of business and entering into certain merger, consolidation or other reorganization transactions. As of June 28, 2013 and September 28, 2012, there were no outstanding borrowings under the revolving credit facility.

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Inventories

9 Months Ended

Jun. 28, 2013

Inventory Disclosure [Abstract]

Inventories

3. INVENTORIES

Inventories consist of the following (in thousands):

	June 28, 2013		September 28, 2012
Raw materials	$	30,679	$	29,922
Work-in-process		5,663		5,472
Finished goods		18,312		22,065
Total	$	54,654	$	57,459

In the nine months ended June 28, 2013, the Company refined its estimation process used to capitalize material and manufacturing variances to inventory to better reflect its current business. This change resulted in a $1.1 million increase to inventory and a corresponding reduction to costs of sales in March 2013.

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Intangible Assets - Summary of Amortized Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 28, 2013	Sep. 28, 2012
Finite-Lived Intangible Assets [Line Items]
Intangible assets	$ 26,154	$ 26,154
Less accumulated amortization	(13,144)	(10,778)
Intangible assets - net	13,010	15,376
Acquired Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	13,754	13,754
Less accumulated amortization	(7,779)	(6,358)
Intangible assets - net	5,975	7,396
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	12,400	12,400
Less accumulated amortization	(5,365)	(4,420)
Intangible assets - net	$ 7,035	$ 7,980

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Restructurings (Tables)

9 Months Ended

Jun. 28, 2013

Restructuring And Related Activities [Abstract]

Summary of Costs Related to Restructuring Actions

The following is a summary of the costs related to the restructuring actions (in thousands):

Balance-September 28, 2012	$	328
Current period charges		950
Payments		(684	)
Balance-June 28, 2013	$	594

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Financial Instruments - Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 28, 2013	Sep. 28, 2012
Common Stock Warrant Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities measured at fair value on a recurring basis	$ 9,596	$ 7,561
Contingent Consideration [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities measured at fair value on a recurring basis		6,580
Active Markets for Identical Assets (Level 1) [Member] | Common Stock Warrant Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities measured at fair value on a recurring basis
Active Markets for Identical Assets (Level 1) [Member] | Contingent Consideration [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities measured at fair value on a recurring basis
Observable Inputs (Level 2) [Member] | Common Stock Warrant Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities measured at fair value on a recurring basis
Observable Inputs (Level 2) [Member] | Contingent Consideration [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities measured at fair value on a recurring basis
Unobservable Inputs (Level 3) [Member] | Common Stock Warrant Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities measured at fair value on a recurring basis	9,596	7,561
Unobservable Inputs (Level 3) [Member] | Contingent Consideration [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities measured at fair value on a recurring basis		$ 6,580

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Property and Equipment - Components of Property and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 28, 2013	Sep. 28, 2012
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 61,251	$ 55,152
Less accumulated depreciation and amortization	(32,502)	(24,943)
Property and equipment - net	28,749	30,209
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	45,166	38,795
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	4,992	4,876
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	721	699
Construction in Process [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	3,677	4,188
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 6,695	$ 6,594

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Supplemental Cash Flow Information - Additional Information (Detail) (USD $)	9 Months Ended
	Jun. 28, 2013	Jun. 29, 2012
Supplemental Cash Flow Elements [Abstract]
Unpaid amounts related to purchase of assets	$ 821,000.0	$ 1,500,000

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Share-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended
	Jun. 28, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Shares, Outstanding - Beginning Balance	1,861
Number of Shares, Exercised	(407)
Number of Shares, Forfeited, canceled or expired	(404)
Number of Shares, Outstanding - Ending Balance	1,050
Number of Shares, Options vested and expected to vest as of June 28, 2013	1,019
Number of Shares, Options vested and exercisable as of June 28, 2013	781
Weighted-Average Exercise Price Per Share, Outstanding - Beginning Balance	$ 1.23
Weighted-Average Exercise Price Per Share, Exercised	$ 1.11
Weighted-Average Exercise Price Per Share, Forfeited, canceled or expired	$ 0.66
Weighted-Average Exercise Price Per Share, Outstanding - Ending Balance	$ 1.48
Weighted-Average Exercise Price Per Share, Options vested and expected to vest as of June 28, 2013	$ 1.45
Weighted-Average Exercise Price Per Share, Options vested and exercisable as of June 28, 2013	$ 1.35
Weighted-Average Remaining Contractual Term (in years), Beginning Balance	7 years 1 month 6 days
Weighted-Average Remaining Contractual Term (in years), Ending Balance	6 years 1 month 6 days
Weighted-Average Remaining Contractual Term (in years), Options vested and expected to vest as of June 28, 2013	6 years 1 month 6 days
Weighted-Average Remaining Contractual Term (in years), Options vested and exercisable as of June 28, 2013	6 years 1 month 6 days
Aggregate Intrinsic Value, Beginning Balance	$ 21,352
Aggregate Intrinsic Value, Ending Balance	13,775
Aggregate Intrinsic Value, Options vested and expected to vest as of June 28, 2013	13,361
Aggregate Intrinsic Value, Options vested and exercisable as of June 28, 2013	$ 10,355

