MXL - Earnings call transcript Q3 2021

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Operator

Greetings. Welcome to the MaxLinear Inc. Q3 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. this being note Please Instructions] conference recorded. is [Operator conference your host will now Aberle. to the turn I Nick over

You may begin.

Nick Aberle

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

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

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

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

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

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

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

Kishore Seendripu

afternoon Thank good you everyone. Nick and

was XX% non-GAAP was million, and QX up Our $X.XX. XX.X% sequentially. $XXX.X gross was Non-GAAP revenue EPS margin

growth and reflects is semiconductor strong. financial outlook ongoing in our It multi-market for drivers. broadband overall chain XX%, and of supply respectively We secular and up XX% strong approximately also flow challenges, with industrial trends revenue generated QX our Despite the chain year-over-year record across operations, infrastructure, our operations at was access, of markets, improvements connectivity, continued supply our growth XX%, QX XX%, million. from cash $XX from company-specific industry's sales. contributions end XX%

QX versus was some $XXX business content market up QX driven by share per Turning platform ramps, the revenue end and Broadband highlights. increases, demand. in program strong of new to XX% million gains, QX,

new application to and their expenses capital intensive bandwidth ramp consumer service services. operators As providers address

the We long and from consumer will term. benefit this organic in premise to more shift near mix technology-intensive equipment

also multiple $XX we end strong new across These XX%. geographies winning in will broadband, where provide win sequentially little QX, as years. such fiber had many in strongly platform Connectivity several have are the at over We activities design revenue designs historically, growth revenue up share. a markets, was next million

to QX expect quarter double-digit of sequential our be third solid We straight growth.

strong demand MoCA Wi-Fi and and for Ethernet our growth access momentum Wi-Fi, spans address connectivity see strong portfolio as broadband connectivity services. our robust consumer We trends. long-term and comprehensive for Our underpins products sustained operators

gateway total, next-generation of several our of In cycle. Release the including increase next our triband the Wi-Fi Wi-Fi rate the quarters, platforms Over solution our offerings. operators be higher-value incorporating platforms, the to we Tier launch well. own the will as WAVXXX content upgrade expect increases greatly pricing shift will attach we mix end connectivity as to to one drive their This new of Also, years. as our materially blended several solutions, gateway fastest-growing of next MaxLinear's X WAVXXX a in our higher multitude products silicon for refresh SoCs expect markets to and

related in wireless million to wireless growth backhaul demand that, resume for essentially gain said market backhaul chain transceivers our End for Having share wireless revenue even accelerates. as products QX QX. expect to to we strong microwave $XX infrastructure. flat, package substrates remained RF due strong, Moving our to products. backhaul of was constraints supply for

of double year China Our transceiver outside XXXX. financial microwave in revenues will RF roughly

expect to in post financial We growth rates similar XXXX. year

shipments long-term be growth DSP initiate interconnect shipments to QX to QX speed products the our partners. a America meaningful our high a sequential as in We'll market. the QX optical have low grew ramp it end transceivers North in XG XXX-gig Our revenue growth and also market with expect wireless XG RF strong us. in for of base contributor in off modest access center initial In we an expect module data we PAMX substantially

we intercept on PAMX anticipated to provider. XXXX. a growth remain products are optical of across We early-stage position nearly Given silicon highly XXX-gig as supply our strong within through ramps We're centers. data at tightness bullish products hyperscale all building components disruptive PAMX for the space, expecting our

most on XXX-gig competition. which Keystone PAMX cycle win Keystone product next-generation industry's customer performance we the family, and in solid deployments. Based X-nanometer DSP advantages strong product over significant has Our design sampling recent first is a power and expect interest, for cloud

be XX% portfolio, multi-market million our inventory our grew market by QX. in product $XX Finally, industrial to with across continues lean demand levels. revenue channel End strong to

customer continues design win our products and industrial expand. existing addition, to In for funnel new

end focus rates disruptive all on and will turn market traction for are on our developing continue product markets. and call we gains, gain Officer. high-value four Strategy growth across grow our let that, our over the to term. result, Steve With long new a silicon that place existing now confident emphasis across With with the share specific Mr. to expect and over of a end as cycles and term Chief are our As we industry solidly steadily, footprint new existing Chief with Financial technologies In our Officer new we drivers semiconductor long growth in me new increasing summary, multi-market products. markets, continued and customers outperform industrial Litchfield, to revenues company's

