MaxLinear, Inc. Announces Third Quarter 2015 Financial Results

CARLSBAD, Calif., Nov. 03, 2015 (GLOBE NEWSWIRE) -- MaxLinear, Inc. (NYSE:MXL), a provider of integrated, radio-frequency (RF) and mixed-signal integrated circuits for broadband communications, pay-TV and the connected home, and data center, metro, and long-haul transport network applications, today announced financial results for the third quarter ended September 30, 2015.

Management Commentary

“We are pleased to announce third quarter 2015 revenue of $95.2 million, our first quarter reflecting a full-quarter of contribution from the acquisition of Entropic Communications. The third quarter revenue represents an increase of 34 percent sequentially, which was slightly above the midpoint of our upwardly revised prior guidance,” commented Kishore Seendripu, Ph.D., Chairman and CEO. “This quarter’s revenue strength was broad-based, with increases across all of our end-market focus areas: operator, infrastructure and other, and legacy video SoC. Within this broad-based strength, areas representing the most significant sequential increases included satellite outdoor units, MoCA® solutions across both cable and satellite operators, Physpeed optical interconnects, and legacy video SoCs. We are also pleased to report a correspondingly strong quarter of operating cash flow, one in which we generated a record $22.0 million, reflecting our continued focus on tight operating expense management and related progress made towards the integration of Entropic. As we look to finish 2015 strongly, we are encouraged by the progress we are making in exploiting new and exciting opportunities for our leading analog and mixed-signal technology platform.”

Generally Accepted Accounting Principles (GAAP) Results

Net revenue for the third quarter 2015 was $95.2 million, an increase of 34.4 percent compared to the second quarter 2015, and an increase of 193 percent compared to the third quarter 2014. Gross profit for the third quarter 2015 was 53.6 percent of revenue, compared to 38.0 percent for the second quarter 2015, and 61.2 percent for the third quarter 2014. The gross profit for the third quarter 2015 was impacted by $1.6 million in amortization of intangible assets and $0.9 million in amortization of inventory step-up related to the Entropic acquisition.

Operating expenses for the third quarter 2015 were $49.4 million, a decrease of 16 percent compared to the second quarter 2015, and an increase of 114 percent compared to the third quarter 2014. Operating expenses as a percentage of revenue represented 52 percent for the third quarter 2015, 83 percent for the second quarter 2015 and 71 percent for the third quarter 2014.

Net income for the third quarter 2015 was $1.6 million, or $0.03 per share (diluted), which included $13.6 million and $0.1 million in amortization of intangible assets related to the Entropic and Physpeed acquisitions, respectively, and restructuring charges of $0.4 million. These results compare to a net loss of $30.6 million, or $0.58 per share (diluted), for the second quarter 2015, and net loss of $3.2 million, or $0.09 per share (diluted), for the third quarter 2014.

Cash flow provided by operations for the third quarter 2015 totaled $22.0 million, compared to cash provided by operations of $4.6 million for the second quarter 2015, and cash provided by operations of $6.4 million for the third quarter 2014.

Cash, cash equivalents and investments totaled $104.8 million at September 30, 2015, compared to $82.1 million at June 30 2015, and $93.9 million at September 30, 2014.

Non-GAAP Results

Non-GAAP gross profit percentage for the third quarter 2015 was 56.7 percent of revenue, compared to 58.4 percent for the second quarter 2015, and 61.3 percent for the third quarter 2014.

Non-GAAP operating expenses were $29.1 million, $29.3 million and $18.2 million for the third quarter 2015, second quarter 2015 and third quarter 2014, respectively. Non-GAAP operating expenses decreased 1 percent when compared to the second quarter 2015, and increased 60 percent when compared to third quarter 2014. Non-GAAP operating expenses as a percentage of revenue represented 31 percent, 41 percent and 56 percent for the third quarter 2015, second quarter 2015 and third quarter 2014, respectively.

