Attached files

file filename
8-K - 8-K - MAXLINEAR INCd672201d8k.htm

Exhibit 99.1

LOGO

FOR IMMEDIATE RELEASE

MaxLinear, Inc. Announces

Fourth Quarter and Fiscal Year 2013 Financial Results

$31.6 Million Fourth Quarter Revenue Grows 27 percent Year-over-Year

Carlsbad, Calif. – February 6th, 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 fourth quarter and fiscal year ended December 31, 2013.

Management Commentary

“We are pleased to announce that in the fourth quarter, we realized near-record revenue of $31.6 million, which represents solid growth of 27 percent year-over-year in a quarter in which we typically experience seasonality. These results successfully bring to conclusion a year in which we delivered annual growth in revenue, and positive cash flow from operations of 22 percent and 71 percent, respectively,” commented Kishore Seendripu, Ph.D., Chairman and CEO. “Our revenue growth in 2013 reflected continued momentum in Cable across both DOCSIS 3.0 modem and Media-Server gateway applications along with a return to year-on-year growth of our terrestrial revenues driven by share gains in hybrid television. Furthermore, in 2013, we gained early evidence of potential gains in the Satellite TV market from the successful launch of a broad family of technology leading solutions, and the realization of our first Satellite TV revenues. We believe that Satellite TV applications represent an exciting new addressable market growth opportunity for MaxLinear.”

Generally Accepted Accounting Principles (GAAP) Results

Net revenue for the fourth quarter of 2013 was $31.6 million, a decrease of 1 percent compared to the third quarter of 2013, and an increase of 27 percent compared to the fourth quarter of 2012. Gross profit for the fourth quarter of 2013 was 61 percent of revenue, compared to 62 percent for the third quarter of 2013, and 63 percent for the fourth quarter of 2012. Gross profit for the fourth quarter of 2013 was negatively impacted by approximately 100 basis points for charges related to an inventory reserve taken for some end of life legacy Terrestrial products.

Net loss for the fourth quarter of 2013 was $2.6 million, or $0.08 per share (diluted), compared to net loss of $4.9 million, or $0.14 per share (diluted), for the third quarter of 2013, and net loss


of $4.6 million, or $0.14 per share (diluted), for the fourth quarter of 2012. Net loss per share (diluted) for the fourth quarter of 2013 was impacted by approximately $0.01 due to charges related to an end of life inventory reserve.

Cash flow provided by operations for the fourth quarter of 2013 totaled $2.8 million, compared to $3.1 million for the third quarter of 2013, and $1.4 million for the fourth quarter of 2012.

Cash, cash equivalents and investments totaled $86.4 million at December 31, 2013, compared to $83.0 million at September 30, 2013, and $77.3 million at December 31, 2012.

Net revenue for the year ended December 31, 2013 was $119.6 million, an increase of 22 percent compared to the year ended December 31, 2012. Gross profit for the year ended December 31, 2013 was 61 percent of revenue, compared to 62 percent for the year ended December 31, 2012. Net loss for the year ended December 31, 2013 was $12.7 million, or $0.37 per share (diluted), compared to $13.3 million, or $0.40 per share (diluted), for the year ended December 31, 2012. Cash flow provided by operations for the year ended December 31, 2013 totaled $12.9 million, compared to $7.5 million for the year ended December 31, 2012.

Non-GAAP Results

Non-GAAP gross profit for the fourth quarter of 2013 was 61 percent of revenue, compared to 63 percent for the third quarter of 2013, and 63 percent for the fourth quarter of 2012. Non-GAAP gross profit for the fourth quarter of 2013 was negatively impacted by approximately 100 basis points for charges related to an inventory reserve taken for some end of life legacy Terrestrial solutions.

Non-GAAP net income for the fourth quarter of 2013 was $2.3 million, or $0.06 per share (diluted), compared to $2.9 million, or $0.08 per share (diluted), for the third quarter of 2013, and $0.7 million, or $0.02 per share (diluted), for the fourth quarter of 2012. Non-GAAP net income per share (diluted) for the fourth quarter of 2013 was impacted by approximately $0.01 due to charges related to an end of life inventory reserve.

