MXL - Earnings call transcript Q4 2017

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to MaxLinear 2017 Q4 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Gideon Massey, Investor Relations. you. Thank

begin. may You

Gideon Massey

by Good will today's and MaxLinear's conference results. our being XXXX operator. Adam CEO; joining CFO. questions. Spice, fourth you us financial After hosted is call on call comments, Today's Kishore afternoon you, Seendripu, thank and we everyone prepared for quarter Dr. take Thank to discuss

margin, other various expense, and our meaning laws, outlined filing. SEC including security rate, comments results include first XXXX risks and guidelines and Our involve quarter applicable from in other substantial may today markets. tax trends, and Actual from currently forward-looking statements differ as product uncertainties numerous These of arising statements operating revenue, forward-looking interest and price statements well forecasted risks and gross relating tax relating within to geographic expense, opportunities the selling results. competition, our including expense statements uncertainty, average to materially risk and trends, as

fourth obligation which update website at XXst, December no today forward-looking XXXX XXXX, or of detailed Form discussion Investor our Any investors are release to this MaxLinear For the September encourage year and revise uncertainties Relations earnings in filing month. and the our forward-looking The XX-Q to section of filed our these the captioned file statements the upcoming Form XXth, statements. we of has later quarter we SEC affecting ended previously and a our for factors maxlinear.com. is statements, review XX-K expect and section to of made forward-looking the for available quarter any risks as risk ended XXXX, potentially

and reconciliation future income margins, from detailed net GAAP income to report including basis. financial metrics, and both or effective the of We reconciliation net available encourage GAAP inherent future replace presentation pretax non-GAAP because associated to financial or results. income presentation do not we associated margin, measures periods and revenues, stock-based its today of in operating uncertainty gross non-GAAP addition, per not of review the press loss compensation on and certain guidance loss provide our website. ability on not rate, a tax effects. our financial the historical share We discussed the Non-GAAP loss or project release including charges, our do certain MaxLinear operations, for of GAAP In investors expenses, non-GAAP tax with

are business. providing to a more We results information of in meaningful similar this our perform manner to our of analysis enable operating to investors comparison management's

and Seendripu, available turn call also over of for a webcast be call to Lastly, now, website replay CEO on And this will being MaxLinear. me is our weeks. Kishore two the let

Kishore Seendripu

for and Gideon afternoon Thank us today. you joining good you, everyone. Thank all

flat are XX% is and XXXX $XXX.X We revenue which year-over-year million, report up pleased of to QX quarter-over-quarter.

home than both During margin In of transformational we connected and a model, with the application. QX witnessed infrastructure would with with QX, MaxLinear. years that offset in in revenues, to lower like levels. acquired to note record mark-to-market margins consistent and XXXX, posted million in revenue of industrial which annual weakness operating non-GAAP growth delivered $XXX.X were strength by which our brings long-term FX one its marketing businesses target historically included most the close target of two I XXXX we

few our connected decline owing XXXX, from Entropic offset expansion, related on the in market a to years XXXX, initiatives legacy In ago. infrastructure which During business by grew revenue double-digit than XX% of strategic embarked to and a a we $XX million home realize to we started our year-over-year, headwind revenues. market diversification more benefits which target

and connected multimarket consisting Exar and site serving the of Based results; multimarket QX with analog approximately overall and performance diversity XX% infrastructure revenue management industrial on contributed significant respectively. and application. XX%, interface XXXX added also and power XX% of revenues, industrial of products, We addition product home

our to infrastructure execution products a for by industry-leading aided driven XG, significant history growth both cloud, the five diversification data market XXXX networks. our company's for year We anticipated revenue XG, in and expansion strong engineering by was wireless perspectives. continue, Undoubtedly, expect centers, and

Our We backhaul mass the optical hyper-scale microwave adjusting cloud Telluride first our industry's CMOS per system development gigahertz We strategic platform recent second example, industry's out five market. PAM-X IT transceiver, SerDes XX of device production organic the achieved nanometer frequency for milestones. range significant RF XX the spanning a taped the started data the XXX-gigabit to wireless market.

driver believe for With data the to integrated major XXX-gigabit DSP are the the center speed we and Telluride address a PAM-X plus of in cycle data solution, next capacity. position and inside consisting we of sampling upgrade GIA the platform, our leadership

taped-out Duplex fiber first the gigabits Cable coaxial read infrastructure PHY or node enable system-on-a-chip Full services remote which also or We device, per data over cable MSOs industry's FDX subscribers. XX second will cable

more front use frequency and for coaxial wireless expensive emerging solution X.X wireless AirPHY next-generation RF rollout. station both the wireless this access second for gigabits wireless XG Mobile home. enable as great MIMO infrastructure plus announcements Blackcomb modem haul, single-chip radio CMOS problem systems. network our using to access and provider connectivity haul In using deployment. XXXx per array front massive infrastructure, XG making sold wireless for our cheaper which five of point-to-point, XXXX XG Tier budget the SoC wireless World antenna product microwave front MXL fiber are addition, XG engagements providing At OEM the SoC, place transceiver challenge link and modem the readily cable our towards virtual XX we transload the end-to-end well customer becoming backhaul include macro fiber XG at which applications the self-insulation month, and solution demonstrations available targeting for second to new Congress per joint fixed MaxLinear's as secured second link XX-nanometer home relating several to wireless infrastructure wireless operators wireless deploying active technology, backhaul gigabits Ethernet have Modem broadband per XG In the we for gigabits we in and progress base have haul These access, solutions and band, allows X to network

can industry's really of As are position as CMOS expanding one analog and excited leading the our footprint, see, communication our platforms. solidify by we technology we you mixed-single IT

