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MaxLinear, Inc. Announces Fourth Quarter and Fiscal Year 2023 Financial Results

  • Net revenue of $125.4 million in Q4, GAAP gross margin of 54.7% and non-GAAP gross margin of 61.4%
  • FY23 revenue of $693.3 million, GAAP gross margin of 55.6% and non-GAAP gross margin of 60.8%

MaxLinear, Inc. (Nasdaq: MXL), a leading provider of radio frequency (RF), analog, digital and mixed-signal integrated circuits, today announced financial results for the fourth quarter and fiscal year ended December 31, 2023.

Fourth Quarter Financial Highlights

GAAP basis:

  • Net revenue was $125.4 million, down 8% sequentially and down 57% year-over-year.
  • GAAP gross margin was 54.7%, compared to 54.6% in the prior quarter, and 56.2% in the year-ago quarter.
  • GAAP operating expenses were $110.3 million in the fourth quarter 2023, or 88% of net revenue, compared to $91.8 million in the prior quarter, or 68% of net revenue, and $122.2 million in the year-ago quarter, or 42% of net revenue.
  • GAAP loss from operations was 33% of net revenue, compared to loss from operations of 13% of net revenue in the prior quarter, and income from operations of 14% of net revenue in the year-ago quarter.
  • Net cash flow used in operating activities was $16.6 million, compared to net cash flow used in operating activities of $12.8 million in the prior quarter, and net cash flow provided by operating activities of $69.4 million in the year-ago quarter.
  • GAAP diluted loss per share was $0.47, compared to diluted loss per share of $0.49 in the prior quarter, and diluted earnings per share of $0.38 in the year-ago quarter.

Non-GAAP basis:

  • Non-GAAP gross margin was 61.4%. This compares to 60.8% in the prior quarter, and 59.6% in the year-ago quarter.
  • Non-GAAP operating expenses were $75.7 million, or 60% of net revenue, compared to $75.1 million or 55% of net revenue in the prior quarter, and $78.5 million or 27% of net revenue in the year-ago quarter.
  • Non-GAAP income from operations was 1% of net revenue, compared to 5% in the prior quarter, and 32% in the year-ago quarter.
  • Non-GAAP diluted earnings per share was $0.01, compared to $0.02 in the prior quarter, and $1.07 in the year-ago quarter.

Fiscal Year 2023 Financial Highlights

  • Net revenue was $693.3 million, down 38% over fiscal 2022.
  • GAAP gross margin was 55.6%, down from 58.0% in the prior year, and non-GAAP gross margin was 60.8%, down from 61.6% the prior year.
  • GAAP operating expenses were $423.9 million, or 61% of net revenue, compared to $469.5 million or 42% of net revenue in fiscal 2022, and non-GAAP operating expenses were $314.1 million, or 45% of net revenue, compared to $320.5 million or 29% of net revenue in the prior year.
  • GAAP loss from operations was 6% of net revenue, compared to GAAP income from operations of 16% in fiscal 2022, and non-GAAP income from operations was 15.5% of net revenue, compared to 33.0% in the prior year.
  • Net cash flow provided by operations of $43.4 million, compared to $388.7 million in fiscal 2022.
  • GAAP diluted loss per share was $(0.91) compared to GAAP diluted earnings per share of $1.55 in the prior year, and non-GAAP diluted earnings per share was $1.10 compared to $4.23 in fiscal 2022.

Management Commentary

In the fourth quarter, we delivered $125.4 million in revenues, with solid gross margin performance and positive cash flow. For 2023, revenues were $693.3 million, with wireless infrastructure continuing to be a highlight, growing 30% over the previous year.

“As we look ahead, we believe 2024 will be the start of an exciting period of growth and opportunity for MaxLinear. Market headwinds of the past year in broadband and connectivity are likely to become tailwinds over time when customer inventory rationalization winds down and incentive programs begin to provide new market stimulus. Most importantly, the investments we made in product innovations in wireless and optical datacenter network infrastructure, Wi-Fi, ethernet, and fiber broadband access gateways are beginning to open up new and significant revenue opportunities that are expected to drive our growth for many years to come,” commented Kishore Seendripu, Ph.D., Chairman and CEO.

