UNITED STATES SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
FORM 8-K |
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 |
99.1 | Press Release, dated October 30, 2018 |
Date: | October 30, 2018 | MAXLINEAR, INC. | ||
(Registrant) | ||||
By: | /s/ Steven G. Litchfield | |||
Steven G. Litchfield | ||||
Chief Financial Officer and Chief Strategy Officer | ||||
(Principal Financial Officer) | ||||
Exhibit No. | Description |
99.1 |
• | Announced industry's first 100 Gbps transceiver with integrated driver. |
• | Announced support for 400 Gbps breakout mode clocking in MxL 9354x products. |
• | MxL213C with Full Spectrum Capture was selected by Inspur Group for its next generation of smart cable gateway set-top boxes. |
• | Announced collaboration with ZINWELL for outdoor-to-indoor solution for 5G millimeter wave fixed wireless access. |
• | G.hn Wave-2 chipset was selected by TRIAX to enable enterprise-grade Wi-Fi networking products. |
• | MxL3710 MoCA Access 2.5 networking IC used by InCoax Networks to develop the world's first multi-gigabit coaxial-based access solution. |
• | Net revenue was $85.0 million, down 16% sequentially and down 25% year-on-year. |
• | GAAP gross margin was 51.6%, compared to 55.5% in the prior quarter, and 45.6% in the year-ago quarter. |
• | GAAP operating expenses were $56.4 million in the third quarter 2018, or 66% of revenue, compared to $56.6 million or 56% of revenue in the prior quarter, and $62.5 million or 55% of revenue in the year-ago quarter. |
• | GAAP loss from operations was 15% of revenue, compared to loss from operations of 0% in the prior quarter, and loss from operations of 9% in the year-ago quarter. |
• | Net cash flow provided by operating activities of $30.7 million, compared to $35.8 million in the prior quarter and $37.7 million in the year-ago quarter. |
• | GAAP net loss was $13.9 million, compared to net loss of $14.4 million in the prior quarter, and net loss of $9.2 million in the year-ago quarter. |
• | GAAP diluted loss per share was $0.20, compared to diluted loss per share of $0.21 in the prior quarter, and diluted loss per share of $0.14 in the year-ago quarter. |
• | Non-GAAP gross margin was 62.5%. This compares to 64.6% in the prior quarter, and 62.5% in the year-ago quarter. |
• | Non-GAAP operating expenses were $35.6 million, or 42% of revenue, compared to $37.1 million or 37% of revenue in the prior quarter, and $37.9 million and 33% of revenue in the year-ago quarter. |
• | Non-GAAP income from operations was 21% of revenue, compared to 28% in the prior quarter, and 29% in the year-ago quarter. |
• | Non-GAAP net income was $13.2 million, compared to $23.7 million in the prior quarter, and $27.1 million in the year-ago quarter. |
• | Non-GAAP diluted earnings per share was $0.19, compared to $0.34 in the prior quarter, and $0.39 in the year-ago quarter. |
• | GAAP and non-GAAP gross margin of approximately 52.5% and 63.0%, respectively. |
• | GAAP and non-GAAP operating expenses of approximately $56.0 million and $37.25 million, respectively. |
Three Months Ended | |||||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | |||||||||
Net revenue | $ | 85,010 | $ | 101,533 | $ | 113,581 | |||||
Cost of net revenue | 41,134 | 45,203 | 61,739 | ||||||||
Gross profit | 43,876 | 56,330 | 51,842 | ||||||||
Operating expenses: | |||||||||||
Research and development | 29,047 | 30,211 | 29,270 | ||||||||
