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MaxLinear, Inc. Announces Third Quarter 2023 Financial Results

  •  Net revenue of $135.5 million in Q3, GAAP gross margin of 54.6% and non-GAAP gross margin of 60.8%
  • Infrastructure revenue was $50.0 million in Q3, up 1% sequentially and up 40% YoY

MaxLinear, Inc. (Nasdaq: MXL), a leading provider of radio frequency (RF), analog, digital and mixed-signal integrated circuits, today announced financial results for the third quarter ended September 30, 2023.

Third Quarter Financial Highlights

GAAP basis:

  • Net revenue was $135.5 million, down 26% sequentially and down 53% year-over-year.
  • GAAP gross margin was 54.6%, compared to 55.9% in the prior quarter, and 58.6% in the year-ago quarter.
  • GAAP operating expenses were $91.8 million in the third quarter 2023, or 68% of net revenue, compared to $108.8 million in the prior quarter, or 59% of net revenue, and $115.5 million in the year-ago quarter, or 40% of net revenue.
  • GAAP loss from operations was 13% of net revenue, compared to loss from operations of 3% of net revenue in the prior quarter, and income from operations of 18% of net revenue in the year-ago quarter.
  • Net cash flow used in operating activities was $12.8 million, compared to net cash flow provided by operating activities of $30.6 million in the prior quarter, and net cash flow provided by operating activities of $61.8 million in the year-ago quarter.
  • GAAP diluted loss per share was $0.49, compared to diluted loss per share of $0.05 in the prior quarter, and diluted earnings per share of $0.35 in the year-ago quarter.

Non-GAAP basis:

  • Non-GAAP gross margin was 60.8%. This compares to 61.0% in the prior quarter, and 62.0% in the year-ago quarter.
  • Non-GAAP operating expenses were $75.1 million, or 55% of net revenue, compared to $82.5 million or 45% of net revenue in the prior quarter, and $80.4 million or 28% of net revenue in the year-ago quarter.
  • Non-GAAP income from operations was 5% of net revenue, compared to 16% in the prior quarter, and 34% in the year-ago quarter.
  • Non-GAAP diluted earnings per share was $0.02, compared to $0.34 in the prior quarter, and $1.05 in the year-ago quarter.

Management Commentary

“In the third quarter, we delivered $135.5 million in revenues. Our infrastructure category was up 1% sequentially and 40% year over year, primarily driven by the expanding roll-out of multi-band millimeter wave and microwave 5G wireless backhaul platform solutions.

“Even as we navigate a challenging demand environment with fiscal discipline and operational efficiency, our solid execution and innovative product offerings are enabling us to maximize strategic business opportunities across all our end markets. In 2023, we continue to lay important groundwork in Wi-Fi, ethernet, fiber broadband access gateways, and wireless and optical datacenter network infrastructure, which will be the foundation for potential future growth,” commented Kishore Seendripu, Ph.D., Chairman and CEO.

Fourth Quarter 2023 Business Outlook

The company expects net revenue in the fourth quarter of 2023 to be approximately $115 million to $135 million. The Company also estimates the following:

  • GAAP gross margin of approximately 52.5% to 55.5%;
  • Non-GAAP gross margin of approximately 59.5% to 62.5%;
  • GAAP operating expenses of approximately $125 million to $135 million;
  • Non-GAAP operating expenses of approximately $72 million to $78 million;
  • GAAP and non-GAAP interest and other expenses are expected to be negligible; and
  • GAAP and non-GAAP diluted share count of 82.5 million to 83.5 million each.

Webcast and Conference Call

MaxLinear will host its third quarter financial results conference call today, October 25, 2023 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). To access this call, dial US toll free: 1-877-407-3109 / International: 1-201-493-6798. A live webcast of the conference call will be accessible from the investor relations section of the MaxLinear website at https://investors.maxlinear.com, and will be archived and available after the call at https://investors.maxlinear.com until November 8, 2023. A replay of the conference call will also be available until November 8, 2023 by dialing US toll free: 1-877-660-6853 / International: 1-201-612-7415 and Conference ID#: 13741910.

