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MaxLinear, Inc. Announces Fourth Quarter 2019 Financial Results

CARLSBAD, Calif. — (BUSINESS WIRE) — February 5, 2020 — MaxLinear, Inc. (NYSE: MXL), a leading provider of RF, analog and mixed-signal integrated circuits for the connected home, and industrial and multi-market applications, today announced financial results for the fourth quarter ended December 31, 2019.

Fourth Quarter Financial Highlights

GAAP basis:

Non-GAAP basis:

Management Commentary

“In the fourth quarter, revenue results were in line with our guidance, gross margin was strong, and operating expenses declined on continued discipline. We delivered strong cash flow from operations in the quarter at approximately $28 million. As we enter 2020, we are excited about our new product launches coming to fruition with our new 5G wireless radio, and fiber-optic datacenter high-speed interconnect products expanding into new large, high-growth infrastructure markets. We also secured a new design-win at a major customer for our 5G Wireless radio transceiver, in addition to the tier-1 European OEM design-win in the previous quarter,” commented Kishore Seendripu, Ph.D., Chairman and CEO.

First Quarter 2020 Business Outlook

The company expects revenue in the first quarter 2020 to be approximately $65 million to $70 million. The Company also estimates the following:

Webcast and Conference Call

MaxLinear will host its fourth quarter financial results conference call today, February 5, 2020 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 February 19, 2020. A replay of the conference call will also be available until February 19, 2020 by dialing US toll free: 1-877-660-6853 / International: 1-201-612-7415 and Conference ID#: 13697877.

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 first quarter 2020 revenue, gross margins, and operating expenses) and statements concerning expectations of potential developments in our target markets, including management’s views with respect to the prospects for and trends in our connected home and 5G wireless and fiber-optic high-speed interconnect infrastructure markets. 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. Forward-looking statements are based on management’s current, preliminary expectations and are subject to various risks and uncertainties. Risks and uncertainties affecting our business and future operating results include, without limitation, intense competition in our industry; our dependence on a limited number of customers for a substantial portion of our revenues; uncertainties concerning how end user markets for our products will develop, including in particular new markets we are entering such as the 5G wireless and fiber-optic data center high-speed interconnect infrastructure markets but also existing markets such as connected home; uncertainties concerning the outcome of global trade negotiations, export control limitations, and heightened geopolitical risks generally; uncertainties arising from the impact of novel coronavirus on the market; potential uncertainties arising from continued consolidation among cable television and satellite operators in our target markets and continued consolidation among competitors within the semiconductor industry generally; our ability to develop and introduce new and enhanced products on a timely basis and achieve market acceptance of those products, particularly as we seek to expand outside of our historic markets; potential decreases in average selling prices for our products; our reliance on a limited number of third party manufacturers; risks relating to intellectual property protection and the prevalence of intellectual property litigation in our industry; the impact on our financial condition of the indebtedness arising from the Exar transaction; and our lack of long-term supply contracts and dependence on limited sources of supply.

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, 2019, 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, 2019, which we expect to file shortly. All forward-looking statements are based on the estimates, projections and assumptions of management as of February 5, 2020, 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 2019, which we currently intend to settle in shares of our common stock; (iii) accruals related to our performance based bonus plan for 2018 which we settled in shares of common stock in 2019; (iv) amortization of purchased intangible assets; (v) depreciation of fixed assets step-up; (vi) professional fees and settlement costs related to our previously disclosed IP and commercial litigation matters; (vii) severance and other restructuring charges; (viii) non-cash income tax benefits and expenses and effects of the 2017 Tax Cuts and Jobs Act, or Tax Act, as applicable; and (ix) non-recurring gain on reversal of liability. 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 2018 performance periods were settled through the issuance of shares of common stock under our equity incentive plans in February 2019. We currently expect that bonus awards under our fiscal 2019 program will be settled in common stock in the first quarter of fiscal 2020.