Selling, general and administrative | 24,963 | 24,501 | 29,037 | ||||||||
Impairment losses | 2,198 | — | 2,000 | ||||||||
Restructuring charges | 236 | 1,865 | 2,178 | ||||||||
Total operating expenses | 56,444 | 56,577 | 62,485 | ||||||||
Loss from operations | (12,568 | ) | (247 | ) | (10,643 | ) | |||||
Interest income | 17 | 19 | 1 | ||||||||
Interest expense | (3,473 | ) | (3,694 | ) | (4,133 | ) | |||||
Other income (expense), net | 39 | 725 | (668 | ) | |||||||
Total interest and other income (expense), net | (3,417 | ) | (2,950 | ) | (4,800 | ) | |||||
Loss before income taxes | (15,985 | ) | (3,197 | ) | (15,443 | ) | |||||
Income tax provision (benefit) | (2,050 | ) | 11,225 | (6,276 | ) | ||||||
Net loss | $ | (13,935 | ) | $ | (14,422 | ) | $ | (9,167 | ) | ||
Net loss per share: | |||||||||||
Basic | $ | (0.20 | ) | $ | (0.21 | ) | $ | (0.14 | ) | ||
Diluted | $ | (0.20 | ) | $ | (0.21 | ) | $ | (0.14 | ) | ||
Shares used to compute net loss per share: | |||||||||||
Basic | 68,742 | 68,335 | 66,712 | ||||||||
Diluted | 68,742 | 68,335 | 66,712 |
Nine Months Ended | |||||||
September 30, 2018 | September 30, 2017 | ||||||
Net revenue | $ | 297,370 | $ | 306,597 | |||
Cost of net revenue | 134,496 | 150,727 | |||||
Gross profit | 162,874 | 155,870 | |||||
Operating expenses: | |||||||
Research and development | 90,379 | 82,163 | |||||
Selling, general and administrative | 76,581 | 78,988 | |||||
Impairment losses | 2,198 | 2,000 | |||||
Restructuring charges | 2,101 | 8,724 | |||||
Total operating expenses | 171,259 | 171,875 | |||||
Loss from operations | (8,385 | ) | (16,005 | ) | |||
Interest income | 54 | 260 | |||||
Interest expense | (11,061 | ) | (6,334 | ) | |||
Other income (expense), net | 193 | (1,430 | ) | ||||
Total interest and other income (expense), net | (10,814 | ) | (7,504 | ) | |||
Loss before income taxes | (19,199 | ) | (23,509 | ) | |||
Income tax provision (benefit) | 7,311 | (33,770 | ) | ||||
Net income (loss) | $ | (26,510 | ) | $ | 10,261 | ||
Net income (loss) per share: | |||||||
Basic | $ | (0.39 | ) | $ | 0.16 | ||
Diluted | $ | (0.39 | ) | $ | 0.15 | ||
Shares used to compute net income (loss) per share: | |||||||
Basic | 68,256 | 65,950 | |||||
Diluted | 68,256 | 69,491 |
Three Months Ended | |||||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | |||||||||
Operating Activities | |||||||||||
Net loss | $ | (13,935 | ) | $ | (14,422 | ) | $ | (9,167 | ) | ||
Adjustments to reconcile net loss to cash provided by operating activities: | |||||||||||
Amortization and depreciation | 19,767 | 20,051 | 21,342 | ||||||||
Impairment losses | 2,198 | — | 2,000 | ||||||||
Provision for losses on accounts receivable | — | — | 46 | ||||||||
Amortization of inventory step-up | — | — | 10,207 | ||||||||
Amortization of debt issuance costs and discount | 287 | 287 | 301 | ||||||||
Stock-based compensation | 7,940 | 7,309 | 7,796 | ||||||||
Deferred income taxes | 304 | (1,289 | ) | (1,163 | ) | ||||||
Loss on disposal of property and equipment | — | — | 286 | ||||||||
(Gain) loss on foreign currency | (184 | ) | (828 | ) | 733 | ||||||
Excess tax benefits on stock-based awards | (93 | ) | (318 | ) | (841 | ) | |||||
Impairment of leasehold improvements | — | 700 | — | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 25,016 | 6,979 | 7,063 | ||||||||
Inventory | 2,581 | 1,420 | 5,060 | ||||||||