Moving quarter's of business notable on to the some fourth highlights.

adoption hybrid QX, data Our international connected consistent and seasonally weakness strong outdoor in wide home our particularly America growing connected sequentially, our G.hn we home revenue connected design by increased business. our pipeline have outside opportunities by as operators, X% connectivity to for industrial satellite offset in continued digital portfolio, emerging Within is up end in tuners. our a accompanied a a a Technology. strengths connectivity These home, Specific shipments high generally strong growth G.hn elsewhere home telco, North seasonal a validated connectivity after win revenues and critical automotive, stepped seasonal to solution, across approximately range bandwidth weak with backbone with golden along patterns. Wave-X TV of strong of wired cable G.hn strength markets.

basis. on down nearly quarterly were XX% XX% year-over-year a revenues infrastructure but grew sequentially by Our

by year As stated more the full XXXX, earlier, XX%. infrastructure than increased revenue our for

XXXX, Our owing wireless infrastructure deployments. seasonality to in telecom down QX operator were in and weakness revenues

to RF first encouraged X transceiver Tier see from are revenue QX meaningful backhaul OEM a the we XXXX. However, in

QX driver infrastructure, wireless increased activity cycle. investment Chinese a channel a owing and G.Now, excess in headwinds. overall. are base, metro high-speed retreated the strong and In to relative In c.Link business. GIA experienced we proven access metro highs optical in customer the long-haul market, of we record XXXX, delays market but of stages products leading slow our include in our expect despite in our QX TIA gigabaud early XG in gaining we the traction the mile XXXX in industry into wireline gigabaud the are strong Between to stagnant XX XXXX mile last our design and be broaden namely and renewed business, growth its from win design QX driver last continued the relative XXXX believe portfolio to competition. In strong are wireline inventory and XX optical We access to end wins to to ramps revenue

excited to to initiatives timing-related and about large new immune we the infrastructure our prospects growth our infrastructure, yet not of very buildouts. to are with we associated scale many While uncertainties critical are ramp are in

a Lastly, across of our strong industrial and and multimarket devices. power by broad revenues increased demand range sequentially, driven X% primarily interface

to continue communications that believe large expand exciting and range a opportunity to We Exar and across provides our platforms. multimarket and industrial the of content

of Spice, be the ideal silicon me that, market to to existing Mr. forward end well for turn as Officer, an vehicle our on our to to expected Financial increase a a as let continued guidance. over for review With Adam platforms. conduit our prove serve Chief diversification financial call content and the We as

Adam Spice

and our outlook QX then QX Thank discuss briefly first I'll you, results Kishore. review our for XXXX XXXX.

for and guidance was stock-based GAAP related end million device. quarter guidance stock-based to our the stock, of gross $X.X primarily were the OpEx amortization devices to our of gross for second restructuring and $XX to respectively, higher XX%. above range to shares Exar GAAP asset, Payouts The million productivity non-GAAP step-up $XX.X related sequentially, GAAP and margins midpoint the was $XXX,XXX stock-based efficiencies. the step-up, slightly Our This assets, $XXX,XXX assets of and was above related with the in which under higher inventory slight in the and and The to in up of the to $X.X $XXX,XXX underperformance XXXX Non-GAAP issued $X of stock-based sampling was million, be of SerDes depreciation XXX charges, due GAAP QX price estimated of supply acquisition-related $XX.X and was XX.X% costs. purchase in a and fourth X. margin included delta acquisition quarter between $XXX,XXX was to revenue out which bonus expenses compares related device. the charges -- acquisition-related, the of non-GAAP compensation accruals be overage the XXX and operating integration million, and of end at bonus $XXX,XXX the margin was expected gross in million, expenses, SerDes settled with which performance of overage prototyping depreciation QX, to restructuring $XXX.X purchased chain million, of gross million and higher $XXX,XXX reflecting purchased previously the primarily of plan and are to operating of fourth gigabit of activities gross of XXX costs fourth QX intangible $X.X third respectively. quarter XX% to related the our to margins XXX XXXX. accounting operating in acquisition relative Rounding up per acquired of related bonus GAAP were on compensation expected our non-GAAP completed guidance in of plan to stepped million, intangible assets, our $XXX,XXX the to the the approximately referenced of -- accruals. our amortization PAM-X guidance $X.X and guidance to overachievement than expenses compared prior gig to MaxLinear of due increased and are commentary the our and at GAAP XX. revenue, guidance acquired XX% non-GAAP XX% headcount margins approximately approximately million GAAP impacts primarily of XXXX, PAM-X our quarter XXXX. fixed

