| MAXLINEAR, INC. | ||||||||
| UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||
| Three Months Ended | ||||||||
| December 31, 2017 | September 30, 2017 | December 31, 2016 | ||||||
| GAAP gross profit | 45.8% | 45.6% | 57.8% | |||||
| Stock-based compensation | 0.1% | 0.1% | 0.1% | |||||
| Performance based equity | —% | —% | —% | |||||
| Amortization of inventory step-up | 8.5% | 9.0% | 3.0% | |||||
| Amortization of purchased intangible assets | 7.4% | 7.0% | 3.0% | |||||
| Depreciation of fixed asset step-up | 0.2% | 0.1% | —% | |||||
| Deferred profit eliminated in purchase price accounting | —% | 0.7% | —% | |||||
| Non-GAAP gross profit | 62.0% | 62.5% | 63.9% | |||||
| GAAP R&D expenses | 26.5% | 25.8% | 27.6% | |||||
| Stock-based compensation | (3.8)% | (3.8)% | (3.9)% | |||||
| Incentive award compensation | —% | —% | (0.2)% | |||||
| Performance based equity | (1.0)% | (0.9)% | (1.3)% | |||||
| Amortization of purchased intangible assets | (0.1)% | (0.1)% | (0.1)% | |||||
| Depreciation of fixed asset step-up | (0.2)% | (0.5)% | —% | |||||
| Restricted merger proceeds and contingent consideration | —% | —% | —% | |||||
| Non-GAAP R&D expenses | 21.4% | 20.5% | 22.1% | |||||
| GAAP SG&A expenses | 23.6% | 25.6% | 19.2% | |||||
| Stock-based compensation | (2.7)% | (2.6)% | (2.0)% | |||||
| Incentive award compensation | —% | —% | —% | |||||
| Performance based equity | (1.0)% | (0.5)% | (0.8)% | |||||
| Amortization of purchased intangible assets | (7.7)% | (8.7)% | (3.3)% | |||||
| Depreciation of fixed asset step-up | —% | (0.1)% | —% | |||||
| Acquisition and integration costs | —% | (0.9)% | (0.7)% | |||||
| Restricted merger proceeds and contingent consideration | —% | —% | —% | |||||
| IP litigation costs, net | —% | —% | —% | |||||
| Non-GAAP SG&A expenses | 12.2% | 12.8% | 12.4% | |||||
| GAAP IPR&D impairment losses | —% | 1.8% | —% | |||||
| IPR&D impairment losses | —% | (1.8)% | —% | |||||
| Non-GAAP IPR&D impairment losses | —% | —% | —% | |||||
| GAAP restructuring expenses | 0.7% | 1.9% | 1.5% | |||||
| Restructuring charges | (0.7)% | (1.9)% | (1.5)% | |||||
| Non-GAAP restructuring expenses | —% | —% | —% | |||||
| GAAP income (loss) from operations | (5.0)% | (9.4)% | 9.7% | |||||
| Total non-GAAP adjustments | 33.3% | 38.5% | 19.8% | |||||
| Non-GAAP income from operations | 28.3% | 29.1% | 29.5% | |||||
| GAAP and non-GAAP interest and other income (expense), net | (4.2)% | (4.2)% | 0.3% | |||||
| GAAP income (loss) before income taxes | (9.2)% | (13.6)% | 9.9% | |||||
| Total non-GAAP adjustments before income taxes | 33.3% | 38.5% | 19.8% | |||||
| Non-GAAP income before income taxes | 24.1% | 24.9% | 29.7% | |||||
| GAAP income tax provision (benefit) | 7.9% | (5.5)% | 0.3% | |||||
| Adjustment for non-cash tax benefits/expenses and the effects of the Tax Act | (7.0)% | 6.5% | —% | |||||
| Non-GAAP income tax provision | 0.9% | 1.1% | 0.3% | |||||
| GAAP net income (loss) | (17.1)% | (8.1)% | 9.6% | |||||
| Total non-GAAP adjustments before income taxes | 33.3% | 38.5% | 19.8% | |||||
| Less: total tax adjustments | (7.0)% | 6.5% | —% | |||||
| Non-GAAP net income | 23.1% | 23.9% | 29.5% | |||||