Cautionary Note Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others, statements concerning our future financial performance (including specifically our current guidance for fourth quarter 2023 net revenue, and GAAP and non-GAAP amounts for each of the following: gross margins, operating expenses, interest and other expenses, and diluted share counts; statements regarding our potential growth, including potential growth and demand environment, including potential growth opportunities of our product portfolio and target markets including Wi-Fi, ethernet, fiber access, wireless and optical infrastructure; statements regarding our ability to maximize strategic business opportunities, and statements by our Chairman and CEO. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from any future results expressed or implied by the forward-looking statements and our future financial performance and operating results forecasts generally. Forward-looking statements are based on management’s current, preliminary expectations and are subject to various risks and uncertainties. In particular, our future operating results are substantially dependent on our assumptions about market trends and conditions. Additional risks and uncertainties affecting our business, future operating results and financial condition include, without limitation; risks relating to our terminated merger with Silicon Motion and related arbitration and class action complaint and the risks related to potential payment of damages; the effect of intense and increasing competition; impacts of global economic conditions; the cyclical nature of the semiconductor industry; a significant variance in our operating results and impact on volatility in our stock price, and our ability to sustain our current level of revenue, which has declined, and/or manage future growth effectively, and the impact of excess inventory in the channel on our customers’ expected demand for certain of our products; the geopolitical and economic tensions among the countries in which we conduct business; increased tariffs, export controls or imposition of other trade barriers; our ability to obtain or retain government authorization to export certain of our products or technology; risks related to the loss of, or a significant reduction in orders from major customers; a decrease in the average selling prices of our products; failure to penetrate new applications and markets; development delays and consolidation trends in our industry; inability to make substantial research and development investments; any delays or expenses caused by undetected defects or bugs in our products; failure to attract and retain qualified personnel; failure to timely develop and introduce new or enhanced products; order and shipment uncertainties; failure to accurately predict our future revenue and appropriately budget expenses; lengthy and expensive customer qualification processes; customer product plan cancellations; failure to maintain compliance with government regulations; information technology failures; any adverse impact of rising interest rates on us, our customers, and our distributors and related demand; claims of intellectual property infringement; our ability to protect our intellectual property; and a failure to manage our relationships with, or negative impacts from, third parties.

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 Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 1, 2023, 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 Quarterly Report on Form 10-Q for the quarter ended September 30, 2023. All forward-looking statements are based on the estimates, projections and assumptions of management as of October 25, 2023, 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, non-GAAP operating expenses, non-GAAP operating expenses as a percentage of net revenue, non-GAAP income from operations as percentage of revenue, non-GAAP interest and other expenses, non-GAAP diluted earnings per share, and non-GAAP diluted share count. These supplemental measures exclude the effects of (i) stock-based compensation expense; (ii) accruals related to our performance-based bonus plan for 2023, which we currently intend to settle in shares of our common stock; (iii) accruals related to our performance-based bonus plan for 2022, which we settled in shares of common stock in 2023; (iv) amortization of purchased intangible assets; (v) research and development funded by others; (vi) acquisition and integration costs related to our acquisitions, including costs incurred related to the termination of the previously pending (now terminated) merger with Silicon Motion; (vii) impairment of intangible assets; (viii) severance and other restructuring charges; (ix) other non-recurring interest and other income (expenses), net attributable to acquisitions, including ticking fees paid to lenders following the termination of the previously pending (now terminated) merger with Silicon Motion; and (x) non-cash income tax benefits and expenses. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP financial measures. Non-GAAP financial measures are subject to limitations, and should be read only in conjunction with the company’s consolidated financial statements prepared in accordance with GAAP. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. 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. 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 we believe 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.

Performance-based equity consists of accruals related to our executive and non-executive bonus programs, and have been excluded from our non-GAAP net income for all periods reported. Bonus payments for the 2022 performance periods were settled through the issuance of shares of common stock under our equity incentive plans in February 2023. We currently expect that bonus awards under our fiscal 2023 program will be settled in common stock in the first quarter of fiscal 2024.

Expenses incurred in relation to acquisitions include amortization of purchased intangible assets, acquisition and integration costs primarily consisting of professional and consulting fees, including costs incurred related to the termination of the previously pending (now terminated) merger with Silicon Motion; ticking fees paid to lenders following the termination of such merger which were recorded in other expense; and accretion of discount on contingent consideration to interest expense.

Research and development funded by others represents proceeds received under contracts for jointly funded R&D projects to develop technology that may be commercialized into a product in the future. Initially such proceeds may not yet be recognized in GAAP results if, pursuant to contract terms, the Company may be required to repay all or a portion of the funds provided by the other party under certain conditions. Management believes it is not probable that it will trigger such conditions. Once such conditions have been resolved, the proceeds are recognized in GAAP results, and accordingly, reversed from non-GAAP results.

