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MaxLinear, Inc. Announces Second Quarter 2023 Financial Results

  • 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

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

 

 

 

82

 

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

 

 

 

40

 

 

 

5

 

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

 

 

 

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

 

 

 

(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

 

22

 

 

22

 

 

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

)

 

 

91

 

 

 

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

 

68

 

 

 

111

 

 

 

56

 

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

 

 

75

 

 

 

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 MEASURES

AS 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

%

 

0.1

%

 

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

)%

 

(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 MEASURES

AS 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

%

 

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

)%

 

(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

%

 

Contacts

MaxLinear, Inc. Investor Relations Contact:

Leslie Green

Tel: +1 650-312-9060

lgreen@maxlinear.com

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