MaxLinear(US:MXL)2025-04-23 20:07Revenue 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].