| MAXLINEAR, INC. | |||||||
| UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS | |||||||
| (in thousands, except per share data) | |||||||
| Years Ended | |||||||
| December 31, 2017 | December 31, 2016 | ||||||
| GAAP gross profit | $ | 207,963 | $ | 229,990 | |||
| Stock-based compensation | 332 | 210 | |||||
| Performance based equity | 139 | (10 | ) | ||||
| Amortization of inventory step-up | 25,557 | 5,641 | |||||
| Amortization of purchased intangible assets | 25,316 | 8,512 | |||||
| Depreciation of fixed asset step-up | 337 | — | |||||
| Deferred profit eliminated in purchase price accounting | 4,682 | — | |||||
| Non-GAAP gross profit | 264,326 | 244,343 | |||||
| GAAP R&D expenses | 112,279 | 97,745 | |||||
| Stock-based compensation | (16,190 | ) | (13,681 | ) | |||
| Incentive award compensation | — | (722 | ) | ||||
| Performance based equity | (4,001 | ) | (4,707 | ) | |||
| Amortization of purchased intangible assets | (386 | ) | (386 | ) | |||
| Depreciation of fixed asset step-up | (1,618 | ) | — | ||||
| Restricted merger proceeds and contingent consideration | — | (694 | ) | ||||
| Non-GAAP R&D expenses | 90,084 | 77,555 | |||||
| GAAP SG&A expenses | 105,831 | 64,454 | |||||
| Stock-based compensation | (11,016 | ) | (7,014 | ) | |||
| Incentive award compensation | — | (137 | ) | ||||
| Performance based equity | (2,514 | ) | (2,951 | ) | |||
| Amortization of purchased intangible assets | (28,827 | ) | (6,952 | ) | |||
| Depreciation of fixed asset step-up | (106 | ) | — | ||||
| Acquisition and integration costs | (10,062 | ) | (2,424 | ) | |||
| Restricted merger proceeds and contingent consideration | — | (220 | ) | ||||
| IP litigation costs, net | (272 | ) | (699 | ) | |||
| Non-GAAP SG&A expenses | 53,034 | 44,057 | |||||
| GAAP IPR&D impairment losses | 2,000 | 1,300 | |||||
| IPR&D impairment losses | (2,000 | ) | (1,300 | ) | |||
| Non-GAAP IPR&D impairment losses | — | — | |||||
| GAAP restructuring expenses | 9,524 | 3,432 | |||||
| Restructuring charges | (9,524 | ) | (3,432 | ) | |||
| Non-GAAP restructuring expenses | — | — | |||||
| GAAP income (loss) from operations | (21,671 | ) | 63,059 | ||||
| Total non-GAAP adjustments | 142,879 | 59,672 | |||||
| Non-GAAP income from operations | 121,208 | 122,731 | |||||
| GAAP and non-GAAP interest and other income (expense), net | (12,327 | ) | 631 | ||||
| GAAP income (loss) before income taxes | (33,998 | ) | 63,690 | ||||
| Total non-GAAP adjustments | 142,879 | 59,672 | |||||
| Non-GAAP income before income taxes | 108,881 | 123,362 | |||||
| GAAP income tax provision (benefit) | (24,811 | ) | 2,398 | ||||
| Adjustment for non-cash tax benefits/expenses and effects of the Tax Act | 32,433 | (151 | ) | ||||
| Non-GAAP income tax provision | 7,622 | 2,247 | |||||
| GAAP net income (loss) | (9,187 | ) | 61,292 | ||||
| Total non-GAAP adjustments before income taxes | 142,879 | 59,672 | |||||
| Less: total tax adjustments | 32,433 | (151 | ) | ||||
| Non-GAAP net income | $ | 101,259 | $ | 121,115 | |||
| Shares used in computing non-GAAP basic net income per share | 66,252 | 63,781 | |||||
| Shares used in computing non-GAAP diluted net income per share | 69,665 | 67,653 | |||||
| Non-GAAP basic net income per share | $ | 1.53 | $ | 1.90 | |||
| Non-GAAP diluted net income per share | $ | 1.45 | $ | 1.79 | |||
