UNITED STATES SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
FORM 8-K |
Delaware | 001-34666 | 14-1896129 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit | Description |
99.1 | Press Release, dated November 3, 2015. |
Date: November 3, 2015 | MAXLINEAR, INC. | ||
(Registrant) | |||
By: | /s/ Adam C. Spice | ||
Adam C. Spice | |||
Chief Financial Officer | |||
(Principal Financial Officer) | |||
Exhibit No. | Description |
99.1 | Press Release, dated November 3, 2015. |
Three Months Ended | |||||||||||
September 30, 2015 (1) | June 30, 2015 (2) | September 30, 2014 | |||||||||
Net revenue | $ | 95,191 | $ | 70,824 | $ | 32,541 | |||||
Cost of net revenue | 44,141 | 43,882 | 12,632 | ||||||||
Gross profit | 51,050 | 26,942 | 19,909 | ||||||||
Operating expenses: | |||||||||||
Research and development | 23,491 | 23,993 | 14,957 | ||||||||
Selling, general and administrative | 25,457 | 23,620 | 8,141 | ||||||||
Restructuring charges | 425 | 11,389 | — | ||||||||
Total operating expenses | 49,373 | 59,002 | 23,098 | ||||||||
Income (loss) from operations | 1,677 | (32,060 | ) | (3,189 | ) | ||||||
Interest income | 47 | 51 | 61 | ||||||||
Other income (expense), net | 407 | (22 | ) | (49 | ) | ||||||
Income (loss) before income taxes | 2,131 | (32,031 | ) | (3,177 | ) | ||||||
Provision (benefit) for income taxes | 549 | (1,384 | ) | 28 | |||||||
Net income (loss) | $ | 1,582 | $ | (30,647 | ) | $ | (3,205 | ) | |||
Net income (loss) per share: | |||||||||||
Basic | $ | 0.03 | $ | (0.58 | ) | $ | (0.09 | ) | |||
Diluted | $ | 0.03 | $ | (0.58 | ) | $ | (0.09 | ) | |||
Shares used to compute net income (loss) per share: | |||||||||||
Basic | 60,644 | 52,586 | 36,901 | ||||||||
Diluted | 63,209 | 52,586 | 36,901 |
Nine Months Ended | |||||||
September 30, 2015 (1) | September 30, 2014 | ||||||
Net revenue | $ | 201,411 | $ | 100,634 | |||
Cost of net revenue | 101,748 | 38,426 | |||||
Gross profit | 99,663 | 62,208 | |||||
Operating expenses: | |||||||
Research and development | 62,765 | 41,944 | |||||
Selling, general and administrative | 60,021 | 24,590 | |||||
Restructuring charges | 11,814 | — | |||||
Total operating expenses | 134,600 | 66,534 | |||||
Loss from operations | (34,937 | ) | (4,326 | ) | |||
Interest income | 168 | 182 | |||||
Other income (expense), net | 351 | (79 | ) | ||||
Loss before income taxes | (34,418 | ) | (4,223 | ) | |||
(Benefit) provision for income taxes | (631 | ) | 456 | ||||
Net loss | $ | (33,787 | ) | $ | (4,679 | ) | |
Net loss per share: | |||||||
Basic | $ | (0.67 | ) | $ | (0.13 | ) | |
Diluted | $ | (0.67 | ) | $ | (0.13 | ) | |
Shares used to compute net loss per share: | |||||||
Basic | 50,528 | 36,127 | |||||
Diluted | 50,528 | 36,127 |
Three Months Ended | |||||||||||
September 30, 2015 | June 30, 2015 | September 30, 2014 | |||||||||
Operating Activities | |||||||||||
Net income (loss) | $ | 1,582 | $ | (30,647 | ) | $ | (3,205 | ) | |||
Adjustments to reconcile net loss to cash provided by operating activities: | |||||||||||
Amortization and depreciation | 17,296 | 12,227 | 1,322 | ||||||||
Amortization of investment premiums, net | 57 | 55 | 168 | ||||||||
Amortization of inventory step-up | 958 | 13,286 | — | ||||||||
Stock-based compensation | 5,032 | 6,301 | 4,002 | ||||||||
Deferred income taxes | 251 | (1,960 | ) | — | |||||||
Gain on disposal of property and equipment | (39 | ) | — | — | |||||||
Loss on sale of available-for-sale securities | 21 | — | — | ||||||||
Impairment of long-lived assets | 153 | — | 8 | ||||||||
Impairment of lease | 568 | 5,593 | — | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (205 | ) | 8,319 | 233 | |||||||
