(1) Includes eight months of Entropic cash flows.
| MAXLINEAR, INC. | ||||||||||||
| UNAUDITED GAAP CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| (in thousands) | ||||||||||||
| December 31, 2016 | September 30, 2016 | December 31, 2015 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 82,896 | $ | 56,076 | $ | 67,956 | ||||||
| Short-term investments, available-for-sale | 47,918 | 42,146 | 43,300 | |||||||||
| Accounts receivable, net | 50,487 | 49,672 | 42,399 | |||||||||
| Inventory | 26,583 | 32,119 | 32,443 | |||||||||
| Prepaid expenses and other current assets | 6,159 | 6,831 | 3,904 | |||||||||
| Total current assets | 214,043 | 186,844 | 190,002 | |||||||||
| Property and equipment, net | 20,549 | 21,950 | 21,858 | |||||||||
| Long-term investments, available-for-sale | 5,991 | 12,020 | 19,242 | |||||||||
| Intangible assets, net | 104,261 | 109,885 | 51,355 | |||||||||
| Goodwill | 76,015 | 75,794 | 49,779 | |||||||||
| Other long-term assets | 1,793 | 1,883 | 2,269 | |||||||||
| Total assets | $ | 422,652 | $ | 408,376 | $ | 334,505 | ||||||
| Liabilities and stockholders’ equity | ||||||||||||
| Current liabilities | $ | 54,543 | $ | 54,491 | $ | 55,832 | ||||||
| Other long-term liabilities | 15,685 | 15,182 | 15,749 | |||||||||
| Total stockholders’ equity | 352,424 | 338,703 | 262,924 | |||||||||
| Total liabilities and stockholders’ equity | $ | 422,652 | $ | 408,376 | $ | 334,505 | ||||||
| MAXLINEAR, INC. | ||||||||||||
| UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS | ||||||||||||
| (in thousands, except per share data) | ||||||||||||
| Three Months Ended | ||||||||||||
| December 31, 2016 | September 30, 2016 | December 31, 2015 | ||||||||||
| GAAP cost of net revenue | $ | 36,733 | $ | 40,820 | $ | 43,189 | ||||||
| Stock-based compensation | (59 | ) | (57 | ) | (44 | ) | ||||||
| Performance based equity | (31 | ) | (23 | ) | (97 | ) | ||||||
| Amortization of inventory step-up | (2,652 | ) | (2,653 | ) | — | |||||||
| Amortization of purchased intangible assets | (2,572 | ) | (2,571 | ) | (1,578 | ) | ||||||
| Non-GAAP cost of net revenue | 31,419 | 35,516 | 41,470 | |||||||||
| GAAP R&D expenses | 24,035 | 25,921 | 22,640 | |||||||||
| Stock-based compensation | (3,319 | ) | (4,163 | ) | (2,850 | ) | ||||||
| Incentive award compensation | (169 | ) | (169 | ) | (1,106 | ) | ||||||
| Performance based equity | (1,133 | ) | (838 | ) | (1,227 | ) | ||||||
| Amortization of purchased intangible assets | (97 | ) | (45 | ) | (96 | ) | ||||||
| Severance charges | — | — | (22 | ) | ||||||||
| Restricted merger proceeds and contingent consideration | (35 | ) | (243 | ) | (210 | ) | ||||||
| Non-GAAP R&D expenses | 19,282 | 20,463 | 17,129 | |||||||||
| GAAP SG&A expenses | 16,720 | 17,619 | 17,960 | |||||||||
| Stock-based compensation | (1,724 | ) | (1,857 | ) | (1,278 | ) | ||||||
| Incentive award compensation | (18 | ) | (18 | ) | (86 | ) | ||||||
| Performance based equity | (673 | ) | (896 | ) | (642 | ) | ||||||
| Amortization of purchased intangible assets | (2,914 | ) | (3,080 | ) | (4,938 | ) | ||||||
| Acquisition and integration costs | (572 | ) | (590 | ) | (13 | ) | ||||||
| Restricted merger proceeds and contingent consideration | (11 | ) | (99 | ) | (251 | ) | ||||||
| Severance charges | — | — | (143 | ) | ||||||||
| IP litigation costs, net | (28 | ) | (12 | ) | (325 | ) | ||||||
| Non-GAAP SG&A expenses | 10,780 | 11,067 | 10,284 | |||||||||
| GAAP IPR&D impairment losses | — | 1,300 | 21,600 | |||||||||
| IPR&D impairment losses | — | (1,300 | ) | (21,600 | ) | |||||||
| Non-GAAP IPR&D impairment losses | — | — | — | |||||||||
| GAAP restructuring expenses | 1,326 | — | 2,272 | |||||||||
| Restructuring charges | (1,326 | ) | — | (2,272 | ) | |||||||
| Non-GAAP restructuring expenses | — | — | — | |||||||||
| GAAP income before income taxes | 8,591 | 10,763 | (8,488 | ) | ||||||||
| Total non-GAAP adjustments | 17,333 | 18,614 | 38,778 | |||||||||
| Non-GAAP income before income taxes | 25,924 | 29,377 | 30,290 | |||||||||
| GAAP income tax expense | 243 | 1,084 | 56 | |||||||||
| Tax impact of non-GAAP adjustments | (13 | ) | (537 | ) | 350 | |||||||
| Non-GAAP income tax expense | 230 | 547 | 406 | |||||||||
| GAAP net income (loss) | $ | 8,348 | $ | 9,679 | $ | (8,544 | ) | |||||
| Total non-GAAP adjustments before income taxes | 17,333 | 18,614 | 38,778 | |||||||||
| Total tax adjustments | (13 | ) | (537 | ) | 350 | |||||||
| Non-GAAP net income | $ | 25,694 | $ | 28,830 | $ | 29,884 | ||||||
| Shares used in computing non-GAAP basic net income per share | 64,752 | 64,241 | 61,895 | |||||||||
| Shares used in computing GAAP diluted net income (loss) per share | 68,421 | 67,832 | 61,895 | |||||||||
| Dilutive common stock equivalents | — | — | 3,284 | |||||||||
| Shares used in computing non-GAAP diluted net income per share | 68,421 | 67,832 | 65,179 | |||||||||
| Non-GAAP basic net income per share | $ | 0.40 | $ | 0.45 | $ | 0.48 | ||||||
| Non-GAAP diluted net income per share | $ | 0.38 | $ | 0.43 | $ | 0.46 | ||||||
