Exhibit 99.1
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FOR IMMEDIATE RELEASE

MaxLinear, Inc. Announces Second Quarter 2020 Financial Results
Carlsbad, Calif. – July 23, 2020 – MaxLinear, Inc. (NYSE: MXL), a leading provider of RF, analog and mixed-signal integrated circuits for the connected home, wired and wireless infrastructure, and industrial and multi-market applications, today announced financial results for the second quarter ended June 30, 2020.

Second Quarter Financial Highlights
GAAP basis:
•Net revenue was $65.2 million, up 5% sequentially, and down 21% year-on-year.
•GAAP gross margin was 50.2%, compared to 49.6% in the prior quarter, and 53.4% in the year-ago quarter.
•GAAP operating expenses were $55.5 million in the second quarter 2020, or 85% of net revenue, compared to $50.9 million in the prior quarter, or 82% of net revenue, and $47.0 million in the year-ago quarter, or 57% of net revenue.
•GAAP loss from operations was 35% of revenue, compared to loss from operations of 32% in the prior quarter, and loss from operations of 4% in the year-ago quarter.
•Net cash flow provided by operating activities was $9.3 million, compared to $6.6 million in the prior quarter, and $12.4 million in the year-ago quarter.
•GAAP diluted loss per share was $0.30, compared to diluted loss per share of $0.21 in the prior quarter, and diluted loss per share of $0.03 in the year-ago quarter.
Non-GAAP basis:
•Non-GAAP gross margin was 63.7%. This compares to 63.8% in the prior quarter, and 63.9% in the year-ago quarter.
•Non-GAAP operating expenses were $32.6 million, or 50% of revenue, compared to $31.7 million or 51% of revenue in the prior quarter, and $32.8 million or 40% of revenue in the year-ago quarter.
•Non-GAAP income from operations was 14% of revenue, compared to 13% in the prior quarter, and 24% in the year-ago quarter.
•Non-GAAP diluted earnings per share was $0.09, compared to diluted earnings per share of $0.07 in the prior quarter, and diluted earnings per share of $0.22 in the year-ago quarter.

Management Commentary

“In the second quarter, revenue results were in line with our recent preliminary revenue guidance, gross margin was strong, and operating expenses were tightly managed to below the mid-point of our guidance. Our business showed solid improvements due to stronger-than-expected revenues in broadband driven by demand uptick, as well as analog product sales recovery. The work-from-home environment has strongly benefited our connected home business owing to noticeable inflection in bandwidth demand at home. The infrastructure business also saw meaningful quarterly improvements over previous results, supporting our positive outlook on the new product ramps. Finally, the high-performance analog products selling into our industrial, multi-market segment recovered extremely well in the quarter with impressive results,” commented Kishore Seendripu, Ph.D., Chairman and CEO.

“Additionally, MaxLinear’s acquisition of Intel’s Home Gateway Platform Division is on track to close during the current quarter ending September 30, 2020,” continued Dr. Seendripu.

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Third Quarter 2020 Business Outlook

The company expects revenue in the third quarter 2020 to be approximately $72 million to $76 million. The Company also estimates the following:
•GAAP gross margin of approximately 51.5% to 52.5%;
•Non-GAAP gross margin of approximately 63.5% to 64.5%;
•GAAP operating expenses of approximately $60.0 million to $61.0 million; and
•Non-GAAP operating expenses of approximately $32.5 million to $33.5 million.

