0001288469-14-000021.txt : 20140731 0001288469-14-000021.hdr.sgml : 20140731 20140731160856 ACCESSION NUMBER: 0001288469-14-000021 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20140731 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20140731 DATE AS OF CHANGE: 20140731 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MAXLINEAR INC CENTRAL INDEX KEY: 0001288469 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 141896129 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34666 FILM NUMBER: 141006370 BUSINESS ADDRESS: STREET 1: 5966 LA PLACE CT. CITY: CARLSBAD STATE: CA ZIP: 92008 BUSINESS PHONE: 760-692-0711 MAIL ADDRESS: STREET 1: 5966 LA PLACE CT. CITY: CARLSBAD STATE: CA ZIP: 92008 8-K 1 mxl2014630-8xk.htm 8-K MXL 2014.6.30-8-K


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 

CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 31, 2014
 
MaxLinear, Inc.
(Exact name of registrant as specified in its charter)
 
 
 
 
Delaware
001-34666
14-1896129
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
5966 La Place Court, Suite 100, Carlsbad, California 92008
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (760) 692-0711
2051 Palomar Airport Road, Suite 100, Carlsbad, California 92011
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 




Item 2.02. Results of Operations and Financial Condition.
The information in this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Current Report on Form 8-K shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On July 31, 2014, MaxLinear, Inc. issued a press release announcing unaudited financial results for the second quarter ended June 30, 2014. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(d)    Exhibits
 
 
Exhibit
Description
99.1
Press Release, dated July 31, 2014.

2



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
 
 
Date: July 31, 2014
 
MAXLINEAR, INC.
 
 
 
 
(Registrant)
 
 
 
 
 
By:
/s/ Adam C. Spice
 
 
 
Adam C. Spice
 
 
 
Chief Financial Officer
 
 
 
(Principal Financial Officer)
 
 
 
 
 
 
/s/ Justin Scarpulla
 
 
 
Justin Scarpulla
 
 
 
Chief Accounting Officer and Corporate Controller
 
 
 
(Principal Accounting Officer)


3


EXHIBIT INDEX
 
 
Exhibit
No.
Description
99.1
Press Release, dated July 31, 2014.

4
 EX-99.1 2 mxl2014630-exhibit991.htm EXHIBIT MXL 2014.6.30-Exhibit 99.1

Exhibit 99.1
FOR IMMEDIATE RELEASE
MaxLinear, Inc. Announces Record Quarterly Revenue and
Second Quarter 2014 Financial Results
$35.6 Million Second Quarter Revenue Grows 20 percent Year-over-Year
Carlsbad, Calif. – July 31th, 2014 – MaxLinear, Inc. (NYSE: MXL), a provider of integrated, radio-frequency (RF) and mixed-signal integrated circuits for broadband communications applications, today announced financial results for the second quarter ended June 30, 2014.
Management Commentary
“We are pleased to announce that in the second quarter, we realized record high revenue of $35.6 million, which represents strong sequential quarterly growth of 10 percent, and even stronger year-over-year growth of 20 percent,” commented Kishore Seendripu, Ph.D., Chairman and CEO. “Our revenue growth in the second quarter of 2014 was realized across both Cable and Terrestrial applications, with particular strength evidenced in advanced DOCSIS 3.0 modem and gateways and a return to growth of shipments into media servers. We continue to be excited about both the design win momentum, and the prospects for success of our brand new, industry leading RF-Mixed Signal broadband front-end devices addressing Satellite TV gateways, and Satellite Outdoor units.”
Generally Accepted Accounting Principles (GAAP) Results
Net revenue for the second quarter of 2014 was $35.6 million, an increase of 10 percent compared to the first quarter of 2014, and an increase of 20 percent compared to the second quarter of 2013. Gross profit for the second quarter of 2014 was 62.5 percent of revenue, compared to 61.7 percent for the first quarter of 2014, and 58.1 percent for the second quarter of 2013.
Net loss for the second quarter of 2014 was $0.6 million, or $0.02 per share (diluted), compared to net loss of $0.9 million, or $0.02 per share (diluted), for the first quarter of 2014, and net loss of $2.9 million, or $0.09 per share (diluted), for the second quarter of 2013.
Cash flow provided by operations for the second quarter of 2014 totaled $7.6 million, compared to $4.1 million for the first quarter of 2014, and $6.2 million for the second quarter of 2013.
Cash, cash equivalents and investments totaled $91.5 million at June 30, 2014, compared to $88.7 million at March 31, 2014, and $81.3 million at June 30, 2013.
Non-GAAP Results
Non-GAAP gross profit for the second quarter of 2014 was 62.6 percent of revenue, compared to 61.8 percent for the first quarter of 2014, and 61.9 percent for the second quarter of 2013.
Non-GAAP net income for the second quarter of 2014 was $5.0 million, or $0.13 per share (diluted), compared to $3.7 million, or $0.10 per share (diluted), for the first quarter of 2014, and $3.8 million, or $0.11 per share (diluted), for the second quarter of 2013.
Third Quarter 2014 Revenue Guidance
We expect revenue in the third quarter of 2014 to be between $36.5 million and $38 million and both GAAP and non-GAAP gross profit percentage to be 62 percent to 62.5 percent of revenue.




