- Net revenue of $92.0 million in Q2, GAAP gross margin of
54.6% and non-GAAP gross margin of 60.2%
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, 2024.
Second Quarter Financial Highlights
GAAP basis:
- Net revenue was $92.0 million, down 3% sequentially and down
50% year-over-year.
- GAAP gross margin was 54.6%, compared to 51.7% in the prior
quarter, and 55.9% in the year-ago quarter.
- GAAP operating expenses were $91.0 million in the second
quarter 2024, or 99% of net revenue, compared to $123.9 million in
the prior quarter, or 130% of net revenue, and $108.8 million in
the year-ago quarter, or 59% of net revenue.
- GAAP loss from operations was 44% of net revenue, compared to
loss from operations of 78% of net revenue in the prior quarter,
and loss from operations of 3% of net revenue in the year-ago
quarter.
- Net cash flow used in operating activities was $2.7 million,
compared to net cash flow provided by operating activities of $16.0
million in the prior quarter, and net cash flow provided by
operating activities of $30.6 million in the year-ago quarter.
- GAAP diluted loss per share was $0.47, compared to diluted loss
per share of $0.88 in the prior quarter, and diluted loss per share
of $0.05 in the year-ago quarter.
Non-GAAP basis:
- Non-GAAP gross margin was 60.2%. This compares to 60.6% in the
prior quarter, and 61.0% in the year-ago quarter.
- Non-GAAP operating expenses were $74.8 million, or 81% of net
revenue, compared to $74.8 million or 78% of net revenue in the
prior quarter, and $82.5 million or 45% of net revenue in the
year-ago quarter.
- Non-GAAP loss from operations was 21% of net revenue, compared
to loss of 18% in the prior quarter, and income of 16% in the
year-ago quarter.
- Non-GAAP diluted loss per share was $0.25, compared to loss of
$0.21 in the prior quarter, and earnings of $0.34 in the year-ago
quarter.
Management Commentary
“In conclusion, we are excited and confident in our progress in
the infrastructure market with our wireless and optical
interconnect products, even as we await a broadband recovery,” said
Kishore Seendripu, PhD, Chairman and CEO. “In addition, our
Ethernet, storage, Wi-Fi7, and fiber PON gateway products are all
in the market today addressing additional new TAM, have strong
customer traction, and are poised for meaningful growth. We are
optimizing our efforts around these opportunities, which will be
transformative for our future business while driving maximum value
for our customers and shareholders.”
Third Quarter 2024 Business Outlook
The company expects net revenue in the third quarter of 2024 to
be approximately $70 million to $90 million. The Company also
estimates the following:
- GAAP gross margin of approximately 52.5% to 55.5%;
- Non-GAAP gross margin of approximately 57.0% to 60.0%;
- GAAP operating expenses of approximately $102 million to $108
million;
- Non-GAAP operating expenses of approximately $70 million to $76
million;
- GAAP and non-GAAP interest and other expense of approximately
$0 to $2.0 million each; and
- GAAP and non-GAAP diluted share count of approximately 84.1
million each.
Webcast and Conference Call
MaxLinear will host its second quarter financial results
conference call today, July 24, 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 August 7,
2024. A replay of the conference call will also be available until
August 7, 2024 by dialing US toll free: 1-877-660-6853 /
International: 1-201-612-7415 and Conference ID#: 13747243.