Non-GAAP net income for the third quarter 2015 was $25.1 million, or $0.40 per share (diluted), compared to $11.5 million, or $0.21 per share (diluted), for the second quarter 2015, and $1.7 million, or $0.04 per share (diluted), for the third quarter 2014.

Fourth Quarter 2015 Revenue and Gross Margin Guidance

We expect revenue in the fourth quarter of 2015 to be between $95 million and $100 million, and GAAP and non-GAAP gross profit percentages to be 53 percent and 57.5 percent of revenue, respectively.

Conference Call Details

MaxLinear will host its third quarter 2015 financial results conference call today, November 3, 2015 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). To access this call, dial US toll free: 1-888-481-2844 / International: 1-719-325-2393 with conference ID: 893588. A live webcast of the conference call will be accessible from the investor relations section of the MaxLinear website at http://investors.maxlinear.com, and will be archived and available after the call at http://investors.maxlinear.com until November 17, 2015. A replay of the conference call will also be available until November 17, 2015 by dialing US toll free: 1-888-203-1112 / International: 1-719-457-0820 and referencing passcode: 893588.

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 fourth quarter 2015 revenue and gross profit percentage); and trends and growth opportunities in our product 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. Risks and uncertainties affecting our business, operating results, financial condition, and stock price, include, among others, integration risks arising from our acquisition of Entropic; intense competition in our industry; our dependence on a limited number of customers for a substantial portion of our revenues; uncertainties concerning how end user markets for our products will develop; potential uncertainties arising from continued consolidation among cable television and satellite operators; 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; limited trading volumes; risks relating to intellectual property protection and the prevalence of intellectual property litigation in our industry, including pending litigation against us by a third party with the United States International Trade Commission and in United States District Court in Delaware; our reliance on a limited number of third party manufacturers; and our lack of long-term supply contracts and dependence on limited sources of supply. 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 most recent Annual Report on Form 10-K, as amended by Amendment No. 1 filed with the SEC on March 12, 2015 and our subsequent Forms 10-Q. Additional risks, uncertainties, and other information will be contained in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, which MaxLinear expects to file with the SEC in November 2015.

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 net income, gross profit percentage, operating expenses and earnings per share. These supplemental measures exclude the effects of (i) stock-based compensation expense and its related tax effect, if any; (ii) an accrual related to our performance based bonus plan for 2015, which if achieved we intend to settle in shares of our class A common stock in 2016; (iii) an accrual related to our performance based bonus plan for 2014, which we settled in stock in May 2015; (iv) amortization of purchased intangible assets; (v) amortization of inventory step-up; (vi) acquisition and integration costs related to our recently completed acquisitions of Physpeed and Entropic; (vii) restricted merger proceeds; (viii) change in fair value of contingent consideration; (ix) severance charges; (x) restructuring charges related to our acquisition of Entropic; (xi) impairment of production masks; (xii) professional fees and settlement costs related to our previously disclosed IP litigation matters; and (xiii) release of valuation allowance due to net deferred tax liability acquired. 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. In addition, we exclude the related tax effect of stock-based compensation expense, if any, from non-GAAP net income.

Bonus payments under our executive and non-executive bonus programs have been excluded from our non-GAAP net income for 2015 and 2014. Bonus payments for the 2014 and first half of the 2015 performance periods were settled through the issuance of shares of Class A common stock under our equity incentive plans in May and August 2015, and we currently expect that any bonus payments under our 2015 programs for the second half of 2015 will also be settled in Class A common stock. 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.

Restricted stock units to be granted under our equity incentive plan to Physpeed continuing employees if certain 2015 and 2016 revenue targets are met contingent upon continued employment reflect a non-cash charge that we exclude from non-GAAP net income.

Expenses incurred in relation to acquisitions include amortization of purchased intangible assets, amortization of inventory step-up, acquisition and integration costs primarily consisting of professional and consulting fees, restricted merger proceeds which represent merger proceeds held back from the former principal shareholders of Physpeed which will be paid on a quarterly basis through October 31, 2016 and the change in fair value of contingent consideration.

