• | Net revenue was $82.5 million, down 3% sequentially, and down 19% year-on-year. |
• | GAAP gross margin was 53.4%, compared to 53.3% in the prior quarter, and 55.5% in the year-ago quarter. |
• | GAAP operating expenses were $47.0 million in the second quarter 2019, or 57% of net revenue, compared to $52.9 million in the prior quarter, or 63% of net revenue, and $56.6 million in the year-ago quarter, or 56% of net revenue. |
• | GAAP loss from operations was 4% of revenue, compared to loss from operations of 9% in the prior quarter, and loss from operations of 0% in the year-ago quarter. |
• | Net cash flow provided by operating activities was $12.4 million, compared to cash flow provided by operating activities of $16.0 million in the prior quarter and cash flow provided by operating activities of $35.8 million in the year-ago quarter. |
• | GAAP income tax benefit was $3.4 million, compared to an income tax benefit of $6.5 million in the prior quarter, and income tax provision of $11.2 million in the year-ago quarter. |
• | GAAP net loss was $2.2 million, compared to net loss of $4.9 million in the prior quarter, and net loss of $14.4 million in the year-ago quarter. |
• | GAAP diluted loss per share was $0.03, compared to diluted loss per share of $0.07 in the prior quarter, and diluted loss per share of $0.21 in the year-ago quarter. |
• | Non-GAAP gross margin was 63.9%. This compares to 63.5% in the prior quarter, and 64.6% in the year-ago quarter. |
• | Non-GAAP operating expenses were $32.8 million, or 40% of revenue, compared to $35.7 million or 42% of revenue in the prior quarter, and $37.1 million or 37% of revenue in the year-ago quarter. |
• | Non-GAAP income from operations was 24% of revenue, compared to 21% in the prior quarter, and 28% 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 7% in the year-ago quarter. |
• | Non-GAAP net income was $16.0 million, compared to $13.5 million in the prior quarter, and $23.7 million in the year-ago quarter. |
• | Non-GAAP diluted earnings per share was $0.22, compared to diluted earnings per share of $0.19 in the prior quarter, and diluted earnings per share of $0.34 in the year-ago quarter. |
• | Announced that Cambridge Industries Group has selected the MxL3710 MoCA 2.5 SoC for their next-generation 10G PON ONT devices. |
• | Announced that Raspberry Pi has selected MxL7704 Universal PMIC to power its latest single-board computer, the Raspberry Pi 4. |
• | Announced that ZTE Strawcom Telecommunications Co., Ltd has selected MaxLinear's G.hn Wave-2 chipset to develop a new family of fiber-to-the-home (FTTH) fiber extenders. |
• | GAAP gross margin of approximately 52.0% to 52.5%; |
• | Non-GAAP gross margin of approximately 63.0% to 63.5%; |
• | GAAP operating expenses of approximately $46.5 million to $47.5 million; and |
• | Non-GAAP operating expenses of approximately $31.0 million to $32.0 million. |
Three Months Ended | |||||||||||
June 30, 2019 | March 31, 2019 | June 30, 2018 | |||||||||
Net revenue | $ | 82,507 | $ | 84,635 | $ | 101,533 | |||||
Cost of net revenue | 38,427 | 39,558 | 45,203 | ||||||||
Gross profit | 44,080 | 45,077 | 56,330 | ||||||||
Operating expenses: | |||||||||||
Research and development | 24,304 | 27,399 | 30,211 | ||||||||
Selling, general and administrative | 22,327 | 23,591 | 24,501 | ||||||||
Restructuring charges | 416 | 1,917 | 1,865 | ||||||||
Total operating expenses | 47,047 | 52,907 | 56,577 | ||||||||
Loss from operations | (2,967 | ) | (7,830 | ) | (247 | ) | |||||
Interest income | 192 | 147 | 19 | ||||||||