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 third 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; 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 June 30, 2024. All
forward-looking statements are based on the estimates, projections
and assumptions of management as of July 24, 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
as percentage of revenue, non-GAAP interest and other expenses,
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; 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; 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
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
June 30, 2024
March 31, 2024
June 30, 2023
Net revenue
$
91,990
$
95,269
$
183,938
Cost of net revenue
41,804
46,001
81,065
Gross profit
50,186
49,268
102,873
Operating expenses:
Research and development
56,541
64,766
70,657
Selling, general and administrative
33,600
36,488
33,717
Restructuring charges
865
22,630
4,436
Total operating expenses
91,006
123,884
108,810
Loss from operations
(40,820
)
(74,616
)
(5,937
)
Interest income
1,871
1,822
1,903
Interest expense
(2,706
)
(2,711
)
(2,591
)
Other income (expense), net
329
1,434
1,865
Total other income (expense), net
(506
)
545
1,177
Loss before income taxes
(41,326
)
(74,071
)
(4,760
)
Income tax benefit
(2,060
)
(1,762
)
(409
)
Net loss
$
(39,266
)
$
(72,309
)
$
(4,351
)
Net loss per share:
Basic
$
(0.47
)
$
(0.88
)
$
(0.05
)
Diluted
$
(0.47
)
$
(0.88
)
$
(0.05
)
Shares used to compute net loss per
share:
Basic
83,477
82,349
80,446
Diluted
83,477
82,349
80,446
MAXLINEAR, INC.
UNAUDITED GAAP CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share data)
Six Months Ended
June 30, 2024
June 30, 2023
Net revenue
$
187,259
$
432,380
Cost of net revenue
87,805
189,200
Gross profit
99,454
243,180
Operating expenses:
Research and development
121,307
137,948
Selling, general and administrative
70,088
72,370
Impairment losses
—
2,438
Restructuring charges
23,495
9,084
Total operating expenses
214,890
221,840
Income (loss) from operations
(115,436
)
21,340
Interest income
3,693
2,536
Interest expense
(5,417
)
(5,078
)
Other income (expense), net
1,763
1,541
Total other income (expense), net
39
(1,001
)
Income (loss) before income taxes
(115,397
)
20,339
Income tax provision (benefit)
(3,822
)
15,157
Net income (loss)
$
(111,575
)
$
5,182
Net income (loss) per share:
Basic
$
(1.35
)
$
0.06
Diluted
$
(1.35
)
$
0.06
Shares used to compute net income (loss)
per share:
Basic
82,913
79,961
Diluted
82,913
81,520
MAXLINEAR, INC.
UNAUDITED GAAP CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended
June 30, 2024
March 31, 2024
June 30, 2023
Operating Activities
Net loss
$
(39,266
)
$
(72,309
)
$
(4,351
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Amortization and depreciation
13,600
16,684
18,707
Amortization of debt issuance costs and
accretion of discount on debt and leases
665
688
625
Stock-based compensation
17,359
17,061
17,197
Deferred income taxes
(2,053
)
(2,685
)
758
Loss on disposal of property and
equipment
55
390
2,001
Unrealized holding gain on investments
—
—
(1,807
)
Impairment of leased right-of-use
assets
700
2,038
—
(Gain) loss on extinguishment of lease
liabilities
16
(569
)
—
Gain on foreign currency and other
(398
)
(968
)
(209
)
Excess tax benefits on stock based
awards
(152
)
(1,367
)
(791
)
Changes in operating assets and
liabilities:
Accounts receivable, net
41,290
44,389
33,098
Inventory
1,387
3,783
23,433
Prepaid expenses and other assets
1,281
(2,044
)
(1,314
)
Accounts payable, accrued expenses and
other current liabilities
(24,280
)
12,009
(26,378
)
Accrued compensation
(5,855
)
8,707
(3,348
)
Accrued price protection liability
(3,603
)
(6,451
)
(23,164
)
Lease liabilities
(2,540
)
(2,505
)
(2,914
)
Other long-term liabilities
(902
)
(881
)
(965
)
Net cash provided by (used in) operating
activities
(2,696
)
15,970
30,578
Investing Activities
Purchases of property and equipment
(3,013
)
(8,342
)
(5,037
)
Purchases of intangible assets
(2,775
)
(368
)
(4,894
)
Cash used in acquisitions, net of cash
acquired
—
—
(2,719
)
Net cash used in investing activities
(5,788
)
(8,710
)
(12,650
)
Financing Activities
Net proceeds from issuance of common
stock
1,579
—
3,073
Minimum tax withholding paid on behalf of
employees for restricted stock units
447
(2,103
)
(2,965
)
Net cash provided by (used in) financing
activities
2,026
(2,103
)
108
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(335
)
(583
)
(1,229
)
Increase (decrease) in cash, cash
equivalents and restricted cash
(6,793
)
4,574
16,807
Cash, cash equivalents and restricted cash
at beginning of period
192,930
188,356
208,836
Cash, cash equivalents and restricted cash
at end of period
$
186,137
$
192,930
$
225,643
MAXLINEAR, INC.