Prepaid expenses and other assets | 712 | 2,213 | 2,374 | ||||||||
Accounts payable, accrued expenses and other current liabilities | (10,606 | ) | 11,540 | (17,453 | ) | ||||||
Accrued compensation | 2,671 | 1,401 | 1,498 | ||||||||
Deferred revenue and deferred profit | — | — | 3,907 | ||||||||
Accrued price protection liability | (5,662 | ) | (132 | ) | 3,606 | ||||||
Other long-term liabilities | (275 | ) | 913 | 144 | |||||||
Net cash provided by operating activities | 30,721 | 35,824 | 37,739 | ||||||||
Investing Activities | |||||||||||
Purchases of property and equipment | (1,609 | ) | (2,423 | ) | (2,500 | ) | |||||
Purchases of intangible assets | — | — | (53 | ) | |||||||
Net cash used in investing activities | (1,609 | ) | (2,423 | ) | (2,553 | ) | |||||
Financing Activities | |||||||||||
Repayment of debt | (35,000 | ) | (18,000 | ) | (50,000 | ) | |||||
Net proceeds from issuance of common stock | 91 | 3,036 | 1,074 | ||||||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (1,178 | ) | (1,448 | ) | (1,426 | ) | |||||
Net cash used in financing activities | (36,087 | ) | (16,412 | ) | (50,352 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 103 | 793 | (829 | ) | |||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (6,872 | ) | 17,782 | (15,995 | ) | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 75,115 | 57,333 | 90,091 | ||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 68,243 | $ | 75,115 | $ | 74,096 |
Nine Months Ended | |||||||
September 30, 2018 | September 30, 2017 | ||||||
Operating Activities | |||||||
Net income (loss) | $ | (26,510 | ) | $ | 10,261 | ||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||||||
Amortization and depreciation | 59,902 | 46,502 | |||||
Impairment losses | 2,198 | 2,000 | |||||
Provision for losses on accounts receivable | — | 133 | |||||
Accretion of investment discount | — | (60 | ) | ||||
Amortization of inventory step-up | — | 15,842 | |||||
Amortization of debt issuance costs and discount | 861 | 476 | |||||
Stock-based compensation | 23,722 | 24,898 | |||||
Deferred income taxes | (3,317 | ) | (48,417 | ) | |||
Loss on disposal of property and equipment | — | 201 | |||||
Loss on sale of available-for-sale securities | — | 38 | |||||
(Gain) loss on foreign currency | (541 | ) | 1,415 | ||||
Excess tax benefits on stock-based awards | (1,208 | ) | (6,598 | ) | |||
Impairment of leasehold improvements | 700 | — | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 7,462 | (13,869 | ) | ||||
Inventory | 11,677 | (2,331 | ) | ||||
Prepaid expenses and other assets | 3,928 | 1,696 | |||||
Accounts payable, accrued expenses and other current liabilities | 513 | 576 | |||||
Accrued compensation | 6,574 | 216 | |||||
Deferred revenue and deferred profit | (138 | ) | 11,233 | ||||
Accrued price protection liability | (7,153 | ) | 13,053 | ||||
Other long-term liabilities | (154 | ) | (3,944 | ) | |||
Net cash provided by operating activities | 78,516 | 53,321 | |||||
Investing Activities | |||||||
Purchases of property and equipment | (6,413 | ) | (4,398 | ) | |||
Purchases of intangible assets | — | (5,378 | ) | ||||
Cash used in acquisition, net of cash acquired | — | (473,304 | ) | ||||
Purchases of available-for-sale securities | — | (30,577 | ) | ||||
Maturities of available-for-sale securities | — | 84,546 | |||||
Net cash used in investing activities | (6,413 | ) | (429,111 | ) | |||