Conference Call Details
MaxLinear will host its second quarter 2014 financial results conference call today, July 31, 2014 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). To access this call, dial US toll free: 1-888-359-3624 / International: 1-719-325-2315 with conference ID: 2630837. 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 August 14, 2014. A replay of the conference call will also be available until August 14, 2014 by dialing US toll free: 1-888-203-1112 / International: 1-719-457-0820 and referencing passcode: 2630837.



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 third quarter 2014 revenue and gross profit percentage), trends and growth opportunities in specific product markets such as cable and satellite applications, and opportunities associated with new product offerings and our strategy to expand our addressable market. 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, and stock price, include, among others, 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, including end user markets for the cable and satellite applications of our products as well as end user markets for products currently in development; 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 recently filed actions 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. Additional risks, uncertainties, and other information will be contained in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, which MaxLinear expects to file with the SEC in July 2014.
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 (loss), income (loss) from operations, gross profit, and earnings (loss) 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 2014, which if achieved we intend to settle in stock in 2015; (iii) an accrual related to our performance based bonus plan for 2013, which was settled in stock in May 2014; (iv) impairment of production masks and (v) professional fees related to our previously disclosed IP litigation matters. 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 2014 and 2013. Bonus payments for the 2013 performance period were settled through the issuance of shares of Class A common stock under our equity incentive plans in May 2014, and we currently expect that any bonus payments under our 2014 programs will also be settled in 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.
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 intellectual property litigation are unrelated to our underlying business. Therefore, we do not believe these are indicative of our core operating performance and exclude these expenses in management evaluations of our business.
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 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. Investor Relations Contacts:
Nick Kormeluk
IR Sense
Tel: 949-415-7745
nick@irsense.com
MaxLinear, Inc. Corporate Contact:
Adam Spice
Chief Financial Officer
Tel: 949-333-0092



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


 
Three Months Ended
 
June 30,
 2014
 
March 31,
2014
 
June 30,
 2013
Net revenue
$
35,592

 
$
32,501

 
$
29,773

Cost of net revenue
13,346

 
12,448

 
12,477

Gross profit
22,246

 
20,053

 
17,296

Operating expenses:
 
 
 
 
 
Research and development
13,892

 
13,095

 
12,315

Selling, general and administrative
8,688

 
7,761

 
7,768

Total operating expenses
22,580

 
20,856

 
20,083

Loss from operations
(334
)
 
(803
)
 
(2,787
)
Interest income
60

 
61

 
58

Other expense, net
(18
)
 
(12
)
 
(44
)
Loss before income taxes
(292
)
 
(754
)
 
(2,773
)
Provision for income taxes
320

 
108

 
131

Net loss
$
(612
)
 
$
(862
)
 
$
(2,904
)
Net loss per share:
 
 
 
 
 
Basic
$
(0.02
)
 
$
(0.02
)
 
$
(0.09
)
Diluted
$
(0.02
)
 
$
(0.02
)
 
$
(0.09
)
Shares used to compute net loss per share:
 
 
 
 
 