Impairment losses are related to abandonment of acquired or purchased 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.

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, we are also unable to predict their probable significance, particularly related to stock-based compensation and its related tax effects as well as potential impairments, a quantitative reconciliation is not available without unreasonable efforts and accordingly, in reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, we have not provided a reconciliation for non-GAAP guidance provided for the fourth quarter 2023.

About MaxLinear, Inc.

MaxLinear, Inc. (Nasdaq: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

 

September 30, 2023

 

June 30, 2023

 

September 30, 2022

Net revenue

$

135,530

 

 

$

183,938

 

 

$

285,730

 

Cost of net revenue

 

61,586

 

 

 

81,065

 

 

 

118,242

 

Gross profit

 

73,944

 

 

 

102,873

 

 

 

167,488

 

Operating expenses:

 

 

 

 

 

Research and development

 

66,306

 

 

 

70,657

 

 

 

76,437

 

Selling, general and administrative

 

25,402

 

 

 

33,717

 

 

 

38,472

 

Restructuring charges

 

54

 

 

 

4,436

 

 

 

631

 

Total operating expenses

 

91,762

 

 

 

108,810

 

 

 

115,540

 

Income (loss) from operations

 

(17,818

)

 

 

(5,937

)

 

 

51,948

 

Interest income

 

1,736

 

 

 

1,903

 

 

 

62

 

Interest expense

 

(2,715

)

 

 

(2,591

)

 

 

(2,711

)

Other income (expense), net

 

(22,721

)

 

 

1,865

 

 

 

(4,705

)

Total other income (expense), net

 

(23,700

)

 

 

1,177

 

 

 

(7,354

)

Income (loss) before income taxes

 

(41,518

)

 

 

(4,760

)

 

 

44,594

 

Income tax provision (benefit)

 

(1,689

)

 

 

(409

)

 

 

16,186

 

Net income (loss)

$

(39,829

)

 

$

(4,351

)

 

$

28,408

 

Net income (loss) per share:

 

 

 

 

 

Basic

$

(0.49

)

 

$

(0.05

)

 

$

0.36

 

Diluted

$

(0.49

)

 

$

(0.05

)

 

$

0.35

 

Shares used to compute net income (loss) per share:

 

 

 

 

 

Basic

 

81,249

 

 

 

80,446

 

 

 

78,436

 

Diluted

 

81,249

 

 

 

80,446

 

 

 

80,060

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

 

 

 

Nine Months Ended

 

 

September 30, 2023

 

September 30, 2022

Net revenue

 

$

567,910

 

 

$

829,666

 

Cost of net revenue

 

 

250,786

 

 

 

343,237

 

Gross profit

 

 

317,124

 

 

 

486,429

 

Operating expenses:

 

 

 

 

Research and development

 

 

204,254

 

 

 

222,718

 

Selling, general and administrative

 

 

97,772

 

 

 

123,536

 

Impairment losses

 

 

2,438

 

 

 

 

Restructuring charges

 

 

9,138

 

 

 

1,093

 

Total operating expenses

 

 

313,602

 

 

 

347,347

 

Income from operations

 

 

3,522

 

 

 

139,082

 

Interest income

 

 

4,272

 

 

 

175

 

Interest expense

 

 

(7,793

)

 

 

(7,476

)

Other income (expense), net

 

 

(21,180

)

 

 

1,704

 

Total other income (expense), net

 

 

(24,701

)

 

 

(5,597

)

Income (loss) before income taxes

 

 

(21,179

)

 

 

133,485

 

Income tax provision

 

 

13,468

 

 

 

39,525

 

Net income (loss)

 

$

(34,647

)

 

$

93,960

 

Net income (loss) per share:

 

 

 

 

Basic

 

$

(0.43

)

 

$

1.21

 

Diluted

 

$

(0.43

)

 

$

1.17

 

Shares used to compute net income (loss) per share:

 

 

 

 

Basic

 

 

80,395

 

 

 

77,833

 

Diluted

 

 

80,395

 

 

 

80,331

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) 

 

Three Months Ended

 

September 30, 2023

 

June 30, 2023

 

September 30, 2022

Operating Activities

 

 

 

 

 

Net income (loss)

$

(39,829

)

 

$

(4,351

)

 

$

28,408

 

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

 

 

 

 

 

Amortization and depreciation

 

17,014

 

 

 

18,707

 

 

 

18,457

 

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

 

685

 

 

