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MaxLinear, Inc. Announces Second Quarter 2024 Financial Results

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MaxLinear (NASDAQ: MXL), a provider of RF, analog, digital, and mixed-signal ICs, announced Q2 2024 financial results. Net revenue was $92.0 million, down 3% sequentially and 50% YoY.

GAAP gross margin rose to 54.6% from 51.7% in the prior quarter but down from 55.9% YoY. GAAP operating expenses were $91.0 million, or 99% of net revenue. GAAP loss from operations was 44% of revenue, improving from 78% in the prior quarter, but worse than 3% YoY. Net cash flow used in operating activities was $2.7 million, reversing from positive $16.0 million in the prior quarter.

GAAP diluted loss per share was $0.47, compared to $0.88 in the previous quarter and $0.05 YoY. Non-GAAP gross margin was 60.2%, and non-GAAP operating expenses were $74.8 million. Non-GAAP loss from operations was 21% of revenue, compared to the prior quarter's 18% loss. Non-GAAP diluted loss per share was $0.25.

The company anticipates Q3 2024 revenues between $70 million and $90 million, with GAAP gross margin between 52.5% and 55.5%.

Positive
  • GAAP gross margin improved to 54.6% from 51.7% in the prior quarter.
  • GAAP operating expenses decreased to $91.0 million, from $123.9 million in the prior quarter.
  • Non-GAAP gross margin remained high at 60.2%.
Negative
  • Net revenue decreased 50% year-over-year.
  • GAAP loss from operations was 44% of net revenue.
  • Net cash flow used in operating activities was $2.7 million.
  • GAAP diluted loss per share was $0.47.
  • Non-GAAP loss from operations increased to 21% of net revenue.

Insights

MaxLinear's Q2 2024 results paint a challenging picture for the semiconductor company. Revenue of $92.0 million represents a significant 50% year-over-year decline, reflecting ongoing weakness in the broadband market. The GAAP gross margin of 54.6% and non-GAAP gross margin of 60.2% show resilience in pricing power, but are slightly down from the previous year.

Notably concerning is the GAAP operating loss of 44% of revenue, a substantial deterioration from the 3% loss in Q2 2023. This reflects the difficulty in adjusting operating expenses quickly enough to match revenue declines. The non-GAAP loss from operations of 21% of revenue, compared to a 16% profit last year, further underscores this challenge.

Cash flow has also weakened significantly, with $2.7 million used in operating activities this quarter compared to $30.6 million generated in Q2 2023. This could potentially strain the company's financial flexibility if the trend continues.

Looking ahead, the Q3 2024 revenue guidance of $70 million to $90 million suggests continued headwinds, with the midpoint representing another sequential decline. However, the projected non-GAAP gross margin of 57.0% to 60.0% indicates that MaxLinear is maintaining its pricing discipline despite market pressures.

While the company highlights progress in infrastructure markets and new product introductions, the financial results underscore the urgent need for a broadband market recovery or significant traction in new markets to return to profitability and growth.

MaxLinear's Q2 2024 results reflect the broader challenges facing the semiconductor industry, particularly in the broadband sector. The 50% year-over-year revenue decline is stark, even considering the cyclical nature of the chip industry. This downturn is likely due to a combination of factors, including inventory corrections, macroeconomic uncertainties and potentially shifting market dynamics in broadband technologies.

However, it's important to note MaxLinear's strategic pivot towards infrastructure markets, particularly wireless and optical interconnect products. This diversification strategy could prove vital in navigating the current downturn. The company's emphasis on Ethernet, storage, Wi-Fi 7 and fiber PON gateway products targets expanding market opportunities and could position MaxLinear for growth once market conditions improve.

The introduction of Wi-Fi 7 products is particularly noteworthy. As the next generation of Wi-Fi technology, it represents a significant opportunity for chip suppliers. Early entry into this market could provide MaxLinear with a competitive edge and drive future growth.

Despite the challenging financial results, the maintenance of relatively strong gross margins (both GAAP and non-GAAP) suggests that MaxLinear's products still command value in the market. This pricing power could be important in weathering the current storm and positioning for a rebound.

The key for MaxLinear will be managing the transition period until the broadband market recovers or new product lines gain significant traction. The company's ability to control operating expenses and preserve cash will be critical in the coming quarters.

  • Net revenue of $92.0 million in Q2, GAAP gross margin of 54.6% and non-GAAP gross margin of 60.2%

CARLSBAD, Calif.--(BUSINESS WIRE)-- MaxLinear, Inc. (Nasdaq: MXL), a leading provider of radio frequency (RF), analog, digital and mixed-signal integrated circuits, today announced financial results for the second quarter ended June 30, 2024.

