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Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

MaxLinear, Inc. Announces Third Quarter 2021 Financial Results

October 27, 2021 GMT

CARLSBAD, Calif.--(BUSINESS WIRE)--Oct 27, 2021--

MaxLinear, Inc. (NYSE: MXL), a leading provider of RF, analog, digital and mixed-signal integrated circuits, today announced financial results for the third quarter ended September 30, 2021.

Third Quarter Financial Highlights

GAAP basis:

  • Net revenue was $229.8 million, up 12% sequentially and up 47% year-over-year.
  • GAAP gross margin was 56.5%, compared to 54.8% in the prior quarter, and 42.3% in the year-ago quarter.
  • GAAP operating expenses were $106.0 million in the third quarter 2021, or 46% of net revenue, compared to $110.3 million in the prior quarter, or 54% of net revenue, and $100.8 million in the year-ago quarter, or 64% of net revenue.
  • GAAP income from operations was 10% of revenue, compared to income from operations of 1% in the prior quarter, and loss from operations of 22% in the year-ago quarter.
  • Net cash flow provided by operating activities was $84.1 million, compared to net cash flow provided by operating activities of $7.9 million in the prior quarter, and net cash flow used in operating activities of $16.6 million in the year-ago quarter.
  • GAAP diluted earnings per share was $0.12, compared to diluted earnings per share of $0.01 in the prior quarter, and diluted loss per share of $0.50 in the year-ago quarter.

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Non-GAAP basis:

  • Non-GAAP gross margin was 61.3%. This compares to 60.2% in the prior quarter, and 58.0% in the year-ago quarter.
  • Non-GAAP operating expenses were $74.4 million, or 32% of revenue, compared to $75.2 million or 37% of revenue in the prior quarter, and $61.1 million or 39% of revenue in the year-ago quarter.
  • Non-GAAP income from operations was 29% of revenue, compared to 24% in the prior quarter, and 19% in the year-ago quarter.
  • Non-GAAP diluted earnings per share was $0.75, compared to diluted earnings per share of $0.53 in the prior quarter, and diluted earnings per share of $0.32 in the year-ago quarter.

Management Commentary

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“In the third quarter, revenue was up 12% sequentially and up 47% year-over-year, driven by growth across our broadband, connectivity and industrial and multi-market markets. Solid demand for our broadband access and connectivity and high-performance analog products was due to a combination of end-market strength and company-specific drivers, including platform-level silicon content increases and market share gains. Non-GAAP gross margin for Q3 of 61.3% is ahead of our original plan, as product mix shift towards higher value products continues to accelerate across broadband, connectivity, infrastructure, and high-performance analog end markets. We remain focused on improving the supply chain constraints to meet the strong and growing market demand for our connectivity, broadband, and infrastructure products in the short and long term,” commented Kishore Seendripu, Ph.D., Chairman and CEO.

Fourth Quarter 2021 Business Outlook

The company expects revenue in the fourth quarter 2021 to be approximately $240 million to $250 million. The Company also estimates the following:

  • GAAP gross margin of approximately 55.5% to 57.5%;
  • Non-GAAP gross margin of approximately 60.0% to 62.0%;
  • GAAP operating expenses of approximately $105.0 million to $109.0 million;
  • Non-GAAP operating expenses of approximately $73.0 million to $77.0 million;
  • GAAP interest and other expense of approximately $2.7 million to $2.8 million; and
  • Non-GAAP interest and other expense of approximately $2.6 million to $2.7 million.

Webcast and Conference Call

MaxLinear will host its third quarter financial results conference call today, October 27, 2021 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 10, 2021. A replay of the conference call will also be available until November 10, 2021 by dialing US toll free: 1-877-660-6853 / International: 1-201-612-7415 and Conference ID#: 13724150.