First Quarter 2024 Business Outlook

The company expects net revenue in the first quarter of 2024 to be approximately $85 million to $105 million. The Company also estimates the following:

  • GAAP gross margin of approximately 50.0% to 54.0%;
  • Non-GAAP gross margin of approximately 59.5% to 62.5%;
  • GAAP operating expenses of approximately $115 million to $125 million;
  • Non-GAAP operating expenses of approximately $72 million to $78 million;
  • GAAP and non-GAAP interest and other expense of approximately $1 million to $2 million; and
  • GAAP and non-GAAP diluted share count of approximately 82.3 million each.

Webcast and Conference Call

MaxLinear will host its fourth quarter financial results conference call today, January 31, 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 February 14, 2024. A replay of the conference call will also be available until February 14, 2024 by dialing US toll free: 1-877-660-6853 / International: 1-201-612-7415 and Conference ID#: 13743453.

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 first 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; changes in customer inventory and market stimulus from government incentive programs and their effects on the broadband and connectivity markets; and settlement of bonus awards for our 2023 performance period. 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; 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; 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 Annual Report on Form 10-K for the year ended December 31, 2023. All forward-looking statements are based on the estimates, projections and assumptions of management as of January 31, 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 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, including costs incurred related to the termination of the previously pending (now terminated) merger with Silicon Motion; (vii) impairment of intangible assets; (viii) severance and other restructuring charges; (ix) other non-recurring interest and other income (expenses), net attributable to acquisitions, including ticking fees paid to lenders following the termination of the previously pending (now terminated) merger with Silicon Motion; and (x) non-cash income tax benefits and expenses. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP financial measures. Non-GAAP financial measures are subject to limitations, and should be read only in conjunction with the company’s consolidated financial statements prepared in accordance with GAAP. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our GAAP results of operations. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

We believe that non-GAAP financial measures can provide useful information to both management and investors by excluding certain non-cash and other one-time expenses that we believe are not indicative of our core operating results. Among other uses, our management uses non-GAAP measures to compare our performance relative to forecasts and strategic plans and to benchmark our performance externally against competitors. In addition, management’s incentive compensation will be determined in part using these non-GAAP measures because we believe non-GAAP measures better reflect our core operating performance.

The following are explanations of each type of adjustment that we incorporate into non-GAAP financial measures:

Stock-based compensation expense relates to equity incentive awards granted to our employees, directors, and consultants. Our equity incentive plans are important components of our employee incentive compensation arrangements and are reflected as expenses in our GAAP results. Stock-based compensation expense has been and will continue to be a significant recurring expense for MaxLinear. While we include the dilutive impact of equity awards in weighted average shares outstanding, the expense associated with stock-based awards reflects a non-cash charge that we exclude from non-GAAP net income.

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, including costs incurred related to the termination of the previously pending (now terminated) merger with Silicon Motion; ticking fees paid to lenders following the termination of such merger which were recorded in other expense; and accretion of discount on contingent consideration to interest expense.

Research and development funded by others represents proceeds received under contracts for jointly funded R&D projects to develop technology that may be commercialized into a product in the future. Initially such proceeds may not yet be recognized in GAAP results if, pursuant to contract terms, the Company may be required to repay all or a portion of the funds provided by the other party under certain conditions. Management believes it is not probable that it will trigger such conditions. Once such conditions have been resolved, the proceeds are recognized in GAAP results, and accordingly, reversed from non-GAAP results.

Impairment losses are related to abandonment of acquired or purchased intangible assets.

Restructuring charges incurred are related to our restructuring plans which eliminate redundancies and primarily include severance and restructuring costs related to impairment of leased right-of-use assets or from exiting certain facilities.

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 first 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

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

Net revenue

$

125,353

 

 

$

135,530

 

 

$

290,586

 

Cost of net revenue

 

56,814

 

 

 

61,586

 

 

 

127,246

 

Gross profit

 

68,539

 

 

 

73,944

 

 

 

163,340

 

Operating expenses:

 

 

 

 

 

Research and development

 

65,250

 

 

 

66,306

 

 

 

73,724

 

Selling, general and administrative

 

34,384

 

 

 

25,402

 

 

 

44,472

 

Impairment losses

 

 

 

 

 

 

 

2,811

 

Restructuring charges

 

10,648

 

 

 

54

 

 

 

1,172

 

Total operating expenses

 

110,282

 

 

 

91,762

 

 

 

122,179

 

Income (loss) from operations

 