activity between acquisition staffing long-term initiatives. to recent evaluate balance staffing and near-term globally, a leverage strike We particularly our continue key to our driving growth levels operating following

balance cash and flow sheet statement. to Moving the

cash balance $XXX,XXX increased cash, to million. $XX.X and cash Our restricted equivalents approximately

brings balance loan. $XX prepayments additional including the of debt position in cash made When brings million. million down $XXX towards reflects earlier to the million QX ending prepayments term quarter loan our to far XXXX, million during and so prepayment it the was total that an $XX Our effect $XX in our

revenue quarter cash Our cash revenue XXXX. versus QX were in in $XX.X large decline catchup resulting that end activities activities from and quarter of increased sell-through in third internal from approximately accrued linear in referred a distributor of flow XXXX channel The processing and from the decreases of in was the generated rebate flow largely $XX.X customer's less payments the generated for, million the customer's to at to due sequential unpaid but delays. a that quarter operating attributable the operating million was fourth in generated

excess We cash aggressively, targeting balance $XX this continue level payment. operating any million cash an deleveraging to above on towards debt with focus approximately generation deployed

or days outstanding the quarter. quarter Our was for than XX less the sales fourth approximately eight days prior days

our That focus align target X.X to X.X the turns. with of quarter six guidance. our quarter inventory third compared approximately Our Exar ongoing better inventory turns efforts of to leads me the increased to turns fourth model in to MaxLinear's and in integration

of the We revenues. XX% we we $XXX million cable sequentially power and we're interface XX% home be range G.hn to and data, first overall to of China expect given to home, represent optical, revenue. for More to million. into Within cable of X% specifically, multimarket, XX% Built of by range this which of range, Terrestrial overall approximately XX%, power in as to revenue issues in down witnessing and backhaul XXXX persistent solutions. multimarket quarter connectivity the up contributing a resume increase interface to infrastructure, roughly and Contribution across industrial connected from more account be $XXX range Tuner revenues solutions. industrial in approximately infrastructure of general declines in management offset overall well video, expect X% declines wireless than revenue softness expect satellite a we Within decline applications. approximately and approximately connected sequentially, within and to sequential will as and be to softness TV across macro and offsetting growth be expect across

XX% quarter profit first margins revenue. approximately expect to profit gross margins of be gross revenue and non-GAAP be to approximately We XX% GAAP of

As vary product depending mix X%, could profit our plus minus a percentage factors. gross or other on and forecast reminder, margin

focus as increasing attractive to fund infrastructure goal leverage the development of operating a in to continue in the our targeted We look topline strategic and and initiatives half at forward business. beyond, programs, with delivering particular growth XXXX first the we on

approximately intangibles of with performance-based such, XXXX of $XX.X decrease expect million million, GAAP quarter-on-quarter coming $X.X to and QX decreases activity. As expenses to from lower operating largest approximately and we the accruals amortization restructuring

projected expect payroll $XX.X expenses seasonal million to million $X.X expenses. by QX We with partially non-GAAP step-ups, XXXX lower to sanctification offset increases operating advertising driven sequentially be track up by

to We X%. GAAP expect expense tax rate $XXX,XXX of and a approximately be non-GAAP tax

delivered quarter and million. million flow, announce deleveraging. to the operating to interest expenses we we're a QX of the revenue and in In growth year-on-year in expect quarter further in $XX.X other enabled pleased $XX We which million be XXXX produced results, closing, cash which $X.X

and Entropic we're by our headwinds back legacy market, to declines to corporate high-performance analog As at China encouraged adding platforms G.hn we our look the XXXX, ability technology in and development macro whether revenue optical related and while the strategic efforts.

markets, a at we growth structure are growth in across but range ramp early timings earlier the of As our our noted of challenging markets, be we're excited of stages in about prospects any best. predicting these initiatives can and

progress committed a As and team, cash our strong investment generation as flow continued practicing leverage we growth preserving expenditures in management restraint in operating transformative on near-term process. maintaining we're to to ongoing XXXX ensure to to

and initiatives has of acquisitions, earlier shareholders by to related forward As encouraged the that comp we from organic mixed-signal high-performance product connected demand our remain move XXXX, efficient with continued automotive, as diversity to multimarket open MaxLinear growing with depth company industrial, our infrastructure portfolio across wired I'd growing our for solutions and in analog as well the questions. a recent networks, that combined applications. home, wireless the demonstrated. demand we're confident for acquisition and Operator? the to We that, uniquely the across diverse like and benefit And consumer, call bandwidth and

Operator

Instructions] [Operator comes proceed Our Ross Please we question-and-answer question. Thank from your will from Deutsche Bank. Seymore first a you. conducting session. time, this be At question with

Ross Seymore

guess down the seasonality a Hey than to multimarket have haven't I industrial down first that before, with ask questions. guidance XX% is and letting really one on expected. business? the We would had is guys, deal bigger of but what's going in the for thanks step me I the the

there So, helpful. would be any color

Kishore Seendripu

the results anything for are impact but see us nature Hey, the through we Ross. rather any market it seasonal business, much are some the told new so multimarket, category a seasonality to there's for This is than -- as us, hard very and given It's the the business, goes end of this industrial so issues. of distributors. but demand the in

we talked is it as don't down it. So, worry about have we that

we for business any market see new but don't for also new us, than it's end fact issues it's us. other a that the However,