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 2021 revenue, gross margins, and operating expenses as well as statements with respect to confidence in the Company’s outlook for the balance of 2021 and into 2022) and statements concerning expectations of potential developments in our target markets, including (without limitation) management’s views with respect to the prospects for and trends in our broadband, connectivity and 5G wireless and fiber-optic high-speed interconnect infrastructure markets. 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. 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 and future operating results include, without limitation, increasing supply chain risks within our industry, including increases in shipping and material costs and substantial shipping delays resulting in extended lead-times; inflation trends in our supply chain and in the global economy generally; the on-going impact of the COVID-19 pandemic on our business, including the extent to which our broadband businesses will continue to benefit from work-from-home and similar initiatives as the pandemic abates; the impact of our indebtedness and limitations on our operating flexibility based on financial and operating covenants in the applicable term loan agreements, including (without limitation) debt covenant restrictions that may limit our ability to obtain additional financing, granting liens, undergoing certain fundamental changes, or making investments or certain restricted payments, and selling assets; risks associated with our ability to realize improved profitability from our Wi-Fi and Broadband assets business; intense competition in our industry; our dependence on a limited number of customers for a substantial portion of our revenues; potential uncertainties arising from continued consolidation among cable television and satellite operators in our target markets and continued consolidation among competitors within the semiconductor industry generally; our ability to develop and introduce new and enhanced products on a timely basis and achieve market acceptance of those products, particularly as we seek to expand outside of our historic markets; potential decreases in average selling prices for our products; risks relating to intellectual property protection and the prevalence of intellectual property litigation in our industry; our reliance on a limited number of third party manufacturers; our lack of long-term supply contracts and dependence on limited sources of supply, which may be adversely affected by the pandemic; uncertainties concerning how end user markets for our products will develop, including in particular markets we have entered more recently such as broadband and Wi-Fi and 5G wireless and fiber-optic data center high-speed interconnect infrastructure markets but also existing markets which we previously referred to as connected home; and uncertainties concerning the outcome of global trade negotiations, export control limitations, and heightened geopolitical risks generally.

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, 2020 filed with the SEC on February 11, 2021, 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, 2021, which we expect to file soon. All forward-looking statements are based on the estimates, projections and assumptions of management as of October 27, 2021, 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, operating expenses, operating expenses as a percentage of revenue, income from operations as percentage of revenue, and diluted earnings per share. These supplemental measures exclude the effects of (i) stock-based compensation expense; (ii) accruals related to our performance based bonus plan for 2021, which we currently intend to settle in shares of our common stock; (iii) accruals related to our performance based bonus plan for 2020, which we settled in shares of common stock in 2021; (iv) amortization of inventory fair value adjustments; (v) amortization of purchased intangible assets; (vi) research and development funded by others; (vii) acquisition and integration costs related to our acquisitions; (viii) professional fees and settlement costs related to IP and commercial litigation matters; (ix) severance and other restructuring charges; (x) impairment losses on intangible assets; (xi) loss from extinguishment of debt; (xii) other non-recurring interest and other income (expenses), net attributable to acquisitions and (xiii) non-cash income tax benefits and expenses. These non-GAAP measures are not in accordance with and do not serve as an alternative for GAAP. 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. These non-GAAP measures should only be viewed in conjunction with corresponding GAAP measures. 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 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.

Bonuses under our executive and non-executive bonus programs have been excluded from our non-GAAP net income for all periods reported. Bonus payments for the 2020 performance periods were settled through the issuance of shares of common stock under our equity incentive plans in February 2021. We currently expect that bonus awards under our fiscal 2021 program will be settled in common stock in the first quarter of fiscal 2022.

Expenses incurred in relation to acquisitions include amortization of purchased intangible assets, amortization of inventory fair value adjustments, acquisition and integration costs primarily consisting of professional and consulting fees, and amortization of discount on deferred purchase price payments to interest expense.

Research and development funded by others represents proceeds received under a contract for a jointly funded R&D project to develop technology that may be commercialized into a product in the future. Such proceeds have not yet been recognized in GAAP results as 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.

Impairment losses relate to certain 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.

Loss on extinguishment of debt is related to the charge-off of remaining unamortized debt discount and issuance costs on debt we repaid early with proceeds from a new term loan in June 2021.

Expenses incurred in relation to our intellectual property and commercial litigation include professional fees incurred.

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, particularly related to stock-based compensation and its related tax effects as well as potential impairments, we have not provided a reconciliation for non-GAAP guidance provided for the fourth quarter 2021.

About MaxLinear, Inc.