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Income (Loss) Per Share - Computation for Basic and Diluted Net Income Per Share of Common Stock (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Numerator:
Net income (loss)	$ 9,367	$ 13,545	$ 23,561	$ (17,974)
Accretion of redeemable preferred stock and participating stock dividends		(41)		(2,616)
Net income (loss) attributable to common stockholders	$ 9,367	$ 13,504	$ 23,561	$ (20,590)
Denominator:
Weighted average common shares outstanding-basic	46,066	45,160	45,788	17,933
Weighted average common shares outstanding-diluted	47,221	47,264	47,036	17,933
Common stock income (loss) per share:
Basic	$ 0.20	$ 0.30	$ 0.51	$ (1.15)
Diluted	$ 0.20	$ 0.29	$ 0.50	$ (1.15)
Options and Warrants [Member]
Denominator:
Dilutive effect of options and warrants	1,155	2,104	1,248

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Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Income Statement [Abstract]
Revenue	$ 82,225	$ 77,125	$ 235,063	$ 227,640
Cost of revenue	45,932	41,721	132,644	124,272
Gross profit	36,293	35,404	102,419	103,368
Operating expenses:
Research and development	11,120	9,193	31,093	27,857
Selling, general and administrative	12,980	10,706	36,552	33,024
Contingent consideration		101	(577)	(977)
Restructuring charges	950		950	1,586
Total operating expenses	25,050	20,000	68,018	61,490
Income from operations	11,243	15,404	34,401	41,878
Other income (expense)
Accretion of common stock warrant liability	1,060	3,198	(2,035)	(2,791)
Accretion of Class B conversion liability				(44,119)
Interest expense	(190)	(161)	(616)	(545)
Other income - related party	123	91	293	91
Total other income (expense)	993	3,128	(2,358)	(47,364)
Income (loss) before income taxes	12,236	18,532	32,043	(5,486)
Income tax provision	2,869	4,987	8,482	12,488
Net income (loss)	9,367	13,545	23,561	(17,974)
Accretion of redeemable preferred stock and participating stock dividends		(41)		(2,616)
Net income (loss) attributable to common stockholders	$ 9,367	$ 13,504	$ 23,561	$ (20,590)
Net income (loss) per share:
Basic	$ 0.20	$ 0.30	$ 0.51	$ (1.15)
Diluted	$ 0.20	$ 0.29	$ 0.50	$ (1.15)
Shares used to compute net income (loss) per common share:
Basic	46,066	45,160	45,788	17,933
Diluted	47,221	47,264	47,036	17,933

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Income (Loss) Per Share

9 Months Ended

Jun. 28, 2013

Earnings Per Share [Abstract]

Income (Loss) Per Share

8. INCOME (LOSS) PER SHARE

Basic net income (loss) per common share was presented in conformity with the two-class method required for participating securities. Upon completion of the IPO in March 2012, all outstanding shares of preferred stock were converted to common stock. As a result, common stock is the only outstanding capital stock since the IPO.

Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. The Company’s potential dilutive common shares consist of common shares issuable upon the exercise of warrants, stock options and vesting of restricted stock units. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method.

The following table sets forth the computation for basic and diluted net income per share of common stock (in thousands, except per share data):

	Three Months Ended					Nine Months Ended
	June 28, 2013		June 29, 2012			June 28, 2013		June 29, 2012
Numerator:
Net income (loss)	$	9,367	$	13,545		$	23,561	$	(17,974	)
Accretion of redeemable preferred stock and participating stock dividends		—		(41	)		—		(2,616	)
Net income (loss) attributable to common stockholders	$	9,367	$	13,504		$	23,561	$	(20,590	)
Denominator:
Weighted average common shares outstanding-basic		46,066		45,160			45,788		17,933
Dilutive effect of options and warrants		1,155		2,104			1,248		—
Weighted average common shares outstanding-diluted		47,221		47,264			47,036		17,933
Common stock income (loss) per share:
Basic	$	0.20	$	0.30		$	0.51	$	(1.15	)
Diluted	$	0.20	$	0.29		$	0.50	$	(1.15	)

The table above excludes the effects of shares of common stock issuable upon exercise of stock options and warrants as well as the common stock issuable upon the conversion of preferred stock for the nine months ended June 29, 2012 as the inclusion of which would be antidilutive.

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Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (USD $) In Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
Balance at Sep. 28, 2012	$ 199,458	$ 45	$ (685)	$ (137)	$ 347,971	$ (147,736)
Balance, shares at Sep. 28, 2012		45,452	43
Issuance of common stock upon exercise of common stock options and employee stock purchases	1,697	1			1,696
Issuance of common stock upon exercise of common stock options and employee stock purchases, shares		539
Vesting of restricted common stock and units
Vesting of restricted common stock and units, shares		236
Repurchase of common stock	(77)		(77)
Repurchase of common stock, Shares			6
Share-based and other incentive compensation	4,366				4,366
Excess tax benefits	1,470				1,470
Foreign currency translation	(124)			(124)
Net income	23,561					23,561
Balance at Jun. 28, 2013	$ 230,351	$ 46	$ (762)	$ (261)	$ 355,503	$ (124,175)
Balance, shares at Jun. 28, 2013		46,227	49