Webcast and Conference Call

MaxLinear will host its second quarter financial results conference call today, July 23, 2020 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 6, 2020. A replay of the conference call will also be available until August 6, 2020 by dialing US toll free: 1-877-660-6853 / International: 1-201-612-7415 and Conference ID#: 13707071.
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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 2020 revenue, gross margins, and operating expenses) and statements concerning expectations of potential developments in our target markets, including management’s views with respect to the prospects for and trends in our connected home and 5G wireless and fiber-optic high-speed interconnect infrastructure markets. 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 and our expectations with respect to the impact of our pending acquisition of the Home Gateway Platform Division of Intel Corporation, which we refer to as the WiFi and Broadband assets business. With respect to our pending acquisition of the WiFi and Broadband assets business, we face particular risks associated with our ability to close and complete the acquisition and integrate the acquired business and maintain relationships with employees, customers, and vendors. The WiFi and Broadband assets business operates in jurisdictions materially affected by the novel coronavirus (COVID-19) pandemic, which enhances integration risks, particularly relating to employee hiring and retention. The WiFi and Broadband assets business has operations that differ from those of MaxLinear, and we may be unable to realize anticipated strategic, financial, and operating synergies. In addition, we anticipate incurring substantial incremental acquisition-related indebtedness, which will enhance specific risks relating to our ability to service interest and principal payments on our combined 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, issue guarantees, create liens, make certain restricted payments or repay certain obligations or to pursue future acquisitions. Additional risks and uncertainties affecting our business and future operating results and our anticipated acquisition include, without limitation, intense competition in our industry; our dependence on a limited number of customers for a substantial portion of our revenues; 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; 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; impact of the COVID-19 pandemic on customer demand and on our business and global financial markets in general; potential decreases in average selling prices for our products; 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; our lack of long-term supply contracts and dependence on limited sources of supply; uncertainties concerning how end user markets for our products will develop, including in particular markets we have entered more recently such as the 5G wireless and fiber-optic data center high-speed interconnect infrastructure markets but also existing markets such as connected home; and uncertainties concerning the outcome of global trade negotiations, export control limitations, and heightened geopolitical risks generally.
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 most recent Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 5, 2020, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 filed with the SEC on April 29, 2020, 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, 2020, which we expect to file shortly. All forward-looking statements are based on the estimates, projections and assumptions of management as of July 23, 2020, 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 2020, which we currently intend to settle in shares of our common stock; (iii) accruals related to our performance based bonus plan for 2019 which we settled in shares of common stock in 2020; (iv) amortization of purchased intangible assets; (v) depreciation of fixed assets step-up; (vi) acquisition costs related to our recently announced acquisition; (vii) professional fees and settlement costs related to IP and commercial litigation matters; (viii) severance and other restructuring charges; (ix) impairment losses on intangible assets; and (x) non-cash income tax benefits and expenses. These non-GAAP measures are not in accordance with
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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.
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 2019 performance periods were settled through the issuance of shares of common stock under our equity incentive plans in March 2020. We currently expect that bonus awards under our fiscal 2020 program will be settled in common stock in the first quarter of fiscal 2021.
Expenses incurred in relation to acquisitions include amortization of purchased intangible assets, depreciation of step-up of property and equipment to fair value, and acquisition costs primarily consisting of professional and consulting fees.
Impairment losses relate to certain intangible assets.
Restructuring charges incurred are related to our restructuring plans which eliminate redundancies and primarily include severance and restructuring costs related to 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, we have not provided a reconciliation for non-GAAP guidance provided for the third quarter 2020.
About MaxLinear, Inc.

MaxLinear, Inc. (NYSE:MXL) is a leading provider of radio frequency (RF), analog and mixed-signal integrated circuits for the connected home, 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:
Steven Litchfield
Tel: 949-333-0080
slitchfield@maxlinear.com


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


Three Months Ended
June 30, 2020March 31, 2020June 30, 2019
Net revenue$65,220  $62,027  $82,507  
Cost of net revenue32,477  31,265  38,427  
Gross profit32,743  30,762  44,080  
Operating expenses:
Research and development27,984  25,689  24,304  
Selling, general and administrative27,470  24,632  22,327  
Impairment losses—  86  —  
Restructuring charges64  489  416  
Total operating expenses55,518  50,896  47,047  
Loss from operations(22,775) (20,134) (2,967) 
Interest income31  225  192  
Interest expense(2,183) (2,476) (2,853) 
Other income (expense), net(81) 180  (14) 
Total interest and other income (expense), net(2,233) (2,071) (2,675) 
Loss before income taxes(25,008) (22,205) (5,642) 
Income tax benefit(3,201) (6,736) (3,413) 
Net loss$(21,807) $(15,469) $(2,229) 
Net loss per share:
Basic$(0.30) $(0.21) $(0.03) 
Diluted$(0.30) $(0.21) $(0.03) 
Shares used to compute net loss per share:
Basic72,740  72,039  70,917  
Diluted72,740  72,039  70,917  


