MaxLinear, Inc. Announces Second Quarter 2020 Financial Results

Use of Non-GAAP Financial Measures

To supplement our unaudited consolidated financial statements presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross margin, operating expenses, operating expenses as a percentage of revenue, income from operations as percentage of revenue, and diluted earnings per share. These supplemental measures exclude the effects of (i) stock-based compensation expense; (ii) accruals related to our performance based bonus plan for 2020, which we currently intend to settle in shares of our common stock; (iii) accruals related to our performance based bonus plan for 2019 which we settled in shares of common stock in 2020; (iv) amortization of purchased intangible assets; (v) depreciation of fixed assets step-up; (vi) acquisition costs related to our recently announced acquisition; (vii) professional fees and settlement costs related to IP and commercial litigation matters; (viii) severance and other restructuring charges; (ix) impairment losses on intangible assets; and (x) non-cash income tax benefits and expenses. These non-GAAP measures are not in accordance with and do not serve as an alternative for GAAP. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our GAAP results of operations. These non-GAAP measures should only be viewed in conjunction with corresponding GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

We believe that non-GAAP financial measures can provide useful information to both management and investors by excluding certain non-cash and other one-time expenses that are not indicative of our core operating results. Among other uses, our management uses non-GAAP measures to compare our performance relative to forecasts and strategic plans and to benchmark our performance externally against competitors. In addition, management’s incentive compensation will be determined in part using these non-GAAP measures because we believe non-GAAP measures better reflect our core operating performance.

The following are explanations of each type of adjustment that we incorporate into non-GAAP financial measures:

Stock-based compensation expense relates to equity incentive awards granted to our employees, directors, and consultants. Our equity incentive plans are important components of our employee incentive compensation arrangements and are reflected as expenses in our GAAP results. Stock-based compensation expense has been and will continue to be a significant recurring expense for MaxLinear. While we include the dilutive impact of equity awards in weighted average shares outstanding, the expense associated with stock-based awards reflects a non-cash charge that we exclude from non-GAAP net income.

Bonuses under our executive and non-executive bonus programs have been excluded from our non-GAAP net income for all periods reported. Bonus payments for the 2019 performance periods were settled through the issuance of shares of common stock under our equity incentive plans in March 2020. We currently expect that bonus awards under our fiscal 2020 program will be settled in common stock in the first quarter of fiscal 2021.

Expenses incurred in relation to acquisitions include amortization of purchased intangible assets, depreciation of step-up of property and equipment to fair value, and acquisition costs primarily consisting of professional and consulting fees.

Impairment losses relate to certain intangible assets.

Restructuring charges incurred are related to our restructuring plans which eliminate redundancies and primarily include severance and restructuring costs related to exiting certain facilities.

Expenses incurred in relation to our intellectual property and commercial litigation include professional fees incurred.

Income tax benefits and expense adjustments are those that do not affect cash income taxes payable.

Reconciliations of non-GAAP measures for the historic periods disclosed in this press release appear below. Because of the inherent uncertainty associated with our ability to project future charges, particularly related to stock-based compensation and its related tax effects as well as potential impairments, we have not provided a reconciliation for non-GAAP guidance provided for the third quarter 2020.

About MaxLinear, Inc.

MaxLinear, Inc. (NYSE: MXL) is a leading provider of radio frequency (RF), analog and mixed-signal integrated circuits for the connected home, wired and wireless infrastructure, and industrial and multi-market applications. MaxLinear is headquartered in Carlsbad, California. For more information, please visit www.maxlinear.com.

MXL is MaxLinear’s registered trademark. Other trademarks appearing herein are the property of their respective owners.

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

Three Months Ended

 

June 30, 2020

 

March 31, 2020

 

June 30, 2019

Net revenue

$

65,220

 

 

$

62,027

 

 

$

82,507

 

Cost of net revenue

32,477

 

 

31,265

 

 

38,427

 

Gross profit

32,743

 

 

30,762

 

 

44,080

 

Operating expenses:

 

 

 

 

 

Research and development

27,984

 

 

25,689

 

 

24,304

 

Selling, general and administrative

27,470

 

 

24,632

 

 

22,327

 

Impairment losses

 

 

86

 

 

 

Restructuring charges

64

 

 

489

 

 

416

 

Total operating expenses

55,518

 

 

50,896

 

 

47,047

 

Loss from operations

(22,775

)

 

(20,134

)

 

