MaxLinear, Inc. Announces Fourth Quarter 2020 Financial Results

Due to additional work and procedures arising from the significance of our recent acquisitions, the annual audit of our consolidated financial statements by our independent registered public accounting firm is not yet complete, and final adjustments may arise between now and the time our financial results for the year ended December 31, 2020 are filed with our Annual Report on Form 10-K. For additional information, you should carefully review our audited consolidated financial statements for the year ended December 31, 2020 once they become available in the Form 10-K.

In addition to these risks and uncertainties, investors should review the risks and uncertainties contained in our filings with the Securities and Exchange Commission (SEC), including our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, and our Current Reports on Form 8-K, as well as the information to be set forth under the caption “Risk Factors” in MaxLinear’s Annual Report on Form 10-K for the year ended December 31, 2020, which we expect to file soon. All forward-looking statements are based on the estimates, projections and assumptions of management as of February 3, 2021, and MaxLinear is under no obligation (and expressly disclaims any such obligation) to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

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 inventory fair value adjustments; (v) amortization of purchased intangible assets; (vi) depreciation of fixed asset fair value adjustments; (vii) acquisition and integration costs related to our acquisitions; (viii) professional fees and settlement costs related to IP and commercial litigation matters; (ix) severance and other restructuring charges; (x) impairment losses on intangible assets; (xi) other non-recurring interest and other income (expenses), net attributable to acquisitions and (xii) 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 inventory fair value adjustments, amortization of purchased intangible assets, depreciation of fixed asset fair value adjustments, acquisition and integration costs primarily consisting of professional and consulting fees, amortization of discount on deferred purchase price payments to interest expense, and non-recurring gain on reversal of liability for an assumed indemnification obligation in 2019.

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 impairment of leased right-of-use assets or from 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 first quarter 2021.

About MaxLinear, Inc.

MaxLinear, Inc. (NYSE: MXL) is a leading provider of radio frequency (RF), analog, digital and mixed-signal integrated circuits for access and connectivity, 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

 

December 31, 2020

 

September 30, 2020

 

December 31, 2019

Net revenue

$

194,716

 

 

$

156,633

 

 

$

70,018

 

Cost of net revenue

111,629

 

 

90,427

 

 

33,394

 

Gross profit

83,087

 

 

66,206

 

 

36,624

 

Operating expenses:

 

 

 

 

 

Research and development

70,504

 

 

55,816

 

 

23,467

 

Selling, general and administrative

36,238

 

 

41,685

 

 

20,924

 

Restructuring charges

 

 

3,280

 

 

159

 

Total operating expenses

106,742

 

 

100,781

 

 

44,550

 

Loss from operations

(23,655

)

 

(34,575

)

 

(7,926

)

Interest income

126

 

 

27

 

 

222

 

Interest expense

(4,724

)

 

(3,569

)

 

(2,587

)

Other income (expense), net

(550

)

 

(719

)

 

(498

)

Total interest and other income (expense), net

(5,148

)

 

(4,261

)

 

(2,863

)

Loss before income taxes

(28,803

)

 

(38,836

)

 

(10,789

)

Income tax benefit

(4,131

)

 

(2,191

)

 

(2,685

)

Net loss

$

(24,672

)

 

$

(36,645

)

 

$

(8,104

)

Net loss per share:

 

 

 

 

 

Basic

$

(0.33

)

 

$

(0.50

)

 

$

(0.11

)

Diluted

$

(0.33

)

 

$

(0.50

)

 

$

(0.11

)

Shares used to compute net loss per share:

 

 

 

 

 

Basic

74,335

 

 

73,402

 

 

71,746

 

Diluted

74,335

 

 

73,402

 

 

71,746

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

Year Ended

 

December 31, 2020

 

December 31, 2019

Net revenue

$

478,596

 

 

 

$

317,180

 

 

Cost of net revenue

265,798

 

 

 

149,495

 

 

Gross profit

212,798

 

 

 

167,685

 

 

