MaxLinear, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Net Income Per Share

Net Income Per Share

3 Months Ended

Mar. 31, 2023

Basic earnings per share, or EPS, is calculated by dividing net income by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing net income by the weighted-average number of common shares outstanding for the period and the weighted-average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, common stock options, restricted stock units and restricted stock awards are considered to be common stock equivalents and are only included in the calculation of diluted EPS when their effect is dilutive. In periods in which the Company has a net loss, dilutive common stock equivalents are excluded from the calculation of diluted EPS.

The table below presents the computation of basic and diluted EPS:


	Three Months Ended March 31,
	2023		2022
	(in thousands, except per share amounts)
Numerator:
Net income	$	9,533	$	33,586
Denominator:
Weighted average common shares outstanding—basic	79,471		77,192
Dilutive common stock equivalents	1,867		3,449
Weighted average common shares outstanding—diluted	81,338		80,641
Net income per share:
Basic	$	0.12	$	0.44
Diluted	$	0.12	$	0.42

For the three months ended March 31, 2023 and 2022, the Company excluded common stock equivalents for outstanding stock-based awards, which represented potentially dilutive securities of 2.2 million and 0.9 million, respectively, from the calculation of diluted net income per share due to their anti-dilutive nature.