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0001288469false00012884692022-07-272022-07-270001288469exch:XNGS2022-07-272022-07-27

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

CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 27, 2022
MaxLinear, Inc.
(Exact name of registrant as specified in its charter)
Delaware 001-34666 14-1896129
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
5966 La Place Court, Suite 100, Carlsbad, California 92008
(Address of principal executive offices) (Zip Code)
(760) 692-0711
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock MXL The NASDAQ Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 2.02. Results of Operations and Financial Condition.
On July 27, 2022, MaxLinear, Inc. issued a press release announcing its unaudited financial results for the second quarter ended June 30, 2022 and also published related earnings presentation slides. Copies of the press release and presentation slides are furnished as Exhibits 99.1 and 99.2 to this Current Report on Form 8-K, respectively, and are incorporated herein by reference.
The information in this Current Report on Form 8-K and the exhibits attached hereto are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Current Report on Form 8-K shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d)    Exhibits
Exhibit Description
99.1
99.2
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: July 27, 2022 MAXLINEAR, INC.
(Registrant)
By: /s/ Steven G. Litchfield
Steven G. Litchfield
Chief Financial Officer and Chief Corporate Strategy Officer
(Principal Financial Officer)

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EX-99.1 2 a2022630exhibit991.htm EX-99.1 Document

Exhibit 99.1
mxla01a01a42.jpg
FOR IMMEDIATE RELEASE

MaxLinear, Inc. Announces Second Quarter 2022 Financial Results

•Record net revenue of $280.0 million, up 6% sequentially and up 36% year-over-year
•GAAP gross margin 58.7% and non-GAAP gross margin 62.3%, up 10 bps and -50 bps from previous quarter, respectively

Carlsbad, Calif. – July 27, 2022 – MaxLinear, Inc. (Nasdaq: MXL), a leading provider of RF, analog, digital and mixed-signal integrated circuits, today announced financial results for the second quarter ended June 30, 2022.

Second Quarter Financial Highlights
GAAP basis:
•Net revenue was $280.0 million, up 6% sequentially and up 36% year-over-year.
•GAAP gross margin was 58.7%, compared to 58.6% in the prior quarter, and 54.8% in the year-ago quarter.
•GAAP operating expenses were $125.3 million in the second quarter 2022, or 45% of net revenue, compared to $106.5 million in the prior quarter, or 40% of net revenue, and $110.3 million in the year-ago quarter, or 54% of net revenue.
•GAAP income from operations was 14% of revenue, compared to income from operations of 18% in the prior quarter, and income from operations of 1% in the year-ago quarter.
•Net cash flow provided by operating activities was $123.4 million, compared to net cash flow provided by operating activities of $134.2 million in the prior quarter, and net cash flow provided by operating activities of $7.9 million in the year-ago quarter.
•GAAP diluted earnings per share was $0.40, compared to diluted earnings per share of $0.42 in the prior quarter, and diluted earnings per share of $0.01 in the year-ago quarter.
Non-GAAP basis:
•Non-GAAP gross margin was 62.3%. This compares to 62.8% in the prior quarter, and 60.2% in the year-ago quarter.
•Non-GAAP operating expenses were $84.3 million, or 30% of revenue, compared to $77.3 million or 29% of revenue in the prior quarter, and $75.2 million or 37% of revenue in the year-ago quarter.
•Non-GAAP income from operations was 32% of revenue, compared to 33% in the prior quarter, and 24% in the year-ago quarter.
•Non-GAAP diluted earnings per share was $1.11, compared to diluted earnings per share of $1.00 in the prior quarter, and diluted earnings per share of $0.53 in the year-ago quarter.

Management Commentary

“In the second quarter, revenue was up 6% sequentially and up 36% year-over-year, as a result of strong demand across all our product portfolio. In particular, fiber gateway access, Wi-Fi, and wireless infrastructure continue to drive solid revenue expansion. Our connectivity category was up nearly 80% year-over-year, driven by our differentiated Wi-Fi6 feature set, and we are on a firm trajectory to deliver at least $200 million of Wi-Fi revenue in 2023. We saw strong cash flow from operations of approximately $123.4 million in Q2 and non-GAAP gross margin of 62.3%. We are excited about our pending merger with Silicon Motion, the future growth opportunities of our comprehensive product portfolio, and the accelerating pace of new product launches,” commented Kishore Seendripu, Ph.D., Chairman and CEO.