Expenses incurred (gains recognized) in relation to acquisitions include amortization of purchased intangible assets, depreciation of step-up of property and equipment to fair value, and non-recurring gain on reversal of liability for an assumed indemnification obligation.

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. Effects of the Tax Act were excluded from non-GAAP effective tax rate, as applicable.

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 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

 

December 31, 2019

 

September 30, 2019

 

December 31, 2018

Net revenue

$

70,018

 

 

$

80,020

 

 

$

87,627

 

Cost of net revenue

33,394

 

 

38,116

 

 

41,727

 

Gross profit

36,624

 

 

41,904

 

 

45,900

 

Operating expenses:

 

 

 

 

 

Research and development

23,467

 

 

23,174

 

 

29,667

 

Selling, general and administrative

20,924

 

 

21,920

 

 

25,208

 

Restructuring charges

159

 

 

144

 

 

1,737

 

Total operating expenses

44,550

 

 

45,238

 

 

56,612

 

Loss from operations

(7,926

)

 

(3,334

)

 

(10,712

)

Interest income

222

 

 

214

 

 

24

 

Interest expense

(2,587

)

 

(2,718

)

 

(3,194

)

Other income (expense), net

(498

)

 

1,098

 

 

229

 

Total interest and other income (expense), net

(2,863

)

 

(1,406

)

 

(2,941

)

Loss before income taxes

(10,789

)

 

(4,740

)

 

(13,653

)

Income tax benefit

(2,685

)

 

(26

)

 

(13,964

)

Net income (loss)

$

(8,104

)

 

$

(4,714

)

 

$

311

 

Net income (loss) per share:

 

 

 

 

 

Basic

$

(0.11

)

 

$

(0.07

)

 

$

 

Diluted

$

(0.11

)

 

$

(0.07

)

 

$

 

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

 

 

 

 

 

Basic

71,746

 

 

71,366

 

 

69,186

 

Diluted

71,746

 

 

71,366

 

 

71,267

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

Twelve Months Ended

 

December 31, 2019

 

December 31, 2018

Net revenue

$

317,180

 

 

$

384,997

 

Cost of net revenue

149,495

 

 

176,223

 

Gross profit

167,685

 

 

208,774

 

Operating expenses:

 

 

 

Research and development

98,344

 

 

120,046

 

Selling, general and administrative

88,762

 

 

101,789

 

Impairment losses

 

 

2,198

 

Restructuring charges

2,636

 

 

3,838

 

Total operating expenses

189,742

 

 

227,871

 

Loss from operations

(22,057

)

 

(19,097

)

Interest income

775

 

 

78

 

Interest expense

(11,133

)

 

(14,255

)

Other income (expense), net

(69

)

 

422

 

Total interest and other income (expense), net

(10,427

)

 

(13,755

)

Loss before income taxes

(32,484

)

 

(32,852

)

Income tax benefit

(12,586

)

 

(6,653

)

Net loss

$

(19,898

)

 

$

(26,199

)

Net loss per share:

 

 

 

Basic

$

(0.28

)

 

$

(0.38

)

Diluted

$

(0.28

)

 

$

(0.38

)

Shares used to compute net loss per share:

 

 

 

Basic

71,005

 

 

68,490

 

Diluted

71,005

 

 

68,490

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

Three Months Ended

 

December 31, 2019

 

September 30, 2019

 

December 31, 2018

Operating Activities

 

 

 

 

 

Net income (loss)

$

(8,104

)

 

$

(4,714

)

 

$

311

 

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

 

 

 

 

 

Amortization and depreciation

16,473

 

 

16,419

 

 

19,125

 

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

404

 

 

380

 

 

287

 

Stock-based compensation

7,747

 

 

8,359

 

 

7,999

 

Deferred income taxes

(3,238

)

 

(1,379

)

 

(8,827

)

Loss on disposal of property and equipment

 

 

 

 

430

 

Impairment of leasehold improvements

 