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

Six Months Ended
June 30, 2020June 30, 2019
Net revenue$127,247  $167,142  
Cost of net revenue63,742  77,985  
Gross profit63,505  89,157  
Operating expenses:
Research and development53,673  51,703  
Selling, general and administrative52,102  45,918  
Impairment losses86  —  
Restructuring charges553  2,333  
Total operating expenses106,414  99,954  
Loss from operations(42,909) (10,797) 
Interest income256  339  
Interest expense(4,659) (5,828) 
Other income (expense), net99  (669) 
Total interest and other income (expense), net(4,304) (6,158) 
Loss before income taxes(47,213) (16,955) 
Income tax benefit(9,937) (9,875) 
Net loss$(37,276) $(7,080) 
Net loss per share:
Basic$(0.51) $(0.10) 
Diluted$(0.51) $(0.10) 
Shares used to compute net loss per share:
Basic72,389  70,445  
Diluted72,389  70,445  


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


Three Months Ended
June 30, 2020March 31, 2020June 30, 2019
Operating Activities
Net loss$(21,807) $(15,469) $(2,229) 
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization and depreciation16,532  16,733  16,646  
Impairment losses—  86  —  
Amortization of debt issuance costs and accretion of discount on debt and leases397  410  391  
Stock-based compensation12,085  6,827  8,207  
Deferred income taxes(2,879) (6,208) (4,600) 
Loss on disposal of property and equipment—  —  11  
Impairment of leasehold improvements—  163  —  
Impairment of leased right-of-use assets—  44  —  
(Gain) loss on foreign currency20  (246) (54) 
Excess tax deficiencies (benefits) on stock-based awards(472) 94  (2,074) 
Changes in operating assets and liabilities:
Accounts receivable3,362  5,615  3,022  
Inventory(3,184) 353  (122) 
Prepaid expenses and other assets(669) 1,443  (648) 
Leased right-of-use assets(314) 640  981  
Accounts payable, accrued expenses and other current liabilities6,020  (785) 2,961  
Accrued compensation4,396  3,361  (209) 
Accrued price protection liability(2,132) (4,537) (7,649) 
Lease liabilities(1,279) (1,430) (2,179) 
Other long-term liabilities(816) (446) (11) 
Net cash provided by operating activities9,260  6,648  12,444  
Investing Activities
Purchases of property and equipment(3,901) (1,035) (524) 
Purchases of intangible assets(13) —  —  
Net cash used in investing activities(3,914) (1,035) (524) 
Financing Activities
Repayment of debt—  —  (15,000) 
Net proceeds from issuance of common stock4,154  488  3,305  
Minimum tax withholding paid on behalf of employees for restricted stock units(1,024) (475) (5,408) 
Net cash provided by (used in) financing activities3,130  13  (17,103) 
Effect of exchange rate changes on cash, cash equivalents and restricted cash513  (303) 354  
Increase (decrease) in cash, cash equivalents and restricted cash8,989  5,323  (4,829) 
Cash, cash equivalents and restricted cash at beginning of period98,440  93,117  71,867  
Cash, cash equivalents and restricted cash at end of period$107,429  $98,440  $67,038  