 

625

 

 

 

505

 

Stock-based compensation

 

5,118

 

 

 

17,197

 

 

 

20,131

 

Deferred income taxes

 

(2,384

)

 

 

758

 

 

 

15,962

 

Loss on disposal of property and equipment

 

16

 

 

 

2,001

 

 

 

3

 

Unrealized holding (gain) loss on investments

 

5,876

 

 

 

(1,807

)

 

 

5,277

 

(Gain) loss on settlement of pension

 

(1,008

)

 

 

 

 

 

 

Gain on foreign currency and other

 

(13

)

 

 

(209

)

 

 

(570

)

Excess tax (benefits) deficiencies on stock based awards

 

769

 

 

 

(791

)

 

 

(273

)

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(2,398

)

 

 

33,098

 

 

 

(41,007

)

Inventory

 

11,210

 

 

 

23,433

 

 

 

(19,539

)

Prepaid expenses and other assets

 

(4,563

)

 

 

(1,314

)

 

 

2,129

 

Accounts payable, accrued expenses and other current liabilities

 

9,347

 

 

 

(26,378

)

 

 

19,768

 

Accrued compensation

 

4,914

 

 

 

(3,348

)

 

 

10,832

 

Accrued price protection liability

 

(11,995

)

 

 

(23,164

)

 

 

6,171

 

Lease liabilities

 

(2,882

)

 

 

(2,914

)

 

 

(2,974

)

Other long-term liabilities

 

(2,669

)

 

 

(965

)

 

 

(1,514

)

Net cash provided by (used in) operating activities

 

(12,792

)

 

 

30,578

 

 

 

61,766

 

Investing Activities

 

 

 

 

 

Purchases of property and equipment

 

(1,927

)

 

 

(5,037

)

 

 

(9,119

)

Purchases of intangible assets

 

(674

)

 

 

(4,894

)

 

 

(5,236

)

Cash used in acquisitions, net of cash acquired

 

 

 

 

(2,719

)

 

 

 

Purchases of investments

 

 

 

 

 

 

 

(1,000

)

Net cash used in investing activities

 

(2,601

)

 

 

(12,650

)

 

 

(15,355

)

Financing Activities

 

 

 

 

 

Payment of debt commitment fees

 

(18,325

)

 

 

 

 

 

 

Repayment of debt

 

 

 

 

 

 

 

(75,000

)

Net proceeds from issuance of common stock

 

92

 

 

 

3,073

 

 

 

81

 

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

 

(3,232

)

 

 

(2,965

)

 

 

(380

)

Net cash provided by (used in) financing activities

 

(21,465

)

 

 

108

 

 

 

(75,299

)

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

 

(633

)

 

 

(1,229

)

 

 

(1,038

)

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

 

(37,491

)

 

 

16,807

 

 

 

(29,926

)

Cash, cash equivalents and restricted cash at beginning of period

 

225,643

 

 

 

208,836

 

 

 

212,419

 

Cash, cash equivalents and restricted cash at end of period

$

188,152

 

 

$

225,643

 

 

$

182,493

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) 

 

 

 

Nine Months Ended

 

 

September 30, 2023

 

September 30, 2022

Operating Activities

 

 

 

 

Net income (loss)

 

$

(34,647

)

 

$

93,960

 

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

 

 

 

 

Amortization and depreciation

 

 

54,923

 

 

 

61,906

 

Impairment losses

 

 

2,438

 

 

 

 

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

 

 

1,858

 

 

 

1,462

 

Stock-based compensation

 

 

38,763

 

 

 

58,154

 

Deferred income taxes

 

 

6,502

 

 

 

23,321

 

Loss on disposal of property and equipment

 

 

2,057

 

 

 

167

 

Unrealized holding loss on investments

 

 

3,917

 

 

 

1,418

 

Impairment of leased right-of-use assets

 

 

 

 

 

462

 

(Gain) loss on settlement of pension

 

 

(1,008

)

 

 

 

(Gain) loss on foreign currency

 

 

140

 

 

 

(3,245

)

Excess tax benefits on stock-based awards

 

 

(529

)

 

 

(9,702

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

13,769

 

 

 

(57,976

)

Inventory

 

 

45,602

 

 

 

(34,267

)

Prepaid expenses and other assets

 

 

(10,215

)

 

 

3,957

 

Accounts payable, accrued expenses and other current liabilities

 

 

(17,917

)

 

 

82,389

 

Accrued compensation

 