 

 

 

35

 

Impairment of leased right-of-use assets

7,058

 

 

 

 

 

Gain on extinguishment of lease liabilities

(7,557

)

 

 

 

 

(Gain) loss on foreign currency

430

 

 

(183

)

 

(268

)

Excess tax benefits on stock-based awards

(192

)

 

(61

)

 

(820

)

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

5,930

 

 

280

 

 

(867

)

Inventory

6,224

 

 

5,108

 

 

19

 

Prepaid expenses and other assets

2,889

 

 

960

 

 

(2,857

)

Leased right-of-use assets

109

 

 

1,309

 

 

 

Accounts payable, accrued expenses and other current liabilities

2,692

 

 

(6,313

)

 

5,410

 

Accrued compensation

607

 

 

730

 

 

2,387

 

Accrued price protection liability

(1,097

)

 

2,291

 

 

2,036

 

Lease liabilities

(1,655

)

 

(2,183

)

 

 

Other long-term liabilities

(613

)

 

749

 

 

(227

)

Net cash provided by operating activities

28,107

 

 

21,752

 

 

24,173

 

Investing Activities

 

 

 

 

 

Purchases of property and equipment

(2,989

)

 

(1,219

)

 

(1,412

)

Purchases of intangible assets

 

 

(86

)

 

 

Net cash used in investing activities

(2,989

)

 

(1,305

)

 

(1,412

)

Financing Activities

 

 

 

 

 

Repayment of debt

 

 

(20,000

)

 

(15,000

)

Net proceeds from issuance of common stock

2,382

 

 

288

 

 

2,732

 

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

(820

)

 

(1,339

)

 

(2,606

)

Net cash provided by (used in) financing activities

1,562

 

 

(21,051

)

 

(14,874

)

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

(87

)

 

90

 

 

(1,939

)

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

26,593

 

 

(514

)

 

5,948

 

Cash, cash equivalents and restricted cash at beginning of period

66,524

 

 

67,038

 

 

68,243

 

Cash, cash equivalents and restricted cash at end of period

$

93,117

 

 

$

66,524

 

 

$

74,191

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

Twelve Months Ended

 

December 31, 2019

 

December 31, 2018

Operating Activities

 

 

 

Net loss

$

(19,898

)

 

$

(26,199

)

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

 

 

 

Amortization and depreciation

66,401

 

 

79,027

 

Impairment losses

 

 

2,198

 

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

1,577

 

 

1,148

 

Stock-based compensation

32,060

 

 

31,721

 

Deferred income taxes

(15,693

)

 

(12,144

)

Loss on disposal of property and equipment

46

 

 

430

 

Impairment of leasehold improvements

1,442

 

 

735

 

Impairment of long-lived assets

9,240

 

 

 

Gain on extinguishment of lease liabilities

(10,437

)

 

 

(Gain) loss on foreign currency

760

 

 

(809

)

Excess tax benefits on stock-based awards

(4,064

)

 

(2,028

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

9,090

 

 

6,595

 

Inventory

10,195

 

 

11,696

 

Prepaid expenses and other assets

3,805

 

 

1,071

 

Leased right-of-use assets

3,044

 

 

 

Accounts payable, accrued expenses and other current liabilities

1,261

 

 

5,923

 

Accrued compensation

2,021

 

 

8,961

 

Deferred revenue and deferred profit

 

 

(138

)

Accrued price protection liability

(3,966

)

 

(5,117

)

Lease liabilities

(8,142

)

 

 

Other long-term liabilities

(394

)

 

(381

)

Net cash provided by operating activities

78,348

 

 

102,689

 

Investing Activities

 

 

 

Purchases of property and equipment

(6,887

)

 

(7,825

)

Purchases of intangible assets

(86

)

 

 

Net cash used in investing activities

(6,973

)

 

(7,825

)

Financing Activities

 

 

 

Repayment of debt

(50,000

)

 

(93,000

)

Net proceeds from issuance of common stock

8,603

 

 

6,839

 

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

(11,986

)

 

(7,623

)

Net cash used in financing activities

(53,383

)

 

(93,784

)

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

934

 

 

(1,301

)

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

18,926

 

 

(221

)

Cash, cash equivalents and restricted cash at beginning of period

74,191

 

 

74,412

 

Cash, cash equivalents and restricted cash at end of period

$

93,117

 

 

$

74,191

 

MAXLINEAR, INC.

