• | G.hn Wave 2 transceiver ICs were selected by German home networking pioneer devolo. |
• | Announced hardware compression solution XR9240 that supports the Dell EMC VMAX All-Flash storage array portfolio. |
• | MxL69x ATSC receiver was selected by Nuvyyo, Inc. for an innovative new Tablo DVR product. |
• | MxL85110 broadband modem SoC was selected by GiaX GmbH for its HelEOS network system. |
• | Announced MaxLinear's MoCA 2.5 networking ICs were selected by Teamly Digital for its new FiberCableStream cable micronode. |
• | Announced collaboration with Hitron Technologies America to integrate MxL3710 on a range of Hitron's new multi-gigabit client devices addressing MoCA 2.5 based broadband data access networks. |
• | Announced that Thailand's TOT Public Company Limited is deploying a new gigabit broadband internet service that is powered by MaxLinear's G.hn wired connectivity technology. |
• | Announced a new G.hn-based fiber-to-the-distribution-point (FTTdp) platform addressing the needs of service providers in partnership with Methode Electronics, Inc. and LEA Networks. |
• | GAAP gross margin was 55.5%, compared to 56.5% in the prior quarter, and 49.1% in the year-ago quarter. |
• | GAAP operating expenses were $56.6 million in the second quarter 2018, or 56% of revenue, compared to $58.2 million or 53% of revenue in the prior quarter, and $66.9 million or 64% of revenue in the year-ago quarter. |
• | GAAP loss from operations was 0% of revenue, compared to income from operations of 4% in the prior quarter, and loss from operations of 15% in the year-ago quarter. |
• | Net cash flow provided by operating activities of $35.8 million, compared to $12.0 million in the prior quarter and cash used in operating activities of $7.1 million in the year-ago quarter. |
• | GAAP pre-tax losses were 3% of revenue, compared to pre-tax losses that were 0% of revenue in the prior quarter, and pre-tax losses that were 18% of revenue in the year-ago quarter. |
• | GAAP income tax provision was $11.2 million, compared to an income tax benefit of $1.9 million in the prior quarter, and an income tax benefit of $29.5 million in the year-ago quarter. |
• | GAAP net loss was $14.4 million, compared to net income of $1.8 million in the prior quarter, and net income of $11.0 million in the year-ago quarter. |
• | GAAP diluted loss per share was $0.21, compared to diluted earnings per share of $0.03 in the prior quarter, and diluted earnings per share of $0.16 in the year-ago quarter. |
• | Non-GAAP gross margin was 64.6%. This compares to 64.9% in the prior quarter, and 64.4% in the year-ago quarter. |
• | Non-GAAP operating expenses were $37.1 million, or 37% of revenue, compared to $39.3 million or 35% of revenue in the prior quarter, and $36.9 million and 35% of revenue in the year-ago quarter. |
• | Non-GAAP income from operations was 28% of revenue, compared to 29% in the prior quarter, and 29% in the year-ago quarter. |
• | Non-GAAP pre-tax margin was 25% of revenue, compared to 25% in the prior quarter, and 26% in the year-ago quarter. |
• | Non-GAAP effective tax rate was 7% of non-GAAP pre-tax income, compared to 7% in the prior quarter, and 10% in the year-ago quarter. |
• | Non-GAAP net income was $23.7 million, compared to $26.2 million in the prior quarter, and $24.7 million in the year-ago quarter. |
