MXL - Earnings call transcript Q2 2021

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Operator

Greetings and welcome to the MaxLinear Incorporated Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brian Nugent. sir. you, Thank

begin. You may

Brian Nugent

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

to markets, laws, our forward-looking statements within meaning including Our tax XXXX statements rate effective securities revenue GAAP our relating non-GAAP expenses for comments expectations include today tax expenses, margin, and revenue, guidance of the non-GAAP quarter GAAP third and applicable and operating interest gross expense. and and growth principal and target other

Form revise MaxLinear and of XX-Q, are XXXX has information including and will December Any and that recent forward-looking opportunities forward-looking revenues the our trends, opportunities More made geographic make target products and arising to our relating and obligation and markets and risks is XXXX or as our these any facing the and assumptions statements for that which limited quarter markets. customers, as expect, to uncertainties and price no Factors' These these constraints forward-looking for and infrastructure including Form restrictions, the global wireless, not on various today. concerning XX-K may SEC and statements. our trade connectivity Risk COVID-XX our we without competition, statements opportunities markets, industry, currently may the and dependence average uncertainties, ended of outlined arising statements second markets statements export from from improved In of growth incorrect. pandemic, involve trends a on limitation, opportunities including other concerning we our in section addition, XXst, of semiconductor supply opportunities across our the prove forward-looking filings, year develop was risks in number substantial today impact update risks filed selling our risks

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

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

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

Kishore Seendripu

everyone. afternoon, Thank good and Brian you,

per of gross at revenue, non-GAAP infrastructure financial industrial at XX% $X.XX. of at non-GAAP Our XX.X% of XX%, connectivity results Broadband multimarket revenues QX margin revenues XX% share and overall stood earnings respectively. of highlight and XX%, and at $XXX.X million,

supply While challenges. chain was QX it industry year-over-year, ongoing by up the still revenue XXX% by muted manufacturing was

overcoming shows these we are guidance However, the our of steadily robust impact supply that revenue QX constraints.

bookings as the business of QX impact X% $XXX to demand and million, due revenue Turning market was down strongly. constraints, highlights, broadband some the of end even to grows supply

accelerating for and and infrastructure subscriber bandwidth-intensive CPE Our technologies services to gains. near long-term operators support upgrade are and additional to spend capital new,

the positioned in X access next-generation include, well our to in approximate are silicon Wi-Fi, of due modems, management from strongly We which value the and benefit to CPE this Platforms, upgrade content power solutions. gateway increase times cycle SoCs, Ethernet an

into up recovering is market Connectivity Copper broadband to and on in platforms rises, growth robust Wireless QX Our Access. Wi-Fi and for $XX Wi-Fi broadband markets versus foresee We operators consumer expected and improved. services. next several higher as existing and Hybrid revenue rate share strongly supply the products existing as our to attach we connectivity and connectivity PON XX% outpace sustained broadband years access for sequentially, accelerates momentum Fixed gain nicely million, PON expand grew strong for bandwidth more our over as demand rollout Fiber

years. and be in also next significant WAVXXX in to product WAVXXX which Triband design capabilities will ramping Tier next-generation Our an Wi-Fi of platforms, release wins offer anchor growth the X couple for XXXX

sequentially infrastructure, $XX XG grew to QX. Wireless revenue X% was than our shipment levels. also million greater XXXX initial of of versus revenues RF to QX XG Moving revenue access twice to up QX grew owing wireless backhaul transceivers.

wireless We XXXX maintain and sequential to throughout growth based 'XX on improvements. anticipated the and into access expect supply backlog XG

them, and gigabit one future. leader, our data XXX Conference, our customers NRE Optical across cycle of In schedule. - In signed include for PAMX XXXX. Keystone, with and Our increased shipment with center DSP strategic continues optical announced more partnerships we as on in target expect investments our products we Fiber much late business sampling product our over competitive gigabit technology strategic called Excitingly overall, has for formally platforms. to to we Based to customer such industry-leading our portfolio strong family arrangements and the power our in support key have cloud of and solutions. agreement shipments committed an progress volume Keystone also scale development a markets, data PAMX end which in for QX, new players such in and X design nanometer interests, industry at next-generation module strong expect we May prepare momentum which generated XXX center win performance infrastructure technology significant for advantages DSP CMOS large ramp

in and our of It expand enable silicon gain markets. market content products end the per Chief revenues and new four our companies' channel specific new in in to Further, demand, new very multimarket Financial existing to existing customers industrial our semiconductor QX, us our to are million improve by fashion market levels industry through increase and demand end place, let markets rates continue. market inventory all These across our Strategy Corporate - With strongly. growth a expected and to their grow distributed steadily as our technologies our Steve developing over pull for call In and are with solidly sustainable to grow, focused will XX% the closing, outperform products with Litchfield, our launching strongly keep up Officer win me Mr. as that, turn design our funnel customers the long-term. solid Chief for and industrial new as Officer. platform. grew footprint and we growth addressable continues on also to are hope we revenue customer drivers over share industrial Finally, we and supply to lean, are $XX also

