MXL - Earnings call transcript Q2 2020

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Operator

Hello and welcome to the MaxLinear’s Second Quarter 2020 Earnings Conference Call. At this time, all participants are in listen-only mode. [Operator Instruction] A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded.

Now my pleasure to turn the call over to Brian Nugent. ahead. go Please

Brian Nugent

hosted Good Corporate us operator. second And you comments, Financial take is thank of and will Seendripu, Thank Litchfield, we Officer. Steve today's afternoon After conference joining Chief being call Today's on financial and MaxLinear’s Dr. call for Kishore XXXX CEO; Chief you, Officer, results. everyone. by Strategy to questions. quarter prepared discuss our

relating our securities to Forward-Looking include within meaning other laws, Statements non-GAAP quarter including and tax applicable revenue, non-GAAP growth statements markets, operating guidance Our quarter comments today and expense, and expense. and effective XXXX our of the margin, third principle for revenue the rates GAAP tax GAAP insurance expenses, gross third expectations target and and

we forward-looking statements definitive retention we concerning to Intel's agreement involve in as opportunities arising including markets. business, of will These and are and of these the trade More uncertainties geographic that limited Risk may forward-looking Intel's in may forward-looking growth markets Factors supply in our conductivity announced was product December any more the including concerning XXXX today. as from that potential statements Gateway Home price constraints, including forward-looking dependence key average proposed no and risks for statements. without XXXX, to outlined our acquisition has statements revise Any not XX-Q, to impact wireless currently risks for well business, and incorrect. selling prove our and the today broadband our and ended substantial of which limitation, opportunities Form opportunities addition, SEC a is opportunities as and improved recent Home filed on our opportunities, year acquisition of second assumptions make uncertainties, risks made XX, our MasLinear customers, various and revenues on from for our trends, and of expect section our these such markets, growth pandemic, and competition, information statements infrastructure global filings, obligation for XX-K the integration risks risks, our or and other Gateway as COVID-XX develop arising Form related employee and our as generally and those relating number export quarter opportunities markets update In of trends restrictions,

in of second The maxlinear.com. available the XXXX website section our release quarter of relations at earnings is investor

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

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

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

Kishore Seendripu

afternoon you, Brian, Thank everyone. good and

of overall $X.X of QX and at business cash financial at our million, results XX% ahead million. QX QX infrastructure stood flows Home operating XX.X% strong our revenue up industrial In We of to revenues. initial are was of XX% guidance. with XXXX $XX.X X% margins XX%, sequentially report pleased to mark-to-market gross Connected at and

heading business strong by improved bookings half second QX. for greatly into tailwinds Our our data in outlook up backed with has cable

home work-from-home bandwidth benefiting greater demand in a for long-term transformative trend. We environments the is that from are at an we emerging believe

for wireless, low. Despite some COVID, performance high team related center pockets and high to challenges Still diverse wireless analog calling in milestones also successfully our there We in executing due in were and QX critical backhaul QX a products in initiatives customer market. strategic analog performance the geographically back of on COVID-XX to markets. saw demand is engineering our data XG optical weakness

rapidly our billion. our and is industry to along are well optical COVID-XX Intel $X DOCSIS, the in gateway Ethernet of we acquisition the bottlenecks Intel’s about solutions. the QX. XG with cloud upgrades, Connected and as XE access which core expanding of business, due bandwidth mandates more our data leading Gateway Home center state-of-the-art ongoing ideally business will close upcoming expected infrastructure our Combined are initiatives the Wi-Fi with to XX-G well an companion TAM address positioned driving The opportunities doubled strongly expansion Home Home all as excited are as wireless to broadband platform into It work-from-home SoC and throughout which network about consists and We to fiber acquisitions. acquisition than benefit bandwidth home. technologies, in Connected This as PON division

support progress data we at But second in the half with customer's customer. PAMX Tier-X in mentioned of expect the we our slight optical year. to encourage first our continue and revenues of deployment remain other industry's as datacenter hyper-scale XXX the earlier, by Gigabit some to see to that Turning this center, highlights delay