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Geographic and Significant Customer Information - Summary of Customer Concentrations as Percentage of Total Sales and Accounts Receivable (Detail)	3 Months Ended		9 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012	Sep. 28, 2012
Revenue from External Customer [Line Items]
Revenue	59.00%	59.00%	59.00%	54.00%
Customer A [Member]
Revenue from External Customer [Line Items]
Revenue	14.00%	17.00%	15.00%	18.00%
Accounts Receivable	16.00%		16.00%		16.00%
Customer B [Member]
Revenue from External Customer [Line Items]
Revenue	25.00%	16.00%	25.00%	14.00%
Accounts Receivable	21.00%		21.00%		18.00%

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Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 28, 2013	Sep. 28, 2012
Current assets:
Cash and cash equivalents	$ 115,631	$ 84,528
Accounts receivable, net	55,195	54,184
Inventories	54,654	57,459
Income taxes receivable	4,220	4,939
Prepaid expenses and other current assets	5,217	3,660
Deferred income taxes	8,365	8,264
Total current assets	243,282	213,034
Property and equipment, net	28,749	30,209
Goodwill	3,990	3,990
Intangible assets, net	16,410	18,776
Other assets	1,386	2,064
TOTAL ASSETS	293,817	268,073
Current liabilities:
Accounts payable	24,130	26,958
Accrued liabilities	15,621	20,447
Income taxes payable	834	330
Deferred revenue	8,065	7,992
Total current liabilities	48,650	55,727
Common stock warrant liability	9,596	7,561
Other long-term liabilities	813	1,236
Deferred income taxes	4,407	4,091
Total liabilities	63,466	68,615
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock
Common stock	46	45
Additional paid-in capital	355,503	347,971
Treasury stock	(762)	(685)
Accumulated deficit	(124,175)	(147,736)
Accumulated other comprehensive loss	(261)	(137)
Total stockholders' equity	230,351	199,458
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 293,817	$ 268,073

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Share-Based Compensation - Additional Information (Detail) (USD $) Share data in Millions, unless otherwise specified	9 Months Ended
	Jun. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of options exercised	$ 5,400,000
Compensation cost expected to be recognized	1 year
Total intrinsic value of awards vesting	3,700,000
Omnibus Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in common stock available for issuance, shares	1.9
2012 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in common stock available for issuance, shares	0.6
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost	13,600,000
Compensation cost expected to be recognized	3 years 1 month 6 days
Unvested Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost	$ 243,000

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Share-Based Compensation (Tables)

9 Months Ended

Jun. 28, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Effects of Share-Based Compensation Expense Related to Share-Based Awards to Employees and Non-employees

The following table presents the effects of share-based compensation expense related to share-based awards to employees and non-employees in the Company’s condensed consolidated statements of operations during the periods presented (in thousands):

	Three Months Ended				Nine Months Ended
	June 28, 2013		June 29, 2012		June 28, 2013		June 29, 2012
Cost of revenue	$	243	$	304	$	852	$	372
Research and development		421		391		1,277		603
Selling, general and administrative		756		518		2,597		1,142
Total stock-based compensation expense	$	1,420	$	1,213	$	4,726	$	2,117

Summary of Stock Option Activity

A summary of stock option activity for the nine months ended June 28, 2013, is as follows (in thousands, except per share amounts):

	Number of Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding-September 28, 2012		1,861		$	1.23		7.1	$	21,352
Exercised		(407	)		1.11
Forfeited, canceled or expired		(404	)		0.66
Outstanding-June 28, 2013		1,050			1.48		6.1		13,775
Options vested and expected to vest as of June 28, 2013		1,019			1.45		6.1		13,361
Options vested and exercisable as of June 28, 2013		781			1.35		6.1		10,355

Summary of Restricted Stock and Units Activity

A summary of restricted stock and restricted stock units activity for the nine months ended June 28, 2013, is as follows (in thousands):

	Number of Shares			Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Unvested-September 28, 2012		582			2.9	$	7,391
Granted		843
Vested		(236	)
Forfeited, canceled or expired		(43	)
Issued and unvested-June 28, 2013		1,146			3.1		18,419
Shares expected to vest-June 28, 2013		1,014			3.1		16,298

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Financial Instruments (Tables)

9 Months Ended

Jun. 28, 2013

Fair Value Disclosures [Abstract]

Financial Liabilities Measured at Fair Value on Recurring Basis

Financial liabilities measured at fair value on a recurring basis consist of the following (in thousands):

	June 28, 2013
	Fair Value		Active Markets for Identical Assets (Level 1)		Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Common stock warrant liability	$	9,596	$	—	$	—	$	9,596

	September 28, 2012
	Fair Value		Active Markets for Identical Assets (Level 1)		Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Contingent consideration	$	6,580	$	—	$	—	$	6,580
Common stock warrant liability	$	7,561	$	—	$	—	$	7,561

Changes in Financial Liabilities with Inputs Classified within Level 3 of Fair Value

The changes in financial liabilities with inputs classified within Level 3 of the fair value hierarchy consist of the following (in thousands):