MaxLinear, Inc. (NYSE: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, 2021

 

June 30, 2021

 

September 30, 2020

Net revenue

$

229,774

 

 

$

205,376

 

 

$

156,633

 

Cost of net revenue

99,981

 

 

92,833

 

 

90,427

 

Gross profit

129,793

 

 

112,543

 

 

66,206

 

Operating expenses:

 

 

 

 

 

Research and development

67,538

 

 

74,416

 

 

55,816

 

Selling, general and administrative

38,469

 

 

35,885

 

 

41,685

 

Restructuring charges

 

 

38

 

 

3,280

 

Total operating expenses

106,007

 

 

110,339

 

 

100,781

 

Income (loss) from operations

23,786

 

 

2,204

 

 

(34,575

)

Interest income

28

 

 

18

 

 

27

 

Interest expense

(2,649

)

 

(3,741

)

 

(3,569

)

Loss on extinguishment of debt

 

 

(5,221

)

 

 

Other income (expense), net

(105

)

 

(537

)

 

(719

)

Total other income (expense), net

(2,726

)

 

(9,481

)

 

(4,261

)

Income (loss) before income taxes

21,060

 

 

(7,277

)

 

(38,836

)

Income tax provision (benefit)

11,802

 

 

(8,010

)

 

(2,191

)

Net income (loss)

$

9,258

 

 

$

733

 

 

$

(36,645

)

Net income (loss) per share:

 

 

 

 

 

Basic

$

0.12

 

 

$

0.01

 

 

$

(0.50

)

Diluted

$

0.12

 

 

$

0.01

 

 

$

(0.50

)

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

 

 

 

 

 

Basic

76,582

 

 

75,930

 

 

73,402

 

Diluted

79,815

 

 

79,026

 

 

73,402

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

 

 

 

 

Nine months ended

 

September 30, 2021

 

September 30, 2020

Net revenue

$

644,509

 

 

$

283,880

 

Cost of net revenue

290,454

 

 

154,169

 

Gross profit

354,055

 

 

129,711

 

Operating expenses:

 

 

 

Research and development

205,120

 

 

109,489

 

Selling, general and administrative

110,823

 

 

93,787

 

Impairment losses

 

 

86

 

Restructuring charges

2,204

 

 

3,833

 

Total operating expenses

318,147

 

 

207,195

 

Income (loss) from operations

35,908

 

 

(77,484

)

Interest income

46

 

 

283

 

Interest expense

(10,596

)

 

(8,228

)

Loss on extinguishment of debt

(5,221

)

 

 

Other income (expense), net

(746

)

 

(620

)

Total other income (expense), net

(16,517

)

 

(8,565

)

Income (loss) before income taxes

19,391

 

 

(86,049

)

Income tax provision (benefit)

5,598

 

 

(12,128

)

Net income (loss)

$

13,793

 

 

$

(73,921

)

Net income (loss) per share:

 

 

 

Basic

$

0.18

 

 

$

(1.02

)

Diluted

$

0.17

 

 

$

(1.02

)

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

 

 

 

Basic

75,795

 

 

72,729

 

Diluted

79,048

 

 

72,729

 

 

 

 

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

Three Months Ended

 

September 30, 2021

 

June 30, 2021

 

September 30, 2020

Operating Activities

 

 

 

 

 

Net income (loss)

$

9,258

 

 

$

733

 

 

$

(36,645

)

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

 

 

 

 

 

Amortization and depreciation

23,117

 

 

21,997

 

 

20,554

 

Amortization of inventory fair value adjustments

 

 

 

 

14,445

 

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

513

 

 

918

 

 

579

 

Stock-based compensation

16,022

 

 

13,966

 

 

14,145

 

Deferred income taxes

6,866

 

 

(6,002

)

 

3,834

 

Loss on disposal of property and equipment

145

 

 

20

 

 

 

Impairment of leasehold improvements

 

 

 

 

156

 

Impairment of leased right-of-use assets

 

 

 

 

1,464

 

Loss on extinguishment of debt

 

 

5,221

 

 

 

(Gain) loss on foreign currency and other

(24

)

 

387

 

 

601

 

Excess tax benefits on stock based awards

(738

)

 

(2,822

)

 

(152

)

Changes in operating assets and liabilities, net of effects of acquisitions:

 

 

 

 

 

Accounts receivable

28,454

 