Financing Activities | |||||||
Net proceeds from issuance of debt | — | 416,846 | |||||
Repayment of debt | (78,000 | ) | (50,000 | ) | |||
Repurchases of common stock | — | (334 | ) | ||||
Net proceeds from issuance of common stock | 4,107 | 9,092 | |||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (5,017 | ) | (9,825 | ) | |||
Net cash provided by (used in) financing activities | (78,910 | ) | 365,779 | ||||
Effect of exchange rate changes on cash and cash equivalents | 638 | 1,211 | |||||
Decrease in cash, cash equivalents and restricted cash | (6,169 | ) | (8,800 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 74,412 | 82,896 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 68,243 | $ | 74,096 |
September 30, 2018 | June 30, 2018 | September 30, 2017 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 67,185 | $ | 74,059 | $ | 71,576 | |||||
Short-term restricted cash | 349 | 345 | 615 | ||||||||
Accounts receivable, net | 58,633 | 83,648 | 75,618 | ||||||||
Inventory | 41,757 | 44,338 | 63,692 | ||||||||
Prepaid expenses and other current assets | 6,329 | 7,305 | 7,917 | ||||||||
Total current assets | 174,253 | 209,695 | 219,418 | ||||||||
Long-term restricted cash | 709 | 711 | 1,905 | ||||||||
Property and equipment, net | 19,413 | 20,886 | 23,336 | ||||||||
Intangible assets, net | 261,813 | 281,017 | 332,409 | ||||||||
Goodwill | 238,330 | 238,330 | 239,673 | ||||||||
Deferred tax assets | 42,691 | 42,995 | 53,985 | ||||||||
Other long-term assets | 4,935 | 4,732 | 6,288 | ||||||||
Total assets | $ | 742,144 | $ | 798,366 | $ | 877,014 | |||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities | $ | 66,464 | $ | 80,160 | $ | 98,381 | |||||
Long-term debt | 270,470 | 305,183 | 367,322 | ||||||||
Other long-term liabilities | 12,816 | 13,102 | 14,663 | ||||||||
Total stockholders’ equity | 392,394 | 399,921 | 396,648 | ||||||||
Total liabilities and stockholders’ equity | $ | 742,144 | $ | 798,366 | $ | 877,014 |
Three Months Ended | |||||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | |||||||||
GAAP gross profit | $ | 43,876 | $ | 56,330 | $ | 51,842 | |||||
Stock-based compensation | 131 | 120 | 93 | ||||||||
Performance based equity | 53 | 47 | 34 | ||||||||
Amortization of inventory step-up | — | — | 10,207 | ||||||||
Amortization of purchased intangible assets | 8,969 | 8,968 | 7,907 | ||||||||
Depreciation of fixed asset step-up | 95 | 96 | 113 | ||||||||
Deferred profit eliminated in purchase price accounting | — | — | 810 | ||||||||
Non-GAAP gross profit | 53,124 | 65,561 | 71,006 | ||||||||
GAAP R&D expenses | 29,047 | 30,211 | 29,270 | ||||||||
Stock-based compensation | (4,726 | ) | (4,454 | ) | (4,337 | ) | |||||
Performance based equity | (1,517 | ) | (1,297 | ) | (961 | ) | |||||
Amortization of purchased intangible assets | — | — | (96 | ) | |||||||
Depreciation of fixed asset step-up | (321 | ) | (324 | ) | (561 | ) | |||||
Non-GAAP R&D expenses | 22,483 | 24,136 | 23,315 | ||||||||
GAAP SG&A expenses | 24,963 | 24,501 | 29,037 | ||||||||
Stock-based compensation | (3,070 | ) | (2,735 | ) | (2,965 | ) | |||||
Performance based equity | (785 | ) | (730 | ) | (517 | ) | |||||
Amortization of purchased intangible assets | (7,994 | ) | (7,994 | ) | (9,924 | ) | |||||
Depreciation of fixed asset step-up | (12 | ) | (12 | ) | (30 | ) | |||||
Acquisition and integration costs | — | — | (1,005 | ) | |||||||
