MaxLinear, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>MaxLinear, Inc. filed its Q1 2024 10-Q report detailing financial positions and restructuring charges.</b>

AI Summary

MAXLINEAR, INC (MXL) filed a Quarterly Report (10-Q) with the SEC on April 24, 2024. MaxLinear, Inc. filed its 10-Q report for the quarterly period ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. Key financial statement elements like Common Stock, Additional Paid-In Capital, Accumulated Other Comprehensive Income, and Retained Earnings are detailed for various periods. The report references the termination of the Silicon Motion merger on August 31, 2023. Specific restructuring charges, including employee severance and facility closing costs, are itemized for Q1 2024 and Q1 2023.

Why It Matters

For investors and stakeholders tracking MAXLINEAR, INC, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial performance and position of MaxLinear, Inc., crucial for assessing the company's health and future prospects. The detailed breakdown of restructuring charges offers insight into the company's ongoing operational adjustments and their financial impact.

Risk Assessment

Risk Level: medium — MAXLINEAR, INC shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) which typically contains routine financial information. However, the mention of specific restructuring charges and the prior termination of a significant merger (Silicon Motion) suggest potential ongoing complexities or impacts that warrant careful review.

Analyst Insight

Review the detailed financial statements and the notes regarding restructuring charges to understand the full financial impact on MaxLinear's operations.

Key Numbers

• 2024-03-31 — Period of Report End Date (Quarterly period ended)
• 2024-01-01 — Period of Report Start Date (Quarterly period from)
• 2023-08-31 — Terminated Merger Date (Silicon Motion merger termination)
• 2023-01-17 — Specific Event Date (Related to CompanyY)

Key Players & Entities

• MAXLINEAR, INC (company) — Filer name
• 0001288469 (company) — Central Index Key
• 3674 (company) — Standard Industrial Classification
• 001-34666 (company) — SEC File Number
• 24871664 (company) — Film Number
• Silicon Motion (company) — Mentioned in context of a terminated merger
• CompanyY (company) — Referenced in relation to specific dates and events

FAQ

Industry Context

MaxLinear operates in the semiconductor industry, focusing on high-performance analog and mixed-signal integrated circuits.

Regulatory Implications

As a publicly traded company, MaxLinear is subject to SEC regulations and reporting requirements, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the detailed financial statements for Q1 2024.
2. Review notes pertaining to restructuring charges and their impact.
3. Compare Q1 2024 financial data with previous periods presented in the filing.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-01-01: Quarterly Period Start — Beginning of the reporting period for the 10-Q filing.
• 2023-08-31: Terminated Merger — Date of termination for the Silicon Motion merger.

Year-Over-Year Comparison

This filing is the 10-Q for the first quarter of 2024, providing updated financial information since the last annual report or subsequent interim filings.

Key Financial Figures

• $0 — 8,037 shares of common stock, par value $0.0001, outstanding. Table of Contents

Filing Documents

• mxl-20240331.htm (10-Q) — 1709KB
• a3312024exhibit311.htm (EX-31.1) — 11KB
• a3312024exhibit312.htm (EX-31.2) — 11KB
• a3312024exhibit321.htm (EX-32.1) — 10KB
• 0001288469-24-000064.txt (&nbsp;) — 9332KB
• mxl-20240331.xsd (EX-101.SCH) — 63KB
• mxl-20240331_cal.xml (EX-101.CAL) — 103KB
• mxl-20240331_def.xml (EX-101.DEF) — 295KB
• mxl-20240331_lab.xml (EX-101.LAB) — 790KB
• mxl-20240331_pre.xml (EX-101.PRE) — 578KB
• mxl-20240331_htm.xml (XML) — 1363KB

FINANCIAL INFORMATION

Part I FINANCIAL INFORMATION 3

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 4 Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 4 Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 5 Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023 6 Consolidated Statements of Stockholders' Equity for the Fiscal Quarters Ended March 31, 2024 and 2023 7 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 40

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 50

Controls and Procedures

Item 4. Controls and Procedures 51

OTHER INFORMATION

Part II OTHER INFORMATION 52

Legal Proceedings

Item 1. Legal Proceedings 52

Risk Factors

Item 1A. Risk Factors 54

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 90

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 91

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 91

Other Information

Item 5. Other Information 91

Exhibits

Item 6. Exhibits 92

Signatures

Signatures 93 2 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 3 Table of Contents