Interest expense | (2,853 | ) | (2,975 | ) | (3,694 | ) | |||||
Other income (expense), net | (14 | ) | (655 | ) | 725 | ||||||
Total interest and other expense, net | (2,675 | ) | (3,483 | ) | (2,950 | ) | |||||
Loss before income taxes | (5,642 | ) | (11,313 | ) | (3,197 | ) | |||||
Income tax provision (benefit) | (3,413 | ) | (6,462 | ) | 11,225 | ||||||
Net loss | $ | (2,229 | ) | $ | (4,851 | ) | $ | (14,422 | ) | ||
Net loss per share: | |||||||||||
Basic | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.21 | ) | ||
Diluted | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.21 | ) | ||
Shares used to compute net loss per share: | |||||||||||
Basic | 70,917 | 69,968 | 68,335 | ||||||||
Diluted | 70,917 | 69,968 | 68,335 |
Six Months Ended | |||||||
June 30, 2019 | June 30, 2018 | ||||||
Net revenue | $ | 167,142 | $ | 212,360 | |||
Cost of net revenue | 77,985 | 93,362 | |||||
Gross profit | 89,157 | 118,998 | |||||
Operating expenses: | |||||||
Research and development | 51,703 | 61,332 | |||||
Selling, general and administrative | 45,918 | 51,618 | |||||
Restructuring charges | 2,333 | 1,865 | |||||
Total operating expenses | 99,954 | 114,815 | |||||
Income (loss) from operations | (10,797 | ) | 4,183 | ||||
Interest income | 339 | 37 | |||||
Interest expense | (5,828 | ) | (7,588 | ) | |||
Other income (expense), net | (669 | ) | 154 | ||||
Total interest and other expense, net | (6,158 | ) | (7,397 | ) | |||
Loss before income taxes | (16,955 | ) | (3,214 | ) | |||
Income tax provision (benefit) | (9,875 | ) | 9,361 | ||||
Net loss | $ | (7,080 | ) | $ | (12,575 | ) | |
Net loss per share: | |||||||
Basic | $ | (0.10 | ) | $ | (0.18 | ) | |
Diluted | $ | (0.10 | ) | $ | (0.18 | ) | |
Shares used to compute net loss per share: | |||||||
Basic | 70,445 | 68,008 | |||||
Diluted | 70,445 | 68,008 |
Three Months Ended | |||||||||||
June 30, 2019 | March 31, 2019 | June 30, 2018 | |||||||||
Operating Activities | |||||||||||
Net loss | $ | (2,229 | ) | $ | (4,851 | ) | $ | (14,422 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Amortization and depreciation | 16,646 | 16,863 | 20,051 | ||||||||
Amortization of debt issuance costs and accretion of discount on debt and leases | 391 | 402 | 287 | ||||||||
Stock-based compensation | 8,207 | 7,747 | 7,309 | ||||||||
Deferred income taxes | (4,600 | ) | (6,476 | ) | (1,289 | ) | |||||
Loss on disposal of property and equipment | 11 | 35 | — | ||||||||
Impairment of leasehold improvements | — | 1,442 | 700 | ||||||||
Impairment of long-lived assets | — | 2,182 | — | ||||||||
Gain on extinguishment of lease liabilities | — | (2,880 | ) | — | |||||||
(Gain) loss on foreign currency | (54 | ) | 567 | (828 | ) | ||||||
Excess tax benefits on stock-based awards | (2,074 | ) | (1,737 | ) | (318 | ) | |||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 3,022 | (142 | ) | 6,979 | |||||||
Inventory | (122 | ) | (1,015 | ) | 1,420 | ||||||
Prepaid expenses and other assets | (648 | ) | 604 | 2,213 | |||||||
Leased right-of-use assets | 981 | 645 | — | ||||||||
Accounts payable, accrued expenses and other current liabilities | 2,961 | 1,921 | 11,540 | ||||||||
Accrued compensation | (209 | ) | 893 | 1,401 | |||||||
Accrued price protection liability | (7,649 | ) | 2,489 | (132 | ) | ||||||
Lease liabilities | (2,179 | ) | (2,125 | ) | — | ||||||
Other long-term liabilities | (11 | ) | (519 | ) | 913 | ||||||
Net cash provided by operating activities | 12,444 | 16,045 | 35,824 | ||||||||
Investing Activities | |||||||||||