(2,967

)

Interest income

31

 

 

225

 

 

192

 

Interest expense

(2,183

)

 

(2,476

)

 

(2,853

)

Other income (expense), net

(81

)

 

180

 

 

(14

)

Total interest and other income (expense), net

(2,233

)

 

(2,071

)

 

(2,675

)

Loss before income taxes

(25,008

)

 

(22,205

)

 

(5,642

)

Income tax benefit

(3,201

)

 

(6,736

)

 

(3,413

)

Net loss

$

(21,807

)

 

$

(15,469

)

 

$

(2,229

)

Net loss per share:

 

 

 

 

 

Basic

$

(0.30

)

 

$

(0.21

)

 

$

(0.03

)

Diluted

$

(0.30

)

 

$

(0.21

)

 

$

(0.03

)

Shares used to compute net loss per share:

 

 

 

 

 

Basic

72,740

 

 

72,039

 

 

70,917

 

Diluted

72,740

 

 

72,039

 

 

70,917

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

Six Months Ended

 

June 30, 2020

 

June 30, 2019

Net revenue

$

127,247

 

 

$

167,142

 

Cost of net revenue

63,742

 

 

77,985

 

Gross profit

63,505

 

 

89,157

 

Operating expenses:

 

 

 

Research and development

53,673

 

 

51,703

 

Selling, general and administrative

52,102

 

 

45,918

 

Impairment losses

86

 

 

 

Restructuring charges

553

 

 

2,333

 

Total operating expenses

106,414

 

 

99,954

 

Loss from operations

(42,909

)

 

(10,797

)

Interest income

256

 

 

339

 

Interest expense

(4,659

)

 

(5,828

)

Other income (expense), net

99

 

 

(669

)

Total interest and other income (expense), net

(4,304

)

 

(6,158

)

Loss before income taxes

(47,213

)

 

(16,955

)

Income tax benefit

(9,937

)

 

(9,875

)

Net loss

$

(37,276

)

 

$

(7,080

)

Net loss per share:

 

 

 

Basic

$

(0.51

)

 

$

(0.10

)

Diluted

$

(0.51

)

 

$

(0.10

)

Shares used to compute net loss per share:

 

 

 

Basic

72,389

 

 

70,445

 

Diluted

72,389

 

 

70,445

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

Three Months Ended

 

June 30, 2020

 

March 31, 2020

 

June 30, 2019

Operating Activities

 

 

 

 

 

Net loss

$

(21,807

)

 

$

(15,469

)

 

$

(2,229

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

Amortization and depreciation

16,532

 

 

16,733

 

 

16,646

 

Impairment losses

 

 

86

 

 

 

Amortization of debt issuance costs and accretion of discount on debt and leases

397

 

 

410

 

 

391

 

Stock-based compensation

12,085

 

 

6,827

 

 

8,207

 

Deferred income taxes

(2,879

)

 

(6,208

)

 

(4,600

)

Loss on disposal of property and equipment

 

 

 

 

11

 

Impairment of leasehold improvements

 

 

163

 

 

 

Impairment of leased right-of-use assets

 

 

44

 

 

 

(Gain) loss on foreign currency

20

 

 

(246

)

 

(54

)

Excess tax deficiencies (benefits) on stock-based awards

(472

)

 

94

 

 

(2,074

)

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

3,362

 

 

5,615

 

 

3,022

 

Inventory

(3,184

)

 

353

 

 

(122

)

Prepaid expenses and other assets

(669

)

 

1,443

 

 

(648

)

Leased right-of-use assets

(314

)

 

640

 

 

981

 

Accounts payable, accrued expenses and other current liabilities

6,020

 

 

(785

)

 

2,961

 

Accrued compensation

4,396

 

 

3,361

 

 

(209

)

Accrued price protection liability

(2,132

)

 

(4,537

)

 

(7,649

)

Lease liabilities

(1,279

)

 

(1,430

)

 

(2,179

)

Other long-term liabilities

(816

)

 

(446

)

 

(11

)

Net cash provided by operating activities

9,260

 

 

6,648

 

 

12,444

 

Investing Activities

 

 

 

 

 

Purchases of property and equipment

(3,901

)

 

(1,035

)

 

(524

)

Purchases of intangible assets

(13

)

 

 

 

 

Net cash used in investing activities

(3,914

)

 

(1,035

)

 

(524

)

Financing Activities

 

 

 

 

 

Repayment of debt

 

