MaxLinear Files 10-Q for Q2 2024

TL;DR

MAXLINEAR 10-Q FILED: Q2 2024 financials are in. Check for performance updates.

AI Summary

MaxLinear, Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter and first half of the fiscal year. Key financial data and business activities for the company are detailed within this report.

Why It Matters

This 10-Q filing provides investors and analysts with a detailed look at MaxLinear's financial performance and operational status for the second quarter of 2024, crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: medium — 10-Q filings are standard for public companies, but the specific financial details and business context within this report could indicate varying levels of risk.

Key Numbers

• 20240630 — Period End Date (Indicates the end of the reporting period for this 10-Q.)
• 20240724 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• MAXLINEAR, INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240724 (date) — Filing Date
• 0001288469-24-000112 (other) — Accession Number

FAQ

Key Financial Figures

• $0 — 8,216 shares of common stock, par value $0.0001, outstanding. Table of Contents

Filing Documents

• mxl-20240630.htm (10-Q) — 1975KB
• a6302024exhibit311.htm (EX-31.1) — 11KB
• a6302024exhibit312.htm (EX-31.2) — 11KB
• a6302024exhibit321.htm (EX-32.1) — 10KB
• 0001288469-24-000112.txt ( ) — 10274KB
• mxl-20240630.xsd (EX-101.SCH) — 65KB
• mxl-20240630_cal.xml (EX-101.CAL) — 99KB
• mxl-20240630_def.xml (EX-101.DEF) — 312KB
• mxl-20240630_lab.xml (EX-101.LAB) — 831KB
• mxl-20240630_pre.xml (EX-101.PRE) — 604KB
• mxl-20240630_htm.xml (XML) — 1573KB

FINANCIAL INFORMATION

Part I FINANCIAL INFORMATION 3

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 4 Consolidated Balance Sheets as of June 3 0 , 2024 and December 31, 2023 4 Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 5 Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2024 and 2023 6 Consolidated Statements of Stockholders' Equity for the Fiscal Quarters Ended June 30, 2024 and 2023 7 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 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 41

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 52

Controls and Procedures

Item 4. Controls and Procedures 53

OTHER INFORMATION

Part II OTHER INFORMATION 54

Legal Proceedings

Item 1. Legal Proceedings 54

Risk Factors

Item 1A. Risk Factors 57

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 93

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 93

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 93

Other Information

Item 5. Other Information 93

Exhibits

Item 6. Exhibits 95

Signatures

Signatures 96 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) June 30, 2024 December 31, 2023 Assets (unaudited) Current assets: Cash and cash equivalents $ 185,108 $ 187,288 Short-term restricted cash 1,006 1,051 Accounts receivable, net 84,940 170,619 Inventory 94,738 99,908 Prepaid expenses and other current assets 31,789 29,159 Total current assets 397,581 488,025 Long-term restricted cash 23 17 Property and equipment, net 65,422 66,431 Leased right-of-use assets 24,883 31,264 Intangible assets, net 61,786 73,630 Goodwill 318,588 318,588 Deferred tax assets 74,228 69,493 Other long-term assets 30,686 32,809 Total assets $ 973,197 $ 1,080,257 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 35,634 $ 21,551 Accrued price protection liability 61,630 71,684 Accrued expenses and other current liabilities 70,965 98,468 Accrued compensation 22,048 30,426 Total current liabilities 190,277 222,129 Long-term lease liabilities 21,522 26,243 Long-term debt 122,684 122,375 Other long-term liabilities 21,459 23,245 Total liabilities 355,942 393,992 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; 83,898 shares issued and outstanding at June 30, 2024 and 81,818 shares issued and outstanding December 31, 2023 8 8 Additional paid-in capital 853,865 808,575 Accumulated other comprehensive loss ( 6,516 ) ( 3,791 ) Accumulated deficit ( 230,102 ) ( 118,527 ) Total stockholders' equity 617,255 686,265 Total liabilities and stockholders' equity $ 973,197 $ 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023

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 meas

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 three 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 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 Intangible

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) During development, IPR&D is not subject to amortization and is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. 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

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