Steve Litchfield

X% QX, revenue and XX% Broadband the discuss I shipments MoCA increased backhaul outlook our by increased demand. rebounded market gateway increased by then driven QX. largely quarter QX recovery from as Total and Connectivity supply sequentially compared levels Kishore. our continued our QX revenue meet XG business. to with million, Infrastructure as for X% down $XXX.X in revenue our contribution X% QX. first from by for end Thanks, increased Wi-Fi SoCs access XXXX revenue double-digits QX was versus versus quarter-over-quarter by wireless review constraints by will hampered results, further within declined XXXX. and ability

GAAP during Lastly, quarter. revenue. performance basis business up saw XX% approximately strength our faster analog expected, component the $XX.X Home of exceeding acquisition industrial amortization asset of $X.X in in was of intangible the XX.X% XX% margins quarter in gross to high gross margin second following addition the and we equity. Intel successful GAAP by between quarter in the level million primarily and quarter non-GAAP margin for up million and of QX multimarket the delta related XX.X% performance-based and and versus is were acquisition XXXX. demand driven previous Non-GAAP The stock-based sequentially, than we non-GAAP points and were as and was Connected and second the XXX gross both compensation

infrastructure of $XXX.X we end and expenses above Second quarter project, high $X.X received costs. assets up of million $X.X for of range. jointly to million expenses tangible reduces funded accruals a GAAP million broadband sequentially purchase payment combined, stock-based internal compensation million quarter million operating our our the GAAP $XXX.X $XX.X of amortization stock-based $XXX.X the during that R&D and operating were bonus included million, excluded which a and guidance and

payments Non-GAAP two at of for due of million QX, project receive payments repayment milestone million, in We up $XX.X Non-GAAP in receive next contingent to trigger. to a expect any obligations this we QX. expenses related We will believe don't will don't we that operating certain were $X.X years $XX and gross the higher lower despite of operating expenses and to versus XX% essentially the XXXX performance the to range QX margin strong revenue was $XX quarter-over-quarter midpoint flat slightly of million to margin. guidance million. operating subject our

extinguishment the million debt, GAAP and to due GAAP million, of interest $X.X during respectively. and a had we $X.X expense while was QX, the related to expense non-GAAP loss $X.X million quarter During

million funds quarter flow QX used payment and the was the facility. an to new This half proceeds up the against restricted our during we generated secured million by from driven the loan senior will cash. in operating cash loan month and and linearity amortization first of during debt $XX.X a interest from extend million XXXX shipments million of executed July quarter. exited existing for principal cash The and Our cash remaining new of supply with facility of and to equivalents are purposes. corporate Loan Furthermore, from - flow a the generated activities facilities $XX.X half and $XX of down operational terminate new in lower will our XXXX Notably, accounts We was of $XXX.X we during of already first our $X.X Term the this XXXX, largely credit quarter receivable the B, have million. QX $XXX general in made and due in expenses, the fees maturity available driven expenses. XXXX. repay of primarily upon cash, were pay We million levels the increase second in

debt with facility forward. going pay initiatives down around to We flexibility We also on us use established million intentions which cash $XXX acquisitions. capacity consistent borrowing key strategic execute remain revolving expands and our growth and our our with strategic additional credit provides of on priorities in

We as also utilize stock we of continue buyback $XXX quarter the million program. to our purchased during $X.X million

up shipment outstanding the prior Our the in days approximately due quarter XX day linearity. sales days, from second for quarter XX to was

expect forward couple DSOs We to linearity improve and historical to return levels our to of in quarters. the next going for

let's QX previous million to approximately $XXX of inventory with flat were revenue our X.X range We levels. third versus midpoint expect quarter. at 'XX. the essentially XXXX With to for million, of turns be up the the currently Our X% quarter QX the times, that, to $XXX guidance in turn approximately

several continue While we have We improvements our over us believe allowing stage will our that to next early profile, this trend product a in continues support difficult some availability the customers. environment shipment better supply to are quarters. inhibit seen

QX at supply broad-based hybrid QX be improvement MoCA is strength our Ethernet. Wi-Fi as expect expected up is and better to market, and solidly revenue quarter-over-quarter across Looking broadband fulfill backlog. us be driven modest cable and to enabling operator Connectivity versus end to by by up fiber we

wireless slightly in lumpiness We which access expect be near-term has to strengthen business, flat to our up ramped our business is infrastructure backhaul QX as offset revenue by materially wireless year-to-date. sequentially in

to expect market industrial sequentially multimarket improve. we this Lastly, to be as up revenue continues

higher to non-GAAP XX.X% XX.X% We XX.X% than with expect slightly QX profit quarter the revenue be margin to third and GAAP XX.X% to approximately to levels. gross gross of between be margin profit midpoint

profit a quarter, on given margin minus vary, gross mix within product our or factors. X% reminder, percentage a As plus can and depending other

increasing XXXX to leverage broadband and continue in strategic stated goal particular growth of programs with targeted the infrastructure, fund development at and focus on our strong business. We delivering connectivity beyond, initiatives and operating within top line

million. operating expenses $XXX XXXX quarter-on-quarter $X.X approximately to a to We $XXX range GAAP QX million to of expect decrease million

