AQUANTIA CORP

No Longer Reporting

The company has not filed an annual or quarterly report since its Q2 FY2019 10-Q, filed Aug 8, 2019. Its latest SEC filing is a SC 13G/A from Jan 30, 2020.

The sections below describe the company as of the FY2018 annual report.

What Did They Do?

Sells high-speed Ethernet connectivity chips for data centers, enterprise networks, access equipment and automotive systems to chip suppliers and equipment makers.

How Did They Make Money?

Customers buy Aquantia’s Ethernet chips, including physical-layer devices and custom chips; invoices are issued for each delivery when products ship.

FY2018 revenue

Who Were Their Customers?

Chip suppliers, equipment makers and design manufacturers buy directly, mainly through direct sales; the company also sells through sales representatives and distributors.

Direct customers above 10% of revenue, FY2018

of revenue from two customers (49%, 27%)

FY2017: 88% from two customers

Did Revenues Turn Into Profits?

Not on paper. It lost $9.8M in FY2018, but brought in more cash than it spent: $5.5M of free cash flow.

Operating income, FY2018

−9% of revenue

▲ +256% (Loss) vs FY2017 (−$3M, −3%)

Net income, FY2018

−8% of revenue

▲ +80% (Loss) vs FY2017 (−$5.4M, −5%)

Free cash flow, FY2018

5% of revenue

▲ Now profitable vs FY2017 (−$17.1M, −17%)

How Were They Changing?

Since the FY2018 annual report

Latest quarter: Q2 FY2019, the three months to Jun 30, 2019

Revenue: ▼ −70%; vs $30.4M in Q2 FY2018
Net income: ▲ +2047% (Loss); vs −$833K in Q2 FY2018

Sep 19, 2019 Marvell completed its acquisition of Aquantia, which became its wholly owned subsidiary. Aquantia shareholders were entitled to $13.25 in cash per share; the company’s stock was delisted from the New York Stock Exchange.
May 10, 2019 Aquantia agreed to be acquired by Marvell for cash. The merger agreement set consideration at $13.25 in cash per share.

Grew. Revenue grew 49% in 3 years, from $80.8M in FY2015 to $120.8M in FY2018, about 14% a year.

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