MaxLinear(MXL)

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MaxLinear(MXL) - 2024 Q3 - Earnings Call Transcript
2024-10-24 00:59
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]
MaxLinear (MXL) Reports Q3 Loss, Tops Revenue Estimates
ZACKS· 2024-10-23 22:46
Company Performance - MaxLinear reported a quarterly loss of $0.36 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.32, and compared to earnings of $0.02 per share a year ago, indicating a significant decline [1] - The company's revenues for the quarter ended September 2024 were $81.1 million, surpassing the Zacks Consensus Estimate by 1.38%, but down from $135.53 million year-over-year [1] - Over the last four quarters, MaxLinear has not been able to surpass consensus EPS estimates, and the recent earnings surprise was -12.50% [1] Stock Performance - MaxLinear shares have declined approximately 39% since the beginning of the year, contrasting with the S&P 500's gain of 22.7% [2] - The current consensus EPS estimate for the upcoming quarter is -$0.11 on revenues of $87.68 million, and for the current fiscal year, it is -$0.89 on revenues of $354.97 million [4] Industry Outlook - The Semiconductor - Analog and Mixed industry, to which MaxLinear belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may negatively impact stock performance [5] - Another company in the same industry, Monolithic Power, is expected to report quarterly earnings of $3.96 per share, reflecting a year-over-year increase of 28.6%, with revenues projected at $600.1 million, up 26.4% from the previous year [5]
MaxLinear(MXL) - 2024 Q3 - Quarterly Report
2024-10-23 20:07
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2024 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission file number: 001-34666 MaxLinear, Inc. (Exact name of registrant as specified in its charter) Delaware 14-1896129 (State or other jurisdiction of incorp ...
MaxLinear(MXL) - 2024 Q3 - Quarterly Results
2024-10-23 20:06
Exhibit 99.1 FOR IMMEDIATE RELEASE MaxLinear, Inc. Announces Third Quarter 2024 Financial Results • Net revenue of $81.1 million in Q3, GAAP gross margin of 54.4% and non-GAAP gross margin of 58.7% Carlsbad, Calif. – October 23, 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 third quarter ended September 30, 2024. Third Quarter Financial Highlights GAAP basis: • Net revenue was ...
Kirby McInerney LLP is Investigating Potential Shareholder Claims Against MaxLinear, Inc. (MXL)
GlobeNewswire News Room· 2024-10-03 19:43
NEW YORK, Oct. 03, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that the firm is investigating potential claims against MaxLinear, Inc. ("MaxLinear" or the "Company") (NASDAQ: MXL). The ongoing investigation concerns whether MaxLinear and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices. [Click here to learn more about the investigation] On July 24, 2024, MaxLinear issued a press release announcing its ...
MXL STOCK UPDATE: Investors of MaxLinear, Inc. are Alerted of Pending Securities Fraud Investigation into the Company; Contact BFA Law if You Lost Money (Nasdaq:MXL)
GlobeNewswire News Room· 2024-09-29 10:44
Core Insights - MaxLinear, Inc. is under investigation for potential violations of federal securities laws following a significant drop in stock price [1] - The company's second quarter 2024 net revenue was reported at $92 million, reflecting a 50% year-over-year decline attributed to excess customer inventory and weakened demand [2] - Following the earnings announcement, MaxLinear's stock price fell from $22.29 to approximately $16.40, marking a decline of $5.89 per share or 26% [3] Company Overview - MaxLinear specializes in integrated radio-frequency analog and mixed-signal semiconductor products for broadband communications applications [1] Legal Context - Bleichmar Fonti & Auld LLP is conducting an investigation into MaxLinear and encourages affected investors to seek legal options [4] - The law firm operates on a contingency fee basis, meaning shareholders are not responsible for court costs or litigation expenses [4] Law Firm Credentials - Bleichmar Fonti & Auld LLP is recognized as a leading international law firm in securities class actions and has achieved notable recoveries in past cases, including over $900 million from Tesla's Board of Directors [5]
MXL FRAUD NOTICE: The Securities Fraud Investigation into MaxLinear, Inc. is Ongoing – Contact BFA Law if You Suffered Losses (Nasdaq:MXL)
GlobeNewswire News Room· 2024-09-27 10:18
NEW YORK, Sept. 27, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into MaxLinear, Inc. (NASDAQ: MXL) for potential violations of the federal securities laws. If you invested in MaxLinear, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/maxlinear-inc. Why Did MaxLinear's Stock Drop? MaxLinear provides integrated radio-frequency analog and mixed-signal semiconductor products for broadband c ...
MXL SHAREHOLDER UPDATE: MaxLinear, Inc. is Under Investigation for Securities Fraud; Contact BFA Law if You Lost Money on Your Investment (Nasdaq:MXL)
GlobeNewswire News Room· 2024-09-25 11:11
NEW YORK, Sept. 25, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into MaxLinear, Inc. (NASDAQ: MXL) for potential violations of the federal securities laws. If you invested in MaxLinear, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/maxlinear-inc. Why Did MaxLinear's Stock Drop? MaxLinear provides integrated radio-frequency analog and mixed-signal semiconductor products for broadband c ...
MXL INVESTIGATION NOTICE: MaxLinear, Inc. is Being Investigated for Securities Fraud; Investors that Lost Money are Urged to Contact BFA Law (Nasdaq:MXL)
GlobeNewswire News Room· 2024-09-23 10:16
NEW YORK, Sept. 23, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into MaxLinear, Inc. (NASDAQ: MXL) for potential violations of the federal securities laws. If you invested in MaxLinear, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/maxlinear-inc. Why Did MaxLinear's Stock Drop? MaxLinear provides integrated radio-frequency analog and mixed-signal semiconductor products for broadband c ...
MXL INVESTOR UPDATE: MaxLinear, Inc. Investors are Notified to Contact BFA Law about Ongoing Investigation into the Company for Securities Fraud (Nasdaq:MXL)
GlobeNewswire News Room· 2024-09-21 11:16
NEW YORK, Sept. 21, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into MaxLinear, Inc. (NASDAQ: MXL) for potential violations of the federal securities laws. If you invested in MaxLinear, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/maxlinear-inc. Why Did MaxLinear's Stock Drop? MaxLinear provides integrated radio-frequency analog and mixed-signal semiconductor products for broadband c ...