UNAUDITED GAAP CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

 

 

 

 

December 31, 2019

 

September 30, 2019

 

December 31, 2018 (1)

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

92,708

 

 

$

66,115

 

 

$

73,142

 

Short-term restricted cash

349

 

 

345

 

 

645

 

Accounts receivable, net

50,411

 

 

56,339

 

 

59,491

 

Inventory

31,510

 

 

37,642

 

 

41,738

 

Prepaid expenses and other current assets

6,792

 

 

4,679

 

 

10,357

 

Total current assets

181,770

 

 

165,120

 

 

185,373

 

Long-term restricted cash

60

 

 

64

 

 

404

 

Property and equipment, net

16,613

 

 

15,204

 

 

18,404

 

Leased right-of-use assets

10,978

 

 

18,719

 

 

 

Intangible assets, net

187,971

 

 

202,217

 

 

244,900

 

Goodwill

238,330

 

 

238,330

 

 

238,330

 

Deferred tax assets

67,284

 

 

64,046

 

 

51,518

 

Other long-term assets

2,785

 

 

3,065

 

 

4,664

 

Total assets

$

705,791

 

 

$

706,765

 

 

$

743,593

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities

$

66,562

 

 

$

63,119

 

 

$

75,329

 

Long-term lease liabilities

9,335

 

 

14,995

 

 

4,097

 

Long-term debt

206,909

 

 

206,622

 

 

255,757

 

Other long-term liabilities

8,065

 

 

8,678

 

 

8,474

 

Stockholders’ equity

414,920

 

 

413,351

 

 

399,936

 

Total liabilities and stockholders’ equity

$

705,791

 

 

$

706,765

 

 

$

743,593

 

_____________
(1) Certain balances have been reclassified to conform to current period presentation.

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

 

 

Three Months Ended

 

December 31, 2019

 

September 30, 2019

 

December 31, 2018

GAAP gross profit

$

36,624

 

 

$

41,904

 

 

$

45,900

 

Stock-based compensation

149

 

 

151

 

 

132

 

Performance based equity

(21

)

 

 

 

56

 

Amortization of purchased intangible assets

8,513

 

 

8,477

 

 

8,875

 

Non-GAAP gross profit

45,265

 

 

50,532

 

 

54,963

 

 

 

 

 

 

 

GAAP R&D expenses

23,467

 

 

23,174

 

 

29,667

 

Stock-based compensation

(3,955

)

 

(4,155

)

 

(4,399

)

Performance based equity

(421

)

 

(45

)

 

(1,254

)

Depreciation of fixed asset step-up

 

 

 

 

(76

)

Non-GAAP R&D expenses

19,091

 

 

18,974

 

 

23,938

 

 

 

 

 

 

 

GAAP SG&A expenses

20,924

 

 

21,920

 

 

25,208

 

Stock-based compensation

(3,643

)

 

(4,068

)

 

(3,481

)

Performance based equity

(604

)

 

(279

)

 

(948

)

Amortization of purchased intangible assets

(5,723

)

 

(5,722

)

 

(7,994

)

Depreciation of fixed asset step-up

 

 

 

 

(2

)

IP litigation costs, net

3

 

 

(71

)

 

(3

)

Non-GAAP SG&A expenses

10,957

 

 

11,780

 

 

12,780

 

 

 

 

 

 

 

GAAP restructuring expenses

159

 

 

144

 

