Third Quarter 2017 GAAP Revenue of $113.6
million, net of a $0.8 million revenue elimination under purchase
accounting;GAAP Diluted Loss per Share of $0.14 and Non-GAAP
Diluted Earnings per Share of $0.39
MaxLinear, Inc. (NYSE:MXL), a leading provider of radio-frequency,
mixed-signal and high-performance analog integrated circuits for
the connected home, wired and wireless infrastructure, and
industrial and multi-market applications, today announced financial
results for the third quarter ended September 30, 2017.
Management Commentary
“We are pleased to announce the financial results of a very
exciting third quarter 2017. In the third quarter, we delivered
record GAAP revenue of $113.6 million, after a $0.8 million revenue
elimination under acquisition-related purchase price accounting.
Our strong revenue results were driven by the full-quarter
contribution from our recent acquisition of Exar Corporation as
well as strong sequential growth from our last mile access
products. We are encouraged with progress made towards our stated
operating synergy target of $15 million in run-rate cost reductions
within twelve months of the May 2017 deal close. Based on the third
quarter financial results, which reflect non-GAAP operating
expenses that were $3.1 million below guidance, we have already
surpassed the $15 million annualized run-rate synergy target in
less than five months from acquisition close. With these
better-than-forecasted financial results, we generated $37.7
million in operating cash flows, which lent confidence in funding
prepayments of $50 million against our $425 million term loan
during the third quarter 2017,” commented Kishore Seendripu, Ph.D.,
Chairman and CEO.
Third Quarter 2017 Business Highlights
- Wave-2 G.hn technology chosen by Cambridge Industries Group for
new HomeMesh networking products.
- Announced use of G.hn technology in future open smart metering
solution with Corinex.
- Full-Spectrum Capture™ DOCSIS® 3.1 chipsets selected by Hitron
as part of a Full Duplex demonstration network.
- Ku-Band satellite technology selected by MTI for Sky Q wideband
low-noise block downconverter for shipment to Sky UK
customers.
- Announced partnership with Gospell to deliver low cost dCSS
low-noise block downconverter and 4K set-top box system solution
for satellite TV operators worldwide.
- MxL214C Full-Spectrum Capture™ cable front-end receiver adopted
by Skyworth for next generation cable gateway set-top box for
Chinese cable operator customers.
- Launched industry-first integrated ATSC tuner-demodulator ICs
for cost-effective cord-cutter OTA products.
Third Quarter Financial Highlights
GAAP basis:
The third quarter 2017 results continue to be influenced by the
acquisitions and related purchase price accounting impacts of
Marvell’s G.hn business in April 2017 and Exar in May 2017, and
interest on the term loan related to the Exar transaction.
- Net revenue increased to $113.6 million, which was impacted by
elimination of Exar's deferred revenue of $0.8 million under
acquisition accounting, and which was up 9% sequentially and 18%
year-on-year.
- GAAP gross margin was 45.6%, which was impacted by amortization
of inventory step-ups to fair value and acquired intangibles
totaling $18.1 million and elimination of Exar's deferred profit of
$0.8 million under acquisition accounting, compared to 49.1% in the
prior quarter, and 57.6% in the year-ago quarter.
- GAAP operating expenses, inclusive of full quarter
contributions from the Marvell G.hn and Exar acquisitions and
related purchase price accounting impacts, were $62.5 million in
the third quarter 2017, or 55% of revenue, compared to $66.9
million in the prior quarter, and $44.8 million in the year-ago
quarter.
- GAAP loss from operations was 9% of revenue, compared to loss
from operations of 15% in the prior quarter, and income from
operations of 11% in the year-ago quarter.
- Net cash flow provided by operating activities of $37.7
million, compared to cash flow used in operations of $7.1 million
in the prior quarter and cash flow provided by operating activities
of $18.4 million in the year-ago quarter.
- GAAP pre-tax losses were 14% of revenue, compared to pre-tax
losses that were 18% of revenue in the prior quarter, and pre-tax
income that was 11% of revenue in the year-ago quarter.
- GAAP income tax benefit was 41% of pre-tax loss, compared to an
income tax benefit of 159% of pre-tax loss in the prior quarter,
and income tax provision of 10% of pre-tax income in the year-ago
quarter.
- GAAP net loss was $9.2 million, compared to net income of $11.0
million in the prior quarter, and net income of $9.7 million in the
year-ago quarter.
- GAAP diluted loss per share was $0.14, compared to earnings per
share of $0.16 in the prior quarter, and earnings per share of
$0.14 in the year-ago quarter.
Non-GAAP basis:
- Non-GAAP gross margin was 62.5%, when calculated on GAAP
revenue of $113.6 million, or 62.1% when calculated to adjust for
the $0.8 million of deferred revenue eliminated under Exar
acquisition accounting, which was the basis for prior guidance.
This compares to 64.4% in the prior quarter (61.3% when calculated
to adjust for the prior quarter's $5.2 million of deferred revenue
eliminated under Exar acquisition purchase accounting), and 63.1%
in the year-ago quarter.
- Non-GAAP operating expenses were $37.9 million, or 33% of
revenue, compared to $36.9 million or 35% of revenue in the prior
quarter, and $31.5 million and 33% of revenue in the year-ago
quarter.
- Non-GAAP income from operations was 29% of revenue, compared to
29% in the prior quarter, and 30% in the year-ago quarter.
- Non-GAAP pre-tax margin was 25% of revenue, compared to 26% in
the prior quarter, and 30% in the year-ago quarter.
- Non-GAAP effective tax rate was 4% of non-GAAP pre-tax income,
compared to 10% in the prior quarter, and 2% in the year-ago
quarter. Current quarter non-GAAP effective tax rate is based
on year-to-date effective tax rate of 8% of non-GAAP pre-tax
income.
- Non-GAAP net income was $27.1 million, compared to $24.7
million in the prior quarter, and $28.8 million in the year-ago
quarter.
- Non-GAAP diluted earnings per share was $0.39, compared to
diluted earnings per share of $0.35 in the prior quarter, and
diluted earnings per share of $0.43 in the year-ago quarter.