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Third Quarter 2022 Business Outlook

The company expects revenue in the third quarter 2022 to be approximately $280 million to $290 million. The Company also estimates the following:
•GAAP gross margin of approximately 57.5% to 60.5%;
•Non-GAAP gross margin of approximately 60.5% to 63.5%;
•GAAP operating expenses of approximately $115 million to $121 million;
•Non-GAAP operating expenses of approximately $81 million to $87 million; and
•GAAP and non-GAAP interest and other expense of approximately $3.5 million.
Webcast and Conference Call
MaxLinear will host its second quarter financial results conference call today, July 27, 2022 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 11, 2022. A replay of the conference call will also be available until August 11, 2022 by dialing US toll free: 1-877-660-6853 / International: 1-201-612-7415 and Conference ID#: 13731843.
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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 specifically our current guidance for third quarter 2022 revenue, gross margins, operating expenses, and interest and other expenses, as well as statements with respect to confidence in the Company’s outlook for third quarter 2022) and statements concerning expectations of potential developments in our target markets, including (without limitation) management’s views with respect to the prospects for and trends in our broadband, connectivity and infrastructure markets, and in particular, expectations concerning the development of our Wi-Fi market, including the Company’s ability to continue to increase market share and drive future growth opportunities in such 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 and our future financial performance and operating results forecasts generally. 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. 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 proposed merger with Silicon Motion; intense competition in our industry; increasing supply chain risks within our industry, including increases in shipping and material costs and substantial shipping delays resulting in extended lead-times; inflation trends in our supply chain and in the global economy generally; uncertainties concerning the outcome of global trade negotiations, export control limitations, and heightened geopolitical risks generally; our dependence on a limited number of customers for a substantial portion of our revenues; potential decreases in average selling prices for our products; 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 uncertainties arising from continued consolidation among cable television and satellite operators in our target markets and continued consolidation among competitors within the semiconductor industry generally; uncertainties concerning how end user markets for our products will develop, including in particular markets we have entered more recently such as broadband, Wi-Fi and 5G wireless and fiber-optic data center high-speed interconnect infrastructure markets but also existing markets; the impact of our indebtedness and limitations on our operating flexibility based on financial and operating covenants in the applicable term loan agreements, including (without limitation) debt covenant restrictions that may limit our ability to obtain additional financing, granting liens, undergoing certain fundamental changes, or making investments or certain restricted payments, and selling assets; risks relating to intellectual property protection and the prevalence of intellectual property litigation in our industry; our reliance on a limited number of third party manufacturers; the impact of the COVID-19 pandemic; 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 Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 2, 2022, and 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 quarter ended June 30, 2022. All forward-looking statements are based on the estimates, projections and assumptions of management as of July 27, 2022, 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, operating expenses, operating expenses as a percentage of revenue, income from operations as percentage of revenue, and diluted earnings per share. These supplemental measures exclude the effects of (i) stock-based compensation expense; (ii) accruals related to our performance based bonus plan for 2022, which we currently intend to settle in shares of our common stock; (iii) accruals related to our performance-based bonus plan for 2021, which we settled in shares of common stock in 2022; (iv) amortization of purchased intangible assets; (v) research and development funded by others; (vi) acquisition and integration costs related to our acquisitions; (vii) professional fees and settlement costs related to IP and commercial litigation matters; (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. 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.
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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. 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.
Bonuses under our executive and non-executive bonus programs have been excluded from our non-GAAP net income for all periods reported. Bonus payments for the 2021 performance periods were settled through the issuance of shares of common stock under our equity incentive plans in February 2022. We currently expect that bonus awards under our fiscal 2022 program will be settled in common stock in the first quarter of fiscal 2023.
Expenses incurred in relation to acquisitions include amortization of purchased intangible assets, acquisition and integration costs primarily consisting of professional and consulting fees, and accretion of discount on deferred purchase price payments 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.
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.
Expenses incurred in relation to our intellectual property and commercial litigation include professional fees incurred.
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, 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 we have not provided a reconciliation for non-GAAP guidance provided for the third quarter 2022.
Additional Information and Where to Find It
This press release makes reference to a proposed business combination involving MaxLinear and Silicon Motion. In connection with the proposed transaction, MaxLinear has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 (File No. 333-265645), including a proxy statement of Silicon Motion and a prospectus of MaxLinear. The Registration Statement on Form S-4 was declared effective by the SEC on July 13, 2022 and the proxy statement/prospectus was first mailed to the shareholders of Silicon Motion on July 20, 2022, seeking their approval of their transaction-related proposals.
This press release does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities or a solicitation of any vote or approval nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
MAXLINEAR AND SILICON MOTION URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4, WHICH WILL BE PROVIDED TO SILICON MOTION SECURITY HOLDERS AND OTHER DOCUMENTS PROVIDED TO SILICON MOTION SECURITY HOLDERS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
4


