MaxLinear(US:MXL)2025-04-24 01:52Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $95.9 million, up from $92.2 million in the previous quarter [22] - Non-GAAP gross margin for Q1 was 59.1%, while GAAP gross margin was approximately 56.1% [22] - GAAP operating expenses were $99.9 million, and non-GAAP operating expenses were $58.4 million [23] - Cash flow used in operating activities was approximately $11.4 million, with $104 million in cash, cash equivalents, and restricted cash at the end of Q1 [24] Business Line Data and Key Metrics Changes - Infrastructure revenue for Q1 was approximately $27 million, broadband revenue was approximately $41 million, connectivity revenue was $20 million, and industrial multi-market revenue was $8 million [22] - The company expects all end markets to be up in Q2 2025, including infrastructure, broadband, connectivity, and industrial multi-market [28] Market Data and Key Metrics Changes - The demand for IP data is driving significant growth in high-speed interconnects in data centers and telecom networks [12] - The broadband and connectivity markets are showing signs of recovery, with expectations for continued growth throughout the year [17] Company Strategy and Development Direction - The company is focused on high-speed interconnects, broadband connectivity, and storage accelerators as key growth areas [20] - Investments in strategic applications such as optical high-speed interconnects and wireless infrastructure are expected to drive new business opportunities [30] - The company aims to return to profitability and generate positive cash flow in Q2 2025 [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of customer orders and new product traction, indicating a positive outlook for growth in 2025 and beyond [30] - The company is closely monitoring the tariff situation and its potential impact on demand [26][27] - Management noted that the broadband market is inelastic, suggesting that demand will remain stable despite tariff uncertainties [90] Other Important Information - The company is experiencing strong bookings and demand recovery, particularly in the broadband business [43] - The company showcased multiple design wins and product demonstrations at industry conferences, indicating strong customer interest [12][56] Q&A Session Summary Question: What are the risks in the supply chain due to tariffs? - Management indicated that there is minimal direct impact from tariffs on semiconductors, and the supply chain remains stable [36][42] Question: Can you rank the segments based on bookings and inventory? - Management noted strong bookings across all segments, with a particular focus on broadband and telecom markets recovering from previous inventory depletion [48][50] Question: What is the outlook for design wins in the DSP side for Keystone? - Management expects significant revenue growth from Keystone, projecting a doubling of last year's revenue [58][60] Question: How do you see the growth in broadband and connectivity? - Management ranked infrastructure as the most exciting growth area, followed by broadband, with expectations for strong recovery and new product cycles [68][70] Question: What is the expected ramp for the Tier 1 North American carrier? - Management anticipates a ramp in shipments towards the end of the year, with significant growth expected next year [64][66] Question: How are you approaching guidance amid tariff uncertainties? - Management stated that guidance was based on current tariff expectations, with a focus on maintaining growth despite uncertainties [91][94]