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

Six months ended
June 30, 2020June 30, 2019
Operating Activities
Net loss$(37,276) $(7,080) 
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization and depreciation33,265  33,509  
Impairment losses86  —  
Amortization of debt issuance costs and accretion of discount on debt and leases807  793  
Stock-based compensation18,912  15,954  
Deferred income taxes(9,087) (11,076) 
Loss on disposal of property and equipment—  46  
Impairment of leasehold improvements163  1,442  
Impairment of leased right-of-use assets44  2,182  
Gain on extinguishment of lease liabilities—  (2,880) 
(Gain) loss on foreign currency(226) 513  
Excess tax benefits on stock-based awards(378) (3,811) 
Changes in operating assets and liabilities:
Accounts receivable8,977  2,880  
Inventory(2,831) (1,137) 
Prepaid expenses and other assets774  (44) 
Leased right-of-use assets326  1,626  
Accounts payable, accrued expenses and other current liabilities5,235  4,882  
Accrued compensation7,757  684  
Accrued price protection liability(6,669) (5,160) 
Lease liabilities(2,709) (4,304) 
Other long-term liabilities(1,262) (530) 
Net cash provided by operating activities15,908  28,489  
Investing Activities
Purchases of property and equipment(4,936) (2,679) 
Purchases of intangible assets(13) —  
Net cash used in investing activities(4,949) (2,679) 
Financing Activities
Repayment of debt—  (30,000) 
Net proceeds from issuance of common stock4,642  5,933  
Minimum tax withholding paid on behalf of employees for restricted stock units
(1,499) (9,827) 
Net cash provided by (used in) financing activities3,143  (33,894) 
Effect of exchange rate changes on cash, cash equivalents and restricted cash210  931  
Increase (decrease) in cash, cash equivalents and restricted cash14,312  (7,153) 
Cash, cash equivalents and restricted cash at beginning of period93,117  74,191  
Cash, cash equivalents and restricted cash at end of period$107,429  $67,038  

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


June 30, 2020March 31, 2020June 30, 2019
Assets
Current assets:
Cash and cash equivalents$107,362  $98,373  $66,629  
Short-term restricted cash9  10  344  
Accounts receivable, net41,434  44,796  56,618  
Inventory34,284  31,088  42,875  
Prepaid expenses and other current assets7,489  6,342  6,184  
Total current assets190,578  180,609  172,650  
Long-term restricted cash58  57  65  
Property and equipment, net18,059  15,751  15,738  
Leased right-of-use assets8,942  9,864  20,624  
Intangible assets, net159,441  173,570  216,342  
Goodwill238,330  238,330  238,330  
Deferred tax assets76,371  73,492  62,667  
Other long-term assets1,281  1,752  2,744  
Total assets$693,060  $693,425  $729,160  
Liabilities and stockholders’ equity
Current liabilities$69,964  $62,428  $66,918  
Long-term lease liabilities6,833  8,029  16,515  
Long-term debt207,486  207,197  226,335  
Other long-term liabilities6,802  7,614  8,016  
Stockholders’ equity401,975  408,157  411,376  
Total liabilities and stockholders’ equity$693,060  $693,425  $729,160  