Operating expenses:

 

 

 

Research and development

179,993

 

 

 

98,344

 

 

Selling, general and administrative

130,025

 

 

 

88,762

 

 

Impairment losses

86

 

 

 

 

 

Restructuring charges

3,833

 

 

 

2,636

 

 

Total operating expenses

313,937

 

 

 

189,742

 

 

Loss from operations

(101,139

)

 

 

(22,057

)

 

Interest income

409

 

 

 

775

 

 

Interest expense

(12,952

)

 

 

(11,133

)

 

Other income (expense), net

(1,170

)

 

 

(69

)

 

Total interest and other income (expense), net

(13,713

)

 

 

(10,427

)

 

Loss before income taxes

(114,852

)

 

 

(32,484

)

 

Income tax benefit

(16,259

)

 

 

(12,586

)

 

Net loss

$

(98,593

)

 

 

$

(19,898

)

 

Net loss per share:

 

 

 

Basic

$

(1.35

)

 

 

$

(0.28

)

 

Diluted

$

(1.35

)

 

 

$

(0.28

)

 

Shares used to compute net loss per share:

 

 

 

Basic

73,133

 

 

 

71,005

 

 

Diluted

73,133

 

 

 

71,005

 

 

 

 

 

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

Three Months Ended

 

December 31, 2020

 

September 30, 2020

 

December 31, 2019

Operating Activities

 

 

 

 

 

Net loss

$

(24,672

)

 

 

$

(36,645

)

 

 

$

(8,104

)

 

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

Amortization and depreciation

22,694

 

 

 

20,554

 

 

 

16,473

 

 

Amortization of inventory fair value adjustments

18,500

 

 

 

14,445

 

 

 

 

 

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

815

 

 

 

579

 

 

 

404

 

 

Stock-based compensation

14,540

 

 

 

14,145

 

 

 

7,747

 

 

Deferred income taxes

(13,235

)

 

 

3,834

 

 

 

(3,238

)

 

Impairment of leasehold improvements

 

 

 

156

 

 

 

 

 

Impairment of leased right-of-use assets

 

 

 

1,464

 

 

 

7,058

 

 

Gain on extinguishment of lease liabilities

 

 

 

 

 

 

(7,557

)

 

Loss on foreign currency and other

914

 

 

 

601

 

 

 

430

 

 

Excess tax benefits on stock based awards

(147

)

 

 

(152

)

 

 

(192

)

 

Changes in operating assets and liabilities, net of effects of acquisitions:

 

 

 

 

 

Accounts receivable

37,736

 

 

 

(63,569

)

 

 

5,930

 

 

Inventory

(11,657

)

 

 

(17,349

)

 

 

6,224

 

 

Prepaid expenses and other assets

(4,597

)

 

 

(35,131

)

 

 

2,889

 

 

Leased right-of-use assets

36

 

 

 

79

 

 

 

109

 

 

Accounts payable, accrued expenses and other current liabilities

(10,099

)

 

 

61,958

 

 

 

2,692

 

 

Accrued compensation

9,485

 

 

 

15,364

 

 

 

607

 

 

Accrued price protection liability

29,280

 

 

 

12,108

 

 

 

(1,097

)

 

Lease liabilities

(2,111

)

 

 

(1,566

)

 

 

(1,655

)

 

Other long-term liabilities

6,787

 

 

 

(7,459

)

 

 

(613

)

 

Net cash provided by (used in) operating activities

74,269

 

 

 

(16,584

)

 

 

28,107

 

 

Investing Activities

 

 

 

 

 

Purchases of property and equipment

(2,355

)

 

 

(5,196

)

 

 

(2,989

)

 

Purchases of intangible assets

(2,411

)

 

 

(375

)

 

 

 

 

Cash used in acquisitions, net of cash acquired

 

 

 

(160,000

)

 

 

 

 

Net cash used in investing activities

(4,766

)

 

 

(165,571

)

 

 

(2,989

)

 

Financing Activities

 

 