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

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

interest non-GAAP to semiconductor to growth be and expect ahead profitable million other $X.X and million In $X We ambition closing, to continue of $X.X other towards $X.X we our expense deliver sustainable interest million driving to expense GAAP and industry average. and be to million. the

which addressable this be by allow improving content the silicon Over will markets, our to will and long-term, positions. increasing technology share while leadership, market us achieved demonstrating our expand our

due Our the robust end markets growth solid demonstrate of on customer trend reliable towards to are expanding and also proliferation connectivity. profiles global poised and networking dependency to

will for initiatives scaling like demanding remain by Beyond for coupled to MaxLinear, meaningfully These questions. us gross allow as committed R&D shareholders. with the value spending expansion on revenue continue being focused growth, and evidenced leverage return we recent margin operating With open our strategy while for that, - I'd Operator? driving projects. our meaningful with disciplined capital to modest allocation growth up high call products to creating value

Operator

we our with will now Svanberg Stifel. Please from your comes gentlemen, question Tore our having [Operator be question-and-answer question. first session. proceed Instructions] Ladies with and

Tore Svanberg

and you visibility? and thank Could because delinquent assume fairly on results. you you when little broadband thinking congratulations booked especially the even your talk obviously strong you're mean, about But I some about had there. Yes, backlog bit I the beyond QX business, for a QX. relative

don't first? we why there start So

Steve Litchfield

to to next out booking have good you. customers with chat been through, know, Absolutely. year. mean, quite you and continued so stretched have I Tore, Yeah, lead-times definitely all be

improvements, got we've working some we some, multiple strong of visibility. hard to we've you deliveries as improve have go. to on definitely very and yes, we more So are can modest made tell quarters And but

Tore Svanberg

also mean, is a customer the this But I amount. you know Could about quarter think NRE talk who announced impacting is How quarter. one thing? bit and the, you elaborate little probably an on obviously a just And about that? it can't this the should it P&L? you exact Great. we you

Steve Litchfield

Yeah, Tore.

as that we're we've little more is about seeing as consolidated, these the this bit is NRE something payments. talking of So a been industry

seen more forward this to into one them I expect the several and so But going But multiple we've mean And over I forward. we them over do we'd go going more to expect years. see of specifically. increase quarters. see are there they're can't

years some - three that projects could NRE a couple as you of you often you know, expect be you out these over timeframe. take, So these dollars of and spread know, to would

Tore Svanberg

contributing year. Okay, to just one end last of PAMX this question. revenues the Kishore, you business mentioned

start there. You bit for early add year you of could especially late is thinking this know beginning And big XXXX, just about next a this revenue sort hoping or color more the event as we still a pretty year?

Kishore Seendripu

know, the, said these revenue all in especially a where know, qualification other good than that, Having substrates So, end now, market. provider that taken service are packages. place surprising start at should we're Tori, given maintain that, entrant feel And you we have know, you had factors, and stretched end cloud of with is especially new the you we QX. module expected. and components, lead-times have that we this you good This very right their generating And question. with not we and the given to we their the IP a longer customers

the So orders you visibility that the would are, quarters. extend - today, we good expect know, on lead-times company's have would lead-times several company you for

lead-times So we visibility should have, you should expectations and likewise in the into on mind incumbents their expect bookings. one revenue caveat know, good to The XXXX. that, also keep generate that their

we be next despite move know, having, we forward revenue patterns there good with visibility on only year. So demand sharing are the a streams you customers clearly the what as our for

expect product. gig end related of ramps in XXXX short, PAMX see we yes, the our should to to QX, So XXX in at

Tore Svanberg

you thank congrats again. and Right,

Kishore Seendripu

Thanks.

Operator

you. Thank

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

Quinn Bolton

Hey, The congratulations over the getting strong margins outlook. XX%. on guys

DSP, just qualification I you ramped XXXX us a And Could you long is see you Keystone might production? give The that now? year? and production first on? the the any ramp to that one to into you start Kishore Is update XXX Or event to, mentioned start next time? see going gig you if when sampling think wondering that given could do that

Kishore Seendripu

So, Quinn.

beginning the I to it's gig know, sample you looking accounts say PAMX first very XXX are want all by we good. to that, So product,

seeing a are the the speeds also platforms be input, preceding - wherein strong we traction, the X X output know, of and PAMX. gig So would but even optical compare next-generation XX and by XXX or are know, by gig you you compatible the to XXX generation

and I to about on optical both all links. electrical want PAMX gig So emphasize that is XXX

PAMX is to a know, So, the ramp in all gig XXX meaningful and we way. yet as

is But PAMX are in this is And gig X, come particular X the XXX XXX lanes datacenters gig XXX which to converging gig all with or great the gig X X gig so basically XXX the you of lanes PAMX technology, that. or electrical. XXX almost should about story after on expect of

the to we And we the I year, I would XXXX the latter that, you in you're of you this more be know, cautious So expect next and type this to on interconnects. revenue ramps activity. datacenter of type biggest, than revenue know, cloud available if be don't a opportunity be mid-XXXX but expect earlier say or therefore a expect it's lucky for

Okay?