Investors and security holders are able to obtain the Registration Statement on Form S-4 free of charge at the SEC’s website, www.sec.gov. Copies of documents filed with the SEC by MaxLinear (when they become available) may be obtained free of charge on MaxLinear’s website at www.maxlinear.com or by contacting MaxLinear’s Investor Relations Department at IR@MaxLinear.com. Copies of documents filed or furnished by Silicon Motion (when they become available) may be obtained free of charge on Silicon Motion’s website at https://www.siliconmotion.com or by contacting Silicon Motion’s Stock Affair Specialist.
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. Investor Relations Contact:
Leslie Green
Tel: +1 650-312-9060
lgreen@maxlinear.com

5


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

Three Months Ended
June 30, 2022 March 31, 2022 June 30, 2021
Net revenue $ 280,009  $ 263,927  $ 205,376 
Cost of net revenue 115,658  109,337  92,833 
Gross profit 164,351  154,590  112,543 
Operating expenses:
Research and development 80,395  65,886  74,416 
Selling, general and administrative 44,487  40,577  35,885 
Restructuring charges 462  —  38 
Total operating expenses 125,344  106,463  110,339 
Income from operations 39,007  48,127  2,204 
Interest income 82  31  18 
Interest expense (2,416) (2,349) (3,741)
Loss on extinguishment of debt —  —  (5,221)
Other income (expense), net 7,179  (770) (537)
Total other income (expense), net 4,845  (3,088) (9,481)
Income (loss) before income taxes 43,852  45,039  (7,277)
Income tax provision (benefit) 11,886  11,453  (8,010)
Net income $ 31,966  $ 33,586  $ 733 
Net income per share:
Basic $ 0.41  $ 0.44  $ 0.01 
Diluted $ 0.40  $ 0.42  $ 0.01 
Shares used to compute net income per share:
Basic 77,858  77,192  75,930 
Diluted 80,279  80,641  79,026 

6


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

Six Months Ended
June 30, 2022 June 30, 2021
Net revenue $ 543,936  $ 414,735 
Cost of net revenue 224,995  190,473 
Gross profit 318,941  224,262 
Operating expenses:
Research and development 146,281  137,582 
Selling, general and administrative 85,064  72,354 
Restructuring charges 462  2,204 
Total operating expenses 231,807  212,140 
Income from operations 87,134  12,122 
Interest income 113  18 
Interest expense (4,765) (7,947)
Loss on extinguishment of debt —  (5,221)
Other income (expense), net 6,409  (641)
Total other income (expense), net 1,757  (13,791)
Income (loss) before income taxes 88,891  (1,669)
Income tax provision (benefit) 23,339  (6,204)
Net income $ 65,552  $ 4,535 
Net income per share:
Basic $ 0.85  $ 0.06 
Diluted $ 0.81  $ 0.06 
Shares used to compute net income per share:
Basic 77,527  75,394 
Diluted 80,462  78,657 


7


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

Three Months Ended
June 30, 2022 March 31, 2022 June 30, 2021
Operating Activities
Net income $ 31,966  $ 33,586  $ 733 
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation 19,569  23,880  21,997 
Amortization of debt issuance costs and accretion of discount on debt and leases 471  486  918 
Stock-based compensation 19,469  18,554  13,966 
Deferred income taxes 517  6,842  (6,002)
Loss on disposal of property and equipment 159  20 
Unrealized holding (gain) loss on investments (4,813) 954  — 
Impairment of leased right-of-use assets 462  —  — 
Loss on extinguishment of debt —  —  5,221 
(Gain) loss on foreign currency and other (2,359) (316) 387 
Excess tax benefits on stock based awards (2,309) (7,120) (2,822)
Changes in operating assets and liabilities:
Accounts receivable (11,000) (5,969) (47,800)
Inventory (7,390) (7,338) (6,254)
Prepaid expenses and other assets (1,675) 3,503  3,588 
Leased right-of-use assets —  —  36 
Accounts payable, accrued expenses and other current liabilities 29,669  32,952  8,652 
Accrued compensation 9,118  12,237  13,857 
Accrued price protection liability 42,822  27,975  (344)
Lease liabilities (2,210) (3,301) (2,345)
Other long-term liabilities 1,125  (2,918) 4,043 
Net cash provided by operating activities 123,437  134,166  7,851 
Investing Activities
Purchases of property and equipment (10,706) (4,800) (11,158)
Purchases of intangible assets (567) (4,637) — 
Cash used in acquisitions, net of cash acquired —  —  (7,500)
Proceeds loaned under notes receivable —  (10,000) — 
Purchases of investments (5,000) (23,325) — 
Net cash used in investing activities (16,273) (42,762) (18,658)
Financing Activities
Proceeds from the issuance of debt —  —  350,000 
Payment of debt issuance cost —  —  (4,127)
Repayment of debt (40,000) (20,000) (349,813)
Net proceeds from issuance of common stock 3,046  87  4,796 
Minimum tax withholding paid on behalf of employees for restricted stock units (3,698) (24,449) (2,663)
Repurchase of common stock (5,214) (26,297) (4,464)
Net cash used in financing activities (45,866) (70,659) (6,271)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (1,132) (230) (681)
Increase (decrease) in cash, cash equivalents and restricted cash 60,166  20,515  (17,759)
Cash, cash equivalents and restricted cash at beginning of period 152,253  131,738  149,193 
Cash, cash equivalents and restricted cash at end of period $ 212,419  $ 152,253  $ 131,434 
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MAXLINEAR, INC.
UNAUDITED GAAP CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

