MaxLinear, Inc. Announces Second Quarter 2023 Financial Results

Feb 18, 2024

Net revenue of $183.9 million in Q2, GAAP gross margin of 55.9% and non-GAAP gross margin of 61.0%

Infrastructure revenue was $49.3 million in Q2, up 6% sequentially and up 37% YoY

CARLSBAD, Calif., July 26, 2023--(BUSINESS WIRE)--MaxLinear, Inc. (Nasdaq: MXL), a leading provider of radio frequency (RF), analog, digital and mixed-signal integrated circuits, today announced financial results for the second quarter ended June 30, 2023.

Second Quarter Financial Highlights

GAAP basis:

Net revenue was $183.9 million, down 26% sequentially and down 34% year-over-year.

GAAP gross margin was 55.9%, compared to 56.5% in the prior quarter, and 58.7% in the year-ago quarter.

GAAP operating expenses were $108.8 million in the second quarter 2023, or 59% of net revenue, compared to $113.0 million in the prior quarter, or 45% of net revenue, and $125.3 million in the year-ago quarter, or 45% of net revenue.

GAAP loss from operations was 3% of net revenue, compared to income from operations of 11% of net revenue in the prior quarter, and income from operations of 14% of net revenue in the year-ago quarter.

Net cash flow provided by operating activities was $30.6 million, compared to net cash flow provided by operating activities of $42.2 million in the prior quarter, and net cash flow provided by operating activities of $123.4 million in the year-ago quarter.

GAAP diluted loss per share was $0.05, compared to diluted earnings per share of $0.12 in the prior quarter, and diluted earnings per share of $0.40 in the year-ago quarter.

Non-GAAP basis:

Non-GAAP gross margin was 61.0%. This compares to 60.3% in the prior quarter, and 62.3% in the year-ago quarter.

Non-GAAP operating expenses were $82.5 million, or 45% of net revenue, compared to $80.8 million or 33% of net revenue in the prior quarter, and $84.3 million or 30% of net revenue in the year-ago quarter.

Non-GAAP income from operations was 16% of net revenue, compared to 28% in the prior quarter, and 32% in the year-ago quarter.

Non-GAAP diluted earnings per share was $0.34, compared to $0.74 in the prior quarter, and $1.11 in the year-ago quarter.

Management Commentary

"In the second quarter, we delivered $183.9 million in revenues and generated cash flow from operations of approximately $31 million. Our infrastructure category was up 6% sequentially and 37% 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, fiber broadband access gateways, and wireless and optical datacenter network infrastructure, which will be the foundation for our growth throughout 2024," commented Kishore Seendripu, Ph.D., Chairman and CEO.

Third Quarter 2023 Business Outlook

The company expects net revenue in the third quarter of 2023 to be approximately $125 million to $155 million. The Company also estimates the following:

GAAP gross margin of approximately 53.0% to 56.0%;

Non-GAAP gross margin of approximately 59.5% to 62.5%;

GAAP operating expenses of approximately $104 million to $110 million;

Non-GAAP operating expenses of approximately $75 million to $81 million;

GAAP and non-GAAP interest and other expenses each approximately $5 million; and

GAAP and non-GAAP diluted share count of 82 million to 83 million each.

Webcast and Conference Call

MaxLinear will host its second quarter financial results conference call today, July 26, 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 August 9, 2023. A replay of the conference call will also be available until August 9, 2023 by dialing US toll free: 1-877-660-6853 / International: 1-201-612-7415 and Conference ID#: 13740010.

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 third quarter 2023 revenue, and GAAP and non-GAAP amounts for each of the following: gross margins, operating expenses, interest and other expenses, and diluted share counts; and statements regarding the Company's potential growth, including potential growth opportunities of our product portfolio and target markets including Wi-Fi, fiber access, wireless and optical infrastructure; and statements regarding our ability to maximize strategic business opportunities. 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; the effect of intense and increasing competition; impacts of a 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 political and economic conditions of the countries in which we conduct business and other factors related to our international operations; increased tariffs 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 international geopolitical conflicts; 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; 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 June 30, 2023. All forward-looking statements are based on the estimates, projections and assumptions of management as of July 26, 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; (vii) impairment of intangible assets; (viii) severance and other restructuring charges; (ix) other non-recurring interest and other income (expenses), net attributable to acquisitions 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, 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 third 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