 

8,776

 

 

 

32,187

 

Accrued price protection liability

 

 

(45,036

)

 

 

76,968

 

Lease liabilities

 

 

(8,891

)

 

 

(8,485

)

Other long-term liabilities

 

 

(557

)

 

 

(3,307

)

Net cash provided by operating activities

 

 

59,945

 

 

 

319,369

 

Investing Activities

 

 

 

 

Purchases of property and equipment

 

 

(12,180

)

 

 

(24,625

)

Purchases of intangible assets

 

 

(6,198

)

 

 

(10,440

)

Cash used in acquisitions, net of cash acquired

 

 

(12,384

)

 

 

 

Proceeds loaned under notes receivable

 

 

 

 

 

(10,000

)

Purchases of investments

 

 

 

 

 

(29,325

)

Net cash used in investing activities

 

 

(30,762

)

 

 

(74,390

)

Financing Activities

 

 

 

 

Payment of debt commitment fees

 

 

(18,325

)

 

 

 

Repayment of debt

 

 

 

 

 

(135,000

)

Net proceeds from issuance of common stock

 

 

3,168

 

 

 

3,214

 

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

 

(12,370

)

 

(28,527

)

Repurchase of common stock

 

 

 

 

 

(31,511

)

Net cash used in financing activities

 

 

(27,527

)

 

 

(191,824

)

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

 

 

(1,861

)

 

 

(2,400

)

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

 

 

(205

)

 

 

50,755

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

188,357

 

 

 

131,738

 

Cash, cash equivalents and restricted cash at end of period

 

$

188,152

 

 

$

182,493

 

MAXLINEAR, INC.

UNAUDITED GAAP CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands) 

 

September 30, 2023

 

June 30, 2023

 

September 30, 2022

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

187,028

 

$

224,579

 

$

181,496

Short-term restricted cash

 

1,105

 

 

1,042

 

 

971

Short-term investments

 

14,612

 

 

20,488

 

 

18,587

Accounts receivable, net

 

158,232

 

 

155,834

 

 

178,072

Inventory

 

114,942

 

 

126,152

 

 

165,970

Prepaid expenses and other current assets

 

32,688

 

 

26,396

 

 

17,879

Total current assets

 

508,607

 

 

554,491

 

 

562,975

Long-term restricted cash

 

19

 

 

22

 

 

26

Property and equipment, net

 

69,484

 

 

73,845

 

 

67,081

Leased right-of-use assets

 

32,647

 

 

35,112

 

 

30,041

Intangible assets, net

 

82,643

 

 

91,203

 

 

122,142

Goodwill

 

318,456

 

 

318,456

 

 

306,739

Deferred tax assets

 

59,121

 

 

56,757

 

 

65,767

Other long-term assets

 

32,810

 

 

31,594

 

 

27,927

Total assets

$

1,103,787

 

$

1,161,480

 

$

1,182,698

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities

$

232,910

 

$

241,729

 

$

351,318

Long-term lease liabilities

 

28,017

 

 

30,712

 

 

25,040

Long-term debt

 

122,219

 

 

122,064

 

 

171,607

Other long-term liabilities

 

17,964

 

 

20,928

 

 

18,852

Stockholders’ equity

 

702,677

 

 

746,047

 

 

615,881

Total liabilities and stockholders’ equity

$

1,103,787

 

$

1,161,480

 

$

1,182,698

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data) 

 

Three Months Ended

 

September 30, 2023

 

June 30, 2023

 

September 30, 2022

GAAP gross profit

$

73,944

 

 

$

102,873

 

 

$

167,488

 

Stock-based compensation

 

170

 

 

 

246

 

 

 

188

 

Performance based equity

 

19

 

 

 

(16

)

 

 

136

 

Amortization of purchased intangible assets

 

8,332

 

 

 

9,117

 

 

 

9,332

 

Non-GAAP gross profit

 

82,465

 

 

 

112,220

 

 

 

177,144

 

 

 

 

 

 

 

GAAP R&D expenses

 

66,306

 

 

 

70,657

 

 

 

76,437

 

Stock-based compensation

 

(9,436

)

 

 

(12,237

)

 

 

(10,635

)

Performance based equity

 

(2,288

)

 

 

273

 

 

 

(7,690

)

Research and development funded by others

 

(5,500

)

 

 

(1,000

)

 

 

(1,000

)

Non-GAAP R&D expenses

 

49,082

 

 

 

57,693

 

 