Six Months Ended
June 30, 2022 June 30, 2021
Operating Activities
Net income $ 65,552  $ 4,535 
Adjustments to reconcile net income to cash provided by operating activities:
Amortization and depreciation 43,449  44,322 
Amortization of debt issuance costs and accretion of discount on debt and leases 957  2,071 
Stock-based compensation 38,023  26,921 
Deferred income taxes 7,359  (5,461)
Loss on disposal of property and equipment 164  388 
Unrealized holding gain on investments (3,859) — 
Impairment of leasehold improvements —  226 
Impairment of leased right-of-use assets 462  429 
Loss on extinguishment of debt —  5,221 
(Gain) loss on foreign currency (2,675) 408 
Excess tax benefits on stock-based awards (9,429) (4,631)
Changes in operating assets and liabilities:
Accounts receivable (16,969) (67,879)
Inventory (14,728) (596)
Prepaid expenses and other assets 1,828  33,448 
Leased right-of-use assets —  72 
Accounts payable, accrued expenses and other current liabilities 62,621  6,311 
Accrued compensation 21,355  15,233 
Accrued price protection liability 70,797  6,955 
Lease liabilities (5,511) (4,347)
Other long-term liabilities (1,793) 4,497 
Net cash provided by operating activities 257,603  68,123 
Investing Activities
Purchases of property and equipment (15,506) (17,310)
Purchases of intangible assets (5,204) (1,112)
Cash used in acquisitions, net of cash acquired —  (27,500)
Proceeds loaned under notes receivable (10,000) — 
Purchases of investments (28,325) (5,000)
Net cash used in investing activities (59,035) (50,922)
Financing Activities
Proceeds from the issuance of debt —  350,000 
Payment of debt issuance cost —  (4,127)
Repayment of debt (60,000) (369,813)
Net proceeds from issuance of common stock 3,133  6,094 
Minimum tax withholding paid on behalf of employees for restricted stock units
(28,147) (10,105)
Repurchase of common stock (31,511) (7,137)
Net cash used in financing activities (116,525) (35,088)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (1,362) (713)
Increase (decrease) in cash, cash equivalents and restricted cash 80,681  (18,600)
Cash, cash equivalents and restricted cash at beginning of period 131,738  150,034 
Cash, cash equivalents and restricted cash at end of period $ 212,419  $ 131,434 
9


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

June 30, 2022 March 31, 2022 June 30, 2021
Assets
Current assets:
Cash and cash equivalents $ 211,363  $ 151,111  $ 130,312 
Short-term restricted cash 162  105  107 
Short-term investments 23,864  19,051  — 
Accounts receivable, net 137,065  125,693  135,321 
Inventory 146,431  139,041  98,502 
Prepaid expenses and other current assets 19,739  19,575  13,866 
Total current assets 538,624  454,576  378,108 
Long-term restricted cash 894  1,037  1,015 
Property and equipment, net 64,136  60,022  48,104 
Leased right-of-use assets 33,154  32,919  22,847 
Intangible assets, net 127,928  140,153  174,964 
Goodwill 306,739  306,713  302,828 
Deferred tax assets 81,762  82,326  91,526 
Other long-term assets 27,456  21,381  7,235 
Total assets $ 1,180,693  $ 1,099,127  $ 1,026,627 
Liabilities and stockholders’ equity
Current liabilities $ 316,081  $ 234,795  $ 211,789 
Long-term lease liabilities 27,838  30,208  20,445 
Long-term debt 246,450  286,298  343,022 
Other long-term liabilities 20,727  19,980  17,704 
Stockholders’ equity 569,597  527,846  433,667 
Total liabilities and stockholders’ equity $ 1,180,693  $ 1,099,127  $ 1,026,627 