Second Quarter Financial Highlights

GAAP basis:

  • Net revenue was $92.0 million, down 3% sequentially and down 50% year-over-year.
  • GAAP gross margin was 54.6%, compared to 51.7% in the prior quarter, and 55.9% in the year-ago quarter.
  • GAAP operating expenses were $91.0 million in the second quarter 2024, or 99% of net revenue, compared to $123.9 million in the prior quarter, or 130% of net revenue, and $108.8 million in the year-ago quarter, or 59% of net revenue.
  • GAAP loss from operations was 44% of net revenue, compared to loss from operations of 78% of net revenue in the prior quarter, and loss from operations of 3% of net revenue in the year-ago quarter.
  • Net cash flow used in operating activities was $2.7 million, compared to net cash flow provided by operating activities of $16.0 million in the prior quarter, and net cash flow provided by operating activities of $30.6 million in the year-ago quarter.
  • GAAP diluted loss per share was $0.47, compared to diluted loss per share of $0.88 in the prior quarter, and diluted loss per share of $0.05 in the year-ago quarter.

Non-GAAP basis:

  • Non-GAAP gross margin was 60.2%. This compares to 60.6% in the prior quarter, and 61.0% in the year-ago quarter.
  • Non-GAAP operating expenses were $74.8 million, or 81% of net revenue, compared to $74.8 million or 78% of net revenue in the prior quarter, and $82.5 million or 45% of net revenue in the year-ago quarter.
  • Non-GAAP loss from operations was 21% of net revenue, compared to loss of 18% in the prior quarter, and income of 16% in the year-ago quarter.
  • Non-GAAP diluted loss per share was $0.25, compared to loss of $0.21 in the prior quarter, and earnings of $0.34 in the year-ago quarter.

Management Commentary

“In conclusion, we are excited and confident in our progress in the infrastructure market with our wireless and optical interconnect products, even as we await a broadband recovery,” said Kishore Seendripu, PhD, Chairman and CEO. “In addition, our Ethernet, storage, Wi-Fi7, and fiber PON gateway products are all in the market today addressing additional new TAM, have strong customer traction, and are poised for meaningful growth. We are optimizing our efforts around these opportunities, which will be transformative for our future business while driving maximum value for our customers and shareholders.”

Third Quarter 2024 Business Outlook

The company expects net revenue in the third quarter of 2024 to be approximately $70 million to $90 million. The Company also estimates the following:

  • GAAP gross margin of approximately 52.5% to 55.5%;
  • Non-GAAP gross margin of approximately 57.0% to 60.0%;
  • GAAP operating expenses of approximately $102 million to $108 million;
  • Non-GAAP operating expenses of approximately $70 million to $76 million;
  • GAAP and non-GAAP interest and other expense of approximately $0 to $2.0 million each; and
  • GAAP and non-GAAP diluted share count of approximately 84.1 million each.

Webcast and Conference Call

MaxLinear will host its second quarter financial results conference call today, July 24, 2024 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). To access this call, dial US toll free: 1-877-407-3109 / International: 1-201-493-6798. A live webcast of the conference call will be accessible from the investor relations section of the MaxLinear website at https://investors.maxlinear.com, and will be archived and available after the call at https://investors.maxlinear.com until August 7, 2024. A replay of the conference call will also be available until August 7, 2024 by dialing US toll free: 1-877-660-6853 / International: 1-201-612-7415 and Conference ID#: 13747243.

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 2024 net revenue, and GAAP and non-GAAP amounts for each of the following: gross margins, operating expenses, interest and other expenses, and diluted share counts); our potential growth and revenue opportunities; market trends; settlement of bonus awards for our 2024 performance period; and statements by our Chairman and CEO. 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 and our future financial performance and operating results forecasts generally. Forward-looking statements are based on management’s current, preliminary expectations and are subject to various risks and uncertainties. In particular, our future operating results are substantially dependent on our assumptions about market trends and conditions. Additional risks and uncertainties affecting our business, future operating results and financial condition include, without limitation; risks relating to our terminated merger with Silicon Motion and related arbitration and class action complaint and the risks related to potential payment of damages; the effect of intense and increasing competition; impacts of global economic conditions; the cyclical nature of the semiconductor industry; a significant variance in our operating results and impact on volatility in our stock price, and our ability to sustain our current level of revenue, which has declined, and/or manage future growth effectively, and the impact of excess inventory in the channel on our customers’ expected demand for certain of our products; the geopolitical and economic tensions among the countries in which we conduct business; increased tariffs, export controls or imposition of other trade barriers; our ability to obtain or retain government authorization to export certain of our products or technology; risks related to the loss of, or a significant reduction in orders from major customers; costs of legal proceedings or potential violations of regulations; information technology failures; a decrease in the average selling prices of our products; failure to penetrate new applications and markets; development delays and consolidation trends in our industry; inability to make substantial research and development investments; delays or expenses caused by undetected defects or bugs in our products; substantial quarterly and annual fluctuations in our revenue and operating results; failure to timely develop and introduce new or enhanced products; order and shipment uncertainties; failure to accurately predict our future revenue and appropriately budget expenses; lengthy and expensive customer qualification processes; customer product plan cancellations; failure to maintain compliance with government regulations; failure to attract and retain qualified personnel; any adverse impact of rising interest rates on us, our customers, and our distributors and related demand; risks related to compliance with privacy, data protection and cybersecurity laws and regulations; risks related to conforming our products to industry standards; risks related to business acquisitions and investments; claims of intellectual property infringement; our ability to protect our intellectual property; risks related to security vulnerabilities of our products; use of open source software in our products; and failure to manage our relationships with, or negative impacts from, third parties.