 

 

 

(15,000

)

Net proceeds from issuance of common stock

4,154

 

 

488

 

 

3,305

 

Minimum tax withholding paid on behalf of employees for restricted stock units

(1,024

)

 

(475

)

 

(5,408

)

Net cash provided by (used in) financing activities

3,130

 

 

13

 

 

(17,103

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

513

 

 

(303

)

 

354

 

Increase (decrease) in cash, cash equivalents and restricted cash

8,989

 

 

5,323

 

 

(4,829

)

Cash, cash equivalents and restricted cash at beginning of period

98,440

 

 

93,117

 

 

71,867

 

Cash, cash equivalents and restricted cash at end of period

$

107,429

 

 

$

98,440

 

 

$

67,038

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

Six months ended

 

June 30, 2020

 

June 30, 2019

Operating Activities

 

 

 

Net loss

$

(37,276

)

 

$

(7,080

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Amortization and depreciation

33,265

 

 

33,509

 

Impairment losses

86

 

 

 

Amortization of debt issuance costs and accretion of discount on debt and leases

807

 

 

793

 

Stock-based compensation

18,912

 

 

15,954

 

Deferred income taxes

(9,087

)

 

(11,076

)

Loss on disposal of property and equipment

 

 

46

 

Impairment of leasehold improvements

163

 

 

1,442

 

Impairment of leased right-of-use assets

44

 

 

2,182

 

Gain on extinguishment of lease liabilities

 

 

(2,880

)

(Gain) loss on foreign currency

(226

)

 

513

 

Excess tax benefits on stock-based awards

(378

)

 

(3,811

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

8,977

 

 

2,880

 

Inventory

(2,831

)

 

(1,137

)

Prepaid expenses and other assets

774

 

 

(44

)

Leased right-of-use assets

326

 

 

1,626

 

Accounts payable, accrued expenses and other current liabilities

5,235

 

 

4,882

 

Accrued compensation

7,757

 

 

684

 

Accrued price protection liability

(6,669

)

 

(5,160

)

Lease liabilities

(2,709

)

 

(4,304

)

Other long-term liabilities

(1,262

)

 

(530

)

Net cash provided by operating activities

15,908

 

 

28,489

 

Investing Activities

 

 

 

Purchases of property and equipment

(4,936

)

 

(2,679

)

Purchases of intangible assets

(13

)

 

 

Net cash used in investing activities

(4,949

)

 

(2,679

)

Financing Activities

 

 

 

Repayment of debt

 

 

(30,000

)

Net proceeds from issuance of common stock

4,642

 

 

5,933

 

Minimum tax withholding paid on behalf of employees for restricted stock units

(1,499

)

 

(9,827

)

Net cash provided by (used in) financing activities

3,143

 

 

(33,894

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

210

 

 

931

 

Increase (decrease) in cash, cash equivalents and restricted cash

14,312

 

 

(7,153

)

Cash, cash equivalents and restricted cash at beginning of period

93,117

 

 

74,191

 

Cash, cash equivalents and restricted cash at end of period

$

107,429

 

 

$

67,038

 

MAXLINEAR, INC.

UNAUDITED GAAP CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

June 30, 2020

 

March 31, 2020

 

June 30, 2019

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

107,362

 

 

$

98,373

 

 

$

66,629

 

Short-term restricted cash

9

 

 

10

 

 

344

 

Accounts receivable, net

41,434

 

 

44,796

 

 

56,618

 

Inventory

34,284

 

 

31,088

 

 

42,875

 

Prepaid expenses and other current assets

7,489

 

 

6,342

 

 

6,184

 

Total current assets

190,578

 

 

180,609

 

 

172,650

 

Long-term restricted cash

58

 

 

57

 

 

65

 

Property and equipment, net

18,059

 

 

15,751

 

 

15,738

 

Leased right-of-use assets

8,942

 

 

9,864

 

 

20,624

 

Intangible assets, net

159,441

 

 

173,570

 

 

216,342

 

Goodwill

238,330

 

 

238,330

 

 

238,330

 

Deferred tax assets

76,371

 

 

73,492

 

 

62,667

 

Other long-term assets

1,281

 

 

1,752

 

 

2,744

 

Total assets

$

693,060

 

 

$

693,425

 

 

$

729,160

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities

$

69,964

 

 

$

62,428

 

 

$

66,918

 

Long-term lease liabilities

6,833

 

 

