MXL MaxLinear Inc

• Net revenue of $81.1 million in Q3, GAAP gross margin of 54.4% and non-GAAP gross margin of 58.7%

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, 2024.

Third Quarter Financial Highlights

GAAP basis:

• Net revenue was $81.1 million, down 12% sequentially and down 40% year-over-year.
• GAAP gross margin was 54.4%, compared to 54.6% in the prior quarter, and 54.6% in the year-ago quarter.
• GAAP operating expenses were $110.8 million in the third quarter 2024, or 137% of net revenue, compared to $91.0 million in the prior quarter, or 99% of net revenue, and $91.8 million in the year-ago quarter, or 68% of net revenue.
• GAAP loss from operations was 82% of net revenue, compared to loss from operations of 44% of net revenue in the prior quarter, and loss from operations of 13% of net revenue in the year-ago quarter.
• Net cash flow used in operating activities was $30.7 million, compared to net cash flow used in operating activities of $2.7 million in the prior quarter, and net cash flow used in operating activities of $12.8 million in the year-ago quarter.
• GAAP diluted loss per share was $0.90, compared to diluted loss per share of $0.47 in the prior quarter, and diluted loss per share of $0.49 in the year-ago quarter.

Non-GAAP basis:

• Non-GAAP gross margin was 58.7%. This compares to 60.2% in the prior quarter, and 60.8% in the year-ago quarter.
• Non-GAAP operating expenses were $72.8 million, or 90% of net revenue, compared to $74.8 million or 81% of net revenue in the prior quarter, and $75.1 million or 55% of net revenue in the year-ago quarter.
• Non-GAAP loss from operations was 31% of net revenue, compared to loss of 21% in the prior quarter, and income of 5% in the year-ago quarter.
• Non-GAAP diluted loss per share was $0.36, compared to loss of $0.25 in the prior quarter, and earnings of $0.02 in the year-ago quarter.

Management Commentary

“We are pleased to see encouraging signs of recovery in our business, including another quarter of improvement in customer orders and continued progress in new product traction,” said Kishore Seendripu, PhD, Chairman and CEO. “In particular, we are on track to exit the year at a run rate greater than one million units per year of our high-speed optical interconnect products as customers prepare for the industry transition to 800Gig and beyond. In addition, design win activity and customer success in fiber PON gateways, Ethernet, storage, and Wi-Fi7 position us for renewed growth and earnings improvement in the fourth quarter and beyond.”

Fourth Quarter 2024 Business Outlook

The company expects net revenue in the fourth quarter of 2024 to be approximately $80 million to $100 million. The Company also estimates the following:

• GAAP gross margin of approximately 54.0% to 57.0%;
• Non-GAAP gross margin of approximately 57.5% to 60.5%;
• GAAP operating expenses of approximately $88 million to $94 million;
• Non-GAAP operating expenses of approximately $58 million to $64 million;
• GAAP and non-GAAP interest and other expense of approximately $1.0 million to $2.5 million each; and
• GAAP and non-GAAP diluted share count of approximately 84.5 million each.

Webcast and Conference Call

MaxLinear will host its third quarter financial results conference call today, October 23, 2024 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 6, 2024. A replay of the conference call will also be available until November 6, 2024 by dialing US toll free: 1-877-660-6853 / International: 1-201-612-7415 and Conference ID#: 13749152.

