Cautionary Note Concerning Forward-Looking Statements This presentation 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. Unless otherwise indicated, all forward looking statements are based on estimates, projections, and assumptions of MaxLinear as of the date of this presentation. These forward-looking statements include, among others, statements concerning: our expected finan ...

MaxLinear, Inc. (NASDAQ:MXL) Q1 2025 Earnings Conference Call April 23, 2025 4:30 PM ET Company Participants Leslie Green – Investor Relations Kishore Seendripu – Chief Executive Officer Steve Litchfield – Chief Financial Officer and Chief Corporate Strategy Officer Conference Call Participants Christopher Rolland – Susquehanna International Group David Williams – the Benchmark Company Jeremy Kwan – Stifel Quinn Bolton – Needham & Company Ananda Baruah – Loop Capital Markets Richard Shannon – Craig-Hallum S ...

Revenue Performance - Net revenue for the three months ended March 31, 2025, was $95.9 million, a slight increase of 1% compared to $95.3 million in the same period of 2024[159]. - Products shipped to Asia accounted for 78% of net revenue in Q1 2025, up from 59% in Q1 2024, with 49% from Hong Kong and 11% from Vietnam[160]. - Two customers contributed to 28% of net revenue in Q1 2025, while the top ten customers accounted for 66% of total revenue[161]. - Net revenue increased by $0.7 million to $95.9 million for the three months ended March 31, 2025, compared to $95.3 million for the same period in 2024, driven by a recovery in broadband and connectivity markets[183]. - Broadband net revenue rose by $7.8 million, while connectivity net revenue increased by $10.5 million; however, infrastructure revenues decreased by $6.0 million and industrial revenues fell by $11.6 million[183]. Profitability and Expenses - Gross profit margin improved to 56% in Q1 2025 from 52% in Q1 2024, while total operating expenses decreased to 104% of net revenue from 130%[182]. - Gross profit increased by $4.6 million to $53.8 million, with a gross profit margin improving to 56% from 52% year-over-year[184]. - Research and development expenses decreased by $9.3 million to $55.5 million, representing 58% of net revenue, down from 68% in the previous year[185]. - Selling, general and administrative expenses remained flat at $36.5 million, accounting for 38% of net revenue[187]. - Restructuring charges decreased significantly by $14.8 million to $7.9 million, representing 8% of net revenue[189]. Restructuring and Costs - The company incurred $7.9 million in restructuring costs in Q1 2025, including $6.3 million related to CAD tool licenses and $1.6 million in severance[166]. - The company expects an additional $4.0 million to $6.0 million in restructuring costs to be incurred in Q2 2025[167]. Cash Flow and Financial Position - As of March 31, 2025, the company had cash and cash equivalents of $102.8 million and net accounts receivable of $98.9 million[198]. - The company reported a net cash used in operating activities of $11.4 million for the three months ended March 31, 2025, a decline from net cash provided of $16.0 million in the same period of 2024[210][211]. - Working capital decreased to $123.5 million as of March 31, 2025, down from $141.2 million at December 31, 2024[209]. - Total cash, cash equivalents, and restricted cash decreased to $104.1 million as of March 31, 2025, compared to $119.6 million at December 31, 2024[209]. - The company’s long-term debt obligations total $125.0 million, with no amounts drawn from the $100.0 million revolving credit facility as of March 31, 2025[209]. - Cash used in investing activities was $2.0 million for the three months ended March 31, 2025, a decrease from $8.7 million in the same period of 2024[210][212]. - The company’s net cash used in financing activities was $2.1 million for the three months ended March 31, 2025, showing minimal change from $2.1 million in the prior year[210][213]. Tax and Interest - The income tax provision for Q1 2025 was $0.7 million, compared to an income tax benefit of $1.8 million in Q1 2024[193]. - Interest and other income (expense), net changed from income of $0.5 million in Q1 2024 to an expense of $2.9 million in Q1 2025, a decrease of $3.5 million[192]. Market and Product Development - The company continues to innovate with new products in advanced semiconductor process nodes such as 16nm and 5nm[159]. - Broadband revenue increased by 24% to $40.9 million in Q1 2025, representing 43% of total net revenue[182]. - Connectivity revenue surged by 108% to $20.2 million, accounting for 21% of net revenue in Q1 2025[182]. - Industrial and multi-market revenue decreased by 59% to $8.3 million, representing 9% of net revenue[182]. Other Financial Considerations - A hypothetical change of 100 basis points in foreign currency exchange rates would result in a translation gain change of approximately $1.1 million[216]. - The company is subject to variable interest rates on its credit agreements, with potential impacts from high interest rates being monitored[217]. - The company terminated the Merger Agreement with Silicon Motion on July 26, 2023, relieving it of obligations to close[199]. - The company’s planned capital expenditures as of March 31, 2025, were not material[209].