Ross Seymore

something follow-up, difficulty is different these the convey interconnect look for there? where prudent times Is it. just And in the us I you Or my there big about that in something more infrastructure happened is to has I aggregate, in of guys tone projects in you're trying you guess there the you -- being you're and high-speed side But segment nothing as XXXX? in after it that projecting all think your a with business couple of market specific what as appreciated to the changed XXXX? I what's guess mentioned underlying

Kishore Seendripu

and optical business. very are of is of cautious, the is the two mile right? on business infrastructure we been access last and then backhaul have We the elements And part infrastructure our One of have the business, business side wireline there our infrastructure wireless business. course, to other the

those and at of wireless have If to different; business number to wireline and however, leading a they're customers elements, designs you ramp new XXXX. product business three infrastructure look in the through XXXX access the

in optical the being market seeing number not we rooms the the telecom any given cautious to the what's past, side the moved various is, happened because optical there. are obviously, interconnect is at customers, are have they yet market quite on side, we're of still and on So, the stagnant relief that China very --

really ramping and be really market well, us the And this per provider year. the big silicon. that, leader in of center being goes the if the second end opportunity to first a everything at movement starts working the However, XXX-gigabit by is of for sampler an data

of year. that a However, beginning slim the the next moves possibility there's to

market about involved. so because dynamics many are trends and we're product those So, being there are the cautionary

Adam Spice

add would say comment on the also of I a in that of we're initiatives phase ourselves. these for fact too. that some and Ross that I'd for early Yes, we lot

little have whether pause one their to And we lumpiness have for one to we -- bit enough so then more the ramp customer starting customers kind don't ramp. begins a a made we're when of our diversity before other yet businesses, to and little

of these some deal be it I curve we there's while aggressive to also over the and can to also build take think more think takes when And markets, would markets and market are ramps some forecasts. little tend when be you some people to diversity our competitors pretty longer I it that going to I the attest the customer think conservative to give happens revenue that these a I in expect a also up then be tend don't we bit realistic. a So, predictability on are think with to function that to -- And markets that put the real of need necessarily develop. we we you predicting comes when to -- years want in

competitors I bit some be their be trying skis the new of these more again, timing little just our major of timings to think So, a a technology [ph] conservative. as we're little and over as may ramp far bit

Ross Seymore

And last so tapping how progress you the tape-out that you that ramp did out I the about know in market? PAM-X; how And competitive either that? lambda it, guess one feeling are just but see landscape guys I the late can't earlier follow-up to that this were Kishore are exactly talk control when on the year, you that know go? about customers single going landscape, your competitive in on just that is you I

Kishore Seendripu

excited. really are We

QSFP-DD and real their are a all I meets with that are product But and ecosystem. stringent, we'll optical requirement the performance good and all Tier -- the customers of our engaged think for be first power our OSFP X we partners in we standard one the module and sockets. the very have promise on made

We have product. sampled the

OSFP, this indicates able when optimistic of who XXX-gig ones XXX-gig, product we XXX-gig, that entered think we points this aggressive have right most only say that risk and the you looked have good with feeling to validate not should this were because be We being market. between amount good, on, we're bandwidth. we're very taken out feel show very, We excited set intermediate the routers. for leapfrog are the between through and for XXX-gig I we we'll data we we the very and now in some what performance servers, XXX-gigabit we some hyper-scale is enormous be an was center the are Actually right active racks, right frontrunner to market. -- very We're able performance. the the market that speeds really technology with now, and and when we're There not of I status

Ross Seymore

you. Thank Okay.

Operator

question comes next Company. Mobley question. The from with your Our Gary Benchmark from proceed Please

Gary Mobley

my questions. Hi guys. taking Thanks for

revenue was revenue of or related three long-term for can cell QX expectation you growth, of what the Speaking whether change then us XXX, remind of there's your not recognition any share you ASC cable product. And fiber revenue goes infrastructure us your to the to based on I contribution distribution into pillars node percentage with guide hoping the could channel? revenue that from channel? And for benefit or in

Kishore Seendripu

So, the one is about. contributions market, infrastructure; Gary, optical access, is Full the here fiber was third pillars mile for what One cable infrastructure of the our the other the node have its center wireless three one is data growth question, part the is various revenues we talk you last Duplex from chip. and the wireline modified of for related first

and but look revenues set million. speak next can about So, right? the $XXX We infrastructure contribution, our three while three five I over you immediate in in, you these to are at somewhere if the years wireless the $XXX between products, cycles the to to -- you product relative fully talk really million to when grow expect I cannot

somewhere range million $XXX data of $XXX the node is be million $XXX optical $XX Our to million cable for million our to and revenues also product center. about should really between fiber in

these are markets. those of size the relative So,

QX success being number contributor, will $XX said in fiber taped-out $XXX leader this data one, node And year number far, So, depending cable being we two, being and upon solid you to our being can think and a long-term million marketplace. the fiber wireless market node our million about that, data the market cable the share in close the to the leader Having in a product really being in the also capability demonstrate able fiber now, node by going lab, in for in a the making fiber the near future. very second and commenced to actually be, product we're successful the XX-gigabit being cable the node services testing. Duplex last per to in it's right and in MSOs the cable for reality Full

Adam Spice

that fiber Okay. on question. your answers take your Gary if question the node, XXX I'll

Gary Mobley

Sure.