Restructuring charges incurred are related to our restructuring plan which addresses issues primarily relating to the integration of the Company and Entropic businesses. Severance charges incurred relate primarily to our exit of research and development activities in Shanghai, China and other non-recurring charges related to the termination of employees.

Expenses incurred in relation to impairment of production masks reflect costs that were previously capitalized but for which future use is no longer expected.

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

The acquisition of Entropic resulted in a net deferred tax liability, which led to the release of valuation allowance and a benefit (provision) for income taxes.

Reconciliations of non-GAAP measures disclosed in this press release appear below.

About MaxLinear, Inc.

MaxLinear, Inc. is a provider of integrated, radio-frequency (RF) and mixed-signal integrated circuits for broadband communications, pay-TV and the connected home, and data center, metro, and long-haul transport network applications. MaxLinear is located in Carlsbad, California, and its address on the Internet is 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, 2015 (1) June 30, 2015 (2) September 30, 2014
Net revenue$95,191 $70,824 $32,541
Cost of net revenue44,141 43,882 12,632
Gross profit51,050 26,942 19,909
Operating expenses:
Research and development23,491 23,993 14,957
Selling, general and administrative25,457 23,620 8,141
Restructuring charges425 11,389
Total operating expenses49,373 59,002 23,098
Income (loss) from operations1,677 (32,060) (3,189)
Interest income47 51 61
Other income (expense), net407 (22) (49)
Income (loss) before income taxes2,131 (32,031) (3,177)
Provision (benefit) for income taxes549 (1,384) 28
Net income (loss)$1,582 $(30,647) $(3,205)
Net income (loss) per share:
Basic$0.03 $(0.58) $(0.09)
Diluted$0.03 $(0.58) $(0.09)
Shares used to compute net income (loss) per share:
Basic60,644 52,586 36,901
Diluted63,209 52,586 36,901

___________________________________________
(1) Included three months of Entropic operations.
(2) Included two months of Entropic operations.


MAXLINEAR, INC.
UNAUDITED GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)

Nine Months Ended
September 30, 2015 (1) September 30, 2014
Net revenue$201,411 $100,634
Cost of net revenue101,748 38,426
Gross profit99,663 62,208
Operating expenses:
Research and development62,765 41,944
Selling, general and administrative60,021 24,590
Restructuring charges11,814
Total operating expenses134,600 66,534
Loss from operations(34,937) (4,326)
Interest income168 182
Other income (expense), net351 (79)
Loss before income taxes(34,418) (4,223)
(Benefit) provision for income taxes(631) 456
Net loss$(33,787) $(4,679)
Net loss per share:
Basic$(0.67) $(0.13)
Diluted$(0.67) $(0.13)
Shares used to compute net loss per share:
Basic50,528 36,127
Diluted50,528 36,127