10


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

Three Months Ended
June 30, 2022 March 31, 2022 June 30, 2021
GAAP gross profit $ 164,351  $ 154,590  $ 112,543 
Stock-based compensation 162  163  148 
Performance based equity 146  112  127 
Amortization of purchased intangible assets 9,820  10,811  10,743 
Non-GAAP gross profit 174,479  165,676  123,561 
GAAP R&D expenses 80,395  65,886  74,416 
Stock-based compensation (9,983) (9,676) (7,268)
Performance based equity (7,231) (5,337) (8,249)
Research and development funded by others (2,000) 2,800  (3,800)
Acquisition and integration costs —  —  (38)
Non-GAAP R&D expenses 61,181  53,673  55,061 
GAAP SG&A expenses 44,487  40,577  35,885 
Stock-based compensation (9,324) (8,715) (6,551)
Performance based equity (2,708) (2,068) (3,357)
Amortization of purchased intangible assets (2,926) (6,176) (5,816)
Acquisition and integration costs (6,369) (25)
Non-GAAP SG&A expenses 23,160  23,623  20,136 
GAAP restructuring expenses 462  —  38 
Restructuring charges (462) —  (38)
Non-GAAP restructuring expenses —  —  — 
GAAP income from operations 39,007  48,127  2,204 
Total non-GAAP adjustments 51,131  40,253  46,160 
Non-GAAP income from operations 90,138  88,380  48,364 
GAAP loss on extinguishment of debt —  —  (5,221)
Loss on extinguishment of debt —  —  5,221 
Non-GAAP loss on extinguishment of debt —  —  — 
GAAP interest and other income (expense), net 4,845  (3,088) (4,260)
Non-recurring interest and other income (expense), net 56  68  133 
Non-GAAP interest and other income (expense), net 4,901  (3,020) (4,127)
GAAP income (loss) before income taxes 43,852  45,039  (7,277)
Total non-GAAP adjustments 51,187  40,321  51,514 
Non-GAAP income before income taxes 95,039  85,360  44,237 
GAAP income tax provision (benefit) 11,886  11,453  (8,010)
Adjustment for non-cash tax benefits/expenses (6,184) (6,331) 10,665 
Non-GAAP income tax provision 5,702  5,122  2,655 
GAAP net income 31,966  33,586  733 
Total non-GAAP adjustments before income taxes 51,187  40,321  51,514 
Less: total tax adjustments (6,184) (6,331) 10,665 
Non-GAAP net income $ 89,337  $ 80,238  $ 41,582 
Shares used in computing non-GAAP basic net income per share 77,858  77,192  75,930 
Shares used in computing non-GAAP diluted net income per share 80,279  80,641  79,026 
Non-GAAP basic net income per share $ 1.15  $ 1.04  $ 0.55 
Non-GAAP diluted net income per share $ 1.11  $ 1.00  $ 0.53 
11


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

Six Months Ended
June 30, 2022 June 30, 2021
GAAP gross profit $ 318,941  $ 224,262 
Stock-based compensation 325  317 
Performance based equity 258  209 
Amortization of purchased intangible assets 20,631  21,490 
Non-GAAP gross profit 340,155  246,278 
GAAP R&D expenses 146,281  137,582 
Stock-based compensation (19,659) (14,430)
Performance based equity (12,568) (12,847)
Research and development funded by others 800  (3,800)
Acquisition and integration costs —  (130)
Non-GAAP R&D expenses 114,854  106,375 
GAAP SG&A expenses 85,064  72,354 
Stock-based compensation (18,039) (12,175)
Performance based equity (4,776) (5,247)
Amortization of purchased intangible assets (9,102) (11,886)
Acquisition and integration costs (6,364) (1,586)
IP litigation costs, net —  (11)
Non-GAAP SG&A expenses 46,783  41,449 
GAAP restructuring expenses 462  2,204 
Restructuring charges (462) (2,204)
Non-GAAP restructuring expenses —  — 
GAAP income from operations 87,134  12,122 
Total non-GAAP adjustments 91,384  86,332 
Non-GAAP income from operations 178,518  98,454 
GAAP income (loss) on extinguishment of debt —  (5,221)
Loss on extinguishment of debt —  5,221 
Non-GAAP loss on extinguishment of debt —  — 
GAAP interest and other income (expense), net 1,757  (8,570)
Non-recurring interest and other income (expense), net 124  443 
Non-GAAP interest and other income (expense), net 1,881  (8,127)
GAAP income (loss) before income taxes 88,891  (1,669)
Total non-GAAP adjustments 91,508  91,996 
Non-GAAP income before income taxes 180,399  90,327 
GAAP income tax provision (benefit) 23,339  (6,204)
Adjustment for non-cash tax benefits/expenses (12,515) 11,624 
Non-GAAP income tax provision 10,824  5,420 
GAAP net income 65,552  4,535 
Total non-GAAP adjustments before income taxes 91,508  91,996 
Less: total tax adjustments (12,515) 11,624 
Non-GAAP net income $ 169,575  $ 84,907 
Shares used in computing non-GAAP basic net income per share 77,527  75,394 
Shares used in computing non-GAAP diluted net income per share 80,462  78,657 
Non-GAAP basic net income per share $ 2.19  $ 1.13 
Non-GAAP diluted net income per share $ 2.11  $ 1.08 
12