IP litigation costs, net | (19 | ) | (19 | ) | (4 | ) | |||||
Non-GAAP SG&A expenses | 13,083 | 13,011 | 14,592 | ||||||||
GAAP impairment losses | 2,198 | — | 2,000 | ||||||||
Impairment losses | (2,198 | ) | — | (2,000 | ) | ||||||
Non-GAAP impairment losses | — | — | — | ||||||||
GAAP restructuring expenses | 236 | 1,865 | 2,178 | ||||||||
Restructuring charges | (236 | ) | (1,865 | ) | (2,178 | ) | |||||
Non-GAAP restructuring expenses | — | — | — | ||||||||
GAAP loss from operations | (12,568 | ) | (247 | ) | (10,643 | ) | |||||
Total non-GAAP adjustments | 30,126 | 28,661 | 43,742 | ||||||||
Non-GAAP income from operations | 17,558 | 28,414 | 33,099 | ||||||||
GAAP and non-GAAP interest and other income (expense), net | (3,417 | ) | (2,950 | ) | (4,800 | ) | |||||
GAAP loss before income taxes | (15,985 | ) | (3,197 | ) | (15,443 | ) | |||||
Total non-GAAP adjustments | 30,126 | 28,661 | 43,742 | ||||||||
Non-GAAP income before income taxes | 14,141 | 25,464 | 28,299 | ||||||||
GAAP income tax provision (benefit) | (2,050 | ) | 11,225 | (6,276 | ) | ||||||
Adjustment for non-cash tax benefits/expenses | 3,040 | (9,443 | ) | 7,476 | |||||||
Non-GAAP income tax provision | 990 | 1,782 | 1,200 | ||||||||
GAAP net loss | (13,935 | ) | (14,422 | ) | (9,167 | ) | |||||
Total non-GAAP adjustments before income taxes | 30,126 | 28,661 | 43,742 | ||||||||
Less: total tax adjustments | 3,040 | (9,443 | ) | 7,476 | |||||||
Non-GAAP net income | $ | 13,151 | $ | 23,682 | $ | 27,099 | |||||
Shares used in computing non-GAAP basic net income per share | 68,742 | 68,335 | 66,712 | ||||||||
Shares used in computing non-GAAP diluted net income per share | 70,634 | 70,473 | 69,668 | ||||||||
Non-GAAP basic net income per share | $ | 0.19 | $ | 0.35 | $ | 0.41 | |||||
Non-GAAP diluted net income per share | $ | 0.19 | $ | 0.34 | $ | 0.39 |
Nine Months Ended | |||||||
September 30, 2018 | September 30, 2017 | ||||||
GAAP gross profit | $ | 162,874 | $ | 155,870 | |||
Stock-based compensation | 357 | 231 | |||||
Performance based equity | 178 | 104 | |||||
Amortization of inventory step-up | — | 15,842 | |||||
Amortization of purchased intangible assets | 26,906 | 16,851 | |||||
Depreciation of fixed asset step-up | 303 | 225 | |||||
Deferred profit eliminated in purchase price accounting | — | 4,682 | |||||
Non-GAAP gross profit | 190,618 | 193,805 | |||||
GAAP R&D expenses | 90,379 | 82,163 | |||||
Stock-based compensation | (13,554 | ) | (11,841 | ) | |||
Performance based equity | (3,954 | ) | (2,970 | ) | |||
Amortization of purchased intangible assets | — | (289 | ) | ||||
Depreciation of fixed asset step-up | (974 | ) | (1,321 | ) | |||
Non-GAAP R&D expenses | 71,897 | 65,742 | |||||
GAAP SG&A expenses | 76,581 | 78,988 | |||||
Stock-based compensation | (9,798 | ) | (7,911 | ) | |||
Performance based equity | (2,564 | ) | (1,577 | ) | |||
Amortization of purchased intangible assets | (23,982 | ) | (20,067 | ) | |||
Depreciation of fixed asset step-up | (34 | ) | (86 | ) | |||
Acquisition and integration costs | — | (10,008 | ) | ||||
IP litigation costs, net | (80 | ) | (234 | ) | |||
Non-GAAP SG&A expenses | 40,123 | 39,105 | |||||
GAAP impairment losses | 2,198 | 2,000 | |||||
Impairment losses | (2,198 | ) | (2,000 | ) | |||
Non-GAAP impairment losses | — | — | |||||
GAAP restructuring expenses | 2,101 | 8,724 | |||||