• | Non-GAAP diluted earnings per share was $0.34, compared to $0.37 in the prior quarter, and $0.35 in the year-ago quarter. |
• | GAAP and non-GAAP gross margin of approximately 51.5% and 62.5%, respectively. |
• | GAAP and non-GAAP operating expenses of approximately $54.5 million and $36.0 million, respectively. |
• | GAAP and non-GAAP interest expenses of approximately $3.8 million. |
• | GAAP income taxes of approximately $0.5 million and non-GAAP cash tax rate of approximately 7%. |
Three Months Ended | |||||||||||
June 30, 2018 | March 31, 2018 | June 30, 2017 | |||||||||
Net revenue | $ | 101,533 | $ | 110,827 | $ | 104,175 | |||||
Cost of net revenue | 45,203 | 48,159 | 53,071 | ||||||||
Gross profit | 56,330 | 62,668 | 51,104 | ||||||||
Operating expenses: | |||||||||||
Research and development | 30,211 | 31,121 | 29,015 | ||||||||
Selling, general and administrative | 24,501 | 27,117 | 31,338 | ||||||||
Restructuring charges | 1,865 | — | 6,546 | ||||||||
Total operating expenses | 56,577 | 58,238 | 66,899 | ||||||||
Income (loss) from operations | (247 | ) | 4,430 | (15,795 | ) | ||||||
Interest income | 19 | 18 | 64 | ||||||||
Interest expense | (3,694 | ) | (3,894 | ) | (2,201 | ) | |||||
Other income (expense), net | 725 | (571 | ) | (618 | ) | ||||||
Total interest and other income (expense), net | (2,950 | ) | (4,447 | ) | (2,755 | ) | |||||
Loss before income taxes | (3,197 | ) | (17 | ) | (18,550 | ) | |||||
Income tax provision (benefit) | 11,225 | (1,864 | ) | (29,515 | ) | ||||||
Net income (loss) | $ | (14,422 | ) | $ | 1,847 | $ | 10,965 | ||||
Net income (loss) per share: | |||||||||||
Basic | $ | (0.21 | ) | $ | 0.03 | $ | 0.17 | ||||
Diluted | $ | (0.21 | ) | $ | 0.03 | $ | 0.16 | ||||
Shares used to compute net income (loss) per share: | |||||||||||
Basic | 68,335 | 67,674 | 65,889 | ||||||||
Diluted | 68,335 | 70,440 | 69,645 |
Six Months Ended | |||||||
June 30, 2018 | June 30, 2017 | ||||||
Net revenue | $ | 212,360 | $ | 193,016 | |||
Cost of net revenue | 93,362 | 88,988 | |||||
Gross profit | 118,998 | 104,028 | |||||
Operating expenses: | |||||||
Research and development | 61,332 | 52,893 | |||||
Selling, general and administrative | 51,618 | 49,951 | |||||
Restructuring charges | 1,865 | 6,546 | |||||
Total operating expenses | 114,815 | 109,390 | |||||
Income (loss) from operations | 4,183 | (5,362 | ) | ||||
Interest income | 37 | 259 | |||||
Interest expense | (7,588 | ) | (2,201 | ) | |||
Other income (expense), net | 154 | (762 | ) | ||||
Total interest and other income (expense), net | (7,397 | ) | (2,704 | ) | |||
Loss before income taxes | (3,214 | ) | (8,066 | ) | |||
Income tax provision (benefit) | 9,361 | (27,494 | ) | ||||
Net income (loss) | $ | (12,575 | ) | $ | 19,428 | ||
Net income (loss) per share: | |||||||
Basic | $ | (0.18 | ) | $ | 0.30 | ||
Diluted | $ | (0.18 | ) | $ | 0.28 | ||
Shares used to compute net income (loss) per share: | |||||||
Basic | 68,008 | 65,564 | |||||
Diluted | 68,008 | 69,398 |
Three Months Ended | |||||||||||
June 30, 2018 | March 31, 2018 | June 30, 2017 | |||||||||
Operating Activities | |||||||||||
Net income (loss) | $ | (14,422 | ) | $ | 1,847 | $ | 10,965 | ||||
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||||||||||
Amortization and depreciation | 20,051 | 20,084 | 18,261 | ||||||||
Accretion of investment discount | — | — | (107 | ) | |||||||
Amortization of inventory step-up | — | — | 5,635 | ||||||||