Quinn Bolton

Got you. it, thank

on generation the give is know is, first had but question ramping transceiver. could you're your gen now, previously making X with know by that X second gen second The announced traction second X you the I and us by any you X? progress update you

Kishore Seendripu

garnering you know, you we even by So, for obviously, generation, transceiver know. design radio second wins X are X our

combined Right PAs with activities, and general, market are are and, we development know, But a of the momentum ramping digital towards getting X as for clearly the acquisition, and for traction is also our the Open is strong transceivers design that on performance that. not - hoped. platforms we This really had platform. NanoSemi through to this this. that in towards on big Tier so we high momentum the China high predistortion ramps the XG as RAN power the is fast very technology radio on However slowdowns infrastructure you continues in prongs in two acquired have and the there proprietary next-generation win

seen of RAN available. platform, platforms You on our partnership our is part with and the of Open are a the when Open have solution we certification Facebook announcement RAN

So very a well. position well generation the we with we're feel as that success of products in

X be the XG than win ramps going So yes, the later a bit little but XX to the earlier. design by are by transceiver, X RF momentum the - continues,

Okay?

Quinn Bolton

Got for a you supply then just business. it. constraints And mentioned quick some Steve, broadband one Steve. in had the

supply I some are of by foundries seeing you, manufactured think if manufacturing kind manufactured made the in Just just is Intel some you those products know just that seeing supplier or by on tightness you're those broadband constraints this overall from you the color space? one wondering - you or Intel, if meaning, you wondering provide of constraints. are know another third-party any are could foundry commitments

Steve Litchfield

I the of well as I the Intel right that we Board. on we've Quinn. just or wafer Board, so tightness would you Yeah, all mean, we it on as before, our - be as with others across we as across - really end mentioned say back the side, the suppliers side see know,

Quinn Bolton

Okay, thank you.

Operator

Thank you.

Please Gary proceed Wells from comes Mobley question next Fargo. Our your with with question.

Gary Mobley

pole are double jockey not And, better double you some a managing in chain supply, to way position maybe saying or some year, customers strong this about are are know, outlook. on that guys probably next of tight maybe strong some but how Presumably stretched. want congrats you environment you quarter, through fulfillment. volatile bookings mentioned ask ordering, taking know, booked, supply adequate it. Thanks supply a for my lead-times chain, for got out to question. we're trying guys, I get you to Hey you

cetera? you doing make of cancellation guys is wondering sure firm? - I'm know are flexibility, So what you et to extending that your demand Are you penalties, sort implementing cancellation

Steve Litchfield

Gary, talk you. with to Hey, yeah, it's good

I know, - doing been improvements know, also I I but looking bonders I recall kind to much non-stop like of product chain the we'll say but our mean, making there. think has continue, We're mitigate mean, on progress. everything good you team new second done can we've we these our I time, throughout trying peers, all year. at a I So of enough. And half have great our working within clearly suppliers. And our power wafers, suppliers that mean, some of wouldn't - been substrate, many the supply to I test you are this challenges out I of we wire we're think with I But work bring capacity, these these risks to it's - the job. the think nice are same think to still see challenging.

to the - in them I going they I will you on with year regard see and definitely half. you doubt next see don't I overall is to I know, know, ordering about you subside industry inventory, or still we'll them But more double think first bringing you're there think mean, hopefully, the more know, any anyway. Yeah, start whether to, that. - there's think

like has degree. industry, many so our for to the mean I we orders as this know, mitigate I and manage best the mean, as some time. do think seen I overall far through part everyone most know, you mean, to that are we'll, these But, I non-cancelable others, you we that.

Kishore Seendripu

would environment, know, more is And work relative and customers their most end figure that, challenge greatest you job make one demand can thing demands. that happiness the make more do very - have is they Gary, to understand our work to the we to sure a product, very also said that we customers there in that, add to know, their out our Having we more customers important to term. customers, for demand our and would they're this fact we the sure the products true all diligent we is So constrained happy, customers' to have that have, that right. like sensitive you are have to fulfill our - while like we to with

environment. collaborative important. in for all very are we customers a And So work really us,

a to at any period, we, you So know, gets at time, time what some sure there. certain leave don't who you healthy a we understanding that over know, in fulfilled we have that try revenue, that's point out as we perishable just make so

constrained regarding really are very right. our and they're it's constraining not really relationships It's managing strategic good and how of of in - excited Secondly, they're are our suppliers, that - company a to suppliers very support super company, have growing even though chance managing outsized partnerships, our see excited position, they're only suppliers, one a us, that having our to a a and very they as has the we mixed-signal also front it. growth in

they're make to And that successful. motivated sure so are also very we

You together know, getting I think the they're are suppliers seeing our and to things wonderful help right that's together. think would extent suppliers from and well. our I And now, doing I as thank why to like we that you're

chain we the think essence all It's to know, I sure be will to you - end that the value a working the So process. capture make all the that story. nobody, we're together all the of full supply the Nobody's consumer. to way very collaborative managing the in

Okay?

Gary Mobley

sales. Appreciate a your question just the guys. had about And color, follow-up Wi-Fi I

impact your I something X you're think and year, just to out you going can looking And some know still to Wi-Fi that you year is double feeling revenue how comfortable if this of with? to maybe Wi-Fi your expectation is give us sales that was the for future? to this perhaps

Steve Litchfield

that but great bucket, year. I these think supply another this connectivity been a for that good. in Wi-Fi. by to We're driven right, is about, through constraints saw something supply you Wi-Fi, driven we're know, have content be excited. see know, drivers X very We continue excited QX. It's for. we're seeing we I attachment to in of - we getting a of chain little in throughout you'll mean, this Very the mean, talked is that where I think working tripling absolutely content bit lot A you We've about. area continue we're big demand nice we definitely on traction, to our that had in And It's today, Yeah, is in And big growth very increase further frankly, mitigated our I Wi-Fi. is within the QX, lot in go. but opportunity a that Wi-Fi of general, a that something doubling, gateways growing see one of us. And we've gateways. is by track.