	Three Months Ended June 28, 2013
	March 29, 2013		Net Realized/ Unrealized Losses (Gains) Included in Earnings			Purchases and Issuances		Sales and Settlements		Transfers in and/or (out) of Level 3		June 28, 2013
Common stock warrant liability	$	10,656	$	(1,060	)	$	—	$	—	$	—	$	9,596

	Three Months Ended June 29, 2012
	March 30, 2012		Net Realized/ Unrealized Losses (Gains) Included in Earnings			Purchases and Issuances		Sales and Settlements		Transfers in and/or (out) of Level 3		June 29, 2012
Contingent consideration	$	9,424	$	101		$	—	$	—	$	—	$	9,525
Common stock warrant liability	$	16,725	$	(3,198	)	$	—	$	—	$	—	$	13,527

	Nine Months Ended June 28, 2013
	September 28, 2012		Net Realized/ Unrealized Losses (Gains) Included in Earnings			Purchases and Issuances		Sales and Settlements			Transfers in and/or (out) of Level 3		June 28, 2013
Contingent consideration	$	6,580	$	(577	)	$	—	$	(6,003	)	$	—	$	—
Common stock warrant liability	$	7,561	$	2,035		$	—	$	—		$	—	$	9,596

	Nine Months Ended June 29, 2012
	September 30, 2011		Net Realized/ Unrealized Losses (Gains) Included in Earnings			Purchases and Issuances		Sales and Settlements			Transfers in and/or (out) of Level 3		June 29, 2012
Contingent consideration	$	25,502	$	(977	)	$	—	$	(15,000	)	$	—	$	9,525
Common stock warrant liability	$	10,736	$	2,791		$	—	$	—		$	—	$	13,527
Class B conversion liability	$	81,378	$	44,119		$	—	$	(125,497	)	$	—	$	—

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Stockholder's Equity - Additional Information (Detail) (USD $)	Jun. 28, 2013	Sep. 28, 2012
Stockholders Equity [Abstract]
Preferred stock, par value	$ 0.001
Preferred stock, shares authorized	10,000,000
Common stock, par value	$ 0.001
Common stock, shares authorized	300,000,000
Unvested shares of restricted common stock excluded from outstanding shares	85,000	131,000

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Related Party Transactions - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Related Party Transaction [Line Items]
Cash paid to GaAs Labs			$ 60,000
Selling, general and administration expenses				360,000
Minimum service requirements or payment obligations	0		0
Notice period to terminate agreement			30 days
Other income - related party	123,000	91,000	293,000	91,000
Agreement with Ubiquiti Networks, Inc. description			Two of the Company's directors are also directors of Ubiquiti. An affiliate of one of the directors is also an Ubiquiti stockholder.
Payments for engineering services based on milestone achievement	500,000		500,000
Recorded revenue pursuant to the terms of the agreement	0	92,000	200,000	200,000
Director [Member]
Related Party Transaction [Line Items]
Recorded revenue pursuant to the terms of the agreement	$ 242,000		$ 242,000

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Debt - Additional Information (Detail) (Revolving Credit Facilities [Member], USD $)	9 Months Ended	12 Months Ended
	Jun. 28, 2013	Sep. 30, 2011	Sep. 28, 2012
Debt Instrument [Line Items]
Revolving credit facility maturity date		Sep. 30, 2016
Revolving credit facility maximum borrowing availability		$ 150,000,000
Revolving credit facility interest date	Borrowings under the revolving credit facility bear a variable interest rate equal to (i) the greater of the lender's prime rate, the federal funds effective rate plus 0.5%, or an adjusted LIBOR plus 1.0%, in each case plus either an additional 1.25%, 1.50% or 1.75%, subject to certain conditions, or (ii) an adjusted LIBOR rate plus either 2.25%, 2.50% or 2.75%, subject to certain conditions
Revolving credit facility, LIBOR rate	Adjusted LIBOR plus 1.0%
Revolving credit facility federal funds effective rate	Federal funds effective rate plus 0.5%
Federal funds effective rate	0.50%
LIBOR rate	1.00%
Outstanding borrowing under revolving credit facility	$ 0		$ 0
Interest Rate LIBOR One [Member]
Debt Instrument [Line Items]
Adjusted LIBOR rate percentage	1.25%
Interest Rate LIBOR Two [Member]
Debt Instrument [Line Items]
Adjusted LIBOR rate percentage	1.50%
Interest Rate LIBOR Three [Member]
Debt Instrument [Line Items]
Adjusted LIBOR rate percentage	1.75%
Interest Rate LIBOR Four [Member]
Debt Instrument [Line Items]
Adjusted LIBOR rate percentage	2.25%
Interest Rate LIBOR Five [Member]
Debt Instrument [Line Items]
Adjusted LIBOR rate percentage	2.50%
Interest Rate LIBOR Six [Member]
Debt Instrument [Line Items]
Adjusted LIBOR rate percentage	2.75%

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Inventories - Components of Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 28, 2013	Sep. 28, 2012
Inventory Disclosure [Abstract]
Raw materials	$ 30,679	$ 29,922
Work-in-process	5,663	5,472
Finished goods	18,312	22,065
Total	$ 54,654	$ 57,459

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Inventories - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended
	Mar. 29, 2013
Inventory Disclosure [Abstract]
Increase in inventory	$ 1.1
Reduction to costs of sales	$ 1.1

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Stockholder's Equity

9 Months Ended

Jun. 28, 2013

Equity [Abstract]

Stockholder's Equity

7. STOCKHOLDER’S EQUITY

The Company has authorized 10 million shares of $0.001 par value preferred stock and 300 million shares of $0.001 par value common stock as of June 28, 2013.