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 Current Reports on Form 8-K, as well as the information to be set forth under the caption "Risk Factors" in MaxLinear's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024. All forward-looking statements are based on the estimates, projections and assumptions of management as of July 24, 2024, and MaxLinear is under no obligation (and expressly disclaims any such obligation) to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

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 gross margin, non-GAAP operating expenses, non-GAAP operating expenses as a percentage of net revenue, non-GAAP income (loss) from operations as percentage of revenue, non-GAAP interest and other expenses, non-GAAP diluted earnings (loss) per share, and non-GAAP diluted share count. These supplemental measures exclude the effects of (i) stock-based compensation expense; (ii) accruals related to our performance-based bonus plan for 2024, which we intend to settle in shares of our common stock; (iii) accruals related to our performance-based bonus plan for 2023, which we settled in shares of common stock in February 2024; (iv) amortization of purchased intangible assets; (v) research and development funded by others; (vi) acquisition and integration costs related to our acquisitions, including costs incurred related to the termination of the previously pending (now terminated) merger with Silicon Motion; (vii) impairment of intangible assets; (viii) severance and other restructuring charges; (ix) other non-recurring interest and other income (expenses), net attributable to acquisitions; and (x) non-cash income tax benefits and expenses. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP financial measures. Non-GAAP financial measures are subject to limitations, and should be read only in conjunction with the company’s consolidated financial statements prepared in accordance with GAAP. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. 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. 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 we believe 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. 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 or loss.

Performance-based equity consists of accruals related to our executive and non-executive bonus programs, and have been excluded from our non-GAAP net income or loss for all periods reported. Bonus payments for the 2023 performance periods were settled through the issuance of shares of common stock under our equity incentive plans in February 2024. We currently expect that bonus awards under our fiscal 2024 program will be settled in common stock in the first quarter of fiscal 2025.

Expenses incurred in relation to acquisitions include amortization of purchased intangible assets, acquisition and integration costs primarily consisting of professional and consulting fees, including costs incurred related to the termination of the previously pending (now terminated) merger with Silicon Motion; and accretion of discount on contingent consideration to interest expense.

Research and development funded by others represents proceeds received under contracts for jointly funded R&D projects to develop technology that may be commercialized into a product in the future. Initially such proceeds may not yet be recognized in GAAP results if, pursuant to contract terms, the Company may be required to repay all or a portion of the funds provided by the other party under certain conditions. Management believes it is not probable that it will trigger such conditions. Once such conditions have been resolved, the proceeds are recognized in GAAP results, and accordingly, reversed from non-GAAP results.

Impairment losses are related to abandonment of acquired or purchased intangible assets.

Restructuring charges incurred are related to our restructuring plans which eliminate redundancies and primarily include severance and restructuring costs related to impairment of leased right-of-use assets or from exiting certain facilities.

Income tax benefits and expense adjustments are those that do not affect cash income taxes payable.

Reconciliations of non-GAAP measures for the historic periods disclosed in this press release appear below. Because of the inherent uncertainty associated with our ability to project future charges, we are also unable to predict their probable significance, particularly related to stock-based compensation and its related tax effects as well as potential impairments, a quantitative reconciliation is not available without unreasonable efforts and accordingly, in reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, we have not provided a reconciliation for non-GAAP guidance provided for the third quarter 2024.

About MaxLinear, Inc.

MaxLinear, Inc. (Nasdaq:MXL) is a leading provider of radio frequency (RF), analog, digital and mixed-signal integrated circuits for access and connectivity, wired and wireless infrastructure, and industrial and multi-market applications. MaxLinear is headquartered in Carlsbad, California. For more information, please visit www.maxlinear.com.

MXL is MaxLinear’s registered trademark. Other trademarks appearing herein are the property of their respective owners.

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

 

Three Months Ended

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

Net revenue

$

91,990

 

 

$

95,269

 

 

$

183,938

 

Cost of net revenue

 

41,804

 

 

 

46,001

 

 

 

81,065

 

Gross profit

 

50,186

 

 

 

49,268

 

 

 

102,873

 

Operating expenses:

 

 

 

 

 

Research and development

 

56,541

 

 

 

64,766

 

 

 

70,657

 

Selling, general and administrative

 

33,600

 

 

 

36,488

 

 

 

33,717

 

Restructuring charges

 

865

 

 

 

22,630

 

 

 

4,436

 

Total operating expenses

 

91,006

 

 

 

123,884

 

 

 

108,810

 

Loss from operations

 

(40,820

)

 

 

(74,616

)

 

 

(5,937

)

Interest income

 

1,871

 

 

 

1,822

 

 

 

1,903

 

Interest expense

 

(2,706

)

 

 

(2,711

)

 

 

(2,591

)

Other income (expense), net

 

329

 

 

 

1,434

 

 

 

1,865

 

Total other income (expense), net

 

(506

)

 

 

545

 

 

 

1,177

 

Loss before income taxes

 

(41,326

)

 

 

(74,071

)

 

 

(4,760

)

Income tax benefit

 

(2,060

)

 

 

(1,762

)

 

 

(409

)

Net loss

$

(39,266

)