ASP going going is in from the you're seeing you're so $X. $X And to future. to up and seeing $XX Wi-Fi And $XX

So this next-generation product is got, a to on side, exciting. engineering diligently customers the really but also demanding not well. time, very It's teams on are our you just environment, this we've through working know, operations support as

Kishore Seendripu

really Yeah, latest know It's top Wi-Fi and not it's Wi-Fi, the just with I want world access to in the the you sort of, highlight our generation. here, Wi-Fi any right. three platforms

And so the is and it platform a premium the of top breed here.

we a And lot are of frankly speaks of value that here. customers we I the giving there's So opportunity we could I be traction more our for think the chasing, tracks are that Wi-Fi and sort the the we the - chasing we more more ensure there's own capacity here caution customers bring existing more suppliers. our that with from of however and suppliers, bit more on supply procure to a little supply our and the ones customers more as think

Steve Litchfield

that seeing happen double this year, year. that mean we're that even as think far I next more as again frankly, But we'll I confident see

Kishore Seendripu

Yeah.

Gary Mobley

guys. Thanks,

Operator

you. Thank

your Our question. Markets. comes with Baruah question with Please Ananda next proceed Loop from Capital

Ananda Baruah

supply really Thanks guys. up - demand wanted demand questions. a I taking pick I of could, versus beginning quick the from bit? nice up and afternoon, appreciate the Any good how these quarter. constraints to much demand to would September some and mitigate for pick be guidance sense of up that dynamics a little nice pick for the on Yeah, it. the amplify just Hi, really follow-up if starting really

Kishore Seendripu

the answer with coming So, the that amplified spending Obviously, from question? demand business, know, platforms. all you talk by, broadband when really right being platform, more I we share our operators gains, broadband know, is and on premium you and how would is on lot money

And so we several quarter. particular over the the totality a quarters, at not demand, look

heavy to going investment there is I operators. a CapEx trend our So that's this for to due be while think a from

relate don't track because it's of supply And not so example. could anything to not recovery, other a do do to but as look didn't with a time, keeping I than supply what particular period we it we at for QX, to in enough in ship

imagine and So entire up content because really having here. we the and gains and nothing is there in can the demand falling a with and really - than catch spend this there couldn't increase, the demand you of face down are with by operators. having trying larger supply to up demand catching then us rather sort we're It didn't we because amplification that and of an is QX, really share

Ananda Baruah

is, really with plus is, company think future? I you for guess, That's you quarter of know, know appropriate do And suggests is go up do XX%. historically quick for given foreseeable and know, it's not you some kind seasonality question I guess anywhere, are guys could you forward year-over-year, to you I down. your helpful And guess Is some math, I I getting kind question the growth seeing you're XX% it December what of when if who's and revenue for really But you been, know, consistent of, quick know, December if the math, guys the grow who start know, is the to that apples-to-apples you XX% is both Thanks. really sure. I you you I guess going company? quarter - and just it Intel.

Steve Litchfield

all good QX. look - a to get to guide to try seriousness, we it's me in But try So

Ananda Baruah

no that have a of you only headwinds stock far of - remarks said literally bunch stock guys in the there's and by way. your any Only

Steve Litchfield

that our hear to consistent - good with hear, intent. to Good that's

Kishore's strong as continue more like I mean, to continue multiyear this on And growth we've to content I you're to gains, were before. of see that just businesses that's mean side, we never we - a, top feel the see I Wi-Fi the very really market we're look, much had - to this very very cycle. earlier, well. of strong demand. I So of seeing of points mean speaking strong going kind growth one-time to that on growth It's shared that see strong of is know, you does we're we're confident thing, demand, very kind feel continuing not a

going good to So growth XXXX QX very really strong looks and a year. be it's like feels

intentions look, the expecting over broadband think double-digits see. infrastructure build outlook I going is And consistent with what next with are years. to we're that several that's to this be So the our to absolutely grow

Kishore Seendripu

And broadband, just there's right. not

you - really the which come than years And, you only look recall, into mean, XXXX, optical know, now is more I you well. $XXX to of three right. it, a we exceed front growth built on us there's as into forward been and side. and infrastructure have infrastructure expect, what old, the this will in we you If if in know, in the highlight. and it's of especially that And more - million is business track And, which in however, we are slower ahead lot a is

we're PON And fixed think we with the our start of that that. as limit, tend of platforms a - world. more fiber is And, PON like you premier more platform well. our platforms have that So, premier very penetration the is adoption those completely know, in of tiny And carrier investors things really for a market, think huge be XXG And the I adopted if really you you most content the a the it access of we or in platform America pretty lot the you getting a of in the growth and one because been fiber seem by about and showcase for, has as know, it's outlays rest XGS-PON markets, familiar, huge there's robust deploying know, organic North lot wireless that because drivers. the to the that And - upside very, engine market. don't share high to world. the carrier, solution

So I a think, you quote as know, I the never like to sustainable XX%. of growth percentage number particular

or then industrial the blade, the well. vectors infrastructure. think now it. in because products I connectivity, coming they However, of And even And been growth multimarket analog coming and as products new is they've are few life, new years investing broadband to with vectors our launch in several last

the the opportunity of front good is vectors right us for all excited you we're tell them think So and about in company. very I these that can

Ananda Baruah

really Sure, Thanks appreciate a guys. lot. I and it. really that's helpful, really,

Kishore Seendripu

you. Thank

Operator

Thank you.