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 our current guidance for fourth quarter 2024 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); our potential growth and revenue opportunities; market trends; settlement of bonus awards for our 2024 performance period; 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 and on our revenue; 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; costs of legal proceedings or potential violations of regulations; information technology failures; 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; delays or expenses caused by undetected defects or bugs in our products; substantial quarterly and annual fluctuations in our revenue and operating results; 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; failure to attract and retain qualified personnel; any adverse impact of rising interest rates on us, our customers, and our distributors and related demand; risks related to compliance with privacy, data protection and cybersecurity laws and regulations; risks related to conforming our products to industry standards; risks related to business acquisitions and investments; claims of intellectual property infringement; our ability to protect our intellectual property; risks related to security vulnerabilities of our products; use of open source software in our products; and 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 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 quarterly period ended September 30, 2024. All forward-looking statements are based on the estimates, projections and assumptions of management as of October 23, 2024, 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 (loss) from operations, non-GAAP income (loss) from operations as percentage of revenue, non-GAAP interest and other income (expense), non-GAAP diluted earnings (loss) 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 2024, which we intend to settle in shares of our common stock; (iii) accruals related to our performance-based bonus plan for 2023, which we settled in shares of common stock in February 2024; (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 impairment of investments in a privately held entity and ticking fees paid to lenders in August 2023 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 or loss.

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 or loss for all periods reported. Bonus payments for the 2023 performance periods were settled through the issuance of shares of common stock under our equity incentive plans in February 2024. We currently expect that bonus awards under our fiscal 2024 program will be settled in common stock in the first quarter of fiscal 2025.

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.

Other expense also includes losses from impairment of privately held investments.

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 2024.

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, 2024

 

June 30, 2024

 

September 30, 2023

Net revenue

$

81,102

 

 

$

91,990

 

 

$

135,530

 

Cost of net revenue

 

37,022

 

 

 

41,804

 

 

 

61,586

 

Gross profit

 

44,080

 

 

 

50,186

 

 

 

73,944

 

Operating expenses:

 

 

 

 

 

Research and development

 

52,604

 

 

 

56,541

 

 

 

66,306

 

Selling, general and administrative

 

30,154

 

 

 

33,600

 

 

 

25,402

 

Impairment losses

 

1,237

 

 

 

—

 

 

 

—

 

Restructuring charges

 

26,828

 

 

 

865

 

 

 

54

 

Total operating expenses

 

110,823

 

 

 

91,006

 

 

 

91,762

 

Loss from operations

 

(66,743

)

 

 

(40,820

)

 

 

(17,818

)

Interest income

 

1,653

 

 

 

1,871

 

 

 

1,736

 

Interest expense

 

(2,655

)

 

 

(2,706

)

 

 

(2,715

)

Other income (expense), net

 

(14,753

)

 

 

329

 

 

 

(22,721

)

Total other income (expense), net

 

(15,755

)

 

 

(506

)

 

 

(23,700

)

Loss before income taxes

 

(82,498

)

 

 

(41,326

)

 

 

(41,518

)

Income tax benefit

 

(6,713

)

 

 

(2,060

)

 

 

(1,689

)

Net loss

$

(75,785

)

 

$

(39,266

)

 

$

(39,829

)

Net loss per share:

 

 

 

 

 

Basic

$

(0.90

)

 

$

(0.47

)

 

$

(0.49

)

Diluted

$

(0.90

)

 

$

(0.47

)

 

$

(0.49

)

Shares used to compute net loss per share:

 

 

 

 

 

Basic

 

84,074

 

 

 

83,477

 

 

 

81,249

 

Diluted

 

84,074

 

 

 

83,477

 

 

 

81,249

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

 

 

 

 

 

 

Nine Months Ended

 

 

September 30, 2024

 

September 30, 2023

Net revenue

 

$

268,361

 

 

$

567,910

 

Cost of net revenue

 

 

124,827

 

 

 

250,786

 

Gross profit

 

 

143,534

 

 

 

317,124

 

Operating expenses:

 

 

 

 

Research and development

 

 

173,911

 

 

 

204,254

 

Selling, general and administrative

 

 

100,242

 

 

 

97,772

 

Impairment losses

 

 

1,237

 

 

 

2,438

 

Restructuring charges

 

 

50,323

 

 

 

9,138

 

Total operating expenses

 

 

325,713

 

 

 

313,602

 

Income (loss) from operations

 

 

(182,179

)

 

 

3,522

 

Interest income

 

 

5,346

 

 

 

4,272

 

Interest expense

 

 

(8,072

)

 

 

(7,793

)