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

Three Months Ended
June 30, 2022 March 31, 2022 June 30, 2021
GAAP gross profit 58.7  % 58.6  % 54.8  %
Stock-based compensation 0.1  % 0.1  % 0.1  %
Performance based equity 0.1  % —  % 0.1  %
Amortization of purchased intangible assets 3.5  % 4.1  % 5.2  %
Non-GAAP gross profit 62.3  % 62.8  % 60.2  %
GAAP R&D expenses 28.7  % 25.0  % 36.2  %
Stock-based compensation (3.6) % (3.7) % (3.5) %
Performance based equity (2.6) % (2.0) % (4.0) %
Research and development funded by others (0.7) % 1.1  % (1.9) %
Acquisition and integration costs —  % —  % —  %
Non-GAAP R&D expenses 21.9  % 20.3  % 26.8  %
GAAP SG&A expenses 15.9  % 15.4  % 17.5  %
Stock-based compensation (3.3) % (3.3) % (3.2) %
Performance based equity (1.0) % (0.8) % (1.6) %
Amortization of purchased intangible assets (1.0) % (2.3) % (2.8) %
Acquisition and integration costs (2.3) % —  % —  %
Non-GAAP SG&A expenses 8.3  % 9.0  % 9.8  %
GAAP restructuring expenses 0.2  % —  % —  %
Restructuring charges (0.2) % —  % —  %
Non-GAAP restructuring expenses —  % —  % —  %
GAAP income from operations 13.9  % 18.2  % 1.1  %
Total non-GAAP adjustments 18.3  % 15.3  % 22.5  %
Non-GAAP income from operations 32.2  % 33.5  % 23.6  %
GAAP loss on extinguishment of debt —  % —  % (2.5) %
Loss on extinguishment of debt —  % —  % 2.5  %
Non-GAAP loss on extinguishment of debt —  % —  % —  %
GAAP interest and other income (expense), net 1.7  % (1.2) % (2.1) %
Non-recurring interest and other income (expense), net —  % —  % 0.1  %
Non-GAAP interest and other income (expense), net 1.8  % (1.1) % (2.0) %
GAAP income (loss) before income taxes 15.7  % 17.1  % (3.5) %
Total non-GAAP adjustments before income taxes 18.3  % 15.3  % 25.1  %
Non-GAAP income before income taxes 33.9  % 32.3  % 21.5  %
GAAP income tax provision (benefit) 4.2  % 4.3  % (3.9) %
Adjustment for non-cash tax benefits/expenses (2.2) % (2.4) % 5.2  %
Non-GAAP income tax provision 2.0  % 1.9  % 1.3  %
GAAP net income 11.4  % 12.7  % 0.4  %
Total non-GAAP adjustments before income taxes 18.3  % 15.3  % 25.1  %
Less: total tax adjustments (2.2) % (2.4) % 5.2  %
Non-GAAP net income 31.9  % 30.4  % 20.3  %
13