Seymore Bank. from Please question proceed with question. comes Deutsche with your Our next Ross

Melissa Weathers

questions. Thank couple of Hi, for nearer-term us on Ross. you a more is Melissa behalf I have guys, ask Weathers this letting a question.

XX% multimarket to like you and sequentially. guided be on question quarter flat for it grew looks business, down the industrial First that to last it sequentially

on So any other market. color of And more your a days? expectations that you upside can do at spend little provide as last why that incrementally in the you positive XX

outlook is the So just space? on IMM what your

Steve Litchfield

we multimarket. absolutely, yeah Melissa, industrial about excited Hey, are Yeah.

this kind some are some regard mean, we the And supply markets perfectly quarters' the guidance. those frankly, with supply with nice know, of of very lot difficult constraints. call our given call. of We seeing to exactly, in it's a last mentioned I constraints, to end you improvements,

there's feel so keep know, about forward, with it, our a market movement we're as GDP good. seeing can't of little yeah, chains. just we We've bit I up growing supply right we talked I we demand. try this right now, But of do think to there navigate kind going you plus So and plus now think that

And meet to can. customer as you levels, inventory so fast know, up as very we're working that very we hard but working hard make with, lower those demand to we're

Kishore Seendripu

done now. several - are people our especially And we so to distribution pipelines And And that we new share, gaining market and go be relative channel results share products of right growing, it's while yield because now. the which to parts lot more sales beginning launching get while to so things solid competition. our very to design on the line you are itself focus can and also competent gaining win know we're the demand bring, a - are also in those we've

also that favor. in playing So is our

Melissa Weathers

it. Got

that as now on then your gross guys another And And you. in line range. more thank nearer-term you're Okay, well. margin upsided question the the you expectations like XX%

XQ color those and think raised structurally And between so margins? for XQ that the strong? forward, gross is there and you floor on why anything were So any has your going then

Steve Litchfield

Yeah.

we've little excited that a post-acquisition, improvements down some nice rather, is this seen bit. something about, really we're number So going or did into come that acquisition the

we've to a kind our from And working back so seen operational been price challenging This has suppliers. get as increases of efficiencies lot our particularly been order. of in we've diligently

the doesn't to best doing is we're it, our so the of we're end navigate see that. plan put to And to as tell, increases. we we're here, way in price here. continue going given I ahead would that see you guess And I the that But it can industry, continued constraints

will well And you be a to assets, work issue numbers. we definitely improvements manage were mid-XXs we the continue that. look have But manage to mean, it's our to going of to lot continue that as out those Intel year. a an running mix significantly to up as we're they next always I we're into know, we're those we take order back improvement hard in when so on to as looking to that'll aspire And - that with which to below but going work, into make again, to multiyear be. brought get

Kishore Seendripu

the a a not as our ramping, gotten of better we cost it new any So new or handle had you we're mix, and I Steve big suppliers of a to That's referred the within than of expected. not and that, of well. improvements products factor based is those are mean We've factors. earlier products, know, the on other lot that thing also timing have control,

on be So and up of right. that, costs that big schedule and of have all improvements careful want that improvements is the our forth, so of our are I lot testing, come cleaning so it ramping yield and ahead just part new saying products here we while internally based to on are and are increasing,

a ramping, So basis. to and our and opportunity fine-tune improve cost greater as will we the new line, have should keep you that and on our go-forward products greater if gross margins

Melissa Weathers

guys and Okay, congrats. you thank

Operator

Thank you.

with Northland Savageaux Please question from next Markets. comes proceed your with Our question. Capital Tim

Tim Savageaux

afternoon add business Hey, focus congratulations. a to Wanted I'll along couple of on broadband here. and lines good my the

I a with be that up guide of know, broadband? know, some half QX year kind catching know, on have know, know, you a And that you on, I from And, what know, of you there we the left First, standpoint of if of longer-term kind you and you QX then, welcome. as can, recouping in might any on strong the is think a have way to result don't is better a it? kind should supply about your you that or through think booking a color you of And of know, table backlog know second follow-up. the you quantify, metrics you in would of

Steve Litchfield

good making by on we've able that. about get you of as those you left to to not really what Kishore We're earlier, quantify that to is that, more we're so quote, some pleased in I progress. Tim. definitely and good meet be the we know, mean exactly said Yeah, are focus We're up I order difficult good keeping table it's with earlier going to And, supply win we What that progress. on got but programs we to in demand we continue we the spoke with demands. progress. QX, continue to have progress make good have to We're business, to we ramping we'll new continue was mean know, to make making that. newer as and