June 30, 2023

March 31, 2023

June 30, 2022

Net revenue

183,938

248,442

280,009

Cost of net revenue

81,065

108,135

115,658

Gross profit

102,873

140,307

164,351

Operating expenses:

Research and development

70,657

67,291

80,395

Selling, general and administrative

33,717

38,653

44,487

Impairment losses

—

2,438

—

Restructuring charges

4,436

4,648

462

Total operating expenses

108,810

113,030

125,344

Income (loss) from operations

(5,937

)

27,277

39,007

Interest income

1,903

633

Interest expense

(2,591

)

(2,487

)

(2,416

)

Other income (expense), net

1,865

(324

)

7,179

Total other income (expense), net

1,177

(2,178

)

4,845

Income (loss) before income taxes

(4,760

)

25,099

43,852

Income tax provision (benefit)

(409

)

15,566

11,886

Net income (loss)

(4,351

)

9,533

31,966

Net income (loss) per share:

Basic

(0.05

)

0.12

0.41

Diluted

(0.05

)

0.12

0.40

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

Basic

80,446

79,471

77,858

Diluted

80,446

81,338

80,279

MAXLINEAR, INC.UNAUDITED GAAP CONSOLIDATED STATEMENTS OF INCOME(in thousands, except per share data)

Six Months Ended

June 30, 2023

June 30, 2022

Net revenue

432,380

543,936

Cost of net revenue

189,200

224,995

Gross profit

243,180

318,941

Operating expenses:

Research and development

137,948

146,281

Selling, general and administrative

72,370

85,064

Impairment losses

2,438

—

Restructuring charges

9,084

462

Total operating expenses

221,840

231,807

Income from operations

21,340

87,134

Interest income

2,536

113

Interest expense

(5,078

)

(4,765

)

Other income (expense), net

1,541

6,409

Total other income (expense), net

(1,001

)

1,757

Income before income taxes

20,339

88,891

Income tax provision

15,157

23,339

Net income

5,182

65,552

Net income per share:

Basic

0.06

0.85

Diluted

0.06

0.81

Shares used to compute net income per share:

Basic

79,961

77,527

Diluted

81,520

80,462

MAXLINEAR, INC.UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)

Three Months Ended

June 30, 2023

March 31, 2023

June 30, 2022

Operating Activities

Net income (loss)

(4,351

)

9,533

31,966

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

Amortization and depreciation

18,707

19,202

19,569

Impairment losses

—

2,438

—

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

625

548

471

Stock-based compensation

17,197

16,448

19,469

Deferred income taxes

758

8,128

517

Loss on disposal of property and equipment

2,001

Gain on sale of investments

—

(152

)

—

Unrealized holding (gain) loss on investments

(1,807

)

362

(4,813

)

Impairment of leased right-of-use assets

—

462

Gain on foreign currency and other

(209

)

—

(2,359

)

Excess tax benefits on stock based awards

(791

)

(507

)

(2,309

)

Changes in operating assets and liabilities:

Accounts receivable

33,098

(16,931

)

(11,000

)

Inventory

23,433

10,959

(7,390

)

Prepaid expenses and other assets

(1,314

)

(4,338

)

(1,675

)

Accounts payable, accrued expenses and other current liabilities

(26,378

)

(886

)

29,669

Accrued compensation

(3,348

)

7,210

9,118

Accrued price protection liability

(23,164

)

(9,877

)

42,822

Lease liabilities

(2,914

)

(3,095

)

(2,210

)

Other long-term liabilities

(965

)

3,077

1,125

Net cash provided by operating activities

30,578

42,159

123,437

Investing Activities

Purchases of property and equipment

(5,037

)

(5,216

)

(10,706

)

Purchases of intangible assets

(4,894

)

(630

)

(567

)

Cash used in acquisitions, net of cash acquired

(2,719

)

(9,665

)

—

Purchases of investments

—

(5,000

)

Net cash used in investing activities

(12,650

)

(15,511

)

(16,273

)

Financing Activities

Repayment of debt

—

(40,000

)

Net proceeds from issuance of common stock

3,073

3,046

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

(2,965

)

(6,173

)

(3,698

)

Repurchase of common stock

—

(5,214

)

Net cash provided by (used in) financing activities

108

(6,170

)

(45,866

)

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

(1,229

)

(1,132

)