Amortization of debt issuance costs and discount | 287 | 287 | 175 | ||||||||
Stock-based compensation | 7,309 | 8,473 | 11,628 | ||||||||
Deferred income taxes | (1,289 | ) | (2,332 | ) | (53,297 | ) | |||||
Loss on disposal of property and equipment | — | — | 3 | ||||||||
Loss on sale of available-for-sale securities | — | — | 38 | ||||||||
(Gain) loss on foreign currency | (828 | ) | 471 | 898 | |||||||
Excess tax benefits on stock-based awards | (318 | ) | (797 | ) | (2,376 | ) | |||||
Impairment of leasehold improvements | 700 | — | — | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 6,979 | (24,533 | ) | (13,496 | ) | ||||||
Inventory | 1,420 | 7,676 | (2,289 | ) | |||||||
Prepaid expenses and other assets | 2,213 | 1,003 | 4,385 | ||||||||
Accounts payable, accrued expenses and other current liabilities | 11,540 | (421 | ) | 7,610 | |||||||
Accrued compensation | 1,401 | 2,502 | (1,664 | ) | |||||||
Deferred revenue and deferred profit | — | (138 | ) | 7,633 | |||||||
Accrued price protection liability | (132 | ) | (1,359 | ) | 2,676 | ||||||
Other long-term liabilities | 913 | (792 | ) | (3,768 | ) | ||||||
Net cash provided by (used in) operating activities | 35,824 | 11,971 | (7,090 | ) | |||||||
Investing Activities | |||||||||||
Purchases of property and equipment | (2,423 | ) | (2,381 | ) | (1,155 | ) | |||||
Purchases of intangible assets | — | — | (5,205 | ) | |||||||
Cash used in acquisition, net of cash acquired | — | — | (473,304 | ) | |||||||
Maturities of available-for-sale securities | — | — | 63,761 | ||||||||
Net cash used in investing activities | (2,423 | ) | (2,381 | ) | (415,903 | ) | |||||
Financing Activities | |||||||||||
Net proceeds from issuance of debt | — | — | 416,846 | ||||||||
Repayment of debt | (18,000 | ) | (25,000 | ) | — | ||||||
Net proceeds from issuance of common stock | 3,036 | 980 | 7,657 | ||||||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (1,448 | ) | (2,391 | ) | (3,496 | ) | |||||
Net cash provided by (used in) financing activities | (16,412 | ) | (26,411 | ) | 421,007 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 793 | (258 | ) | 839 | |||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 17,782 | (17,079 | ) | (1,147 | ) | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 57,333 | 74,412 | 91,238 | ||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 75,115 | $ | 57,333 | $ | 90,091 |
Six Months Ended | |||||||
June 30, 2018 | June 30, 2017 | ||||||
Operating Activities | |||||||
Net income (loss) | $ | (12,575 | ) | $ | 19,428 | ||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||||||
Amortization and depreciation | 40,135 | 25,160 | |||||
Provision for losses on accounts receivable | — | 87 | |||||
Accretion of investment discount | — | (60 | ) | ||||
Amortization of inventory step-up | — | 5,635 | |||||
Amortization of debt issuance costs and discount | 574 | 175 | |||||
Stock-based compensation | 15,782 | 17,102 | |||||
Deferred income taxes | (3,621 | ) | (53,142 | ) | |||
Gain on disposal of property and equipment | — | (85 | ) | ||||
Loss on sale of available-for-sale securities | — | 38 | |||||
(Gain) loss on foreign currency | (357 | ) | 682 | ||||
Excess tax benefits on stock-based awards | (1,115 | ) | (3,290 | ) | |||
Impairment of leasehold improvements | 700 | — | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (17,554 | ) | (20,932 | ) | |||
Inventory | 9,096 | (7,391 | ) | ||||