Other income (expense), net

 

 

(12,990

)

 

 

(21,180

)

Total other income (expense), net

 

 

(15,716

)

 

 

(24,701

)

Loss before income taxes

 

 

(197,895

)

 

 

(21,179

)

Income tax provision (benefit)

 

 

(10,535

)

 

 

13,468

 

Net loss

 

$

(187,360

)

 

$

(34,647

)

Net loss per share:

 

 

 

 

Basic

 

$

(2.25

)

 

$

(0.43

)

Diluted

 

$

(2.25

)

 

$

(0.43

)

Shares used to compute net loss per share:

 

 

 

 

Basic

 

 

83,303

 

 

 

80,395

 

Diluted

 

 

83,303

 

 

 

80,395

 

 

 

 

 

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

Three Months Ended

 

September 30, 2024

June 30, 2024

September 30, 2023

Operating Activities

 

 

 

Net loss

$

(75,785

)

$

(39,266

)

$

(39,829

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Amortization and depreciation

 

12,142

 

 

13,600

 

 

17,014

 

Impairment of intangible assets

 

1,237

 

 

—

 

 

—

 

Impairment of investments and other assets

 

14,000

 

 

—

 

 

—

 

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

 

637

 

 

665

 

 

685

 

Stock-based compensation

 

12,788

 

 

17,359

 

 

5,118

 

Deferred income taxes

 

(8,320

)

 

(2,053

)

 

(2,384

)

Loss on disposal of property and equipment

 

623

 

 

55

 

 

16

 

Unrealized holding loss on investments

 

—

 

 

—

 

 

5,876

 

Impairment of leased right-of-use assets

 

677

 

 

700

 

 

—

 

(Gain) loss on extinguishment of lease liabilities

 

(1

)

 

16

 

 

—

 

Gain on settlement of pension

 

—

 

 

—

 

 

(1,008

)

(Gain) loss on foreign currency and other

 

2,339

 

 

(398

)

 

(13

)

Excess tax (benefits) deficiencies on stock based awards

 

(1,469

)

 

(152

)

 

769

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

37,010

 

 

41,290

 

 

(2,398

)

Inventory

 

(1,325

)

 

1,387

 

 

11,210

 

Prepaid expenses and other assets

 

(7,852

)

 

1,281

 

 

(4,563

)

Accounts payable, accrued expenses and other current liabilities

 

(3,770

)

 

(24,280

)

 

9,347

 

Accrued compensation

 

159

 

 

(5,855

)

 

4,914

 

Accrued price protection liability

 

(17,158

)

 

(3,603

)

 

(11,995

)

Lease liabilities

 

(2,761

)

 

(2,540

)

 

(2,882

)

Other long-term liabilities

 

6,098

 

 

(902

)

 

(2,669

)

Net cash used in operating activities

 

(30,731

)

 

(2,696

)

 

(12,792

)

Investing Activities

 

 

 

Purchases of property and equipment

 

(4,132

)

 

(3,013

)

 

(1,927

)

Purchases of intangible assets

 

(1,818

)

 

(2,775

)

 

(674

)

Net cash used in investing activities

 

(5,950

)

 

(5,788

)

 

(2,601

)

Financing Activities

 

 

 

Payment of debt commitment fees

 

—

 

 

—

 

 

(18,325

)

Net proceeds from issuance of common stock

 

—

 

 

1,579

 

 

92

 

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

 

(58

)

 

447

 

 

(3,232

)

Net cash provided by (used in) financing activities

 

(58

)

 

2,026

 

 

(21,465

)

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

 

94

 

 

(335

)

 

(633

)

Decrease in cash, cash equivalents and restricted cash

 

(36,645

)

 

(6,793

)

 

(37,491

)

Cash, cash equivalents and restricted cash at beginning of period

 

186,137

 

 

192,930

 

 

225,643

 

Cash, cash equivalents and restricted cash at end of period

$

149,492

 

$

186,137

 

$

188,152

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

 

 

 

 

