- Net revenue of $135.5 million in Q3, GAAP gross margin
of 54.6% and non-GAAP gross margin of 60.8%
- Infrastructure revenue was $50.0 million in Q3, up 1%
sequentially and up 40% 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 third quarter
ended September 30, 2023.
Third Quarter Financial Highlights
GAAP basis:
- Net revenue was $135.5 million, down 26% sequentially and down
53% year-over-year.
- GAAP gross margin was 54.6%, compared to 55.9% in the prior
quarter, and 58.6% in the year-ago quarter.
- GAAP operating expenses were $91.8 million in the third quarter
2023, or 68% of net revenue, compared to $108.8 million in the
prior quarter, or 59% of net revenue, and $115.5 million in the
year-ago quarter, or 40% of net revenue.
- GAAP loss from operations was 13% of net revenue, compared to
loss from operations of 3% of net revenue in the prior quarter, and
income from operations of 18% of net revenue in the year-ago
quarter.
- Net cash flow used in operating activities was $12.8 million,
compared to net cash flow provided by operating activities of $30.6
million in the prior quarter, and net cash flow provided by
operating activities of $61.8 million in the year-ago quarter.
- GAAP diluted loss per share was $0.49, compared to diluted loss
per share of $0.05 in the prior quarter, and diluted earnings per
share of $0.35 in the year-ago quarter.
Non-GAAP basis:
- Non-GAAP gross margin was 60.8%. This compares to 61.0% in the
prior quarter, and 62.0% in the year-ago quarter.
- Non-GAAP operating expenses were $75.1 million, or 55% of net
revenue, compared to $82.5 million or 45% of net revenue in the
prior quarter, and $80.4 million or 28% of net revenue in the
year-ago quarter.
- Non-GAAP income from operations was 5% of net revenue, compared
to 16% in the prior quarter, and 34% in the year-ago quarter.
- Non-GAAP diluted earnings per share was $0.02, compared to
$0.34 in the prior quarter, and $1.05 in the year-ago quarter.
Management Commentary
“In the third quarter, we delivered $135.5 million in revenues.
Our infrastructure category was up 1% sequentially and 40% 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, ethernet,
fiber broadband access gateways, and wireless and optical
datacenter network infrastructure, which will be the foundation for
potential future growth,” commented Kishore Seendripu, Ph.D.,
Chairman and CEO.
Fourth Quarter 2023 Business Outlook
The company expects net revenue in the fourth quarter of 2023 to
be approximately $115 million to $135 million. The Company also
estimates the following:
- GAAP gross margin of approximately 52.5% to 55.5%;
- Non-GAAP gross margin of approximately 59.5% to 62.5%;
- GAAP operating expenses of approximately $125 million to $135
million;
- Non-GAAP operating expenses of approximately $72 million to $78
million;
- GAAP and non-GAAP interest and other expenses are expected to
be negligible; and
- GAAP and non-GAAP diluted share count of 82.5 million to 83.5
million each.
Webcast and Conference Call
MaxLinear will host its third quarter financial results
conference call today, October 25, 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 November 8,
2023. A replay of the conference call will also be available until
November 8, 2023 by dialing US toll free: 1-877-660-6853 /
International: 1-201-612-7415 and Conference ID#: 13741910.