 

57,112

 

 

 

 

 

 

 

GAAP SG&A expenses

 

25,402

 

 

 

33,717

 

 

 

38,472

 

Stock-based compensation

 

4,488

 

 

 

(4,713

)

 

 

(9,308

)

Performance based equity

 

(999

)

 

 

193

 

 

 

(3,043

)

Amortization of purchased intangible assets

 

(653

)

 

 

(709

)

 

 

(1,541

)

Acquisition and integration costs

 

(2,172

)

 

 

(3,714

)

 

 

(1,278

)

Non-GAAP SG&A expenses

 

26,066

 

 

 

24,774

 

 

 

23,302

 

 

 

 

 

 

 

GAAP restructuring expenses

 

54

 

 

 

4,436

 

 

 

631

 

Restructuring charges

 

(54

)

 

 

(4,436

)

 

 

(631

)

Non-GAAP restructuring expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income (loss) from operations

 

(17,818

)

 

 

(5,937

)

 

 

51,948

 

Total non-GAAP adjustments

 

25,135

 

 

 

35,690

 

 

 

44,782

 

Non-GAAP income from operations

 

7,317

 

 

 

29,753

 

 

 

96,730

 

 

 

 

 

 

 

GAAP interest and other income (expense), net

 

(23,700

)

 

 

1,177

 

 

 

(7,354

)

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

 

18,395

 

 

 

68

 

 

 

58

 

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

 

(5,305

)

 

 

1,245

 

 

 

(7,296

)

 

 

 

 

 

 

GAAP income (loss) before income taxes

 

(41,518

)

 

 

(4,760

)

 

 

44,594

 

Total non-GAAP adjustments

 

43,530

 

 

 

35,758

 

 

 

44,840

 

Non-GAAP income before income taxes

 

2,012

 

 

 

30,998

 

 

 

89,434

 

 

 

 

 

 

 

GAAP income tax provision (benefit)

 

(1,689

)

 

 

(409

)

 

 

16,186

 

Adjustment for non-cash tax benefits/expenses

 

1,891

 

 

 

3,508

 

 

 

(10,820

)

Non-GAAP income tax provision

 

202

 

 

 

3,099

 

 

 

5,366

 

 

 

 

 

 

 

GAAP net income (loss)

 

(39,829

)

 

 

(4,351

)

 

 

28,408

 

Total non-GAAP adjustments before income taxes

 

43,530

 

 

 

35,758

 

 

 

44,840

 

Less: total tax adjustments

 

1,891

 

 

 

3,508

 

 

 

(10,820

)

Non-GAAP net income

$

1,810

 

 

$

27,899

 

 

$

84,068

 

 

 

 

 

 

 

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

 

81,249

 

 

 

80,446

 

 

 

78,436

 

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

 

81,968

 

 

 

81,698

 

 

 

80,060

 

Non-GAAP basic net income per share

$

0.02

 

 

$

0.35

 

 

$

1.07

Non-GAAP diluted net income per share

$

0.02

 

$

0.34

 

$

1.05

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(as a percentage of net revenue for the corresponding period) 

 

 

 

Nine Months Ended

 

 

September 30, 2023

 

September 30, 2022

GAAP gross profit

 

$

317,124

 

 

$

486,429

 

Stock-based compensation

 

 

626

 

 

 

513

 

Performance based equity

 

 

94

 

 

 

394

 

Amortization of purchased intangible assets

 

 

26,770

 

 

 

29,963

 

Non-GAAP gross profit

 

 

344,614

 

 

 

517,299

 

 

 

 

 

 

GAAP R&D expenses

 

 

204,254

 

 

 

222,718

 

Stock-based compensation

 

 

(33,128

)

 

 

(30,294

)

Performance based equity

 

 

(5,650

)

 

 

(20,258

)

Research and development funded by others

 

 

(7,500

)

 

 

(200

)

Non-GAAP R&D expenses

 

 

157,976

 

 

 

171,966

 

 

 

 

 

 

GAAP SG&A expenses

 

 

97,772

 

 

 

123,536

 

Stock-based compensation

 

 

(5,009

)

 

 

(27,347

)

Performance based equity

 

 

(2,550

)

 

 

(7,819

)

Amortization of purchased intangible assets

 

 

(2,290

)

 

 

(10,643

)

Acquisition and integration costs

 

 

(7,487

)

 

 

(7,642

)

Non-GAAP SG&A expenses

 

 

80,436

 

 