Basic
36,093

 
35,369

 
33,748

Diluted
36,093

 
35,369

 
33,748



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



 
Six Months Ended
June 30,
 
2014
 
2013
Net revenue
$
68,093

 
$
56,307

Cost of net revenue
25,794

 
22,299

Gross profit
42,299

 
34,008

Operating expenses:
 
 
 
Research and development
26,987

 
23,826

Selling, general and administrative
16,449

 
15,171

Total operating expenses
43,436

 
38,997

Loss from operations
(1,137
)
 
(4,989
)
Interest income
121

 
117

Interest expense
—

 
(4
)
Other expense, net
(30
)
 
(117
)
Loss before income taxes
(1,046
)
 
(4,993
)
Provision for income taxes
428

 
211

Net loss
$
(1,474
)
 
$
(5,204
)
Net loss per share:
 
 
 
Basic
$
(0.04
)
 
$
(0.16
)
Diluted
$
(0.04
)
 
$
(0.16
)
Shares used to compute net loss per share:
 
 
 
Basic
35,733

 
33,287

Diluted
35,733

 
33,287




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


 
Three Months Ended
 
June 30,
2014
 
March 31,
2014
 
June 30,
2013
Operating Activities
 
 
 
 
 
Net loss
$
(612
)
 
$
(862
)
 
$
(2,904
)
Adjustments to reconcile net loss to cash provided by operating activities:
 
 
 
 
 
Amortization and depreciation
1,071

 
1,134

 
1,061

Amortization of investment premiums, net
200

 
210

 
258

Stock-based compensation
3,685

 
3,393

 
3,339

Deferred income taxes
—

 
11

 
—

Impairment of long-lived assets
—

 
—

 
1,131

Changes in operating assets and liabilities:
 
 
 
 
 
Accounts receivable
690

 
(1,320
)
 
164

Inventory
1,279

 
(1,010
)
 
(693
)
Prepaid and other assets
(300
)
 
(42
)
 
(447
)
Accounts payable, accrued expenses and other current liabilities
562

 
590

 
3,749

Accrued compensation
170

 
2,039

 
(76
)
Deferred revenue and deferred profit
(551
)
 
529

 
(341
)
Accrued price protection liability
1,132

 
(637
)
 
889

Other long-term liabilities
224

 
56

 
75

Net cash provided by operating activities
7,550

 
4,091

 
6,205

Investing Activities
 
 
 
 
 
Purchases of property and equipment
(3,196
)
 
(1,445
)
 
(1,280
)
Purchases of intangible assets
—

 
—

 
(655
)
Purchases of available-for-sale securities
(11,065
)
 
(18,699
)
 
(14,945
)
Maturities of available-for-sale securities
10,800

 
18,195

 
18,200

Net cash provided by (used in) investing activities
(3,461
)
 
(1,949
)
 
1,320

Financing Activities
 
 
 
 
 
Payments on capital leases
—

 
—

 
(1
)
Net proceeds from issuance of common stock
1,510

 
49

 
1,090

Minimum tax withholding paid on behalf of employees for restricted stock units
(2,852
)
 
(136
)
 
(1,075
)
Net cash provided by (used in) financing activities
(1,342
)
 
(87
)
 
14

Effect of exchange rate changes on cash and cash equivalents
1

 
(5
)
 
5

Increase in cash and cash equivalents
2,748

 
2,050

 
7,544

Cash and cash equivalents at beginning of period
28,500

 
26,450

 
17,174

Cash and cash equivalents at end of period
$
31,248

 
$
28,500

 
$
24,718



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


 
Six Months Ended
June 30,
 
2014
 
2013
Operating Activities
 
 
 
Net loss
$
(1,474
)
 
$
(5,204
)
Adjustments to reconcile net loss to cash provided by operating activities:
 
 
 
Amortization and depreciation
2,205

 
2,042

Amortization of investment premiums, net
410

 
481

Stock-based compensation
7,078

 
6,128

Deferred income taxes
11

 
—

Impairment of long-lived assets
—

 
1,195

Changes in operating assets and liabilities:
 
 
 
Accounts receivable
(630
)
 
(3,297
)
Inventory
269

 
536

Prepaid and other assets
(342
)
 