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 fourth quarter 2023 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; statements regarding our potential growth,
including potential growth and demand environment, including
potential growth opportunities of our product portfolio and target
markets including Wi-Fi, ethernet, fiber access, wireless and
optical infrastructure; statements regarding our ability to
maximize strategic business opportunities, 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; 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; any delays or expenses caused by
undetected defects or bugs in our products; failure to attract and
retain qualified personnel; 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; information technology failures; any
adverse impact of rising interest rates on us, our customers, and
our distributors and related demand; 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 September 30, 2023. All forward-looking statements
are based on the estimates, projections and assumptions of
management as of October 25, 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,
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 fourth
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
September 30, 2023
June 30, 2023
September 30, 2022
Net revenue
$
135,530
$
183,938
$
285,730
Cost of net revenue
61,586
81,065
118,242
Gross profit
73,944
102,873
167,488
Operating expenses:
Research and development
66,306
70,657
76,437
Selling, general and administrative
25,402
33,717
38,472
Restructuring charges
54
4,436
631
Total operating expenses
91,762
108,810
115,540
Income (loss) from operations
(17,818
)
(5,937
)
51,948
Interest income
1,736
1,903
62
Interest expense
(2,715
)
(2,591
)
(2,711
)
Other income (expense), net
(22,721
)
1,865
(4,705
)
Total other income (expense), net
(23,700
)
1,177
(7,354
)
Income (loss) before income taxes
(41,518
)
(4,760
)
44,594
Income tax provision (benefit)
(1,689
)
(409
)
16,186
Net income (loss)
$
(39,829
)
$
(4,351
)
$
28,408
Net income (loss) per share:
Basic
$
(0.49
)
$
(0.05
)
$
0.36
Diluted
$
(0.49
)
$
(0.05
)
$
0.35
Shares used to compute net income (loss)
per share:
Basic
81,249
80,446
78,436
Diluted
81,249
80,446
80,060
MAXLINEAR, INC.
UNAUDITED GAAP CONSOLIDATED
STATEMENTS OF INCOME
(in thousands, except per
share data)
Nine Months Ended
September 30, 2023
September 30, 2022
Net revenue
$
567,910
$
829,666
Cost of net revenue
250,786
343,237
Gross profit
317,124
486,429
Operating expenses:
Research and development
204,254
222,718
Selling, general and administrative
97,772
123,536
Impairment losses
2,438
—
Restructuring charges
9,138
1,093
Total operating expenses
313,602
347,347
Income from operations
3,522
139,082
Interest income
4,272
175
Interest expense
(7,793
)
(7,476
)
Other income (expense), net
(21,180
)
1,704
Total other income (expense), net
(24,701
)
(5,597
)
Income (loss) before income taxes
(21,179
)
133,485
Income tax provision
13,468
39,525
Net income (loss)
$
(34,647
)
$
93,960
Net income (loss) per share:
Basic
$
(0.43
)
$
1.21
Diluted
$
(0.43
)
$
1.17
Shares used to compute net income (loss)
per share:
Basic
80,395
77,833
Diluted
80,395
80,331
MAXLINEAR, INC.
UNAUDITED GAAP CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended
September 30, 2023
June 30, 2023
September 30, 2022
Operating Activities
Net income (loss)
$
(39,829
)
$
(4,351
)
$
28,408
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Amortization and depreciation
17,014
18,707
18,457
Amortization of debt issuance costs and
accretion of discount on debt and leases
685
625
505
Stock-based compensation
5,118
17,197
20,131
Deferred income taxes
(2,384
)
758
15,962
Loss on disposal of property and
equipment
16
2,001
3
Unrealized holding (gain) loss on
investments
5,876
(1,807
)
5,277
(Gain) loss on settlement of pension
(1,008
)
—
—
Gain on foreign currency and other
(13
)
(209
)
(570
)
Excess tax (benefits) deficiencies on
stock based awards
769
(791
)
(273
)
Changes in operating assets and
liabilities:
Accounts receivable
(2,398
)
33,098
(41,007
)
Inventory
11,210
23,433
(19,539
)
Prepaid expenses and other assets
(4,563
)
(1,314
)
2,129
Accounts payable, accrued expenses and
other current liabilities
9,347
(26,378
)
19,768
Accrued compensation
4,914
(3,348
)
10,832
Accrued price protection liability
(11,995
)
(23,164
)
6,171
Lease liabilities
(2,882
)
(2,914
)
(2,974
)
Other long-term liabilities
(2,669
)
(965
)
(1,514
)
Net cash provided by (used in) operating
activities
(12,792
)
30,578
61,766
Investing Activities
Purchases of property and equipment
(1,927
)
(5,037
)
(9,119
)
Purchases of intangible assets
(674
)
(4,894
)
(5,236
)
Cash used in acquisitions, net of cash
acquired
—
(2,719
)
—
Purchases of investments
—
—
(1,000
)
Net cash used in investing activities
(2,601
)
(12,650
)
(15,355
)
Financing Activities
Payment of debt commitment fees
(18,325
)
—
—
Repayment of debt
—
—
(75,000
)
Net proceeds from issuance of common
stock
92
3,073
81
Minimum tax withholding paid on behalf of
employees for restricted stock units
(3,232
)
(2,965
)
(380
)
Net cash provided by (used in) financing
activities
(21,465
)
108
(75,299
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(633
)
(1,229
)
(1,038
)
Increase (decrease) in cash, cash
equivalents and restricted cash
(37,491
)
16,807
(29,926
)
Cash, cash equivalents and restricted cash
at beginning of period
225,643
208,836
212,419
Cash, cash equivalents and restricted cash
at end of period
$
188,152
$
225,643
$
182,493
MAXLINEAR, INC.