 

(47,800

)

 

(63,569

)

Inventory

(28,844

)

 

(6,254

)

 

(17,349

)

Prepaid expenses and other assets

39

 

 

3,588

 

 

(35,131

)

Leased right-of-use assets

 

 

36

 

 

79

 

Accounts payable, accrued expenses and other current liabilities

28,743

 

 

8,652

 

 

61,958

 

Accrued compensation

8,616

 

 

13,857

 

 

15,364

 

Accrued price protection liability

(5,319

)

 

(344

)

 

12,108

 

Lease liabilities

(2,723

)

 

(2,345

)

 

(1,566

)

Other long-term liabilities

(48

)

 

4,043

 

 

(7,459

)

Net cash provided by (used in) operating activities

84,077

 

 

7,851

 

 

(16,584

)

Investing Activities

 

 

 

 

 

Purchases of property and equipment

(9,624

)

 

(11,158

)

 

(5,196

)

Purchases of intangible assets

(5,504

)

 

 

 

(375

)

Cash used in acquisitions, net of cash acquired

(7,500

)

 

(7,500

)

 

(160,000

)

Net cash used in investing activities

(22,628

)

 

(18,658

)

 

(165,571

)

Financing Activities

 

 

 

 

 

Proceeds from the issuance of debt

 

 

350,000

 

 

 

Payment of debt issuance cost

(17

)

 

(4,127

)

 

(2,696

)

Repayment of debt

(20,000

)

 

(349,813

)

 

 

Net proceeds from issuance of common stock

192

 

 

4,796

 

 

628

 

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

(976

)

 

(2,663

)

 

(1,393

)

Repurchase of common stock

(1,008

)

 

(4,464

)

 

 

Net cash provided by (used in) financing activities

(21,809

)

 

(6,271

)

 

171,539

 

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

(520

)

 

(681

)

 

(71

)

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

39,120

 

 

(17,759

)

 

(10,687

)

Cash, cash equivalents and restricted cash at beginning of period

131,434

 

 

149,193

 

 

107,429

 

Cash, cash equivalents and restricted cash at end of period

$

170,554

 

 

$

131,434

 

 

$

96,742

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

Nine months ended

 

September 30, 2021

 

September 30, 2020

Operating Activities

 

 

 

Net income (loss)

$

13,793

 

 

$

(73,921

)

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

 

 

 

Amortization and depreciation

67,439

 

 

53,819

 

Impairment losses

 

 

86

 

Amortization of inventory fair value adjustments

 

 

14,445

 

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

2,584

 

 

1,386

 

Stock-based compensation

42,943

 

 

33,057

 

Deferred income taxes

1,405

 

 

(5,253

)

Loss on disposal of property and equipment

533

 

 

 

Impairment of leasehold improvements

226

 

 

319

 

Impairment of leased right-of-use assets

429

 

 

1,508

 

Loss on extinguishment of debt

5,221

 

 

 

Loss on foreign currency

384

 

 

375

 

Excess tax benefits on stock-based awards

(5,369

)

 

(530

)

Changes in operating assets and liabilities, net of effects of acquisitions:

 

 

 

Accounts receivable

(39,425

)

 

(54,592

)

Inventory

(29,440

)

 

(20,180

)

Prepaid expenses and other assets

33,487

 

 

(34,357

)

Leased right-of-use assets

72

 

 

405

 

Accounts payable, accrued expenses and other current liabilities

35,054

 

 

67,193

 

Accrued compensation

23,849

 

 

23,121

 

Accrued price protection liability

1,636

 

 

5,439

 

Lease liabilities

(7,070

)

 

(4,275

)

Other long-term liabilities

4,449

 

 

(8,721

)

Net cash provided by (used in) operating activities

152,200

 

 

(676

)

Investing Activities

 

 

 

Purchases of property and equipment

(26,934

)

 

(10,132

)

Purchases of intangible assets

(6,616

)

 

(388

)

Cash used in acquisitions, net of cash acquired

(35,000

)

 

(160,000

)

Purchases of available-for-sale securities

(5,000

)

 

 

Net cash used in investing activities

(73,550

)

 

(170,520

)

Financing Activities

 

 

 

Proceeds from the issuance of debt

350,000

 