 

$

(72,309

)

 

$

(4,351

)

Net loss per share:

 

 

 

 

 

Basic

$

(0.47

)

 

$

(0.88

)

 

$

(0.05

)

Diluted

$

(0.47

)

 

$

(0.88

)

 

$

(0.05

)

Shares used to compute net loss per share:

 

 

 

 

 

Basic

 

83,477

 

 

 

82,349

 

 

 

80,446

 

Diluted

 

83,477

 

 

 

82,349

 

 

 

80,446

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

 

 

 

 

 

 

Six Months Ended

 

 

June 30, 2024

 

June 30, 2023

Net revenue

 

$

187,259

 

 

$

432,380

 

Cost of net revenue

 

 

87,805

 

 

 

189,200

 

Gross profit

 

 

99,454

 

 

 

243,180

 

Operating expenses:

 

 

 

 

Research and development

 

 

121,307

 

 

 

137,948

 

Selling, general and administrative

 

 

70,088

 

 

 

72,370

 

Impairment losses

 

 

 

 

 

2,438

 

Restructuring charges

 

 

23,495

 

 

 

9,084

 

Total operating expenses

 

 

214,890

 

 

 

221,840

 

Income (loss) from operations

 

 

(115,436

)

 

 

21,340

 

Interest income

 

 

3,693

 

 

 

2,536

 

Interest expense

 

 

(5,417

)

 

 

(5,078

)

Other income (expense), net

 

 

1,763

 

 

 

1,541

 

Total other income (expense), net

 

 

39

 

 

 

(1,001

)

Income (loss) before income taxes

 

 

(115,397

)

 

 

20,339

 

Income tax provision (benefit)

 

 

(3,822

)

 

 

15,157

 

Net income (loss)

 

$

(111,575

)

 

$

5,182

 

Net income (loss) per share:

 

 

 

 

Basic

 

$

(1.35

)

 

$

0.06

 

Diluted

 

$

(1.35

)

 

$

0.06

 

Shares used to compute net income (loss) per share:

 

 

 

 

Basic

 

 

82,913

 

 

 

79,961

 

Diluted

 

 

82,913

 

 

 

81,520

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

Three Months Ended

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

Operating Activities

 

 

 

 

 

Net loss

$

(39,266

)

 

$

(72,309

)

 

$

(4,351

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

Amortization and depreciation

 

13,600

 

 

 

16,684

 

 

 

18,707

 

Amortization of debt issuance costs and accretion of discount on debt and leases

 

665

 

 

 

688

 

 

 

625

 

Stock-based compensation

 

17,359

 

 

 

17,061

 

 

 

17,197

 

Deferred income taxes

 

(2,053

)

 

 

(2,685

)

 

 

758

 

Loss on disposal of property and equipment

 

55

 

 

 

390

 

 

 

2,001

 

Unrealized holding gain on investments

 

 

 

 

 

 

 

(1,807

)

Impairment of leased right-of-use assets

 

700

 

 

 

2,038

 

 

 

 

(Gain) loss on extinguishment of lease liabilities

 

16

 

 

 

(569

)

 

 

 

Gain on foreign currency and other

 

(398

)

 

 

(968

)

 

 

(209

)

Excess tax benefits on stock based awards

 

(152

)

 

 

(1,367

)

 

 

(791

)

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable, net

 

41,290

 

 

 

44,389

 

 

 

33,098

 

Inventory

 

1,387

 

 

 

3,783

 

 

 

23,433

 

Prepaid expenses and other assets

 

1,281

 

 

 

(2,044

)

 

 

(1,314

)

Accounts payable, accrued expenses and other current liabilities

 

(24,280

)

 

 

12,009

 

 

 

(26,378

)

Accrued compensation

 

(5,855

)

 

 

8,707

 

 

 

(3,348

)

Accrued price protection liability

 

(3,603

)

 

 

(6,451

)

 

 

(23,164

)

Lease liabilities

 

(2,540

)

 

 

(2,505

)

 

 

(2,914

)

Other long-term liabilities

 

(902

)

 

 

(881

)

 

 

(965

)

Net cash provided by (used in) operating activities

 

(2,696

)

 

 

15,970

 

 

 

30,578

 

Investing Activities

 

 

 

 

 

Purchases of property and equipment

 

(3,013

)

 

 

(8,342

)

 

 

(5,037

)

Purchases of intangible assets

 

(2,775

)

 

 

(368

)

 

 

(4,894

)

Cash used in acquisitions, net of cash acquired

 

 

 

 

 

 

 

(2,719

)

Net cash used in investing activities

 

(5,788

)

 

 

(8,710

)

 

 

(12,650

)

Financing Activities

 

 

 

 

 

Net proceeds from issuance of common stock

 

1,579

 

 

 

 

 

 

3,073

 

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

 

447

 

 

 

(2,103

)

 

 

(2,965

)

Net cash provided by (used in) financing activities

 

2,026

 

 

 

(2,103

)

 

 

108

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(335

)

 

 

(583

)

 

 

(1,229

)

Increase (decrease) in cash, cash equivalents and restricted cash

 

(6,793

)

 

 

4,574

 

 

 

16,807

 

Cash, cash equivalents and restricted cash at beginning of period

 

192,930

 

 

 

188,356

 

 

 

208,836

 

Cash, cash equivalents and restricted cash at end of period

$

186,137

 

 

$

192,930

 

 

$

225,643

 

MAXLINEAR, INC.

UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

 

 

 

 

Six Months Ended

 

 

June 30, 2024

 

June 30, 2023

Operating Activities

 

 

 

 

Net income (loss)

 

$

(111,575

)

 

$

5,182

 

Adjustments to reconcile net income (loss) to cash provided by operating activities:

 

 

 

 

Amortization and depreciation

 

 

30,284

 

 

 

37,909

 

Impairment losses

 

 

 

 

 

2,438

 

Amortization of debt issuance costs and accretion of discount on debt and leases

 

 

1,353

 

 

 

1,173

 

Stock-based compensation

 

 

34,420

 

 

 

33,645

 

Deferred income taxes

 

 

(4,738

)

 

 

8,886

 

Loss on disposal of property and equipment

 

 

445

 

 

 

2,041

 

Unrealized holding gain on investments

 

 

 

 

 

(1,959

)

Impairment of leased right-of-use assets

 

 

2,738

 

 

 

 

Gain on extinguishment of lease liabilities

 

 

(553

)

 

 

 

(Gain) loss on foreign currency

 

 

(1,366

)

 

 

153

 

Excess tax benefits on stock-based awards

 

 

(1,519

)

 

 

(1,298

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable, net

 

 

85,679

 

 

 

16,167

 

Inventory

 

 

5,170

 

 

 

34,392

 

Prepaid expenses and other assets

 

 

(763

)

 

 

(5,652

)

Accounts payable, accrued expenses and other current liabilities

 

 

(12,271

)

 

 

(27,264

)

Accrued compensation

 

 

2,852

 

 

 

3,862

 

Accrued price protection liability

 

 

(10,054

)

 

 

(33,041

)

Lease liabilities

 

 

(5,045

)

 

 

(6,009

)

Other long-term liabilities

 

 

(1,783

)

 

 

2,112

 

Net cash provided by operating activities

 

 

13,274

 

 

 

72,737

 

Investing Activities

 

 

 

 

Purchases of property and equipment

 

 

(11,355

)

 

 

(10,253

)

Purchases of intangible assets

 

 

(3,143

)

 

 

(5,524

)

Cash used in acquisitions, net of cash acquired

 

 

 

 

 

(12,384

)

Net cash used in investing activities

 

 

(14,498

)

 

 

(28,161

)

Financing Activities

 

 

 

 

Net proceeds from issuance of common stock

 

 

1,579

 

 

 

3,076

 

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

 

 

(1,656

)

 

 

(9,138

)

Net cash used in financing activities

 

 

(77

)

 

 

(6,062

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

(918

)

 

 

(1,228

)

Increase (decrease) in cash, cash equivalents and restricted cash

 

 

(2,219

)

 

 

37,286

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

188,356

 

 

 

188,357

 

Cash, cash equivalents and restricted cash at end of period

 

$

186,137

 

 

$

225,643

 

MAXLINEAR, INC.

UNAUDITED GAAP CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

185,108

 

$

191,882

 

$

224,579

Short-term restricted cash

 

1,006

 

 

 

1,028

 

 

 

1,042

 

Short-term investments

 

 

 

 

 

 

 

20,488

 

Accounts receivable, net

 

84,940

 

 

 

126,230

 

 

 

155,834

 

Inventory

 

94,738

 

 

 

96,125

 

 

 

126,152

 

Prepaid expenses and other current assets

 

31,789

 

 

 

29,414

 

 

 

26,396

 

Total current assets

 

397,581

 

 

 

444,679

 

 

 

554,491

 

Long-term restricted cash

 

23

 

 

 

20

 

 

 

22

 

Property and equipment, net

 

65,422

 

 

 

68,338

 

 

 

73,845

 

Leased right-of-use assets

 

24,883

 

 

 

27,468

 

 

 

35,112

 

Intangible assets, net

 

61,786

 

 

 

64,939

 

 

 

91,203

 

Goodwill

 

318,588

 

 

 

318,588

 

 

 

318,456

 

Deferred tax assets

 

74,228

 

 

 

72,176

 

 

 

56,757

 

Other long-term assets

 

30,686

 

 

 

34,417

 

 

 

31,594

 

Total assets

$

973,197

 

 

$

1,030,625

 

 

$

1,161,480

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities

$

190,277

 

 

$

223,854

 

 

$

241,729

 

Long-term lease liabilities

 

21,522

 

 

 

23,897

 

 

 

30,712

 

Long-term debt

 

122,684

 

 

 

122,529

 

 

 

122,064

 

Other long-term liabilities

 

21,459

 

 

 

22,362

 

 

 

20,928

 

Stockholders’ equity

 

617,255

 

 

 

637,983

 

 

 

746,047

 

Total liabilities and stockholders’ equity

$

973,197

 

 

$

1,030,625

 

 

$

1,161,480

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

 

Three Months Ended

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

GAAP gross profit

$

50,186

 

 

$

49,268

 