UNAUDITED GAAP CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
Nine Months Ended
September 30, 2023
September 30, 2022
Operating Activities
Net income (loss)
$
(34,647
)
$
93,960
Adjustments to reconcile net income (loss)
to cash provided by operating activities:
Amortization and depreciation
54,923
61,906
Impairment losses
2,438
—
Amortization of debt issuance costs and
accretion of discount on debt and leases
1,858
1,462
Stock-based compensation
38,763
58,154
Deferred income taxes
6,502
23,321
Loss on disposal of property and
equipment
2,057
167
Unrealized holding loss on investments
3,917
1,418
Impairment of leased right-of-use
assets
—
462
(Gain) loss on settlement of pension
(1,008
)
—
(Gain) loss on foreign currency
140
(3,245
)
Excess tax benefits on stock-based
awards
(529
)
(9,702
)
Changes in operating assets and
liabilities:
Accounts receivable
13,769
(57,976
)
Inventory
45,602
(34,267
)
Prepaid expenses and other assets
(10,215
)
3,957
Accounts payable, accrued expenses and
other current liabilities
(17,917
)
82,389
Accrued compensation
8,776
32,187
Accrued price protection liability
(45,036
)
76,968
Lease liabilities
(8,891
)
(8,485
)
Other long-term liabilities
(557
)
(3,307
)
Net cash provided by operating
activities
59,945
319,369
Investing Activities
Purchases of property and equipment
(12,180
)
(24,625
)
Purchases of intangible assets
(6,198
)
(10,440
)
Cash used in acquisitions, net of cash
acquired
(12,384
)
—
Proceeds loaned under notes receivable
—
(10,000
)
Purchases of investments
—
(29,325
)
Net cash used in investing activities
(30,762
)
(74,390
)
Financing Activities
Payment of debt commitment fees
(18,325
)
—
Repayment of debt
—
(135,000
)
Net proceeds from issuance of common
stock
3,168
3,214
Minimum tax withholding paid on behalf of
employees for restricted stock units
(12,370
)
(28,527
)
Repurchase of common stock
—
(31,511
)
Net cash used in financing activities
(27,527
)
(191,824
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(1,861
)
(2,400
)
Increase (decrease) in cash, cash
equivalents and restricted cash
(205
)
50,755
Cash, cash equivalents and restricted cash
at beginning of period
188,357
131,738
Cash, cash equivalents and restricted cash
at end of period
$
188,152
$
182,493
MAXLINEAR, INC.
