- 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
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240131692708/en/
MaxLinear, Inc. Investor Relations Contact: Leslie Green
Tel: +1 650-312-9060 lgreen@maxlinear.com
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