 

$

102,873

 

Stock-based compensation

 

173

 

 

 

181

 

 

 

246

 

Performance based equity

 

(37

)

 

 

72

 

 

 

(16

)

Amortization of purchased intangible assets

 

5,089

 

 

 

8,221

 

 

 

9,117

 

Non-GAAP gross profit

 

55,411

 

 

 

57,742

 

 

 

112,220

 

 

 

 

 

 

 

GAAP R&D expenses

 

56,541

 

 

 

64,766

 

 

 

70,657

 

Stock-based compensation

 

(10,088

)

 

 

(10,441

)

 

 

(12,237

)

Performance based equity

 

1,789

 

 

 

(4,929

)

 

 

273

 

Research and development funded by others

 

 

 

 

(1,000

)

 

 

(1,000

)

Non-GAAP R&D expenses

 

48,242

 

 

 

48,396

 

 

 

57,693

 

 

 

 

 

 

 

GAAP SG&A expenses

 

33,600

 

 

 

36,488

 

 

 

33,717

 

Stock-based compensation

 

(7,097

)

 

 

(6,439

)

 

 

(4,713

)

Performance based equity

 

722

 

 

 

(2,427

)

 

 

193

 

Amortization of purchased intangible assets

 

(592

)

 

 

(591

)

 

 

(709

)

Acquisition and integration costs

 

(102

)

 

 

(664

)

 

 

(3,714

)

Non-GAAP SG&A expenses

 

26,531

 

 

 

26,367

 

 

 

24,774

 

 

 

 

 

 

 

GAAP restructuring expenses

 

865

 

 

 

22,630

 

 

 

4,436

 

Restructuring charges

 

(865

)

 

 

(22,630

)

 

 

(4,436

)

Non-GAAP restructuring expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP loss from operations

 

(40,820

)

 

 

(74,616

)

 

 

(5,937

)

Total non-GAAP adjustments

 

21,458

 

 

 

57,595

 

 

 

35,690

 

Non-GAAP income (loss) from operations

 

(19,362

)

 

 

(17,021

)

 

 

29,753

 

 

 

 

 

 

 

GAAP interest and other income (expense), net

 

(506

)

 

 

545

 

 

 

1,177

 

Non-recurring interest and other income (expense), net

 

65

 

 

 

73

 

 

 

68

 

Non-GAAP interest and other income (expense), net

 

(441

)

 

 

618

 

 

 

1,245

 

 

 

 

 

 

 

GAAP loss before income taxes

 

(41,326

)

 

 

(74,071

)

 

 

(4,760

)

Total non-GAAP adjustments

 

21,523

 

 

 

57,668

 

 

 

35,758

 

Non-GAAP income (loss) before income taxes

 

(19,803

)

 

 

(16,403

)

 

 

30,998

 

 

 

 

 

 

 

GAAP income tax benefit

 

(2,060

)

 

 

(1,762

)

 

 

(409

)

Adjustment for non-cash tax benefits/expenses

 

3,205

 

 

 

2,762

 

 

 

3,508

 

Non-GAAP income tax provision

 

1,145

 

 

 

1,000

 

 

 

3,099

 

 

 

 

 

 

 

GAAP net loss

 

(39,266

)

 

 

(72,309

)

 

 

(4,351

)

Total non-GAAP adjustments before income taxes

 

21,523

 

 

 

57,668

 

 

 

35,758

 

Less: total tax adjustments

 

3,205

 

 

 

2,762

 

 

 

3,508

 

Non-GAAP net income (loss)

$

(20,948

)

 

$

(17,403

)

 

$

27,899

 

 

 

 

 

 

 

Shares used in computing GAAP and non-GAAP basic net income (loss) per share

 

83,477

 

 

 

82,349

 

 

 

80,446

 

Shares used in computing GAAP diluted net loss per share

 

83,477

 

 

 

82,349

 

 

 

80,446

 

Dilutive common stock equivalents

 

 

 

 

 

 

 

1,252

 

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

 

83,477

 

 

 

82,349

 

 

 

81,698

 

Non-GAAP basic net income (loss) per share

$

(0.25

)

 

$

(0.21

)

 

$

0.35

 

Non-GAAP diluted net income (loss) per share

$

(0.25

)

 

$

(0.21

)

 

$

0.34

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(in thousands, except per share data)

 

 

 

 

 

Six months ended

 

June 30, 2024

 

June 30, 2023

GAAP gross profit

$

99,454

 

 

$

243,180

 

Stock-based compensation

 

354

 

 

 

456

 

Performance based equity

 

35

 

 

 

75

 

Amortization of purchased intangible assets

 

13,310

 

 

 

18,438

 

Non-GAAP gross profit

 

113,153

 

 

 

262,149

 

 

 

 

 

GAAP R&D expenses

 

121,307

 

 

 

137,948

 

Stock-based compensation

 

(20,529

)

 

 

(23,692

)

Performance based equity

 

(3,140

)

 

 

(3,362

)

Research and development funded by others

 

(1,000

)

 

 

(2,000

)

Non-GAAP R&D expenses

 

96,638

 

 

 

108,894

 

 

 

 

 