UNAUDITED GAAP CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, 2023
June 30, 2023
September 30, 2022
Assets
Current assets:
Cash and cash equivalents
$
187,028
$
224,579
$
181,496
Short-term restricted cash
1,105
1,042
971
Short-term investments
14,612
20,488
18,587
Accounts receivable, net
158,232
155,834
178,072
Inventory
114,942
126,152
165,970
Prepaid expenses and other current
assets
32,688
26,396
17,879
Total current assets
508,607
554,491
562,975
Long-term restricted cash
19
22
26
Property and equipment, net
69,484
73,845
67,081
Leased right-of-use assets
32,647
35,112
30,041
Intangible assets, net
82,643
91,203
122,142
Goodwill
318,456
318,456
306,739
Deferred tax assets
59,121
56,757
65,767
Other long-term assets
32,810
31,594
27,927
Total assets
$
1,103,787
$
1,161,480
$
1,182,698
Liabilities and stockholders’
equity
Current liabilities
$
232,910
$
241,729
$
351,318
Long-term lease liabilities
28,017
30,712
25,040
Long-term debt
122,219
122,064
171,607
Other long-term liabilities
17,964
20,928
18,852
Stockholders’ equity
702,677
746,047
615,881
Total liabilities and stockholders’
equity
$
1,103,787
$
1,161,480
$
1,182,698
MAXLINEAR, INC.
UNAUDITED RECONCILIATION OF
NON-GAAP ADJUSTMENTS
(in thousands, except per
share data)
Three Months Ended
September 30, 2023
June 30, 2023
September 30, 2022
GAAP gross profit
$
73,944
$
102,873
$
167,488
Stock-based compensation
170
246
188
Performance based equity
19
(16
)
136
Amortization of purchased intangible
assets
8,332
9,117
9,332
Non-GAAP gross profit
82,465
112,220
177,144
GAAP R&D expenses
66,306
70,657
76,437
Stock-based compensation
(9,436
)
(12,237
)
(10,635
)
Performance based equity
(2,288
)
273
(7,690
)
Research and development funded by
others
(5,500
)
(1,000
)
(1,000
)
Non-GAAP R&D expenses
49,082
57,693
57,112
GAAP SG&A expenses
25,402
33,717
38,472
Stock-based compensation
4,488
(4,713
)
(9,308
)
Performance based equity
(999
)
193
(3,043
)
Amortization of purchased intangible
assets
(653
)
(709
)
(1,541
)
Acquisition and integration costs
(2,172
)
(3,714
)
(1,278
)
Non-GAAP SG&A expenses
26,066
24,774
23,302
GAAP restructuring expenses
54
4,436
631
Restructuring charges
(54
)
(4,436
)
(631
)
Non-GAAP restructuring expenses
—
—
—
GAAP income (loss) from operations
(17,818
)
(5,937
)
51,948
Total non-GAAP adjustments
25,135
35,690
44,782
Non-GAAP income from operations
7,317
29,753
96,730
GAAP interest and other income (expense),
net
(23,700
)
1,177
(7,354
)
Non-recurring interest and other income
(expense), net
18,395
68
58
Non-GAAP interest and other income
(expense), net
(5,305
)
1,245
(7,296
)
GAAP income (loss) before income taxes
(41,518
)
(4,760
)
44,594
Total non-GAAP adjustments
43,530
35,758
44,840
Non-GAAP income before income taxes
2,012
30,998
89,434
GAAP income tax provision (benefit)
(1,689
)
(409
)
16,186
Adjustment for non-cash tax
benefits/expenses
1,891
3,508
(10,820
)
Non-GAAP income tax provision
202
3,099
5,366
GAAP net income (loss)
(39,829
)
(4,351
)
28,408
Total non-GAAP adjustments before income
taxes
43,530
35,758
44,840
Less: total tax adjustments
1,891
3,508
(10,820
)
Non-GAAP net income
$
1,810
$
27,899
$
84,068
Shares used in computing non-GAAP basic
net income per share
81,249
80,446
78,436
Shares used in computing non-GAAP diluted
net income per share
81,968
81,698
80,060
Non-GAAP basic net income per share
$
0.02
$
0.35
$
1.07
Non-GAAP diluted net income per share
$
0.02
$
0.34
$
1.05
MAXLINEAR, INC.