Prepaid expenses and other assets | 3,216 | 5,210 | |||||
Accounts payable, accrued expenses and other current liabilities | 11,119 | 15,562 | |||||
Accrued compensation | 3,903 | (1,282 | ) | ||||
Deferred revenue and deferred profit | (138 | ) | 7,326 | ||||
Accrued price protection liability | (1,491 | ) | 9,447 | ||||
Other long-term liabilities | 121 | (4,088 | ) | ||||
Net cash provided by operating activities | 47,795 | 15,582 | |||||
Investing Activities | |||||||
Purchases of property and equipment | (4,804 | ) | (1,898 | ) | |||
Purchases of intangible assets | — | (5,325 | ) | ||||
Cash used in acquisition, net of cash acquired | — | (473,304 | ) | ||||
Purchases of available-for-sale securities | — | (30,577 | ) | ||||
Maturities of available-for-sale securities | — | 84,546 | |||||
Net cash used in investing activities | (4,804 | ) | (426,558 | ) | |||
Financing Activities | |||||||
Net proceeds from issuance of debt | — | 416,846 | |||||
Repayment of debt | (43,000 | ) | — | ||||
Repurchases of common stock | — | (334 | ) | ||||
Net proceeds from issuance of common stock | 4,016 | 8,018 | |||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (3,839 | ) | (8,399 | ) | |||
Net cash provided by (used in) financing activities | (42,823 | ) | 416,131 | ||||
Effect of exchange rate changes on cash and cash equivalents | 535 | 2,040 | |||||
Increase in cash, cash equivalents and restricted cash | 703 | 7,195 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 74,412 | 82,896 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 75,115 | $ | 90,091 |
June 30, 2018 | March 31, 2018 | June 30, 2017 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 74,059 | $ | 55,645 | $ | 87,568 | |||||
Short-term restricted cash | 345 | 617 | 615 | ||||||||
Accounts receivable, net | 83,648 | 90,632 | 82,695 | ||||||||
Inventory | 44,338 | 45,758 | 77,559 | ||||||||
Prepaid expenses and other current assets | 7,305 | 8,413 | 9,732 | ||||||||
Total current assets | 209,695 | 201,065 | 258,169 | ||||||||
Long-term restricted cash | 711 | 1,071 | 1,908 | ||||||||
Property and equipment, net | 20,886 | 21,993 | 24,469 | ||||||||
Intangible assets, net | 281,017 | 298,031 | 353,524 | ||||||||
Goodwill | 238,330 | 237,810 | 238,838 | ||||||||
Deferred tax assets | 42,995 | 41,426 | 53,878 | ||||||||
Other long-term assets | 4,732 | 7,318 | 6,841 | ||||||||
Total assets | $ | 798,366 | $ | 808,714 | $ | 937,627 | |||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities | $ | 80,160 | $ | 67,061 | $ | 110,197 | |||||
Long-term debt | 305,183 | 322,896 | 415,032 | ||||||||
Other long-term liabilities | 13,102 | 12,309 | 14,491 | ||||||||
Total stockholders’ equity | 399,921 | 406,448 | 397,907 | ||||||||
Total liabilities and stockholders’ equity | $ | 798,366 | $ | 808,714 | $ | 937,627 |
Three Months Ended | |||||||||||
June 30, 2018 | March 31, 2018 | June 30, 2017 | |||||||||
GAAP gross profit | $ | 56,330 | $ | 62,668 | $ | 51,104 | |||||
Stock-based compensation | 120 | 106 | 79 | ||||||||
Performance based equity | 47 | 78 | 28 | ||||||||
Amortization of inventory step-up | — | — | 5,635 | ||||||||
Amortization of purchased intangible assets | 8,968 | 8,969 | 6,260 | ||||||||
Depreciation of fixed asset step-up | 96 | 112 | 112 | ||||||||
Deferred profit eliminated in purchase price accounting | — | — | 3,872 | ||||||||