(41,743

)

 

 

(17,818

)

 

 

41,161

 

Interest income

 

1,781

 

 

 

1,736

 

 

 

70

 

Interest expense

 

(2,909

)

 

 

(2,715

)

 

 

(2,292

)

Other income (expense), net

 

240

 

 

 

(22,721

)

 

 

1,774

 

Total other income (expense), net

 

(888

)

 

 

(23,700

)

 

 

(448

)

Income (loss) before income taxes

 

(42,631

)

 

 

(41,518

)

 

 

40,713

 

Income tax provision (benefit)

 

(4,131

)

 

 

(1,689

)

 

 

9,633

 

Net income (loss)

$

(38,500

)

 

$

(39,829

)

 

$

31,080

 

Net income (loss) per share:

 

 

 

 

 

Basic

$

(0.47

)

 

$

(0.49

)

 

$

0.40

 

Diluted

$

(0.47

)

 

$

(0.49

)

 

$

0.38

 

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

 

 

 

 

 

Basic

 

81,681

 

 

 

81,249

 

 

 

78,649

 

Diluted

 

81,681

 

 

 

81,249

 

 

 

82,406

 

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

 

 

 

 

 

 

 

Year Ended

 

 

December 31, 2023

 

December 31, 2022

Net revenue

 

$

693,263

 

 

$

1,120,252

 

Cost of net revenue

 

 

307,600

 

 

 

470,483

 

Gross profit

 

 

385,663

 

 

 

649,769

 

Operating expenses:

 

 

 

 

Research and development

 

 

269,504

 

 

 

296,442

 

Selling, general and administrative

 

 

132,156

 

 

 

168,008

 

Impairment losses

 

 

2,438

 

 

 

2,811

 

Restructuring charges

 

 

19,786

 

 

 

2,265

 

Total operating expenses

 

 

423,884

 

 

 

469,526

 

Income (loss) from operations

 

 

(38,221

)

 

 

180,243

 

Interest income

 

 

6,053

 

 

 

245

 

Interest expense

 

 

(10,702

)

 

 

(9,768

)

Other income (expense), net

 

 

(20,940

)

 

 

3,478

 

Total other income (expense), net

 

 

(25,589

)

 

 

(6,045

)

Income (loss) before income taxes

 

 

(63,810

)

 

 

174,198

 

Income tax provision

 

 

9,337

 

 

 

49,158

 

Net income (loss)

 

$

(73,147

)

 

$

125,040

 

Net income (loss) per share:

 

 

 

 

Basic

 

$

(0.91

)

 

$

1.60

 

Diluted

 

$

(0.91

)

 

$

1.55

 

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

 

 

 

 

Basic

 

 

80,719

 

 

 

78,039

 

Diluted

 

 

80,719

 

 

 

80,852

 

 

 

 

 

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

Three Months Ended

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

Operating Activities

 

 

 

 

 

Net income (loss)

$

(38,500

)

 

$

(39,829

)

 

$

31,080

 

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

 

 

 

 

 

Amortization and depreciation

 

16,593

 

 

 

17,014

 

 

 

18,825

 

Impairment losses

 

 

 

 

 

 

 

2,811

 

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

 

703

 

 

 

685

 

 

 

513

 

Stock-based compensation

 

16,413

 

 

 

5,118

 

 

 

23,550

 

Deferred income taxes

 

(10,954

)

 

 

(2,384

)

 

 

133

 

Loss on disposal of property and equipment

 

 

 

 

16

 

 

 

3

 

Gain on sale of investments

 

(434

)

 

 

 

 

 

(3,375

)

Unrealized holding (gain) loss on investments

 

(2,152

)

 

 

5,876

 

 

 

58

 

(Gain) loss on settlement of pension

 

 

 

 

(1,008

)

 

 

 

(Gain) loss on foreign currency and other

 

2,335

 

 

 

(13

)

 

 

1,416

 

Excess tax (benefits) deficiencies on stock based awards

 

276

 

 

 

769

 

 

 

(219

)

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable, net

 

(12,363

)

 

 

(2,398

)

 

 

7,101

 

Inventory

 

15,034

 

 

 

11,210

 

 

 

5,426

 

Prepaid expenses and other assets

 

887

 

 

 

(4,563

)

 

 

(2,168

)

Accounts payable, accrued expenses and other current liabilities

 