 

175,000

 

Payment of debt issuance cost

(4,144

)

 

(2,696

)

Repayment of debt

(389,813

)

 

 

Net proceeds from issuance of common stock

6,286

 

 

5,270

 

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

(11,081

)

 

(2,892

)

Repurchase of common stock

(8,145

)

 

 

Net cash provided by (used in) financing activities

(56,897

)

 

174,682

 

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

(1,233

)

 

139

 

Increase in cash, cash equivalents and restricted cash

20,520

 

 

3,625

 

Cash, cash equivalents and restricted cash at beginning of period

150,034

 

 

93,117

 

Cash, cash equivalents and restricted cash at end of period

$

170,554

 

 

$

96,742

 

MAXLINEAR, INC.

UNAUDITED GAAP CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

September 30, 2021

 

June 30, 2021

 

September 30, 2020

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

169,424

 

$

130,312

 

$

96,570

Short-term restricted cash

107

 

107

 

111

Accounts receivable, net

106,867

 

135,321

 

105,355

Inventory

127,347

 

98,502

 

104,471

Prepaid expenses and other current assets

14,535

 

13,866

 

43,546

Total current assets

418,280

 

378,108

 

350,053

Long-term restricted cash

1,023

 

1,015

 

61

Property and equipment, net

53,022

 

48,104

 

37,258

Leased right-of-use assets

23,668

 

22,847

 

11,876

Intangible assets, net

163,894

 

174,964

 

232,148

Goodwill

302,828

 

302,828

 

302,576

Deferred tax assets

84,660

 

91,526

 

72,537

Other long-term assets

6,519

 

7,235

 

1,270

Total assets

$

1,053,894

 

$

1,026,627

 

$

1,007,779

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities

$

231,274

 

$

211,789

 

$

211,374

Long-term lease liabilities

21,400

 

20,445

 

9,406

Long-term debt

326,027

 

343,022

 

372,457

Other long-term liabilities

17,650

 

17,704

 

17,734

Stockholders’ equity

457,543

 

433,667

 

396,808

Total liabilities and stockholders’ equity

$

1,053,894

 

$

1,026,627

 

$

1,007,779

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

 

Three Months Ended

 

September 30, 2021

 

June 30, 2021

 

September 30, 2020

GAAP gross profit

$

129,793

 

 

$

112,543

 

 

$

66,206

 

Stock-based compensation

151

 

 

148

 

 

143

 

Performance based equity

123

 

 

127

 

 

180

 

Amortization of inventory fair value adjustments

 

 

 

 

14,445

 

Amortization of purchased intangible assets

10,743

 

 

10,743

 

 

9,901

 

Non-GAAP gross profit

140,810

 

 

123,561

 

 

90,875

 

 

 

 

 

 

 

GAAP R&D expenses

67,538

 

 

74,416

 

 

55,816

 

Stock-based compensation

(7,691

)

 

(7,268

)

 

(6,056

)

Performance based equity

(6,642

)

 

(8,249

)

 

(6,190

)

Research and development funded by others

 

 

(3,800

)

 

 

Acquisition and integration costs

 

 

(38

)

 

 

Non-GAAP R&D expenses

53,205

 

 

55,061

 

 

43,570

 

 

 

 

 

 

 

GAAP SG&A expenses

38,469

 

 

35,885

 

 

41,685

 

Stock-based compensation

(8,179

)

 

(6,551

)

 

(7,349

)

Performance based equity

(3,120

)

 

(3,357

)

 

(2,991

)

Amortization of purchased intangible assets

(5,811

)

 

(5,816

)

 

(6,057

)

Acquisition and integration costs

(135

)

 

(25

)

 

(7,762

)

IP litigation costs, net

 

 

 

 

(35

)

Non-GAAP SG&A expenses

21,224

 

 

20,136

 

 

17,491

 

 

 

 

 

 

 

GAAP restructuring expenses

 

 

38

 

 

3,280

 

Restructuring charges

 

 

(38

)

 

(3,280

)

Non-GAAP restructuring expenses

 

 

 

 

 

 

 

 

 

 

 

GAAP income (loss) from operations

23,786

 

 

2,204

 

 

(34,575

)

Total non-GAAP adjustments

42,595

 