Non-GAAP gross profit | 65,561 | 71,933 | 67,090 | ||||||||
GAAP R&D expenses | 30,211 | 31,121 | 29,015 | ||||||||
Stock-based compensation | (4,454 | ) | (4,374 | ) | (4,011 | ) | |||||
Performance based equity | (1,297 | ) | (1,140 | ) | (1,055 | ) | |||||
Amortization of purchased intangible assets | — | — | (97 | ) | |||||||
Depreciation of fixed asset step-up | (324 | ) | (329 | ) | (760 | ) | |||||
Non-GAAP R&D expenses | 24,136 | 25,278 | 23,092 | ||||||||
GAAP SG&A expenses | 24,501 | 27,117 | 31,338 | ||||||||
Stock-based compensation | (2,735 | ) | (3,993 | ) | (3,024 | ) | |||||
Performance based equity | (730 | ) | (1,049 | ) | (482 | ) | |||||
Amortization of purchased intangible assets | (7,994 | ) | (7,994 | ) | (8,262 | ) | |||||
Depreciation of fixed asset step-up | (12 | ) | (10 | ) | (56 | ) | |||||
Acquisition and integration costs | — | — | (5,609 | ) | |||||||
IP litigation costs, net | (19 | ) | (42 | ) | (125 | ) | |||||
Non-GAAP SG&A expenses | 13,011 | 14,029 | 13,780 | ||||||||
GAAP restructuring expenses | 1,865 | — | 6,546 | ||||||||
Restructuring charges | (1,865 | ) | — | (6,546 | ) | ||||||
Non-GAAP restructuring expenses | — | — | — | ||||||||
GAAP income (loss) from operations | (247 | ) | 4,430 | (15,795 | ) | ||||||
Total non-GAAP adjustments | 28,661 | 28,196 | 46,013 | ||||||||
Non-GAAP income from operations | 28,414 | 32,626 | 30,218 | ||||||||
GAAP and non-GAAP interest and other income (expense), net | (2,950 | ) | (4,447 | ) | (2,755 | ) | |||||
GAAP loss before income taxes | (3,197 | ) | (17 | ) | (18,550 | ) | |||||
Total non-GAAP adjustments | 28,661 | 28,196 | 46,013 | ||||||||
Non-GAAP income before income taxes | 25,464 | 28,179 | 27,463 | ||||||||
GAAP income tax provision (benefit) | 11,225 | (1,864 | ) | (29,515 | ) | ||||||
Adjustment for non-cash tax benefits/expenses | (9,443 | ) | 3,837 | 32,300 | |||||||
Non-GAAP income tax provision | 1,782 | 1,973 | 2,785 | ||||||||
GAAP net income (loss) | (14,422 | ) | 1,847 | 10,965 | |||||||
Total non-GAAP adjustments before income taxes | 28,661 | 28,196 | 46,013 | ||||||||
Less: total tax adjustments | (9,443 | ) | 3,837 | 32,300 | |||||||
Non-GAAP net income | $ | 23,682 | $ | 26,206 | $ | 24,678 | |||||
Shares used in computing non-GAAP basic net income per share | 68,335 | 67,674 | 65,889 | ||||||||
Shares used in computing non-GAAP diluted net income per share | 70,473 | 70,440 | 69,645 | ||||||||
Non-GAAP basic net income per share | $ | 0.35 | $ | 0.39 | $ | 0.37 | |||||
Non-GAAP diluted net income per share | $ | 0.34 | $ | 0.37 | $ | 0.35 |
Six Months Ended | |||||||
June 30, 2018 | June 30, 2017 | ||||||
GAAP gross profit | $ | 118,998 | $ | 104,028 | |||
Stock-based compensation | 226 | 138 | |||||
Performance based equity | 125 | 70 | |||||
Amortization of inventory step-up | — | 5,635 | |||||
Amortization of purchased intangible assets | 17,937 | 8,944 | |||||
Depreciation of fixed asset step-up | 208 | 112 | |||||
Deferred profit eliminated in purchase price accounting | — | 3,872 | |||||
Non-GAAP gross profit | 137,494 | 122,799 | |||||
GAAP R&D expenses | 61,332 | 52,893 | |||||
Stock-based compensation | (8,828 | ) | (7,504 | ) | |||
Performance based equity | (2,437 | ) | (2,009 | ) | |||
Amortization of purchased intangible assets | — | (193 | ) | ||||
Depreciation of fixed asset step-up | (653 | ) | (760 | ) | |||
Non-GAAP R&D expenses | 49,414 | 42,427 | |||||