Outstanding shares of our common stock as of June 28, 2013 and September 28, 2012 presented in the accompanying condensed consolidated statements of stockholders’ equity exclude 85,000 and 131,000 unvested shares of restricted common stock, respectively, issued as compensation to employees that are subject to forfeiture.

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Geographic and Significant Customer Information (Tables)

9 Months Ended

Jun. 28, 2013

Segment Reporting [Abstract]

Summary of Different Geographic Regions

Information about the Company’s operations in different geographic regions, based upon customer locations, is presented below (in thousands):

	Three Months Ended				Nine Months Ended
Revenue by Geographic Region	June 28, 2013		June 29, 2012		June 28, 2013		June 29, 2012
United States	$	46,835	$	40,608	$	137,729	$	116,938
International (1)		35,390		36,517		97,334		110,702
Total	$	82,225	$	77,125	$	235,063	$	227,640

	As of
Long-Lived Assets by Geographic Region	June 28, 2013		September 28, 2012
United States	$	22,303	$	23,027
International (2)		6,446		7,182
Total	$	28,749	$	30,209

(1) No international countries represented greater than 10% of total revenue during the periods presented.

(2) No international country or region represented greater than 10% of the total net long-lived assets as of the dates presented, other than the Asia-Pacific region, which accounted for 13% as of June 28, 2013.

Summary of Customer Concentrations as Percentage of Total Sales and Accounts Receivable

The following is a summary of customer concentrations as a percentage of total sales and accounts receivable as of and for the periods presented:

	Three Months Ended						Nine Months Ended
Revenue	June 28, 2013			June 29, 2012			June 28, 2013			June 29, 2012
Customer A		14	%		17	%		15	%		18	%
Customer B		25	%		16	%		25	%		14	%

	As of
Accounts Receivable	June 28, 2013			September 28, 2012
Customer A		16	%		16	%
Customer B		21	%		18	%

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Intangible Assets - Summary of Amortization Expense of Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Schedule Of Amortization Expenses Recognized [Line Items]
Total	$ 788	$ 640	$ 2,366	$ 1,919
Cost of Revenue [Member]
Schedule Of Amortization Expenses Recognized [Line Items]
Total	473	383	1,421	1,147
Selling, General and Administrative [Member]
Schedule Of Amortization Expenses Recognized [Line Items]
Total	$ 315	$ 257	$ 945	$ 772

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Restructurings

9 Months Ended

Jun. 28, 2013

Restructuring And Related Activities [Abstract]

Restructurings

10. RESTRUCTURINGS

The Company recorded restructuring charges of $1.9 million in fiscal year 2012 and $950,000 in the three and nine months ended June 28, 2013, representing the full cost of a reduction in staffing actions and consisting of direct and incremental costs related to severance and outplacement fees for terminated employees. The action in fiscal year 2012 was designed to further lower operating costs. The action in the three and nine months ended June 28, 2013 was designed to further reduce manufacturing and operating costs. The unpaid restructuring costs from fiscal year 2012 were paid during the nine months ended June 28, 2013 and the unpaid costs of $594,000 as of June 28, 2013 are expected to be paid through the first quarter of fiscal year 2014. The following is a summary of the costs related to the restructuring actions (in thousands):

Balance-September 28, 2012	$	328
Current period charges		950
Payments		(684	)
Balance-June 28, 2013	$	594

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Intangible Assets

9 Months Ended

Jun. 28, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

6. INTANGIBLE ASSETS

Intangible assets include an indefinite-lived trade name with a carrying value of $3.4 million and the following amortizable intangible assets (in thousands):

	Total			Acquired Technology			Customer Relationships
As of June 28, 2013
Intangible assets	$	26,154		$	13,754		$	12,400
Less accumulated amortization		(13,144	)		(7,779	)		(5,365	)
Intangible assets - net	$	13,010		$	5,975		$	7,035
As of September 28, 2012:
Intangible assets	$	26,154		$	13,754		$	12,400
Less accumulated amortization		(10,778	)		(6,358	)		(4,420	)
Intangible assets - net	$	15,376		$	7,396		$	7,980

Amortization expense related to the Company’s amortized intangible assets is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	June 28, 2013		June 29, 2012		June 28, 2013		June 29, 2012
Cost of revenue	$	473	$	383	$	1,421	$	1,147
Selling, general and administrative		315		257		945		772
Total	$	788	$	640	$	2,366	$	1,919

Estimated amortization of the intangible assets in future fiscal years as of June 28, 2013 (in thousands):

2013 (rest of fiscal year)	$	789
2014		3,155
2015		3,155
2016		2,391
2017		1,627
Thereafter		1,893
Total	$	13,010

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Description of Business, Basis of Presentation and Accounting

9 Months Ended

Jun. 28, 2013

Accounting Policies [Abstract]

Description of Business, Basis of Presentation and Accounting

1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCOUNTING

Description of Business—M/A-COM Technology Solutions Holdings, Inc. (MACOM or the Company) was incorporated in Delaware on March 25, 2009. MACOM is a provider of high-performance analog semiconductor solutions for use in wireless and wireline applications across the radio frequency (RF), microwave and millimeterwave spectrum. Headquartered in Lowell, Massachusetts, MACOM has offices in North America, Europe, Asia and Australia.

