(1) We adopted ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting in the second quarter of 2016, and included excess tax benefits in the provision for income taxes instead of in additional paid-in capital. As a result, when computing diluted EPS using the treasury stock method, fewer hypothetical shares can be repurchased resulting in a greater number of incremental shares being issued upon the exercise of share-based payment awards. The impact of adoption for the three months ended June 30, 2016 was a reduction to the provision for income taxes and increase to net income of $3.5 million and increase to basic earnings per share of $0.06 and diluted earnings per share of $0.04.  Diluted earnings per share for the three months ended June 30, 2016 was also impacted by an increase of 910,000 shares in the number of incremental shares used in computing diluted EPS.

⁽²⁾ The adoption of ASU No. 2016-09 also resulted in the following changes to previously reported amounts for the three months ended March 31, 2016:

		Three months ended March 31, 2016
		As reported				As adjusted
		(in thousands, except per share amounts)
Provision for income taxes		$	2,558			$	993
Net income		$	19,116			$	20,681
Basic earnings per share		$	0.31			$	0.33
Diluted earnings per share		$	0.29			$	0.31
Diluted weighted average shares outstanding		65,818				66,643

⁽³⁾ Includes two months of Entropic operations.

MAXLINEAR, INC.
UNAUDITED GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
	Six Months Ended
	June 30, 2016(1)				June 30, 2015 (2)
Net revenue	$	204,372			$	106,220
Cost of net revenue	80,289				57,607
Gross profit	124,083				48,613
Operating expenses:
Research and development	47,789				39,274
Selling, general and administrative	30,115				34,564
Restructuring charges	2,106				11,389
Total operating expenses	80,010				85,227
Income (loss) from operations	44,073				(36,614		)
Interest income	337				121
Other expense, net	(74		)		(56		)
Income (loss) before income taxes	44,336				(36,549		)
Provision for income taxes (income tax benefit)	1,071				(1,180		)
Net income (loss)	$	43,265			$	(35,369	)
Net income (loss) per share:
Basic	$	0.69			$	(0.78	)
Diluted	$	0.64			$	(0.78	)
Shares used to compute net income (loss) per share:
Basic	63,056				45,367
Diluted	67,110				45,367

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