Tim Savageaux

platforms the new which that that the And next of that kind my ramping 'XX. leads question, in comment mentioned is about Okay. into Kishore

broadband broadband comments on and still it of the it double-digit the shares mentioned, with know, about digits. direction driving that potential call type of Q of in the, as increasing and factor. if I market growth outgrow, of know, baseline year that in way? your there, been new maybe last another And of given single know in thoughts I next would result the your kind growth wonder factors guess you think there's on high expectations you commentary plans mid into kind business fair I the you market market share be know increased to that I any you you for platforms around broadband you can, see to a all throw in on to if those expect growth don't is your content,

Steve Litchfield

over what consistent we to So, outlook we look, I'm market continue longer-term and very and the our out CapEx speak and the next, sure of to lot would know to put pointed view I'll to of operators to see five quarter, I you with shared think the work we and is carriers our as lot see continue you've last I starting start know, say continue times. a several Tim expand to I'll to customers guess years three here. really dollars to a I Kishore But love

from products we that had just be haven't So position with a historically, even on or the new We're their or Ethernet some pure penetrating new that of gateway offerings we're with growing. matter. for our SoCs see whether a standpoint, market in that we markets Wi-Fi performance unique

just excited we're and outlook optimistic with about had quarter we really really comfortable really more that than our and the I'm last that here. So future

Tim Savageaux

very thanks much. Okay,

Operator

Thank you.

is question question. next with with Shannon Our from Please your Richard Craig-Hallum. proceed

Richard Shannon

for taking Hi, my guys. question. Thanks

fiber been follow-up just to don't I these before me to regarding the the I sense new in broadband business. even look haven't hearing one like I technologies wireless. think from from from one on of that PON of start when that Let see and remember before you you. get last the you mentioned some you here fixed a benefits and

the that? do to think in? about of see markets you're broadband how contribution relative already we And the that context So we do when start to

Steve Litchfield

seeing I we're mean, year. this revenues we're seeing it,

a fast. excess of we we're that with it business the we're out it's something relatively a more As know, is growing previously, underpenetrated pointed you well of cable next playing growing it's expect market it's anyway, three It's for know, growing I something But years. we in our just absolutely over are the I years. mean, our to area. share for - which, these market, out there. But is known with improving We're in rates that's selling twice probably to us do next mean, the three two the see I real anything. it's small, but portion - what but is sure, to very, big it's the respect waiting you probably we're that today, But over two that not on to I this going products see to so growth a share

Richard Shannon

this there. and that that's if question and just to helpful. a topic seeing perspective last get different the here. And with either any market something here from that do your you're you? Wondering come more be Broadcom whether expect you from that the being probably investigation beneficial my real for But this changes FTC Okay, has behaviors let in me even out and competitor can has the customers in or weeks changes in any

Kishore Seendripu

ask of position, the So Richard, you this know, to I somebody is kind our expecting and question, was right.

be You product control the know, you what and what know, want is to supplier we have we so from we strongest customers is to do, where buy do what to best our they have with beam worked us. that, us, full at that past is always week, this a have up have hard I we think we the on we end in tried platform complement that

competitor the so consolidated. And have is - now industry we know - in the done, now have but competitors where you done they what have

too. platform We full have solutions, of competitor does our and menu a

it's not game control, it our regarding and competitors fair how and affects of behavior FTC in right the think is the So and really our on. our I does game customers. And what

we it's very at really point, really the as marketplace opportunity know, in powerful about think But hard to think I to our this feel we've win portfolios our on fathom I competitor. of And as our project You good on strength got and products. that. the legitimately

Richard Shannon

Appreciate me the all questions for guys. That's thoughts. the great. Okay,

Operator

you. Thank

question. Our from next proceed question your Susquehanna Financial Group. comes Christopher Please Rolland with with

Duksan Jang

term thanks for slowdown for earlier on to like had XG Jang should to is Duksan expect like China near-term China taking seems now. out sort - a How build we a And is just driver in It this US, a of question the This also infrastructure? seems has follow-up afternoon. be any question. for accelerating. commentary. it offered I by good any your Hi, tenders Chris and of few more the

Steve Litchfield

were had I in really mentioned behind to I consistent. most that's Duksan that ramp I - see we frankly, so X expecting with. of So, we happen think mean, to X what we by were begin 'XX that before

this is of by X that planned by most year X was coming for that the And market. so revenue

things it's It that's this. had that is on to say know what's is on out exciting auctions to think you we I mid-band can see you next America grow to pushed I of know, China complete, guys these front. North commented impact. in And from start on I excited, have I mean, going now going up very see definitely we're pick those with XG revenues consistent kind here. definitely see some think I to an in year into that think

Duksan Jang

this opportunities are short Also under you. you you that all? say a this are Wi-Fi some at to just our And heard thank would reported guys supply. as there companies market you for PC of serve well? Great, Have chips

Steve Litchfield

know definitely getting as referring client definitely you're of familiar chips. product as we've to think enough we've that don't Wi-Fi Well, I being more with far But struggled we're short side probably as I seen products. call But the And ourselves. mean, and as as I products and out then the we like, shortages challenges across the well. I can our industry. gateways specifically. far Yes. those mean, we're this seeing

Duksan Jang

September And a hear year. then kind just next great you or MoCA to perhaps a last It's solidly mean, on Ethernet you. details And on that Okay, year give I up, thank this and to would bit more is guide, could if more also said any also that But color one. us Thank back be be going you infrastructure, you. the doubled Wi-Fi commentary. helpful. is to of connectivity quick coming

Steve Litchfield

a into the next expect continue I of a ago. were lot connectivity growing year we driven And throughout significant, MoCA this Look, G.hn and what growth see increasingly our of year strong all by problem. no going on beyond market, mean, performed the has well and or year to that yeah, this very Ethernet. is so of say, year, I think I expectations very well, But see excited. a fronts. that's Yeah, you know we're and Wi-Fi those mean to significant very rest we're

next mean, that. well And we're for be strong very growth this I as as year So there's going year sure. double-digit about to excited

Operator

Thank you.