Fourth Quarter 2017 Business Outlook
The company expects revenue in the fourth quarter to be in the
range of $112 million to $116 million, and also estimates the
following:
- GAAP and non-GAAP gross margin of approximately 47% and 61% to
62%, respectively.
- GAAP and non-GAAP operating expenses of approximately $57
million and $38 million, respectively.
- GAAP and non-GAAP interest expenses of approximately $3.7
million.
- GAAP and non-GAAP cash tax rates of approximately 40% and 8%,
respectively.
Webcast and Conference CallMaxLinear will host
its third quarter financial results conference call today,
November 7, 2017 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 http://investors.maxlinear.com, and will be
archived and available after the call at
http://investors.maxlinear.com until November 21, 2017. A replay of
the conference call will also be available until November 21, 2017
by dialing US toll free: 1-877-660-6853 / International:
1-201-612-7415 and Conference ID#: 13653123.
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 2017 revenue, gross
margins, operating expenses, interest expenses, and tax rates).
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. In
particular, our future operating results are substantially
dependent on our assumptions about market trends and conditions and
our expectations with respect to recently completed
acquisitions. With respect to recently completed
acquisitions, we face particular risks associated with our ability
to integrate the acquired businesses and maintain relationships
with employees, customers, and vendors. Exar’s target markets
and business operations differ substantially from those of
MaxLinear, and we may be unable to realize anticipated strategic,
financial, and operating synergies to the same relative extent as
we were able to achieve in other recent acquisitions. In
addition, our decisions with respect to all our acquisitions were
based on management’s current expectations with respect to the size
of the available markets and growth opportunities presented by
these acquisitions, all of which are subject to material risks and
uncertainties. In connection with the acquisition of Exar, we
incurred substantial acquisition-related indebtedness, which
materially changed our financial profile and presents specific
risks relating to our ability to service interest and principal
payments and limitations on our operating flexibility based on
operating covenants in the applicable term loan agreements,
including (without limitation) debt covenant restrictions that
limit our ability to obtain additional financing, issue guarantees,
create liens, make certain restricted payments or repay certain
obligations or to pursue future acquisitions. Additional
risks and uncertainties arising from our operations generally and
our recently completed acquisitions include 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; 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; risks relating to intellectual property protection
and the prevalence of intellectual property litigation in our
industry; indemnification obligations of Exar arising from a recent
divestiture; the impact on our financial condition of the incurred
acquisition indebtedness and cash usage arising from the Exar
transaction; our reliance on a limited number of third party
manufacturers; 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 most recent Annual Report
on Form 10-K for the year ended December 31, 2016 filed with the
SEC on February 9, 2017, our Quarterly Report on Form 10-Q for the
quarters ended March 31, 2017, June 30, 2017 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 September 30, 2017, which we expect
to file shortly. All forward-looking statements are based on the
estimates, projections and assumptions of management as of
November 7, 2017, 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,
pre-tax margins, effective tax rate, net income and diluted
earnings per share. These supplemental measures include the gross
margin impact of Exar's deferred profit eliminated in purchase
price accounting and exclude the effects of (i) stock-based
compensation expense; (ii) an accrual related to our
performance based bonus plan for 2017, which we currently intend to
settle in shares of our common stock; (iii) accruals related
to our performance based bonus plan for 2016, which we settled in
shares of our class A common stock in 2016 and 2017; (iv)
amortization of purchased intangible assets and inventory step up;
(v) depreciation of fixed assets step-up; (vi) restricted merger
proceeds and contingent consideration and incentive award; (vii)
acquisition and integration costs related to our recently completed
acquisitions; (viii) professional fees and settlement costs related
to our previously disclosed IP and commercial litigation matters;
(ix) IPR&D impairment losses; (x) severance and other
restructuring charges; and (xi) non-cash income tax benefits and
expenses. 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.
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 first and second half of the 2016
performance periods were settled through the issuance of shares of
Class A common stock under our equity incentive plans in
August 2016 and February 2017, respectively. We currently expect
that bonus awards under our fiscal 2017 program will be settled in
common stock in the first quarter of fiscal 2018. 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.
Expenses incurred in relation to acquisitions include
amortization of purchased intangible assets and step-up of
inventory to fair value, depreciation of step-up of property and
equipment to fair value, acquisition and integration costs
primarily consisting of professional and consulting fees, incentive
awards, and restricted merger proceeds which represent the change
in fair value of contingent consideration related to a 2014
acquisition and one-time impact on gross margin from elimination of
Exar's deferred profit in purchase price accounting.
IPR&D impairment losses relate to our abandonment of
IPR&D technology assets.
Restructuring charges incurred are related to our restructuring
plans which address issues primarily relating to the integration of
the Company and acquired businesses or internal operations 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.
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
fourth quarter 2017.
About MaxLinear, Inc.