Lambda leading solutions with data into PAMX for our We We XXX are our traction. Gigabit seeing believe for that edge adoption, the Gigabit and PAMX we several over well strong also XXX positioned early dominate cloud this next Tier-X continued revenues with Gigabit, Single year. and progress offering are deployments with years in to early customers XXX

industry's to first second XX the that is XxX have we generation excited in announce XG CMOS. sampling product, RF infrastructure, wireless I'm transceiver RF transceiver MIMO XG Turning which started wireless to nanometer our

at highest superior bandwidth level the the competition. and and system transceivers performance XXX consumption double RF power integration megahertz versus XG Our have

XXXX in initial realizing XG potentially bolstering are related first lead in and transport, to due revenues slowdown our the year delays. multiyear COVID-XX We half to confidence to beyond. looking in a and aggressively growth frontload the of customers get wireless installation witness In we backload strong the market

we However, starting do expect the pickup in QX.

push continue deployments see even and We e-ban aggregation to section a towards features. channel

and XX very per with We good a are SoC. dual gigabits in RF trends to these millimeter favorable on position capitalize second modem wave our

the call OEMs in business Home shareholders will multiple markets, Gateway Intel's analog second MaxLinear’s expect these datacenter and acquisitions with benefit around our XG optical upcoming uniquely with existing In and wireless, performance broadband closing, over products results the target and our platform expanding Mr. addressable forward that, We turn by in our the half. applications. Officer infrastructure organic review market high initiatives new guidance. connectivity Financial features along of of Chief and me Litchfield, a Corporate QX Steve let to network Strategy and Chief for challenging With Officer the

Steve Litchfield

was first in business, Thank XXXX XX% expected, you, our partly revenue slightly. Kishore. discuss materially XXXX. the offset review will further improvement our [mocha] and than with legacy outlook less declines down we Connected On sequentially, QX data our then down QX in Home of for results, saw demand, million business cable I (Ph) by our XX.X

grew high weakness by speed in strong deployments. continued business HPA interconnect by in driven infrastructure macro XX%, uptick a our domains, backhaul wireless products, recovery an offset across Our and

XX.X% as inventory XX% and margin the was gross an to were X.X after acquisitions. the business XX.X% GAAP dynamic owing distributor quarter the second intangible approximately gross and million respectively. guidance and multimarket of and weak of up the of for industrial XX%. and from compares returned GAP to and delta QX Our or reflects primarily This sequentially first of non-GAAP margins gross purchase GAAP to non-GAAP assets demand The COVID unusually margin related gross reductions. margins in guidance the XX.X% XX.X% non-GAAP amortization previous XX.X% between quarter revenue

XX.X expenses Amortization approximately quarter compensation which combined. stock due annual of intangible to was by operating million, million million. offset million, expenses, was X.X travel GAAP of accruals stock of million payroll million management. expenses to purchase due low expenses result XX.X operating stock XX.X expense. based and based of were slightly above as end Second guidance prototyping XX.X to and GAAP XX.X of This expense discipline bonus sequentially million million, of based guidance X.X partly million our up million lower higher GAAP acquisition to operating X.X expenses. impacting included were primarily and Non-GAAP increases, assets the primarily compensation XX.X of of a XX.X non-GAAP was merit costs which the continued

transitional successfully have down the We spend with year-over-year. XX-months period managing during OpEx been the XX% non-GAAP trailing

flow balance Moving statement. cash sheet to the and

XXXX. of million X.X second cash of million generated generated in operating in was flow first Our the the quarter quarter from versus X.X activities XXXX

$XXX was our balance pay uses times. remained strategic in load around down intentions net debt X.X acquisition. Our We on leverage our remains and cash of at ratio and our consistent for priorities million

sales days prior for outstanding to XX in was the second approximately the days quarter. quarter days compared XX Our

inventory me X.X. our were Our turns at That guidance. flat to leads

at guidance of approximately the to $XX the the the excludes sequentially be of range. of guidance expect Intel's million, business. Gateway third XX.X% midpoint acquisition quarter Home Our currently in We or revenue to $XX XXXX million