UNAUDITED GAAP CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended
June 30, 2024
June 30, 2023
Operating Activities
Net income (loss)
$
(111,575
)
$
5,182
Adjustments to reconcile net income (loss)
to cash provided by operating activities:
Amortization and depreciation
30,284
37,909
Impairment losses
—
2,438
Amortization of debt issuance costs and
accretion of discount on debt and leases
1,353
1,173
Stock-based compensation
34,420
33,645
Deferred income taxes
(4,738
)
8,886
Loss on disposal of property and
equipment
445
2,041
Unrealized holding gain on investments
—
(1,959
)
Impairment of leased right-of-use
assets
2,738
—
Gain on extinguishment of lease
liabilities
(553
)
—
(Gain) loss on foreign currency
(1,366
)
153
Excess tax benefits on stock-based
awards
(1,519
)
(1,298
)
Changes in operating assets and
liabilities:
Accounts receivable, net
85,679
16,167
Inventory
5,170
34,392
Prepaid expenses and other assets
(763
)
(5,652
)
Accounts payable, accrued expenses and
other current liabilities
(12,271
)
(27,264
)
Accrued compensation
2,852
3,862
Accrued price protection liability
(10,054
)
(33,041
)
Lease liabilities
(5,045
)
(6,009
)
Other long-term liabilities
(1,783
)
2,112
Net cash provided by operating
activities
13,274
72,737
Investing Activities
Purchases of property and equipment
(11,355
)
(10,253
)
Purchases of intangible assets
(3,143
)
(5,524
)
Cash used in acquisitions, net of cash
acquired
—
(12,384
)
Net cash used in investing activities
(14,498
)
(28,161
)
Financing Activities
Net proceeds from issuance of common
stock
1,579
3,076
Minimum tax withholding paid on behalf of
employees for restricted stock units
(1,656
)
(9,138
)
Net cash used in financing activities
(77
)
(6,062
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(918
)
(1,228
)
Increase (decrease) in cash, cash
equivalents and restricted cash
(2,219
)
37,286
Cash, cash equivalents and restricted cash
at beginning of period
188,356
188,357
Cash, cash equivalents and restricted cash
at end of period
$
186,137
$
225,643
MAXLINEAR, INC.
UNAUDITED GAAP CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, 2024
March 31, 2024
June 30, 2023
Assets
Current assets:
Cash and cash equivalents
$
185,108
$
191,882
$
224,579
Short-term restricted cash
1,006
1,028
1,042
Short-term investments
—
—
20,488
Accounts receivable, net
84,940
126,230
155,834
Inventory
94,738
96,125
126,152
Prepaid expenses and other current
assets
31,789
29,414
26,396
Total current assets
397,581
444,679
554,491
Long-term restricted cash
23
20
22
Property and equipment, net
65,422
68,338
73,845
Leased right-of-use assets
24,883
27,468
35,112
Intangible assets, net
61,786
64,939
91,203
Goodwill
318,588
318,588
318,456
Deferred tax assets
74,228
72,176
56,757
Other long-term assets
30,686
34,417
31,594
Total assets
$
973,197
$
1,030,625
$
1,161,480
Liabilities and stockholders’
equity
Current liabilities
$
190,277
$
223,854
$
241,729
Long-term lease liabilities
21,522
23,897
30,712
Long-term debt
122,684
122,529
122,064
Other long-term liabilities
21,459
22,362
20,928
Stockholders’ equity
617,255
637,983
746,047
Total liabilities and stockholders’
equity
$
973,197
$
1,030,625
$
1,161,480
MAXLINEAR, INC.