Steve Litchfield

offset flat solutions. was Ethernet gateway million, as XX% our with will access compared was up of up for demand and revenue by revenue Thanks, XXXX the first supply XX% softness Total strong $XXX.X versus XX% then review and Kishore. by we our XXXX. our increased discuss portfolio as products. by third across further driven QX, strength across full quarter-over-quarter year-over-year. in increased MoCA. results Connectivity in driven XG outlook quarter Infrastructure by QX backhaul and our Wi-Fi, growth XX% QX strong revenue was sequentially saw wireless I broad-based wireless Broadband QX for

was between and was the by performance-based XXX Lastly sequentially the strength business of primarily The our product and quarter of we XX.X% in intangible and quarter by the related both gross stock-based million million were non-GAAP non-GAAP driven $X.X points operational XX.X% equity. gross the compensation quarter. $XX.X mix for driven amortization third as previous demand gross up efficiency. and analog up in and basis was quarter third industrial asset versus margin margins delta saw acquisition GAAP and approximately and GAAP of revenue. multi-market and component during Non-GAAP margin high-performance XX%

generated basis expense XXX Non-GAAP operating $X.X driven higher and was down initial $XXX trends guidance lower $XXX XX% revenue million XXXX by of purchased million of the end net and Third million. operating expenses. meaningful to down $XXX sequentially by operating included third guidance quarter for DSO substantially points range combined in operating quarter intangible leverage were operating the as at million, million quarter and million. QX during and up levels of expenses favorable XXXX margin and $XX.X were was to operating stock-based income. in from up amortization strong million, interest $X.X accruals of $XX.X QX the non-GAAP $XX.X versus were This Non-GAAP million sequentially $XX.X range. was low stock-based and other expenses growth our our initial bonus GAAP GAAP and of GAAP million. and million the of assets of QX was low end was flow Cash below activities driven compensation $XX.X expenses from $X.X of million.

cash We of nine months generated $XXX.X XXXX cash QX the of in million first cash. cash, have with now and equivalents restricted operating We million $XXX.X through XXXX. flow of exited

Our improvements quarter outstanding as from third shipment the saw days was approximately XX days, in down days our we for sales XX linearity.

currently the in turns XX% of $XXX the the our let's the be were approximately of Our X.X QX. to We approximately year. prior X% range With approximately slightly fourth XXXX. to up midpoint turn to revenue from million $XXX times, down versus expect quarter quarter that up previous the versus at million, guidance QX and XXXX for inventory

of chain to are QX. demonstrated issues improvements the supply we shipments, a supply continuation While continue seeing during limit

to the of the operations with the in them work the volumes to facilitate builds at customer right Our at hard products remains win right underlying enable marketplace. goal building and team

equilibrium quarterly soon, made supply/demand improvements will that see be basis forward. going a we anytime believe happening incremental don't we While on

expect by we strength be and cable driven by market, QX expected revenue is applications. up broadband in versus solidly driven quarter-over-quarter, Ethernet. MoCA Wi-Fi, Looking Connectivity continued to across fiber end to by at growth and up QX be

ramp. improve access We to expect be in revenue XG wireless and shipments sequentially wireless continues to infrastructure backhaul QX up as

expect multi-market performance. quarter-over-quarter our slightly be QX a we industrial revenue coming off to down Lastly, robust

approximately and fourth non-GAAP profit be revenue. to GAAP margin XX.X% We expect XX% of to XX% to margin -- between profit to gross quarter be gross XX.X%

our reminder, factors. gross on forecast vary product mix a As profit depending within quarter the can a given percentage and margin other

of to QX expenses up $XXX expect million operating to a range quarter-on-quarter be to XXXX We slightly $XXX million. GAAP

up expenses XXXX million $XX QX be QX operating within to levels slightly to non-GAAP $XX expect million. of range from a We

in the XX% and of X%. be to We rate our range XX% expect rate of GAAP tax non-GAAP tax to

driving interest million. million faster to expect closing, $X.X expense other and and other be and delivering and at to We non-GAAP be In GAAP growth we expense our $X.X continue to group. towards interest a peer million $X.X $X.X than semiconductor to sustainable pace profitable million

market the poised are on expanding increasing consumer with key connectivity. of driven goal our long-term networking content robust toward are dependency markets We macro and areas over by global the expanding trend our addressable improving and position. while growth and market a investing proliferation reliable of At silicon markets aggressively to share demonstrate the in our level, end our

top remain innovative and technology portfolio. to delivering solid to addition In for our significant we value differentiated committed growth, line

continued we operating Operator? for believe like While With call revenue for combine questions. as meaningful profile spending the there up we improvement, a is methodology. look disciplined we have margins with to room made I'd that, growing open to expanding a progress