(11,514

)

 

 

9,347

 

 

 

(16,574

)

Accrued compensation

 

932

 

 

 

4,914

 

 

 

9,816

 

Accrued price protection liability

 

3,474

 

 

 

(11,995

)

 

 

(3,394

)

Lease liabilities

 

(2,780

)

 

 

(2,882

)

 

 

(2,955

)

Other long-term liabilities

 

5,477

 

 

 

(2,669

)

 

 

(2,690

)

Net cash provided by (used in) operating activities

 

(16,573

)

 

 

(12,792

)

 

 

69,357

 

Investing Activities

 

 

 

 

 

Purchases of property and equipment

 

(1,274

)

 

 

(1,927

)

 

 

(16,628

)

Purchases of intangible assets

 

(157

)

 

 

(674

)

 

 

(744

)

Cash used in acquisitions, net of cash acquired

 

(940

)

 

 

 

 

 

 

Sales of trading securities

 

17,198

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

14,827

 

 

 

(2,601

)

 

 

(17,372

)

Financing Activities

 

 

 

 

 

Payment of debt commitment fees

 

 

 

 

(18,325

)

 

 

 

Repayment of debt

 

 

 

 

 

 

 

(50,000

)

Net proceeds from issuance of common stock

 

1,391

 

 

 

92

 

 

 

1,792

 

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

 

(220

)

 

 

(3,232

)

 

 

(369

)

Net cash provided by (used in) financing activities

 

1,171

 

 

 

(21,465

)

 

 

(48,577

)

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

 

779

 

 

 

(633

)

 

 

2,456

 

Increase (decrease) in cash, cash equivalents and restricted cash

 

204

 

 

 

(37,491

)

 

 

5,864

 

Cash, cash equivalents and restricted cash at beginning of period

 

188,152

 

 

 

225,643

 

 

 

182,493

 

Cash, cash equivalents and restricted cash at end of period

$

188,356

 

 

$

188,152

 

 

$

188,357

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

Year Ended

 

 

December 31, 2023

 

December 31, 2022

Operating Activities

 

 

 

 

Net income (loss)

 

$

(73,147

)

 

$

125,040

 

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

 

 

 

 

Amortization and depreciation

 

 

71,516

 

 

 

80,731

 

Impairment losses

 

 

2,438

 

 

 

2,811

 

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

 

 

2,561

 

 

 

1,975

 

Stock-based compensation

 

 

55,176

 

 

 

81,704

 

Deferred income taxes

 

 

(4,452

)

 

 

23,454

 

Loss on disposal of property and equipment

 

 

2,057

 

 

 

170

 

Gain on sale of investments

 

 

(434

)

 

 

(3,375

)

Unrealized holding loss on investments

 

 

1,765

 

 

 

1,476

 

Impairment of leased right-of-use assets

 

 

 

 

 

462

 

(Gain) loss on settlement of pension

 

 

(1,008

)

 

 

 

(Gain) loss on foreign currency

 

 

2,475

 

 

 

(1,829

)

Excess tax benefits on stock-based awards

 

 

(253

)

 

 

(9,921

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable, net

 

 

1,406

 

 

 

(50,875

)

Inventory

 

 

60,636

 

 

 

(28,841

)

Prepaid expenses and other assets

 

 

(9,328

)

 

 

1,789

 

Accounts payable, accrued expenses and other current liabilities

 

 

(29,431

)

 

 

65,815

 

Accrued compensation

 

 

9,708

 

 

 

42,003

 

Accrued price protection liability

 

 

(41,562

)

 

 

73,574

 

Lease liabilities

 

 

(11,671

)

 

 

(11,440

)

Other long-term liabilities

 

 

4,920

 

 

 

(5,997

)

Net cash provided by operating activities

 

 

43,372

 

 

 

388,726

 

Investing Activities

 

 

 

 

Purchases of property and equipment

 

 

(13,454

)

 

 

(41,253

)

Purchases of intangible assets

 

 

(6,355

)

 

 

(11,184

)

Cash used in acquisitions, net of cash acquired

 

 

(13,324

)

 

 

 

Proceeds loaned under notes receivable

 

 

 

 

 

(10,000

)

Purchases of investments

 

 

 

 

 

(29,325

)

Sales of trading securities

 

 

17,198

 

 

 