UNAUDITED RECONCILIATION OF
NON-GAAP ADJUSTMENTS
(in thousands, except per
share data)
Three Months Ended
June 30, 2024
March 31, 2024
June 30, 2023
GAAP gross profit
$
50,186
$
49,268
$
102,873
Stock-based compensation
173
181
246
Performance based equity
(37
)
72
(16
)
Amortization of purchased intangible
assets
5,089
8,221
9,117
Non-GAAP gross profit
55,411
57,742
112,220
GAAP R&D expenses
56,541
64,766
70,657
Stock-based compensation
(10,088
)
(10,441
)
(12,237
)
Performance based equity
1,789
(4,929
)
273
Research and development funded by
others
—
(1,000
)
(1,000
)
Non-GAAP R&D expenses
48,242
48,396
57,693
GAAP SG&A expenses
33,600
36,488
33,717
Stock-based compensation
(7,097
)
(6,439
)
(4,713
)
Performance based equity
722
(2,427
)
193
Amortization of purchased intangible
assets
(592
)
(591
)
(709
)
Acquisition and integration costs
(102
)
(664
)
(3,714
)
Non-GAAP SG&A expenses
26,531
26,367
24,774
GAAP restructuring expenses
865
22,630
4,436
Restructuring charges
(865
)
(22,630
)
(4,436
)
Non-GAAP restructuring expenses
—
—
—
GAAP loss from operations
(40,820
)
(74,616
)
(5,937
)
Total non-GAAP adjustments
21,458
57,595
35,690
Non-GAAP income (loss) from operations
(19,362
)
(17,021
)
29,753
GAAP interest and other income (expense),
net
(506
)
545
1,177
Non-recurring interest and other income
(expense), net
65
73
68
Non-GAAP interest and other income
(expense), net
(441
)
618
1,245
GAAP loss before income taxes
(41,326
)
(74,071
)
(4,760
)
Total non-GAAP adjustments
21,523
57,668
35,758
Non-GAAP income (loss) before income
taxes
(19,803
)
(16,403
)
30,998
GAAP income tax benefit
(2,060
)
(1,762
)
(409
)
Adjustment for non-cash tax
benefits/expenses
3,205
2,762
3,508
Non-GAAP income tax provision
1,145
1,000
3,099
GAAP net loss
(39,266
)
(72,309
)
(4,351
)
Total non-GAAP adjustments before income
taxes
21,523
57,668
35,758
Less: total tax adjustments
3,205
2,762
3,508
Non-GAAP net income (loss)
$
(20,948
)
$
(17,403
)
$
27,899
Shares used in computing GAAP and non-GAAP
basic net income (loss) per share
83,477
82,349
80,446
Shares used in computing GAAP diluted net
loss per share
83,477
82,349
80,446
Dilutive common stock equivalents
—
—
1,252
Shares used in computing non-GAAP diluted
net income (loss) per share
83,477
82,349
81,698
Non-GAAP basic net income (loss) per
share
$
(0.25
)
$
(0.21
)
$
0.35
Non-GAAP diluted net income (loss) per
share
$
(0.25
)
$
(0.21
)
$
0.34
MAXLINEAR, INC.