 

70,085

 

 

 

 

 

 

GAAP impairment losses

 

 

2,438

 

 

 

 

Impairment losses

 

 

(2,438

)

 

 

 

Non-GAAP impairment losses

 

 

 

 

 

 

 

 

 

 

 

GAAP restructuring expenses

 

 

9,138

 

 

 

1,093

 

Restructuring charges

 

 

(9,138

)

 

 

(1,093

)

Non-GAAP restructuring expenses

 

 

 

 

 

 

 

 

 

 

 

GAAP income from operations

 

 

3,522

 

 

 

139,082

 

Total non-GAAP adjustments

 

 

102,680

 

 

 

136,166

 

Non-GAAP income from operations

 

 

106,202

 

 

 

275,248

 

 

 

 

 

 

GAAP interest and other income (expense), net

 

 

(24,701

)

 

 

(5,597

)

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

 

 

18,574

 

 

 

182

 

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

 

 

(6,127

)

 

 

(5,415

)

 

 

 

 

 

GAAP income (loss) before income taxes

 

 

(21,179

)

 

 

133,485

 

Total non-GAAP adjustments

 

 

121,254

 

 

 

136,348

 

Non-GAAP income (loss) before income taxes

 

 

100,075

 

 

 

269,833

 

 

 

 

 

 

GAAP income tax provision

 

 

13,468

 

 

 

39,525

 

Adjustment for non-cash tax benefits/expenses

 

 

(3,460

)

 

 

(23,335

)

Non-GAAP income tax provision

 

 

10,008

 

 

 

16,190

 

 

 

 

 

 

GAAP net income (loss)

 

 

(34,647

)

 

 

93,960

 

Total non-GAAP adjustments before income taxes

 

 

121,254

 

 

 

136,348

 

Less: total tax adjustments

 

 

(3,460

)

 

 

(23,335

)

Non-GAAP net income

 

$

90,067

 

 

$

253,643

 

 

 

 

 

 

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

 

 

80,395

 

 

 

77,833

 

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

 

 

81,674

 

 

 

80,331

 

Non-GAAP basic net income per share

 

$

1.12

 

 

$

3.26

 

Non-GAAP diluted net income per share

 

$

1.10

 

 

$

3.16

 

 

 

 

 

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

AS A PERCENTAGE OF NET REVENUE 

 

Three Months Ended

 

September 30, 2023

 

June 30, 2023

 

September 30, 2022

GAAP gross margin

54.6

%

 

55.9

%

 

58.6

%

Stock-based compensation

0.1

%

 

0.1

%

 

0.1

%

Performance based equity

%

 

%

 

0.1

%

Amortization of purchased intangible assets

6.2

%

 

5.0

%

 

3.3

%

Non-GAAP gross margin

60.8

%

 

61.0

%

 

62.0

%

 

 

 

 

 

 

GAAP R&D expenses

48.9

%

 

38.4

%

 

26.8

%

Stock-based compensation

(7.0

)%

 

(6.7

)%

 

(3.7

)%

Performance based equity

(1.7

)%

 

0.2

%

 

(2.7

)%

Research and development funded by others

(4.1

)%

 

(0.5

)%

 

(0.4

)%

Non-GAAP R&D expenses

36.2

%

 

31.4

%

 

20.0

%

 

 

 

 

 

 

GAAP SG&A expenses

18.7

%

 

18.3

%

 

13.5

%

Stock-based compensation

3.3

%

 

(2.6

)%

 

(3.3

)%

Performance based equity

(0.7

)%

 

0.1

%

 

(1.1

)%

Amortization of purchased intangible assets

(0.5

)%

 

(0.4

)%

 

(0.5

)%

Acquisition and integration costs

(1.6

)%

 

(2.0

)%

 

(0.5

)%

Non-GAAP SG&A expenses

19.2

%

 

13.5

%

 

8.2

%

 

 

 

 

 

 

GAAP restructuring expenses

%

 

2.4

%

 

0.2

%

Restructuring charges

%

 

(2.4

)%

 

(0.2

)%

Non-GAAP restructuring expenses

%

 

%

 

%

 

 

 

 

 

 

GAAP income (loss) from operations

(13.2

)%

 

(3.2

)%

 

18.2

%

Total non-GAAP adjustments

18.6

%

 

19.4

%

 

15.7

%

Non-GAAP income from operations

5.4

%

 

16.2

%

 

33.9

%

 

 

 

 

 

 