GAAP SG&A expenses | 51,617 | 49,951 | |||||
Stock-based compensation | (6,728 | ) | (4,946 | ) | |||
Performance based equity | (1,779 | ) | (1,060 | ) | |||
Amortization of purchased intangible assets | (15,988 | ) | (10,143 | ) | |||
Depreciation of fixed asset step-up | (22 | ) | (56 | ) | |||
Acquisition and integration costs | — | (9,003 | ) | ||||
IP litigation costs, net | (61 | ) | (230 | ) | |||
Non-GAAP SG&A expenses | 27,039 | 24,513 | |||||
GAAP restructuring expenses | 1,865 | 6,546 | |||||
Restructuring charges | (1,865 | ) | (6,546 | ) | |||
Non-GAAP restructuring expenses | — | — | |||||
GAAP income (loss) from operations | 4,183 | (5,362 | ) | ||||
Total non-GAAP adjustments | 56,857 | 61,221 | |||||
Non-GAAP income from operations | 61,041 | 55,859 | |||||
GAAP and non-GAAP interest and other expense, net | (7,397 | ) | (2,704 | ) | |||
GAAP loss before income taxes | (3,214 | ) | (8,066 | ) | |||
Total non-GAAP adjustments | 56,857 | 61,221 | |||||
Non-GAAP income before income taxes | 53,643 | 53,155 | |||||
GAAP income tax provision (benefit) | 9,361 | (27,494 | ) | ||||
Adjustment for non-cash tax benefits/expenses | (5,606 | ) | 32,810 | ||||
Non-GAAP income tax provision | 3,755 | 5,316 | |||||
GAAP net income (loss) | (12,575 | ) | 19,428 | ||||
Total non-GAAP adjustments before income taxes | 56,857 | 61,221 | |||||
Less: total tax adjustments | (5,606 | ) | 32,810 | ||||
Non-GAAP net income | $ | 49,888 | $ | 47,839 | |||
Shares used in computing non-GAAP basic net income per share | 68,008 | 65,564 | |||||
Shares used in computing non-GAAP diluted net income per share | 70,460 | 69,398 | |||||
Non-GAAP basic net income per share | $ | 0.73 | $ | 0.73 | |||
Non-GAAP diluted net income per share | $ | 0.71 | $ | 0.69 |
Three Months Ended | ||||||||
June 30, 2018 | March 31, 2018 | June 30, 2017 | ||||||
GAAP gross profit | 55.5 | % | 56.5 | % | 49.1 | % | ||
Stock-based compensation | 0.1 | % | 0.1 | % | 0.1 | % | ||
Performance based equity | — | % | 0.1 | % | — | % | ||
Amortization of inventory step-up | — | % | — | % | 5.4 | % | ||
Amortization of purchased intangible assets | 8.8 | % | 8.1 | % | 6.0 | % | ||
Depreciation of fixed asset step-up | 0.1 | % | 0.1 | % | 0.1 | % | ||
Deferred profit eliminated in purchase price accounting | — | % | — | % | 3.7 | % | ||
Non-GAAP gross profit | 64.6 | % | 64.9 | % | 64.4 | % | ||
GAAP R&D expenses | 29.8 | % | 28.1 | % | 27.9 | % | ||
Stock-based compensation | (4.4 | )% | (3.9 | )% | (3.9 | )% | ||
Performance based equity | (1.3 | )% | (1.0 | )% | (1.0 | )% | ||
Amortization of purchased intangible assets | — | % | — | % | (0.1 | )% | ||
Depreciation of fixed asset step-up | (0.4 | )% | (0.4 | )% | (0.7 | )% | ||
Non-GAAP R&D expenses | 23.8 | % | 22.8 | % | 22.2 | % | ||
GAAP SG&A expenses | 24.1 | % | 24.5 | % | 30.1 | % | ||
Stock-based compensation | (2.7 | )% | (3.6 | )% | (2.9 | )% | ||
Performance based equity | (0.7 | )% | (0.9 | )% | (0.5 | )% | ||
Amortization of purchased intangible assets | (7.9 | )% | (7.2 | )% | (7.9 | )% | ||
Depreciation of fixed asset step-up | — | % | (0.1 | )% | (0.1 | )% | ||
Acquisition and integration costs | — | % | — | % | (5.4 | )% | ||
IP litigation costs, net | — | % | — | % | (0.1 | )% | ||
Non-GAAP SG&A expenses | 12.8 | % | 12.7 | % | 13.2 | % | ||
GAAP restructuring expenses | 1.8 | % | — | % | 6.3 | % | ||
Restructuring charges | (1.8 | )% | — | % | (6.3 | )% | ||