Financial Performance - Q1 2025 net revenue was $95.9 million, representing a 4% sequential increase and a 1% year-over-year increase[4]. - GAAP gross margin for Q1 2025 was 56.1%, up from 55.6% in the prior quarter and 51.7% in the year-ago quarter[5]. - Non-GAAP operating expenses decreased to $58.4 million, or 61% of net revenue, compared to $61.3 million, or 67% of net revenue in the prior quarter[5]. - GAAP loss from operations was 48% of net revenue, an improvement from 45% in the prior quarter and 78% in the year-ago quarter[5]. - The company expects Q2 2025 net revenue to be approximately $95 million to $115 million[6]. - GAAP gross margin guidance for Q2 2025 is projected to be between 54.5% and 57.5%[8]. - Non-GAAP gross margin guidance for Q2 2025 is projected to be between 57.5% and 60.5%[8]. - The company anticipates achieving positive cash flow in Q2 2025[3]. - Net revenue for the three months ended March 31, 2025, was $95,933 million, a 0.7% increase from $95,269 million in the same period last year[24]. - Gross profit increased to $53,831 million, up from $49,268 million year-over-year, reflecting a gross margin improvement[24]. - The net loss for the quarter was $49,713 million, an improvement from a net loss of $72,309 million in the same period last year[24]. - Non-GAAP net loss for the quarter was $4,371 million, compared to $17,403 million in the same quarter last year, showing significant improvement[30]. - Basic net loss per share improved to $(0.58) from $(0.88) year-over-year, reflecting better operational performance[24]. Cash Flow and Expenses - Cash and cash equivalents at the end of the period were $102,773 million, down from $191,882 million a year ago[28]. - Accounts receivable increased to $98,925 million from $126,230 million year-over-year, indicating improved collection efforts[28]. - The company reported a net cash used in operating activities of $11,400 million, an improvement from $27,838 million in the previous quarter[26]. - Total operating expenses rose to $99,925 million, compared to $123,884 million in the same quarter last year, primarily due to reduced restructuring charges[24]. - Research and development expenses were $55,457 million, a decrease from $64,766 million in the same quarter last year, indicating cost management efforts[30]. Operational Efficiency - GAAP gross margin increased to 56.1% in Q1 2025 from 51.7% in Q1 2024[31]. - Non-GAAP gross margin decreased slightly to 59.1% in Q1 2025 from 60.6% in Q1 2024[31]. - GAAP R&D expenses decreased to 57.8% in Q1 2025 from 68.0% in Q1 2024[31]. - Non-GAAP R&D expenses decreased to 37.1% in Q1 2025 from 50.8% in Q1 2024[31]. - GAAP SG&A expenses increased to 38.1% in Q1 2025 from 38.3% in Q1 2024[31]. - Non-GAAP SG&A expenses improved slightly to 23.7% in Q1 2025 from 27.7% in Q1 2024[31]. - GAAP net loss improved to (51.8)% in Q1 2025 from (75.9)% in Q1 2024[31]. - Non-GAAP net loss improved to (4.6)% in Q1 2025 from (18.3)% in Q1 2024[31]. - Total non-GAAP adjustments before income taxes increased to 46.5% in Q1 2025 from 60.5% in Q1 2024[31]. - GAAP loss from operations improved to (48.1)% in Q1 2025 from (78.3)% in Q1 2024[31]. Strategic Focus - Management highlighted strong product traction and revenue growth potential with Tier-1 customers in high-value categories[3]. - The company is focused on market share expansion and ongoing industry recovery to drive growth in 2025 and beyond[3].

MaxLinear Q4'24 Earnings January 29, 2025 Cautionary Note Concerning Forward-Looking Statements This presentation 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. Unless otherwise indicated, all forward looking statements are based on estimates, projections, and assumptions of MaxLinear as of the date of this presentation. These forward- looking statements include, among others ...

