| * | Share-based bonus plan for the nine months ended September 30, 2015 primarily relates to an accrual related to our performance based bonus plan for 2015 increased by $0.8 million for the accrual of restricted stock unit awards and incentives to be granted to Physpeed and Entropic continuing employees contingent upon continued employment and the achievement of certain 2015 and 2016 revenue milestones. The performance based bonus plan was partially settled in stock in 2015 with the remainder to be settled in stock in 2016. Share-based bonus plan for the nine months ended September 30, 2014 relates to an accrual related to our performance based bonus plan for 2014, which was settled in stock in May 2015. |
MAXLINEAR, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
| Three Months Ended | ||||||||
| September 30, 2015 | June 30, 2015 | September 30, 2014 | ||||||
| GAAP gross profit as a % of revenue | 53.6 | % | 38.0 | % | 61.2 | % | ||
| Stock-based compensation: | ||||||||
| Cost of net revenue | 0.1 | % | 0.1 | % | 0.1 | % | ||
| Share-based bonus plan: | ||||||||
| Cost of net revenue | 0.2 | % | — | % | — | % | ||
| Amortization of purchased intangibles: | ||||||||
| Cost of net revenue | 1.6 | % | 1.5 | % | — | % | ||
| Impairment of production masks
| 0.2 | % | — | % | — | % | ||
| Amortization of inventory step-up | 1.0 | % | 18.8 | % | — | % | ||
| Non-GAAP gross profit as a % of revenue | 56.7 | % | 58.4 | % | 61.3 | % | ||
| GAAP income (loss) from operations as a % of revenue | 1.8 | % | (45.3 | )% | (9.8 | )% | ||
| Stock-based compensation: | ||||||||
| Cost of net revenue | 0.1 | % | 0.1 | % | 0.1 | % | ||
| Research and development | 3.7 | % | 4.3 | % | 7.9 | % | ||
| Selling, general and administrative | 1.5 | % | 2.4 | % | 4.3 | % | ||
| Share-based bonus plan: | ||||||||
| Cost of net revenue | 0.2 | % | — | % | — | % | ||
| Research and development | 1.2 | % | 2.1 | % | — | % | ||
| Selling, general and administrative | 0.8 | % | 0.8 | % | 0.2 | % | ||
| Amortization of purchased intangible assets: | ||||||||
| Cost of net revenue | 1.6 | % | 1.5 | % | — | % | ||
| Research and development | 0.1 | % | 0.1 | % | — | % | ||
| Selling, general and administrative | 12.7 | % | 11.3 | % | — | % | ||
| Impairment of production masks
| 0.2 | % | — | % | — | % | ||
| Amortization of inventory step-up | 1.0 | % | 18.8 | % | — | % | ||
| Acquisition and integration costs | — | % | 4.0 | % | — | % | ||
| Restricted merger proceeds | 0.2 | % | 0.3 | % | — | % | ||
| Change in fair value of contingent consideration | — | % | 0.1 | % | — | % | ||
| Severance charges | 0.5 | % | 0.1 | % | — | % | ||
| Restructuring charges | 0.4 | % | 16.1 | % | — | % | ||
| IP litigation costs, net | 0.2 | % | 0.5 | % | 2.7 | % | ||
| Non-GAAP income from operations as a % of revenue | 26.2 | % | 17.2 | % | 5.4 | % | ||