Inventory | 1,581 | (9,659 | ) | 187 | |||||||
Prepaid and other assets | (2,684 | ) | 3,800 | (60 | ) | ||||||
Accounts payable, accrued expenses and other current liabilities | (9,370 | ) | (2,530 | ) | (1,086 | ) | |||||
Accrued compensation | 3,342 | (371 | ) | 1,461 | |||||||
Deferred revenue and deferred profit | 3 | 502 | 2,256 | ||||||||
Accrued price protection liability | 3,925 | (372 | ) | 973 | |||||||
Other long-term liabilities | (513 | ) | 90 | 102 | |||||||
Net cash provided by operating activities | 21,958 | 4,634 | 6,361 | ||||||||
Investing Activities | |||||||||||
Purchases of property and equipment | 103 | (436 | ) | (3,126 | ) | ||||||
Purchases of intangible assets | (100 | ) | — | — | |||||||
Cash used in acquisition, net of cash acquired | — | (3,615 | ) | — | |||||||
Purchases of available-for-sale securities | (25,712 | ) | (3,815 | ) | (6,693 | ) | |||||
Maturities of available-for-sale securities | 4,400 | 36,918 | 6,900 | ||||||||
Net cash (used in) provided by investing activities | (21,309 | ) | 29,052 | (2,919 | ) | ||||||
Financing Activities | |||||||||||
Repurchases of common stock | — | (101 | ) | — | |||||||
Net proceeds from issuance of common stock | 2,891 | 3,207 | 25 | ||||||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (1,367 | ) | (2,896 | ) | (653 | ) | |||||
Equity issuance costs | — | (8 | ) | — | |||||||
Net cash provided by (used in) financing activities | 1,524 | 202 | (628 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (755 | ) | 74 | (7 | ) | ||||||
Increase in cash and cash equivalents | 1,418 | 33,962 | 2,807 | ||||||||
Cash and cash equivalents at beginning of period | 56,731 | 22,769 | 31,248 | ||||||||
Cash and cash equivalents at end of period | $ | 58,149 | $ | 56,731 | $ | 34,055 |
Nine Months Ended | |||||||
September 30, 2015 | September 30, 2014 | ||||||
Operating Activities | |||||||
Net loss | $ | (33,787 | ) | $ | (4,679 | ) | |
Adjustments to reconcile net loss to cash provided by operating activities: | |||||||
Amortization and depreciation | 31,162 | 3,527 | |||||
Amortization of investment premiums, net | 261 | 578 | |||||
Amortization of inventory step-up | 14,244 | — | |||||
Stock-based compensation | 15,052 | 11,080 | |||||
Deferred income taxes | (1,709 | ) | 11 | ||||
Gain on disposal of property and equipment | (39 | ) | — | ||||
Loss on sale of available-for-sale securities | 21 | — | |||||
Impairment of long-lived assets | 153 | 8 | |||||
Impairment of lease | 6,161 | — | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 5,971 | (397 | ) | ||||
Inventory | (10,069 | ) | 456 | ||||
Prepaid and other assets | 700 | (402 | ) | ||||
Accounts payable, accrued expenses and other current liabilities | (9,068 | ) | 66 | ||||
Accrued compensation | 4,845 | 3,670 | |||||
Deferred revenue and deferred profit | 526 | 2,234 | |||||
Accrued price protection liability | 6,200 | 1,468 | |||||
Other long-term liabilities | (264 | ) | 382 | ||||
Net cash provided by operating activities | 30,360 | 18,002 | |||||
Investing Activities | |||||||
Purchases of property and equipment | (1,357 | ) | (7,767 | ) | |||
Purchases of intangible assets | (100 | ) | — | ||||
Cash used in acquisition, net of cash acquired | (3,615 | ) | — | ||||
Purchases of available-for-sale securities | (45,680 | ) | (36,457 | ) | |||
Maturities of available-for-sale securities | 57,508 | 35,895 | |||||
Net cash provided by (used in) investing activities | 6,756 | (8,329 | ) | ||||
Financing Activities | |||||||
Repurchases of common stock | (101 | ) | — | ||||