Financial Performance - MaxLinear reported a quarterly loss of $0.09 per share, better than the Zacks Consensus Estimate of a loss of $0.13, and compared to earnings of $0.01 per share a year ago, indicating an earnings surprise of 30.77% [1] - The company posted revenues of $92.17 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.40%, but down from year-ago revenues of $125.35 million [2] - Over the last four quarters, MaxLinear has surpassed consensus EPS estimates just once and topped consensus revenue estimates three times [2] Stock Performance and Outlook - MaxLinear shares have increased by approximately 3.5% since the beginning of the year, compared to the S&P 500's gain of 3.2% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at -$0.05 on revenues of $93.29 million, and $0.42 on revenues of $450.88 million for the current fiscal year [7] Industry Context - The Semiconductor - Analog and Mixed industry, to which MaxLinear belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of MaxLinear's stock may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Financial Performance - In the year ended December 31, 2024, net revenue was $360.5 million, with slower than expected recovery in sales across all end markets due to excess inventory and slower demand in regions like China [352]. - Net revenue decreased by $332.7 million to $360.5 million for the year ended December 31, 2024, a decline of 48% compared to $693.3 million in 2023, primarily due to macroeconomic conditions impacting customer demand [382]. - Cost of net revenue decreased by $141.9 million to $165.7 million for the year ended December 31, 2024, a reduction of 46% compared to $307.6 million in 2023 [383]. - Gross profit decreased by $190.9 million to $194.8 million for the year ended December 31, 2024, resulting in a gross profit margin of 54%, down from 56% in 2023 [383]. - Research and development expenses decreased by $44.3 million to $225.2 million for the year ended December 31, 2024, representing 62% of net revenue, up from 39% in 2023 [384]. - Selling, general and administrative expenses increased by $6.2 million to $138.3 million for the year ended December 31, 2024, accounting for 38% of net revenue, compared to 19% in 2023 [387]. - Restructuring charges increased by $33.6 million to $53.4 million for the year ended December 31, 2024, a significant rise of 170% compared to $19.8 million in 2023 [390]. - Impairment losses decreased by $1.2 million to $1.2 million for the year ended December 31, 2024, a decline of 49% compared to $2.4 million in 2023 [389]. Customer and Market Insights - Products shipped to Asia accounted for 75% of net revenue in 2024, with 41% from Hong Kong and less than 10% from mainland China [353]. - One customer accounted for 12% of net revenue in 2024, while the top ten customers collectively accounted for 60% of net revenue [354]. - The decrease in net revenue was driven by declines across all segments, with broadband revenue down 43%, connectivity down 60%, infrastructure down 36%, and industrial and multi-market down 58% [382]. - The company has experienced geopolitical tensions and changing trade policies affecting the semiconductor industry [352]. Costs and Expenses - The company incurred $53.4 million in restructuring costs due to workforce reductions in 2024, compared to $19.8 million in 2023 [361]. - The company expects research and development expenses to increase in future years as it develops products to drive future growth [385]. - The company anticipates selling, general and administrative expenses to rise in future years as it expands its sales and marketing organization [388]. Cash Flow and Liquidity - As of December 31, 2024, cash and cash equivalents totaled $118.6 million, down from $187.3 million in 2023, while working capital decreased to $141.2 million from $265.9 million [400][410]. - Total cash, cash equivalents, and restricted cash amounted to $119.6 million as of December 31, 2024, compared to $188.4 million in 2023 [410]. - In the year ended December 31, 2024, net cash used in operating activities was $45.3 million, a decline from net cash provided of $43.4 million in 2023, primarily due to decreased product shipment volumes and increased working capital by $68.4 million [413]. - Net cash used in investing activities increased to $23.4 million in 2024 from $15.9 million in 2023, with $17.7 million spent on property and equipment and $5.8 million on intangible assets [414]. - Net cash provided by financing activities was $1.3 million in 2024, consisting of $4.1 million from stock option exercises, offset by $2.8 million in cash outflows for tax withholdings on restricted stock units [415]. - The company experienced a total decrease in cash, cash equivalents, and restricted cash of $68.8 million in 2024, compared to a minimal decrease in 2023 [412]. Debt and Taxation - The company has $125.0 million of principal outstanding under a senior secured term B loan facility, with a revolving credit facility of up to $100.0 million remaining undrawn as of December 31, 2024 [402][410]. - Long-term debt obligations are projected at $125.0 million, with operating lease obligations of $28.9 million and purchase obligations of $51.3 million due within one year [407]. - The company maintains a valuation allowance on deferred tax assets due to cumulative losses, impacting its effective tax rate compared to the U.S. federal statutory rate [397]. - The income tax provision decreased by $2.9 million, or 31%, to $6.5 million in 2024 compared to $9.3 million in 2023 [394]. - The company recorded a $4.4 million liability for uncertain tax positions, which may result in cash payments [407]. Future Outlook - Future capital requirements will depend on revenue changes, market acceptance of products, and potential acquisitions, with risks associated with raising additional funds [404]. - The company is monitoring the impact of high interest rates on its ability to service interest and debt obligations, although current operating cash is deemed sufficient for these purposes [421].

