UNITED STATES SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
FORM 8-K/A |
Delaware | 001-34666 | 14-1896129 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit | Description |
23.1 | Consent of Ernst & Young LLP |
99.1 | Abbreviated financial statements of the Wireless Infrastructure Access Line Business as of and for the year ended December 26, 2015 (audited) and as of April 3, 2016 and for the three months ended April 3, 2016 and March 28, 2015 (unaudited) |
99.2 | Pro forma combined financial statements of MaxLinear, Inc. and the Wireless Infrastructure Access Line Business as of March 31, 2016 (unaudited) and for the three months then ended (unaudited) and for the year ended December 31, 2015(unaudited) |
Date: | June 20, 2016 | MAXLINEAR, INC. | ||
(Registrant) | ||||
By: | /s/ Adam C. Spice | |||
Adam C. Spice | ||||
Chief Financial Officer | ||||
(Principal Financial Officer) | ||||
Exhibit Number | Description |
23.1 | Consent of Ernst & Young LLP |
99.1 | Abbreviated financial statements of the Wireless Infrastructure Access Line Business as of and for the year ended December 26, 2015 (audited) and as of April 3, 2016 and for the three months ended April 3, 2016 and March 28, 2015 (unaudited) |
99.2 | Pro forma combined financial statements of MaxLinear, Inc. and the Wireless Infrastructure Access Line Business as of March 31, 2016 (unaudited) and for the three months then ended (unaudited) and for the year ended December 31, 2015(unaudited) |
Vancouver, Canada | /s/ Ernst & Young LLP | |||
June 20, 2016 | Chartered Professional Accountants |
Vancouver, Canada | /s/ Ernst & Young LLP | |||
June 1, 2016 | Chartered Professional Accountants |
April 3, 2016 | December 26, 2015 | ||||||
(Unaudited) | |||||||
Assets acquired | |||||||
Inventories, net | $ | 620 | $ | 687 | |||
Property, plant and equipment, net | 24 | 29 | |||||
Total assets acquired | $ | 644 | $ | 716 | |||
Liabilities assumed | |||||||
Accrued expenses | 435 | 422 | |||||
Total liabilities assumed | $ | 435 | $ | 422 | |||
Net assets acquired | $ | 209 | $ | 294 |
Three Month Period Ended | Year Ended | ||||||||||
April 3, 2016 | March 28, 2015 | December 26, 2015 | |||||||||
(Unaudited) | |||||||||||
Net revenues | |||||||||||
Product sales | $ | 2,433 | $ | 1,041 | $ | 3,836 | |||||
Direct costs and operating expenses | |||||||||||
Cost of goods sold | $ | 973 | $ | 852 | $ | 2,468 | |||||
Product development expense | 1,233 | 2,357 | 6,991 | ||||||||
Selling expense | 264 | 1,030 | 2,980 | ||||||||
Total direct costs and operating expenses | $ | 2,470 | $ | 4,239 | $ | 12,439 | |||||
Net revenues less direct costs and operating expenses | $ | (37 | ) | $ | (3,198 | ) | $ | (8,603 | ) |
Wireless Infrastructure Access Line Business Notes to Abbreviated Financial Statements Three Month Period Ended April 3, 2016 and March 28, 2015 (unaudited) and Year Ended December 26, 2015 |
Wireless Infrastructure Access Line Business Notes to Abbreviated Financial Statements Three Month Period Ended April 3, 2016 and March 28, 2015 (unaudited) and Year Ended December 26, 2015 |
Three Month Period Ended | Year Ended | ||||||||||
April 3, 2016 | March 28, 2015 | December 26, 2015 | |||||||||
(Unaudited) | |||||||||||
Net revenues less direct costs and operating expenses | $ | (37 | ) | $ | (3,198 | ) | $ | (8,603 | ) | ||
Change in inventories | 67 | 57 | 877 | ||||||||
Change in accrued expenses | 13 | (37 | ) | 76 | |||||||
Selected operating cash flows | $ | 43 | $ | (3,178 | ) | $ | (7,650 | ) | |||
Purchases of property, plant and equipment | — | — | — | ||||||||
Selected investing cash flows | — | — | — | ||||||||
Net selected cash flows | $ | 43 | $ | (3,178 | ) | $ | (7,650 | ) |
Wireless Infrastructure Access Line Business Notes to Abbreviated Financial Statements Three Month Period Ended April 3, 2016 and March 28, 2015 (unaudited) and Year Ended December 26, 2015 |
April 3, 2016 | December 26, 2015 | ||||||
(Unaudited) | |||||||
Finished goods and work in process | $ | 664 | $ | 731 | |||
Less provision for excess and obsolescence | (44 | ) | (44 | ) | |||
$ | 620 | $ | 687 |
April 3, 2016 | December 26, 2015 | ||||||
(Unaudited) | |||||||
Lab equipment | $ | 53 | $ | 53 | |||
Furniture and fixtures | 3 | 3 | |||||