UNAUDITED RECONCILIATION OF
NON-GAAP ADJUSTMENTS
(as a percentage of net
revenue for the corresponding period)
Nine Months Ended
September 30, 2023
September 30, 2022
GAAP gross profit
$
317,124
$
486,429
Stock-based compensation
626
513
Performance based equity
94
394
Amortization of purchased intangible
assets
26,770
29,963
Non-GAAP gross profit
344,614
517,299
GAAP R&D expenses
204,254
222,718
Stock-based compensation
(33,128
)
(30,294
)
Performance based equity
(5,650
)
(20,258
)
Research and development funded by
others
(7,500
)
(200
)
Non-GAAP R&D expenses
157,976
171,966
GAAP SG&A expenses
97,772
123,536
Stock-based compensation
(5,009
)
(27,347
)
Performance based equity
(2,550
)
(7,819
)
Amortization of purchased intangible
assets
(2,290
)
(10,643
)
Acquisition and integration costs
(7,487
)
(7,642
)
Non-GAAP SG&A expenses
80,436
70,085
GAAP impairment losses
2,438
—
Impairment losses
(2,438
)
—
Non-GAAP impairment losses
—
—
GAAP restructuring expenses
9,138
1,093
Restructuring charges
(9,138
)
(1,093
)
Non-GAAP restructuring expenses
—
—
GAAP income from operations
3,522
139,082
Total non-GAAP adjustments
102,680
136,166
Non-GAAP income from operations
106,202
275,248
GAAP interest and other income (expense),
net
(24,701
)
(5,597
)
Non-recurring interest and other income
(expense), net
18,574
182
Non-GAAP interest and other income
(expense), net
(6,127
)
(5,415
)
GAAP income (loss) before income taxes
(21,179
)
133,485
Total non-GAAP adjustments
121,254
136,348
Non-GAAP income (loss) before income
taxes
100,075
269,833
GAAP income tax provision
13,468
39,525
Adjustment for non-cash tax
benefits/expenses
(3,460
)
(23,335
)
Non-GAAP income tax provision
10,008
16,190
GAAP net income (loss)
(34,647
)
93,960
Total non-GAAP adjustments before income
taxes
121,254
136,348
Less: total tax adjustments
(3,460
)
(23,335
)
Non-GAAP net income
$
90,067
$
253,643
Shares used in computing non-GAAP basic
net income per share
80,395
77,833
Shares used in computing non-GAAP diluted
net income per share
81,674
80,331
Non-GAAP basic net income per share
$
1.12
$
3.26
Non-GAAP diluted net income per share
$
1.10
$
3.16
MAXLINEAR, INC.
UNAUDITED RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
AS A PERCENTAGE OF NET
REVENUE
Three Months Ended
September 30, 2023
June 30, 2023
September 30, 2022
GAAP gross margin
54.6
%
55.9
%
58.6
%
Stock-based compensation
0.1
%
0.1
%
0.1
%
Performance based equity
—
%
—
%
0.1
%
Amortization of purchased intangible
assets
6.2
%
5.0
%
3.3
%
Non-GAAP gross margin
60.8
%
61.0
%
62.0
%
GAAP R&D expenses
48.9
%
38.4
%
26.8
%
Stock-based compensation
(7.0
)%
(6.7
)%
(3.7
)%
Performance based equity
(1.7
)%
0.2
%
(2.7
)%
Research and development funded by
others
(4.1
)%
(0.5
)%
(0.4
)%
Non-GAAP R&D expenses
36.2
%
31.4
%
20.0
%
GAAP SG&A expenses
18.7
%
18.3
%
13.5
%
Stock-based compensation
3.3
%
(2.6
)%
(3.3
)%
Performance based equity
(0.7
)%
0.1
%
(1.1
)%
Amortization of purchased intangible
assets
(0.5
)%
(0.4
)%
(0.5
)%
Acquisition and integration costs
(1.6
)%
(2.0
)%
(0.5
)%
Non-GAAP SG&A expenses
19.2
%
13.5
%
8.2
%