 

46,160

 

 

64,389

 

Non-GAAP income from operations

66,381

 

 

48,364

 

 

29,814

 

 

 

 

 

 

 

GAAP loss on extinguishment of debt

 

 

(5,221

)

 

 

Loss on extinguishment of debt

 

 

5,221

 

 

 

Non-GAAP loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

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

(2,726

)

 

(4,260

)

 

(4,261

)

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

73

 

 

133

 

 

 

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

(2,653

)

 

(4,127

)

 

(4,261

)

 

 

 

 

 

 

GAAP income (loss) before income taxes

21,060

 

 

(7,277

)

 

(38,836

)

Total non-GAAP adjustments

42,668

 

 

51,514

 

 

64,389

 

Non-GAAP income before income taxes

63,728

 

 

44,237

 

 

25,553

 

 

 

 

 

 

 

GAAP income tax provision (benefit)

11,802

 

 

(8,010

)

 

(2,191

)

Adjustment for non-cash tax benefits/expenses

(7,979

)

 

10,665

 

 

3,724

 

Non-GAAP income tax provision

3,823

 

 

2,655

 

 

1,533

 

 

 

 

 

 

 

GAAP net income (loss)

9,258

 

 

733

 

 

(36,645

)

Total non-GAAP adjustments before income taxes

42,668

 

 

51,514

 

 

64,389

 

Less: total tax adjustments

(7,979

)

 

10,665

 

 

3,724

 

Non-GAAP net income

$

59,905

 

 

$

41,582

 

 

$

24,020

 

 

 

 

 

 

 

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

76,582

 

 

75,930

 

 

73,402

 

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

79,815

 

 

79,026

 

 

75,324

 

Non-GAAP basic net income per share

$

0.78

 

 

$

0.55

 

 

$

0.33

 

Non-GAAP diluted net income per share

$

0.75

 

 

$

0.53

 

 

$

0.32

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

 

Nine months ended

 

September 30, 2021

 

September 30, 2020

GAAP gross profit

$

354,055

 

 

$

129,711

 

Stock-based compensation

468

 

 

417

 

Performance based equity

332

 

 

358

 

Amortization of inventory fair value adjustments

 

 

14,445

 

Amortization of purchased intangible assets

32,233

 

 

27,063

 

Non-GAAP gross profit

387,088

 

 

171,994

 

 

 

 

 

GAAP R&D expenses

205,120

 

 

109,489

 

Stock-based compensation

(22,121

)

 

(14,842

)

Performance based equity

(19,489

)

 

(9,994

)

Research and development funded by others

(3,800

)

 

 

Acquisition and integration costs

(130

)

 

 

Non-GAAP R&D expenses

159,580

 

 

84,653

 

 

 

 

 

GAAP SG&A expenses

110,823

 

 

93,787

 

Stock-based compensation

(20,354

)

 

(17,202

)

Performance based equity

(8,367

)

 

(5,271

)

Amortization of purchased intangible assets

(17,697

)

 

(17,329

)

Acquisition and integration costs

(1,721

)

 

(13,122

)

IP litigation costs, net

(11

)

 

(149

)

Non-GAAP SG&A expenses

62,673

 

 

40,714

 

 

 

 

 

GAAP impairment losses

 

 

86

 

Impairment losses

 

 

(86

)

Non-GAAP impairment losses

 

 

 

 

 

 

 

GAAP restructuring expenses

2,204

 

 

3,833

 

Restructuring charges

(2,204

)

 

(3,833

)

Non-GAAP restructuring expenses

 

 

 

 

 

 

 

GAAP income (loss) from operations

35,908

 

 

(77,484

)

Total non-GAAP adjustments

128,927

 

 

124,111

 

Non-GAAP income from operations

164,835

 

 

46,627

 

 

 

 

 

GAAP loss on extinguishment of debt

(5,221

)

 

 

Loss on extinguishment of debt

5,221

 

 

 

Non-GAAP loss on extinguishment of debt

 

 

 

 

 

 

 

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

(11,296

)

 

(8,565

)

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

516

 

 

 

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

(10,780

)

 

(8,565

)

 

 

 

 

GAAP income (loss) before income taxes

19,391

 

 

(86,049

)