The Company has one reportable operating segment which designs, develops, manufactures and markets semiconductors and modules.

Basis of Presentation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2012 filed with the SEC on November 28, 2012. The Company completed its initial public offering (IPO) in March 2012.

The Company’s fiscal year ends on the Friday closest to the last day of September. For fiscal years in which there are 53 weeks, the fourth quarter reporting period includes 14 weeks. Fiscal years 2012 and 2013 are 52 weeks in length.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year 2013. The condensed consolidated financial statements include the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.

Use of Estimates—The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities during the reporting periods, the reported amounts of revenue and expenses during the reporting periods, and the disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, the Company bases estimates and assumptions on historical experience, currently available information and various other factors that management believes to be reasonable under the circumstances. Actual results may differ materially from these estimates and assumptions. The accounting policies which our management believes involve the most significant application of judgment, or involve complex estimation include revenue recognition, inventory, warranty obligations, share-based compensation, income taxes and fair value measurements related to contingent consideration liabilities, common stock warrant liabilities and, through the completion of the IPO in March 2012, Class B conversion liabilities. Actual results could differ from those estimates, and material effects on our operating results and financial position may result.

Recent Accounting Standards—Under the Jumpstart Our Business Startups Act (JOBS Act), the Company meets the definition of an emerging growth company. The Company has elected to avail itself of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act.

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Share-Based Compensation - Summary of Restricted Stock and Units Activity (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Jun. 28, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Shares, Unvested - Beginning Balance	582
Number of Shares, Granted	843
Number of Shares, Vested	(236)
Number of Shares, Forfeited, canceled or expired	(43)
Number of Shares, Issued and unvested - Ending Balance	1,146
Number of Shares, Shares expected to vest-June 28, 2013	1,014
Weighted-Average Remaining Contractual Term (in years), Unvested-September 28, 2012	2 years 10 months 24 days
Weighted-Average Remaining Contractual Term (in years), Issued and unvested-June 28, 2013	3 years 1 month 6 days
Weighted- Average Remaining Contractual Term (in years), Shares expected to vest-June 28, 2013	3 years 1 month 6 days
Aggregate Intrinsic Value, Unvested - Beginning Balance	$ 7,391
Aggregate Intrinsic Value, Issued and unvested - Ending Balance	18,419
Aggregate Intrinsic Value, Shares expected to vest-June 28, 2013	$ 16,298

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Restructurings - Additional Information (Detail) (USD $)	3 Months Ended	9 Months Ended		12 Months Ended
	Jun. 28, 2013	Jun. 28, 2013	Jun. 29, 2012	Sep. 28, 2012
Restructuring And Related Activities [Abstract]
Restructuring charges	$ 950,000	$ 950,000	$ 1,586,000	$ 1,900,000
Unpaid costs	$ 594,000	$ 594,000

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Financial Instruments - Changes in Financial Liabilities with Inputs Classified within Level 3 of Fair Value (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Common Stock Warrant Liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Changes in financial liabilities with inputs classified within Level 3 of the fair value, beginning balance	$ 10,656	$ 16,725	$ 7,561	$ 10,736
Net Realized/ Unrealized Losses (Gains) Included in Earnings	(1,060)	(3,198)	2,035	2,791
Purchases and Issuances
Sales and Settlements
Transfers in and/or (out) of Level 3
Changes in financial liabilities with inputs classified within Level 3 of the fair value, ending balance	9,596	13,527	9,596	13,527
Contingent Consideration [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Changes in financial liabilities with inputs classified within Level 3 of the fair value, beginning balance		9,424	6,580	25,502
Net Realized/ Unrealized Losses (Gains) Included in Earnings		101	(577)	(977)
Purchases and Issuances
Sales and Settlements			(6,003)	(15,000)
Transfers in and/or (out) of Level 3
Changes in financial liabilities with inputs classified within Level 3 of the fair value, ending balance		9,525		9,525
Class B Conversion Liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Changes in financial liabilities with inputs classified within Level 3 of the fair value, beginning balance				81,378
Net Realized/ Unrealized Losses (Gains) Included in Earnings				44,119
Purchases and Issuances
Sales and Settlements				(125,497)
Transfers in and/or (out) of Level 3
Changes in financial liabilities with inputs classified within Level 3 of the fair value, ending balance

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Geographic and Significant Customer Information - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013 Customer	Jun. 29, 2012
Segment Reporting [Abstract]
Number of major customers			10
Total revenue of customer in percentage	59.00%	59.00%	59.00%	54.00%

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Related Party Transactions

9 Months Ended

Jun. 28, 2013

Related Party Transactions [Abstract]

Related Party Transactions

13. RELATED PARTY TRANSACTIONS

GaAs Labs, LLC (GaAs Labs), a stockholder and an affiliate of directors and majority stockholders John and Susan Ocampo, was formerly engaged to provide management services pursuant to an agreement entered into in fiscal year 2008 and amended in December 2010. Commencing in fiscal year 2009, the Company paid GaAs Labs $60,000 per month. Selling, general and administrative expenses for the nine months ended June 29, 2012 include $360,000 for such services. The agreement terminated by its terms concurrently with the closing of the IPO in March 2012.