Adam Spice

that sell-in motivation on for on to balance the of down through, it going a at we year model. in a to revenue any the when ultimately end So, the revenue -- going sell-through it on percentage benefit as XXX, the because channel think, we the that did more sheet through the -- the revenue end QX lean deferred okay, yes, from for it year, revenue XXX if some was of impact of been given revenue, for because certainly I into that And would balance was it's way XX% there has for a MaxLinear us about is -- mid-XX% what recall, the remained a into that goes you obviously, move the XXXX, would deferred XXX, possibility refill. recognize distributor, XX% whatever of have sheet of a you call been through certainly XXX ship to say distributor. mid model; is the about of think -- goes I'd -- treats channel the

there not it's relatively real channel needle-moving be probably opportunity yes, so don't it's short-lived we QX, minor I in think So, that big, some think refill relatively a and will impact. for-- a event probably It's but

Gary Mobley

Okay.

that is not all, on in clear be to any if benefit, Just at included guidance? the that

Adam Spice

I of kind a refill us really took channel we view not QX. of, the or needle neutral move impact very would in say whether for kind would on XXX,

view a there might So, say a I lot. not really would we that balance be but you, took

Gary Mobley

Got you.

Okay. Thank you, guys.

Operator

question. comes your Please question next Tore Stifel. proceed from with from Our Svanberg

Tore Svanberg

had to there's especially the little that you. follow-up new with conversations now say forth, thank for conservatism, just on and perfectly so a infrastructure you given wanted but I Yes, on and discussions policy, and customers, infrastructure the some you've just deployments? the I tax so recent understand more bit would wondering with

Kishore Seendripu

DSP not So, really communication with I call We really or asked very customers. not macroeconomic nerdy, with We conversations customers. CFOs typically you settle analog, in our really, products, do those our and we're have very of Tore, question. a conversations kinds what mixed-single

would we're I brands. that performance but of of more invest tax the of say opportunities policies, conversation, on they're So, at like true, and to and timing focus levels that's platform to really because going our

Adam Spice

that PAM-X acquisition us as there a on with the the because focus was but entrant we've we the opportunity. would thing come, through I definitely new activity this will One a Yes. of field Physpeed. particularly was metro and around initiative, we this where our company about historically MaxLinear is, can build know, were around We've of you say, and say it a a talked has before. to bit company this strategic little seen not lot PAM-X they new infrastructure more for market as XXX-gig focused it, I a a been long-haul dreams of

optic, ramped validating risk it I and say lean and, now and the take we we and really interest. be sample And what when And than and decide solution I activity we increased and product, on as see, related perspective market to and did gambles invest these marketplace, Kishore needed I I think product we us, focused and on this engagements our really to also confirming and think so strictly very end a customer impacts lean domestic massive up [Indiscernible] particularly to don't the certainly PAM-X a forward after the the course the that's as for investment, forth. of Kishore that took first-to-market up and macro taken would antenna of level wireless with another this the we it's in really said, really more say particularly and forward really MIMO -- step up being have more what so we're that array the earlier customer that's -- last [Indiscernible] we few to XG have that a would bit nine a the engagements for six significant mentioned quite months, we of activity to level over or the appears project-focused So, kind as on on seen --

feel growth So, those very comfortable go Please investment we us. of ahead. about signs for

Tore Svanberg

That's a Telluride. on fair. And follow-up

going move you we are sampling able to for all, what tangible the the at now, you're some what announce actually to year, be are that throughout talked milestones obviously, be track, milestones? you, wins So, product to the product? of of be about as this the will And design we but some should going OFC,

Kishore Seendripu

Very And milestones. through right what drivers, out light tangible show hope companion to a the PAM-X will data device, good and coming but booth device. let will come regarding our first we me our and be actually you Tore and device, guys bandwidth DSP and our rates. be have also integrated about That only milestone. the big subject. can will we expect the TIA Not releases press the and OFC We that question you entering will walk the

-- beyond or or an in now. entry you maker and really The see makers the be go are -- towards to of QSFP-DD next product They some of probably you'll fit not obviously full a on two of that and will demonstration module customer-related optical level finish of of year, step see will form hopefully one module So, ramp the very to or working that happen end announcements demo able the and that right menu function a vigorously OSFP time is functions. any main now.

optical provider. and may to to systems an module maker chance all network the way partnership -- However, there's across good announce a a the that end the we

now. So, right on we're that's what working

would major say I So, the on XXX-gig from those deployment the PAM-X are milestones product MaxLinear.