Financial Performance - Q4 2024 net revenue was $92.2 million, up 14% sequentially but down 26% year-over-year[4]. - FY 2024 net revenue totaled $360.5 million, a decrease of 48% compared to FY 2023[7]. - Net revenue for Q4 2024 was $92,167 thousand, a decrease of 26.5% compared to $125,353 thousand in Q4 2023[23]. - For the full year 2024, net revenue was $360,528 thousand, a significant decline of 48% from $693,263 thousand in 2023[25]. - The company expects Q1 2025 net revenue to be between $85 million and $105 million[7]. Profitability and Losses - GAAP loss from operations was 62% of net revenue for FY 2024, compared to a loss of 6% in FY 2023[7]. - GAAP diluted loss per share for Q4 2024 was $0.68, an improvement from $0.90 in the prior quarter[4]. - Non-GAAP diluted loss per share for FY 2024 was $0.90, compared to earnings of $1.10 in FY 2023[7]. - Net loss for Q4 2024 was $57,838 thousand, compared to a net loss of $38,500 thousand in Q4 2023, representing a 50.5% increase in losses[23]. - The net loss for the full year 2024 was $245,198 thousand, compared to a net loss of $73,147 thousand in 2023, indicating a 235.5% increase in losses[25]. Margins and Expenses - GAAP gross margin for Q4 2024 was 55.6%, an increase from 54.4% in the prior quarter[4]. - Non-GAAP gross margin for FY 2024 was 59.7%, down from 60.8% in the previous year[7]. - Gross profit for Q4 2024 was $51,248 thousand, down 25.3% from $68,539 thousand in Q4 2023[23]. - Research and development expenses for Q4 2024 were $51,278 thousand, slightly down from $65,250 thousand in Q4 2023[23]. - Research and development (R&D) expenses for the year ended December 31, 2024, were $225.189 million, down from $269.504 million in 2023[37]. Cash and Assets - Cash, cash equivalents, and restricted cash at the end of Q4 2024 were $119,603 thousand, down from $188,356 thousand at the end of Q4 2023[30]. - The company reported a net cash used in operating activities of $27,838 thousand for Q4 2024, compared to $16,573 thousand in Q4 2023[28]. - Total assets decreased to $864.639 million as of December 31, 2024, down from $895.303 million in the previous quarter, and significantly lower than $1,080.257 million a year ago[32]. Operational Focus - The company is focused on operational efficiency and aims to return to profitability in the coming quarters[6]. - Management reported shipping over one million units in the optical interconnect business, indicating strong customer traction[6]. Other Financial Metrics - Total operating expenses for Q4 2024 were $92,421 thousand, a decrease of 16.6% compared to $110,282 thousand in Q4 2023[23]. - Total other income (expense), net for Q4 2024 was $351 thousand, a significant recovery from a loss of $888 thousand in Q4 2023[23]. - Total liabilities increased to $348.356 million as of December 31, 2024, from $316.801 million in the previous quarter[32]. - Stockholders' equity decreased to $516.283 million as of December 31, 2024, down from $686.265 million a year ago[32].