Computer software | 4 | 4 | |||||
Accumulated depreciation | (36 | ) | (31 | ) | |||
$ | 24 | $ | 29 |
April 3, 2016 | December 26, 2015 | ||||||
(Unaudited) | |||||||
Warranty | $ | 12 | $ | 9 | |||
Employee liabilities | 423 | 413 | |||||
$ | 435 | $ | 422 |
Wireless Infrastructure Access Line Business Notes to Abbreviated Financial Statements Three Month Period Ended April 3, 2016 and March 28, 2015 (unaudited) and Year Ended December 26, 2015 |
MaxLinear, Inc. | Wireless Infrastructure Access Line Business | Pro Forma Adjustments Total | Notes | Pro Forma Combined | |||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 76,840 | $ | — | $ | (21,624 | ) | (a) | $ | 55,216 | |||||||
Short-term investments, available-for-sale | 73,210 | — | — | 73,210 | |||||||||||||
Accounts receivable, net | 41,040 | — | — | 41,040 | |||||||||||||
Inventory | 29,421 | 620 | 401 | (b) | 30,442 | ||||||||||||
Prepaid expenses and other current assets | 6,185 | — | — | 6,185 | |||||||||||||
Total current assets | 226,696 | 620 | (21,223 | ) | 206,093 | ||||||||||||
Property and equipment, net | 21,538 | 24 | (3 | ) | (c) | 21,559 | |||||||||||
Long-term investments, available-for-sale | 16,782 | — | — | 16,782 | |||||||||||||
Intangible assets | 49,293 | — | 13,600 | (d) | 62,893 | ||||||||||||
Goodwill | 49,779 | — | 6,826 | (e) | 56,605 | ||||||||||||
Other long-term assets | 2,169 | — | — | 2,169 | |||||||||||||
Total assets | $ | 366,257 | $ | 644 | $ | (800 | ) | $ | 366,101 | ||||||||
Liabilities and stockholders’ equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 7,818 | $ | — | $ | — | $ | 7,818 | |||||||||
Deferred revenue and deferred profit | 6,523 | — | — | 6,523 | |||||||||||||
Accrued price protection liability | 18,443 | — | — | 18,443 | |||||||||||||
Accrued expenses and other current liabilities | 17,269 | 12 | — | 17,281 | |||||||||||||
Accrued compensation | 13,221 | 423 | 33 | (c) | 13,677 | ||||||||||||
Total current liabilities | 63,274 | 435 | 33 | 63,742 | |||||||||||||
Deferred rent | 10,195 | — | — | 10,195 | |||||||||||||
Other long-term liabilities | 4,773 | — | — | 4,773 | |||||||||||||
Total stockholders’ equity | 288,015 | — | (624 | ) | (a) | 287,391 | |||||||||||
Total liabilities and stockholders’ equity | $ | 366,257 | $ | 435 | $ | (591 | ) | $ | 366,101 |
MaxLinear, Inc. | Wireless Infrastructure Access Line Business | Pro Forma Adjustments | Notes | Pro Forma Combined | |||||||||||||
Net revenue | $ | 102,685 | $ | 2,433 | $ | — | $ | 105,118 | |||||||||
Cost of net revenue | 41,515 | 973 | 307 | (f) | 42,795 | ||||||||||||
Gross profit | 61,170 | 1,460 | (307 | ) | 62,323 | ||||||||||||
Operating expenses: | |||||||||||||||||
Research and development | 23,752 | 1,233 | 2 | (h) | 24,987 | ||||||||||||
Selling, general and administrative | 13,610 | 264 | 299 | (f) | 14,173 | ||||||||||||
Restructuring | 2,106 | — | — | 2,106 | |||||||||||||
Total operating expenses | 39,468 | 1,497 | 301 | 41,266 | |||||||||||||
Income (loss) from operations | 21,702 | (37 | ) | (608 | ) | 21,057 | |||||||||||
Interest income | 170 | — | — | 170 | |||||||||||||
Other expense, net | (198 | ) | — | — | (198 | ) | |||||||||||
Income (loss) before income taxes | 21,674 | (37 | ) | (608 | ) | 21,029 | |||||||||||
Provision for income taxes | 2,558 | — | 32 | (i) | 2,590 | ||||||||||||
Net income (loss) | $ | 19,116 | $ | (37 | ) | $ | (640 | ) | $ | 18,439 | |||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.31 | $ | 0.29 | |||||||||||||
Diluted | $ | 0.29 | $ | 0.28 | |||||||||||||
Shares used to compute net income per share: | |||||||||||||||||
Basic | 62,585 | 62,585 | |||||||||||||||
Diluted | 65,818 | 65,818 |
MaxLinear, Inc. | Wireless Infrastructure Access Line Business | Pro Forma Adjustments | Notes | Pro Forma Combined | |||||||||||||
Net revenue | $ | 300,360 | $ | 3,836 | $ | — | $ | 304,196 | |||||||||
Cost of net revenue | 144,937 | 2,468 | 1,565 | (f)(g) | 148,970 | ||||||||||||
Gross profit | 155,423 | 1,368 | (1,565 | ) | 155,226 | ||||||||||||
Operating expenses: | |||||||||||||||||
Research and development | 85,405 | 6,991 | 7 | (h) | 92,403 | ||||||||||||
Selling, general and administrative | 77,981 | 2,980 | 1,696 | (f) | 82,657 | ||||||||||||
Impairment losses | 21,600 | — | — | 21,600 | |||||||||||||