 

Net cash used in investing activities

 

 

(15,935

)

 

 

(91,762

)

Financing Activities

 

 

 

 

Payment of debt commitment fees

 

 

(18,325

)

 

 

 

Repayment of debt

 

 

 

 

 

(185,000

)

Net proceeds from issuance of common stock

 

 

4,559

 

 

 

5,006

 

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

 

 

(12,590

)

 

 

(28,896

)

Repurchase of common stock

 

 

 

 

 

(31,511

)

Net cash used in financing activities

 

 

(26,356

)

 

 

(240,401

)

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

 

 

(1,082

)

 

 

56

 

Increase (decrease) in cash, cash equivalents and restricted cash

 

 

(1

)

 

 

56,619

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

188,357

 

 

 

131,738

 

Cash, cash equivalents and restricted cash at end of period

 

$

188,356

 

 

$

188,357

 

 

 

 

 

 

MAXLINEAR, INC.

UNAUDITED GAAP CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

187,288

 

$

187,028

 

$

187,353

Short-term restricted cash

 

1,051

 

 

1,105

 

 

982

Short-term investments

 

 

 

14,612

 

 

18,529

Accounts receivable, net

 

170,619

 

 

158,232

 

 

170,971

Inventory

 

99,908

 

 

114,942

 

 

160,544

Prepaid expenses and other current assets

 

29,159

 

 

32,688

 

 

24,745

Total current assets

 

488,025

 

 

508,607

 

 

563,124

Long-term restricted cash

 

17

 

 

19

 

 

22

Property and equipment, net

 

66,431

 

 

69,484

 

 

79,018

Leased right-of-use assets

 

31,264

 

 

32,647

 

 

28,515

Intangible assets, net

 

73,630

 

 

82,643

 

 

109,316

Goodwill

 

318,588

 

 

318,456

 

 

306,739

Deferred tax assets

 

69,493

 

 

59,121

 

 

66,491

Other long-term assets

 

32,809

 

 

32,810

 

 

26,800

Total assets

$

1,080,257

 

$

1,103,787

 

$

1,180,025

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities

$

222,129

 

$

232,910

 

$

341,086

Long-term lease liabilities

 

26,243

 

 

28,017

 

 

23,353

Long-term debt

 

122,375

 

 

122,219

 

 

121,757

Other long-term liabilities

 

23,245

 

 

17,964

 

 

17,444

Stockholders’ equity

 

686,265

 

 

702,677

 

 

676,385

Total liabilities and stockholders’ equity

$

1,080,257

 

$

1,103,787

 

$

1,180,025

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

 

Three Months Ended

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

GAAP gross profit

$

68,539

 

 

$

73,944

 

 

$

163,340

 

Stock-based compensation

 

137

 

 

 

170

 

 

 

222

 

Performance based equity

 

17

 

 

 

19

 

 

 

175

 

Amortization of purchased intangible assets

 

8,332

 

 

 

8,332

 

 

 

9,325

 

Non-GAAP gross profit

 

77,025

 

 

 

82,465

 

 

 

173,062

 

 

 

 

 

 

 

GAAP R&D expenses

 

65,250

 

 

 

66,306

 

 

 

73,724

 

Stock-based compensation

 

(11,061

)

 

 

(9,436

)

 

 

(10,341

)

Performance based equity

 

(1,918

)

 

 

(2,288

)

 

 

(8,205

)

Research and development funded by others

 

(2,000

)

 

 

(5,500

)

 

 

(2,000

)

Non-GAAP R&D expenses

 

50,271

 

 

 

49,082

 

 

 

53,178

 

 

 

 

 

 

 

GAAP SG&A expenses

 

34,384

 

 

 

25,402

 

 

 

44,472

 

Stock-based compensation

 

(5,215

)

 

 

4,488

 

 

 

(12,988

)

Performance based equity

 

(1,324

)

 

 

(999

)

 

 

(3,791

)

Amortization of purchased intangible assets

 

(591

)

 

 

(653

)

 

 

(1,312

)

Acquisition and integration costs

 

(1,799

)

 

 

(2,172

)

 

 

(1,069

)

Non-GAAP SG&A expenses

 

25,455

 

 

 

26,066

 

 

 

25,312

 

 

 

 

 

 

 

GAAP impairment losses

 

 

 

 

 

 

 