Net proceeds from issuance of common stock | 6,346 | 1,584 | |||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (4,528 | ) | (3,641 | ) | |||
Equity issuance costs | (705 | ) | — | ||||
Net cash provided by (used in) financing activities | 1,012 | (2,057 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (675 | ) | (11 | ) | |||
Increase in cash and cash equivalents | 37,453 | 7,605 | |||||
Cash and cash equivalents at beginning of period | 20,696 | 26,450 | |||||
Cash and cash equivalents at end of period | $ | 58,149 | $ | 34,055 |
September 30, 2015 | June 30, 2015 | December 31, 2014 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 58,149 | $ | 56,731 | $ | 20,696 | |||||
Short-term investments, available-for-sale | 26,797 | 16,638 | 48,399 | ||||||||
Accounts receivable, net | 41,766 | 41,561 | 18,523 | ||||||||
Inventory | 36,265 | 38,822 | 10,858 | ||||||||
Prepaid expenses and other current assets | 4,500 | 5,297 | 2,438 | ||||||||
Total current assets | 167,477 | 159,049 | 100,914 | ||||||||
Property and equipment, net | 20,543 | 23,123 | 12,441 | ||||||||
Long-term investments, available-for-sale | 19,847 | 8,706 | 10,256 | ||||||||
Intangible assets, net | 79,655 | 93,377 | 10,386 | ||||||||
Goodwill | 49,373 | 48,888 | 1,201 | ||||||||
Other long-term assets | 5,715 | 6,158 | 513 | ||||||||
Total assets | $ | 342,610 | $ | 339,301 | $ | 135,711 | |||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities | $ | 67,485 | $ | 74,236 | $ | 33,246 | |||||
Other long-term liabilities | 10,597 | 10,723 | 3,363 | ||||||||
Total stockholders’ equity | 264,528 | 254,342 | 99,102 | ||||||||
Total liabilities and stockholders’ equity | $ | 342,610 | $ | 339,301 | $ | 135,711 |
Three Months Ended | |||||||||||
September 30, 2015 | June 30, 2015 | September 30, 2014 | |||||||||
GAAP net income (loss) | $ | 1,582 | $ | (30,647 | ) | $ | (3,205 | ) | |||
Stock-based compensation: | |||||||||||
Cost of net revenue | 73 | 61 | 35 | ||||||||
Research and development | 3,496 | 3,053 | 2,574 | ||||||||
Selling, general and administrative | 1,442 | 1,680 | 1,393 | ||||||||
Total stock-based compensation | 5,011 | 4,794 | 4,002 | ||||||||
Share-based bonus plan*: | |||||||||||
Cost of net revenue | 148 | 6 | — | ||||||||
Research and development | 1,182 | 1,479 | 6 | ||||||||
Selling, general and administrative | 753 | 556 | 65 | ||||||||
Total share-based bonus plan | 2,083 | 2,041 | 71 | ||||||||
Amortization of purchased intangible assets: | |||||||||||
Cost of net revenue | 1,572 | 1,052 | — | ||||||||
Research and development | 97 | 96 | — | ||||||||
Selling, general and administrative | 12,066 | 7,985 | — | ||||||||
Total amortization of purchased intangible assets | 13,735 | 9,133 | — | ||||||||
Amortization of inventory step-up | 958 | 13,286 | — | ||||||||
Acquisition and integration costs | 32 | 2,813 | — | ||||||||
Restricted merger proceeds | 209 | 208 | — | ||||||||
Change in fair value of contingent consideration | 9 | 51 | — | ||||||||
Severance charges | 443 | 38 | — | ||||||||
Restructuring charges | 425 | 11,389 | — | ||||||||
Impairment of production masks | 153 | — | — | ||||||||
IP litigation costs, net | 144 | 364 | 876 | ||||||||
Release of valuation allowance due to net deferred tax liability acquired | 341 | (1,933 | ) | — | |||||||
Non-GAAP net income | $ | 25,125 | $ | 11,537 | $ | 1,744 | |||||
Shares used in computing non-GAAP basic net income per share | 60,644 | 52,586 | 36,901 | ||||||||
Shares used in computing GAAP diluted net income (loss) per share | 63,209 | 52,586 | 36,901 | ||||||||
Dilutive common stock equivalents | — | 2,536 | 2,357 | ||||||||