Restructuring charges | (2,101 | ) | (8,724 | ) | |||
Non-GAAP restructuring expenses | — | — | |||||
GAAP loss from operations | (8,385 | ) | (16,005 | ) | |||
Total non-GAAP adjustments | 86,983 | 104,963 | |||||
Non-GAAP income from operations | 78,598 | 88,958 | |||||
GAAP and non-GAAP interest and other expense, net | (10,814 | ) | (7,504 | ) | |||
GAAP loss before income taxes | (19,199 | ) | (23,509 | ) | |||
Total non-GAAP adjustments | 86,983 | 104,963 | |||||
Non-GAAP income before income taxes | 67,784 | 81,454 | |||||
GAAP income tax provision (benefit) | 7,311 | (33,770 | ) | ||||
Adjustment for non-cash tax benefits/expenses | (2,566 | ) | 40,286 | ||||
Non-GAAP income tax provision | 4,745 | 6,516 | |||||
GAAP net income (loss) | (26,510 | ) | 10,261 | ||||
Total non-GAAP adjustments before income taxes | 86,983 | 104,963 | |||||
Less: total tax adjustments | (2,566 | ) | 40,286 | ||||
Non-GAAP net income | $ | 63,039 | $ | 74,938 | |||
Shares used in computing non-GAAP basic net income per share | 68,256 | 65,950 | |||||
Shares used in computing non-GAAP diluted net income per share | 70,521 | 69,491 | |||||
Non-GAAP basic net income per share | $ | 0.92 | $ | 1.14 | |||
Non-GAAP diluted net income per share | $ | 0.89 | $ | 1.08 |
Three Months Ended | ||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | ||||||
GAAP gross profit | 51.6 | % | 55.5 | % | 45.6 | % | ||
Stock-based compensation | 0.2 | % | 0.1 | % | 0.1 | % | ||
Performance based equity | 0.1 | % | — | % | — | % | ||
Amortization of inventory step-up | — | % | — | % | 9.0 | % | ||
Amortization of purchased intangible assets | 10.6 | % | 8.8 | % | 7.0 | % | ||
Depreciation of fixed asset step-up | 0.1 | % | 0.1 | % | 0.1 | % | ||
Deferred profit eliminated in purchase price accounting | — | % | — | % | 0.7 | % | ||
Non-GAAP gross profit | 62.5 | % | 64.6 | % | 62.5 | % | ||
GAAP R&D expenses | 34.2 | % | 29.8 | % | 25.8 | % | ||
Stock-based compensation | (5.6 | )% | (4.4 | )% | (3.8 | )% | ||
Performance based equity | (1.8 | )% | (1.3 | )% | (0.9 | )% | ||
Amortization of purchased intangible assets | — | % | — | % | (0.1 | )% | ||
Depreciation of fixed asset step-up | (0.5 | )% | (0.4 | )% | (0.5 | )% | ||
Non-GAAP R&D expenses | 26.4 | % | 23.8 | % | 20.5 | % | ||
GAAP SG&A expenses | 29.4 | % | 24.1 | % | 25.6 | % | ||
Stock-based compensation | (3.6 | )% | (2.7 | )% | (2.6 | )% | ||
Performance based equity | (0.9 | )% | (0.7 | )% | (0.5 | )% | ||
Amortization of purchased intangible assets | (9.4 | )% | (7.9 | )% | (8.7 | )% | ||
Depreciation of fixed asset step-up | — | % | — | % | (0.1 | )% | ||
Acquisition and integration costs | — | % | — | % | (0.9 | )% | ||
Restricted merger proceeds and contingent consideration | — | % | — | % | — | % | ||
Change in fair value of contingent consideration | — | % | — | % | — | % | ||
Severance charges | — | % | — | % | — | % | ||
IP litigation costs, net | — | % | — | % | — | % | ||
Non-GAAP SG&A expenses | 15.4 | % | 12.8 | % | 12.8 | % | ||
GAAP impairment losses | 2.6 | % | — | % | 1.8 | % | ||
Impairment losses | (2.6 | )% | — | % | (1.8 | )% | ||
Non-GAAP impairment losses | — | % | — | % | — | % | ||
GAAP restructuring expenses | 0.3 | % | 1.8 | % | 1.9 | % | ||
Restructuring charges | (0.3 | )% | (1.8 | )% | (1.9 | )% | ||
Non-GAAP restructuring expenses | — | % | — | % | — | % | ||
GAAP loss from operations | (14.8 | )% | (0.2 | )% | (9.4 | )% | ||