GAAP SG&A expenses

 

70,088

 

 

 

72,370

 

Stock-based compensation

 

(13,536

)

 

 

(9,497

)

Performance based equity

 

(1,705

)

 

 

(1,551

)

Amortization of purchased intangible assets

 

(1,183

)

 

 

(1,637

)

Acquisition and integration costs

 

(766

)

 

 

(5,315

)

Non-GAAP SG&A expenses

 

52,898

 

 

 

54,370

 

 

 

 

 

GAAP impairment losses

 

 

 

 

2,438

 

Impairment losses

 

 

 

 

(2,438

)

Non-GAAP impairment losses

 

 

 

 

 

 

 

 

 

GAAP restructuring expenses

 

23,495

 

 

 

9,084

 

Restructuring charges

 

(23,495

)

 

 

(9,084

)

Non-GAAP restructuring expenses

 

 

 

 

 

 

 

 

 

GAAP income (loss) from operations

 

(115,436

)

 

 

21,340

 

Total non-GAAP adjustments

 

79,053

 

 

 

77,545

 

Non-GAAP income (loss) from operations

 

(36,383

)

 

 

98,885

 

 

 

 

 

GAAP interest and other income (expense), net

 

39

 

 

 

(1,001

)

Non-recurring interest and other income (expense), net

 

138

 

 

 

179

 

Non-GAAP interest and other income (expense), net

 

177

 

 

 

(822

)

 

 

 

 

GAAP income (loss) before income taxes

 

(115,397

)

 

 

20,339

 

Total non-GAAP adjustments

 

79,191

 

 

 

77,724

 

Non-GAAP income (loss) before income taxes

 

(36,206

)

 

 

98,063

 

 

 

 

 

GAAP income tax provision (benefit)

 

(3,822

)

 

 

15,157

 

Adjustment for non-cash tax benefits/expenses

 

5,967

 

 

 

(5,351

)

Non-GAAP income tax provision

 

2,145

 

 

 

9,806

 

 

 

 

 

GAAP net income (loss)

 

(111,575

)

 

 

5,182

 

Total non-GAAP adjustments before income taxes

 

79,191

 

 

 

77,724

 

Less: total tax adjustments

 

5,967

 

 

 

(5,351

)

Non-GAAP net income (loss)

$

(38,351

)

 

$

88,257

 

 

 

 

 

Shares used in computing GAAP and non-GAAP basic net income (loss) per share

 

82,913

 

 

 

79,961

 

Shares used in computing GAAP diluted net income (loss) per share

 

82,913

 

 

 

81,520

 

Dilutive common stock equivalents

 

 

 

 

 

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

 

82,913

 

 

 

81,520

 

Non-GAAP basic net income (loss) per share

$

(0.46

)

 

$

1.10

 

Non-GAAP diluted net income (loss) per share

$

(0.46

)

 

$

1.08

 

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

AS A PERCENTAGE OF NET REVENUE

 

 

Three Months Ended

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

GAAP gross margin

54.6

%

 

51.7

%

 

55.9

%

Stock-based compensation

0.2

%

 

0.2

%

 

0.1

%

Performance based equity

%

 

0.1

%

 

%

Amortization of purchased intangible assets

5.5

%

 

8.6

%

 

5.0

%

Non-GAAP gross margin

60.2

%

 

60.6

%

 

61.0

%

 

 

 

 

 

 

GAAP R&D expenses

61.5

%

 

68.0

%

 

38.4

%

Stock-based compensation

(11.0

)%

 

(11.0

)%

 

(6.7

)%

Performance based equity

1.9

%

 

(5.2

)%

 

0.2

%

Research and development funded by others

%

 

(1.1

)%

 

(0.5

)%

Non-GAAP R&D expenses

52.4

%

 

50.8

%

 

31.4

%

 

 

 

 

 

 

GAAP SG&A expenses

36.5

%

 

38.3

%

 

18.3

%

Stock-based compensation

(7.7

)%

 

(6.8

)%

 

(2.6

)%

Performance based equity

0.8

%

 

(2.6

)%

 

0.1

%

Amortization of purchased intangible assets

(0.6

)%

 

(0.6

)%

 

(0.4

)%

Acquisition and integration costs

(0.1

)%

 

(0.7

)%

 

(2.0

)%

Non-GAAP SG&A expenses

28.8

%

 

27.7

%

 

13.5

%

 

 

 

 

 

 

GAAP restructuring expenses

0.9

%

 

23.8

%

 

2.4

%

Restructuring charges

(0.9

)%

 

(23.8

)%

 

(2.4

)%

Non-GAAP restructuring expenses

%

 

%

 

%

 

 

 

 

 

 

GAAP loss from operations

(44.4

)%

 

(78.3

)%

 

(3.2

)%

Total non-GAAP adjustments

23.3

%

 

60.5

%

 

19.4

%

Non-GAAP income (loss) from operations

(21.1

)%

 

(17.9

)%

 

16.2

%

 

 

 

 

 

 

GAAP interest and other income (expense), net

(0.6

)%

 

0.6

%

 

0.6

%

Non-recurring interest and other income (expense), net

0.1

%

 

0.1

%

 