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


Three Months Ended
June 30, 2020March 31, 2020June 30, 2019
GAAP gross profit$32,743  $30,762  $44,080  
Stock-based compensation126  148  147  
Performance based equity109  69  —  
Amortization of purchased intangible assets8,581  8,581  8,478  
Non-GAAP gross profit41,559  39,560  52,705  
GAAP R&D expenses27,984  25,689  24,304  
Stock-based compensation(5,040) (3,746) (4,222) 
Performance based equity(2,054) (1,750) —  
Non-GAAP R&D expenses20,890  20,193  20,082  
GAAP SG&A expenses27,470  24,632  22,327  
Stock-based compensation(6,920) (2,933) (3,823) 
Performance based equity(1,144) (1,136) —  
Amortization of purchased intangible assets(5,549) (5,723) (5,792) 
Acquisition costs(2,090) (3,270) —  
IP litigation costs, net(54) (60) (13) 
Non-GAAP SG&A expenses11,713  11,510  12,699  
GAAP impairment losses—  86  —  
Impairment losses—  (86) —  
Non-GAAP impairment losses—  —  —  
GAAP restructuring expenses64  489  416  
Restructuring charges(64) (489) (416) 
Non-GAAP restructuring expenses—  —  —  
GAAP loss from operations(22,775) (20,134) (2,967) 
Total non-GAAP adjustments31,731  27,991  22,891  
Non-GAAP income from operations8,956  7,857  19,924  
GAAP and non-GAAP interest and other income (expense), net(2,233) (2,071) (2,675) 
GAAP loss before income taxes(25,008) (22,205) (5,642) 
Total non-GAAP adjustments31,731  27,991  22,891  
Non-GAAP income before income taxes6,723  5,786  17,249  
GAAP income tax benefit(3,201) (6,736) (3,413) 
Adjustment for non-cash tax benefits/expenses3,605  7,083  4,621  
Non-GAAP income tax provision404  347  1,208  
GAAP net loss(21,807) (15,469) (2,229) 
Total non-GAAP adjustments before income taxes31,731  27,991  22,891  
Less: total tax adjustments3,605  7,083  4,621  
Non-GAAP net income$6,319  $5,439  $16,041  
Shares used in computing non-GAAP basic net income per share72,740  72,039  70,917  
Shares used in computing non-GAAP diluted net income per share73,772  72,673  72,389  
Non-GAAP basic net income per share$0.09  $0.08  $0.23  
Non-GAAP diluted net income per share$0.09  $0.07  $0.22  


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

Six Months Ended
June 30, 2020June 30, 2019
GAAP gross profit$63,505  $89,157  
Stock-based compensation274  277  
Performance based equity178  73  
Amortization of purchased intangible assets17,162  16,902  
Non-GAAP gross profit81,119  106,409  
GAAP R&D expenses53,673  51,703  
Stock-based compensation(8,786) (8,435) 
Performance based equity(3,804) (925) 
Depreciation of fixed asset step-up—  (6) 
Non-GAAP R&D expenses41,083  42,337  
GAAP SG&A expenses52,102  45,918  
Stock-based compensation(9,853) (7,227) 
Performance based equity(2,280) (939) 
Amortization of purchased intangible assets(11,272) (11,590) 
Acquisition costs(5,360) —  
IP litigation costs, net(114) (13) 
Non-GAAP SG&A expenses23,223  26,149  
GAAP impairment losses86  —  
Impairment losses(86) —  
Non-GAAP impairment losses—  —  
GAAP restructuring expenses553  2,333  
Restructuring charges(553) (2,333) 
Non-GAAP restructuring expenses—  —  
GAAP loss from operations(42,909) (10,797) 
Total non-GAAP adjustments59,722  48,720  
Non-GAAP income from operations16,813  37,923  
GAAP and non-GAAP interest and other income (expense), net(4,304) (6,158) 
GAAP loss before income taxes(47,213) (16,955) 
Total non-GAAP adjustments59,722  48,720  
Non-GAAP income before income taxes12,509  31,765  
GAAP income tax benefit(9,937) (9,875) 
Adjustment for non-cash tax benefits/expenses10,688  12,099  
Non-GAAP income tax provision751  2,224  
GAAP net loss(37,276) (7,080) 
Total non-GAAP adjustments before income taxes59,722  48,720  
Less: total tax adjustments10,688  12,099  
Non-GAAP net income$11,758  $29,541  
Shares used in computing non-GAAP basic net income per share72,389  70,445  
Shares used in computing non-GAAP diluted net income per share73,223  72,147  
Non-GAAP basic net income per share$0.16  $0.42  
Non-GAAP diluted net income per share$0.16  $0.41  