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

Six Months Ended
June 30, 2022 June 30, 2021
GAAP gross profit 58.6  % 54.1  %
Stock-based compensation 0.1  % 0.1  %
Performance based equity 0.1  % 0.1  %
Amortization of purchased intangible assets 3.8  % 5.2  %
Non-GAAP gross profit 62.5  % 59.4  %
GAAP R&D expenses 26.9  % 33.2  %
Stock-based compensation (3.6) % (3.5) %
Performance based equity (2.3) % (3.1) %
Research and development funded by others 0.2  % (0.9) %
Acquisition and integration costs —  % —  %
Non-GAAP R&D expenses 21.1  % 25.7  %
GAAP SG&A expenses 15.6  % 17.4  %
Stock-based compensation (3.3) % (2.9) %
Performance based equity (0.9) % (1.3) %
Amortization of purchased intangible assets (1.7) % (2.9) %
Acquisition and integration costs (1.2) % (0.4) %
Non-GAAP SG&A expenses 8.6  % 10.0  %
GAAP restructuring expenses 0.1  % 0.5  %
Restructuring charges (0.1) % (0.5) %
Non-GAAP restructuring expenses —  % —  %
GAAP income from operations 16.0  % 2.9  %
Total non-GAAP adjustments 16.8  % 20.8  %
Non-GAAP income from operations 32.8  % 23.7  %
GAAP income (loss) on extinguishment of debt —  % (1.3) %
Loss on extinguishment of debt —  % 1.3  %
Non-GAAP loss on extinguishment of debt —  % —  %
GAAP interest and other income (expense), net 0.3  % (2.1) %
Non-recurring interest and other income (expense), net —  % 0.1  %
Non-GAAP interest and other income (expense), net 0.4  % (2.0) %
GAAP income (loss) before income taxes 16.3  % (0.4) %
Total non-GAAP adjustments 16.8  % 22.2  %
Non-GAAP income before income taxes 33.2  % 21.8  %
GAAP income tax provision (benefit) 4.3  % (1.5) %
Adjustment for non-cash tax benefits/expenses (2.3) % 2.8  %
Non-GAAP income tax provision 2.0  % 1.3  %
GAAP net income 12.1  % 1.1  %
Total non-GAAP adjustments before income taxes 16.8  % 22.2  %
Less: total tax adjustments (2.3) % 2.8  %
Non-GAAP net income 31.2  % 20.5  %
14
EX-99.2 3 earningspresentation6302.htm EX-99.2 earningspresentation6302
MaxLinear Q2’22 Earnings July 2022


 
Cautionary Note Concerning Forward-Looking Statements This presentation 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. Unless otherwise indicated, all forward looking statements are based on estimates, projections, and assumptions of MaxLinear as of the date of this presentation. These forward-looking statements include, among others, statements concerning: run rate for future Wi-Fi revenue, anticipated closing date of proposed acquisition of Silicon Motion and expected financial performance for the third quarter of 2022. 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. 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 proposed merger with Silicon Motion; intense competition in our industry; increasing supply chain risks within our industry, including increases in shipping and material costs and substantial shipping delays resulting in extended lead-times; inflation trends in our supply chain and in the global economy generally; uncertainties concerning the outcome of global trade negotiations, export control limitations, and heightened geopolitical risks generally; our dependence on a limited number of customers for a substantial portion of our revenues; potential decreases in average selling prices for our products; 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 uncertainties arising from continued consolidation among cable television and satellite operators in our target markets and continued consolidation among competitors within the semiconductor industry generally; uncertainties concerning how end user markets for our products will develop, including in particular markets we have entered more recently such as broadband, Wi-Fi and 5G wireless and fiber-optic data center high-speed interconnect infrastructure markets but also existing markets; the impact of our indebtedness and limitations on our operating flexibility based on financial and operating covenants in the applicable term loan agreements, including (without limitation) debt covenant restrictions that may limit our ability to obtain additional financing, granting liens, undergoing certain fundamental changes, or making investments or certain restricted payments, and selling assets; risks relating to intellectual property protection and the prevalence of intellectual property litigation in our industry; our reliance on a limited number of third party manufacturers; the impact of the COVID-19 pandemic; 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 Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 2, 2022, and 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 quarter ended June 30, 2022. All forward- looking statements are based on the estimates, projections and assumptions of management as of July 27, 2022, 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. Additional Information and Where to Find It This communication makes reference to a proposed business combination involving MaxLinear and Silicon Motion. In connection with the proposed transaction, MaxLinear has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 (File No. 333-265645), including a proxy statement of Silicon Motion and a prospectus of MaxLinear. The Registration Statement on Form S-4 was declared effective by the SEC on July 13, 2022 and the proxy statement/prospectus was first mailed to the shareholders of Silicon Motion on July 20, 2022, seeking their approval of their transaction-related proposals. This communication does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities or a solicitation of any vote or approval nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. MAXLINEAR AND SILICON MOTION URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4, WHICH WILL BE PROVIDED TO SILICON MOTION SECURITY HOLDERS AND OTHER DOCUMENTS PROVIDED TO SILICON MOTION SECURITY HOLDERS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders are able to obtain the Registration Statement on Form S-4 free of charge at the SEC’s website, www.sec.gov. Copies of documents filed with the SEC by MaxLinear (when they become available) may be obtained free of charge on MaxLinear’s website at www.maxlinear.com or by contacting MaxLinear’s Investor Relations Department at IR@MaxLinear.com. Copies of documents filed or furnished by Silicon Motion (when they become available) may be obtained free of charge on Silicon Motion’s website at https://www.siliconmotion.com or by contacting Silicon Motion’s Stock Affair Specialist 2