Nine Months Ended

 

 

September 30, 2024

 

September 30, 2023

Operating Activities

 

 

 

 

Net loss

 

$

(187,360

)

 

$

(34,647

)

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

 

 

 

 

Amortization and depreciation

 

 

42,426

 

 

 

54,923

 

Impairment of intangible assets

 

 

1,237

 

 

 

2,438

 

Impairment of investments and other assets

 

 

14,000

 

 

 

—

 

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

 

 

1,990

 

 

 

1,858

 

Stock-based compensation

 

 

47,208

 

 

 

38,763

 

Deferred income taxes

 

 

(13,058

)

 

 

6,502

 

Loss on disposal of property and equipment

 

 

1,068

 

 

 

2,057

 

Unrealized holding loss on investments

 

 

—

 

 

 

3,917

 

Impairment of leased right-of-use assets

 

 

3,415

 

 

 

—

 

Gain on settlement of pension

 

 

—

 

 

 

(1,008

)

Gain on extinguishment of lease liabilities

 

 

(554

)

 

 

—

 

Loss on foreign currency

 

 

973

 

 

 

140

 

Excess tax benefits on stock-based awards

 

 

(2,988

)

 

 

(529

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable, net

 

 

122,689

 

 

 

13,769

 

Inventory

 

 

3,845

 

 

 

45,602

 

Prepaid expenses and other assets

 

 

(8,615

)

 

 

(10,215

)

Accounts payable, accrued expenses and other current liabilities

 

 

(16,041

)

 

 

(17,917

)

Accrued compensation

 

 

3,011

 

 

 

8,776

 

Accrued price protection liability

 

 

(27,212

)

 

 

(45,036

)

Lease liabilities

 

 

(7,806

)

 

 

(8,891

)

Other long-term liabilities

 

 

4,315

 

 

 

(557

)

Net cash provided by (used in) operating activities

 

 

(17,457

)

 

 

59,945

 

Investing Activities

 

 

 

 

Purchases of property and equipment

 

 

(15,487

)

 

 

(12,180

)

Purchases of intangible assets

 

 

(4,961

)

 

 

(6,198

)

Cash used in acquisitions, net of cash acquired

 

 

—

 

 

 

(12,384

)

Net cash used in investing activities

 

 

(20,448

)

 

 

(30,762

)

Financing Activities

 

 

 

 

Payment of debt commitment fees

 

 

—

 

 

 

(18,325

)

Net proceeds from issuance of common stock

 

 

1,579

 

 

 

3,168

 

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

 

 

(1,714

)

 

 

(12,370

)

Net cash used in financing activities

 

 

(135

)

 

 

(27,527

)

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

 

 

(824

)

 

 

(1,861

)

Decrease in cash, cash equivalents and restricted cash

 

 

(38,864

)

 

 

(205

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

188,356

 

 

 

188,357

 

Cash, cash equivalents and restricted cash at end of period

 

$

149,492

 

 

$

188,152

 

MAXLINEAR, INC.

UNAUDITED GAAP CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

September 30, 2024

 

June 30, 2024

 

September 30, 2023

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

148,476

 

$

185,108

 

$

187,028

Short-term restricted cash

 

993

 

 

1,006

 

 

1,105

Short-term investments

 

—

 

 

—

 

 

14,612

Accounts receivable, net

 

47,930

 

 

84,940

 

 

158,232

Inventory

 

96,063

 

 

94,738

 

 

114,942

Prepaid expenses and other current assets

 

34,798

 

 

31,789

 

 

32,688

Total current assets

 

328,260

 

 

397,581

 

 

508,607

Long-term restricted cash

 

23

 

 

23

 

 

19

Property and equipment, net

 

63,493

 

 

65,422

 

 

69,484

Leased right-of-use assets

 

22,549

 

 

24,883

 

 

32,647

Intangible assets, net

 

58,031

 

 

61,786

 

 

82,643

Goodwill

 

318,588

 

 

318,588

 

 