Suji with comes Desilva with your question Our question. ROTH. next from Please proceed

Suji Desilva

Steve, Hi, on the broadband Intel progress. Kishore. A Hi, couple congratulation questions the acquisition. on of

sort ongoing, of at of of there the a margin it, you couple the - that? still if of sort not that's point you already had just here? this efficiencies the you So, moved opportunity along Steve are say Or far you but in would kind kind of Or improvement when kind want acquisition, quarters and to plan there? of in you kind kind you've are acquired know, on into you would if inning is to from described what understand how there's cost of you of you

Steve Litchfield

been hey, the going mean, I very is know, you new liked very very Suji, it up that plan - very and the the of of mention this know, here. we're well. But it's And but bring I inning, done I or, we difficult see make reductions into know that exact where acquisition. I years, our ahead well, some right. I of our have cost get Yeah, have good along That pleased being against over plan part - negotiated right, I three some confident mean, mean, can frankly, give a we're an about has would on two next-generation products will think headwinds that. much we all suppliers really you the know, don't to the been market you of to I would you seen, going job. would that said, that improvements we've that to I to be continue we're, margin next

know, broader products supplier a we as parts on architecture. new these a of are will to of with with participating So different designing that we some market come often collaborating set a that, and have base you

a go So do I things multichip you monolithic modules we about are mean, know, we've talked basis. chips, a that improve on yields little can bit to these go-forward into

short-term, In very environment that have with know, improvements progress. challenges, we're and on pleased over I going it's navigate feel of supply right like the like gross with the the business. And days, the to three margins next do I see but you're years, to so early in, and the some very we early so feel regard to to I it's think continue days of you pricing much the well couple chain still CHD

Suji Desilva

that the content have has challenges Wi-Fi appreciate questions along - today incremental quarters now with guys. can I and the on already business. here? follow-up the content clear a maybe add product that you gain are you as on that with you product you be of mean, been may work there design consolidated Is combined coming products my and Yeah, there. And home very, connected for growth highlight to this what could incremental of set But might you you're then areas couple going the help forward. targeting us watching very the

Kishore Seendripu

platform, your componentry platform we on of confidential, at part to any some you that. that, platform. we you complement guideline all will have want say are right, And, you're increasingly of very could imagination. know the growth not we're Obviously, careful would the also that to that and platform of BOM we that become is quite point for that that and we this aggressive be already, that's look content about look and a is the I a for what to on then taking the examine be, At at if other like to all would are have power, information I that right. leave power rest seeing doing share you an you enough the you And I should investing. know, broadband general the of And roadmap. would this area the

Suji Desilva

Great, thanks.

Steve Litchfield

moving going Wi-Fi sometimes in seeing content a that Wi-Fi I you of Triband doubling you from an to know, think going so gateway. even on But X I anyway Wi-Fi Wi-Fi a and that increase gateway. just talked easily it's a is the ASP to additional, and increase into mean, underappreciated often Wi-Fi one I'm about as know, point Suji, you about know, attach and add dollar in X overlooked. I we've you're content, that Wi-Fi X think

Kishore Seendripu

becomes DOCSIS powerful PON you or the know, strange that right to puzzle swarms supposed When Wi-Fi, moving very of very by right know, total the peripheral a and provided does, right. platforms even to the XXG So that content non-Wi-Fi, BOM X.X X.X. the a in in was it's like processor interesting, is the the of which what BOM small a such Cable you paradigm, front-end bigger piece main to be now it

modem, that you need to of control full the sell processor have However, you in need Wi-Fi. your order that and to

not non-Americans, this maybe know even Asterix you Asterix holding you you know, comics whole know, is the okay, and okay. So tip the for the it's unlike, the world thing Obelix smallest with of the

Suji Desilva

how I'll FTC imagination. charges ask my that want the Thanks, definitely alone open to as I might Well leave well. further guys.

Steve Litchfield

Suji. you, Thank

Kishore Seendripu

With that very Oppenheimer's XXth, August for Communications Semiconductor, joining Deutsche QX. you following you. Xst, on Internet IT Bank's Xth. Technology September Conference and the - say Infrastructure September on much. I our XXth us want reporting August between XXth, and progress Bye. and today you on operator, you Technology & and at to Summit XXst Hardware I thank look all to you, forward quarter. Summit, would next thank we BMO Thank conferences Thank up during participating be Communications I and on August Conference Jefferies will Technology Annual

Operator

conference. today's concludes this gentlemen, and Ladies

this day. at have and may your Thank your a lines time. You participation for disconnect great now you

MaxLinear (MXL) 29 Jul 212021 Q2 Earnings call transcript