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


Three Months Ended
June 30, 2020March 31, 2020June 30, 2019
GAAP gross profit50.2 %49.6 %53.4 %
Stock-based compensation0.2 %0.2 %0.2 %
Performance based equity0.2 %0.1 %— %
Amortization of purchased intangible assets13.2 %13.8 %10.3 %
Non-GAAP gross profit63.7 %63.8 %63.9 %
GAAP R&D expenses42.9 %41.4 %29.5 %
Stock-based compensation(7.7)%(6.0)%(5.1)%
Performance based equity(3.1)%(2.8)%— %
Non-GAAP R&D expenses32.0 %32.6 %24.3 %
GAAP SG&A expenses42.1 %39.7 %27.1 %
Stock-based compensation(10.6)%(4.7)%(4.6)%
Performance based equity(1.8)%(1.8)%— %
Amortization of purchased intangible assets(8.5)%(9.2)%(7.0)%
Acquisition costs(3.2)%(5.3)%— %
IP litigation costs, net(0.1)%(0.1)%— %
Non-GAAP SG&A expenses18.0 %18.6 %15.4 %
GAAP impairment losses— %0.1 %— %
Impairment losses— %(0.1)%— %
Non-GAAP impairment losses— %— %— %
GAAP restructuring expenses0.1 %0.8 %0.5 %
Restructuring charges(0.1)%(0.8)%(0.5)%
Non-GAAP restructuring expenses— %— %— %
GAAP loss from operations(34.9)%(32.5)%(3.6)%
Total non-GAAP adjustments48.7 %45.1 %27.7 %
Non-GAAP income from operations13.7 %12.7 %24.1 %
GAAP interest and other income (expense), net(3.4)%(3.3)%(3.2)%
GAAP loss before income taxes(38.3)%(35.8)%(6.8)%
Total non-GAAP adjustments before income taxes48.7 %45.1 %27.7 %
Non-GAAP income before income taxes10.3 %9.3 %20.9 %
GAAP income tax benefit(4.9)%(10.9)%(4.1)%
Adjustment for non-cash tax benefits/expenses5.5 %11.4 %5.6 %
Non-GAAP income tax provision0.6 %0.6 %1.5 %
GAAP net loss(33.4)%(24.9)%(2.7)%
Total non-GAAP adjustments before income taxes48.7 %45.1 %27.7 %
Less: total tax adjustments5.5 %11.4 %5.6 %
Non-GAAP net income 9.7 %8.8 %19.4 %



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

Six Months Ended
June 30, 2020June 30, 2019
GAAP gross profit49.9 %53.3 %
Stock-based compensation0.2 %0.2 %
Performance based equity0.1 %0.0 %
Amortization of purchased intangible assets13.5 %10.1 %
Non-GAAP gross profit63.7 %63.7 %
GAAP R&D expenses42.2 %30.9 %
Stock-based compensation(6.9)%(5.0)%
Performance based equity(3.0)%(0.6)%
Depreciation of fixed asset step-up— %— %
Non-GAAP R&D expenses32.3 %25.3 %
GAAP SG&A expenses40.9 %27.5 %
Stock-based compensation(7.7)%(4.3)%
Performance based equity(1.8)%(0.6)%
Amortization of purchased intangible assets(8.9)%(6.9)%
Acquisition costs(4.2)%— %
IP litigation costs, net(0.1)%— %
Non-GAAP SG&A expenses18.3 %15.6 %
GAAP impairment losses0.1 %— %
Impairment losses(0.1)%— %
Non-GAAP impairment losses— %— %
GAAP restructuring expenses0.4 %1.4 %
Restructuring charges(0.4)%(1.4)%
Non-GAAP restructuring expenses— %— %
GAAP loss from operations(33.7)%(6.5)%
Total non-GAAP adjustments46.9 %29.1 %
Non-GAAP income from operations13.2 %22.7 %
GAAP interest and other income (expense), net(3.4)%(3.7)%
GAAP loss before income taxes(37.1)%(10.1)%
Total non-GAAP adjustments before income taxes46.9 %29.1 %
Non-GAAP income before income taxes9.8 %19.0 %
GAAP income tax benefit(7.8)%(5.9)%
Adjustment for non-cash tax benefits/expenses8.4 %7.2 %
Non-GAAP income tax provision0.6 %1.3 %
GAAP net loss(29.3)%(4.2)%
Total non-GAAP adjustments before income taxes46.9 %29.1 %
Less: total tax adjustments8.4 %7.2 %
Non-GAAP net income9.2 %17.7 %

13