 

 

 

Proceeds from the issuance of debt

 

 

 

175,000

 

 

 

 

 

Payment of debt issuance cost

 

 

 

(2,696

)

 

 

 

 

Repayment of debt

(17,188

)

 

 

 

 

 

 

 

Net proceeds from issuance of common stock

2,798

 

 

 

628

 

 

 

2,382

 

 

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

(643

)

 

 

(1,393

)

 

 

(820

)

 

Net cash provided by (used in) financing activities

(15,033

)

 

 

171,539

 

 

 

1,562

 

 

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

(1,178

)

 

 

(71

)

 

 

(87

)

 

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

53,292

 

 

 

(10,687

)

 

 

26,593

 

 

Cash, cash equivalents and restricted cash at beginning of period

96,742

 

 

 

107,429

 

 

 

66,524

 

 

Cash, cash equivalents and restricted cash at end of period

$

150,034

 

 

 

$

96,742

 

 

 

$

93,117

 

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

Year ended

 

December 31, 2020

 

December 31, 2019

Operating Activities

 

 

 

Net loss

$

(98,593

)

 

 

$

(19,898

)

 

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

 

 

 

Amortization and depreciation

76,513

 

 

 

66,401

 

 

Impairment losses

86

 

 

 

 

 

Amortization of inventory fair value adjustments

32,945

 

 

 

 

 

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

2,201

 

 

 

1,577

 

 

Stock-based compensation

47,597

 

 

 

32,060

 

 

Deferred income taxes

(18,488

)

 

 

(15,693

)

 

Loss on disposal of property and equipment

 

 

 

46

 

 

Impairment of leasehold improvements

319

 

 

 

1,442

 

 

Impairment of leased right-of-use assets

1,508

 

 

 

9,240

 

 

Gain on extinguishment of lease liabilities

 

 

 

(10,437

)

 

Loss on foreign currency

1,289

 

 

 

760

 

 

Excess tax benefits on stock-based awards

(677

)

 

 

(4,064

)

 

Changes in operating assets and liabilities, net of effects of acquisitions:

 

 

 

Accounts receivable

(16,856

)

 

 

9,090

 

 

Inventory

(31,837

)

 

 

10,195

 

 

Prepaid expenses and other assets

(38,954

)

 

 

3,805

 

 

Leased right-of-use assets

441

 

 

 

3,044

 

 

Accounts payable, accrued expenses and other current liabilities

57,094

 

 

 

1,261

 

 

Accrued compensation

32,606

 

 

 

2,021

 

 

Accrued price protection liability

34,719

 

 

 

(3,966

)

 

Lease liabilities

(6,386

)

 

 

(8,142

)

 

Other long-term liabilities

(1,934

)

 

 

(394

)

 

Net cash provided by operating activities

73,593

 

 

 

78,348

 

 

Investing Activities

 

 

 

Purchases of property and equipment

(12,487

)

 

 

(6,887

)

 

Purchases of intangible assets

(2,799

)

 

 

(86

)

 

Cash used in acquisitions, net of cash acquired

(160,000

)

 

 

 

 

Net cash used in investing activities

(175,286

)

 

 

(6,973

)

 

Financing Activities

 

 

 

Proceeds from the issuance of debt

175,000

 

 

 

 

 

Payment of debt issuance cost

(2,696

)

 

 

 

 

Repayment of debt

(17,188

)

 

 

(50,000

)

 

Net proceeds from issuance of common stock

8,068

 

 

 

8,603

 

 

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

(3,535

)

 

 

(11,986

)

 

Net cash provided by (used in) financing activities

159,649

 

 

 

(53,383

)

 

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

(1,039

)

 

 

934

 

 

Increase in cash, cash equivalents and restricted cash

56,917

 

 

 

18,926

 

 

Cash, cash equivalents and restricted cash at beginning of period

93,117

 

 

 

74,191

 

 

Cash, cash equivalents and restricted cash at end of period

$

150,034

 

 

 

$

93,117

 

 

 

 

 

 

 

 

 

 

MAXLINEAR, INC.