Non-GAAP restructuring expenses | — | % | — | % | — | % | ||
GAAP income (loss) from operations | (0.2 | )% | 4.0 | % | (15.1 | )% | ||
Total non-GAAP adjustments | 28.2 | % | 25.4 | % | 44.1 | % | ||
Non-GAAP income from operations | 28.0 | % | 29.4 | % | 29.0 | % | ||
GAAP and non-GAAP interest and other income (expense), net | (2.9 | )% | (4.0 | )% | (2.6 | )% | ||
GAAP loss before income taxes | (3.1 | )% | — | % | (17.8 | )% | ||
Total non-GAAP adjustments before income taxes | 28.2 | % | 25.4 | % | 44.1 | % | ||
Non-GAAP income before income taxes | 25.1 | % | 25.4 | % | 26.4 | % | ||
GAAP income tax provision (benefit) | 11.1 | % | (1.7 | )% | (28.3 | )% | ||
Adjustment for non-cash tax benefits/expenses | (9.3 | )% | 3.5 | % | 30.9 | % | ||
Non-GAAP income tax provision | 1.8 | % | 1.8 | % | 2.7 | % | ||
GAAP net income (loss) | (14.2 | )% | 1.7 | % | 10.5 | % | ||
Total non-GAAP adjustments before income taxes | 28.2 | % | 25.4 | % | 44.1 | % | ||
Less: total tax adjustments | (9.3 | )% | 3.5 | % | 30.9 | % | ||
Non-GAAP net income | 23.3 | % | 23.6 | % | 23.7 | % |
Six Months Ended | |||||
June 30, 2018 | June 30, 2017 | ||||
GAAP gross profit | 56.0 | % | 53.9 | % | |
Stock-based compensation | 0.1 | % | 0.1 | % | |
Performance based equity | 0.1 | % | — | % | |
Amortization of inventory step-up | — | % | 2.9 | % | |
Amortization of purchased intangible assets | 8.4 | % | 4.6 | % | |
Depreciation of fixed asset step-up | 0.1 | % | 0.1 | % | |
Deferred profit eliminated in purchase price accounting | — | % | 2.0 | % | |
Non-GAAP gross profit | 64.7 | % | 63.6 | % | |
GAAP R&D expenses | 28.9 | % | 27.4 | % | |
Stock-based compensation | (4.2 | )% | (3.9 | )% | |
Performance based equity | (1.1 | )% | (1.0 | )% | |
Amortization of purchased intangible assets | — | % | (0.1 | )% | |
Depreciation of fixed asset step-up | (0.3 | )% | (0.4 | )% | |
Non-GAAP R&D expenses | 23.3 | % | 22.0 | % | |
GAAP SG&A expenses | 24.3 | % | 25.9 | % | |
Stock-based compensation | (3.2 | )% | (2.6 | )% | |
Performance based equity | (0.8 | )% | (0.5 | )% | |
Amortization of purchased intangible assets | (7.5 | )% | (5.2 | )% | |
Depreciation of fixed asset step-up | — | % | (0.1 | )% | |
Acquisition and integration costs | — | % | (4.7 | )% | |
IP litigation costs, net | — | % | (0.1 | )% | |
Non-GAAP SG&A expenses | 12.7 | % | 12.7 | % | |
GAAP restructuring expenses | 0.9 | % | 3.4 | % | |
Restructuring charges | (0.9 | )% | (3.4 | )% | |
Non-GAAP restructuring expenses | — | % | — | % | |
GAAP income (loss) from operations | 2.0 | % | (2.8 | )% | |
Total non-GAAP adjustments | 26.8 | % | 31.7 | % | |
Non-GAAP income from operations | 28.7 | % | 28.8 | % | |
GAAP and non-GAAP interest and other income (expense), net | (3.5 | )% | (1.4 | )% | |
GAAP loss before income taxes | (1.5 | )% | (4.2 | )% | |
Total non-GAAP adjustments before income taxes | 26.8 | % | 31.7 | % | |
Non-GAAP income before income taxes | 25.3 | % | 27.5 | % | |
GAAP income tax provision (benefit) | 4.4 | % | (14.2 | )% | |
Adjustment for non-cash tax benefits/expenses | (2.6 | )% | 16.9 | % | |
Non-GAAP income tax provision | 1.8 | % | 2.8 | % | |
GAAP net income (loss) | (5.9 | )% | 10.1 | % | |
Total non-GAAP adjustments before income taxes | 26.8 | % | 31.7 | % | |
Less: total tax adjustments | (2.6 | )% | 16.9 | % | |
Non-GAAP net income | 23.5 | % | 24.8 | % |