MaxLinear, Inc. (NYSE:MXL) is a leading provider of radio
frequency (RF) and mixed-signal and high-performance analog
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. Investor Relations
Contact:Gideon MasseyInvestor Relations SpecialistTel:
949-333-0056gmassey@maxlinear.com
MAXLINEAR, INC.UNAUDITED
GAAP CONSOLIDATED STATEMENTS OF OPERATIONS(in
thousands, except per share data)
|
|
|
Three Months Ended |
|
September 30, 2017 |
|
|
June 30, 2017 |
|
|
September 30, 2016 |
Net revenue |
$ |
113,581 |
|
|
$ |
104,175 |
|
|
$ |
96,324 |
Cost of net
revenue |
|
61,739 |
|
|
|
53,071 |
|
|
|
40,820 |
Gross profit |
|
51,842 |
|
|
|
51,104 |
|
|
|
55,504 |
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
29,270 |
|
|
|
29,015 |
|
|
|
25,921 |
Selling,
general and administrative |
|
29,037 |
|
|
|
31,338 |
|
|
|
17,619 |
IPR&D
impairment losses |
|
2,000 |
|
|
|
— |
|
|
|
1,300 |
Restructuring charges |
|
2,178 |
|
|
|
6,546 |
|
|
|
— |
Total operating
expenses |
|
62,485 |
|
|
|
66,899 |
|
|
|
44,840 |
Income (loss) from
operations |
|
(10,643 |
) |
|
|
(15,795 |
) |
|
|
10,664 |
Interest income |
|
1 |
|
|
|
64 |
|
|
|
89 |
Interest expense |
|
(4,133 |
) |
|
|
(2,201 |
) |
|
|
— |
Other income (expense),
net |
|
(668 |
) |
|
|
(618 |
) |
|
|
10 |
Total interest and
other income (expense), net |
|
(4,800 |
) |
|
|
(2,755 |
) |
|
|
99 |
Income (loss) before
income taxes |
|
(15,443 |
) |
|
|
(18,550 |
) |
|
|
10,763 |
Income tax provision
(benefit) |
|
(6,276 |
) |
|
|
(29,515 |
) |
|
|
1,084 |
Net income (loss) |
$ |
(9,167 |
) |
|
$ |
10,965 |
|
|
$ |
9,679 |
Net income (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.14 |
) |
|
$ |
0.17 |
|
|
$ |
0.15 |
Diluted |
$ |
(0.14 |
) |
|
$ |
0.16 |
|
|
$ |
0.14 |
Shares used to compute
net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
66,712 |
|
|
|
65,889 |
|
|
|
64,241 |
Diluted |
|
66,712 |
|
|
|
69,645 |
|
|
|
67,832 |
|
|
|
|
|
|
|
|
|
|
|
MAXLINEAR, INC.UNAUDITED
GAAP CONSOLIDATED STATEMENTS OF INCOME(in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
September 30, 2017 |
|
|
September 30, 2016 |
|
Net revenue |
$ |
306,597 |
|
|
$ |
300,696 |
|
Cost of net
revenue |
|
150,727 |
|
|
|
121,109 |
|
Gross profit |
|
155,870 |
|
|
|
179,587 |
|
Operating
expenses: |
|
|
|
|
|
|
Research
and development |
|
82,163 |
|
|
|
73,710 |
|
Selling,
general and administrative |
|
78,988 |
|
|
|
47,734 |
|
IPR&D
impairment losses |
|
2,000 |
|
|
|
1,300 |
|
Restructuring charges |
|
8,724 |
|
|
|
2,106 |
|
Total operating
expenses |
|
171,875 |
|
|
|
124,850 |
|
Income (loss) from
operations |
|
(16,005 |
) |
|
|
54,737 |
|
Interest income |
|
260 |
|
|
|
426 |
|
Interest expense |
|
(6,334 |
) |
|
|
— |
|
Other expense, net |
|
(1,430 |
) |
|
|
(64 |
) |
Total interest and
other income (expense), net |
|
(7,504 |
) |
|
|
362 |
|
Income (loss) before
income taxes |
|
(23,509 |
) |
|
|
55,099 |
|
Income tax provision
(benefit) |
|
(33,770 |
) |
|
|
2,155 |
|
Net income |
$ |
10,261 |
|
|
$ |
52,944 |
|
Net income per
share: |
|
|
|
|
|
|
Basic |
$ |
0.16 |
|
|
$ |
0.83 |
|
Diluted |
$ |
0.15 |
|
|
$ |
0.79 |
|
Shares used to compute
net income per share: |
|
|
|
|
|
|
Basic |
|
65,950 |
|
|
|
63,454 |
|
Diluted |
|
69,491 |
|
|
|
67,354 |
|
|
|
|
|
|
|
|
|
MAXLINEAR, INC.UNAUDITED
GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
September 30, 2017 |
|
|
June 30, 2017 |
|
|
September 30, 2016 |
|
Operating
Activities |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(9,167 |
) |
|
|
10,965 |
|
|
$ |
9,679 |
|
Adjustments to
reconcile net income (loss) to cash provided by (used in) operating
activities: |
|
|
|
|
|
|
|
|
Amortization and depreciation |
|
21,342 |
|
|
|
18,261 |
|
|
|
8,808 |
|
Impairment of IPR&D assets |
|
2,000 |
|
|
|
— |
|
|
|
1,300 |
|
Provision
for losses on accounts receivable |
|
46 |
|
|
|
— |
|
|
|
87 |
|
Amortization (accretion) of investment premiums (discount),
net |
|
— |
|
|
|
(107 |
) |
|
|
12 |
|
Amortization of inventory step-up |
|
10,207 |
|
|
|
5,635 |
|
|
|
2,653 |
|
Amortization of debt issuance costs |
|
301 |
|
|
|
175 |
|
|
|
— |
|
Stock-based compensation |
|
7,796 |
|
|
|
11,628 |
|
|
|
6,264 |
|
Deferred
income taxes |
|
(1,163 |
) |
|
|
(47,409 |
) |
|
|
82 |
|
Loss on
disposal of property and equipment |
|
286 |
|
|
