• Net revenue of $95.3 million in Q1, GAAP gross margin of 51.7% and non-GAAP gross margin of 60.6%

CARLSBAD, Calif. — (BUSINESS WIRE) — April 24, 2024 — MaxLinear, Inc. (Nasdaq: MXL), a leading provider of radio frequency (RF), analog, digital and mixed-signal integrated circuits, today announced financial results for the first quarter ended March 31, 2024.

First Quarter Financial Highlights

GAAP basis:

• Net revenue was $95.3 million, down 24% sequentially and down 62% year-over-year.
• GAAP gross margin was 51.7%, compared to 54.7% in the prior quarter, and 56.5% in the year-ago quarter.
• GAAP operating expenses were $123.9 million in the first quarter 2024, or 130% of net revenue, compared to $110.3 million in the prior quarter, or 88% of net revenue, and $113.0 million in the year-ago quarter, or 45% of net revenue.
• GAAP loss from operations was 78% of net revenue, compared to loss from operations of 33% of net revenue in the prior quarter, and income from operations of 11% of net revenue in the year-ago quarter.
• Net cash flow provided by operating activities was $16.0 million, compared to net cash flow used in operating activities of $16.6 million in the prior quarter, and net cash flow provided by operating activities of $42.2 million in the year-ago quarter.
• GAAP diluted loss per share was $0.88, compared to diluted loss per share of $0.47 in the prior quarter, and diluted earnings per share of $0.12 in the year-ago quarter.

Non-GAAP basis:

• Non-GAAP gross margin was 60.6%. This compares to 61.4% in the prior quarter, and 60.3% in the year-ago quarter.
• Non-GAAP operating expenses were $74.8 million, or 78% of net revenue, compared to $75.7 million or 60% of net revenue in the prior quarter, and $80.8 million or 33% of net revenue in the year-ago quarter.
• Non-GAAP loss from operations was 18% of net revenue, compared to income of 1% in the prior quarter, and income of 28% in the year-ago quarter.
• Non-GAAP diluted loss per share was $0.21, compared to earnings of $0.01 in the prior quarter, and earnings of $0.74 in the year-ago quarter.

Management Commentary

“It is both gratifying and exciting to see years of product development and business execution begin to culminate in our next stage of growth as a data infrastructure company. Across our portfolio, we have the right solutions in production today to meet high-value market trends and open up significant revenue growth potential in optical datacenter and wireless network infrastructure, enterprise ethernet and storage accelerators, Wi-Fi connectivity, and fiber broadband access gateways. We believe our revenue has bottomed and is now poised for sequential growth throughout 2024. Additionally, we have continued to exercise strong fiscal discipline which we expect to deliver positive cash flow and favorable financial leverage as our growth from these investments accelerates,” commented Kishore Seendripu, Ph.D., Chairman and CEO.

Second Quarter 2024 Business Outlook

The company expects net revenue in the second quarter of 2024 to be approximately $90 million to $110 million. The Company also estimates the following:

• GAAP gross margin of approximately 52.5% to 56.5%;
• Non-GAAP gross margin of approximately 58.5% to 61.5%;
• GAAP operating expenses of approximately $103 million to $113 million;
• Non-GAAP operating expenses of approximately $72 million to $78 million;
• GAAP and non-GAAP interest and other expense of approximately $0.5 million to $1 million each; and
• GAAP and non-GAAP diluted share count of approximately 83.5 million each.

Webcast and Conference Call

MaxLinear will host its first quarter financial results conference call today, April 24, 2024 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). To access this call, dial US toll free: 1-877-407-3109 / International: 1-201-493-6798. A live webcast of the conference call will be accessible from the investor relations section of the MaxLinear website at https://investors.maxlinear.com, and will be archived and available after the call at https://investors.maxlinear.com until May 8, 2024. A replay of the conference call will also be available until May 8, 2024 by dialing US toll free: 1-877-660-6853 / International: 1-201-612-7415 and Conference ID#: 13745701.

Cautionary Note Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others, statements concerning our future financial performance (including our current guidance for second quarter 2024 net revenue, and GAAP and non-GAAP amounts for each of the following: gross margins, operating expenses, interest and other expenses, and diluted share counts); our potential growth and revenue opportunities; market trends; settlement of bonus awards for our 2024 performance period; and statements by our Chairman and CEO. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from any future results expressed or implied by the forward-looking statements and our future financial performance and operating results forecasts generally. Forward-looking statements are based on management’s current, preliminary expectations and are subject to various risks and uncertainties. In particular, our future operating results are substantially dependent on our assumptions about market trends and conditions. Additional risks and uncertainties affecting our business, future operating results and financial condition include, without limitation; risks relating to our terminated merger with Silicon Motion and related arbitration and class action complaint and the risks related to potential payment of damages; the effect of intense and increasing competition; impacts of global economic conditions; the cyclical nature of the semiconductor industry; a significant variance in our operating results and impact on volatility in our stock price, and our ability to sustain our current level of revenue, which has declined, and/or manage future growth effectively, and the impact of excess inventory in the channel on our customers’ expected demand for certain of our products; the geopolitical and economic tensions among the countries in which we conduct business; increased tariffs, export controls or imposition of other trade barriers; our ability to obtain or retain government authorization to export certain of our products or technology; risks related to the loss of, or a significant reduction in orders from major customers; costs of legal proceedings; information technology failures; a decrease in the average selling prices of our products; substantial quarterly and annual fluctuations in our operating results; failure to penetrate new applications and markets; development delays and consolidation trends in our industry; inability to make substantial research and development investments; delays or expenses caused by undetected defects or bugs in our products; failure to timely develop and introduce new or enhanced products; order and shipment uncertainties; failure to accurately predict our future revenue and appropriately budget expenses; lengthy and expensive customer qualification processes; customer product plan cancellations; failure to maintain compliance with government regulations; failure to attract and retain qualified personnel; any adverse impact of rising interest rates on us, our customers, and our distributors and related demand; risks related to compliance with privacy, data protection and cybersecurity laws and regulations; risks related to conforming our products to industry standards; risks related to business acquisitions and investments; claims of intellectual property infringement; our ability to protect our intellectual property; risks related to security vulnerabilities of our products; use of open source software in our products; and failure to manage our relationships with, or negative impacts from, third parties.

In addition to these risks and uncertainties, investors should review the risks and uncertainties contained in our filings with the Securities and Exchange Commission (SEC), including our Current Reports on Form 8-K, as well as the information to be set forth under the caption "Risk Factors" in MaxLinear's Quarterly Report on Form 10-Q for the three months ended March 31, 2024. All forward-looking statements are based on the estimates, projections and assumptions of management as of April 24, 2024, and MaxLinear is under no obligation (and expressly disclaims any such obligation) to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.