Increase in cash, cash equivalents and restricted cash

16,807

20,479

60,166

Cash, cash equivalents and restricted cash at beginning of period

208,836

188,357

152,253

Cash, cash equivalents and restricted cash at end of period

225,643

208,836

212,419

MAXLINEAR, INC.UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)

Six Months Ended

June 30, 2023

June 30, 2022

Operating Activities

Net income

5,182

65,552

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

Amortization and depreciation

37,909

43,449

Impairment losses

2,438

—

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

1,173

957

Stock-based compensation

33,645

38,023

Deferred income taxes

8,886

7,359

Loss on disposal of property and equipment

2,041

164

Unrealized holding gain on investments

(1,959

)

(3,859

)

Impairment of leased right-of-use assets

—

462

(Gain) loss on foreign currency

153

(2,675

)

Excess tax benefits on stock-based awards

(1,298

)

(9,429

)

Changes in operating assets and liabilities:

Accounts receivable

16,167

(16,969

)

Inventory

34,392

(14,728

)

Prepaid expenses and other assets

(5,652

)

1,828

Accounts payable, accrued expenses and other current liabilities

(27,264

)

62,621

Accrued compensation

3,862

21,355

Accrued price protection liability

(33,041

)

70,797

Lease liabilities

(6,009

)

(5,511

)

Other long-term liabilities

2,112

(1,793

)

Net cash provided by operating activities

72,737

257,603

Investing Activities

Purchases of property and equipment

(10,253

)

(15,506

)

Purchases of intangible assets

(5,524

)

(5,204

)

Cash used in acquisitions, net of cash acquired

(12,384

)

—

Proceeds loaned under notes receivable

—

(10,000

)

Purchases of investments

—

(28,325

)

Net cash used in investing activities

(28,161

)

(59,035

)

Financing Activities

Repayment of debt

—

(60,000

)

Net proceeds from issuance of common stock

3,076

3,133

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

(9,138

)

(28,147

)

Repurchase of common stock

—

(31,511

)

Net cash used in financing activities

(6,062

)

(116,525

)

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

(1,228

)

(1,362

)

Increase in cash, cash equivalents and restricted cash

37,286

80,681

Cash, cash equivalents and restricted cash at beginning of period

188,357

131,738

Cash, cash equivalents and restricted cash at end of period

225,643

212,419

MAXLINEAR, INC.UNAUDITED GAAP CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands)

June 30, 2023

March 31, 2023

June 30, 2022

Assets

Current assets:

Cash and cash equivalents

224,579

207,850

211,363

Short-term restricted cash

1,042

964

162

Short-term investments

20,488

18,681

23,864

Accounts receivable, net

155,834

188,733

137,065

Inventory

126,152

149,585

146,431

Prepaid expenses and other current assets

26,396

27,773

19,739

Total current assets

554,491

593,586

538,624

Long-term restricted cash

894

Property and equipment, net

73,845

77,691

64,136

Leased right-of-use assets

35,112

26,357

33,154

Intangible assets, net

91,203

96,352

127,928

Goodwill

318,456

318,910

306,739

Deferred tax assets

56,757

57,515

81,762

Other long-term assets

31,594

28,045

27,456

Total assets

1,161,480

1,198,478

1,180,693

Liabilities and stockholders’ equity

Current liabilities

241,729

300,162

316,081

Long-term lease liabilities

30,712

21,239

27,838

Long-term debt

122,064

121,910

246,450

Other long-term liabilities

20,928

21,055

20,727

Stockholders’ equity

746,047

734,112

569,597

Total liabilities and stockholders’ equity

1,161,480

1,198,478

1,180,693

MAXLINEAR, INC.UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS(in thousands, except per share data)

Three Months Ended

June 30, 2023

March 31, 2023

June 30, 2022

GAAP gross profit

102,873

140,307

164,351

Stock-based compensation

246

210

162

Performance based equity

(16

)

146

Amortization of purchased intangible assets

9,117

9,321

9,820

Non-GAAP gross profit

112,220

149,929

174,479

GAAP R&D expenses

70,657

67,291

80,395

Stock-based compensation

(12,237

)

(11,455

)

(9,983

)

Performance based equity

273

(3,635

)

(7,231

)

Research and development funded by others

(1,000

)

(1,000

)

(2,000

)