|
3 |
|
|
|
— |
|
Loss on
sale of available-for-sale securities |
|
— |
|
|
|
38 |
|
|
|
— |
|
Loss on
foreign currency |
|
733 |
|
|
|
898 |
|
|
|
112 |
|
Excess
tax benefits on stock-based awards |
|
(841 |
) |
|
|
(4,843 |
) |
|
|
(928 |
) |
Change in
fair value of contingent consideration |
|
— |
|
|
|
— |
|
|
|
99 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
7,063 |
|
|
|
(13,496 |
) |
|
|
(5,419 |
) |
Inventory |
|
5,060 |
|
|
|
(2,289 |
) |
|
|
(454 |
) |
Prepaid
expenses and other assets |
|
2,374 |
|
|
|
(1,503 |
) |
|
|
440 |
|
Accounts
payable, accrued expenses and other current liabilities |
|
(17,453 |
) |
|
|
10,077 |
|
|
|
(2,470 |
) |
Accrued
compensation |
|
1,498 |
|
|
|
(1,664 |
) |
|
|
(183 |
) |
Deferred
revenue and deferred profit |
|
3,907 |
|
|
|
7,633 |
|
|
|
(504 |
) |
Accrued
price protection liability |
|
3,606 |
|
|
|
2,676 |
|
|
|
(1,158 |
) |
Other
long-term liabilities |
|
144 |
|
|
|
(3,768 |
) |
|
|
(5 |
) |
Net cash provided by
(used in) operating activities |
|
37,739 |
|
|
|
(7,090 |
) |
|
|
18,415 |
|
Investing
Activities |
|
|
|
|
|
|
|
|
Purchases of property
and equipment |
|
(2,500 |
) |
|
|
(1,155 |
) |
|
|
(2,118 |
) |
Purchases of intangible
assets |
|
(53 |
) |
|
|
(5,205 |
) |
|
|
— |
|
Cash used in
acquisition, net of cash acquired |
|
— |
|
|
|
(473,304 |
) |
|
|
(80,000 |
) |
Purchases of
available-for-sale securities |
|
— |
|
|
|
— |
|
|
|
(32,986 |
) |
Maturities of
available-for-sale securities |
|
— |
|
|
|
63,761 |
|
|
|
7,700 |
|
Net cash used in
investing activities |
|
(2,553 |
) |
|
|
(415,903 |
) |
|
|
(107,404 |
) |
Financing
Activities |
|
|
|
|
|
|
|
|
Net proceeds from
issuance of common stock |
|
1,074 |
|
|
|
7,657 |
|
|
|
165 |
|
Minimum tax withholding
paid on behalf of employees for restricted stock units |
|
(1,426 |
) |
|
|
(3,496 |
) |
|
|
(2,591 |
) |
Proceeds from issuance
of debt |
|
— |
|
|
|
416,846 |
|
|
|
— |
|
Repayment of debt |
|
(50,000 |
) |
|
|
— |
|
|
|
— |
|
Net cash provided by
(used in) financing activities |
|
(50,352 |
) |
|
|
421,007 |
|
|
|
(2,426 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
|
(829 |
) |
|
|
839 |
|
|
|
(91 |
) |
Decrease in cash, cash
equivalents and restricted cash |
|
(15,995 |
) |
|
|
(1,147 |
) |
|
|
(91,506 |
) |
Cash, cash equivalents
and restricted cash at beginning of period |
|
90,091 |
|
|
|
91,238 |
|
|
|
147,582 |
|
Cash, cash equivalents
and restricted cash at end of period |
$ |
74,096 |
|
|
$ |
90,091 |
|
|
$ |
56,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
MAXLINEAR, INC.UNAUDITED
GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS(in
thousands)
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
September 30, |
|
|
September 30, |
|
|
2017 |
|
|
2016 |
|
Operating
Activities |
|
|
|
|
|
|
|
Net income |
$ |
10,261 |
|
|
$ |
52,944 |
|
Adjustments to
reconcile net income to cash provided by operating activities: |
|
|
|
Amortization and depreciation |
46,502 |
|
|
18,743 |
|
Impairment of IPR&D assets |
2,000 |
|
|
1,300 |
|
Provision
for losses on accounts receivable |
133 |
|
|
87 |
|
Amortization (accretion) of investment premiums (discount),
net |
(60 |
) |
|
95 |
|
Amortization of inventory step-up |
15,842 |
|
|
2,989 |
|
Amortization of debt issuance costs |
476 |
|
|
— |
|
Stock-based compensation |
24,898 |
|
|
16,475 |
|
Deferred
income taxes |
(48,417 |
) |
|
215 |
|
(Gain)
loss on disposal of property and equipment |
201 |
|
|
48 |
|
(Gain)
loss on sale of available-for-sale securities |
38 |
|
|
(50 |
) |
Loss on
foreign currency |
1,415 |
|
|
66 |
|
Excess
tax benefits on stock-based awards |
(6,598 |
) |
|
(6,042 |
) |
Change in
fair value of contingent consideration |
— |
|
|
209 |
|
Changes
in operating assets and liabilities: |
|
|
|
Accounts
receivable |
(13,869 |
) |
|
(7,360 |
) |
Inventory |
(2,331 |
) |
|
6,964 |
|
Prepaid
expenses and other assets |
1,696 |
|
|
(365 |
) |
Accounts
payable, accrued expenses and other current liabilities |
576 |
|
|
2,497 |
|
Accrued
compensation |
216 |
|
|
3,357 |
|
Deferred
revenue and deferred profit |
11,233 |
|
|
1,228 |
|
Accrued
price protection liability |
13,053 |
|
|
(2,914 |
) |
Other
long-term liabilities |
(3,944 |
) |
|
(772 |
) |
Net cash provided by
operating activities |
53,321 |
|
|
89,714 |
|