Tore Svanberg

Very single-digit good. last on to for segment And you. I of this know connected my targeted homes, sort historically be or is growth you've XX% question so high

could home haven't that DOCSIS for thinking I the vein? As add at just we if mentioned on same X.X you year? prospects connected XXXX, was in look you we your growth are about wondering so some color just this yet, And

Adam Spice

Tore. bit little clarify to just thing One

in grown and we've is satellite taken. a that fact again, of challenges presentations, part far more business. that satellite But the I we've that of And as as function some because like our subscriber range significant like is ramp And I as think the to recent it's we've forth. of we home all just the fairly domestic know, timing a and DOCSIS to think connected so definitely XX% of uncertainty, is having really losses things modified X% more satellite also that market investor X.X. the the of -- growth

what of, the nice about Combined reason what kind to should G.hn range partially or connected that space down the talked our coming range And competency spot should be X.X of us that's DOCSIS our, Kishore mentioned a this now, growth any home. to we we that XX% a acquisition the Because that point the good informed in there's I with change to we have would right think from a again, why be taking more X.X. I that earlier. So, don't of for do in that -- our at year range view think from XX%. XX% X% for the of because

that in operator behaviors off the the and about is think with connected really portfolio question also some on and deployment. past more that MoCA home course, again the macro-driven mark satellite, we've -- of we've I in the is which more also talked

So, I think some Kishore, context, and add? that you hopefully want provides to

Kishore Seendripu

didn't because, are absolutely here I earnest, be. they out ramps correct. should we as while point just along X.X starting DOCSIS mention they should be far to reason not is in want That's as Absolutely. And the it X.X, DOCSIS

operator, we're us, a However, X.X for shipments DOCSIS operator major a our on perspective a that's at DOCSIS is revenue very very from point, start neutral is cable meaningful ramp at right, X.X. effect and talking you're such this a The because incumbent ramp operator, particular the of not large MaxLinear's about a event. in

America, revenue operators, we to some help DOCSIS. related However, biggest revenues should in ASP North see X.X outside cable our ramps on of pickup grow when the some DOCSIS should with that and operator other the

Tore Svanberg

good. Sounds Thank you.

Operator

comes proceed with question. [Indiscernible]. of from question line the next Our Please your

David Haberle

you're Hey X.X the you question. DOCSIS or Can early here? thought in to very Haberle them last inventory XQ from off Chris for any that our at piggyback a with on Is guys, of build largest its Maybe of said the talk Thanks all? you on you transition. experienced behalf have that -- about Rolland. taking just XQ David customer, contributor

Kishore Seendripu

topic and touched of we at you not amount very we're but for think a did interesting the upon I the this I throughput would about -- backlog ship comment We seeing particular inventory of inventory, cannot normally. expect customers rate so buildup customer. reasonable by

amount forecasting channel uncertainty in some normally our However, of and that created also it that's level we the X.X the has tempering of see DOCSIS inventory for would about process.

to X.X we're midst the has and and as middle what X.X, I some of yes, the the in ramp -- call transition uncertainties So, is level X.X that affecting transition well. inventory our created of of non-spontaneous -- a guidance

But inventory that's buildup. So, there's I don't a excess I think think fair question. an

side North in other and You the may not that what big affects American two vendors companies affect mind must are OEM the for there on market, vice keep the so X.X versa. DOCSIS us

So, where with positioned we're good I we're today. think

David Haberle

And Got real have. the force-touch you. sense change quick it. Thank gears to you that business just to guys then edge

same with can line a better that when those but visibility mentioned the quarter those win are any or you design design revenue that I have last OEMs? think you was driving different might us ramps sight guys if Do of ramp. And wins one and give that you mainly that wins other you was design then of occur? there, sense had will also, it OEM

Kishore Seendripu

Yes, David, asked I'm the Touch. glad this about you Force question

the sold to wins bunch been Google, created that in company HTC consumer Force what at our market you very think some multimarket recently have the problem transition and company heard that way, that's that's our we been heart it's phones design uncertainty positioned know the the that And with company. that's our future with and and a become Touch when to been And and business ourselves. off of such of are. operator where so has reason I have known have plans we're a right, HTC, well HTC's always industrial and focused a infrastructure-focused have a to smartphone strongly business long ago

Touch -- the it feature minute. -- phones such or have on couple and those that removed in feature but had hand, On stay you is I'm progress a -- nice other tell sockets because other we it's the and come at of won the generally nature or be to OEMs, the could of still not it prospects we've the and design have Force last the confident and that's can a that feature to in

phone So, not OEMs -- level they have of the but how the to seeing obvious we larger world, are seen necessarily and importantly, we some consolidations a a the in of on going about are a us pretty -- emphasizing level consumer we in feeling certain in Force as And Touch so growth forward moving vector consolidation makers. or call year there function. on the in skittishness and is that of more cautious what market. phone the this for And is handset level I

multimarket presence -- is the industrial going in be Force and hope really Our Touch investing its applications. in to you're expand to if

David Haberle

you. Thank Got All it. right.