Core Viewpoint - MaxLinear is navigating through challenges following the termination of its acquisition of Silicon Motion, while also showing signs of recovery in its business operations and stock performance. Group 1: Company Overview - MaxLinear Inc. designs and manufactures chips for high-speed communication and data transfer systems, focusing on multi-gig connectivity [1] - The company is a leader in providing integrated circuits for wireless and wired broadband access, connectivity, and infrastructure applications [1] Group 2: Recent Developments - MaxLinear terminated its $3.8 billion acquisition of Silicon Motion due to unmet closing conditions, leading to a legal dispute where SIMO seeks a $160 million termination fee [2][3] - A class action lawsuit against MaxLinear for misrepresenting its commitment to the merger was dismissed, resulting in a 25% increase in share price [3] Group 3: Financial Performance - In Q3 2024, MaxLinear reported an EPS loss of $0.36, missing consensus estimates by $0.04, while revenues fell 40.2% year-over-year to $81.1 million, slightly beating estimates [5] - For Q4 2024, the company expects revenues between $80 million and $100 million, with a non-GAAP gross margin forecast of 57.5% to 60.5% [5] Group 4: Market Outlook - Analysts have a 12-month stock price forecast for MaxLinear at $23.86, indicating a potential upside of 60.65% [4][35] - The stock has completed a cup pattern, suggesting a potential recovery following its Q3 earnings report [34] Group 5: Product Innovations - MaxLinear introduced its MaxAI technology framework, which will be integrated into its AnyWAN and Wi-Fi 7 solutions [1] - The Panther III storage accelerator product is gaining traction, showcasing significant performance improvements in enterprise storage applications [32][33] Group 6: Customer and Market Dynamics - Customer orders are improving, with a run rate of one million units for high-speed optical interconnect products expected by year-end [31] - The demand for 800 GB PAM4 Ethernet is increasing, alongside continued interest in 400 GB solutions [31]

Financial Data and Key Metrics - Q3 2024 revenue was $81.1 million, slightly above the midpoint of guidance, with a non-GAAP gross margin of 58.7% [5] - Total revenue for Q3 2024 was $81.1 million, down 12% from $92 million in the previous quarter [12] - Broadband revenue for Q3 was $32 million, connectivity revenue was $13 million, infrastructure revenue was $23 million, and industrial multi-market revenue was $13 million [12] - GAAP and non-GAAP gross margin for Q3 were approximately 54.4% and 58.7% of revenue, respectively, with the delta driven by $3.5 million of acquisition-related intangible asset amortization [12] - Q3 GAAP operating expenses were $110.8 million, and non-GAAP operating expenses were $72.8 million, with the delta primarily due to restructuring costs of $26.8 million and stock-based compensation of $11.5 million [13] - Q3 cash flow used in operating activities was approximately $31 million, with $149 million in cash, cash equivalents, and restricted cash at the end of the quarter [13] - Days sales outstanding (DSO) decreased to approximately 54 days in Q3, and gross inventory also decreased compared to the previous quarter [14] Business Line Data and Key Metrics - In infrastructure, the company's product shipment volume run rate is now greater than 1 million units per year, driven by high-speed optical data center connectivity [7] - The company is making significant progress in 5G wireless infrastructure with its millimeter and microwave backhaul modem and RF transceiver products [8] - The Panther III series hardware storage accelerators are gaining traction in enterprise storage and compute subsystems, with multiple design wins across major geographies [9] - In Ethernet connectivity, the company has a broad portfolio of 2.5 gigabit Ethernet switch products, with a Tier 1 North American enterprise OEM customer expected to ramp to production in 2025 [9] - Broadband and Wi-Fi connectivity are seeing design win traction, particularly with the PON platform and Wi-Fi 7 single-chip solution, with potential to reach a $100 million run rate over the next 24 months [10] Market Data and Key Metrics - The company is seeing exponential growth in AI workloads driving design activity in high-speed optical data center connectivity [7] - 800 gigabit PAM4 Ethernet adoption is starting to ramp, with 400 gigabit demand continuing to accelerate [7] - The company is well-positioned for content growth and revenue expansion in 5G wireless infrastructure as service provider CapEx spend is expected to improve in 2025 [8] - The broadband business is expected to grow in 2025, with order rates picking up, particularly in the cable business, which is still dominated by DOCSIS 3.1 [20][21] Company Strategy and Industry Competition - The company is focused on innovation and investment in strategic applications such as optical high-speed interconnects, wireless infrastructure, storage, Ethernet, Wi-Fi, and fiber broadband access gateways [15] - The company is leveraging its Max AI technology framework to enhance network performance, security, and user connectivity experience, strengthening its competitive position in the market [11] - The company is seeing strong traction with new