| MAXLINEAR, INC. | |||||||||||
| UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS | |||||||||||
| (in thousands, except per share data) | |||||||||||
| Three Months Ended | |||||||||||
| December 31, 2017 | September 30, 2017 | December 31, 2016 | |||||||||
| GAAP gross profit | $ | 52,093 | $ | 51,842 | $ | 50,403 | |||||
| Stock-based compensation | 101 | 93 | 59 | ||||||||
| Performance based equity | 35 | 34 | 31 | ||||||||
| Amortization of inventory step-up | 9,715 | 10,207 | 2,652 | ||||||||
| Amortization of purchased intangible assets | 8,465 | 7,907 | 2,572 | ||||||||
| Depreciation of fixed asset step-up | 112 | 113 | — | ||||||||
| Deferred profit eliminated in purchase price accounting | — | 810 | — | ||||||||
| Non-GAAP gross profit | 70,521 | 71,006 | 55,717 | ||||||||
| GAAP R&D expenses | 30,116 | 29,270 | 24,035 | ||||||||
| Stock-based compensation | (4,349 | ) | (4,337 | ) | (3,319 | ) | |||||
| Incentive award compensation | — | — | (169 | ) | |||||||
| Performance based equity | (1,031 | ) | (961 | ) | (1,133 | ) | |||||
| Amortization of purchased intangible assets | (97 | ) | (96 | ) | (97 | ) | |||||
| Depreciation of fixed asset step-up | (297 | ) | (561 | ) | — | ||||||
| Restricted merger proceeds and contingent consideration | — | — | (35 | ) | |||||||
| Non-GAAP R&D expenses | 24,342 | 23,315 | 19,282 | ||||||||
| GAAP SG&A expenses | 26,843 | 29,037 | 16,720 | ||||||||
| Stock-based compensation | (3,105 | ) | (2,965 | ) | (1,724 | ) | |||||
| Incentive award compensation | — | — | (18 | ) | |||||||
| Performance based equity | (937 | ) | (517 | ) | (673 | ) | |||||
| Amortization of purchased intangible assets | (8,760 | ) | (9,924 | ) | (2,914 | ) | |||||
| Depreciation of fixed asset step-up | (20 | ) | (30 | ) | — | ||||||
| Acquisition and integration costs | (54 | ) | (1,005 | ) | (572 | ) | |||||
| Restricted merger proceeds and contingent consideration | — | — | (11 | ) | |||||||
| IP litigation costs, net | (38 | ) | (4 | ) | (28 | ) | |||||
| Non-GAAP SG&A expenses | 13,929 | 14,592 | 10,780 | ||||||||
| GAAP IPR&D impairment losses | — | 2,000 | — | ||||||||
| IPR&D impairment losses | — | (2,000 | ) | — | |||||||
| Non-GAAP IPR&D impairment losses | — | — | — | ||||||||
| GAAP restructuring expenses | 800 | 2,178 | 1,326 | ||||||||
| Restructuring charges | (800 | ) | (2,178 | ) | (1,326 | ) | |||||
| Non-GAAP restructuring expenses | — | — | — | ||||||||
| GAAP income (loss) from operations | (5,666 | ) | (10,643 | ) | 8,322 | ||||||
| Total non-GAAP adjustments | 37,916 | 43,742 | 17,333 | ||||||||
| Non-GAAP income from operations | 32,250 | 33,099 | 25,655 | ||||||||
| GAAP and non-GAAP interest and other income (expense), net | (4,823 | ) | (4,800 | ) | 269 | ||||||
| GAAP income (loss) before income taxes | (10,489 | ) | (15,443 | ) | 8,591 | ||||||
| Total non-GAAP adjustments | 37,916 | 43,742 | 17,333 | ||||||||
| Non-GAAP income before income taxes | 27,427 | 28,299 | 25,924 | ||||||||
| GAAP income tax provision (benefit) | 8,959 | (6,276 | ) | 243 | |||||||
| Adjustment for non-cash tax benefits/expenses and effects of the Tax Act | (7,853 | ) | 7,476 | (13 | ) | ||||||
| Non-GAAP income tax provision | 1,106 | 1,200 | 230 | ||||||||
| GAAP net income (loss) | (19,448 | ) | (9,167 | ) | 8,348 | ||||||
| Total non-GAAP adjustments before income taxes | 37,916 | 43,742 | 17,333 | ||||||||
| Less: total tax adjustments | (7,853 | ) | 7,476 | (13 | ) | ||||||
| Non-GAAP net income | $ | 26,321 | $ | 27,099 | $ | 25,694 | |||||
| Shares used in computing non-GAAP basic net income per share | 67,147 | 66,712 | 64,752 | ||||||||
| Shares used in computing non-GAAP diluted net income per share | 70,175 | 69,668 | 68,421 | ||||||||
| Non-GAAP basic net income per share | $ | 0.39 | $ | 0.41 | $ | 0.40 | |||||
| Non-GAAP diluted net income per share | $ | 0.38 | $ | 0.39 | $ | 0.38 | |||||