(330
)
Accounts payable, accrued expenses and other current liabilities
1,152

 
36

Accrued compensation
2,209

 
2,201

Deferred revenue and deferred profit
(22
)
 
307

Accrued price protection liability
495

 
2,797

Other long-term liabilities
280

 
114

Net cash provided by operating activities
11,641

 
7,006

Investing Activities
 
 
 
Purchases of property and equipment
(4,641
)
 
(1,822
)
Purchases of intangible assets
—

 
(655
)
Purchases of available-for-sale securities
(29,764
)
 
(47,117
)
Maturities of available-for-sale securities
28,995

 
45,500

Net cash used in investing activities
(5,410
)
 
(4,094
)
Financing Activities
 
 
 
Payments on capital leases
—

 
(2
)
Net proceeds from issuance of common stock
1,559

 
1,113

Minimum tax withholding paid on behalf of employees for restricted stock units
(2,988
)
 
(1,123
)
Net cash used in financing activities
(1,429
)
 
(12
)
Effect of exchange rate changes on cash and cash equivalents
(4
)
 
8

Increase in cash and cash equivalents
4,798

 
2,908

Cash and cash equivalents at beginning of period
26,450

 
21,810

Cash and cash equivalents at end of period
$
31,248

 
$
24,718




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


 
June 30,
2014
 
March 31,
2014
 
June 30,
2013
Assets
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
31,248

 
$
28,500

 
$
24,718

Short-term investments, available-for-sale
43,875

 
44,769

 
37,084

Accounts receivable, net
20,688

 
21,378

 
17,855

Inventory
9,763

 
11,042

 
9,355

Prepaid expenses and other current assets
1,960

 
1,675

 
1,814

Total current assets
107,534

 
107,364

 
90,826

Property and equipment, net
9,858

 
7,913

 
6,149

Long-term investments, available-for-sale
16,385

 
15,428

 
19,453

Intangible assets
590

 
670

 
958

Other long-term assets
596

 
581

 
267

Total assets
$
134,963

 
$
131,956

 
$
117,653

Liabilities and stockholders’ equity
 
 
 
 
 
Current liabilities
$
37,726

 
$
41,691

 
$
30,803

Other long-term liabilities
1,373

 
1,149

 
903

Total stockholders’ equity
95,864

 
89,116

 
85,947

Total liabilities and stockholders’ equity
$
134,963

 
$
131,956

 
$
117,653




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


 
Three Months Ended
 
June 30,
2014
 
March 31,
2014
 
June 30,
2013
GAAP net loss
$
(612
)
 
$
(862
)
 
$
(2,904
)
Stock-based compensation:
 
 
 
 
 
Cost of net revenue
32

 
29

 
26

Research and development
2,384

 
2,194

 
2,158

Selling, general and administrative
1,269

 
1,170

 
1,155

Total stock-based compensation
3,685

 
3,393

 
3,339

Share-based bonus plan*:
 
 
 
 
 
Cost of net revenue
13

 
9

 
18

Research and development
657

 
491

 
873

Selling, general and administrative
564

 
373

 
289

Total share-based bonus plan
1,234

 
873

 
1,180

Impairment of production masks
—

 
—

 
1,098

IP litigation costs
668

 
340

 
1,114

Non-GAAP net income
$
4,975

 
$
3,744

 
$
3,827

Shares used in computing non-GAAP basic net income per share
36,093

 
35,369

 
33,748

Shares used in computing GAAP diluted net loss per share
36,093

 
35,369

 
33,748

Dilutive common stock equivalents
2,682

 
2,949

 
1,531

Shares used in computing non-GAAP diluted net income per share
38,775

 
38,318

 
35,279

Non-GAAP basic net income per share
$
0.14

 
$
0.11

 
$
0.11

Non-GAAP diluted net income per share
$
0.13

 
$
0.10

 
$
0.11

*
Share-based bonus plan for the three months ended June 30, 2014 and March 31, 2014 relates to an accrual related to our performance based bonus plan for 2014, which will be settled in stock in 2015. Share-based bonus plan for the three months ended June 30, 2013 relates to an accrual related to our performance based bonus plan for 2013, which was settled in stock in May 2014.