Non-GAAP gross profit for the year ended December 31, 2013 was 62 percent of revenue, compared to 62 percent for the year ended December 31, 2012. Non-GAAP net income for the year ended December 31, 2013 was $11.5 million, or $0.32 per share (diluted), compared to $4.9 million, or $0.14 per share (diluted), for the year ended December 31, 2012.

First Quarter 2014 Revenue Guidance

We expect revenue in the first quarter of 2014 to be between $31.0 million and $32.5 million and gross profit percentage to be 61 percent to 62 percent of revenue.


Conference Call Details

MaxLinear will host its fourth quarter 2013 financial results conference call today, February 6, 2014 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). To access this call, dial US toll free: 1-877-941-1427 / International: 1-480-629-9664 with conference ID: 4663391. 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 February 20, 2014. A replay of the conference call will also be available until February 20, 2014 by dialing US toll free: 1-800-406-7325 / International: 1-303-590-3030 and referencing passcode: 4663391.


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 first quarter 2014 revenue), 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, which MaxLinear expects to file with the SEC in February 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 2013, which if achieved we intend to settle in stock in 2014; (iii) an accrual related to our performance based bonus plan for 2012, which was settled in stock in May 2013; (iv) expenses associated with our acquisition of certain new market related technology licenses; (v) impairment of production masks and (vi) professional fees, settlement costs, and estimated fines and penalties related to our previously disclosed export compliance and 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 2012 and 2013. Bonus payments for the 2012 performance period were settled through the issuance of shares of Class A common stock under our equity incentive plans in May 2013, and we currently expect that any bonus payments under our 2013 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 the purchase of certain new market related technology licenses, intellectual property litigation and settlement costs and export compliance penalties and professional fees 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.

Expenses incurred in relation to our export compliance review include (i) charges relating to estimates and subsequent reversals of export compliance fines and penalties, and (ii) professional fees incurred as a result of our audit committee’s review and the final voluntary disclosures submitted to governmental agencies.

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 and a one-time settlement payment.


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  
     December 31,
2013
    September 30,
2013
    December 31,
2012
 

Net revenue

   $ 31,574     $ 31,765     $ 24,830  

Cost of net revenue

     12,450       11,934       9,126  
  

 

 

   

 

 

   

 

 

 

Gross profit

     19,124       19,831       15,704  

Operating expenses:

      

Research and development

     14,737       14,569       12,700  

Selling, general and administrative

     7,045       9,965       7,502  
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     21,782       24,534       20,202  
  

 

 

   

 

 

   

 

 

 

Loss from operations

     (2,658 )     (4,703 )     (4,498 )

Interest income

     52       53       61  

Interest expense

     —          —          (8 )

Other expense, net

     (5 )     (77 )     (30 )
  

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (2,611 )     (4,727 )     (4,475 )

Provision for income taxes

     36       155       106  
  

 

 

   

 

 

   

 

 

 

Net loss

   $ (2,647 )   $ (4,882 )   $ (4,581 )
  

 

 

   

 

 

   

 

 

 

Net loss per share:

      

Basic

   $ (0.08 )   $ (0.14 )   $ (0.14 )
  

 

 

   

 

 

   

 

 

 

Diluted

   $ (0.08 )   $ (0.14 )   $ (0.14 )
  

 

 

   

 

 

   

 

 

 

Shares used to compute net loss per share:

      

Basic

     34,939       34,506       32,591  
  

 

 

   

 

 

   

 

 

 

Diluted

     34,939       34,506       32,591  
  

 

 

   

 

 

   

 

 

 


MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

     Year Ended
December 31,
 
     2013     2012  

Net revenue

   $ 119,646     $ 97,728  

Cost of net revenue

     46,683       37,082  
  

 

 

   

 

 

 

Gross profit

     72,963       60,646  

Operating expenses:

    

Research and development

     53,132       46,458  

Selling, general and administrative

     32,181       27,254  
  

 

 

   

 

 

 

Total operating expenses

     85,313       73,712  
  

 

 

   

 

 

 

Loss from operations

     (12,350 )     (13,066 )

Interest income

     222       282  

Interest expense

     (4 )     (53 )

Other expense, net

     (199 )     (74 )
  

 

 

   

 

 

 

Loss before income taxes

     (12,331 )     (12,911 )

Provision for income taxes

     402       341  
  

 

 

   

 

 

 