Purchases of property and equipment | (524 | ) | (2,155 | ) | (2,423 | ) | |||||
Net cash used in investing activities | (524 | ) | (2,155 | ) | (2,423 | ) | |||||
Financing Activities | |||||||||||
Repayment of debt | (15,000 | ) | (15,000 | ) | (18,000 | ) | |||||
Net proceeds from issuance of common stock | 3,305 | 2,628 | 3,036 | ||||||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (5,408 | ) | (4,419 | ) | (1,448 | ) | |||||
Net cash used in financing activities | (17,103 | ) | (16,791 | ) | (16,412 | ) | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 354 | 577 | 793 | ||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (4,829 | ) | (2,324 | ) | 17,782 | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 71,867 | 74,191 | 57,333 | ||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 67,038 | $ | 71,867 | $ | 75,115 |
Six Months Ended | |||||||
June 30, 2019 | June 30, 2018 | ||||||
Operating Activities | |||||||
Net loss | $ | (7,080 | ) | $ | (12,575 | ) | |
Adjustments to reconcile net loss to cash provided by operating activities: | |||||||
Amortization and depreciation | 33,509 | 40,135 | |||||
Amortization of debt issuance costs and accretion of discount on debt and leases | 793 | 574 | |||||
Stock-based compensation | 15,954 | 15,782 | |||||
Deferred income taxes | (11,076 | ) | (3,621 | ) | |||
Loss on disposal of property and equipment | 46 | — | |||||
Impairment of leasehold improvements | 1,442 | 700 | |||||
Impairment of long-lived assets | 2,182 | — | |||||
Gain on extinguishment of lease liabilities | (2,880 | ) | — | ||||
(Gain) loss on foreign currency | 513 | (357 | ) | ||||
Excess tax benefits on stock-based awards | (3,811 | ) | (1,115 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 2,880 | (17,554 | ) | ||||
Inventory | (1,137 | ) | 9,096 | ||||
Prepaid expenses and other assets | (44 | ) | 3,216 | ||||
Leased right-of-use assets | 1,626 | — | |||||
Accounts payable, accrued expenses and other current liabilities | 4,882 | 11,119 | |||||
Accrued compensation | 684 | 3,903 | |||||
Deferred revenue and deferred profit | — | (138 | ) | ||||
Accrued price protection liability | (5,160 | ) | (1,491 | ) | |||
Lease liabilities | (4,304 | ) | — | ||||
Other long-term liabilities | (530 | ) | 121 | ||||
Net cash provided by operating activities | 28,489 | 47,795 | |||||
Investing Activities | |||||||
Purchases of property and equipment | (2,679 | ) | (4,804 | ) | |||
Net cash used in investing activities | (2,679 | ) | (4,804 | ) | |||
Financing Activities | |||||||
Repayment of debt | (30,000 | ) | (43,000 | ) | |||
Net proceeds from issuance of common stock | 5,933 | 4,016 | |||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (9,827 | ) | (3,839 | ) | |||
Net cash used in financing activities | (33,894 | ) | (42,823 | ) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 931 | 535 | |||||
Increase (decrease) in cash, cash equivalents and restricted cash | (7,153 | ) | 703 | ||||
Cash, cash equivalents and restricted cash at beginning of period | 74,191 | 74,412 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 67,038 | $ | 75,115 |
June 30, 2019 | March 31, 2019 | June 30, 2018 (1) | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 66,629 | $ | 71,102 | $ | 74,059 | |||||
Short-term restricted cash | 344 | 347 | 345 | ||||||||
Accounts receivable, net | 56,618 | 59,639 | 83,648 | ||||||||
Inventory | 42,875 | 42,753 | 44,338 | ||||||||
Prepaid expenses and other current assets | 6,184 | 5,479 | 7,305 | ||||||||