GAAP interest and other income (expense), net

(17.5

)%

 

0.6

%

 

(2.6

)%

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

13.6

%

 

%

 

%

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

(3.9

)%

 

0.7

%

 

(2.6

)%

 

 

 

 

 

 

GAAP income (loss) before income taxes

(30.6

)%

 

(2.6

)%

 

15.6

%

Total non-GAAP adjustments before income taxes

32.1

%

 

19.4

%

 

15.7

%

Non-GAAP income before income taxes

1.5

%

 

16.9

%

 

31.3

%

 

 

 

 

 

 

GAAP income tax provision (benefit)

(1.3

)%

 

(0.2

)%

 

5.7

%

Adjustment for non-cash tax benefits/expenses

1.4

%

 

1.9

%

 

(3.8

)%

Non-GAAP income tax provision

0.2

%

 

1.7

%

 

1.9

%

 

 

 

 

 

 

GAAP net income (loss)

(29.4

)%

 

(2.4

)%

 

9.9

%

Total non-GAAP adjustments before income taxes

32.1

%

 

19.4

%

 

15.7

%

Less: total tax adjustments

1.4

%

 

1.9

%

 

(3.8

)%

Non-GAAP net income

1.3

%

 

15.2

%

 

29.4

%

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

AS A PERCENTAGE OF NET REVENUE

 

 

 

Nine Months Ended

 

 

September 30, 2023

 

September 30, 2022

GAAP gross margin

 

55.8

%

 

58.6

%

Stock-based compensation

 

0.1

%

 

0.1

%

Performance based equity

 

%

 

0.1

%

Amortization of purchased intangible assets

 

4.7

%

 

3.6

%

Non-GAAP gross margin

 

60.7

%

 

62.4

%

 

 

 

 

 

GAAP R&D expenses

 

36.0

%

 

26.8

%

Stock-based compensation

 

(5.8

)%

 

(3.7

)%

Performance based equity

 

(1.0

)%

 

(2.4

)%

Research and development funded by others

 

(1.3

)%

 

%

Non-GAAP R&D expenses

 

27.8

%

 

20.7

%

 

 

 

 

 

GAAP SG&A expenses

 

17.2

%

 

14.9

%

Stock-based compensation

 

(0.9

)%

 

(3.3

)%

Performance based equity

 

(0.5

)%

 

(0.9

)%

Amortization of purchased intangible assets

 

(0.4

)%

 

(1.3

)%

Acquisition and integration costs

 

(1.3

)%

 

(0.9

)%

Non-GAAP SG&A expenses

 

14.2

%

 

8.5

%

 

 

 

 

 

GAAP impairment losses

 

0.3

%

 

%

Impairment losses

 

(0.3

)%

 

%

Non-GAAP impairment losses

 

%

 

%

 

 

 

 

 

GAAP restructuring expenses

 

1.6

%

 

0.1

%

Restructuring charges

 

(1.6

)%

 

(0.1

)%

Non-GAAP restructuring expenses

 

%

 

%

 

 

 

 

 

GAAP income from operations

 

0.6

%

 

16.8

%

Total non-GAAP adjustments

 

18.1

%

 

16.4

%

Non-GAAP income from operations

 

18.7

%

 

33.2

%

 

 

 

 

 

GAAP interest and other income (expense), net

 

(4.4

)%

 

(0.7

)%

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

 

3.3

%

 

%

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

 

(1.1

)%

 

(0.7

)%

 

 

 

 

 

GAAP income (loss) before income taxes

 

(3.7

)%

 

16.1

%

Total non-GAAP adjustments

 

21.4

%

 

16.4

%

Non-GAAP income (loss) before income taxes

 

17.6

%

 

32.5

%

 

 

 

 

 

GAAP income tax provision

 

2.4

%

 

4.8

%

Adjustment for non-cash tax benefits/expenses

 

(0.6

)%

 

(2.8

)%

Non-GAAP income tax provision

 

1.8

%

 

2.0

%

 

 

 

 

 

GAAP net income (loss)

 

(6.1

)%

 

11.3

%

Total non-GAAP adjustments before income taxes

 

21.4

%

 

16.4

%

Less: total tax adjustments

 

(0.6

)%

 

(2.8

)%

Non-GAAP net income

 

15.9

%

 

30.6

%

 

Contacts

MaxLinear, Inc. Investor Relations Contact:

Leslie Green

Tel: +1 650-312-9060

lgreen@maxlinear.com

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