8,029

 

 

16,515

 

Long-term debt

207,486

 

 

207,197

 

 

226,335

 

Other long-term liabilities

6,802

 

 

7,614

 

 

8,016

 

Stockholders’ equity

401,975

 

 

408,157

 

 

411,376

 

Total liabilities and stockholders’ equity

$

693,060

 

 

$

693,425

 

 

$

729,160

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

Three Months Ended

 

June 30, 2020

 

March 31, 2020

 

June 30, 2019

GAAP gross profit

$

32,743

 

 

$

30,762

 

 

$

44,080

 

Stock-based compensation

126

 

 

148

 

 

147

 

Performance based equity

109

 

 

69

 

 

 

Amortization of purchased intangible assets

8,581

 

 

8,581

 

 

8,478

 

Non-GAAP gross profit

41,559

 

 

39,560

 

 

52,705

 

 

 

 

 

 

 

GAAP R&D expenses

27,984

 

 

25,689

 

 

24,304

 

Stock-based compensation

(5,040

)

 

(3,746

)

 

(4,222

)

Performance based equity

(2,054

)

 

(1,750

)

 

 

Non-GAAP R&D expenses

20,890

 

 

20,193

 

 

20,082

 

 

 

 

 

 

 

GAAP SG&A expenses

27,470

 

 

24,632

 

 

22,327

 

Stock-based compensation

(6,920

)

 

(2,933

)

 

(3,823

)

Performance based equity

(1,144

)

 

(1,136

)

 

 

Amortization of purchased intangible assets

(5,549

)

 

(5,723

)

 

(5,792

)

Acquisition costs

(2,090

)

 

(3,270

)

 

 

IP litigation costs, net

(54

)

 

(60

)

 

(13

)

Non-GAAP SG&A expenses

11,713

 

 

11,510

 

 

12,699

 

 

 

 

 

 

 

GAAP impairment losses

 

 

86

 

 

 

Impairment losses

 

 

(86

)

 

 

Non-GAAP impairment losses

 

 

 

 

 

 

 

 

 

 

 

GAAP restructuring expenses

64

 

 

489

 

 

416

 

Restructuring charges

(64

)

 

(489

)

 

(416

)

Non-GAAP restructuring expenses

 

 

 

 

 

 

 

 

 

 

 

GAAP loss from operations

(22,775

)

 

(20,134

)

 

(2,967

)

Total non-GAAP adjustments

31,731

 

 

27,991

 

 

22,891

 

Non-GAAP income from operations

8,956

 

 

7,857

 

 

19,924

 

 

 

 

 

 

 

GAAP and non-GAAP interest and other income (expense), net

(2,233

)

 

(2,071

)

 

(2,675

)

 

 

 

 

 

 

GAAP loss before income taxes

(25,008

)

 

(22,205

)

 

(5,642

)

Total non-GAAP adjustments

31,731

 

 

27,991

 

 

22,891

 

Non-GAAP income before income taxes

6,723

 

 

5,786

 

 

17,249

 

 

 

 

 

 

 

GAAP income tax benefit

(3,201

)

 

(6,736

)

 

(3,413

)

Adjustment for non-cash tax benefits/expenses

3,605

 

 

7,083

 

 

4,621

 

Non-GAAP income tax provision

404

 

 

347

 

 

1,208

 

 

 

 

 

 

 

GAAP net loss

(21,807

)

 

(15,469

)

 

(2,229

)

Total non-GAAP adjustments before income taxes

31,731

 

 

27,991

 

 

22,891

 

Less: total tax adjustments

3,605

 

 

7,083

 

 

4,621

 

Non-GAAP net income

$

6,319

 

 

$

5,439

 

 

$

16,041

 

 

 

 

 

 

 

Shares used in computing non-GAAP basic net income per share

72,740

 

 

72,039

 

 

70,917

 

Shares used in computing non-GAAP diluted net income per share

73,772

 

 

72,673

 

 

72,389

 

Non-GAAP basic net income per share

$

0.09

 

 

$

0.08

 

 

$

0.23

 

Non-GAAP diluted net income per share

$

0.09

 

 

$

0.07

 

 

$

0.22

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

Six Months Ended

 

June 30, 2020

 

June 30, 2019

GAAP gross profit

$

63,505

 

 

$

89,157

 

Stock-based compensation

274

 

 

277

 

Performance based equity

178

 

 

73

 

Amortization of purchased intangible assets

17,162

 