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS MAXLINEAR, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except par value amounts) March 31, 2024 December 31, 2023 Assets (unaudited) Current assets: Cash and cash equivalents $ 191,882 $ 187,288 Short-term restricted cash 1,028 1,051 Accounts receivable, net 126,230 170,619 Inventory 96,125 99,908 Prepaid expenses and other current assets 29,414 29,159 Total current assets 444,679 488,025 Long-term restricted cash 20 17 Property and equipment, net 68,338 66,431 Leased right-of-use assets 27,468 31,264 Intangible assets, net 64,939 73,630 Goodwill 318,588 318,588 Deferred tax assets 72,176 69,493 Other long-term assets 34,417 32,809 Total assets $ 1,030,625 $ 1,080,257 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 32,392 $ 21,551 Accrued price protection liability 65,233 71,684 Accrued expenses and other current liabilities 98,132 98,468 Accrued compensation 28,097 30,426 Total current liabilities 223,854 222,129 Long-term lease liabilities 23,897 26,243 Long-term debt 122,529 122,375 Other long-term liabilities 22,362 23,245 Total liabilities 392,642 393,992 Commitments and contingencies Stockholders' equity: Preferred stock, $ 0.0001 par value; 25,000 shares authorized, no shares issued or outstanding — — Common stock, $ 0.0001 par value; 550,000 shares authorized; 83,067 shares issued and outstanding at March 31, 2024 and 81,818 shares issued and outstanding December 31, 2023 8 8 Additional paid-in capital 834,384 808,575 Accumulated other comprehensive loss ( 5,573 ) ( 3,791 ) Accumulated deficit ( 190,836 ) ( 118,527 ) Total stockholders' equity 637,983 686,265 Total liabilities and stockholders' equity $ 1,030,625 $ 1,080,257 See accompanying notes. 4 Table of Contents MAXLINEAR, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited; in thousands, except per share data) Three Months Ended March 31, 2024 2023 Net revenue $ 95,269 $ 248,4

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. Organization and Summary of Significant Accounting Policies Description of Business MaxLinear, Inc. was incorporated in Delaware in September 2003. MaxLinear, Inc., together with its directly and indirectly wholly-owned subsidiaries, collectively referred to as MaxLinear, or the Company, is a provider of communications systems-on-chip, or SoC, solutions used in broadband, mobile and wireline infrastructure, data center, and industrial and multi-market applications. MaxLinear is a fabless integrated circuit design company whose products integrate all or substantial portions of a high-speed communication system, including radio frequency, or RF, high-performance analog, mixed-signal, digital signal processing, security engines, data compression and networking layers, and power management. MaxLinear's customers primarily include electronics distributors, module makers, original equipment manufacturers, or OEMs, and original design manufacturers, or ODMs, who incorporate the Company's products in a wide range of electronic devices. Examples of such devices include broadband modems compliant with Data Over Cable Service Interface Specifications, or DOCSIS, Passive Optical Network, or PON, and DSL; Wi-Fi and wireline routers for home networking; radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; optical transceivers targeting hyperscale data centers; as well as power management and interface products used in these and many other markets. Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of MaxLinear, Inc. and its directly and indirectly wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Acco

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Summary of Significant Accounting Policies Business Combinations The Company applies the provisions of ASC 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. Costs to exit or restructure certain activities of an acquired company or the Company's internal operations are accounted for as termination and exit costs pursuant to ASC 420, Exit or Disposal Cost Obligations , and are accounted for separately from the business combination. A liability for costs associated with an exit or disposal activity is recognized and measured at its fair value in the consolidated statements of operations in the period in which the liability is incurred. For a given acquisition, the Company may identify certain pre-acquisition contingencies as of the acquisition date and may extend its review, evaluation, and adjustment of these pre-acquisition contingencies throughout the measu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) net realizable value. Cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis and net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company reduces its inventory to the lower of its cost or net realizable value on a part-by-part basis to account for obsolescence or lack of marketability. Reductions are calculated as the difference between the cost of inventory and its net realizable value based upon assumptions about future demand, market conditions and costs. Once established, these adjustments are considered permanent and are not revised until the related inventory is sold or disposed of. Fair Value of Financial Instruments The carrying amount of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses and compensation are considered to be representative of their respective fair values because of the short-term nature of these accounts. Property and Equipment Property and equipment is carried at cost and depreciated over the estimated useful lives of the assets, ranging from two to five years , using the straight-line method. Leasehold improvements are stated at cost and amortized over the shorter of the estimated useful lives of the assets or the lease term. Production Masks Production masks with alternative future uses or discernible future benefits are capitalized and amortized over their estimated useful lives of two to five years . To determine if a production mask has alternative future uses or benefits, the Company evaluates risks associated with developing new technologies and capabilities, and the related risks associated with entering new markets. Production masks that do not meet the criteria for capitalization are expensed as research and development costs. Goodwill and Intang

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Once an IPR&D project is complete, it becomes a finite-lived intangible asset and is evaluated for impairment both immediately prior to its change in classification and thereafter in accordance with the Company's policy for long-lived assets. The Company regularly reviews the carrying amount of its long-lived assets subject to depreciation and amortization, as well as the useful lives, to determine whether indicators of impairment may exist which warrant adjustments to carrying values or estimated useful lives. An impairment loss would be recognized when the sum of the expected future undiscounted net cash flows is less than the carrying amount of the asset. Should impairment exist, the impairment loss would be measured based on the excess of the carrying amount of the asset over the asset's fair value. Revenue Recognition The Company's revenue is generated from sales of the Company's integrated circuits and intellectual property, typically under individual customer purchase orders, some of which have underlying master sales agreements that specify terms governing the product or intellectual property sales. The Company recognizes such revenue at the point in time when control of the products or intellectual property is transferred to the customer at the estimated net consideration for which collection is probable, taking into account the customer's rights to price protection, other pricing credits, unit rebates, and rights to return unsold product. Transfer of control occurs either when products are shipped to or received by the distributor or direct customer, based on the terms of the specific agreement with the customer, if the Company has a present right to payment and transfer of legal title and the risks and rewards of ownership to the customer has occurred. For most of the Company's product sales, transfer of control occurs upon shipment to the distributor or direct customer. Under certain intellec

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