We expect Home data. growth primarily revenues driven roughly Connected with to XX% quarter-over-quarter cable be by

new year. tailwinds ramps expecting program are the in of the as the well as dynamic, customer We half work-from-home from second

domain. We fulfill are increased working closely to with our suppliers the

driven primarily recovery infrastructure up be after the expect We to roughly and by haul XX% to week demand XX%, two revenue quarter. back

industrial X%. We to expect up to flat our multi-market be

to margin revenue quarter revenue of third profit margins and to to be XX.X% be non-GAAP slightly. gross to XX.X% profit approximately XX.X% gross expect of XX.X% We up GAAP approximately

continue rate reminder, to of with other growth goal X% top-line focus the forecast percentage stated XXXX As the spend run depending gross fund Even beyond are particular operating our infrastructure strong initiatives and we strategic factors. the a reducing business. vary and product at targeting levels, in on our or and on leverage delivering we plus focused profit margin increasing in minus our development could on mix programs

We and operating mainly a million GAAP to expects $XX QX to of integration acquisition cost. driven million $X to million approximately increase $XX expenses range quarter-on-quarter XXXX by

operating range expect up $XX.X of sequentially million We QX to to be expenses approximately million to $X.X million. non-GAAP $XX.X XXXX

expect tax expense be zero to non-GAAP approximately GAAP tax We and of rate our X%.

in expanding progress the and quarter design with to and to other our customer market expenses of and $X.X platform. million. and pleased the transceivers our we $X.X XG adoption engineering further expanding allows our infrastructure engagements are modems interest expect and transceiver closing, in massive And e-band continued micro MIMO data million market. center milestones be In initiatives to report and in We RF

while a considerable generation in recovery environment work-from-home on recovery flow to focused as our COVID-XX from end of high-performance We driving an expected improved broadband offerings investments. continue the The a and our impacts. encouraged nice maintaining dynamics business execute are remain as acceleration market seen on but to see analog strong infrastructure We XXXX, is and profitability organic recovery. this cash have

Intel existing in I up these to and initiatives acquisition With in the Operator. that positioned along uniquely With our compelling are call questions. financially with open acquisition, we believe we to would strategically business deliver the beyond. for strong leverage like the and XXXX that, in

Operator

Thank first & from is today you. from question Instructions] coming Bolton Needham Company. [Operator Our Quinn

now line live. is Your

Quinn Bolton

cable of broad Guys by operator and us is Thank outlook. or wanted ramp business one a your XX% that quarter of is driven do pretty congratulations Can nice I got you the it that Connected it you. up primarily you by Home share that the feel And generation follow-up. one start sort is on products, driven MSO then give sequentially. have MSO, to a results lead normalizing with is with strong thirds the cable and I the based? that sense if

Kishore Seendripu

you, Thank Quinn.

MSO. side, particular demand it is operator not broad Our one is on based the

going We And on some with MSOs that are North all share MSO. expansion backlog we now to are gaining well seeing the in the positioned other in we right start America. the also TAM happening especially based

we So, a beyond. general, seeing healthy and also for very, booking are in QX very

very good So progress recovery the now. we that right feel is in

Quinn Bolton

specifically, a still the are customer. growth of quarter. up there sounded you then was Can been in delay it testing customer? phase? XXX us had second the interoperability interconnect guys Are have a I Thank mention you an high at at like update through speed second that the give that quarter, you business mentioned slight And the you. there, question, interrupt of in but in as the you in didn't was wondering nearly might third you driver testing gig the sort

Kishore Seendripu

It on we are So you I different. think that as the speaking revenues we more data optical but they to meaningfully based are forward about, sample beyond. volatile color, bit whatever things look are it is a is quantities not how progressing, give center, or

high TIEs the which have revenues have of we the drivers in pre-venues. are buckets We to and connect some in speed those sort

these scale we XXX Gigabit. data talked So center major about always have to really speaking, transition hyper

When center. we it We watching reliability about of these reach - is can data of hyper scale you take in module are it off. process of still their really our us, interoperating they speak are and phase. that is How the talk and our with customers need the not about hands, module meaningfully on yield a and progressing vendors forth certain and before so so supply to qualification

So, at much just do they are as because in we manufacturing have can, our capability. a be as to point ready this ship level, we customers supporting to

Quinn Bolton

again Understood. you guys. and congrats Thank

Kishore Seendripu

Thank you.