 

1,737

 

Restructuring charges

(159

)

 

(144

)

 

(1,737

)

Non-GAAP restructuring expenses

 

 

 

 

 

 

 

 

 

 

 

GAAP loss from operations

(7,926

)

 

(3,334

)

 

(10,712

)

Total non-GAAP adjustments

23,143

 

 

23,112

 

 

28,957

 

Non-GAAP income from operations

15,217

 

 

19,778

 

 

18,245

 

 

 

 

 

 

 

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

(2,863

)

 

(1,406

)

 

(2,941

)

Non-recurring gain on reversal of liability

 

 

(1,006

)

 

 

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

(2,863

)

 

(2,412

)

 

(2,941

)

 

 

 

 

 

 

GAAP loss before income taxes

(10,789

)

 

(4,740

)

 

(13,653

)

Total non-GAAP adjustments

23,143

 

 

22,106

 

 

28,957

 

Non-GAAP income before income taxes

12,354

 

 

17,366

 

 

15,304

 

 

 

 

 

 

 

GAAP income tax benefit

(2,685

)

 

(26

)

 

(13,964

)

Adjustment for non-cash tax benefits/expenses and effects of the Tax Act

3,303

 

 

894

 

 

15,035

 

Non-GAAP income tax provision

618

 

 

868

 

 

1,071

 

 

 

 

 

 

 

GAAP net income (loss)

(8,104

)

 

(4,714

)

 

311

 

Total non-GAAP adjustments before income taxes

23,143

 

 

22,106

 

 

28,957

 

Less: total tax adjustments

3,303

 

 

894

 

 

15,035

 

Non-GAAP net income

$

11,736

 

 

$

16,498

 

 

$

14,233

 

 

 

 

 

 

 

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

71,746

 

 

71,366

 

 

69,186

 

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

72,707

 

 

72,506

 

 

71,267

 

Non-GAAP basic net income per share

$

0.16

 

 

$

0.23

 

 

$

0.21

 

Non-GAAP diluted net income per share

$

0.16

 

 

$

0.23

 

 

$

0.20

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

 

 

Twelve Months Ended

 

December 31, 2019

 

December 31, 2018

GAAP gross profit

$

167,685

 

 

$

208,774

 

Stock-based compensation

577

 

 

489

 

Performance based equity

52

 

 

234

 

Amortization of purchased intangible assets

33,892

 

 

35,781

 

Depreciation of fixed asset step-up

 

 

303

 

Non-GAAP gross profit

202,206

 

 

245,581

 

 

 

 

 

GAAP R&D expenses

98,344

 

 

120,046

 

Stock-based compensation

(16,545

)

 

(17,953

)

Performance based equity

(1,391

)

 

(5,208

)

Depreciation of fixed asset step-up

(6

)

 

(1,050

)

Non-GAAP R&D expenses

80,402

 

 

95,835

 

 

 

 

 

GAAP SG&A expenses

88,762

 

 

101,789

 

Stock-based compensation

(14,938

)

 

(13,279

)

Performance based equity

(1,822

)

 

(3,512

)

Amortization of purchased intangible assets

(23,035

)

 

(31,976

)

Depreciation of fixed asset step-up

 

 

(36

)

IP litigation costs, net

(81

)

 

(83

)

Non-GAAP SG&A expenses

48,886

 

 

52,903

 

 

 

 

 

GAAP impairment losses

 

 

2,198

 

Impairment losses

 

 

(2,198

)

Non-GAAP impairment losses

 

 

 

 

 

 

 

GAAP restructuring expenses

2,636

 

 

3,838

 

Restructuring charges

(2,636

)

 

(3,838

)

Non-GAAP restructuring expenses

 

 

 

 

 

 

 

GAAP loss from operations

(22,057

)

 

(19,097

)

Total non-GAAP adjustments

94,975

 

 

115,940

 

Non-GAAP income from operations

72,918

 

 