Net loss

   $ (12,733 )   $ (13,252 )
  

 

 

   

 

 

 

Net loss per share:

    

Basic

   $ (0.37 )   $ (0.40 )
  

 

 

   

 

 

 

Diluted

   $ (0.37 )   $ (0.40 )
  

 

 

   

 

 

 

Shares used to compute net loss per share:

    

Basic

     34,012       33,198  
  

 

 

   

 

 

 

Diluted

     34,012       33,198  
  

 

 

   

 

 

 


MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

     Three Months Ended  
     December 31,
2013
    September 30,
2013
    December 31,
2012
 

Operating Activities

      

Net loss

   $ (2,647   $ (4,882   $ (4,581 )

Adjustments to reconcile net loss to cash provided by operating activities:

      

Amortization and depreciation

     799        874        970  

Amortization of investment premiums, net

     233        260        251  

Stock-based compensation

     3,395        3,463        2,820  

Deferred income taxes

     (166     —          —     

Gain on sale of available-for-sale securities

     —          —          (2 )

Impairment of long-lived assets

     2        34        113  

Changes in operating assets and liabilities:

      

Accounts receivable

     (1,184     (1,019     1,721  

Inventory

     (357     (320     (945 )

Prepaid and other assets

     (164     186        (99 )

Accounts payable, accrued expenses and other current liabilities

     22        (685     107  

Accrued compensation

     586        2,800        1,018  

Deferred revenue and deferred profit

     (396     451        (52 )

Accrued price protection liability

     2,520        1,820        (72 )

Other long-term liabilities

     180        79        113  
  

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     2,823        3,061        1,362  

Investing Activities

      

Purchases of property and equipment

     (529     (811     (2,029 )

Purchases of intangible assets

     —          (300     —     

Purchases of available-for-sale securities

     (13,820     (9,683     (21,528 )

Maturities of available-for-sale securities

     10,200        9,500        19,251  
  

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (4,149     (1,294     (4,306 )

Financing Activities

      

Payments on capital leases

     —          —          (2 )

Repurchases of common stock

     —          —          (2,840 )

Net proceeds from issuance of common stock

     1,401        133        1,019  

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

     (129     (123     (58 )
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     1,272        10        (1,881 )
  

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     4        5        1  

Increase (decrease) in cash and cash equivalents

     (50     1,782        (4,824 )

Cash and cash equivalents at beginning of period

     26,500        24,718        26,634  
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 26,450      $ 26,500      $ 21,810  
  

 

 

   

 

 

   

 

 

 


MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

     Year Ended
December 31,
 
   2013     2012  

Operating Activities

    

Net loss

   $ (12,733 )   $ (13,252 )

Adjustments to reconcile net loss to cash provided by operating activities:

    

Amortization and depreciation

     3,715       3,531  

Amortization of investment premiums, net

     974       1,058  

Stock-based compensation

     12,986       9,984  

Deferred income taxes

     (166 )     —     

Gain on sale of available-for-sale securities

     —          (2 )

Impairment of long-lived assets

     1,231       184  

Changes in operating assets and liabilities:

    

Accounts receivable

     (5,500 )     (4,137 )

Inventory

     (141 )     (1,809 )

Prepaid and other assets

     (308 )     (129 )

Accounts payable, accrued expenses and other current liabilities

     (627 )     3,981  

Accrued compensation

     5,587       4,910  

Deferred revenue and deferred profit

     362       (1,740 )

Accrued price protection liability

     7,137       5,024  

Other long-term liabilities

     373       (59 )
  

 

 

   

 

 

 

Net cash provided by operating activities

     12,890       7,544  

Investing Activities

    

Purchases of property and equipment

     (3,162 )     (5,055 )

Purchases of intangible assets

     (955 )     (390 )

Purchases of available-for-sale securities

     (70,620 )     (87,897 )

Maturities of available-for-sale securities

     65,200       89,151  
  

 

 

   

 

 

 

Net cash used in investing activities

     (9,537 )     (4,191 )

Financing Activities

    

Payments on capital leases

     (2 )     (32 )

Repurchases of common stock

     —          (12,076 )

Net proceeds from issuance of common stock

     2,647       2,706  

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

     (1,375 )     (175 )
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     1,270       (9,577 )
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     17       8  

Increase (decrease) in cash and cash equivalents

     4,640       (6,216 )

Cash and cash equivalents at beginning of period

     21,810       28,026  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 26,450     $ 21,810  
  

 

 

   

 

 

 


MAXLINEAR, INC.