318,456

Deferred tax assets

 

82,552

 

 

74,228

 

 

59,121

Other long-term assets

 

21,807

 

 

30,686

 

 

32,810

Total assets

$

895,303

 

$

973,197

 

$

1,103,787

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities

$

168,597

 

$

190,277

 

$

232,910

Long-term lease liabilities

 

19,433

 

 

21,522

 

 

28,017

Long-term debt

 

122,840

 

 

122,684

 

 

122,219

Other long-term liabilities

 

27,561

 

 

21,459

 

 

17,964

Stockholders’ equity

 

556,872

 

 

617,255

 

 

702,677

Total liabilities and stockholders’ equity

$

895,303

 

$

973,197

 

$

1,103,787

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

 

Three Months Ended

 

September 30, 2024

 

June 30, 2024

 

September 30, 2023

GAAP gross profit

$

44,080

 

 

$

50,186

 

 

$

73,944

 

Stock-based compensation

 

81

 

 

 

173

 

 

 

170

 

Performance based equity

 

(19

)

 

 

(37

)

 

 

19

 

Amortization of purchased intangible assets

 

3,498

 

 

 

5,089

 

 

 

8,332

 

Non-GAAP gross profit

 

47,640

 

 

 

55,411

 

 

 

82,465

 

 

 

 

 

 

 

GAAP R&D expenses

 

52,604

 

 

 

56,541

 

 

 

66,306

 

Stock-based compensation

 

(7,423

)

 

 

(10,088

)

 

 

(9,436

)

Performance based equity

 

775

 

 

 

1,789

 

 

 

(2,288

)

Research and development funded by others

 

3,000

 

 

 

—

 

 

 

(5,500

)

Non-GAAP R&D expenses

 

48,956

 

 

 

48,242

 

 

 

49,082

 

 

 

 

 

 

 

GAAP SG&A expenses

 

30,154

 

 

 

33,600

 

 

 

25,402

 

Stock-based compensation

 

(5,284

)

 

 

(7,097

)

 

 

4,488

 

Performance based equity

 

384

 

 

 

722

 

 

 

(999

)

Amortization of purchased intangible assets

 

(591

)

 

 

(592

)

 

 

(653

)

Acquisition and integration costs

 

(801

)

 

 

(102

)

 

 

(2,172

)

Non-GAAP SG&A expenses

 

23,862

 

 

 

26,531

 

 

 

26,066

 

 

 

 

 

 

 

GAAP impairment losses

 

1,237

 

 

 

—

 

 

 

—

 

Impairment losses

 

(1,237

)

 

 

—

 

 

 

—

 

Non-GAAP impairment losses

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

GAAP restructuring expenses

 

26,828

 

 

 

865

 

 

 

54

 

Restructuring charges

 

(26,828

)

 

 

(865

)

 

 

(54

)

Non-GAAP restructuring expenses

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

GAAP loss from operations

 

(66,743

)

 

 

(40,820

)

 

 

(17,818

)

Total non-GAAP adjustments

 

41,565

 

 

 

21,458

 

 

 

25,135

 

Non-GAAP income (loss) from operations

 

(25,178

)

 

 

(19,362

)

 

 

7,317

 

 

 

 

 

 

 

GAAP interest and other income (expense), net

 

(15,755

)

 

 

(506

)

 

 

(23,700

)

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

 

11,769

 

 

 

65

 

 

 

18,395

 

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

 

(3,986

)

 

 

(441

)

 

 

(5,305

)

 

 

 

 

 

 

GAAP loss before income taxes

 

(82,498

)

 

 

(41,326

)

 

 

(41,518

)

Total non-GAAP adjustments

 

53,334

 

 

 

21,523

 

 

 

43,530

 

Non-GAAP income (loss) before income taxes

 

(29,164

)

 

 

(19,803

)

 

 

2,012

 

 

 

 

 

 

 

GAAP income tax benefit

 

(6,713

)

 

 

(2,060

)

 

 

(1,689

)