Total current assets | 172,650 | 179,320 | 209,695 | ||||||||
Long-term restricted cash | 65 | 418 | 711 | ||||||||
Property and equipment, net | 15,738 | 16,987 | 20,886 | ||||||||
Leased right-of-use assets | 20,624 | 21,543 | — | ||||||||
Intangible assets, net | 216,342 | 230,634 | 281,017 | ||||||||
Goodwill | 238,330 | 238,330 | 238,330 | ||||||||
Deferred tax assets | 62,667 | 58,067 | 42,995 | ||||||||
Other long-term assets | 2,744 | 3,583 | 4,732 | ||||||||
Total assets | $ | 729,160 | $ | 748,882 | $ | 798,366 | |||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities | $ | 66,918 | $ | 73,483 | $ | 80,160 | |||||
Long-term lease liabilities | 16,515 | 18,132 | 4,538 | ||||||||
Long-term debt | 226,335 | 241,044 | 305,183 | ||||||||
Other long-term liabilities | 8,016 | 8,019 | 8,564 | ||||||||
Stockholders’ equity | 411,376 | 408,204 | 399,921 | ||||||||
Total liabilities and stockholders’ equity | $ | 729,160 | $ | 748,882 | $ | 798,366 |
Three Months Ended | |||||||||||
June 30, 2019 | March 31, 2019 | June 30, 2018 | |||||||||
GAAP gross profit | $ | 44,080 | $ | 45,077 | $ | 56,330 | |||||
Stock-based compensation | 147 | 130 | 120 | ||||||||
Performance based equity | — | 73 | 47 | ||||||||
Amortization of purchased intangible assets | 8,478 | 8,424 | 8,968 | ||||||||
Depreciation of fixed asset step-up | — | — | 96 | ||||||||
Non-GAAP gross profit | 52,705 | 53,704 | 65,561 | ||||||||
GAAP R&D expenses | 24,304 | 27,399 | 30,211 | ||||||||
Stock-based compensation | (4,222 | ) | (4,213 | ) | (4,454 | ) | |||||
Performance based equity | — | (925 | ) | (1,297 | ) | ||||||
Depreciation of fixed asset step-up | — | (6 | ) | (324 | ) | ||||||
Non-GAAP R&D expenses | 20,082 | 22,255 | 24,136 | ||||||||
GAAP SG&A expenses | 22,327 | 23,591 | 24,501 | ||||||||
Stock-based compensation | (3,823 | ) | (3,404 | ) | (2,735 | ) | |||||
Performance based equity | — | (939 | ) | (730 | ) | ||||||
Amortization of purchased intangible assets | (5,792 | ) | (5,798 | ) | (7,994 | ) | |||||
Depreciation of fixed asset step-up | — | — | (12 | ) | |||||||
IP litigation costs, net | (13 | ) | — | (19 | ) | ||||||
Non-GAAP SG&A expenses | 12,699 | 13,450 | 13,011 | ||||||||
GAAP restructuring expenses | 416 | 1,917 | 1,865 | ||||||||
Restructuring charges | (416 | ) | (1,917 | ) | (1,865 | ) | |||||
Non-GAAP restructuring expenses | — | — | — | ||||||||
GAAP loss from operations | (2,967 | ) | (7,830 | ) | (247 | ) | |||||
Total non-GAAP adjustments | 22,891 | 25,829 | 28,661 | ||||||||
Non-GAAP income from operations | 19,924 | 17,999 | 28,414 | ||||||||
GAAP and non-GAAP interest and other income (expense), net | (2,675 | ) | (3,483 | ) | (2,950 | ) | |||||
GAAP loss before income taxes | (5,642 | ) | (11,313 | ) | (3,197 | ) | |||||
Total non-GAAP adjustments | 22,891 | 25,829 | 28,661 | ||||||||
Non-GAAP income before income taxes | 17,249 | 14,516 | 25,464 | ||||||||
GAAP income tax provision (benefit) | (3,413 | ) | (6,462 | ) | 11,225 | ||||||
Adjustment for non-cash tax benefits/expenses and effects of the Tax Act | 4,621 | 7,478 | (9,443 | ) | |||||||
Non-GAAP income tax provision | 1,208 | 1,016 | 1,782 | ||||||||
GAAP net loss | (2,229 | ) | (4,851 | ) | (14,422 | ) | |||||
Total non-GAAP adjustments before income taxes | 22,891 | 25,829 | 28,661 | ||||||||
Less: total tax adjustments | 4,621 | 7,478 | (9,443 | ) | |||||||
Non-GAAP net income | $ | 16,041 | $ | 13,500 | $ | 23,682 | |||||
Shares used in computing non-GAAP basic net income per share | 70,917 | 69,968 | 68,335 | ||||||||