2,811

 

Impairment losses

 

 

 

 

 

 

 

(2,811

)

Non-GAAP impairment losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP restructuring expenses

 

10,648

 

 

 

54

 

 

 

1,172

 

Restructuring charges

 

(10,648

)

 

 

(54

)

 

 

(1,172

)

Non-GAAP restructuring expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income (loss) from operations

 

(41,743

)

 

 

(17,818

)

 

 

41,161

 

Total non-GAAP adjustments

 

43,042

 

 

 

25,135

 

 

 

53,411

 

Non-GAAP income from operations

 

1,299

 

 

 

7,317

 

 

 

94,572

 

 

 

 

 

 

 

GAAP interest and other income (expense), net

 

(888

)

 

 

(23,700

)

 

 

(448

)

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

 

54

 

 

 

18,395

 

 

 

59

 

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

 

(834

)

 

 

(5,305

)

 

 

(389

)

 

 

 

 

 

 

GAAP income (loss) before income taxes

 

(42,631

)

 

 

(41,518

)

 

 

40,713

 

Total non-GAAP adjustments

 

43,096

 

 

 

43,530

 

 

 

53,470

 

Non-GAAP income before income taxes

 

465

 

 

 

2,012

 

 

 

94,183

 

 

 

 

 

 

 

GAAP income tax provision (benefit)

 

(4,131

)

 

 

(1,689

)

 

 

9,633

 

Adjustment for non-cash tax benefits/expenses

 

4,177

 

 

 

1,891

 

 

 

(3,982

)

Non-GAAP income tax provision

 

46

 

 

 

202

 

 

 

5,651

 

 

 

 

 

 

 

GAAP net income (loss)

 

(38,500

)

 

 

(39,829

)

 

 

31,080

 

Total non-GAAP adjustments before income taxes

 

43,096

 

 

 

43,530

 

 

 

53,470

 

Less: total tax adjustments

 

4,177

 

 

 

1,891

 

 

 

(3,982

)

Non-GAAP net income

$

419

 

 

$

1,810

 

 

$

88,532

 

 

 

 

 

 

 

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

 

81,681

 

 

 

81,249

 

 

 

78,649

 

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

 

82,681

 

 

 

81,968

 

 

 

82,406

 

Non-GAAP basic net income per share

$

0.01

 

 

$

0.02

 

 

$

1.13

 

Non-GAAP diluted net income per share

$

0.01

 

 

$

0.02

 

 

$

1.07

 

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

 

 

 

 

 

 

Year Ended

 

 

December 31, 2023

 

December 31, 2022

GAAP gross profit

 

$

385,663

 

 

$

649,769

 

Stock-based compensation

 

 

763

 

 

 

735

 

Performance based equity

 

 

111

 

 

 

569

 

Amortization of purchased intangible assets

 

 

35,102

 

 

 

39,288

 

Non-GAAP gross profit

 

 

421,639

 

 

 

690,361

 

 

 

 

 

 

GAAP R&D expenses

 

 

269,504

 

 

 

296,442

 

Stock-based compensation

 

 

(44,189

)

 

 

(40,635

)

Performance based equity

 

 

(7,568

)

 

 

(28,463

)

Research and development funded by others

 

 

(9,500

)

 

 

(2,200

)

Non-GAAP R&D expenses

 

 

208,247

 

 

 

225,144

 

 

 

 

 

 

GAAP SG&A expenses

 

 

132,156

 

 

 

168,008

 

Stock-based compensation

 

 

(10,224

)

 

 

(40,335

)

Performance based equity

 

 

(3,874

)

 

 

(11,610

)

Amortization of purchased intangible assets

 

 

(2,881

)

 

 

(11,955

)

Acquisition and integration costs

 

 

(9,286

)

 

 

(8,711

)

Non-GAAP SG&A expenses

 

 

105,891

 

 

 

95,397

 

 

 

 

 

 

GAAP impairment losses

 

 

2,438

 

 

 

2,811

 

Impairment losses

 

 

(2,438

)

 

 

(2,811

)

Non-GAAP impairment losses

 

 

 

 

 

 

 

 

 

 

 

GAAP restructuring expenses

 

 

19,786

 

 

 

2,265

 

Restructuring charges

 

 

(19,786

)

 

 

(2,265

)

Non-GAAP restructuring expenses

 