Non-GAAP R&D expenses

57,693

51,201

61,181

GAAP SG&A expenses

33,717

38,653

44,487

Stock-based compensation

(4,713

)

(4,784

)

(9,324

)

Performance based equity

193

(1,744

)

(2,708

)

Amortization of purchased intangible assets

(709

)

(928

)

(2,926

)

Acquisition and integration costs

(3,714

)

(1,601

)

(6,369

)

Non-GAAP SG&A expenses

24,774

29,596

23,160

GAAP impairment losses

—

2,438

—

Impairment losses

—

(2,438

)

—

Non-GAAP impairment losses

—

GAAP restructuring expenses

4,436

4,648

462

Restructuring charges

(4,436

)

(4,648

)

(462

)

Non-GAAP restructuring expenses

—

GAAP income (loss) from operations

(5,937

)

27,277

39,007

Total non-GAAP adjustments

35,690

41,855

51,131

Non-GAAP income from operations

29,753

69,132

90,138

GAAP interest and other income (expense), net

1,177

(2,178

)

4,845

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

111

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

1,245

(2,067

)

4,901

GAAP income (loss) before income taxes

(4,760

)

25,099

43,852

Total non-GAAP adjustments

35,758

41,966

51,187

Non-GAAP income before income taxes

30,998

67,065

95,039

GAAP income tax provision (benefit)

(409

)

15,566

11,886

Adjustment for non-cash tax benefits/expenses

3,508

(8,859

)

(6,184

)

Non-GAAP income tax provision

3,099

6,707

5,702

GAAP net income (loss)

(4,351

)

9,533

31,966

Total non-GAAP adjustments before income taxes

35,758

41,966

51,187

Less: total tax adjustments

3,508

(8,859

)

(6,184

)

Non-GAAP net income

27,899

60,358

89,337

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

80,446

79,471

77,858

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

81,698

81,338

80,279

Non-GAAP basic net income per share

0.35

0.76

1.15

Non-GAAP diluted net income per share

0.34

0.74

1.11

MAXLINEAR, INC.UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS(as a percentage of net revenue for the corresponding period)

Six Months Ended

June 30, 2023

June 30, 2022

GAAP gross profit

243,180

318,941

Stock-based compensation

456

325

Performance based equity

258

Amortization of purchased intangible assets

18,438

20,631

Non-GAAP gross profit

262,149

340,155

GAAP R&D expenses

137,948

146,281

Stock-based compensation

(23,692

)

(19,659

)

Performance based equity

(3,362

)

(12,568

)

Research and development funded by others

(2,000

)

800

Non-GAAP R&D expenses

108,894

114,854

GAAP SG&A expenses

72,370

85,064

Stock-based compensation

(9,497

)

(18,039

)

Performance based equity

(1,551

)

(4,776

)

Amortization of purchased intangible assets

(1,637

)

(9,102

)

Acquisition and integration costs

(5,315

)

(6,364

)

Non-GAAP SG&A expenses

54,370

46,783

GAAP impairment losses

2,438

—

Impairment losses

(2,438

)

—

Non-GAAP impairment losses

—

GAAP restructuring expenses

9,084

462

Restructuring charges

(9,084

)

(462

)

Non-GAAP restructuring expenses

—

GAAP income from operations

21,340

87,134

Total non-GAAP adjustments

77,545

91,384

Non-GAAP income from operations

98,885

178,518

GAAP interest and other income (expense), net

(1,001

)

1,757

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

179

124

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

(822

)

1,881

GAAP income before income taxes

20,339

88,891

Total non-GAAP adjustments

77,724

91,508

Non-GAAP income before income taxes

98,063

180,399

GAAP income tax provision

15,157

23,339

Adjustment for non-cash tax benefits/expenses

(5,351

)

(12,515

)

Non-GAAP income tax provision

9,806

10,824

GAAP net income

5,182

65,552

Total non-GAAP adjustments before income taxes

77,724

91,508

Less: total tax adjustments

(5,351

)

(12,515

)