GAAP restructuring expenses
—
%
2.4
%
0.2
%
Restructuring charges
—
%
(2.4
)%
(0.2
)%
Non-GAAP restructuring expenses
—
%
—
%
—
%
GAAP income (loss) from operations
(13.2
)%
(3.2
)%
18.2
%
Total non-GAAP adjustments
18.6
%
19.4
%
15.7
%
Non-GAAP income from operations
5.4
%
16.2
%
33.9
%
GAAP interest and other income (expense),
net
(17.5
)%
0.6
%
(2.6
)%
Non-recurring interest and other income
(expense), net
13.6
%
—
%
—
%
Non-GAAP interest and other income
(expense), net
(3.9
)%
0.7
%
(2.6
)%
GAAP income (loss) before income taxes
(30.6
)%
(2.6
)%
15.6
%
Total non-GAAP adjustments before income
taxes
32.1
%
19.4
%
15.7
%
Non-GAAP income before income taxes
1.5
%
16.9
%
31.3
%
GAAP income tax provision (benefit)
(1.3
)%
(0.2
)%
5.7
%
Adjustment for non-cash tax
benefits/expenses
1.4
%
1.9
%
(3.8
)%
Non-GAAP income tax provision
0.2
%
1.7
%
1.9
%
GAAP net income (loss)
(29.4
)%
(2.4
)%
9.9
%
Total non-GAAP adjustments before income
taxes
32.1
%
19.4
%
15.7
%
Less: total tax adjustments
1.4
%
1.9
%
(3.8
)%
Non-GAAP net income
1.3
%
15.2
%
29.4
%
MAXLINEAR, INC.
UNAUDITED RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
AS A PERCENTAGE OF NET
REVENUE
Nine Months Ended
September 30, 2023
September 30, 2022
GAAP gross margin
55.8
%
58.6
%
Stock-based compensation
0.1
%
0.1
%
Performance based equity
—
%
0.1
%
Amortization of purchased intangible
assets
4.7
%
3.6
%
Non-GAAP gross margin
60.7
%
62.4
%
GAAP R&D expenses
36.0
%
26.8
%
Stock-based compensation
(5.8
)%
(3.7
)%
Performance based equity
(1.0
)%
(2.4
)%
Research and development funded by
others
(1.3
)%
—
%
Non-GAAP R&D expenses
27.8
%
20.7
%
GAAP SG&A expenses
17.2
%
14.9
%
Stock-based compensation
(0.9
)%
(3.3
)%
Performance based equity
(0.5
)%
(0.9
)%
Amortization of purchased intangible
assets
(0.4
)%
(1.3
)%
Acquisition and integration costs
(1.3
)%
(0.9
)%
Non-GAAP SG&A expenses
14.2
%
8.5
%
GAAP impairment losses
0.3
%
—
%
Impairment losses
(0.3
)%
—
%
Non-GAAP impairment losses
—
%
—
%
GAAP restructuring expenses
1.6
%
0.1
%
Restructuring charges
(1.6
)%
(0.1
)%
Non-GAAP restructuring expenses
—
%
—
%
GAAP income from operations
0.6
%
16.8
%
Total non-GAAP adjustments
18.1
%
16.4
%
Non-GAAP income from operations
18.7
%
33.2
%
GAAP interest and other income (expense),
net
(4.4
)%
(0.7
)%
Non-recurring interest and other income
(expense), net
3.3
%
—
%
Non-GAAP interest and other income
(expense), net
(1.1
)%
(0.7
)%
GAAP income (loss) before income taxes
(3.7
)%
16.1
%
Total non-GAAP adjustments
21.4
%
16.4
%
Non-GAAP income (loss) before income
taxes
17.6
%
32.5
%
GAAP income tax provision
2.4
%
4.8
%
Adjustment for non-cash tax
benefits/expenses
(0.6
)%
(2.8
)%
Non-GAAP income tax provision
1.8
%
2.0
%
GAAP net income (loss)
(6.1
)%
11.3
%
Total non-GAAP adjustments before income
taxes
21.4
%
16.4
%
Less: total tax adjustments
(0.6
)%
(2.8
)%
Non-GAAP net income
15.9
%
30.6
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231025825537/en/
MaxLinear, Inc. Investor Relations Contact: Leslie Green
Tel: +1 650-312-9060 lgreen@maxlinear.com
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