 
Disclaimer Non-GAAP Financial Measures This communication may contain certain non-GAAP financial measures, which MaxLinear management believes are useful to investors and reflect how management measures MaxLinear’s business. Further detail and reconciliations between the non-GAAP financial measures and the GAAP financial measures are available in the Appendix to this presentation and on the Investor Relations section of MaxLinear’s website as part of its published financial results press release.  Because of the inherent uncertainty associated with our ability to project future charges, particularly those related to stock-based compensation and its related tax effects as well as potential impairments, we do not provide reconciliations to forward-looking non-GAAP financial information.  3


 
Q2’22 Financial Highlights  Revenue of $280.0 million, an increase of 36% YoY and 6% QoQ GAAP and Non-GAAP gross margin was 58.7% and 62.3% GAAP and Non-GAAP operating margin was 13.9% and 32.2% GAAP and Non-GAAP earnings per share was $0.40 and $1.11  Cash generated from operations was $123.4 million


 
Q2’22 Business Highlights  Company-specific growth drivers enabled us to outperform the market in the second quarter.  Continued strong growth in fiber broadband access and 5G wireless infrastructure end- markets.  On a run rate to more than double Wi-Fi revenue in 2022, with a path to exceed $200M in 2023.  Second quarter infrastructure revenue grew 22% year-over-year, driven by strong performance in HPA products and continued growth in 5G wireless backhaul  New product innovations announced in the quarter included: › A single-chip solution to enable network OEMs and operators to deliver the ultra-high-capacity payloads associated with 5G applications on existing frequency spectrum resources › A high-efficiency power amplifier solution that addresses size, weight, and power consumption challenges for massive MIMO radios  Announced execution of definitive agreement to acquire Silicon Motion, a global leader in NAND flash controllers for solid state storage devices


 
Update on Acquisition of Silicon Motion  Acquisition is progressing well with projected close by mid-2023  Announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired on June 27, 2022  Filed with China's State Administration for Market Regulation (SAMR) on July 6  Registration statement on Form S-4 declared effective by SEC on July 13 Debt financing is secured, subject to customary closing conditions, with focus on optimizing structure


 
Q2’22 GAAP Financial Results 7 $M Q2’22 Q1’22 Q2’21 Net Revenue $280.0 $263.9 $205.4 Gross Margin 58.7% 58.6% 54.8% Operating Expenses $125.3 $106.5 $110.3 Interest and Other Income (Expense) $4.8 $(3.1) $(9.5) Tax Rate 27.1% 25.4% NM Net Income $32.0 $33.6 $0.7 Earnings per Share $ 0.40 $ 0.42 $0.01


 
Q2’22 Non-GAAP Financial Results 8 $M Q2’22 Q1’22 Q2’21 Net Revenue (GAAP) $280.0 $263.9 $205.4 Gross Margin 62.3% 62.8% 60.2% Operating Expenses $84.3 $77.3 $75.2 Interest and Other Income (Expense) $4.9 $(3.0) $(4.1) Tax Rate 6.0% 6.0% 6.0% Adjusted Net Income $89.3 $80.2 $41.6 Earnings per Share $ 1.11 $ 1.00 $0.53


 
Q2’22 Balance Sheet 9 $M Assets Q2’22 Q1’22 Q2’21 Cash and cash equivalents $211.4 $151.1 $130.3 Accounts receivable $137.1 $125.7 $135.3 Short-term investments $23.9 $19.1 $0 Inventory $146.4 $139.0 $98.5 Other current assets $19.9 $19.7 $14.0 Total current assets $538.6 $454.6 $378.1 Net PP&E $64.1 $60.0 $48.1 Other assets $577.9 $584.5 $600.4 Total assets $1,180.7 $1,099.1 $1,026.6 Liabilities & Shareholder Equity Total current liabilities $316.1 $234.8 $211.8 Long-term debt $246.5 $286.3 $343.0 Other liabilities $48.6 $50.2 $38.1 Total liabilities $611.1 $571.3 $593.0 Shareholders’ equity $569.6 $527.8 $433.7 Total liabilities and equity $1,180.7 $1,099.1 $1,026.6


 
Q3’22 Guidance 10 $M GAAP Non-GAAP Revenue $280 - $290 $280 - $290 Gross Margin 57.5% – 60.5% 60.5% - 63.5% Operating Expenses $115 - $121 $81 - $87 Interest and Other Income (Expense) $(3.5) $(3.5)


 
Appendix


 
GAAP to Non-GAAP Reconciliation UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS (in thousands, except per share data)


 
GAAP to Non-GAAP Reconciliation UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS (in thousands, except per share data)


 
GAAP to Non-GAAP Reconciliation UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS (in thousands, except per share data)


 
Thank You