In April 2012, the Company entered into an agreement with GaAs Labs whereby GaAs Labs pays the Company for administrative and business development services provided to GaAs Labs on a time and materials basis. There are no minimum service requirements or payment obligations and the agreement may be terminated by either party with 30 days notice. In the three and nine months ended June 28, 2013, the Company billed GaAs Labs $123,000 and $293,000, respectively, for services provided pursuant to this agreement and has recorded these amounts as other income in the accompanying condensed consolidated statements of operations.

In February 2012, the Company entered into a design services agreement with Ubiquiti Networks, Inc. (Ubiquiti). Two of the Company’s directors are also directors of Ubiquiti. An affiliate of one of the directors is also an Ubiquiti stockholder. The agreement provides that the Company will provide engineering services to Ubiquiti toward the development of a device. The agreement also provides that Ubiquiti will pay the Company up to $500,000 for such services based on milestone achievement and sets a unit price for any future production orders of such devices. Pursuant to the terms of the agreement, the Company recorded revenue of $0 and $92,000 respectively, for the three months ended June 28, 2013 and June 29, 2012 and $200,000 and $200,000, respectively, for the nine months then ended.

In the three and nine months ended June 28, 2013, the Company recorded revenue of $242,000 from sales of product to a privately-held company with a common director.

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Commitments and Contingencies

9 Months Ended

Jun. 28, 2013

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. COMMITMENTS AND CONTINGENCIES

Unused Letter of Credit—As of June 28, 2013 and September 28, 2012, the Company had outstanding unused letters of credit from a bank aggregating $246,000.

Purchase Commitments—As of June 28, 2013 and September 28, 2012, the Company had outstanding non-cancelable purchase commitments aggregating $3.7 million and $6.3 million, respectively, pursuant to inventory supply arrangements. The Company has a long term technology licensing and transfer commitment that calls for potential payments by the Company of up to $9 million through July 2016.

Litigation—The Company is periodically subject to legal proceedings, claims and contingencies arising in the ordinary course of business.

GigOptix Matter. In April 2011, GigOptix, Inc. (GigOptix) filed a complaint and subsequently a first amended complaint (Complaint) in the Santa Clara County Superior Court against the Company, its subsidiary Optomai, and five of the employees (Ex-Employees) who had previously worked for GigOptix. GigOptix alleged that three of the Ex-Employees began conceptualizing a new business venture in 2009 (which would later become Optomai) before resigning from their employment with GigOptix, and that they used confidential information of GigOptix in their new business. The Complaint sought unspecified damages, attorneys’ fees and costs, and injunctive relief for alleged breach of employment-related agreements, trade secret misappropriation and other related alleged torts by the employee defendants, Optomai and, following its April 2011 acquisition of Optomai, the Company.

In July 2011, GigOptix sought a temporary restraining order and thereafter an injunction on the same grounds, both of which were denied by the court. In August 2011, GigOptix amended its Complaint for the second time to delete its causes of action for negligent and intentional interference with economic advantage and unfair competition, leaving the following causes of action to be adjudicated: (i) breach of duty of loyalty against the Ex-Employees only, (ii) breach of contract against the Ex-Employees only, (iii) misappropriation of trade secrets against all defendants, and (iv) unfair business practices against all defendants. Each side has served and responded to written discovery requests, produced documents and conducted witness depositions.

On July 30, 2012, GigOptix filed and served a renewed motion for preliminary injunction, which was argued before the court on September 13, 2012. After considering evidence presented by the parties, including witness and expert testimony and forensic evidence, the court denied GigOptix’s renewed motion for preliminary injunction on September 18, 2012. The parties participated in a non-binding mediation of their dispute on December 20, 2012, but did not resolve the issues. In January 2013, the plaintiff’s claims were voluntarily dismissed as to two of the five individual Ex-Employee defendants and the court set a date for a trial beginning August 26, 2013. On July 26, 2013, the court heard motions brought by all defendants to stay the case on the basis that certain individual defendants are being investigated by the United States Attorneys’ Office for the Northern District of California, and consequently may be unavailable to testify and rebut allegations made in the civil complaint. On July 30, 2013, the court denied the defendants’ stay motions.

CSR Matter. In January 2013, CSR Technology Inc. (“CSR”) filed a complaint against the Company in the Massachusetts Superior Court for Suffolk County alleging breach of contract, breach of the implied covenant of good faith and fair dealing, misrepresentation, deceptive business practices and unfair competition, all relating to the Company’s purported failure to honor an alleged minimum purchase commitment contract between the Company with respect to certain semiconductor chips previously supplied by CSR for use in our automotive module product. The complaint claims alleged damages of $2.2 million and asks for attorney’s fees and other remedies. The Company filed an answer to the complaint on January 28, 2013. The parties are proceeding with discovery and document production.