Total non-GAAP adjustments

134,664

 

 

124,111

 

Non-GAAP income before income taxes

154,055

 

 

38,062

 

 

 

 

 

GAAP income tax provision (benefit)

5,598

 

 

(12,128

)

Adjustment for non-cash tax benefits/expenses

3,645

 

 

14,412

 

Non-GAAP income tax provision

9,243

 

 

2,284

 

 

 

 

 

GAAP net income (loss)

13,793

 

 

(73,921

)

Total non-GAAP adjustments before income taxes

134,664

 

 

124,111

 

Less: total tax adjustments

3,645

 

 

14,412

 

Non-GAAP net income

$

144,812

 

 

$

35,778

 

 

 

 

 

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

75,795

 

 

72,729

 

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

79,048

 

 

73,925

 

Non-GAAP basic net income per share

$

1.91

 

 

$

0.49

 

Non-GAAP diluted net income per share

$

1.83

 

 

$

0.48

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

 

Three Months Ended

 

September 30, 2021

 

June 30, 2021

 

September 30, 2020

GAAP gross profit

56.5

%

 

54.8

%

 

42.3

%

Stock-based compensation

0.1

%

 

0.1

%

 

0.1

%

Performance based equity

0.1

%

 

0.1

%

 

0.1

%

Amortization of inventory fair value adjustments

%

 

%

 

9.2

%

Amortization of purchased intangible assets

4.7

%

 

5.2

%

 

6.3

%

Non-GAAP gross profit

61.3

%

 

60.2

%

 

58.0

%

 

 

 

 

 

 

GAAP R&D expenses

29.4

%

 

36.2

%

 

35.6

%

Stock-based compensation

(3.4)

%

 

(3.5)

%

 

(3.9)

%

Performance based equity

(2.9)

%

 

(4.0)

%

 

(4.0)

%

Research and development funded by others

%

 

(1.9)

%

 

%

Acquisition and integration costs

%

 

%

 

%

Non-GAAP R&D expenses

23.2

%

 

26.8

%

 

27.8

%

 

 

 

 

 

 

GAAP SG&A expenses

16.7

%

 

17.5

%

 

26.6

%

Stock-based compensation

(3.6)

%

 

(3.2)

%

 

(4.7)

%

Performance based equity

(1.4)

%

 

(1.6)

%

 

(1.9)

%

Amortization of purchased intangible assets

(2.5)

%

 

(2.8)

%

 

(3.9)

%

Acquisition and integration costs

(0.1)

%

 

%

 

(5.0)

%

IP litigation costs, net

%

 

%

 

%

Non-GAAP SG&A expenses

9.2

%

 

9.8

%

 

11.2

%

 

 

 

 

 

 

GAAP impairment losses

%

 

%

 

%

Impairment losses

%

 

%

 

%

Non-GAAP impairment losses

%

 

%

 

%

 

 

 

 

 

 

GAAP restructuring expenses

%

 

%

 

2.1

%

Restructuring charges

%

 

%

 

(2.1)

%

Non-GAAP restructuring expenses

%

 

%

 

%

 

 

 

 

 

 

GAAP income (loss) from operations

10.4

%

 

1.1

%

 

(22.1)

%

Total non-GAAP adjustments

18.5

%

 

22.5

%

 

41.1

%

Non-GAAP income from operations

28.9

%

 

23.6

%

 

19.0

%

 

 

 

 

 

 

GAAP loss on extinguishment of debt

%

 

(2.5)

%

 

%

Loss on extinguishment of debt

%

 

2.5

%

 

%

Non-GAAP loss on extinguishment of debt

%

 

%

 

%

 

 

 

 

 

 

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

(1.2)

%

 

(2.1)

%

 

(2.7)

%

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

%

 

0.1

%

 

%

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

(1.2)

%

 

(2.0)

%

 

(2.7)

%

 

 

 

 

 

 

GAAP income (loss) before income taxes

9.2

%

 

(3.5)

%

 

(24.8)

%

Total non-GAAP adjustments before income taxes

18.6

%

 

25.1

%

 

41.1

%

Non-GAAP income before income taxes

27.7

%

 

21.5

%

 

16.3

%

 

 

 

 

 

 

GAAP income tax provision (benefit)