UNAUDITED GAAP CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

December 31, 2020

 

September 30, 2020

 

December 31, 2019

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

148,901

 

 

$

96,570

 

 

$

92,708

 

Short-term restricted cash

115

 

 

111

 

 

349

 

Accounts receivable, net

67,442

 

 

105,355

 

 

50,411

 

Inventory

97,839

 

 

104,471

 

 

31,510

 

Prepaid expenses and other current assets

47,421

 

 

43,546

 

 

6,792

 

Total current assets

361,718

 

 

350,053

 

 

181,770

 

Long-term restricted cash

1,018

 

 

61

 

 

60

 

Property and equipment, net

39,470

 

 

37,258

 

 

16,613

 

Leased right-of-use assets

21,886

 

 

11,876

 

 

10,978

 

Intangible assets, net

207,266

 

 

232,148

 

 

187,971

 

Goodwill

302,828

 

 

302,576

 

 

238,330

 

Deferred tax assets

86,065

 

 

72,537

 

 

67,284

 

Other long-term assets

2,191

 

 

1,270

 

 

2,785

 

Total assets

$

1,022,442

 

 

$

1,007,779

 

 

$

705,791

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities

$

233,661

 

 

$

211,374

 

 

$

66,562

 

Long-term lease liabilities

20,862

 

 

9,406

 

 

9,335

 

Long-term debt

363,592

 

 

372,457

 

 

206,909

 

Other long-term liabilities

13,210

 

 

17,734

 

 

8,065

 

Stockholders’ equity

391,117

 

 

396,808

 

 

414,920

 

Total liabilities and stockholders’ equity

$

1,022,442

 

 

$

1,007,779

 

 

$

705,791

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

Three Months Ended

 

December 31, 2020

 

September 30, 2020

 

December 31, 2019

GAAP gross profit

$

83,087

 

 

 

$

66,206

 

 

 

$

36,624

 

 

Stock-based compensation

160

 

 

 

143

 

 

 

149

 

 

Performance based equity

124

 

 

 

180

 

 

 

(21

)

 

Amortization of inventory fair value adjustments

18,500

 

 

 

14,445

 

 

 

 

 

Amortization of purchased intangible assets

10,667

 

 

 

9,901

 

 

 

8,513

 

 

Non-GAAP gross profit

112,538

 

 

 

90,875

 

 

 

45,265

 

 

 

 

 

 

 

 

GAAP R&D expenses

70,504

 

 

 

55,816

 

 

 

23,467

 

 

Stock-based compensation

(7,410

)

 

 

(6,056

)

 

 

(3,955

)

 

Performance based equity

(6,124

)

 

 

(6,190

)

 

 

(421

)

 

Non-GAAP R&D expenses

56,970

 

 

 

43,570

 

 

 

19,091

 

 

 

 

 

 

 

 

GAAP SG&A expenses

36,238

 

 

 

41,685

 

 

 

20,924

 

 

Stock-based compensation

(6,970

)

 

 

(7,349

)

 

 

(3,643

)

 

Performance based equity

(2,991

)

 

 

(2,991

)

 

 

(604

)

 

Amortization of purchased intangible assets

(6,200

)

 

 

(6,057

)

 

 

(5,723

)

 

Acquisition and integration costs

(1,200

)

 

 

(7,762

)

 

 

 

 

IP litigation costs, net

(32

)

 

 

(35

)

 

 

3

 

 

Non-GAAP SG&A expenses

18,845

 

 

 

17,491

 

 

 

10,957

 

 

 

 

 

 

 

 

GAAP restructuring expenses

 

 

 

3,280

 

 

 

159

 

 

Restructuring charges

 

 

 

(3,280

)

 

 

(159

)

 

Non-GAAP restructuring expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP loss from operations

(23,655

)

 

 

(34,575

)

 

 

(7,926

)

 

Total non-GAAP adjustments

60,378

 