The Company intends to continue to defend the aforementioned lawsuits vigorously. The Company does not expect that the ultimate cost to resolve these matters will have a material effect on the consolidated financial statements. The Company does not believe a risk of loss resulting from litigation is probable, nor is the Company able to estimate any reasonably possible range of loss

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Description of Business, Basis of Presentation and Accounting (Policies)

9 Months Ended

Jun. 28, 2013

Accounting Policies [Abstract]

Description of Business

Description of Business—M/A-COM Technology Solutions Holdings, Inc. (MACOM or the Company) was incorporated in Delaware on March 25, 2009. MACOM is a provider of high-performance analog semiconductor solutions for use in wireless and wireline applications across the radio frequency (RF), microwave and millimeterwave spectrum. Headquartered in Lowell, Massachusetts, MACOM has offices in North America, Europe, Asia and Australia.

The Company has one reportable operating segment which designs, develops, manufactures and markets semiconductors and modules.

Basis of Presentation

Basis of Presentation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2012 filed with the SEC on November 28, 2012. The Company completed its initial public offering (IPO) in March 2012.

The Company’s fiscal year ends on the Friday closest to the last day of September. For fiscal years in which there are 53 weeks, the fourth quarter reporting period includes 14 weeks. Fiscal years 2012 and 2013 are 52 weeks in length.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year 2013. The condensed consolidated financial statements include the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.

Use of Estimates

Use of Estimates—The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities during the reporting periods, the reported amounts of revenue and expenses during the reporting periods, and the disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, the Company bases estimates and assumptions on historical experience, currently available information and various other factors that management believes to be reasonable under the circumstances. Actual results may differ materially from these estimates and assumptions. The accounting policies which our management believes involve the most significant application of judgment, or involve complex estimation include revenue recognition, inventory, warranty obligations, share-based compensation, income taxes and fair value measurements related to contingent consideration liabilities, common stock warrant liabilities and, through the completion of the IPO in March 2012, Class B conversion liabilities. Actual results could differ from those estimates, and material effects on our operating results and financial position may result.

Recent Accounting Standards

Recent Accounting Standards—Under the Jumpstart Our Business Startups Act (JOBS Act), the Company meets the definition of an emerging growth company. The Company has elected to avail itself of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act.

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Supplemental Cash Flow Information

9 Months Ended

Jun. 28, 2013

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

14. SUPPLEMENTAL CASH FLOW INFORMATION

As of June 28, 2013 and June 29, 2012, the Company had $821,000 and $1.5 million, respectively, in unpaid amounts related to purchases of property and equipment included in accounts payable and accrued liabilities. These amounts have been excluded from the payments for purchases of property and equipment in the accompanying condensed consolidated statements of cash flows until paid.

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Document and Entity Information	9 Months Ended
	Jun. 28, 2013	Jul. 24, 2013
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 28, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Trading Symbol	MTSI
Entity Registrant Name	M/A-COM Technology Solutions Holdings, Inc.
Entity Central Index Key	0001493594
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		46,332,274

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Geographic and Significant Customer Information

9 Months Ended

Jun. 28, 2013

Segment Reporting [Abstract]

Geographic and Significant Customer Information

15. GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION

Information about the Company’s operations in different geographic regions, based upon customer locations, is presented below (in thousands):

	Three Months Ended				Nine Months Ended
Revenue by Geographic Region	June 28, 2013		June 29, 2012		June 28, 2013		June 29, 2012
United States	$	46,835	$	40,608	$	137,729	$	116,938
International (1)		35,390		36,517		97,334		110,702
Total	$	82,225	$	77,125	$	235,063	$	227,640

	As of
Long-Lived Assets by Geographic Region	June 28, 2013		September 28, 2012
United States	$	22,303	$	23,027
International (2)		6,446		7,182
Total	$	28,749	$	30,209

(1) No international countries represented greater than 10% of total revenue during the periods presented.

(2) No international country or region represented greater than 10% of the total net long-lived assets as of the dates presented, other than the Asia-Pacific region, which accounted for 13% as of June 28, 2013.

The following is a summary of customer concentrations as a percentage of total sales and accounts receivable as of and for the periods presented:

	Three Months Ended						Nine Months Ended
Revenue	June 28, 2013			June 29, 2012			June 28, 2013			June 29, 2012
Customer A		14	%		17	%		15	%		18	%
Customer B		25	%		16	%		25	%		14	%

	As of
Accounts Receivable	June 28, 2013			September 28, 2012
Customer A		16	%		16	%
Customer B		21	%		18	%

No other customer represented more than 10% of revenue or accounts receivable in the periods presented in the accompanying consolidated financial statements. For the three months ended June 28, 2013 and June 29, 2012, ten customers represented 59% and 59% of total revenue, respectively. For the nine months ended June 28, 2013 and June 29, 2012, ten customers represented 59% and 54% of total revenue, respectively.