Core Insights - MaxLinear, Inc. is under investigation for potential violations of federal securities laws following a significant drop in stock price after disappointing earnings results [1][2][3] Financial Performance - For Q2 2024, MaxLinear reported net revenue of $92 million, representing a 50% decrease year-over-year, attributed to prolonged burn-off of excess customer inventory leading to weakened demand [2] - The stock price closed at $22.29 per share on July 24, 2024, and dropped to $16.40 per share by the next trading day, marking a decline of $5.89 per share or 26% [3] Legal Context - Bleichmar Fonti & Auld LLP is investigating MaxLinear and encourages investors to seek additional information regarding potential legal options [1][4] - The law firm operates on a contingency fee basis, meaning shareholders are not responsible for court costs or litigation expenses [4] Firm Background - Bleichmar Fonti & Auld LLP is recognized as a leading international law firm specializing in securities class actions and shareholder litigation, with notable recoveries in past cases [5]

NEW YORK, Aug. 10, 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 co ...

NEW YORK, Aug. 06, 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 co ...

NEW YORK, July 31, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against MaxLinear, Inc. (NASDAQ: MXL) and Domino's Pizza, Inc. (NSYE: DPZ). Our investigations concern whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided. MaxLinear, Inc. (NASDAQ: MXL) Following the close of the ...

Core Insights - MaxLinear, Inc. is under investigation for potential violations of federal securities laws, which has led to a significant decline in its stock price [2][6]. - The company reported a net revenue of $92 million for Q2 2024, representing a 50% decrease year-over-year, attributed to a prolonged burn-off of excess customer inventory and weakened demand [7]. Group 1: Company Overview - MaxLinear provides integrated radio-frequency analog and mixed-signal semiconductor products for broadband communications applications [3]. Group 2: Stock Performance - Following the announcement of its earnings results on July 24, 2024, MaxLinear's stock price closed at $22.29 per share, dropping from a pre-market trading price of $16.40, a decline of $5.89 per share or 26% [6].

Investment Rating - The report does not explicitly state an investment rating for the company Core Insights - The company has experienced a significant decline in revenue, with Q2 2024 revenue reported at $91.99 million, a decrease of 50% year-over-year and 3% quarter-over-quarter, primarily due to weak broadband demand and a sluggish telecom market [41][63] - The company expects Q3 2024 revenue to be between $70 million and $90 million, with a GAAP gross margin projected at approximately 52.5% to 55.5% [4][32][68] - The company has achieved continuous improvement in orders over the past four quarters, although the recovery has not yet reached expected levels [7] Revenue Breakdown - For Q2 2024, the revenue by segment was as follows: Broadband revenue was $21.83 million, Connectivity revenue was $13.26 million, Infrastructure revenue was $31.79 million, and Industrial and multi-market revenue was $25.11 million [41][66] - The revenue by region for Q2 2024 was: Asia $72.43 million (79%), Europe $11.38 million (12%), United States $7.15 million (9%), and Other regions $1.03 million (1%) [66][67] Future Outlook - The company anticipates that its optical interconnect business will exceed $30 million in revenue this year, driven by ongoing collaborations with major data center clients [71] - The company is optimistic about the demand for PON (Passive Optical Network) market in 2025, particularly with Tier 1 customers [75] - The company plans to reduce non-GAAP operating expenses by approximately 20% to 25% in FY2025 compared to FY2024 [53][105]

NEW YORK, July 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 co ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $92 million, down 3% from $95.3 million in the previous quarter [20] - Non-GAAP gross margin for Q2 was 60.2%, while GAAP gross margin was approximately 54.6% [21] - Non-GAAP loss from operations for Q2 2024 was 21% of net revenue [22] - Cash flow used in operating activities was approximately $3 million, with $186 million in cash, cash equivalents, and restricted cash at the end of Q2 [22] Business Line Data and Key Metrics Changes - Broadband revenue for Q2 was $22 million, connectivity revenue was $13 million, infrastructure revenue was $32 million, and industrial multi-market revenue was $25 million [20] - The infrastructure business, particularly high-speed optical interconnect, is expected to exceed $30 million in revenue this year [12] - Revenue in 5G wireless infrastructure grew strongly in Q2 compared to the prior quarter [14] Market Data and Key Metrics Changes - The company is experiencing weakness in broadband demand due to excess customer inventory from the supply chain crisis [9] - Continued softness in telecom markets is noted, impacted by U.S.-China tensions and regulatory compliance [9] - The company expects channel inventory to bottom in the second half of the year [10] Company Strategy and Development Direction - The company is focused on R&D investments in high-value markets, including optical data center interconnect and 5G wireless technologies [10] - The company anticipates strong profitability growth as new products ramp up and R&D spending moderates [10] - The strategy includes optimizing efforts around new opportunities in infrastructure, Ethernet, storage, and Wi-Fi 7 [19] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over slower business recovery than anticipated but remains confident in resuming growth in 2025 [9] - The company is aligning its cost structure with the current environment, expecting a 20% to 25% reduction in operating expenses for fiscal 2025 [25][26] - Management highlighted the importance of operational efficiency and fiscal discipline while planning for future growth [28] Other Important Information - The company is on track to exceed its optical revenue target range of $10 million to $30 million for 2024 [8] - The company expects Q3 2024 revenue to be between $70 million and $90 million, with GAAP gross margin expected to be approximately 52.5% to 55.5% [24] Q&A Session Summary Question: Impact of shipment restrictions in telecom - Management indicated that the revocation of a government license impacted shipments by approximately $5 million to $8 million in Q2, with a potential impact of $10 million to $15 million in the second half of the year [30][31] Question: Guidance on infrastructure revenue - Management clarified that the weakness in infrastructure revenue is primarily due to wireless infrastructure, while optical is performing well and on track [32][33] Question: Inventory drain and end demand outlook - Management acknowledged that inventory is depleting slower than expected but sees improvements in bookings and inventory levels [36][38] Question: Share loss concerns in broadband and connectivity - Management noted that while there may be some share shifts, the focus remains on new technologies and product transitions that could offset potential losses [42][44] Question: OpEx reduction and spending plans - Management confirmed a planned reduction in operating expenses of 20% to 25% for fiscal 2025, with a focus on maintaining investment in key product areas [53][56] Question: Future revenue drivers and customer base - Management indicated that multiple customers will drive revenues in 2025, with ongoing investments in optical and broadband technologies [91][92]

This quarterly report represents an earnings surprise of -25%. A quarter ago, it was expected that this chipmaker would post a loss of $0.20 per share when it actually produced a loss of $0.21, delivering a surprise of -5%. MaxLinear, which belongs to the Zacks Semiconductor - Analog and Mixed industry, posted revenues of $91.99 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 8.03%. This compares to year-ago revenues of $183.94 million. The company has topped consensus reven ...

13. Leases Operating Leases Operating lease arrangements primarily consist of office leases expiring in various years through 2029. These leases have original terms of approximately 2 to 8 years and some contain options to extend the lease up to 5 years or terminate the lease, which are included in right-of-use assets and lease liabilities when the Company is reasonably certain it will renew the underlying leases. Since the implicit rate of such leases is unknown and the Company is not reasonably certain to ...