Slide 1: MaxLinear Q3'23 Earnings
MaxLinear Q3'23 Earnings October 25, 2023
Slide 2: Cautionary Note Concerning Forward-Looking Statements
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
Slide 3: Disclaimer
Disclaimer Non-GAAP Financial Measures This communication contains non-GAAP financial measures, which MaxLinear management believes are useful to investors and reflect how management measures MaxLinear’s business. Among other uses, our management uses non-GAAP measures to compare our performance rel
Slide 4: Q3'23 Financial Highlights
Q3'23 Financial Highlights • Revenue of $135.5 million • GAAP and Non-GAAP gross margin was 54.6% and 60.8% • GAAP and Non-GAAP operating margin was (13.2)% and 5.4% • GAAP loss per share was $(0.49) and Non-GAAP earnings per share was $0.02 • Cash used in operations was approximately $13 million
Slide 5: Q3'23 Business Highlights
Q3'23 Business Highlights • Infrastructure revenue up 1% sequentially, and 40% year-over year in Q3, driven by the expanding roll-out of multi-band millimeter wave and microwave backhaul platform solutions • Strong design win activity in fiber access, Wi-Fi, and wireless infrastructure • Announced e
Slide 6: Q3'23 GAAP Financial Results
Q3'23 GAAP Financial Results $M Q3'23 Q2'23 Q3'22 Net Revenue $135.5 $183.9 $285.7 Gross Margin 54.6% 55.9% 58.6% Operating Expenses $91.8 $108.8 $115.5 Interest and Other Income (Expense), Net $(23.7) $1.2 $(7.4) Tax Rate 4.1% 8.6% 36.3% Net Income (Loss) $(39.8) $4.4 $28.4 Diluted Earnings (Loss)
Slide 7: Q3'23 Non-GAAP Financial Results
Q3'23 Non-GAAP Financial Results $M Q3'23 Q2'23 Q3'22 Net Revenue (GAAP) $135.5 $183.9 $285.7 Non-GAAP Gross Margin 60.8% 61.0% 62.0% Non-GAAP Operating Expenses $75.1 $82.5 $80.4 Non-GAAP Interest and Other Income (Expense), Net $(5.3) $1.2 $(7.3) Non-GAAP Tax Rate 10.0 % 10.0 % 6.0 % Non-GAAP Net
Slide 8: Q3'23 Balance Sheet
Q3'23 Balance Sheet $M Assets Q3'23 Q2'23 Q3'22 Cash and cash equivalents $187.0 $224.6 $181.5 Accounts receivable $158.2 $155.8 $178.1 Short-term investments $14.6 $20.5 $18.6 Inventory $114.9 $126.2 $166.0 Other current assets $33.8 $27.4 $18.9 Total current assets $508.6 $554.5 $563.0 Net PP&E $6
Slide 9: Q4'23 Guidance
Q4'23 Guidance $M, shares in M GAAP Non-GAAP (except for revenue) Revenue $115 - $135 $115 - $135 Gross Margin 52.5% - 55.5% 59.5% - 62.5% Operating Expenses $125 - $135 $72 - $78 Interest and Other Income (Expense), Net * * Fully Diluted Share Count 82.5 - 83.5 82.5 - 83.5 *GAAP and non-GAAP intere
Slide 10: Appendix
Appendix
Slide 11: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS (in thousands, except per share data) Three Months Ended September 30, 2023 June 30, 2023 September 30, 2022 GAAP gross profit $ 73,944 $ 102,873 $ 167,488 Stock-based compensation 170 246 188 Performance based equity 1
Slide 12: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS (in thousands, except per share data) Three Months Ended September 30, 2023 June 30, 2023 September 30, 2022 GAAP restructuring expenses 54 4,436 631 Restructuring charges (54) (4,436) (631) Non-GAAP restructuring expen
Slide 13: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS (in thousands, except per share data) Three Months Ended September 30, 2023 June 30, 2023 September 30, 2022 GAAP income (loss) before income taxes $ (41,518) $ (4,760) $ 44,594 Total non-GAAP adjustments before income
Slide 14: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS (in thousands, except per share data) Nine Months Ended September 30, 2023 September 30, 2022 GAAP gross profit $ 317,124 $ 486,429 Stock-based compensation 626 513 Performance based equity 94 394 Amortization of purcha
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS (in thousands, except per share data) Nine Months Ended September 30, 2023 September 30, 2022 GAAP impairment losses 2,438 — Impairment losses (2,438) — Non-GAAP impairment losses — — GAAP restructuring expenses 9,138 1
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS (in thousands, except per share data) Nine Months Ended September 30, 2023 September 30, 2022 GAAP income (loss) before income taxes $ (21,179) $ 133,485 Total non-GAAP adjustments before income taxes 121,254 136,348 No
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation UNAUDITED RECONCILIATION OF NON-GAAP GROSS MARGIN AND NON-GAAP OPERATING MARGIN Three Months Ended September 30, 2023 June 30, 2023 September 30, 2022 GAAP gross margin 54.6 % 55.9 % 58.6 % Stock-based compensation 0.1 % 0.1 % 0.1 % Performance based equity —% —% 0.1
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation UNAUDITED RECONCILIATION OF NON-GAAP GROSS MARGIN AND NON-GAAP OPERATING MARGIN Nine Months Ended September 30, 2023 September 30, 2022 GAAP gross margin 55.8 % 58.6 % Stock-based compensation 0.1 % 0.1 % Performance based equity —% 0.1 % Amortization of purchased int
Slide 19: Thank You
Thank You