 

 

64,389

 

 

 

23,143

 

 

Non-GAAP income from operations

36,723

 

 

 

29,814

 

 

 

15,217

 

 

 

 

 

 

 

 

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

(5,148

)

 

 

(4,261

)

 

 

(2,863

)

 

Non-recurring interest and other income (expense), net

384

 

 

 

 

 

 

 

 

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

(4,764

)

 

 

(4,261

)

 

 

(2,863

)

 

 

 

 

 

 

 

GAAP loss before income taxes

(28,803

)

 

 

(38,836

)

 

 

(10,789

)

 

Total non-GAAP adjustments

60,762

 

 

 

64,389

 

 

 

23,143

 

 

Non-GAAP income before income taxes

31,959

 

 

 

25,553

 

 

 

12,354

 

 

 

 

 

 

 

 

GAAP income tax benefit

(4,131

)

 

 

(2,191

)

 

 

(2,685

)

 

Adjustment for non-cash tax benefits/expenses

6,048

 

 

 

3,724

 

 

 

3,303

 

 

Non-GAAP income tax provision

1,917

 

 

 

1,533

 

 

 

618

 

 

 

 

 

 

 

 

GAAP net loss

(24,672

)

 

 

(36,645

)

 

 

(8,104

)

 

Total non-GAAP adjustments before income taxes

60,762

 

 

 

64,389

 

 

 

23,143

 

 

Less: total tax adjustments

6,048

 

 

 

3,724

 

 

 

3,303

 

 

Non-GAAP net income

$

30,042

 

 

 

$

24,020

 

 

 

$

11,736

 

 

 

 

 

 

 

 

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

74,335

 

 

 

73,402

 

 

 

71,746

 

 

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

77,926

 

 

 

75,324

 

 

 

72,707

 

 

Non-GAAP basic net income per share

$

0.40

 

 

 

$

0.33

 

 

 

$

0.16

 

 

Non-GAAP diluted net income per share

$

0.39

 

 

 

$

0.32

 

 

 

$

0.16

 

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

Year Ended

 

December 31, 2020

 

December 31, 2019

GAAP gross profit

$

212,798

 

 

 

$

167,685

 

 

Stock-based compensation

577

 

 

 

577

 

 

Performance based equity

482

 

 

 

52

 

 

Amortization of inventory fair value adjustments

32,945

 

 

 

 

 

Amortization of purchased intangible assets

37,730

 

 

 

33,892

 

 

Non-GAAP gross profit

284,532

 

 

 

202,206

 

 

 

 

 

 

GAAP R&D expenses

179,993

 

 

 

98,344

 

 

Stock-based compensation

(22,252

)

 

 

(16,545

)

 

Performance based equity

(16,118

)

 

 

(1,391

)

 

Depreciation of fixed asset fair value adjustments

 

 

 

(6

)

 

Non-GAAP R&D expenses

141,623

 

 

 

80,402

 

 

 

 

 

 

GAAP SG&A expenses

130,025

 

 

 

88,762

 

 

Stock-based compensation

(24,172

)

 

 

(14,938

)

 

Performance based equity

(8,262

)

 

 

(1,822

)

 

Amortization of purchased intangible assets

(23,529

)

 

 

(23,035

)

 

Acquisition and integration costs

(14,322

)

 

 

 

 

IP litigation costs, net

(181

)

 

 

(81

)

 

Non-GAAP SG&A expenses

59,559

 

 

 

48,886

 

 

 

 

 

 

GAAP impairment losses

86

 

 

 

 

 

Impairment losses

(86

)

 

 

 

 

Non-GAAP impairment losses

 

 

 

 

 

 

 

 

 

GAAP restructuring expenses

3,833

 

 

 

2,636

 

 

Restructuring charges

(3,833

)

 

 

(2,636

)

 

Non-GAAP restructuring expenses

 

 

 

 

 

 

 

 

 

GAAP loss from operations

(101,139

)

 

 