Shares used in computing non-GAAP diluted net income per share | 72,389 | 71,900 | 70,473 | ||||||||
Non-GAAP basic net income per share | $ | 0.23 | $ | 0.19 | $ | 0.35 | |||||
Non-GAAP diluted net income per share | $ | 0.22 | $ | 0.19 | $ | 0.34 |
Six Months Ended | |||||||
June 30, 2019 | June 30, 2018 | ||||||
GAAP gross profit | $ | 89,157 | $ | 118,998 | |||
Stock-based compensation | 277 | 226 | |||||
Performance based equity | 73 | 125 | |||||
Amortization of purchased intangible assets | 16,902 | 17,937 | |||||
Depreciation of fixed asset step-up | — | 208 | |||||
Non-GAAP gross profit | 106,409 | 137,494 | |||||
GAAP R&D expenses | 51,703 | 61,332 | |||||
Stock-based compensation | (8,435 | ) | (8,828 | ) | |||
Performance based equity | (925 | ) | (2,437 | ) | |||
Depreciation of fixed asset step-up | (6 | ) | (653 | ) | |||
Non-GAAP R&D expenses | 42,337 | 49,414 | |||||
GAAP SG&A expenses | 45,918 | 51,617 | |||||
Stock-based compensation | (7,227 | ) | (6,728 | ) | |||
Performance based equity | (939 | ) | (1,779 | ) | |||
Amortization of purchased intangible assets | (11,590 | ) | (15,988 | ) | |||
Depreciation of fixed asset step-up | — | (22 | ) | ||||
IP litigation costs, net | (13 | ) | (61 | ) | |||
Non-GAAP SG&A expenses | 26,149 | 27,039 | |||||
GAAP restructuring expenses | 2,333 | 1,865 | |||||
Restructuring charges | (2,333 | ) | (1,865 | ) | |||
Non-GAAP restructuring expenses | — | — | |||||
GAAP income (loss) from operations | (10,797 | ) | 4,183 | ||||
Total non-GAAP adjustments | 48,720 | 56,857 | |||||
Non-GAAP income from operations | 37,923 | 61,041 | |||||
GAAP and non-GAAP interest and other income (expense), net | (6,158 | ) | (7,397 | ) | |||
GAAP loss before income taxes | (16,955 | ) | (3,214 | ) | |||
Total non-GAAP adjustments | 48,720 | 56,857 | |||||
Non-GAAP income before income taxes | 31,765 | 53,643 | |||||
GAAP income tax provision (benefit) | (9,875 | ) | 9,361 | ||||
Adjustment for non-cash tax benefits/expenses and effects of the Tax Act | 12,099 | (5,606 | ) | ||||
Non-GAAP income tax provision | 2,224 | 3,755 | |||||
GAAP net loss | (7,080 | ) | (12,575 | ) | |||
Total non-GAAP adjustments before income taxes | 48,720 | 56,857 | |||||
Less: total tax adjustments | 12,099 | (5,606 | ) | ||||
Non-GAAP net income | $ | 29,541 | $ | 49,888 | |||
Shares used in computing non-GAAP basic net income per share | 70,445 | 68,008 | |||||
Shares used in computing non-GAAP diluted net income per share | 72,147 | 70,460 | |||||
Non-GAAP basic net income per share | $ | 0.42 | $ | 0.73 | |||
Non-GAAP diluted net income per share | $ | 0.41 | $ | 0.71 |
Three Months Ended | ||||||||
June 30, 2019 | March 31, 2019 | June 30, 2018 | ||||||
GAAP gross profit | 53.4 | % | 53.3 | % | 55.5 | % | ||
Stock-based compensation | 0.2 | % | 0.2 | % | 0.1 | % | ||
Performance based equity | — | % | 0.1 | % | — | % | ||
Amortization of purchased intangible assets | 10.3 | % | 10.0 | % | 8.8 | % | ||
Depreciation of fixed asset step-up | — | % | — | % | 0.1 | % | ||
Non-GAAP gross profit | 63.9 | % | 63.5 | % | 64.6 | % | ||
GAAP R&D expenses | 29.5 | % | 32.4 | % | 29.8 | % | ||
Stock-based compensation | (5.1 | )% | (5.0 | )% | (4.4 | )% | ||
Performance based equity | — | % | (1.1 | )% | (1.3 | )% | ||
Depreciation of fixed asset step-up | — | % | — | % | (0.4 | )% | ||
Non-GAAP R&D expenses | 24.3 | % | 26.3 | % | 23.8 | % | ||
GAAP SG&A expenses | 27.1 | % | 27.9 | % | 24.1 | % | ||
Stock-based compensation | (4.6 | )% | (4.0 | )% | (2.7 | )% | ||
Performance based equity | — | % | (1.1 | )% | (0.7 | )% | ||