96,843

 

 

 

 

 

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

(10,427

)

 

(13,755

)

Non-recurring gain on reversal of liability

(1,006

)

 

 

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

(11,433

)

 

(13,755

)

 

 

 

 

GAAP loss before income taxes

(32,484

)

 

(32,852

)

Total non-GAAP adjustments

93,969

 

 

115,940

 

Non-GAAP income before income taxes

61,485

 

 

83,088

 

 

 

 

 

GAAP income tax benefit

(12,586

)

 

(6,653

)

Adjustment for non-cash tax benefits/expenses and effects of the Tax Act

16,296

 

 

12,469

 

Non-GAAP income tax provision

3,710

 

 

5,816

 

 

 

 

 

GAAP net loss

(19,898

)

 

(26,199

)

Total non-GAAP adjustments before income taxes

93,969

 

 

115,940

 

Less: total tax adjustments

16,296

 

 

12,469

 

Non-GAAP net income

$

57,775

 

 

$

77,272

 

 

 

 

 

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

71,005

 

 

68,490

 

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

72,381

 

 

70,709

 

Non-GAAP basic net income per share

$

0.81

 

 

$

1.13

 

Non-GAAP diluted net income per share

$

0.80

 

 

$

1.09

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

Three Months Ended

 

December 31, 2019

 

September 30, 2019

 

December 31, 2018

GAAP gross profit

52.3

%

 

52.4

%

 

52.4

%

Stock-based compensation

0.2

%

 

0.2

%

 

0.2

%

Performance based equity

%

 

%

 

0.1

%

Amortization of purchased intangible assets

12.2

%

 

10.6

%

 

10.1

%

Non-GAAP gross profit

64.6

%

 

63.1

%

 

62.7

%

 

 

 

 

 

 

GAAP R&D expenses

33.5

%

 

29.0

%

 

33.9

%

Stock-based compensation

(5.6

)%

 

(5.2

)%

 

(5.0

)%

Performance based equity

(0.6

)%

 

(0.1

)%

 

(1.4

)%

Depreciation of fixed asset step-up

%

 

%

 

(0.1

)%

Non-GAAP R&D expenses

27.3

%

 

23.7

%

 

27.3

%

 

 

 

 

 

 

GAAP SG&A expenses

29.9

%

 

27.4

%

 

28.8

%

Stock-based compensation

(5.2

)%

 

(5.1

)%

 

(4.0

)%

Performance based equity

(0.9

)%

 

(0.3

)%

 

(1.1

)%

Amortization of purchased intangible assets

(8.2

)%

 

(7.2

)%

 

(9.1

)%

Depreciation of fixed asset step-up

%

 

%

 

%

IP litigation costs, net

%

 

(0.1

)%

 

%

Non-GAAP SG&A expenses

15.6

%

 

14.7

%

 

14.6

%

 

 

 

 

 

 

GAAP restructuring expenses

0.2

%

 

0.2

%

 

2.0

%

Restructuring charges

(0.2

)%

 

(0.2

)%

 

(2.0

)%

Non-GAAP restructuring expenses

%

 

%

 

%

 

 

 

 

 

 

GAAP loss from operations

(11.3

)%

 

(4.2

)%

 

(12.2

)%

Total non-GAAP adjustments

33.1

%

 

28.9

%

 

33.0

%

Non-GAAP income from operations

21.7

%

 

24.7

%

 

20.8

%

 

 

 

 

 

 

GAAP interest and other income (expense), net

(4.1

)%

 

(1.8

)%

 

(3.4

)%

Nonrecurring gain on reversal of liability

%

 

(1.3

)%

 

%

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

(4.1

)%

 

(3.0

)%

 

(3.4

)%

 

 

 

 

 

 

GAAP loss before income taxes

(15.4

)%

 

(5.9

)%

 

(15.6

)%

Total non-GAAP adjustments before income taxes

33.1

%

 

27.6

%

 