Shares used in computing non-GAAP diluted net income per share | 63,209 | 55,122 | 39,258 | ||||||||
Non-GAAP basic net income per share | $ | 0.41 | $ | 0.22 | $ | 0.05 | |||||
Non-GAAP diluted net income per share | $ | 0.40 | $ | 0.21 | $ | 0.04 |
* | Share-based bonus plan for the three months ended September 30, 2015 and June 30, 2015 relates to an accrual related to our performance based bonus plan for 2015, which will be settled in stock in 2016. For the three months ended September 30, 2015 and June 30, 2015, the share-based bonus plan also included an increase of $0.3 million and $0.3 million, respectively, for the accrual of restricted stock unit awards and incentives to be granted to Physpeed and Entropic continuing employees contingent upon continued employment and the achievement of certain 2015 and 2016 revenue milestones. Share-based bonus plan for the three months ended September 30, 2014 relates to an accrual related to our performance based bonus plan for 2014, which was settled in stock in May 2015. |
Nine Months Ended | |||||||
September 30, 2015 | September 30, 2014 | ||||||
GAAP net loss | $ | (33,787 | ) | $ | (4,679 | ) | |
Stock-based compensation: | |||||||
Cost of net revenue | 169 | 96 | |||||
Research and development | 8,889 | 7,152 | |||||
Selling, general and administrative | 4,466 | 3,832 | |||||
Total stock-based compensation | 13,524 | 11,080 | |||||
Share-based bonus plan*: | |||||||
Cost of net revenue | 159 | 22 | |||||
Research and development | 2,974 | 1,154 | |||||
Selling, general and administrative | 1,655 | 1,002 | |||||
Total share-based bonus plan | 4,788 | 2,178 | |||||
Amortization of purchased intangible assets: | |||||||
Cost of net revenue | 2,624 | — | |||||
Research and development | 309 | — | |||||
Selling, general and administrative | 20,051 | — | |||||
Total amortization of purchased intangible assets | 22,984 | — | |||||
Amortization of inventory step-up | 14,244 | — | |||||
Acquisition and integration costs | 5,349 | — | |||||
Restricted merger proceeds | 625 | — | |||||
Change in fair value of contingent consideration | (122 | ) | — | ||||
Severance charges | 1,153 | — | |||||
Restructuring charges | 11,814 | — | |||||
Impairment of production masks | 153 | — | |||||
IP litigation costs, net | 1,135 | 1,884 | |||||
Release of valuation allowance due to net deferred tax liability acquired | (1,592 | ) | — | ||||
Non-GAAP net income | $ | 40,268 | $ | 10,463 | |||
Shares used in computing non-GAAP basic net income per share | 50,528 | 36,127 | |||||
Shares used in computing GAAP diluted net loss per share | 50,528 | 36,127 | |||||
Dilutive common stock equivalents | 2,376 | 2,663 | |||||
Shares used in computing non-GAAP diluted net income per share | 52,904 | 38,790 | |||||
Non-GAAP basic net income per share | $ | 0.80 | $ | 0.29 | |||
Non-GAAP diluted net income per share | $ | 0.76 | $ | 0.27 |
* | Share-based bonus plan for the nine months ended September 30, 2015 primarily relates to an accrual related to our performance based bonus plan for 2015 increased by $0.8 million for the accrual of restricted stock unit awards and incentives to be granted to Physpeed and Entropic continuing employees contingent upon continued employment and the achievement of certain 2015 and 2016 revenue milestones. The performance based bonus plan was partially settled in stock in 2015 with the remainder to be settled in stock in 2016. Share-based bonus plan for the nine months ended September 30, 2014 relates to an accrual related to our performance based bonus plan for 2014, which was settled in stock in May 2015. |
Three Months Ended | ||||||||