___________________________________________
(1) Included five months of Entropic operations.


MAXLINEAR, INC.
UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

Three Months Ended
September 30, 2015 June 30, 2015 September 30, 2014
Operating Activities
Net income (loss)$1,582 $(30,647) $(3,205)
Adjustments to reconcile net loss to cash provided by operating activities:
Amortization and depreciation17,296 12,227 1,322
Amortization of investment premiums, net57 55 168
Amortization of inventory step-up958 13,286
Stock-based compensation5,032 6,301 4,002
Deferred income taxes251 (1,960)
Gain on disposal of property and equipment(39)
Loss on sale of available-for-sale securities21
Impairment of long-lived assets153 8
Impairment of lease568 5,593
Changes in operating assets and liabilities:
Accounts receivable(205) 8,319 233
Inventory1,581 (9,659) 187
Prepaid and other assets(2,684) 3,800 (60)
Accounts payable, accrued expenses and other current liabilities(9,370) (2,530) (1,086)
Accrued compensation3,342 (371) 1,461
Deferred revenue and deferred profit3 502 2,256
Accrued price protection liability3,925 (372) 973
Other long-term liabilities(513) 90 102
Net cash provided by operating activities21,958 4,634 6,361
Investing Activities
Purchases of property and equipment103 (436) (3,126)
Purchases of intangible assets(100)
Cash used in acquisition, net of cash acquired (3,615)
Purchases of available-for-sale securities(25,712) (3,815) (6,693)
Maturities of available-for-sale securities4,400 36,918 6,900
Net cash (used in) provided by investing activities(21,309) 29,052 (2,919)
Financing Activities
Repurchases of common stock (101)
Net proceeds from issuance of common stock2,891 3,207 25
Minimum tax withholding paid on behalf of employees for restricted stock units(1,367) (2,896) (653)
Equity issuance costs (8)
Net cash provided by (used in) financing activities1,524 202 (628)
Effect of exchange rate changes on cash and cash equivalents(755) 74 (7)
Increase in cash and cash equivalents1,418 33,962 2,807
Cash and cash equivalents at beginning of period56,731 22,769 31,248
Cash and cash equivalents at end of period$58,149 $56,731 $34,055


MAXLINEAR, INC.
UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

Nine Months Ended
September 30, 2015 September 30, 2014
Operating Activities
Net loss$(33,787) $(4,679)
Adjustments to reconcile net loss to cash provided by operating activities:
Amortization and depreciation31,162 3,527
Amortization of investment premiums, net261 578
Amortization of inventory step-up14,244
Stock-based compensation15,052 11,080
Deferred income taxes(1,709) 11
Gain on disposal of property and equipment(39)
Loss on sale of available-for-sale securities21
Impairment of long-lived assets153 8
Impairment of lease6,161
Changes in operating assets and liabilities:
Accounts receivable5,971 (397)
Inventory(10,069) 456
Prepaid and other assets700 (402)
Accounts payable, accrued expenses and other current liabilities(9,068) 66
Accrued compensation4,845 3,670
Deferred revenue and deferred profit526 2,234
Accrued price protection liability6,200 1,468
Other long-term liabilities(264) 382
Net cash provided by operating activities30,360 18,002
Investing Activities
Purchases of property and equipment(1,357) (7,767)
Purchases of intangible assets(100)
Cash used in acquisition, net of cash acquired(3,615)
Purchases of available-for-sale securities(45,680) (36,457)
Maturities of available-for-sale securities57,508 35,895
Net cash provided by (used in) investing activities6,756 (8,329)
Financing Activities
Repurchases of common stock(101)
Net proceeds from issuance of common stock6,346 1,584
Minimum tax withholding paid on behalf of employees for restricted stock units(4,528) (3,641)
Equity issuance costs(705)
Net cash provided by (used in) financing activities1,012 (2,057)
Effect of exchange rate changes on cash and cash equivalents(675) (11)
Increase in cash and cash equivalents37,453 7,605
Cash and cash equivalents at beginning of period20,696 26,450
Cash and cash equivalents at end of period$58,149 $34,055


MAXLINEAR, INC.
UNAUDITED GAAP CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

September 30, 2015 June 30, 2015 December 31, 2014
Assets
Current assets:
Cash and cash equivalents$58,149 $56,731 $20,696
Short-term investments, available-for-sale26,797 16,638 48,399
Accounts receivable, net41,766 41,561 18,523
Inventory36,265 38,822 10,858
Prepaid expenses and other current assets4,500 5,297 2,438
Total current assets167,477 159,049 100,914
Property and equipment, net20,543 23,123 12,441
Long-term investments, available-for-sale19,847 8,706 10,256
Intangible assets, net79,655 93,377 10,386
Goodwill49,373 48,888 1,201
Other long-term assets5,715 6,158 513
Total assets$342,610 $339,301 $135,711
Liabilities and stockholders’ equity
Current liabilities$67,485 $74,236 $33,246
Other long-term liabilities10,597 10,723 3,363
Total stockholders’ equity264,528 254,342 99,102
Total liabilities and stockholders’ equity$342,610 $339,301 $135,711