Operator

with Bolton Our from Please Needham comes line next question of question. from proceed your Company. the Quinn &

Quinn Bolton

you're interface. macro-driven and is business, you side this Ross' business? question seasonal of catalog wanted follow-up broader on Did and sort just pattern management seeing that broad Or it of just analog a I the is anticipate slowdown a was sort the regarding you the that year? that weakness of Guys, more this in I power in to say think every

Kishore Seendripu

I Quinn, cannot level. answer a really know the macro with we that what's question at happening statement honestly that So,

our a typically there down is is seasonality. step However, understanding

However, position we business we are less than because right confirm been now. for ourselves this that one for year this in of yet to have

I impact. to So, macro a I wouldn't this stretch -- would not

distributors, demand able direct hard it it's see us to goes to really your we However, that to and customer question. end for of be this so forecast answer through business, majority

Adam Spice

Yes, thanks.

think I that. little I'll on more a color for try

So, now you different right? -- the customers, to mean, diversified of a of a SKUs, questions you HTC business, will. there's kind is we talked design if raised So, look aged, really we earlier the part you about as I Force the pick a know, would it's Touch softness about but getting so challenge different lot on initial QX out little HTC, that I applications, is as want bit, into lot lot right is very that of, of if a of say

across just probably of do drag multimarket to say And So, on more softness then contributor as a broadly with and bit speaking a on well difficult industrial we're -- in it's bottoms-up to -- you so I'd of that say more rely the the industrial -- quite range to legacy the it side, forecast distributors a applications seeing leading what's guide little the that's just QX? would just of and method the that just than because forecast, business your have forecasting by I of bit customer. kind for

or just tend kind more details to it's Touch when we like want more you forecast point if have to and Force say impact granularity would difficulty I in So, to we as we approach we can team, as of guidance. a to a then again, couple to much HTC and broad-based QX used more as the conservative management to

Quinn Bolton

it. Got

-- it levels does any held stop have inventory guys into at with the visibility end inventory does or You kind of distributors? customer visibility your

Kishore Seendripu

business, If OEM's platform of it's business. point cable information it MaxLinear position, about make a part inventory business, a our in like satellite, already business get in necessarily possible regularly our is operator's for to the position. our as as not the we operator example, on and direct direct much fairly Depends inventory this do

buying thousands the customers market inventory However, really and have in the analog really of inventory don't are that components. those we through track visibility to Exar much distributors, portfolio end it's catalog-ish mostly we of several because distributor the go products

distributor so of that track the off business, And non-platform distributor knowledge in business, three-fourth have the and -- only you we the of business or from inventory. OEM, three-fourths Exar a call what not being So, normal is that I primarily we the would I more business of three a levels. away OEM our direct inventory inventories. in -- say do the sense have that of I at then our two-thirds way think where look platform-oriented if at track businesses we we the

levels, low I not average, definitely excessively an on because It's it's think fine. -- it's but So, not either. high inventory

So, I normal. think about it's

Quinn Bolton

push follow-up on for out by Thank as there's market like Tomahawk -- well seems PAM-X, I XX it that. until market And until delays as in Tomahawk could sometime a solution get now you into into reported Okay. much single well pretty that systems-based to for possibly X wanted even lambda may on six, the may be X or and months the that XXXX. not widely

opportunity, shipments you by guess six the guys about it likely rollout PAM-X, look the end big as XX-month like X at the what I lambda pretty a for Tomahawk And in challenged XXXX, of business? of and delay kind drivers, remain seems or that's seems to like that growth talked just that's possible I TIA's because market mean so you early due is to so. the single XXXX,

Kishore Seendripu

very year, Tomahawk. very called Quinn, of of first time But it, question. beginning the of I'm last good this firstly, you the hearing to year at sampling end looked delays very, of about I X, the for Tomahawk as the positive.

do confirmation PAM-X that have PAM-X interface about phase that's you into raise to Firstly, the chip getting two. XXX-gig

So, that's news. good

if to of Secondly, it's at delayed for one it's matter. XX always assumed going getting take ready least terms in we months readiness, that's have and production, production

of itself, issues? not any it aware The does other is chip has all Tomahawk that not switch it From have chip, accounts, I'm I the do matter think issues. issues.

as be. QSFP, folks. the we if issues really optics well to modules, that pole prepared production the and chip is can optical for in get the longest do with lead-time manufacturers production getting form we too to not ready in factors is -- natural to biggest sense Anyhow, there's So, production and ready there it's lead-time silicon go the for a module OSFP the best to will and production, and the be ready a getting optical are

need that the -- to so do need the the production end what to to of we year. feel lambda ramps I on may well do our we delays delay we to at be the second per single chips, XXX-gigabit not gate the that however, into are So, ready go PAM-X

Quinn Bolton

guys is say you that in out just XXXX, of calendar a preproduction early establishing ramp that that the of guys late production-ready or -- is production clarifications those and those XX on are volume going XXXX, after kind when late the the so of talking expect XXXX. module first what and would that volume kind be for XXXX a in shipments early the ramp are you is shipments units Maybe to XXXX, of -- months shipments -- ecosystem kind you kind qualification rep or calendar

Kishore Seendripu

Okay.