Investing
Activities |
|
|
|
Purchases of property
and equipment |
(4,398 |
) |
|
(6,828 |
) |
Purchases of intangible
assets |
(5,378 |
) |
|
(390 |
) |
Cash used in
acquisition, net of cash acquired |
(473,304 |
) |
|
(101,000 |
) |
Purchases of
available-for-sale securities |
(30,577 |
) |
|
(80,263 |
) |
Maturities of
available-for-sale securities |
84,546 |
|
|
88,711 |
|
Net cash used in
investing activities |
(429,111 |
) |
|
(99,770 |
) |
Financing
Activities |
|
|
|
Repurchases of common
stock |
(334 |
) |
|
(3 |
) |
Net proceeds from
issuance of common stock |
9,092 |
|
|
4,450 |
|
Minimum tax withholding
paid on behalf of employees for restricted stock units |
(9,825 |
) |
|
(6,184 |
) |
Proceeds from issuance
of debt |
416,846 |
|
|
— |
|
Repayment of debt |
(50,000 |
) |
|
— |
|
Net cash provided by
(used in) financing activities |
365,779 |
|
|
(1,737 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
1,211 |
|
|
(87 |
) |
Decrease in cash, cash
equivalents and restricted cash |
(8,800 |
) |
|
(11,880 |
) |
Cash, cash equivalents
and restricted cash at beginning of period |
82,896 |
|
|
67,956 |
|
Cash, cash equivalents
and restricted cash at end of period |
$ |
74,096 |
|
|
$ |
56,076 |
|
|
|
|
|
|
|
|
|
MAXLINEAR, INC.UNAUDITED
GAAP CONDENSED CONSOLIDATED BALANCE SHEETS(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2017 |
|
|
June 30, 2017 |
|
|
September 30, 2016 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents(1) |
$ |
71,576 |
|
|
$ |
87,568 |
|
|
$ |
54,266 |
|
Short-term restricted cash(1) |
615 |
|
|
615 |
|
|
— |
|
Short-term investments, available-for-sale |
— |
|
|
— |
|
|
42,146 |
|
Accounts
receivable, net |
75,618 |
|
|
82,695 |
|
|
49,672 |
|
Inventory |
63,692 |
|
|
77,559 |
|
|
32,119 |
|
Prepaid
expenses and other current assets |
7,917 |
|
|
9,732 |
|
|
6,831 |
|
Total current
assets |
219,418 |
|
|
258,169 |
|
|
185,034 |
|
Long-term restricted
cash(1) |
1,905 |
|
|
1,908 |
|
|
1,810 |
|
Property and equipment,
net |
23,336 |
|
|
24,469 |
|
|
21,950 |
|
Long-term investments,
available-for-sale |
— |
|
|
— |
|
|
12,020 |
|
Intangible assets,
net |
332,409 |
|
|
353,524 |
|
|
109,885 |
|
Goodwill |
239,673 |
|
|
238,838 |
|
|
75,794 |
|
Deferred tax
assets |
53,985 |
|
|
53,878 |
|
|
97 |
|
Other long-term
assets |
6,288 |
|
|
6,841 |
|
|
1,786 |
|
Total assets |
$ |
877,014 |
|
|
$ |
937,627 |
|
|
$ |
408,376 |
|
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
Current
liabilities |
$ |
98,381 |
|
|
$ |
110,197 |
|
|
$ |
54,491 |
|
Long-term debt |
367,322 |
|
|
415,032 |
|
|
— |
|
Other long-term
liabilities |
14,663 |
|
|
14,491 |
|
|
15,182 |
|
Total stockholders’
equity |
396,648 |
|
|
397,907 |
|
|
338,703 |
|
Total liabilities and
stockholders’ equity |
$ |
877,014 |
|
|
$ |
937,627 |
|
|
$ |
408,376 |
|
___________________________________________(1) Certain
reclassifications for cash restricted in connection with guarantees
for certain office leases have been made to prior periods to
conform to the current period presentation.
MAXLINEAR, INC.UNAUDITED
RECONCILIATION OF NON-GAAP ADJUSTMENTS(in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
September 30, 2017 |
|
|
June 30, 2017 |
|
|
September 30, 2016 |
|
GAAP gross profit |
$ |
51,842 |
|
|
$ |
51,104 |
|
|
$ |
55,504 |
|
Stock-based compensation |
|
93 |
|
|
|
79 |
|
|
|
57 |
|
Performance based equity |
|
34 |
|
|
|
28 |
|
|
|
23 |
|
Amortization of inventory step-up |
|
10,207 |
|
|
|
5,635 |
|
|
|
2,653 |
|
Amortization of purchased intangible assets |
|
7,907 |
|
|
|
6,260 |
|
|
|
2,571 |
|
Depreciation of fixed asset step-up |
|
113 |
|
|
|
112 |
|
|
|
— |
|
Deferred
profit eliminated in purchase price accounting |
|
810 |
|
|
|
3,872 |
|
|
|
— |
|
Non-GAAP gross
profit |
|
71,006 |
|
|
|
67,090 |
|
|
|
60,808 |
|
|
|
|
|
|
|
|
|
|
GAAP R&D
expenses |
|
29,270 |
|
|
|
29,015 |
|
|
|
25,921 |
|
Stock-based compensation |
|
(4,337 |
) |
|
|
(4,011 |
) |
|
|
(4,163 |
) |
Incentive
award compensation |
|
— |
|
|
|
— |
|
|
|
(169 |
) |
Performance based equity |
|
(961 |
) |
|
|
(1,055 |
) |
|
|
(838 |
) |
Amortization of purchased intangible assets |
|
(96 |
) |
|
|
(97 |
) |
|
|
(45 |
) |
Depreciation of fixed asset step-up |
|
(561 |
) |
|
|
(760 |
) |
|
|
— |
|
Restricted merger proceeds and contingent consideration |