UNAUDITED GAAP CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

     December 31,
2013
     September 30,
2013
     December 31,
2012
 

Assets

        

Current assets:

        

Cash and cash equivalents

   $ 26,450       $ 26,500       $ 21,810  

Short-term investments, available-for-sale

     35,494         35,975         50,265  

Accounts receivable, net

     20,058         18,874         14,558  

Inventory

     10,032         9,675         9,891  

Prepaid expenses and other current assets

     1,682         1,622         1,494  
  

 

 

    

 

 

    

 

 

 

Total current assets

     93,716         92,646         98,018  

Property and equipment, net

     5,511         5,890         6,866  

Long-term investments, available-for-sale

     24,410         20,544         5,181  

Intangible assets

     749         829         275  

Other long-term assets

     543         273         257  
  

 

 

    

 

 

    

 

 

 

Total assets

   $ 124,929       $ 120,182       $ 110,597  
  

 

 

    

 

 

    

 

 

 

Liabilities and stockholders’ equity

        

Current liabilities

   $ 37,158       $ 34,617       $ 29,568  

Other long-term liabilities

     1,097         917         796  

Total stockholders’ equity

     86,674         84,648         80,233  
  

 

 

    

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 124,929       $ 120,182       $ 110,597  
  

 

 

    

 

 

    

 

 

 


MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

     Three Months Ended  
     December 31,
2013
    September 30,
2013
    December 31,
2012
 

GAAP net loss

   $ (2,647   $ (4,882   $ (4,581 )

Stock-based compensation:

      

Cost of net revenue

     29        29        24  

Research and development

     2,163        2,183        1,792  

Selling, general and administrative

     1,203        1,251        1,003  
  

 

 

   

 

 

   

 

 

 

Total stock-based compensation

     3,395        3,463        2,819  

Share-based bonus plan*:

      

Cost of net revenue

     18        14        12  

Research and development

     925        940        750  

Selling, general and administrative

     498        534        583  
  

 

 

   

 

 

   

 

 

 

Total share-based bonus plan

     1,441        1,488        1,345  

Estimated export compliance and IP litigation costs, net**

     99        2,826        1,088  
  

 

 

   

 

 

   

 

 

 

Non-GAAP net income

   $ 2,288      $ 2,895      $ 671  
  

 

 

   

 

 

   

 

 

 

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

     34,939        34,506        32,591  
  

 

 

   

 

 

   

 

 

 

Shares used in computing GAAP diluted net loss per share

     34,939        34,506        32,591  

Dilutive common stock equivalents

     2,529        2,136        1,157  
  

 

 

   

 

 

   

 

 

 

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

     37,468        36,642        33,748  
  

 

 

   

 

 

   

 

 

 

Non-GAAP basic net income per share

   $ 0.07      $ 0.08      $ 0.02  
  

 

 

   

 

 

   

 

 

 

Non-GAAP diluted net income per share

   $ 0.06      $ 0.08      $ 0.02  
  

 

 

   

 

 

   

 

 

 

 

* Share-based bonus plan for the three months ended December 31, 2013 and September 30, 2013 relates to an accrual related to our performance based bonus plan for 2013, which we currently expect to settle in stock in 2014. Share-based bonus plan for the three months ended December 31, 2012 relates to an accrual related to our performance based bonus plan for 2012, which was settled in stock in May 2013.
** Estimated export compliance and IP litigation costs, net for the three months ended September 30, 2013 includes the one-time payment of $1.25 million in connection with the settlement agreement. Estimated export compliance and IP litigation costs, net for the three months ended December 31, 2012 includes the reduction of previously recorded export compliance fines and penalties of $0.3 million.


MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

     Year Ended
December 31,
 
     2013     2012  

GAAP net loss

   $ (12,733   $ (13,252 )

Stock-based compensation:

    

Cost of net revenue

     108        85  

Research and development

     8,258        6,382  

Selling, general and administrative

     4,620        3,517  
  

 

 

   

 

 

 

Total stock-based compensation

     12,986        9,984  

Share-based bonus plan*:

    

Cost of net revenue

     60        45  

Research and development

     3,380        3,021  

Selling, general and administrative

     1,674        1,956  
  

 

 

   

 

 

 

Total share-based bonus plan

     5,114        5,022  

Acquisition of technology licenses

     —          285  

Impairment of production masks

     1,098        63  

Estimated export compliance and IP litigation costs, net**

     4,998        2,776  
  

 

 

   

 

 

 

Non-GAAP net income

   $ 11,463      $ 4,878  
  

 

 

   

 

 

 

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

     34,012        33,198  
  

 

 

   

 

 

 

Shares used in computing GAAP diluted net loss per share

     34,012        33,198  

Dilutive common stock equivalents

     1,863        1,080  
  

 

 

   

 

 

 

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

     35,875        34,278  
  

 

 

   

 

 

 

Non-GAAP basic net income per share

   $ 0.34      $ 0.15  
  

 

 

   

 

 

 

Non-GAAP diluted net income per share

   $ 0.32      $ 0.14  
  

 

 

   

 

 

 

 

* Share-based bonus plan for the year ended December 31, 2013 relates to an accrual related to our performance based bonus plan for 2013, which we currently expect to settle in stock in 2014. Share-based bonus plan for the year ended December 31, 2012 relates to an accrual related to our performance based bonus plan for 2012, which was settled in stock in May 2013.
** Estimated export compliance and IP litigation costs, net for the twelve months ended December 31, 2013 includes the one-time payment of $1.25 million in connection with the settlement agreement. Estimated export compliance and IP litigation costs, net for the twelve months ended December 31, 2012 includes the reduction of previously recorded export compliance fines and penalties of $0.9 million.


MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

     Three Months Ended  
     December 31,
2013
    September 30,
2013
    December 31,
2012
 

GAAP gross profit as a % of revenue

     60.6     62.4     63.2 %

Stock-based compensation:

      

Cost of net revenue

     0.1     0.1     0.1 %

Share-based bonus plan:

      

Cost of net revenue

     0.1     0.1     0.1 %
  

 

 

   

 

 

   

 

 

 

Non-GAAP gross profit as a % of revenue

     60.8     62.6     63.4 %
  

 

 

   

 

 

   

 

 

 

GAAP loss from operations as a % of revenue

     (8.4 )%      (14.8 )%      (18.1 )%

Stock-based compensation:

      

Cost of net revenue

     0.1     0.1     0.1 %

Research and development

     6.9     6.9     7.2 %

Selling, general and administrative

     3.8     3.9     4.0 %

Share-based bonus plan:

      

Cost of net revenue

     0.1     0.1     0.1 %

Research and development

     2.9     2.9     3.0 %

Selling, general and administrative

     1.5     1.7     2.3 %

Impairment of production masks

     —          —          —     

Estimated export compliance and IP litigation costs

     0.3     8.9     4.4 %
  

 

 

   

 

 

   

 

 

 

Non-GAAP income from operations as a % of revenue

     7.2     9.7     3.0 %
  

 

 

   

 

 

   

 

 

 


MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

     Twelve Months Ended
December 31,
 
     2013     2012  

GAAP gross profit as a % of revenue

     61.0     62.1 %

Stock-based compensation:

    

Cost of net revenue

     0.1     0.1 %

Share-based bonus plan:

    

Cost of net revenue

     —          0.1 %

Impairment of production masks

     0.9     0.1 %
  

 

 

   

 

 

 

Non-GAAP gross profit as a % of revenue

     62.0     62.4 %
  

 

 

   

 

 

 

GAAP loss from operations as a % of revenue

     (10.3 )%      (13.4 )%

Stock-based compensation:

    

Cost of net revenue

     0.1     0.1 %

Research and development

     6.9     6.5 %

Selling, general and administrative

     3.9     3.6 %

Share-based bonus plan:

    

Cost of net revenue

     —          0.1 %

Research and development

     2.8     3.1 %

Selling, general and administrative

     1.4     2.0 %

Acquisition of technology licenses

     —          0.3 %

Impairment of production masks

     0.9     0.1 %

Estimated export compliance and IP litigation costs

     4.2     2.8 %
  

 

 

   

 

 

 

Non-GAAP income from operations as a % of revenue

     9.9     5.2 %