UNAUDITED RECONCILIATION OF
NON-GAAP ADJUSTMENTS
(in thousands, except per
share data)
Six months ended
June 30, 2024
June 30, 2023
GAAP gross profit
$
99,454
$
243,180
Stock-based compensation
354
456
Performance based equity
35
75
Amortization of purchased intangible
assets
13,310
18,438
Non-GAAP gross profit
113,153
262,149
GAAP R&D expenses
121,307
137,948
Stock-based compensation
(20,529
)
(23,692
)
Performance based equity
(3,140
)
(3,362
)
Research and development funded by
others
(1,000
)
(2,000
)
Non-GAAP R&D expenses
96,638
108,894
GAAP SG&A expenses
70,088
72,370
Stock-based compensation
(13,536
)
(9,497
)
Performance based equity
(1,705
)
(1,551
)
Amortization of purchased intangible
assets
(1,183
)
(1,637
)
Acquisition and integration costs
(766
)
(5,315
)
Non-GAAP SG&A expenses
52,898
54,370
GAAP impairment losses
—
2,438
Impairment losses
—
(2,438
)
Non-GAAP impairment losses
—
—
GAAP restructuring expenses
23,495
9,084
Restructuring charges
(23,495
)
(9,084
)
Non-GAAP restructuring expenses
—
—
GAAP income (loss) from operations
(115,436
)
21,340
Total non-GAAP adjustments
79,053
77,545
Non-GAAP income (loss) from operations
(36,383
)
98,885
GAAP interest and other income (expense),
net
39
(1,001
)
Non-recurring interest and other income
(expense), net
138
179
Non-GAAP interest and other income
(expense), net
177
(822
)
GAAP income (loss) before income taxes
(115,397
)
20,339
Total non-GAAP adjustments
79,191
77,724
Non-GAAP income (loss) before income
taxes
(36,206
)
98,063
GAAP income tax provision (benefit)
(3,822
)
15,157
Adjustment for non-cash tax
benefits/expenses
5,967
(5,351
)
Non-GAAP income tax provision
2,145
9,806
GAAP net income (loss)
(111,575
)
5,182
Total non-GAAP adjustments before income
taxes
79,191
77,724
Less: total tax adjustments
5,967
(5,351
)
Non-GAAP net income (loss)
$
(38,351
)
$
88,257
Shares used in computing GAAP and non-GAAP
basic net income (loss) per share
82,913
79,961
Shares used in computing GAAP diluted net
income (loss) per share
82,913
81,520
Dilutive common stock equivalents
—
—
Shares used in computing non-GAAP diluted
net income (loss) per share
82,913
81,520
Non-GAAP basic net income (loss) per
share
$
(0.46
)
$
1.10
Non-GAAP diluted net income (loss) per
share
$
(0.46
)
$
1.08
MAXLINEAR, INC.
UNAUDITED RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
AS A PERCENTAGE OF NET
REVENUE
Three Months Ended
June 30, 2024
March 31, 2024
June 30, 2023
GAAP gross margin
54.6
%
51.7
%
55.9
%
Stock-based compensation
0.2
%
0.2
%
0.1
%
Performance based equity
—
%
0.1
%
—
%
Amortization of purchased intangible
assets
5.5
%
8.6
%
5.0
%
Non-GAAP gross margin
60.2
%
60.6
%
61.0
%
GAAP R&D expenses
61.5
%
68.0
%
38.4
%
Stock-based compensation
(11.0
)%
(11.0
)%
(6.7
)%
Performance based equity
1.9
%
(5.2
)%
0.2
%
Research and development funded by
others
—
%
(1.1
)%
(0.5
)%
Non-GAAP R&D expenses
52.4
%
50.8
%
31.4
%
GAAP SG&A expenses
36.5
%
38.3
%
18.3
%
Stock-based compensation
(7.7
)%
(6.8
)%
(2.6
)%
Performance based equity
0.8
%
(2.6
)%
0.1
%
Amortization of purchased intangible
assets
(0.6
)%
(0.6
)%
(0.4
)%
Acquisition and integration costs
(0.1
)%
(0.7
)%
(2.0
)%