33.0

%

Non-GAAP income before income taxes

17.6

%

 

21.7

%

 

17.5

%

 

 

 

 

 

 

GAAP income tax benefit

(3.8

)%

 

%

 

(15.9

)%

Adjustment for non-cash tax benefits/expenses and the effects of the Tax Act

4.7

%

 

1.1

%

 

17.2

%

Non-GAAP income tax provision

0.9

%

 

1.1

%

 

1.2

%

 

 

 

 

 

 

GAAP net income (loss)

(11.6

)%

 

(5.9

)%

 

0.4

%

Total non-GAAP adjustments before income taxes

33.1

%

 

27.6

%

 

33.0

%

Less: total tax adjustments

4.7

%

 

1.1

%

 

17.2

%

Non-GAAP net income

16.8

%

 

20.6

%

 

16.2

%

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

 

 

Twelve Months Ended

 

December 31, 2019

 

December 31, 2018

GAAP gross profit

52.9

%

 

54.2

%

Stock-based compensation

0.2

%

 

0.1

%

Performance based equity

%

 

0.1

%

Amortization of purchased intangible assets

10.7

%

 

9.3

%

Depreciation of fixed asset step-up

%

 

0.1

%

Non-GAAP gross profit

63.8

%

 

63.8

%

 

 

 

 

GAAP R&D expenses

31.0

%

 

31.2

%

Stock-based compensation

(5.2

)%

 

(4.7

)%

Performance based equity

(0.4

)%

 

(1.4

)%

Depreciation of fixed asset step-up

%

 

(0.3

)%

Non-GAAP R&D expenses

25.3

%

 

24.9

%

 

 

 

 

GAAP SG&A expenses

28.0

%

 

26.4

%

Stock-based compensation

(4.7

)%

 

(3.4

)%

Performance based equity

(0.6

)%

 

(0.9

)%

Amortization of purchased intangible assets

(7.3

)%

 

(8.3

)%

Depreciation of fixed asset step-up

%

 

%

IP litigation costs, net

%

 

%

Non-GAAP SG&A expenses

15.4

%

 

13.7

%

 

 

 

 

GAAP impairment losses

%

 

0.6

%

Impairment losses

%

 

(0.6

)%

Non-GAAP impairment losses

%

 

%

 

 

 

 

GAAP restructuring expenses

0.8

%

 

1.0

%

Restructuring charges

(0.8

)%

 

(1.0

)%

Non-GAAP restructuring expenses

%

 

%

 

 

 

 

GAAP loss from operations

(7.0

)%

 

(5.0

)%

Total non-GAAP adjustments

29.9

%

 

30.1

%

Non-GAAP income from operations

23.0

%

 

25.2

%

 

 

 

 

GAAP interest and other income (expense), net

(3.3

)%

 

(3.6

)%

Nonrecurring gain on reversal of liability

(0.3

)%

 

%

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

(3.6

)%

 

(3.6

)%

 

 

 

 

GAAP loss before income taxes

(10.2

)%

 

(8.5

)%

Total non-GAAP adjustments before income taxes

29.6

%

 

30.1

%

Non-GAAP income before income taxes

19.4

%

 

21.6

%

 

 

 

 

GAAP income tax benefit

(4.0

)%

 

(1.7

)%

Adjustment for non-cash tax benefits/expenses and the effects of the Tax Act

5.1

%

 

3.2

%

Non-GAAP income tax provision

1.2

%

 

1.5

%

 

 

 

 

GAAP net loss

(6.3

)%

 

(6.8

)%

Total non-GAAP adjustments before income taxes

29.6

%

 

30.1

%

Less: total tax adjustments

5.1

%

 

3.2

%

Non-GAAP net income

18.2

%

 

20.1

%

 



Contact:

MaxLinear, Inc. Investor Relations Contact:
Steven Litchfield
Tel: 949-333-0080
slitchfield@maxlinear.com