 

 

 

 

 

 

 

 

 

 

GAAP income (loss) from operations

 

 

(38,221

)

 

 

180,243

 

Total non-GAAP adjustments

 

 

145,722

 

 

 

189,577

 

Non-GAAP income from operations

 

 

107,501

 

 

 

369,820

 

 

 

 

 

 

GAAP interest and other income (expense), net

 

 

(25,589

)

 

 

(6,045

)

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

 

 

18,628

 

 

 

241

 

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

 

 

(6,961

)

 

 

(5,804

)

 

 

 

 

 

GAAP income (loss) before income taxes

 

 

(63,810

)

 

 

174,198

 

Total non-GAAP adjustments

 

 

164,350

 

 

 

189,818

 

Non-GAAP income (loss) before income taxes

 

 

100,540

 

 

 

364,016

 

 

 

 

 

 

GAAP income tax provision

 

 

9,337

 

 

 

49,158

 

Adjustment for non-cash tax benefits/expenses

 

 

717

 

 

 

(27,317

)

Non-GAAP income tax provision

 

 

10,054

 

 

 

21,841

 

 

 

 

 

 

GAAP net income (loss)

 

 

(73,147

)

 

 

125,040

 

Total non-GAAP adjustments before income taxes

 

 

164,350

 

 

 

189,818

 

Less: total tax adjustments

 

 

717

 

 

 

(27,317

)

Non-GAAP net income

 

$

90,486

 

 

$

342,175

 

 

 

 

 

 

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

 

 

80,719

 

 

 

78,039

 

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

 

 

81,929

 

 

 

80,852

 

Non-GAAP basic net income per share

 

$

1.12

 

 

$

4.38

 

Non-GAAP diluted net income per share

 

$

1.10

 

 

$

4.23

 

 

 

 

 

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

AS A PERCENTAGE OF NET REVENUE

 

 

Three Months Ended

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

GAAP gross margin

54.7

%

 

54.6

%

 

56.2

%

Stock-based compensation

0.1

%

 

0.1

%

 

0.1

%

Performance based equity

%

 

%

 

0.1

%

Amortization of purchased intangible assets

6.7

%

 

6.2

%

 

3.2

%

Non-GAAP gross margin

61.4

%

 

60.8

%

 

59.6

%

 

 

 

 

 

 

GAAP R&D expenses

52.1

%

 

48.9

%

 

25.4

%

Stock-based compensation

(8.8

)%

 

(7.0

)%

 

(3.6

)%

Performance based equity

(1.5

)%

 

(1.7

)%

 

(2.8

)%

Research and development funded by others

(1.6

)%

 

(4.1

)%

 

(0.7

)%

Non-GAAP R&D expenses

40.1

%

 

36.2

%

 

18.3

%

 

 

 

 

 

 

GAAP SG&A expenses

27.4

%

 

18.7

%

 

15.3

%

Stock-based compensation

(4.2

)%

 

3.3

%

 

(4.5

)%

Performance based equity

(1.1

)%

 

(0.7

)%

 

(1.3

)%

Amortization of purchased intangible assets

(0.5

)%

 

(0.5

)%

 

(0.5

)%

Acquisition and integration costs

(1.4

)%

 

(1.6

)%

 

(0.4

)%

Non-GAAP SG&A expenses

20.3

%

 

19.2

%

 

8.7

%

 

 

 

 

 

 

GAAP impairment losses

%

 

%

 

1.0

%

Impairment losses

%

 

%

 

(1.0

)%

Non-GAAP impairment losses

%

 

%

 

%

 

 

 

 

 

 

GAAP restructuring expenses

8.5

%

 

%

 

0.4

%

Restructuring charges

(8.5

)%

 

%

 

(0.4

)%

Non-GAAP restructuring expenses

%

 

%

 

%

 

 

 

 

 

 

GAAP income (loss) from operations

(33.3

)%

 

(13.2

)%

 

14.2

%

Total non-GAAP adjustments

34.3

%

 

18.6

%

 

18.4

%

Non-GAAP income from operations

1.0

%

 

5.4

%

 

32.5

%

 

 

 

 

 

 

GAAP interest and other income (expense), net

(0.7

)%

 

(17.5

)%

 

(0.2

)%

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

%

 

13.6

%

 

%

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

(0.7

)%

 