Restructuring | 14,086 | — | — | 14,086 | |||||||||||||
Total operating expenses | 199,072 | 9,971 | 1,703 | 210,746 | |||||||||||||
Loss from operations | (43,649 | ) | (8,603 | ) | (3,268 | ) | (55,520 | ) | |||||||||
Interest income | 275 | — | — | 275 | |||||||||||||
Other income, net | 468 | — | — | 468 | |||||||||||||
Loss before income taxes | (42,906 | ) | (8,603 | ) | (3,268 | ) | (54,777 | ) | |||||||||
Provision for income taxes (income tax benefit) | (575 | ) | — | 182 | (i) | (393 | ) | ||||||||||
Net loss | $ | (42,331 | ) | $ | (8,603 | ) | $ | (3,450 | ) | $ | (54,384 | ) | |||||
Net loss per share: | |||||||||||||||||
Basic | $ | (0.79 | ) | $ | (1.02 | ) | |||||||||||
Diluted | $ | (0.79 | ) | $ | (1.02 | ) | |||||||||||
Shares used to compute net loss per share: | |||||||||||||||||
Basic | 53,378 | 53,378 | |||||||||||||||
Diluted | 53,378 | 53,378 |
Description | Amount | ||
Fair value of consideration transferred: | |||
Cash | $ | 21,000 | |
Preliminary purchase price allocation: | |||
Inventory | $ | 1,021 | |
Property, plant and equipment | 21 | ||
Identifiable intangible assets | 13,600 | ||
Warranty obligations | (12 | ) | |
Accrued expenses | (456 | ) | |
Identifiable net assets acquired | $ | 14,174 | |
Goodwill | 6,826 | ||
Total purchase price | $ | 21,000 |
(a) | To record the reduction of MaxLinear’s cash as a result of the consideration paid to Microsemi of $21.0 million and approximately $0.6 million in estimated transaction costs. |
(b) | To record the preliminary purchase accounting adjustments related to assigning a fair value to the acquired inventory, which included, among other things, an adjustment to inventory, commonly referred to as “stepped-up value,” of approximately $0.4 million, representing the estimated capitalized manufacturing profit in acquired inventory. |
(c) | Represents activity in the balances from the March 31, 2016 pro forma combined balance sheet date to the April 28, 2016 acquisition date. Such activity is contemplated in the allocation of purchase price as of the acquisition date. |
(d) | To record the preliminary fair value of the acquired intangibles of $13.6 million. |
(e) | To record the preliminary fair value of goodwill resulting from the excess of consideration paid over the valuation of the net assets acquired. Goodwill resulting from the acquisition is not amortized, and will be assessed for impairment at least annually. |
(f) | To record additional amortization expense related to intangible assets as if the acquisition occurred on January 1, 2015 based on preliminary estimates of the useful lives of the finite-lived intangible assets. In the unaudited combined statements of operations, cost of net revenue has been adjusted to reflect incremental amortization expense of $0.3 million and $1.2 million for the three months ended March 31, 2016 and year ended December 31, 2015, respectively, and selling, general and administrative expense has been adjusted to reflect incremental amortization expense of $0.3 million and $1.7 million for the three months ended March 31, 2016 and year ended December 31, 2015, respectively. |
(g) | To record the estimated step-up of acquired inventory from book value to preliminary fair value. The fair value step-up of inventory resulted in an increase in cost of sales on the unaudited pro forma combined statements of operations of $0.3 million for the year ended December 31, 2015. |
(h) | Acquired property, plant and equipment will be depreciated over the estimated remaining useful life, which is approximately 3 years on a weighted average basis. Research and development expense in the unaudited pro forma combined statement of operations has been adjusted to reflect incremental depreciation expense for the three months ended March 31, 2016 and for the year ended December 31, 2015. |
(i) | To record estimated income taxes for the three months ended March 31, 2015 and the year ended December 31, 2015 based on the effective tax rates in the foreign jurisdictions in which the acquired business operates. |
Year ended December 31, | Amount | |||
2016 | $ | 2,424,405 | ||
2017 | 2,036,905 | |||
2018 | 1,228,572 | |||
2019 | 1,228,572 | |||
2020 | 1,228,571 | |||
Thereafter | 1,228,571 | |||
$ | 9,375,596 |