| MAXLINEAR, INC. | |||||
| UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||
| Years Ended | |||||
| December 31, 2017 | December 31, 2016 | ||||
| GAAP gross profit | 49.5% | 59.3% | |||
| Stock-based compensation | 0.1% | 0.1% | |||
| Performance based equity | —% | —% | |||
| Amortization of inventory step-up | 6.0% | 1.5% | |||
| Amortization of purchased intangible assets | 6.0% | 2.1% | |||
| Depreciation of fixed asset step-up | 0.2% | —% | |||
| Deferred profit eliminated in purchase price accounting | 1.1% | —% | |||
| Non-GAAP gross profit | 62.9% | 63.0% | |||
| GAAP R&D expenses | 26.7% | 25.2% | |||
| Stock-based compensation | (3.9)% | (3.5)% | |||
| Incentive award compensation | —% | (0.2)% | |||
| Performance based equity | (1.0)% | (1.2)% | |||
| Amortization of purchased intangible assets | (0.1)% | (0.1)% | |||
| Depreciation of fixed asset step-up | (0.3)% | —% | |||
| Restricted merger proceeds and contingent consideration | —% | (0.2)% | |||
| Non-GAAP R&D expenses | 21.4% | 20.0% | |||
| GAAP SG&A expenses | 25.2% | 16.6% | |||
| Stock-based compensation | (2.6)% | (1.8)% | |||
| Incentive award compensation | —% | —% | |||
| Performance based equity | (0.6)% | (0.7)% | |||
| Amortization of purchased intangible assets | (6.9)% | (1.8)% | |||
| Depreciation of fixed asset step-up | —% | —% | |||
| Acquisition and integration costs | (2.4)% | (0.6)% | |||
| Restricted merger proceeds and contingent consideration | —% | (0.1)% | |||
| IP litigation costs, net | (0.1)% | (0.2)% | |||
| Non-GAAP SG&A expenses | 12.6% | 11.4% | |||
| GAAP IPR&D impairment losses | 0.5% | 0.3% | |||
| IPR&D impairment losses | (0.5)% | (0.3)% | |||
| Non-GAAP IPR&D impairment losses | —% | —% | |||
| GAAP restructuring expenses | 2.3% | 0.9% | |||
| Restructuring charges | (2.3)% | (0.9)% | |||
| Non-GAAP restructuring expenses | —% | —% | |||
| GAAP income (loss) from operations | (5.2)% | 16.2% | |||
| Total non-GAAP adjustments | 34.0% | 15.4% | |||
| Non-GAAP income from operations | 28.8% | 31.6% | |||
| GAAP and non-GAAP interest and other income (expense), net | (2.9)% | 0.2% | |||
| GAAP income (loss) before income taxes | (8.1)% | 16.4% | |||
| Total non-GAAP adjustments before income taxes | 34.0% | 15.4% | |||
| Non-GAAP income before income taxes | 25.9% | 31.8% | |||
| GAAP income tax provision (benefit) | (5.9)% | 0.6% | |||
| Adjustment for non-cash tax benefits/expenses and the effects of the Tax Act | 7.7% | —% | |||
| Non-GAAP income tax provision | 1.8% | 0.6% | |||
| GAAP net income (loss) | (2.2)% | 15.8% | |||
| Total non-GAAP adjustments before income taxes | 34.0% | 15.4% | |||
| Less: total tax adjustments | 7.7% | —% | |||
| Non-GAAP net income | 24.1% | 31.2% | |||