MAXLINEAR, INC.
UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS
(in thousands, except per share data)

Three Months Ended
September 30, 2015 June 30, 2015 September 30, 2014
GAAP net income (loss)$1,582 $(30,647) $(3,205)
Stock-based compensation:
Cost of net revenue73 61 35
Research and development3,496 3,053 2,574
Selling, general and administrative1,442 1,680 1,393
Total stock-based compensation5,011 4,794 4,002
Share-based bonus plan*:
Cost of net revenue148 6
Research and development1,182 1,479 6
Selling, general and administrative753 556 65
Total share-based bonus plan2,083 2,041 71
Amortization of purchased intangible assets:
Cost of net revenue1,572 1,052
Research and development97 96
Selling, general and administrative12,066 7,985
Total amortization of purchased intangible assets13,735 9,133
Amortization of inventory step-up958 13,286
Acquisition and integration costs32 2,813
Restricted merger proceeds209 208
Change in fair value of contingent consideration9 51
Severance charges443 38
Restructuring charges425 11,389
Impairment of production masks153
IP litigation costs, net144 364 876
Release of valuation allowance due to net deferred tax liability acquired341 (1,933)
Non-GAAP net income$25,125 $11,537 $1,744
Shares used in computing non-GAAP basic net income per share60,644 52,586 36,901
Shares used in computing GAAP diluted net income (loss) per share63,209 52,586 36,901
Dilutive common stock equivalents 2,536 2,357
Shares used in computing non-GAAP diluted net income per share63,209 55,122 39,258
Non-GAAP basic net income per share$0.41 $0.22 $0.05
Non-GAAP diluted net income per share$0.40 $0.21 $0.04


*Share-based bonus plan for the three months ended September 30, 2015 and June 30, 2015 relates to an accrual related to our performance based bonus plan for 2015, which will be settled in stock in 2016. For the three months ended September 30, 2015 and June 30, 2015, the share-based bonus plan also included an increase of $0.3 million and $0.3 million, respectively, for the accrual of restricted stock unit awards and incentives to be granted to Physpeed and Entropic continuing employees contingent upon continued employment and the achievement of certain 2015 and 2016 revenue milestones. Share-based bonus plan for the three months ended September 30, 2014 relates to an accrual related to our performance based bonus plan for 2014, which was settled in stock in May 2015.


MAXLINEAR, INC.
UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS
(in thousands, except per share data)

Nine Months Ended
September 30, 2015 September 30, 2014
GAAP net loss$(33,787) $(4,679)
Stock-based compensation:
Cost of net revenue169 96
Research and development8,889 7,152
Selling, general and administrative4,466 3,832
Total stock-based compensation13,524 11,080
Share-based bonus plan*:
Cost of net revenue159 22
Research and development2,974 1,154
Selling, general and administrative1,655 1,002
Total share-based bonus plan4,788 2,178
Amortization of purchased intangible assets:
Cost of net revenue2,624
Research and development309
Selling, general and administrative20,051
Total amortization of purchased intangible assets22,984
Amortization of inventory step-up14,244
Acquisition and integration costs5,349
Restricted merger proceeds625
Change in fair value of contingent consideration(122)
Severance charges1,153
Restructuring charges11,814
Impairment of production masks153
IP litigation costs, net1,135 1,884
Release of valuation allowance due to net deferred tax liability acquired(1,592)
Non-GAAP net income$40,268 $10,463
Shares used in computing non-GAAP basic net income per share50,528 36,127
Shares used in computing GAAP diluted net loss per share50,528 36,127
Dilutive common stock equivalents2,376 2,663
Shares used in computing non-GAAP diluted net income per share52,904 38,790
Non-GAAP basic net income per share$0.80 $0.29
Non-GAAP diluted net income per share$0.76 $0.27


*Share-based bonus plan for the nine months ended September 30, 2015 primarily relates to an accrual related to our performance based bonus plan for 2015 increased by $0.8 million for the accrual of restricted stock unit awards and incentives to be granted to Physpeed and Entropic continuing employees contingent upon continued employment and the achievement of certain 2015 and 2016 revenue milestones. The performance based bonus plan was partially settled in stock in 2015 with the remainder to be settled in stock in 2016. Share-based bonus plan for the nine months ended September 30, 2014 relates to an accrual related to our performance based bonus plan for 2014, which was settled in stock in May 2015.