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


 
Six Months Ended
June 30,
 
 2014
 
2013
GAAP net loss
$
(1,474
)
 
$
(5,204
)
Stock-based compensation:
 
 
 
Cost of net revenue
61

 
50

Research and development
4,578

 
3,912

Selling, general and administrative
2,439

 
2,166

Total stock-based compensation
7,078

 
6,128

Share-based bonus plan*:
 
 
 
Cost of net revenue
22

 
29

Research and development
1,148

 
1,517

Selling, general and administrative
937

 
642

Total share-based bonus plan
2,107

 
2,188

Impairment of production masks
—

 
1,098

IP litigation costs
1,008

 
2,073

Non-GAAP net income
$
8,719

 
$
6,283

Shares used in computing non-GAAP basic net income per share
35,733

 
33,287

Shares used in computing GAAP diluted net loss per share
35,733

 
33,287

Dilutive common stock equivalents
2,816

 
1,393

Shares used in computing non-GAAP diluted net income per share
38,549

 
34,680

Non-GAAP basic net income per share
$
0.24

 
$
0.19

Non-GAAP diluted net income per share
$
0.23

 
$
0.18


*
Share-based bonus plan for the six months ended June 30, 2014 relates to an accrual related to our performance based bonus plan for 2014, which will be settled in stock in 2015. Share-based bonus plan for the six months ended June 30, 2013 relates to an accrual related to our performance based bonus plan for 2013, which was settled in stock in May 2014.



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


 
Three Months Ended
 
June 30,
2014
 
March 31,
2014
 
June 30,
2013
GAAP gross profit as a % of revenue
62.5
 %
 
61.7
 %
 
58.1
 %
Stock-based compensation:
 
 
 
 
 
Cost of net revenue
0.1
 %
 
0.1
 %
 
0.1
 %
Share-based bonus plan:
 
 
 
 
 
Cost of net revenue
—
 %
 
—
 %
 
—
 %
Impairment of production masks
—
 %
 
—
 %
 
3.7
 %
Non-GAAP gross profit as a % of revenue
62.6
 %
 
61.8
 %
 
61.9
 %
GAAP loss from operations as a % of revenue
(0.9
)%
 
(2.5
)%
 
(9.4
)%
Stock-based compensation:
 
 
 
 
 
Cost of net revenue
0.1
 %
 
0.1
 %
 
0.1
 %
Research and development
6.7
 %
 
6.8
 %
 
7.2
 %
Selling, general and administrative
3.6
 %
 
3.6
 %
 
3.9
 %
Share-based bonus plan:
 
 
 
 
 
Cost of net revenue
—
 %
 
—
 %
 
—
 %
Research and development
1.8
 %
 
1.5
 %
 
2.9
 %
Selling, general and administrative
1.6
 %
 
1.1
 %
 
1.0
 %
Impairment of production masks
—
 %
 
—
 %
 
3.7
 %
IP litigation costs
1.9
 %
 
1.0
 %
 
3.7
 %
Non-GAAP income from operations as a % of revenue
14.8
 %
 
11.6
 %
 
13.1
 %



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



 
Six Months Ended
June 30,
 
2014
 
2013
GAAP gross profit as a % of revenue
62.1
 %
 
60.4
 %
Stock-based compensation:
 
 
 
Cost of net revenue
0.1
 %
 
0.1
 %
Share-based bonus plan:
 
 
 
Cost of net revenue
—
 %
 
—
 %
Impairment of production masks
—
 %
 
2.0
 %
Non-GAAP gross profit as a % of revenue
62.2
 %
 
62.5
 %
GAAP loss from operations as a % of revenue
(1.7
)%
 
(8.9
)%
Stock-based compensation:


 
 
Cost of net revenue
0.1
 %
 
0.1
 %
Research and development
6.7
 %
 
6.9
 %
Selling, general and administrative
3.6
 %
 
3.8
 %
Share-based bonus plan:


 
 
Cost of net revenue
—
 %
 
—
 %
Research and development
1.7
 %
 
2.7
 %
Selling, general and administrative
1.4
 %
 
1.1
 %
Impairment of production masks
—

 
2.0
 %
IP litigation costs
1.5
 %
 
3.7
 %
Non-GAAP income from operations as a % of revenue
13.3
 %
 
11.4
 %




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