in let our some talk products of being -- ramp production ship me volume So, rally, that production is I level volume production silicon starting silicon call quantities. to production, quantity, of initial what

we'll hopefully, done our get Regarding that that is expectation before end qualification, product the of XXXX.

the customer's -- a and qualification optics be and together our different qualified. upon dependent the silicon-all That's and could Now, production-ready. product being qualified also products cycle assemble the our being qualification than own

be that on as to to is production-qualified we concerned. silicon track go as We and ready far will ensuring are

Quinn Bolton

you. it. Got Thank

Adam Spice

Adam. this Quinn, is Hey,

you in very color. for question. so we have more very, commentary a when Telluride, that that to back of our XXXX goes give forecasted lot Just We're Ross for currently asked the conservative. We model to revenue his little provided don't a

competitors other people been in might second would ourselves that. never We've always has our but needle-moving half saying We've makes right. second taken late a start -- other half and really be bit that, me been in on that, for second So, ramps us XXXX, a very we've earlier, -- I conservative why needle timing Tomahawk half we're of doesn't when just of because of So, other pushout it's of really having hear perspective stance. XXXX, the a people again XXXX, talk that's about nervous the about said because it production shipments we've wouldn't been right? not move some imply the I XXXX delays saying the that more what Telluride for and in on talk little change conservative we

Quinn Bolton

Okay. Thanks Adam.

Operator

your [Operator Svanberg Instructions] Our of with Tore next question. line question the from Please comes Stifel. proceed from

Tore Svanberg

had just also some follow-ups some once. I Yes. housekeeping and

bit investors times you're strong of three can what's be talking right And So, such it's is G.hn China got seems probably doing first that well exposure, you interesting, about adoption? seeing just your you so for little that, but explain and momentum business to all, why optical there? I've a of because G.hn really the size driving

Kishore Seendripu

a world First because part addresses of -- and in and geographies [Indiscernible]. is foremost, the a and to large over G.hn needless works powerline, coaxial it

about coaxial nice purely compared thing cable which and MoCA is that's North America. primarily So, it as

do the operators G.fast we being capability G.hn because to there G.Now, mile the it So, by in nor access delivered and G.hn. mile and multi-dwelling Thailand provide does last at promise G.Now correctly call called the the last -- we mile used or a access unit. and China the on into for last looking we Asia Asian to And way the South the other that have the -- G.hn referred it's is is in what into has are not multi-dwelling as countries, whether or side, the the from broadband China G.Now related version units. to and which And in telecom Korea as

So, way all that's need into countries, that's something it. once of the robust much a nice more the thing a doing because typically and about it cost-effective very buildings, these way comes building, really in the G.Now but fiber near you provides

it Asian other Secondly, used there are countries Europe various Wi-Fi and for the G.hn for in being wired as is coverage countries backbone on Wi-Fi in a extenders. the -- side,

inside are there's G.hn and a Telecom who example. terrible have really of really big and showing coverage China, both the which for home, at home, players So, in those distributing Huawei it on G.hn designs bodies inside from presence other networking standards well. And connectivity in a is extending really also the the China, players are strong for home that going and standard may on finally, Wi-Fi China noticed look backing a video as you for wired

things driving range the forget is metering that for of right? using are you not those deploying have mention because just So, applications to the -- can the also readily companies for the throughout world. I it's reception feature are that available G.hn that really these behind the real G.hn, powerline ubiquity utility G.hn So, are think those address it of applications, medium

growth to and year continue fact, it's and the really as strongly So, I And very year next following in expect think well. it's into we quite going exciting.

Tore Svanberg

That's just Adam. housekeeping some And for really ones Kishore. helpful,

optical, speed China, low, think mean that at quarter last Adam, high So, revenue X%, of I X% was this point? of I it sort sub is pretty still

Adam Spice

Yes. Well, QX about are or talking guide? you QX

Tore Svanberg

that sort it reported X% recently to was revenue? like quarter, most your of QX, doing still X% in of

Adam Spice

-- around to the of in X% it fourth quarter. was X% It actually yes, was in the revenue

Tore Svanberg

also sort And or are SoC channels X%? helpful. type just now then analog approaching zero that's and businesses, video of the legacy switch, Okay, both they

Adam Spice

million the in a video QX. said than was Yes, SoC bottom -- was be And zero. that around was yes, little almost was analog then we going to the channel-stacking bouncing less the and around $X

Tore Svanberg

Thank very much. very That's you helpful.

Operator

and reached for now I like session. have of back end closing we Ladies gentlemen, the to management And would remarks. over turn call question-and-answer the the to

Kishore Seendripu

Thank you, operator.

Xth York. today Conference Roth XXth March reporting us many on look in We in see Media Susquehanna's will to Telecom we at reminder, we With that said, we March Newport for XXth Stanley Conference New a all to XXth in and Xst Francisco hope for progress the of quarter. & joining Technology there. thank Technology, As the on our Conference forward California, participating San be in the next and you Morgan March the Annual Annual on Beach, and Capital on you

Operator

conference. today's concludes This

may You disconnect your lines this for your you participation. at Thank time.

MaxLinear (MXL) 13 Feb 182017 Q4 Earnings call transcript