Adjustment for non-cash tax benefits/expenses

 

7,568

 

 

 

3,205

 

 

 

1,891

 

Non-GAAP income tax provision

 

855

 

 

 

1,145

 

 

 

202

 

 

 

 

 

 

 

GAAP net loss

 

(75,785

)

 

 

(39,266

)

 

 

(39,829

)

Total non-GAAP adjustments before income taxes

 

53,334

 

 

 

21,523

 

 

 

43,530

 

Less: total tax adjustments

 

7,568

 

 

 

3,205

 

 

 

1,891

 

Non-GAAP net income (loss)

$

(30,019

)

 

$

(20,948

)

 

$

1,810

 

 

 

 

 

 

 

Shares used in computing GAAP and non-GAAP basic net income (loss) per share

 

84,074

 

 

 

83,477

 

 

 

81,249

 

Shares used in computing GAAP diluted net loss per share

 

84,074

 

 

 

83,477

 

 

 

81,249

 

Dilutive common stock equivalents

 

—

 

 

 

—

 

 

 

719

 

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

 

84,074

 

 

 

83,477

 

 

 

81,968

 

Non-GAAP basic net income (loss) per share

$

(0.36

)

 

$

(0.25

)

 

$

0.02

 

Non-GAAP diluted net income (loss) per share

$

(0.36

)

 

$

(0.25

)

 

$

0.02

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

 

 

 

 

Nine months ended

 

September 30, 2024

 

September 30, 2023

GAAP gross profit

$

143,534

 

 

$

317,124

 

Stock-based compensation

 

435

 

 

 

626

 

Performance based equity

 

16

 

 

 

94

 

Amortization of purchased intangible assets

 

16,808

 

 

 

26,770

 

Non-GAAP gross profit

 

160,793

 

 

 

344,614

 

 

 

 

 

GAAP R&D expenses

 

173,911

 

 

 

204,254

 

Stock-based compensation

 

(27,952

)

 

 

(33,128

)

Performance based equity

 

(2,365

)

 

 

(5,650

)

Research and development funded by others

 

2,000

 

 

 

(7,500

)

Non-GAAP R&D expenses

 

145,594

 

 

 

157,976

 

 

 

 

 

GAAP SG&A expenses

 

100,242

 

 

 

97,772

 

Stock-based compensation

 

(18,820

)

 

 

(5,009

)

Performance based equity

 

(1,321

)

 

 

(2,550

)

Amortization of purchased intangible assets

 

(1,774

)

 

 

(2,290

)

Acquisition and integration costs

 

(1,567

)

 

 

(7,487

)

Non-GAAP SG&A expenses

 

76,760

 

 

 

80,436

 

 

 

 

 

GAAP impairment losses

 

1,237

 

 

 

2,438

 

Impairment losses

 

(1,237

)

 

 

(2,438

)

Non-GAAP impairment losses

 

—

 

 

 

—

 

 

 

 

 

GAAP restructuring expenses

 

50,323

 

 

 

9,138

 

Restructuring charges

 

(50,323

)

 

 

(9,138

)

Non-GAAP restructuring expenses

 

—

 

 

 

—

 

 

 

 

 

GAAP income (loss) from operations

 

(182,179

)

 

 

3,522

 

Total non-GAAP adjustments

 

120,618

 

 

 

102,680

 

Non-GAAP income (loss) from operations

 

(61,561

)

 

 

106,202

 

 

 

 

 

GAAP interest and other income (expense), net

 

(15,716

)

 

 

(24,701

)

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

 

11,907

 

 

 

18,574

 

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

 

(3,809

)

 

 

(6,127

)

 

 

 

 

GAAP loss before income taxes

 

(197,895

)

 

 

(21,179

)

Total non-GAAP adjustments

 

132,525

 

 

 

121,254

 

Non-GAAP income (loss) before income taxes

 

(65,370

)

 

 

100,075

 

 

 

 

 

GAAP income tax provision (benefit)

 

(10,535

)

 

 