Operator

is Next question today coming from Svanberg Tore from Stifel.

live. now is line Your

Tore Svanberg

turning job and you good thank on round here. Yes,

First Connected question on Home.

mix of million there legacy at that XX it Could - bit XX in will million, talk that little or becoming So de-minimis than more point? business this a some QX. is you in still be is far

Steve Litchfield

it Steve. is Tore Hey

So, that. No the smaller. it seen, highlighted doubt the pickup was we becoming In piece data. legacy is have that about really we cable that

of QX I less becoming talked the million was was one would that and by mean, less. our year. weakness we about but of of much with that and in remarks less legacy saw the demand, $XX a this satellites, Some the legacy some I than consistent it of areas. driven we the mean, I percentage is becoming, mean, smaller earlier be business. that

Tore Svanberg

means eight-by-eight talked could from hoping generation a you perspective, also about And and I going because an bit that be meaningful that second is so revenue? you to a maybe Telluride. maybe when market a good. what part you this to was Very a mentioned generate little two just obviously expect talk about product

Kishore Seendripu

misspoke, decided reduce is eight-by-eight a you And shifted integration the has think Yes, from industry more a warranted transceiver. first that cost platform. I perspective to are have or deployments wireless. radio as referring eight-by-eight the Tore, has know the to you bit of XG we So MIMO you XG The focus cost deployments. delayed the to the XG industry's launched

to So, become eight-by-eight MIMO is configurations say large the main which mainstay. AS sufficed that application volume, will the a large most

very, an eight-by-eight who execute So, that for a players in same and expeditious ahead to would competition a are us it be three four-by-four. to chip, sampling a CMOS cost we among we are because key was lead generation be in time node technology particular our of the this given was very product at on solution,

Regarding of four-by-four when the revenues, the end we year of in half next the ramps initial fully expect we the and generate after massive by to is eight-by-eight to the the the year. sometime really counting towards revenues end of the year, first of next generate platform on middle really and are

Okay.

Tore Svanberg

point? at timing just the on to QX, you Alright, you just last on give one. update mentioned closing one us of in any this the have Could update an pass that obviously, timing Intel other the and hurdles you acquisition any but

Kishore Seendripu

Tore. Yes,

a lot to not whole So, update here.

this approvals. mentioned press QX. that more the no release as close There we regulatory we We is will in confident are in

that working comfortable so work through So, on just and final the issues. council front

And that that we so we announcing hope soon. be will

Tore Svanberg

very you Thank Great. much.

Operator

Thank you.

coming is Bank. from question next Ross from Seymour Our Deutsche

Your live. line now is

Unidentified Analyst

Hi, Seymour. [Jee] multimarket industrial ask XX% Thank letting for (Ph) this is Ross quite question. for well sequentially. did The you growing me and

it was or characterize see (Ph) of you the half third the So, beyond guess for how you how progressing, would some the [IMF SunNet] the guess I year? demand of second quarter, do I point IMF

Kishore Seendripu

Yes. Hey Jee.

did So nice we a recovery. yes, see

of seen have in this QX bit of a We weakness quite year.

part today. quarter throughout picking demand bookings continues and second seen and already the the in had we very early remained of up so strong quarter And

been into through amount to we optimistic we has of look but We I normalcy. good. out I'm that I'm by what continued, sell recovery that kind XXXX. real of has we So demand and to snap this I definitely into the saw, beginning mean, start have see seen the QX the as at back encouraged back was some mean, quarter,

so market this we some soon. And will said, hopefully I in see stabilization like