|
— |
|
|
|
— |
|
|
|
(243 |
) |
Non-GAAP
R&D expenses |
|
23,315 |
|
|
|
23,092 |
|
|
|
20,463 |
|
|
|
|
|
|
|
|
|
|
GAAP SG&A
expenses |
|
29,037 |
|
|
|
31,338 |
|
|
|
17,619 |
|
Stock-based compensation |
|
(2,965 |
) |
|
|
(3,024 |
) |
|
|
(1,857 |
) |
Incentive
award compensation |
|
— |
|
|
|
— |
|
|
|
(18 |
) |
Performance based equity |
|
(517 |
) |
|
|
(482 |
) |
|
|
(896 |
) |
Amortization of purchased intangible assets |
|
(9,924 |
) |
|
|
(8,262 |
) |
|
|
(3,080 |
) |
Depreciation of fixed asset step-up |
|
(30 |
) |
|
|
(56 |
) |
|
|
— |
|
Acquisition and integration costs |
|
(1,005 |
) |
|
|
(5,609 |
) |
|
|
(590 |
) |
Restricted merger proceeds and contingent consideration |
|
— |
|
|
|
— |
|
|
|
(99 |
) |
IP
litigation costs, net |
|
(4 |
) |
|
|
(125 |
) |
|
|
(12 |
) |
Non-GAAP
SG&A expenses |
|
14,592 |
|
|
|
13,780 |
|
|
|
11,067 |
|
|
|
|
|
|
|
|
|
|
GAAP IPR&D
impairment losses |
|
2,000 |
|
|
|
— |
|
|
|
1,300 |
|
IPR&D
impairment losses |
|
(2,000 |
) |
|
|
— |
|
|
|
(1,300 |
) |
Non-GAAP
IPR&D impairment losses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
GAAP restructuring
expenses |
|
2,178 |
|
|
|
6,546 |
|
|
|
— |
|
Restructuring charges |
|
(2,178 |
) |
|
|
(6,546 |
) |
|
|
— |
|
Non-GAAP
restructuring expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) from
operations |
|
(10,643 |
) |
|
|
(15,795 |
) |
|
|
10,664 |
|
Total
non-GAAP adjustments |
|
43,742 |
|
|
|
46,013 |
|
|
|
18,614 |
|
Non-GAAP income from
operations |
|
33,099 |
|
|
|
30,218 |
|
|
|
29,278 |
|
|
|
|
|
|
|
|
|
|
GAAP and non-GAAP
interest and other income (expense), net |
|
(4,800 |
) |
|
|
(2,755 |
) |
|
|
99 |
|
|
|
|
|
|
|
|
|
|
GAAP income (loss)
before income taxes |
|
(15,443 |
) |
|
|
(18,550 |
) |
|
|
10,763 |
|
Total
non-GAAP adjustments |
|
43,742 |
|
|
|
46,013 |
|
|
|
18,614 |
|
Non-GAAP
income before income taxes |
|
28,299 |
|
|
|
27,463 |
|
|
|
29,377 |
|
|
|
|
|
|
|
|
|
|
GAAP income tax
provision (benefit) |
|
(6,276 |
) |
|
|
(29,515 |
) |
|
|
1,084 |
|
Adjustment for non-cash tax benefits/expenses |
|
7,476 |
|
|
|
32,300 |
|
|
|
(537 |
) |
Non-GAAP
income tax provision |
|
1,200 |
|
|
|
2,785 |
|
|
|
547 |
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss) |
|
(9,167 |
) |
|
|
10,965 |
|
|
|
9,679 |
|
Total
non-GAAP adjustments before income taxes |
|
43,742 |
|
|
|
46,013 |
|
|
|
18,614 |
|
Less:
total tax adjustments |
|
7,476 |
|
|
|
32,300 |
|
|
|
(537 |
) |
Non-GAAP
net income |
$ |
27,099 |
|
|
$ |
24,678 |
|
|
$ |
28,830 |
|
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP basic net income per share |
|
66,712 |
|
|
|
65,889 |
|
|
|
64,241 |
|
Shares used in
computing non-GAAP diluted net income per share |
|
69,668 |
|
|
|
69,645 |
|
|
|
67,832 |
|
Non-GAAP basic net
income per share |
$ |
0.41 |
|
|
$ |
0.37 |
|
|
$ |
0.45 |
|
Non-GAAP diluted net
income per share |
$ |
0.39 |
|
|
$ |
0.35 |
|
|
$ |
0.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
MAXLINEAR, INC.UNAUDITED
RECONCILIATION OF NON-GAAP ADJUSTMENTS(in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
September 30, 2017 |
|
|
September 30, 2016 |
|
GAAP gross profit |
$ |
155,870 |
|
|
$ |
179,587 |
|
Stock-based compensation |
|
231 |
|
|
|
151 |
|
Performance based equity |
|
104 |
|
|
|
(41 |
) |
Amortization of inventory step-up |
|
15,842 |
|
|
|
2,989 |
|
Amortization of purchased intangible assets |
|
16,851 |
|
|
|
5,940 |
|
Depreciation of fixed asset step-up |
|
225 |
|
|
|
— |
|
Deferred
profit eliminated in purchase price accounting |
|
4,682 |
|
|
|
— |
|
Non-GAAP gross
profit |
|
193,805 |
|
|
|
188,626 |
|
|
|
|
|
|
|
GAAP R&D
expenses |
|
82,163 |
|
|
|
73,710 |
|
Stock-based compensation |
|
(11,841 |
) |
|
|
(10,362 |
) |
Incentive
award compensation |
|
— |
|
|
|
(553 |
) |
Performance based equity |
|
(2,970 |
) |
|
|
(3,574 |
) |
Amortization of purchased intangible assets |
|
(289 |
) |
|
|
(289 |
) |
Depreciation of fixed asset step-up |
|
(1,321 |
) |
|
|
— |
|
Restricted merger proceeds and contingent consideration |
|
— |
|
|
|
(659 |
) |
Non-GAAP
R&D expenses |
|
65,742 |
|
|
|
58,273 |
|
|
|
|
|
|
|
GAAP SG&A
expenses |
|
78,988 |
|
|
|
47,734 |
|
Stock-based compensation |
|
(7,911 |
) |
|
|
(5,290 |
) |
Incentive
award compensation |
|
— |
|
|
|
(119 |
) |