MAXLINEAR, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Three Months Ended
September 30, 2015 June 30, 2015 September 30, 2014
GAAP gross profit as a % of revenue53.6% 38.0% 61.2%
Stock-based compensation:
Cost of net revenue0.1% 0.1% 0.1%
Share-based bonus plan:
Cost of net revenue0.2% % %
Amortization of purchased intangibles:
Cost of net revenue1.6% 1.5% %
Impairment of production masks
0.2% % %
Amortization of inventory step-up1.0% 18.8% %
Non-GAAP gross profit as a % of revenue56.7% 58.4% 61.3%
GAAP income (loss) from operations as a % of revenue1.8% (45.3)% (9.8)%
Stock-based compensation:
Cost of net revenue0.1% 0.1% 0.1%
Research and development3.7% 4.3% 7.9%
Selling, general and administrative1.5% 2.4% 4.3%
Share-based bonus plan:
Cost of net revenue0.2% % %
Research and development1.2% 2.1% %
Selling, general and administrative0.8% 0.8% 0.2%
Amortization of purchased intangible assets:
Cost of net revenue1.6% 1.5% %
Research and development0.1% 0.1% %
Selling, general and administrative12.7% 11.3% %
Impairment of production masks
0.2% % %
Amortization of inventory step-up1.0% 18.8% %
Acquisition and integration costs% 4.0% %
Restricted merger proceeds0.2% 0.3% %
Change in fair value of contingent consideration% 0.1% %
Severance charges0.5% 0.1% %
Restructuring charges0.4% 16.1% %
IP litigation costs, net0.2% 0.5% 2.7%
Non-GAAP income from operations as a % of revenue26.2% 17.2% 5.4%


MAXLINEAR, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Nine Months Ended
September 30, 2015 September 30, 2014
GAAP gross profit as a % of revenue49.5% 61.8%
Stock-based compensation:
Cost of net revenue0.1% 0.1%
Share-based bonus plan:
Cost of net revenue0.1% %
Amortization of purchased intangibles:
Cost of net revenue1.2% %
Impairment of production masks
0.1% %
Amortization of inventory step-up7.1% %
Non-GAAP gross profit as a % of revenue58.1% 61.9%
GAAP loss from operations as a % of revenue(17.3)% (4.3)%
Stock-based compensation:
Cost of net revenue0.1% 0.1%
Research and development4.4% 7.1%
Selling, general and administrative2.2% 3.8%
Share-based bonus plan:
Cost of net revenue0.1% %
Research and development1.5% 1.1%
Selling, general and administrative0.8% 1.0%
Amortization of purchased intangible assets:
Cost of net revenue1.2% %
Research and development0.2% %
Selling, general and administrative10.0% %
Impairment of production masks
0.1% %
Amortization of inventory step-up7.1% %
Acquisition and integration costs2.7% %
Restricted merger proceeds0.3% %
Change in fair value of contingent consideration(0.1)% %
Severance charges0.6% %
Restructuring charges5.9% %
IP litigation costs, net0.6% 1.9%
Non-GAAP income from operations as a % of revenue20.4% 10.7%


MaxLinear, Inc. Investor Relations Contact: Brian Nugent, CFA Finance and Investor Relations Manager Tel: 949-333-0237 MaxLinear, Inc. Corporate Contact: Adam Spice Chief Financial Officer Tel: 949-333-0092

Source:MaxLinear Inc.