September 30, 2015 | June 30, 2015 | September 30, 2014 | ||||||
GAAP gross profit as a % of revenue | 53.6 | % | 38.0 | % | 61.2 | % | ||
Stock-based compensation: | ||||||||
Cost of net revenue | 0.1 | % | 0.1 | % | 0.1 | % | ||
Share-based bonus plan: | ||||||||
Cost of net revenue | 0.2 | % | — | % | — | % | ||
Amortization of purchased intangibles: | ||||||||
Cost of net revenue | 1.6 | % | 1.5 | % | — | % | ||
Impairment of production masks | 0.2 | % | — | % | — | % | ||
Amortization of inventory step-up | 1.0 | % | 18.8 | % | — | % | ||
Non-GAAP gross profit as a % of revenue | 56.7 | % | 58.4 | % | 61.3 | % | ||
GAAP income (loss) from operations as a % of revenue | 1.8 | % | (45.3 | )% | (9.8 | )% | ||
Stock-based compensation: | ||||||||
Cost of net revenue | 0.1 | % | 0.1 | % | 0.1 | % | ||
Research and development | 3.7 | % | 4.3 | % | 7.9 | % | ||
Selling, general and administrative | 1.5 | % | 2.4 | % | 4.3 | % | ||
Share-based bonus plan: | ||||||||
Cost of net revenue | 0.2 | % | — | % | — | % | ||
Research and development | 1.2 | % | 2.1 | % | — | % | ||
Selling, general and administrative | 0.8 | % | 0.8 | % | 0.2 | % | ||
Amortization of purchased intangible assets: | ||||||||
Cost of net revenue | 1.6 | % | 1.5 | % | — | % | ||
Research and development | 0.1 | % | 0.1 | % | — | % | ||
Selling, general and administrative | 12.7 | % | 11.3 | % | — | % | ||
Impairment of production masks | 0.2 | % | — | % | — | % | ||
Amortization of inventory step-up | 1.0 | % | 18.8 | % | — | % | ||
Acquisition and integration costs | — | % | 4.0 | % | — | % | ||
Restricted merger proceeds | 0.2 | % | 0.3 | % | — | % | ||
Change in fair value of contingent consideration | — | % | 0.1 | % | — | % | ||
Severance charges | 0.5 | % | 0.1 | % | — | % | ||
Restructuring charges | 0.4 | % | 16.1 | % | — | % | ||
IP litigation costs, net | 0.2 | % | 0.5 | % | 2.7 | % | ||
Non-GAAP income from operations as a % of revenue | 26.2 | % | 17.2 | % | 5.4 | % |
Nine Months Ended | |||||
September 30, 2015 | September 30, 2014 | ||||
GAAP gross profit as a % of revenue | 49.5 | % | 61.8 | % | |
Stock-based compensation: | |||||
Cost of net revenue | 0.1 | % | 0.1 | % | |
Share-based bonus plan: | |||||
Cost of net revenue | 0.1 | % | — | % | |
Amortization of purchased intangibles: | |||||
Cost of net revenue | 1.2 | % | — | % | |
Impairment of production masks | 0.1 | % | — | % | |
Amortization of inventory step-up | 7.1 | % | — | % | |
Non-GAAP gross profit as a % of revenue | 58.1 | % | 61.9 | % | |
GAAP loss from operations as a % of revenue | (17.3 | )% | (4.3 | )% | |
Stock-based compensation: | |||||
Cost of net revenue | 0.1 | % | 0.1 | % | |
Research and development | 4.4 | % | 7.1 | % | |
Selling, general and administrative | 2.2 | % | 3.8 | % | |
Share-based bonus plan: | |||||
Cost of net revenue | 0.1 | % | — | % | |
Research and development | 1.5 | % | 1.1 | % | |
Selling, general and administrative | 0.8 | % | 1.0 | % | |
Amortization of purchased intangible assets: | |||||
Cost of net revenue | 1.2 | % | — | % | |
Research and development | 0.2 | % | — | % | |
Selling, general and administrative | 10.0 | % | — | % | |
Impairment of production masks | 0.1 | % | — | % | |
Amortization of inventory step-up | 7.1 | % | — | % | |
Acquisition and integration costs | 2.7 | % | — | % | |
Restricted merger proceeds | 0.3 | % | — | % | |
Change in fair value of contingent consideration | (0.1 | )% | — | % | |
Severance charges | 0.6 | % | — | % | |
Restructuring charges | 5.9 | % | — | % | |
IP litigation costs, net | 0.6 | % | 1.9 | % | |
Non-GAAP income from operations as a % of revenue | 20.4 | % | 10.7 | % |