13,468

 

Adjustment for non-cash tax benefits/expenses

 

13,535

 

 

 

(3,460

)

Non-GAAP income tax provision

 

3,000

 

 

 

10,008

 

 

 

 

 

GAAP net loss

 

(187,360

)

 

 

(34,647

)

Total non-GAAP adjustments before income taxes

 

132,525

 

 

 

121,254

 

Less: total tax adjustments

 

13,535

 

 

 

(3,460

)

Non-GAAP net income (loss)

$

(68,370

)

 

$

90,067

 

 

 

 

 

Shares used in computing GAAP and non-GAAP basic net income (loss) per share

 

83,303

 

 

 

80,395

 

Shares used in computing GAAP diluted net loss per share

 

83,303

 

 

 

80,395

 

Dilutive common stock equivalents

 

—

 

 

 

1,279

 

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

 

83,303

 

 

 

81,674

 

Non-GAAP basic net income (loss) per share

$

(0.82

)

 

$

1.12

 

Non-GAAP diluted net income (loss) per share

$

(0.82

)

 

$

1.10

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES AS A PERCENTAGE OF NET REVENUE

 

 

Three Months Ended

 

September 30, 2024

 

June 30, 2024

 

September 30, 2023

GAAP gross margin

54.4

%

 

54.6

%

 

54.6

%

Stock-based compensation

0.1

%

 

0.2

%

 

0.1

%

Performance based equity

—

%

 

—

%

 

—

%

Amortization of purchased intangible assets

4.3

%

 

5.5

%

 

6.2

%

Non-GAAP gross margin

58.7

%

 

60.2

%

 

60.8

%

 

 

 

 

 

 

GAAP R&D expenses

64.9

%

 

61.5

%

 

48.9

%

Stock-based compensation

(9.2

)%

 

(11.0

)%

 

(7.0

)%

Performance based equity

1.0

%

 

1.9

%

 

(1.7

)%

Research and development funded by others

3.7

%

 

—

%

 

(4.1

)%

Non-GAAP R&D expenses

60.4

%

 

52.4

%

 

36.2

%

 

 

 

 

 

 

GAAP SG&A expenses

37.2

%

 

36.5

%

 

18.7

%

Stock-based compensation

(6.5

)%

 

(7.7

)%

 

3.3

%

Performance based equity

0.5

%

 

0.8

%

 

(0.7

)%

Amortization of purchased intangible assets

(0.7

)%

 

(0.6

)%

 

(0.5

)%

Acquisition and integration costs

(1.0

)%

 

(0.1

)%

 

(1.6

)%

Non-GAAP SG&A expenses

29.4

%

 

28.8

%

 

19.2

%

 

 

 

 

 

 

GAAP impairment losses

1.5

%

 

—

%

 

—

%

Impairment losses

(1.5

)%

 

—

%

 

—

%

Non-GAAP impairment losses

—

%

 

—

%

 

—

%

 

 

 

 

 

 

GAAP restructuring expenses

33.1

%

 

0.9

%

 

—

%

Restructuring charges

(33.1

)%

 

(0.9

)%

 

—

%

Non-GAAP restructuring expenses

—

%

 

—

%

 

—

%

 

 

 

 

 

 

GAAP loss from operations

(82.3

)%

 

(44.4

)%

 

(13.2

)%

Total non-GAAP adjustments

51.3

%

 

23.3

%

 

18.6

%

Non-GAAP income (loss) from operations

(31.0

)%

 

(21.0

)%

 

5.4

%

 

 

 

 

 

 

GAAP interest and other income (expense), net

(19.4

)%

 

(0.6

)%

 

(17.5

)%

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

14.5

%

 

0.1

%

 

13.6

%

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

(4.9

)%

 

(0.5

)%

 

(3.9

)%

 

 

 

 

 

 

GAAP loss before income taxes

(101.7

)%

 

(44.9

)%

 

(30.6

)%

Total non-GAAP adjustments before income taxes

65.8

%

 

