MaxLinear, Inc. reported significant declines in revenue and profitability for the third quarter and the nine months ended September 30, 2024, compared to the same periods in 2023. Net revenue for Q3 2024 was $81.1 million, down 40% from $135.5 million in Q3 2023. For the nine months, revenue decreased by 53% to $268.4 million from $567.9 million. The decline was attributed to lower shipments across various product lines, particularly in the infrastructure and industrial segments, which saw decreases of 54% and 64%, respectively.
Gross profit for Q3 2024 was $44.1 million, a 40% drop from $73.9 million in Q3 2023. The company's total operating expenses increased to $110.8 million in Q3 2024, up from $91.8 million in the prior year, leading to a loss from operations of $66.7 million, compared to a loss of $17.8 million in Q3 2023. The net loss for Q3 2024 was $75.8 million, significantly higher than the $39.8 million loss reported in Q3 2023. For the nine months, the net loss reached $187.4 million, compared to a loss of $34.6 million in the same period last year.
MaxLinear's restructuring efforts included a workforce reduction initiated in July 2024, resulting in restructuring costs of $26.8 million for Q3 2024. Cumulatively, the company incurred $43.3 million in restructuring costs related to workforce reductions in 2023 and 2024. The company also faced an $18.3 million ticking fee due to the termination of its merger agreement with Silicon Motion in July 2023, which was attributed to unmet conditions and a material adverse effect on Silicon Motion.
As of September 30, 2024, MaxLinear's cash and cash equivalents totaled $148.5 million, down from $187.3 million at the end of 2023. Total current assets decreased to $328.3 million from $488.0 million, while total liabilities fell to $338.4 million from $394.0 million. The company's total stockholders' equity also declined to $556.9 million from $686.3 million.
In terms of market performance, the company reported that Asia accounted for 72% of its net revenue in the nine months ended September 30, 2024, a slight decrease from 74% in the same period of 2023. The company is focusing on improving revenue in key markets, particularly broadband, which has been slow to recover. Future growth will depend on market penetration, product innovation, and navigating regulatory challenges.
About MAXLINEAR, INC
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