Total non-GAAP adjustments | 35.4 | % | 28.2 | % | 38.5 | % | ||
Non-GAAP income from operations | 20.7 | % | 28.0 | % | 29.1 | % | ||
GAAP and non-GAAP interest and other income (expense), net | (4.0 | )% | (2.9 | )% | (4.2 | )% | ||
GAAP loss before income taxes | (18.8 | )% | (3.1 | )% | (13.6 | )% | ||
Total non-GAAP adjustments before income taxes | 35.4 | % | 28.2 | % | 38.5 | % | ||
Non-GAAP income before income taxes | 16.6 | % | 25.1 | % | 24.9 | % | ||
GAAP income tax provision (benefit) | (2.4 | )% | 11.1 | % | (5.5 | )% | ||
Adjustment for non-cash tax benefits/expenses | 3.6 | % | (9.3 | )% | 6.5 | % | ||
Non-GAAP income tax provision | 1.2 | % | 1.8 | % | 1.1 | % | ||
GAAP net loss | (16.4 | )% | (14.2 | )% | (8.1 | )% | ||
Total non-GAAP adjustments before income taxes | 35.4 | % | 28.2 | % | 38.5 | % | ||
Less: total tax adjustments | 3.6 | % | (9.3 | )% | 6.5 | % | ||
Non-GAAP net income | 15.5 | % | 23.3 | % | 23.9 | % |
Nine Months Ended | |||||
September 30, 2018 | September 30, 2017 | ||||
GAAP gross profit | 54.8 | % | 50.8 | % | |
Stock-based compensation | 0.1 | % | 0.1 | % | |
Performance based equity | 0.1 | % | — | % | |
Amortization of inventory step-up | — | % | 5.1 | % | |
Amortization of purchased intangible assets | 9.0 | % | 5.5 | % | |
Depreciation of fixed asset step-up | 0.1 | % | 0.1 | % | |
Deferred profit eliminated in purchase price accounting | — | % | 1.5 | % | |
Non-GAAP gross profit | 64.1 | % | 63.2 | % | |
GAAP R&D expenses | 30.4 | % | 26.8 | % | |
Stock-based compensation | (4.6 | )% | (3.9 | )% | |
Performance based equity | (1.3 | )% | (1.0 | )% | |
Amortization of purchased intangible assets | — | % | (0.1 | )% | |
Depreciation of fixed asset step-up | (0.3 | )% | (0.4 | )% | |
Non-GAAP R&D expenses | 24.2 | % | 21.4 | % | |
GAAP SG&A expenses | 25.8 | % | 25.8 | % | |
Stock-based compensation | (3.3 | )% | (2.6 | )% | |
Performance based equity | (0.9 | )% | (0.5 | )% | |
Amortization of purchased intangible assets | (8.1 | )% | (6.5 | )% | |
Depreciation of fixed asset step-up | — | % | — | % | |
Acquisition and integration costs | — | % | (3.3 | )% | |
IP litigation costs, net | — | % | (0.1 | )% | |
Non-GAAP SG&A expenses | 13.5 | % | 12.8 | % | |
GAAP impairment losses | 0.7 | % | 0.7 | % | |
Impairment losses | (0.7 | )% | (0.7 | )% | |
Non-GAAP impairment losses | — | % | — | % | |
GAAP restructuring expenses | 0.7 | % | 2.8 | % | |
Restructuring charges | (0.7 | )% | (2.8 | )% | |
Non-GAAP restructuring expenses | — | % | — | % | |
GAAP loss from operations | (2.8 | )% | (5.2 | )% | |
Total non-GAAP adjustments | 29.3 | % | 34.2 | % | |
Non-GAAP income from operations | 26.4 | % | 29.0 | % | |
GAAP and non-GAAP interest and other income (expense), net | (3.6 | )% | (2.4 | )% | |
GAAP loss before income taxes | (6.5 | )% | (7.7 | )% | |
Total non-GAAP adjustments before income taxes | 29.3 | % | 34.2 | % | |
Non-GAAP income before income taxes | 22.8 | % | 26.6 | % | |
GAAP income tax provision (benefit) | 2.5 | % | (11.0 | )% | |
Adjustment for non-cash tax benefits/expenses | (0.9 | )% | 13.1 | % | |
Non-GAAP income tax provision | 1.6 | % | 2.1 | % | |
GAAP net income (loss) | (8.9 | )% | 3.3 | % | |
Total non-GAAP adjustments before income taxes | 29.3 | % | 34.2 | % | |
Less: total tax adjustments | (0.9 | )% | 13.1 | % | |
Non-GAAP net income | 21.2 | % | 24.4 | % |