Non-GAAP SG&A expenses
28.8
%
27.7
%
13.5
%
GAAP restructuring expenses
0.9
%
23.8
%
2.4
%
Restructuring charges
(0.9
)%
(23.8
)%
(2.4
)%
Non-GAAP restructuring expenses
—
%
—
%
—
%
GAAP loss from operations
(44.4
)%
(78.3
)%
(3.2
)%
Total non-GAAP adjustments
23.3
%
60.5
%
19.4
%
Non-GAAP income (loss) from operations
(21.1
)%
(17.9
)%
16.2
%
GAAP interest and other income (expense),
net
(0.6
)%
0.6
%
0.6
%
Non-recurring interest and other income
(expense), net
0.1
%
0.1
%
—
%
Non-GAAP interest and other income
(expense), net
(0.5
)%
0.7
%
0.6
%
GAAP loss before income taxes
(44.9
)%
(77.8
)%
(2.6
)%
Total non-GAAP adjustments before income
taxes
23.4
%
60.5
%
19.4
%
Non-GAAP income (loss) before income
taxes
(21.5
)%
(17.2
)%
16.9
%
GAAP income tax benefit
(2.2
)%
(1.9
)%
(0.2
)%
Adjustment for non-cash tax
benefits/expenses
3.5
%
2.9
%
1.9
%
Non-GAAP income tax provision
1.2
%
1.1
%
1.7
%
GAAP net loss
(42.7
)%
(75.9
)%
(2.4
)%
Total non-GAAP adjustments before income
taxes
23.4
%
60.5
%
19.4
%
Less: total tax adjustments
3.5
%
2.9
%
1.9
%
Non-GAAP net income (loss)
(22.8
)%
(18.3
)%
15.2
%
MAXLINEAR, INC.
UNAUDITED RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
AS A PERCENTAGE OF NET
REVENUE
Six months ended
June 30, 2024
June 30, 2023
GAAP gross margin
53.1
%
56.2
%
Stock-based compensation
0.2
%
0.1
%
Performance based equity
—
%
—
%
Amortization of purchased intangible
assets
7.1
%
4.3
%
Non-GAAP gross margin
60.4
%
60.6
%
GAAP R&D expenses
64.8
%
31.9
%
Stock-based compensation
(11.0
)%
(5.5
)%
Performance based equity
(1.7
)%
(0.8
)%
Research and development funded by
others
(0.5
)%
(0.5
)%
Non-GAAP R&D expenses
51.6
%
25.2
%
GAAP SG&A expenses
37.4
%
16.7
%
Stock-based compensation
(7.2
)%
(2.2
)%
Performance based equity
(0.9
)%
(0.4
)%
Amortization of purchased intangible
assets
(0.6
)%
(0.4
)%
Acquisition and integration costs
(0.4
)%
(1.2
)%
Non-GAAP SG&A expenses
28.3
%
12.6
%
GAAP impairment losses
—
%
0.6
%
Impairment losses
—
%
(0.6
)%
Non-GAAP impairment losses
—
%
—
%
GAAP restructuring expenses
12.6
%
2.1
%
Restructuring charges
(12.6
)%
(2.1
)%
Non-GAAP restructuring expenses
—
%
—
%
GAAP income (loss) from operations
(61.7
)%
4.9
%
Total non-GAAP adjustments
42.2
%
17.9
%
Non-GAAP income (loss) from operations
(19.4
)%
22.9
%
GAAP interest and other income (expense),
net
—
%
(0.2
)%
Non-recurring interest and other income
(expense), net
0.1
%
—
%
Non-GAAP interest and other income
(expense), net
0.1
%
(0.2
)%
GAAP income (loss) before income taxes
(61.6
)%
4.7
%
Total non-GAAP adjustments
42.3
%
18.0
%
Non-GAAP income (loss) before income
taxes
(19.3
)%
22.7
%
GAAP income tax provision (benefit)
(2.0
)%
3.5
%
Adjustment for non-cash tax
benefits/expenses
3.2
%
(1.2
)%
Non-GAAP income tax provision
1.2
%
2.3
%
GAAP net income (loss)
(59.6
)%
1.2
%
Total non-GAAP adjustments before income
taxes
42.3
%
18.0
%
Less: total tax adjustments
3.2
%
(1.2
)%
Non-GAAP net income (loss)
(20.5
)%
20.4
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240724295764/en/
MaxLinear, Inc. Investor Relations Contact:
Leslie Green Tel: +1 650-312-9060 lgreen@maxlinear.com
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