5.1

%

 

(3.9)

%

 

(1.4)

%

Adjustment for non-cash tax benefits/expenses

(3.5)

%

 

5.2

%

 

2.4

%

Non-GAAP income tax provision

1.7

%

 

1.3

%

 

1.0

%

 

 

 

 

 

 

GAAP net income (loss)

4.0

%

 

0.4

%

 

(23.4)

%

Total non-GAAP adjustments before income taxes

18.6

%

 

25.1

%

 

41.1

%

Less: total tax adjustments

(3.5)

%

 

5.2

%

 

2.4

%

Non-GAAP net income

26.1

%

 

20.3

%

 

15.3

%

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES  

 

 

Nine months ended

 

September 30, 2021

 

September 30, 2020

GAAP gross profit

54.9

%

 

45.7

%

Stock-based compensation

0.1

%

 

0.2

%

Performance based equity

0.1

%

 

0.1

%

Amortization of inventory fair value adjustments

%

 

5.1

%

Amortization of purchased intangible assets

5.0

%

 

9.5

%

Non-GAAP gross profit

60.1

%

 

60.6

%

 

 

 

 

GAAP R&D expenses

31.8

%

 

38.6

%

Stock-based compensation

(3.4)

%

 

(5.2)

%

Performance based equity

(3.0)

%

 

(3.5)

%

Research and development funded by others

(0.6)

%

 

%

Acquisition and integration costs

%

 

%

Non-GAAP R&D expenses

24.8

%

 

29.8

%

 

 

 

 

GAAP SG&A expenses

17.2

%

 

33.0

%

Stock-based compensation

(3.2)

%

 

(6.1)

%

Performance based equity

(1.3)

%

 

(1.9)

%

Amortization of purchased intangible assets

(2.8)

%

 

(6.1)

%

Acquisition and integration costs

(0.3)

%

 

(4.6)

%

IP litigation costs, net

%

 

(0.1)

%

Non-GAAP SG&A expenses

9.7

%

 

14.3

%

 

 

 

 

GAAP impairment losses

%

 

0.03

%

Impairment losses

%

 

(0.03)

%

Non-GAAP impairment losses

%

 

%

 

 

 

 

GAAP restructuring expenses

0.3

%

 

1.4

%

Restructuring charges

(0.3)

%

 

(1.4)

%

Non-GAAP restructuring expenses

%

 

%

 

 

 

 

GAAP income (loss) from operations

5.6

%

 

(27.3)

%

Total non-GAAP adjustments

20.0

%

 

43.7

%

Non-GAAP income from operations

25.6

%

 

16.4

%

 

 

 

 

GAAP loss on extinguishment of debt

(0.8)

%

 

%

Loss on extinguishment of debt

0.8

%

 

%

Non-GAAP loss on extinguishment of debt

%

 

%

 

 

 

 

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

(1.8)

%

 

(3.0)

%

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

0.1

%

 

%

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

(1.7)

%

 

(3.0)

%

 

 

 

 

GAAP income (loss) before income taxes

3.0

%

 

(30.3)

%

Total non-GAAP adjustments

20.9

%

 

43.7

%

Non-GAAP income before income taxes

23.9

%

 

13.4

%

 

 

 

 

GAAP income tax provision (benefit)

0.9

%

 

(4.3)

%

Adjustment for non-cash tax benefits/expenses

0.6

%

 

5.1

%

Non-GAAP income tax provision

1.4

%

 

0.8

%

 

 

 

 

GAAP net income (loss)

2.1

%

 

(26.0)

%

Total non-GAAP adjustments before income taxes

20.9

%

 

43.7

%

Less: total tax adjustments

0.6

%

 

5.1

%

Non-GAAP net income

22.5

%

 

12.6

%

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211027006029/en/

CONTACT: MaxLinear, Inc. Investor Relations Contact:Steven Litchfield

Tel: 949-333-0080

IR@maxlinear.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: TECHNOLOGY HARDWARE SEMICONDUCTOR

SOURCE: MaxLinear, Inc.

Copyright Business Wire 2021.

PUB: 10/27/2021 04:05 PM/DISC: 10/27/2021 04:06 PM

http://www.businesswire.com/news/home/20211027006029/en