%

Non-GAAP interest and other income (expense), net

(0.5

)%

 

0.7

%

 

0.6

%

 

 

 

 

 

 

GAAP loss before income taxes

(44.9

)%

 

(77.8

)%

 

(2.6

)%

Total non-GAAP adjustments before income taxes

23.4

%

 

60.5

%

 

19.4

%

Non-GAAP income (loss) before income taxes

(21.5

)%

 

(17.2

)%

 

16.9

%

 

 

 

 

 

 

GAAP income tax benefit

(2.2

)%

 

(1.9

)%

 

(0.2

)%

Adjustment for non-cash tax benefits/expenses

3.5

%

 

2.9

%

 

1.9

%

Non-GAAP income tax provision

1.2

%

 

1.1

%

 

1.7

%

 

 

 

 

 

 

GAAP net loss

(42.7

)%

 

(75.9

)%

 

(2.4

)%

Total non-GAAP adjustments before income taxes

23.4

%

 

60.5

%

 

19.4

%

Less: total tax adjustments

3.5

%

 

2.9

%

 

1.9

%

Non-GAAP net income (loss)

(22.8

)%

 

(18.3

)%

 

15.2

%

MAXLINEAR, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

AS A PERCENTAGE OF NET REVENUE

 

 

 

 

 

Six months ended

 

June 30, 2024

 

June 30, 2023

GAAP gross margin

53.1

%

 

56.2

%

Stock-based compensation

0.2

%

 

0.1

%

Performance based equity

%

 

%

Amortization of purchased intangible assets

7.1

%

 

4.3

%

Non-GAAP gross margin

60.4

%

 

60.6

%

 

 

 

 

GAAP R&D expenses

64.8

%

 

31.9

%

Stock-based compensation

(11.0

)%

 

(5.5

)%

Performance based equity

(1.7

)%

 

(0.8

)%

Research and development funded by others

(0.5

)%

 

(0.5

)%

Non-GAAP R&D expenses

51.6

%

 

25.2

%

 

 

 

 

GAAP SG&A expenses

37.4

%

 

16.7

%

Stock-based compensation

(7.2

)%

 

(2.2

)%

Performance based equity

(0.9

)%

 

(0.4

)%

Amortization of purchased intangible assets

(0.6

)%

 

(0.4

)%

Acquisition and integration costs

(0.4

)%

 

(1.2

)%

Non-GAAP SG&A expenses

28.3

%

 

12.6

%

 

 

 

 

GAAP impairment losses

%

 

0.6

%

Impairment losses

%

 

(0.6

)%

Non-GAAP impairment losses

%

 

%

 

 

 

 

GAAP restructuring expenses

12.6

%

 

2.1

%

Restructuring charges

(12.6

)%

 

(2.1

)%

Non-GAAP restructuring expenses

%

 

%

 

 

 

 

GAAP income (loss) from operations

(61.7

)%

 

4.9

%

Total non-GAAP adjustments

42.2

%

 

17.9

%

Non-GAAP income (loss) from operations

(19.4

)%

 

22.9

%

 

 

 

 

GAAP interest and other income (expense), net

%

 

(0.2

)%

Non-recurring interest and other income (expense), net

0.1

%

 

%

Non-GAAP interest and other income (expense), net

0.1

%

 

(0.2

)%

 

 

 

 

GAAP income (loss) before income taxes

(61.6

)%

 

4.7

%

Total non-GAAP adjustments

42.3

%

 

18.0

%

Non-GAAP income (loss) before income taxes

(19.3

)%

 

22.7

%

 

 

 

 

GAAP income tax provision (benefit)

(2.0

)%

 

3.5

%

Adjustment for non-cash tax benefits/expenses

3.2

%

 

(1.2

)%

Non-GAAP income tax provision

1.2

%

 

2.3

%

 

 

 

 

GAAP net income (loss)

(59.6

)%

 

1.2

%

Total non-GAAP adjustments before income taxes

42.3

%

 

18.0

%

Less: total tax adjustments

3.2

%

 

(1.2

)%

Non-GAAP net income (loss)

(20.5

)%

 

20.4

%

 

MaxLinear, Inc. Investor Relations Contact:

Leslie Green

Tel: +1 650-312-9060

lgreen@maxlinear.com

Source: MaxLinear, Inc.

FAQ

What were MaxLinear's Q2 2024 net revenues?

MaxLinear reported Q2 2024 net revenues of $92.0 million.

How did MaxLinear's Q2 2024 GAAP gross margin compare to the previous quarter?

MaxLinear's Q2 2024 GAAP gross margin improved to 54.6%, up from 51.7% in the prior quarter.

What was MaxLinear's GAAP loss per share in Q2 2024?

MaxLinear's GAAP diluted loss per share in Q2 2024 was $0.47.

What are MaxLinear's revenue expectations for Q3 2024?

MaxLinear expects Q3 2024 revenues between $70 million and $90 million.

How did MaxLinear's Q2 2024 net cash flow from operations compare to the previous quarter?

MaxLinear's Q2 2024 net cash flow used in operating activities was $2.7 million, compared to positive $16.0 million in the previous quarter.

MaxLinear, Inc.

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