 

16,902

 

Non-GAAP gross profit

81,119

 

 

106,409

 

 

 

 

 

GAAP R&D expenses

53,673

 

 

51,703

 

Stock-based compensation

(8,786

)

 

(8,435

)

Performance based equity

(3,804

)

 

(925

)

Depreciation of fixed asset step-up

 

 

(6

)

Non-GAAP R&D expenses

41,083

 

 

42,337

 

 

 

 

 

GAAP SG&A expenses

52,102

 

 

45,918

 

Stock-based compensation

(9,853

)

 

(7,227

)

Performance based equity

(2,280

)

 

(939

)

Amortization of purchased intangible assets

(11,272

)

 

(11,590

)

Acquisition costs

(5,360

)

 

 

IP litigation costs, net

(114

)

 

(13

)

Non-GAAP SG&A expenses

23,223

 

 

26,149

 

 

 

 

 

GAAP impairment losses

86

 

 

 

Impairment losses

(86

)

 

 

Non-GAAP impairment losses

 

 

 

 

 

 

 

GAAP restructuring expenses

553

 

 

2,333

 

Restructuring charges

(553

)

 

(2,333

)

Non-GAAP restructuring expenses

 

 

 

 

 

 

 

GAAP loss from operations

(42,909

)

 

(10,797

)

Total non-GAAP adjustments

59,722

 

 

48,720

 

Non-GAAP income from operations

16,813

 

 

37,923

 

 

 

 

 

GAAP and non-GAAP interest and other income (expense), net

(4,304

)

 

(6,158

)

 

 

 

 

GAAP loss before income taxes

(47,213

)

 

(16,955

)

Total non-GAAP adjustments

59,722

 

 

48,720

 

Non-GAAP income before income taxes

12,509

 

 

31,765

 

 

 

 

 

GAAP income tax benefit

(9,937

)

 

(9,875

)

Adjustment for non-cash tax benefits/expenses

10,688

 

 

12,099

 

Non-GAAP income tax provision

751

 

 

2,224

 

 

 

 

 

GAAP net loss

(37,276

)

 

(7,080

)

Total non-GAAP adjustments before income taxes

59,722

 

 

48,720

 

Less: total tax adjustments

10,688

 

 

12,099

 

Non-GAAP net income

$

11,758

 

 

$

29,541

 

 

 

 

 

Shares used in computing non-GAAP basic net income per share

72,389

 

 

70,445

 

Shares used in computing non-GAAP diluted net income per share

73,223

 

 

72,147

 

Non-GAAP basic net income per share

$

0.16

 

 

$

0.42

 

Non-GAAP diluted net income per share

$

0.16

 

 

$

0.41

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

Three Months Ended

 

June 30, 2020

 

March 31, 2020

 

June 30, 2019

GAAP gross profit

50.2

%

 

49.6

%

 

53.4

%

Stock-based compensation

0.2

%

 

0.2

%

 

0.2

%

Performance based equity

0.2

%

 

0.1

%

 

%

Amortization of purchased intangible assets

13.2

%

 

13.8

%

 

10.3

%

Non-GAAP gross profit

63.7

%

 

63.8

%

 

63.9

%

 

 

 

 

 

 

GAAP R&D expenses

42.9

%

 

41.4

%

 

29.5

%

Stock-based compensation

(7.7

)%

 

(6.0

)%

 

(5.1

)%

Performance based equity

(3.1

)%

 

(2.8

)%

 

%

Non-GAAP R&D expenses

32.0

%

 

32.6

%

 

24.3

%

 

 

 

 

 

 

GAAP SG&A expenses

42.1

%

 

39.7

%

 

27.1

%

Stock-based compensation

(10.6

)%

 

(4.7

)%

 

(4.6

)%

Performance based equity

(1.8

)%

 

(1.8

)%

 

%

Amortization of purchased intangible assets

(8.5

)%

 

(9.2

)%

 

(7.0

)%

Acquisition costs

(3.2

)%

 

(5.3

)%

 

%

IP litigation costs, net

(0.1

)%

 

(0.1

)%

 

%

Non-GAAP SG&A expenses

18.0

%

 

18.6

%

 

15.4

%

 

 

 

 

 

 

GAAP impairment losses

%

 

0.1

%

 

%

Impairment losses

%

 

(0.1

)%

 

%

Non-GAAP impairment losses

%

 

%

 

%

 

 