Non-GAAP net income

88,257

169,575

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

79,961

76,037

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

81,520

80,462

Non-GAAP basic net income per share

1.10

2.19

Non-GAAP diluted net income per share

1.08

2.11

MAXLINEAR, INC.UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURESAS A PERCENTAGE OF NET REVENUE

Three Months Ended

June 30, 2023

March 31, 2023

June 30, 2022

GAAP gross margin

55.9

56.5

58.7

Stock-based compensation

0.1

Performance based equity

—

0.1

Amortization of purchased intangible assets

5.0

3.8

3.5

Non-GAAP gross margin

61.0

60.3

62.3

GAAP R&D expenses

38.4

27.1

28.7

Stock-based compensation

(6.7

(4.6

(3.6

Performance based equity

0.2

(1.5

(2.6

Research and development funded by others

(0.5

(0.4

(0.7

Non-GAAP R&D expenses

31.4

20.6

21.9

GAAP SG&A expenses

18.3

15.6

15.9

Stock-based compensation

(2.6

(1.9

(3.3

Performance based equity

0.1

(0.7

(1.0

Amortization of purchased intangible assets

(0.4

(1.0

Acquisition and integration costs

(2.0

(0.6

(2.3

Non-GAAP SG&A expenses

13.5

11.9

8.3

GAAP impairment losses

—

1.0

—

Impairment losses

—

(1.0

—

Non-GAAP impairment losses

—

GAAP restructuring expenses

2.4

1.9

0.2

Restructuring charges

(2.4

(1.9

(0.2

Non-GAAP restructuring expenses

—

GAAP income (loss) from operations

(3.2

11.0

13.9

Total non-GAAP adjustments

19.4

16.9

18.3

Non-GAAP income from operations

16.2

27.8

32.2

GAAP interest and other income (expense), net

0.6

(0.9

1.7

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

—

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

0.7

(0.8

1.8

GAAP income (loss) before income taxes

(2.6

10.1

15.7

Total non-GAAP adjustments before income taxes

19.4

16.9

18.3

Non-GAAP income before income taxes

16.9

27.0

33.9

GAAP income tax provision (benefit)

(0.2

6.3

4.2

Adjustment for non-cash tax benefits/expenses

1.9

(3.6

(2.2

Non-GAAP income tax provision

1.7

2.7

2.0

GAAP net income (loss)

(2.4

3.8

11.4

Total non-GAAP adjustments before income taxes

19.4

16.9

18.3

Less: total tax adjustments

1.9

(3.6

(2.2

Non-GAAP net income

15.2

24.3

31.9

MAXLINEAR, INC.UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURESAS A PERCENTAGE OF NET REVENUE

Six Months Ended

June 30, 2023

June 30, 2022

GAAP gross margin

56.2

58.6

Stock-based compensation

0.1

Performance based equity

—

0.1

Amortization of purchased intangible assets

4.3

3.8

Non-GAAP gross margin

60.6

62.5

GAAP R&D expenses

31.9

26.9

Stock-based compensation

(5.5

(3.6

Performance based equity

(0.8

(2.3

Research and development funded by others

(0.5

0.2

Non-GAAP R&D expenses

25.2

21.1

GAAP SG&A expenses

16.7

15.6

Stock-based compensation

(2.2

(3.3

Performance based equity

(0.4

(0.9

Amortization of purchased intangible assets

(0.4

(1.7

Acquisition and integration costs

(1.2

Non-GAAP SG&A expenses

12.6

8.6

GAAP impairment losses

0.3

—

Impairment losses

(0.3

—

Non-GAAP impairment losses

—

GAAP restructuring expenses

2.1

0.1

Restructuring charges

(2.1

(0.1

Non-GAAP restructuring expenses

—

GAAP income from operations

4.9

16.0

Total non-GAAP adjustments

17.9

16.8

Non-GAAP income from operations

22.9

32.8

GAAP interest and other income (expense), net

(0.2

0.3

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

—

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

(0.2

0.4

GAAP income before income taxes

4.7

16.3

Total non-GAAP adjustments

18.0

16.8

Non-GAAP income before income taxes

22.7

33.2

GAAP income tax provision

3.5

4.3

Adjustment for non-cash tax benefits/expenses

(1.2

(2.3

Non-GAAP income tax provision

2.3

2.0

GAAP net income

1.2

12.1

Total non-GAAP adjustments before income taxes

18.0

16.8

Less: total tax adjustments

(1.2

(2.3

Non-GAAP net income

20.4

31.2

View source version on businesswire.com: https://www.businesswire.com/news/home/20230726613541/en/

Contacts

MaxLinear, Inc. Investor Relations Contact: Leslie GreenTel: +1 [email protected]

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