(3.9

)%

 

(0.1

)%

 

 

 

 

 

 

GAAP income (loss) before income taxes

(34.0

)%

 

(30.6

)%

 

14.0

%

Total non-GAAP adjustments before income taxes

34.4

%

 

32.1

%

 

18.4

%

Non-GAAP income before income taxes

0.4

%

 

1.5

%

 

32.4

%

 

 

 

 

 

 

GAAP income tax provision (benefit)

(3.3

)%

 

(1.3

)%

 

3.3

%

Adjustment for non-cash tax benefits/expenses

3.3

%

 

1.4

%

 

(1.4

)%

Non-GAAP income tax provision

%

 

0.2

%

 

1.9

%

 

 

 

 

 

 

GAAP net income (loss)

(30.7

)%

 

(29.4

)%

 

10.7

%

Total non-GAAP adjustments before income taxes

34.4

%

 

32.1

%

 

18.4

%

Less: total tax adjustments

3.3

%

 

1.4

%

 

(1.4

)%

Non-GAAP net income

0.3

%

 

1.3

%

 

30.5

%

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

AS A PERCENTAGE OF NET REVENUE

 

 

 

 

 

 

 

Year Ended

 

 

December 31, 2023

 

December 31, 2022

GAAP gross margin

 

55.6

%

 

58.0

%

Stock-based compensation

 

0.1

%

 

0.1

%

Performance based equity

 

%

 

0.1

%

Amortization of purchased intangible assets

 

5.1

%

 

3.5

%

Non-GAAP gross margin

 

60.8

%

 

61.6

%

 

 

 

 

 

GAAP R&D expenses

 

38.9

%

 

26.5

%

Stock-based compensation

 

(6.4

)%

 

(3.6

)%

Performance based equity

 

(1.1

)%

 

(2.5

)%

Research and development funded by others

 

(1.4

)%

 

(0.2

)%

Non-GAAP R&D expenses

 

30.0

%

 

20.1

%

 

 

 

 

 

GAAP SG&A expenses

 

19.1

%

 

15.0

%

Stock-based compensation

 

(1.5

)%

 

(3.6

)%

Performance based equity

 

(0.6

)%

 

(1.0

)%

Amortization of purchased intangible assets

 

(0.4

)%

 

(1.1

)%

Acquisition and integration costs

 

(1.3

)%

 

(0.8

)%

Non-GAAP SG&A expenses

 

15.3

%

 

8.5

%

 

 

 

 

 

GAAP impairment losses

 

0.4

%

 

0.3

%

Impairment losses

 

(0.4

)%

 

(0.3

)%

Non-GAAP impairment losses

 

%

 

%

 

 

 

 

 

GAAP restructuring expenses

 

2.9

%

 

0.2

%

Restructuring charges

 

(2.9

)%

 

(0.2

)%

Non-GAAP restructuring expenses

 

%

 

%

 

 

 

 

 

GAAP income (loss) from operations

 

(5.5

)%

 

16.1

%

Total non-GAAP adjustments

 

21.0

%

 

16.9

%

Non-GAAP income from operations

 

15.5

%

 

33.0

%

 

 

 

 

 

GAAP interest and other income (expense), net

 

(3.7

)%

 

(0.5

)%

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

 

2.7

%

 

%

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

 

(1.0

)%

 

(0.5

)%

 

 

 

 

 

GAAP income (loss) before income taxes

 

(9.2

)%

 

15.6

%

Total non-GAAP adjustments

 

23.7

%

 

16.9

%

Non-GAAP income (loss) before income taxes

 

14.5

%

 

32.5

%

 

 

 

 

 

GAAP income tax provision

 

1.4

%

 

4.4

%

Adjustment for non-cash tax benefits/expenses

 

0.1

%

 

(2.4

)%

Non-GAAP income tax provision

 

1.5

%

 

2.0

%

 

 

 

 

 

GAAP net income (loss)

 

(10.6

)%

 

11.2

%

Total non-GAAP adjustments before income taxes

 

23.7

%

 

16.9

%

Less: total tax adjustments

 

0.1

%

 

(2.4

)%

Non-GAAP net income

 

13.1

%

 

30.5

%

 

Contacts

MaxLinear, Inc. Investor Relations Contact:

Leslie Green

Tel: +1 650-312-9060

lgreen@maxlinear.com

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