 

 

 

 

GAAP restructuring expenses

0.1

%

 

0.8

%

 

0.5

%

Restructuring charges

(0.1

)%

 

(0.8

)%

 

(0.5

)%

Non-GAAP restructuring expenses

%

 

%

 

%

 

 

 

 

 

 

GAAP loss from operations

(34.9

)%

 

(32.5

)%

 

(3.6

)%

Total non-GAAP adjustments

48.7

%

 

45.1

%

 

27.7

%

Non-GAAP income from operations

13.7

%

 

12.7

%

 

24.1

%

 

 

 

 

 

 

GAAP interest and other income (expense), net

(3.4

)%

 

(3.3

)%

 

(3.2

)%

 

 

 

 

 

 

GAAP loss before income taxes

(38.3

)%

 

(35.8

)%

 

(6.8

)%

Total non-GAAP adjustments before income taxes

48.7

%

 

45.1

%

 

27.7

%

Non-GAAP income before income taxes

10.3

%

 

9.3

%

 

20.9

%

 

 

 

 

 

 

GAAP income tax benefit

(4.9

)%

 

(10.9

)%

 

(4.1

)%

Adjustment for non-cash tax benefits/expenses

5.5

%

 

11.4

%

 

5.6

%

Non-GAAP income tax provision

0.6

%

 

0.6

%

 

1.5

%

 

 

 

 

 

 

GAAP net loss

(33.4

)%

 

(24.9

)%

 

(2.7

)%

Total non-GAAP adjustments before income taxes

48.7

%

 

45.1

%

 

27.7

%

Less: total tax adjustments

5.5

%

 

11.4

%

 

5.6

%

Non-GAAP net income

9.7

%

 

8.8

%

 

19.4

%

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

Six Months Ended

 

June 30, 2020

 

June 30, 2019

GAAP gross profit

49.9

%

 

53.3

%

Stock-based compensation

0.2

%

 

0.2

%

Performance based equity

0.1

%

 

0.0

%

Amortization of purchased intangible assets

13.5

%

 

10.1

%

Non-GAAP gross profit

63.7

%

 

63.7

%

 

 

 

 

GAAP R&D expenses

42.2

%

 

30.9

%

Stock-based compensation

(6.9

)%

 

(5.0

)%

Performance based equity

(3.0

)%

 

(0.6

)%

Depreciation of fixed asset step-up

%

 

%

Non-GAAP R&D expenses

32.3

%

 

25.3

%

 

 

 

 

GAAP SG&A expenses

40.9

%

 

27.5

%

Stock-based compensation

(7.7

)%

 

(4.3

)%

Performance based equity

(1.8

)%

 

(0.6

)%

Amortization of purchased intangible assets

(8.9

)%

 

(6.9

)%

Acquisition costs

(4.2

)%

 

%

IP litigation costs, net

(0.1

)%

 

%

Non-GAAP SG&A expenses

18.3

%

 

15.6

%

 

 

 

 

GAAP impairment losses

0.1

%

 

%

Impairment losses

(0.1

)%

 

%

Non-GAAP impairment losses

%

 

%

 

 

 

 

GAAP restructuring expenses

0.4

%

 

1.4

%

Restructuring charges

(0.4

)%

 

(1.4

)%

Non-GAAP restructuring expenses

%

 

%

 

 

 

 

GAAP loss from operations

(33.7

)%

 

(6.5

)%

Total non-GAAP adjustments

46.9

%

 

29.1

%

Non-GAAP income from operations

13.2

%

 

22.7

%

 

 

 

 

GAAP interest and other income (expense), net

(3.4

)%

 

(3.7

)%

 

 

 

 

GAAP loss before income taxes

(37.1

)%

 

(10.1

)%

Total non-GAAP adjustments before income taxes

46.9

%

 

29.1

%

Non-GAAP income before income taxes

9.8

%

 

19.0

%

 

 

 

 

GAAP income tax benefit

(7.8

)%

 

(5.9

)%

Adjustment for non-cash tax benefits/expenses

8.4

%

 

7.2

%

Non-GAAP income tax provision

0.6

%

 

1.3

%

 

 

 

 

GAAP net loss

(29.3

)%

 

(4.2

)%

Total non-GAAP adjustments before income taxes

46.9

%

 

29.1

%

Less: total tax adjustments

8.4

%

 

7.2

%

Non-GAAP net income

9.2

%

 

17.7

%





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