Performance based equity |
|
(1,577 |
) |
|
|
(2,278 |
) |
Amortization of purchased intangible assets |
|
(20,067 |
) |
|
|
(4,038 |
) |
Depreciation of fixed asset step-up |
|
(86 |
) |
|
|
— |
|
Acquisition and integration costs |
|
(10,008 |
) |
|
|
(1,852 |
) |
Restricted merger proceeds and contingent consideration |
|
— |
|
|
|
(209 |
) |
IP
litigation costs, net |
|
(234 |
) |
|
|
(671 |
) |
Non-GAAP
SG&A expenses |
|
39,105 |
|
|
|
33,277 |
|
|
|
|
|
|
|
GAAP IPR&D
impairment losses |
|
2,000 |
|
|
|
1,300 |
|
IPR&D
impairment losses |
|
(2,000 |
) |
|
|
(1,300 |
) |
Non-GAAP
IPR&D impairment losses |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
GAAP restructuring
expenses |
|
8,724 |
|
|
|
2,106 |
|
Restructuring charges |
|
(8,724 |
) |
|
|
(2,106 |
) |
Non-GAAP
restructuring expenses |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
GAAP income (loss) from
operations |
|
(16,005 |
) |
|
|
54,737 |
|
Total non-GAAP
adjustments |
|
104,963 |
|
|
|
42,339 |
|
Non-GAAP income from
operations |
|
88,958 |
|
|
|
97,076 |
|
|
|
|
|
|
|
GAAP and non-GAAP
interest and other income (expense), net |
|
(7,504 |
) |
|
|
362 |
|
|
|
|
|
|
|
GAAP income (loss)
before income taxes |
|
(23,509 |
) |
|
|
55,099 |
|
Total
non-GAAP adjustments |
|
104,963 |
|
|
|
42,339 |
|
Non-GAAP
income before income taxes |
|
81,454 |
|
|
|
97,438 |
|
|
|
|
|
|
|
GAAP income tax
provision (benefit) |
|
(33,770 |
) |
|
|
2,155 |
|
Adjustment for non-cash tax benefits/expenses |
|
40,286 |
|
|
|
(138 |
) |
Non-GAAP
income tax provision |
|
6,516 |
|
|
|
2,017 |
|
|
|
|
|
|
|
GAAP net income |
|
10,261 |
|
|
|
52,944 |
|
Total
non-GAAP adjustments before income taxes |
|
104,963 |
|
|
|
42,339 |
|
Less:
total tax adjustments |
|
40,286 |
|
|
|
(138 |
) |
Non-GAAP
net income |
$ |
74,938 |
|
|
$ |
95,421 |
|
|
|
|
|
|
|
Shares used in
computing non-GAAP basic net income per share |
|
65,950 |
|
|
|
63,454 |
|
Shares used in
computing non-GAAP diluted net income per share |
|
69,491 |
|
|
|
67,354 |
|
Non-GAAP basic net
income per share |
$ |
1.14 |
|
|
$ |
1.50 |
|
Non-GAAP diluted net
income per share |
$ |
1.08 |
|
|
$ |
1.42 |
|
|
|
|
|
|
|
|
|
MAXLINEAR, INC.UNAUDITED
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
Three Months Ended |
|
September 30, 2017 |
|
June 30, 2017 |
|
September 30, 2016 |
GAAP gross profit |
45.6 |
% |
|
49.1 |
% |
|
57.6 |
% |
Stock-based compensation |
0.1 |
% |
|
0.1 |
% |
|
0.1 |
% |
Performance based equity |
— |
% |
|
— |
% |
|
— |
% |
Amortization of inventory step-up |
9.0 |
% |
|
5.4 |
% |
|
2.7 |
% |
Amortization of purchased intangible assets |
7.0 |
% |
|
6.0 |
% |
|
2.7 |
% |
Depreciation of fixed asset step-up |
0.1 |
% |
|
0.1 |
% |
|
— |
% |
Deferred
profit eliminated in purchase price accounting |
0.7 |
% |
|
3.7 |
% |
|
— |
% |
Non-GAAP gross
profit |
62.5 |
% |
|
64.4 |
% |
|
63.1 |
% |
|
|
|
|
|
|
GAAP R&D
expenses |
25.8 |
% |
|
27.9 |
% |
|
26.9 |
% |
Stock-based compensation |
(3.8 |
)% |
|
(3.9 |
)% |
|
(4.3 |
)% |
Incentive
award compensation |
— |
% |
|
— |
% |
|
(0.2 |
)% |
Performance based equity |
(0.9 |
)% |
|
(1.0 |
)% |
|
(0.9 |
)% |
Amortization of purchased intangible assets |
(0.1 |
)% |
|
(0.1 |
)% |
|
— |
% |
Depreciation of fixed asset step-up |
(0.5 |
)% |
|
(0.7 |
)% |
|
— |
% |
Restricted merger proceeds and contingent consideration |
— |
% |
|
— |
% |
|
(0.3 |
)% |
Non-GAAP R&D
expenses |
20.5 |
% |
|
22.2 |
% |
|
21.2 |
% |
|
|
|
|
|
|
GAAP SG&A
expenses |
25.6 |
% |
|
30.1 |
% |
|
18.3 |
% |
Stock-based compensation |
(2.6 |
)% |
|
(2.9 |
)% |
|
(1.9 |
)% |
Incentive
award compensation |
— |
% |
|
— |
% |
|
— |
% |
Performance based equity |
(0.5 |
)% |
|
(0.5 |
)% |
|
(1.0 |
)% |
Amortization of purchased intangible assets |
(8.7 |
)% |
|
(7.9 |
)% |
|
(3.2 |
)% |
Depreciation of fixed asset step-up |
(0.1 |
)% |
|
(0.1 |
)% |
|
— |
% |
Acquisition and integration costs |
(0.9 |
)% |
|
(5.4 |
)% |
|
(0.6 |
)% |
Restricted merger proceeds and contingent consideration |
— |
% |
|
— |
% |
|
(0.1 |
)% |
IP
litigation costs, net |
— |
% |
|
(0.1 |
)% |
|
— |
% |
Non-GAAP SG&A
expenses |
12.8 |
% |
|
13.2 |
% |
|
11.5 |
% |
|
|
|
|
|
|
GAAP IPR&D
impairment losses |
1.8 |
% |
|
— |
% |
|
1.3 |
% |
IPR&D
impairment losses |
(1.8 |
)% |
|
— |
% |
|
(1.3 |
)% |
Non-GAAP IPR&D