(22,057

)

 

Total non-GAAP adjustments

184,489

 

 

 

94,975

 

 

Non-GAAP income from operations

83,350

 

 

 

72,918

 

 

 

 

 

 

GAAP interest and other income (expense), net

(13,713

)

 

 

(10,427

)

 

Non-recurring interest and other income (expense), net

384

 

 

 

(1,006

)

 

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

(13,329

)

 

 

(11,433

)

 

 

 

 

 

GAAP loss before income taxes

(114,852

)

 

 

(32,484

)

 

Total non-GAAP adjustments

184,873

 

 

 

93,969

 

 

Non-GAAP income before income taxes

70,021

 

 

 

61,485

 

 

 

 

 

 

GAAP income tax benefit

(16,259

)

 

 

(12,586

)

 

Adjustment for non-cash tax benefits/expenses

20,460

 

 

 

16,296

 

 

Non-GAAP income tax provision

4,201

 

 

 

3,710

 

 

 

 

 

 

GAAP net loss

(98,593

)

 

 

(19,898

)

 

Total non-GAAP adjustments before income taxes

184,873

 

 

 

93,969

 

 

Less: total tax adjustments

20,460

 

 

 

16,296

 

 

Non-GAAP net income

$

65,820

 

 

 

$

57,775

 

 

 

 

 

 

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

73,133

 

 

 

71,005

 

 

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

74,928

 

 

 

72,381

 

 

Non-GAAP basic net income per share

$

0.90

 

 

 

$

0.81

 

 

Non-GAAP diluted net income per share

$

0.88

 

 

 

$

0.80

 

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

Three Months Ended

 

December 31, 2020

 

September 30, 2020

 

December 31, 2019

GAAP gross profit

42.7

%

 

42.3

%

 

52.3

%

Stock-based compensation

0.1

%

 

0.1

%

 

0.2

%

Performance based equity

0.1

%

 

0.1

%

 

%

Amortization of inventory fair value adjustments

9.5

%

 

9.2

%

 

%

Amortization of purchased intangible assets

5.5

%

 

6.3

%

 

12.2

%

Non-GAAP gross profit

57.8

%

 

58.0

%

 

64.6

%

 

 

 

 

 

 

GAAP R&D expenses

36.2

%

 

35.6

%

 

33.5

%

Stock-based compensation

(3.8

)%

 

(3.9

)%

 

(5.7

)%

Performance based equity

(3.1

)%

 

(4.0

)%

 

(0.6

)%

Non-GAAP R&D expenses

29.3

%

 

27.8

%

 

27.3

%

 

 

 

 

 

 

GAAP SG&A expenses

18.6

%

 

26.6

%

 

29.9

%

Stock-based compensation

(3.6

)%

 

(4.7

)%

 

(5.2

)%

Performance based equity

(1.5

)%

 

(1.9

)%

 

(0.9

)%

Amortization of purchased intangible assets

(3.2

)%

 

(3.9

)%

 

(8.2

)%

Acquisition and integration costs

(0.6

)%

 

(5.0

)%

 

%

IP litigation costs, net

%

 

%

 

%

Non-GAAP SG&A expenses

9.7

%

 

11.2

%

 

15.7

%

 

 

 

 

 

 

GAAP restructuring expenses

%

 

2.1

%

 

0.2

%

Restructuring charges

%

 

(2.1

)%

 

(0.2

)%

Non-GAAP restructuring expenses

%

 

%

 

%

 

 

 

 

 

 

GAAP loss from operations

(12.2

)%

 

(22.1

)%

 

(11.3

)%

Total non-GAAP adjustments

31.0

%

 

41.1

%

 

33.1

%

Non-GAAP income from operations

18.9

%

 

19.0

%

 

21.7

%

 

 

 

 

 

 

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

(2.6

)%

 

(2.7

)%

 

(4.1

)%

Non-recurring interest and other income (expense), net

0.2

%

 

%

 

%

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

(2.4

)%

 

(2.7

)%

 