Unidentified Analyst

was like housekeeping, as well a quite as stock bit. guess just a I looks up based And CapEx sequentially comp

should talk third trend So about in the quarter? can those how you

Kishore Seendripu

is mean, consistent I what Yes, CapEx we talked have about. with

wouldn't performance about know that to the going slightly forward. the no really was in we A shouldn't see that I increase have Stock of million being based definitely down up $XX front. shares year on lot the in quarter. driven QX a that You about talked saw was it level developments and but comp definitely and expect major some of an of expect increase by future. that in It QX an in was

Unidentified Analyst

Okay. Thank you.

Operator

you. Thank

from Rolland Next question Christopher of Susquehanna. coming today

now Your line is live.

David Haberle

you behalf the of we for but guess Haberle I as have de-minimis a not do are from headwinds about legacy is nice taking in this a the out How offset Rolland. Home growth strong here from cautionary Hi Christopher of market think that forward, is on toward Connected believe XQ is question. do I legacy it this from this some business work-from-home David headwind And in dissipating there. Thank are work-from-home. bottomed and tailwind cable of point, kind you this understand Home at you on is our of in - heavier? thinking and sill Connected going growth kind trends you can

Kishore Seendripu

Yes, encouraging. David. so it Hey is

single stabilize were of into year, rates expecting I digit XXXX. get to growth business we really this this to and think coming in kind low back

out to right? that Because work-from-home, solutions I I Or is, there lot So And like think language how a of in looking seems and continue, see? can has economy much the companies does how general seem we me with it mean, increased think long-term long that. and growth work-from-home. like - the I doesn't definitely for question that many accelerated it the

the low were what is back But ultimately, this think rates mid-single digit continue at a growth mean time. getting I I have this mean, data this mean legacy I kind some I our as concerns. connectivity. well I as think all. really business. no at see to is to as I would some of problems could just cable guess, expectations be. But by that to that. So the business I alleviate dominated don't headwind with for

I as see so problematic whatsoever. don't And that

David Haberle

Understood. I queue MoCA ramp. and then in to in Connected ask the sentiments a a my about down year-over-year, Home the wanted for that. attributed partially to to MoCA Thank follow-up, the comment for you pause And going about

was any on though I think where the there. kind stand color customer there called customers see other incremental it in breath is your MoCA, ramp of want you you if the out to just product? quarter-over-quarter. up like there of that I And with are large

Kishore Seendripu

guys and XXXX, Yes, MoCA with MoCA, of forward. we are saw deployments actually We customer we are No, sure, a large within But saw of excited about in about that the first pause struggling that strong into environment. sure. had still talked with little bit very the coming kind growth work-from-home ramp those that a going half definitely year. the

some, are in the about is back are And resolved issues, think up getting so think excited half that has that pick created the why second that and and those but I year. short-term I seeing we of

David Haberle

Thank you.

Operator

Thank you.

next Markets. is question Northland today with Our Capital Savageaux Tim from coming

Tim Savageaux

in afternoon on results an me pardon good question, outlook. mentioned with pick Hey One up the and you and congrats performance analog. high infrastructure

business? what GI of little more that in is a driving are if think the talk question. about that driver reference, applications is That one the could pick but with back sort stuff you hauls I granularly that you HPA wonder I up

one is in how customers so, you If the did other any big? have quarter? The XX%

Steve Litchfield

Yes.

quite HPA A right. regards mean, driven infrastructure by so, with I yes, the was bit. lot to that the was of drivers, recovery, up a So

improvement the half see weakness to So second in the that think nice and we we half, picked some in quarter had there I the first first of expect of kind year. up seen saw the

infrastructure, there as And about heads sell mean there, largest. for mean, probably the but business is more there as have areas of I into so those mean, of one. is business, two I is another example remote other we drivers giving the radio like I are server - mean different far a granularity, I the that talked we number there some is

So the Commscope. is I have that we one mean, customer

they to And continue so and the have been largest be.