23.4

%

 

32.1

%

Non-GAAP income (loss) before income taxes

(36.0

)%

 

(21.5

)%

 

1.5

%

 

 

 

 

 

 

GAAP income tax benefit

(8.3

)%

 

(2.2

)%

 

(1.3

)%

Adjustment for non-cash tax benefits/expenses

9.3

%

 

3.5

%

 

1.4

%

Non-GAAP income tax provision

1.1

%

 

1.2

%

 

0.2

%

 

 

 

 

 

 

GAAP net loss

(93.4

)%

 

(42.7

)%

 

(29.4

)%

Total non-GAAP adjustments before income taxes

65.8

%

 

23.4

%

 

32.1

%

Less: total tax adjustments

9.3

%

 

3.5

%

 

1.4

%

Non-GAAP net income (loss)

(37.0

)%

 

(22.8

)%

 

1.3

%

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES AS A PERCENTAGE OF NET REVENUE

 

 

 

 

 

Nine months ended

 

September 30, 2024

 

September 30, 2023

GAAP gross margin

53.5

%

 

55.8

%

Stock-based compensation

0.2

%

 

0.1

%

Performance based equity

—

%

 

—

%

Amortization of purchased intangible assets

6.3

%

 

4.7

%

Non-GAAP gross margin

59.9

%

 

60.7

%

 

 

 

 

GAAP R&D expenses

64.8

%

 

36.0

%

Stock-based compensation

(10.4

)%

 

(5.8

)%

Performance based equity

(0.9

)%

 

(1.0

)%

Research and development funded by others

0.8

%

 

(1.3

)%

Non-GAAP R&D expenses

54.3

%

 

27.8

%

 

 

 

 

GAAP SG&A expenses

37.4

%

 

17.2

%

Stock-based compensation

(7.0

)%

 

(0.9

)%

Performance based equity

(0.5

)%

 

(0.5

)%

Amortization of purchased intangible assets

(0.7

)%

 

(0.4

)%

Acquisition and integration costs

(0.6

)%

 

(1.3

)%

Non-GAAP SG&A expenses

28.6

%

 

14.2

%

 

 

 

 

GAAP impairment losses

0.5

%

 

0.4

%

Impairment losses

(0.5

)%

 

(0.4

)%

Non-GAAP impairment losses

—

%

 

—

%

 

 

 

 

GAAP restructuring expenses

18.8

%

 

1.6

%

Restructuring charges

(18.8

)%

 

(1.6

)%

Non-GAAP restructuring expenses

—

%

 

—

%

 

 

 

 

GAAP income (loss) from operations

(67.9

)%

 

0.6

%

Total non-GAAP adjustments

45.0

%

 

18.1

%

Non-GAAP income (loss) from operations

(22.9

)%

 

18.7

%

 

 

 

 

GAAP interest and other income (expense), net

(5.9

)%

 

(4.4

)%

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

4.4

%

 

3.3

%

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

(1.4

)%

 

(1.1

)%

 

 

 

 

GAAP loss before income taxes

(73.7

)%

 

(3.7

)%

Total non-GAAP adjustments

49.4

%

 

21.4

%

Non-GAAP income (loss) before income taxes

(24.4

)%

 

17.6

%

 

 

 

 

GAAP income tax provision (benefit)

(3.9

)%

 

2.4

%

Adjustment for non-cash tax benefits/expenses

5.0

%

 

(0.6

)%

Non-GAAP income tax provision

1.1

%

 

1.8

%

 

 

 

 

GAAP net loss

(69.8

)%

 

(6.1

)%

Total non-GAAP adjustments before income taxes

49.4

%

 

21.4

%

Less: total tax adjustments

5.0

%

 

(0.6

)%

Non-GAAP net income (loss)

(25.5

)%

 

15.9

%

 

 

 

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241023178785/en/

MaxLinear, Inc. Investor Relations Contact:

Leslie Green Tel: +1 650-312-9060 lgreen@maxlinear.com