Fourth Quarter 2018 Net Revenue of $87.6 million
CARLSBAD, Calif. — (BUSINESS WIRE) — February 5, 2019 — MaxLinear, Inc. (NYSE: MXL), a leading provider of RF, analog and mixed-signal integrated circuits for the connected home, and industrial and multi-market applications, today announced financial results for the fourth quarter ended December 31, 2018.
Fourth Quarter Financial Highlights
GAAP basis:
- Net revenue was $87.6 million, up 3% sequentially, and down 23% year-on-year.
- GAAP gross margin was 52.4%, compared to 51.6% in the prior quarter, and 45.8% in the year-ago quarter.
- GAAP operating expenses were $56.6 million in the fourth quarter 2018, or 65% of net revenue, compared to $56.4 million in the prior quarter, or 66% of net revenue, and $57.8 million in the year-ago quarter, or 51% of net revenue.
- GAAP loss from operations was 12% of revenue, compared to loss from operations of 15% in the prior quarter, and loss from operations of 5% in the year-ago quarter.
- Net cash flow provided by operating activities of $24.2 million, compared to cash flow provided by operations of $30.7 million in the prior quarter and cash flow provided by operating activities of $21.7 million in the year-ago quarter.
- GAAP income tax benefit was $14.0 million, which included a $11.3 million discrete tax benefit for a reduction in the valuation allowance on certain loss carryforwards as provisional estimates for the effects of the 2017 Tax Act were finalized, compared to an income tax benefit of $2.1 million in the prior quarter, and income tax provision of $9.0 million in the year-ago quarter.
- GAAP net income was $0.3 million, compared to net loss of $13.9 million in the prior quarter, and net loss of $19.4 million in the year-ago quarter.
- GAAP diluted earnings per share was $0.00, compared to diluted loss per share of $0.20 in the prior quarter, and diluted loss per share of $0.29 in the year-ago quarter.
Non-GAAP basis:
- Non-GAAP gross margin was 62.7%. This compares to 62.5% in the prior quarter, and 62.0% in the year-ago quarter.
- Non-GAAP operating expenses were $36.7 million, or 42% of revenue, compared to $35.6 million or 42% of revenue in the prior quarter, and $38.3 million or 34% of revenue in the year-ago quarter.
- Non-GAAP income from operations was 21% 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 4% in the year-ago quarter.
- Non-GAAP net income was $14.2 million, compared to $13.2 million in the prior quarter, and $26.3 million in the year-ago quarter.
- Non-GAAP diluted earnings per share was $0.20, compared to diluted earnings per share of $0.19 in the prior quarter, and diluted earnings per share of $0.38 in the year-ago quarter.
Recent Business Highlights
- Successfully validated the functionality of the Telluride products in 400Gbps mode through interoperability testing of Telluride PAM4 DSPs with Innovium's 12.8 Tbps TERALYNX Switch ASIC.
- Announced the integration of AirPHY multi-gigabit modem technology into Zinwell's 3rd generation ZRA-003 device, which can transfer power and gigabit data through glass windows and walls up to 20cm thick.
- G.hn home networking solutions with Comtrend selected by Chunghwa Telecom to deliver gigabit-class service to their subscribers in Taiwan.
- Announced collaboration with Intel and cable industry leaders to enable 10 Gigabit ready gateway platforms.
- G.hn Wave-2 technology selected by Zinwell for new family of home networking products.
Management Commentary