Tim Savageaux

much. very Thanks Okay.

Operator

Thank you.

Bill Next question today Peterson is from coming JP from Morgan.

Unidentified Analyst

Hi, I behalf on on infrastructure side. question the this Bill Kim] Peterson. is have of (Ph) [Alex

to First, portfolio the year-over-year X% you intact growth like for outlook for growth around X% single-digit are XXXX? still

Kishore Seendripu

are little up I'm a sorry, to bit. have that, going broke Alex, you ask to you

Unidentified Analyst

Hi.

the growth on you So still side. mid-single-digit year-over-year around X% for to just question on infrastructure track growth a XXXX? I had X% Are for

Kishore Seendripu

this Yes, little be throughout that. said, giving expect see our year. in of backhaul But so the the and of was have into a the bit piece the we I we and improvements rest just coming And was was confident to QX, one quarter. than are quarters the we the a have that about kind we see one expectation that of to bit, guidance. I mean, I visibility expected worth different to that think nice we do QX than expecting kind in mean, talked of I there, weaker think continue little wireless backlog QX. in being upticks

Unidentified Analyst

Thank with it. side in Amazon the on, is do revenue half And then there? the opportunity what you. wired ramp the think you Got like second the on

Kishore Seendripu

what more start I material of to and contribution small haven't QX relatively then QX and that first see exactly we broken half So, it revenue a numbers XXXX. in still think number in would out be. the is

Unidentified Analyst

Tier-X half? cloud slight your Can then customer about cloud know, thoughts you got half? being for second mentioned overall seen the what spending talk you are for spending on. delay that of being Okay, in with second sustainable strong you it. your And just a market I the on the have terms

Kishore Seendripu

slight But our to in a as reasons Alex, of there probably and this are I market incremental number comment not we is is whole. we mean, I best But a all revenue talked kind just the think think position MaxLinear. delay of I on Yes. to about that. environment

have kind any incremental our don't of I are downsides, we all positioned revenue we really business. and because is know to that So, to best don't upside comment, it because

Unidentified Analyst

Thank much. you so it. got Okay,

Operator

Thank you.

[indiscernible] coming today Our Markets. next is Capital question from

live. now is line Your

Unidentified Analyst

opportunities solid really starting like growth two Hi, the you and could, guys out taking back congratulations growth alter appreciate do longer sounds rate I those from make it execution. you but the like question. you you good you can follow-up. normalized And way. you strong stronger normalized on occur, along rate. have if just going growth When level think Home, then a growth my And And go those share that rate Connected guys mention rate sounds guys up quarter take can is the gain single revenue if I don't meaning a your that to normalized you afternoon, digit share have term into rate, that run of with did rates position growth low to mid occurs,?

Kishore Seendripu

Thanks no, problem. thanks. first have to Board you for and all, here. Yes, Well, glad joining on no of

right. mean, answer So, sort of have. on working the comment we mean, yes, share absolutely think hard is a I I I potential little bit the that are to gain we

just focused as the around We opportunity - as not it an but big is they really do content being a well to (Ph) the something side, I working able that MaxLinear add going forward is to the mean, diligently [candidate] acquisition, that. gains. from share is are are

both have do to so. got So, and some the those a we think are for good we potential company of focus

Unidentified Analyst

is that cloud side? you that Can your there? Excellent. Thanks me give Or then that. that the on side? mentioned. hyper just guys the delay telecom scale And on for you the Is context

Kishore Seendripu

hyper the On side? scale

Unidentified Analyst

Got it.

the into not or a with read not some that separate much that is of paraphrasing, in like, not you collapses? distinction? we that of is it. Is earlier mentioned to too And to regards Cool. the just remarks Can my delay, Okay. but that

Kishore Seendripu

to work hyper of scale early material HSI So, not largest I I'm But which part mean, then we you half, regard business to continue the the see business, second to contribution these and more seeing expect customer about year. next in optical referring sure the and come with are the excited with to. revenues

Unidentified Analyst

That is awesome.

appreciate so Thanks Okay, much. I it.