(4.1

)%

 

 

 

 

 

 

GAAP loss before income taxes

(14.8

)%

 

(24.8

)%

 

(15.4

)%

Total non-GAAP adjustments before income taxes

31.2

%

 

41.1

%

 

33.1

%

Non-GAAP income before income taxes

16.4

%

 

16.3

%

 

17.6

%

 

 

 

 

 

 

GAAP income tax benefit

(2.1

)%

 

(1.4

)%

 

(3.8

)%

Adjustment for non-cash tax benefits/expenses

3.1

%

 

2.4

%

 

4.7

%

Non-GAAP income tax provision

1.0

%

 

1.0

%

 

0.9

%

 

 

 

 

 

 

GAAP net loss

(12.7

)%

 

(23.4

)%

 

(11.6

)%

Total non-GAAP adjustments before income taxes

31.2

%

 

41.1

%

 

33.1

%

Less: total tax adjustments

3.1

%

 

2.4

%

 

4.7

%

Non-GAAP net income

15.4

%

 

15.3

%

 

16.8

%

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

Year Ended

 

December 31, 2020

 

December 31, 2019

GAAP gross profit

44.5

%

 

52.9

%

Stock-based compensation

0.1

%

 

0.2

%

Performance based equity

0.1

%

 

0.0

%

Amortization of inventory fair value adjustments

6.9

%

 

0.0

%

Amortization of purchased intangible assets

7.9

%

 

10.7

%

Non-GAAP gross profit

59.5

%

 

63.8

%

 

 

 

 

GAAP R&D expenses

37.6

%

 

31.0

%

Stock-based compensation

(4.7

)%

 

(5.2

)%

Performance based equity

(3.4

)%

 

(0.4

)%

Depreciation of fixed asset fair value adjustments

%

 

%

Non-GAAP R&D expenses

29.6

%

 

25.4

%

 

 

 

 

GAAP SG&A expenses

27.2

%

 

28.0

%

Stock-based compensation

(5.1

)%

 

(4.7

)%

Performance based equity

(1.7

)%

 

(0.6

)%

Amortization of purchased intangible assets

(4.9

)%

 

(7.3

)%

Acquisition and integration costs

(3.0

)%

 

%

IP litigation costs, net

(0.0

)%

 

%

Non-GAAP SG&A expenses

12.4

%

 

15.4

%

 

 

 

 

GAAP impairment losses

0.02

%

 

%

Impairment losses

(0.02

)%

 

%

Non-GAAP impairment losses

%

 

%

 

 

 

 

GAAP restructuring expenses

0.8

%

 

0.8

%

Restructuring charges

(0.8

)%

 

(0.8

)%

Non-GAAP restructuring expenses

%

 

%

 

 

 

 

GAAP loss from operations

(21.1

)%

 

(7.0

)%

Total non-GAAP adjustments

38.6

%

 

29.9

%

Non-GAAP income from operations

17.4

%

 

23.0

%

 

 

 

 

GAAP interest and other income (expense), net

(2.9

)%

 

(3.3

)%

Non-recurring interest and other income (expense), net

0.1

%

 

(0.3

)%

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

(2.8

)%

 

(3.6

)%

 

 

 

 

GAAP loss before income taxes

(24.0

)%

 

(10.2

)%

Total non-GAAP adjustments before income taxes

38.6

%

 

29.6

%

Non-GAAP income before income taxes

14.6

%

 

19.4

%

 

 

 

 

GAAP income tax benefit

(3.4

)%

 

(4.0

)%

Adjustment for non-cash tax benefits/expenses

4.3

%

 

5.1

%

Non-GAAP income tax provision

0.9

%

 

1.2

%

 

 

 

 

GAAP net loss

(20.6

)%

 

(6.3

)%

Total non-GAAP adjustments before income taxes

38.6

%

 

29.6

%

Less: total tax adjustments

4.3

%

 

5.1

%

Non-GAAP net income

13.8

%

 

18.2

%





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