products in high-value markets, including optical data center interconnect, enterprise Ethernet, storage accelerators, 5G wireless infrastructure, and multi-gigabit PON broadband access [12] Management Commentary on Operating Environment and Future Outlook - Management is confident in achieving sequential revenue improvement in the coming quarters, driven by early signs of recovery in customer order rates and new product traction [5] - The company expects Q4 2024 revenue to be between $80 million and $100 million, with broadband slightly down and infrastructure, connectivity, and industrial multi-market up [14] - Management is optimistic about the company's ability to exceed the 1 million unit per year run rate for optical transceivers in 2025, driven by strong design win traction [17][18] - The company expects to see a 30%+ increase in infrastructure business revenue in 2025, driven by recovery in telecom spending and growth in optical and Panther products [33] Other Important Information - The company received the Best Emerging Supplier of the Year award from Cisco in Q3 [6] - The company showcased new technology and products at several industry events, including the Flash Memory Summit, ECOC, and Network X Summit [6] - The company is seeing widespread interest in next-generation broadband gateways and routers, with potential for significant Ethernet revenue growth over the coming years [9] Q&A Session Summary Question: Optical Transceiver Mix and Run Rate [16] - The company is forecasting to ship over 1 million units of optical transceivers by the end of 2024, with 800 gigabit being the larger fraction relative to 400 gigabit transceivers [17] - The company expects to exceed the 1 million unit run rate in 2025, driven by strong design win traction [18] Question: Broadband Business Outlook [19] - The broadband business is expected to grow in 2025, with order rates picking up, particularly in the cable business, which is still dominated by DOCSIS 3.1 [20][21] Question: Q4 Revenue Growth Drivers [23] - The company is seeing improved demand across the board, with strong bookings in broadband and optical, and modest recovery in connectivity and industrial multi-market [23][24] Question: Operating Expense Reduction [25] - The company is on track to realize a 20% to 25% reduction in operating expenses next year, with the majority of cost reductions already realized [25] Question: Book-to-Bill Ratio [27] - The company saw a significant uptick in bookings in Q3, with backlogs building nicely for Q4 and Q1, indicating a book-to-bill ratio above 1 [27] Question: Infrastructure Revenue Excluding Optical [30] - The company expects a 30%+ increase in infrastructure business revenue in 2025, driven by recovery in telecom spending and growth in optical and Panther products [33] Question: Normalized Revenue for Broadband and Connectivity [35] - The company expects broadband and connectivity revenue to grow double digits next year, driven by new product wins, share gains, and market transitions [36][37] Question: Optical Design Wins and Customer Qualification [38] - The company is working with all the top module makers globally, targeting major data centers, with strong traction in China and the U.S. [38][39] Question: Ethernet Switch Product Adoption [42] - The company is seeing excellent adoption of its 2.5 gigabit Ethernet switch products, with potential for $50 million to $100 million in annualized revenue over the next three years [42][43] Question: Max AI Monetization Strategy [44] - The company plans to offer Max AI as a default feature for competitive differentiation, with potential for customized solutions for large customers [44][45] Question: China Hyperscaler Opportunity [47] - The company's low-power optical products are well-positioned for growth in China, with strong differentiation in both the U.S. and China markets [47] Question: Wi-Fi and Connectivity Revenue Drivers [48] - The company is seeing growth in Wi-Fi and Ethernet connectivity, driven by new market opportunities and strong traction in industrial and enterprise markets [48] Question: Optical DSP Run Rate Clarification [50] - The company clarified that the 1 million unit run rate for optical DSPs is annual, not quarterly, with expectations to exceed this run rate in 2025 [51] Question: China Restrictions Impact [54] - The company estimated a $5 million to $10 million impact from China restrictions in the back half of 2024, but expects this to be behind them moving forward [54] Question: PON Fiber Rollout Timing [55] - The company expects PON fiber rollout momentum to build in the latter half of 2025, with significant revenue growth potential in 2026 and 2027 [55][56] Question: Wireless Infrastructure Recovery [58] - The company expects steady recovery in wireless infrastructure throughout 2025, driven by telecom spending and upgrades in Southeast Asia, Latin America, and India [58][59] Question: Storage Business Outlook [60] - The company maintains its revenue target of $50 million to $75 million for the storage business by 2026, with potential for growth beyond storage applications [60][61] Question: Rushmore 200 Gig Revenue Timing [63] - The company expects to showcase its Rushmore 200 gig product at OFC, with initial revenue driven by AI systems, particularly NVIDIA [63][64]