Amortization of purchased intangible assets | (7.0 | )% | (6.9 | )% | (7.9 | )% | ||
Depreciation of fixed asset step-up | — | % | — | % | — | % | ||
IP litigation costs, net | — | % | — | % | — | % | ||
Non-GAAP SG&A expenses | 15.4 | % | 15.9 | % | 12.8 | % | ||
GAAP restructuring expenses | 0.5 | % | 2.3 | % | 1.8 | % | ||
Restructuring charges | (0.5 | )% | (2.3 | )% | (1.8 | )% | ||
Non-GAAP restructuring expenses | — | % | — | % | — | % | ||
GAAP loss from operations | (3.6 | )% | (9.3 | )% | (0.2 | )% | ||
Total non-GAAP adjustments | 27.7 | % | 30.5 | % | 28.2 | % | ||
Non-GAAP income from operations | 24.1 | % | 21.3 | % | 28.0 | % | ||
GAAP and non-GAAP interest and other income (expense), net | (3.2 | )% | (4.1 | )% | (2.9 | )% | ||
GAAP loss before income taxes | (6.8 | )% | (13.4 | )% | (3.1 | )% | ||
Total non-GAAP adjustments before income taxes | 27.7 | % | 30.5 | % | 28.2 | % | ||
Non-GAAP income before income taxes | 20.9 | % | 17.2 | % | 25.1 | % | ||
GAAP income tax provision (benefit) | (4.1 | )% | (7.6 | )% | 11.1 | % | ||
Adjustment for non-cash tax benefits/expenses and the effects of the Tax Act | 5.6 | % | 8.8 | % | (9.3 | )% | ||
Non-GAAP income tax provision | 1.5 | % | 1.2 | % | 1.8 | % | ||
GAAP net loss | (2.7 | )% | (5.7 | )% | (14.2 | )% | ||
Total non-GAAP adjustments before income taxes | 27.7 | % | 30.5 | % | 28.2 | % | ||
Less: total tax adjustments | 5.6 | % | 8.8 | % | (9.3 | )% | ||
Non-GAAP net income | 19.4 | % | 16.0 | % | 23.3 | % |
Six Months Ended | |||||
June 30, 2019 | June 30, 2018 | ||||
GAAP gross profit | 53.3 | % | 56.0 | % | |
Stock-based compensation | 0.2 | % | 0.1 | % | |
Performance based equity | — | % | 0.1 | % | |
Amortization of purchased intangible assets | 10.1 | % | 8.4 | % | |
Depreciation of fixed asset step-up | — | % | 0.1 | % | |
Non-GAAP gross profit | 63.7 | % | 64.7 | % | |
GAAP R&D expenses | 30.9 | % | 28.9 | % | |
Stock-based compensation | (5.0 | )% | (4.2 | )% | |
Performance based equity | (0.6 | )% | (1.1 | )% | |
Depreciation of fixed asset step-up | — | % | (0.3 | )% | |
Non-GAAP R&D expenses | 25.3 | % | 23.3 | % | |
GAAP SG&A expenses | 27.5 | % | 24.3 | % | |
Stock-based compensation | (4.3 | )% | (3.2 | )% | |
Performance based equity | (0.6 | )% | (0.8 | )% | |
Amortization of purchased intangible assets | (6.9 | )% | (7.5 | )% | |
Depreciation of fixed asset step-up | — | % | — | % | |
IP litigation costs, net | — | % | — | % | |
Non-GAAP SG&A expenses | 15.6 | % | 12.7 | % | |
GAAP restructuring expenses | 1.4 | % | 0.9 | % | |
Restructuring charges | (1.4 | )% | (0.9 | )% | |
Non-GAAP restructuring expenses | — | % | — | % | |
GAAP income (loss) from operations | (6.5 | )% | 2.0 | % | |
Total non-GAAP adjustments | 29.1 | % | 26.8 | % | |
Non-GAAP income from operations | 22.7 | % | 28.7 | % | |
GAAP and non-GAAP interest and other income (expense), net | (3.7 | )% | (3.5 | )% | |
GAAP loss before income taxes | (10.1 | )% | (1.5 | )% | |
Total non-GAAP adjustments before income taxes | 29.1 | % | 26.8 | % | |
Non-GAAP income before income taxes | 19.0 | % | 25.3 | % | |
GAAP income tax provision (benefit) | (5.9 | )% | 4.4 | % | |
Adjustment for non-cash tax benefits/expenses and the effects of the Tax Act | 7.2 | % | (2.6 | )% | |
Non-GAAP income tax provision | 1.3 | % | 1.8 | % | |
GAAP net loss | (4.2 | )% | (5.9 | )% | |
Total non-GAAP adjustments before income taxes | 29.1 | % | 26.8 | % | |
Less: total tax adjustments | 7.2 | % | (2.6 | )% | |
Non-GAAP net income | 17.7 | % | 23.5 | % |