impairment losses |
— |
% |
|
— |
% |
|
— |
% |
|
|
|
|
|
|
GAAP restructuring
expenses |
1.9 |
% |
|
6.3 |
% |
|
— |
% |
Restructuring charges |
(1.9 |
)% |
|
(6.3 |
)% |
|
— |
% |
Non-GAAP restructuring
expenses |
— |
% |
|
— |
% |
|
— |
% |
|
|
|
|
|
|
GAAP income (loss) from
operations |
(9.4 |
)% |
|
(15.2 |
)% |
|
11.1 |
% |
Total non-GAAP
adjustments |
38.5 |
% |
|
44.2 |
% |
|
19.3 |
% |
Non-GAAP income from
operations |
29.1 |
% |
|
29.0 |
% |
|
30.4 |
% |
|
|
|
|
|
|
GAAP and non-GAAP
interest and other income (expense), net |
(4.2 |
)% |
|
(2.6 |
)% |
|
0.1 |
% |
|
|
|
|
|
|
GAAP income (loss)
before income taxes |
(13.6 |
)% |
|
(17.8 |
)% |
|
11.2 |
% |
Total non-GAAP
adjustments before income taxes |
38.5 |
% |
|
44.1 |
% |
|
19.3 |
% |
Non-GAAP income before
income taxes |
24.9 |
% |
|
26.4 |
% |
|
30.5 |
% |
|
|
|
|
|
|
GAAP income tax
provision (benefit) |
(5.5 |
)% |
|
(28.3 |
)% |
|
1.1 |
% |
Adjustment for non-cash tax benefits/expenses |
6.5 |
% |
|
30.9 |
% |
|
(0.6 |
)% |
Non-GAAP income tax
provision |
1.1 |
% |
|
2.7 |
% |
|
0.5 |
% |
|
|
|
|
|
|
GAAP net income
(loss) |
(8.1 |
)% |
|
10.5 |
% |
|
10.0 |
% |
Total
non-GAAP adjustments before income taxes |
38.5 |
% |
|
44.1 |
% |
|
19.3 |
% |
Less:
total tax adjustments |
6.5 |
% |
|
30.9 |
% |
|
(0.6 |
)% |
Non-GAAP
net income |
23.9 |
% |
|
23.7 |
% |
|
29.9 |
% |
|
|
|
|
|
|
|
|
|
MAXLINEAR, INC.UNAUDITED
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
Nine Months Ended |
|
September 30, 2017 |
|
September 30, 2016 |
GAAP gross profit |
50.8 |
% |
|
59.7 |
% |
Stock-based compensation |
0.1 |
% |
|
0.1 |
% |
Performance based equity |
— |
% |
|
— |
% |
Amortization of inventory step-up |
5.1 |
% |
|
1.0 |
% |
Amortization of purchased intangible assets |
5.5 |
% |
|
1.9 |
% |
Depreciation of fixed asset step-up |
0.1 |
% |
|
— |
% |
Deferred
profit eliminated in purchase price accounting |
1.5 |
% |
|
— |
% |
Non-GAAP gross
profit |
63.2 |
% |
|
62.7 |
% |
|
|
|
|
GAAP R&D
expenses |
26.8 |
% |
|
24.5 |
% |
Stock-based compensation |
(3.9 |
)% |
|
(3.4 |
)% |
Incentive
award compensation |
— |
% |
|
(0.2 |
)% |
Performance based equity |
(1.0 |
)% |
|
(1.2 |
)% |
Amortization of purchased intangible assets |
(0.1 |
)% |
|
(0.1 |
)% |
Depreciation of fixed asset step-up |
(0.4 |
)% |
|
— |
% |
Restricted merger proceeds and contingent consideration |
— |
% |
|
(0.2 |
)% |
Non-GAAP R&D
expenses |
21.4 |
% |
|
19.4 |
% |
|
|
|
|
GAAP SG&A
expenses |
25.8 |
% |
|
15.9 |
% |
Stock-based compensation |
(2.6 |
)% |
|
(1.8 |
)% |
Incentive
award compensation |
— |
% |
|
— |
% |
Performance based equity |
(0.5 |
)% |
|
(0.8 |
)% |
Amortization of purchased intangible assets |
(6.5 |
)% |
|
(1.3 |
)% |
Depreciation of fixed asset step-up |
— |
% |
|
— |
% |
Acquisition and integration costs |
(3.3 |
)% |
|
(0.6 |
)% |
Restricted merger proceeds and contingent consideration |
— |
% |
|
(0.1 |
)% |
IP
litigation costs, net |
(0.1 |
)% |
|
(0.2 |
)% |
Non-GAAP SG&A
expenses |
12.8 |
% |
|
11.1 |
% |
|
|
|
|
GAAP IPR&D
impairment losses |
0.7 |
% |
|
0.4 |
% |
IPR&D
impairment losses |
(0.7 |
)% |
|
(0.4 |
)% |
Non-GAAP IPR&D
impairment losses |
— |
% |
|
— |
% |
|
|
|
|
GAAP restructuring
expenses |
2.8 |
% |
|
0.7 |
% |
Restructuring charges |
(2.8 |
)% |
|
(0.7 |
)% |
Non-GAAP restructuring
expenses |
— |
% |
|
— |
% |
|
|
|
|
GAAP income (loss) from
operations |
(5.2 |
)% |
|
18.2 |
% |
Total non-GAAP
adjustments |
34.2 |
% |
|
14.1 |
% |
Non-GAAP income from
operations |
29.0 |
% |
|
32.3 |
% |
|
|
|
|
GAAP and non-GAAP
interest and other income (expense), net |
(2.4 |
)% |
|
0.1 |
% |
|
|
|
|
GAAP income (loss)
before income taxes |
(7.7 |
)% |
|
18.3 |
% |
Total non-GAAP
adjustments before income taxes |
34.2 |
% |
|
14.1 |
% |
Non-GAAP income before
income taxes |
26.6 |
% |
|
32.4 |
% |
|
|
|
|
GAAP income tax
provision (benefit) |
(11.0 |
)% |
|
0.7 |
% |
Adjustment for non-cash tax benefits/expenses |
13.1 |
% |
|
— |
% |
Non-GAAP income tax
provision |
2.1 |
% |
|
0.7 |
% |
|
|
|
|
GAAP net income |
3.3 |
% |
|
17.6 |
% |
Total
non-GAAP adjustments before income taxes |
34.2 |
% |
|
14.1 |
% |
Less:
total tax adjustments |
13.1 |
% |
|
— |
% |
Non-GAAP
net income |
24.4 |
% |
|
31.7 |
% |
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