Kishore Seendripu

you. Thank Alright.

Operator

you. Thank

question Stifel. from a follow-up is Tore next Svanberg Our from

Your line is live.

Tore Svanberg

thank you. in to of the move for in And And but nanometers. And this a about question, the I home the middle ski Thank there resorts I summer. here you on mixed my know getting apologize product? asked addressing up the sure past you be for seven will have follow-up I Telluride the to Yes. back for

So any updates there?

Kishore Seendripu

of a this Tore Hey thing. to follow there course, is

and XX trend on know the You details four on the that four That for also know, the lanes chip. on the XXX the and eight of the basically converge of and on point everybody electrical XXX gigabit is going interface it XXX lanes. chip, side one interface be convergence lanes optic XXX, be XXX is optical of then and gig eight lanes gigabit electrical And a you there side lanes industry but and industry to XX of lines going four have of The going gigabit gigabit, electrical next that get electrical don't side. band into you next, four technical will of towards lanes, on but gigabit is the lanes other that to electrical a is you to basically, four optical is two gigabit. the is - Gig, XXX right eight get is the lanes gigabit generation That is gigabit. XXX called lanes converging to flavors industry the today now XXX want here, XXX I is XXX of

tells not it we our will solution, to on knowledge nanometer the the on Because what based So we seven following think be I five chip. working feel on solution. first we a nanometer the industry and next on thousand generation are one - solution five yes are yields nanometer And that the us. a And mentioned are seven through seven be nanometer is reason. nanometers. nanometer of going And power have the that to yields just the lot analysis that. And nanometer do for our nanometer. use the a from industry to will five be never five not tells that and do Tore timing to for interest lithography they right EUV performance I we seven the superior

Tore Svanberg

it. Got

Okay. back Connected to last question Home. that My fair. No, is is

some form from catalyst starting cycle are your work-from-home starting some that thinking an are about So to uptake see you XPX of you new so perhaps this already? that see be could of if trend and you seeing you know also those and faster launched you potentially to a are Comcast I'm with customers products for deployments

Kishore Seendripu

good very Tore. Very, question

You are absolutely right.

shared other very, increased enhance deployment. Connected an platform with The together to because Wi-Fi talk well see XPX not last about the have I to MoCA or customer and and we are shift Home the backlog growth to Hopefully expect well Intel’s shift, made the Gateway the that are assets throughput, of their as benefits is that portfolio all XPX so that still share make should SOC you update you to and growth, very to steam, a platforms. this trying Ethernet, Having as and what as so. this several very, Ethernet, Wi-Fi versions, different Wi-Fi benefit under of but seeing moves suffered XPX into the these deployment. Gaining on should from own basically would us We share a having our rapidly. should associated end and is call portents you a the reason the know seeing XE are that the us, we with of acquisition market wrong accelerate give XPX in very I share that side, said the point, similarly word. operators product their from being year which beneficiary it we Wi-Fi And really but our with full that. and in shift for so is not And

rapid that enough us, is more happening yes, but but for So still okay. not rapidly,

We with are happy that.

Tore Svanberg

you. Thank Okay.

Operator

you. Thank

comments. the I closing management any have reached back end turn would to session. the of our further to or over We floor question-and-answer for like

Kishore Seendripu

Thank you, operator.

note Semiconductor, Jefferies and XXXX that Hardware in Virtual here participating the we Technology Conference XXth Xnd. August Technology will the XXth. to to the XXth. want BMO in XXth Just & Summit Communications be September At Infrastructure Conference September And Virtual Xst and IT at [indiscernible] on

Hopefully all progress these said, we sooner to of us want you connect very forward And reemphasize today. many conferences you joining there. look we you thank hope with Just that. all virtual, on reporting than to to I to much. quarter. for want that are our you Thank and With that next to

Operator

That Thank does today's teleconference. you. conclude

wonderful lines may at for a this and participation. thank you your time We your have You day. disconnect

MaxLinear (MXL) 24 Jul 202020 Q2 Earnings call transcript