Operator

Instructions] time Tore is from Our be we with Please this session question Stifel. first will proceed Svanberg a [Operator your conducting At question-and-answer with question

Tore Svanberg

just results throughout I'd Steve, Yes. especially little increases connectivity bit Thank you've on or bit strong start a the congratulations happening more that's on and on sounds you side of you. elaborate it like coming got to things. there And XXXX. Kishore the like the content outlook. a could quite

can on give gains would and be connectivity color So any you great. content more

Steve Litchfield

But a see those into expect X long-term then gains that talking is about within do Wi-Fi. just and lot that continuing substantial bit So of we about from off. We've been driven to talked But move X a to and well. that lot we I'll gateway Wi-Fi Wi-Fi increase to a Tore, continue from these Yes by grow maybe X. and gains XE seen a Wi-Fi start we little content a Xto Wi-Fi time. throughout content even this as move we've

content gateways per And $X so north to and you're we're you're $XX talking gateway. of historically talking of well now $X running

Kishore Seendripu

For Wi-Fi.

Tore Svanberg

It's healthy. very

Kishore Seendripu

have much have we And -- not we X the with solutions didn't gateway we we call much we attached it. Tore, In the prior past as Wi-Fi. Wi-Fi our Wi-Fi But though to legacy addition, preexisting replacing are even in to existing do WAVXXX SoC now our Wi-Fi products. are own

you've new Wi-Fi on. content the not platform So that going things getting one second, got existing do is through per actually have platforms before. One, in we offering expanded is sockets two increasing, Wi-Fi; in

a good cases, in total going content. business, a in depending in you're seeing bigger increase. way of a XX% is all in XX% So increase cases Wi-Fi and this a sort the box to in some And on it's some In our the box. broadband BOM dramatic per content very snowball drive to increase

Tore Svanberg

Very good.

obviously talked mean opportunities a your they're include Intel for businesses the both on lot And seeing and Gateway us Ethernet PON and acquisition an but I that. haven't you know could Ethernet. smaller about of some of update other you're got I some next the you whole give year? especially PON you that IP from

Kishore Seendripu

So And market important about the fiber broadband most worldwide than a different to networks bigger happening is all that's if and market therefore in tiers you in such thing PON of market. cable. in over understand XX-gigabit opportunity much we the direction the the to -- really all that symmetric upgrading get have access is that have the we in are time. think to XX-gig And the both fiber you they're nature through they and

offering, highest-end and with have integrated the including access XGS-PON us platform front the PON most processor, For end. Ethernet XXG SoC point we Wi-Fi the premier gateway the

industry have what offering we there. out is So the the in best

we MaxLinear the the really of flagship over year two copy showcase and have are to other flagship play then started in years the catch which premier ramp has So to has trying victory, that the next team players attract world is sometime going big the three and but last ship because engaged excited, rollout to the supply already the will And middle we getting very the shipments PON fiber at provider really that start the in by to a operator, carrier. time. been towards on up as telco are we in constraints

along winning with smaller and carrier, -- So also Europe flagship carriers flagship that and are other elsewhere. carriers in we

So there's huge upside. a

in would of of market, and million so XX% full as of a the runway see think we have you to have accessible an grow. pretty and grow the worldwide If think broadband XX% also in connectivities, platforms of you about that huge and -- XX of boxes a fiber fiber is play, category. top especially units market these mid-tier should And high-end the connectivity are you all market the about the

other growth a all the are all in our our high-performance nicely. huge in the So, outside the analog. expand markets and really frankly, exciting infrastructure connectivity, of investments a wins and us broadband driver for focus fiber gateway now -- and revenues right offerings for we grow the design very taking is shape and should as be have And category

Tore Svanberg

Great.

Steve. one With can Steve to XX% sustain Just cost improve all comment the nicely. continues for on year? margin right for one obviously out XX% next gross to pressure you ability last now, the to there very

Steven Litchfield

Tore. Yes,

cost our are. dealing So with many right doing in best. high those, been are we're pressures and industry We've definitely the very as now

ahead the XX% then of gross and quarter plan in level pleased, XX% this last quarter margin came I think, above exciting. very we're we getting is above hitting

I the in So we're okay term short think here.

thought that of can continue the talked overall very We've towards going that continue that kind That we're many pressures we we're business today on mid-XXs, get gross the higher those. times the products to the range we XX% based the mix around selling above in comfortably kind and to confident drive think, that product I we we're the and said, cost into the mix we’ll and up work short remain in of, that. being the to margin. term,

Kishore Seendripu

and all analog the with changing, new and product product margin gross prior gross high-performance and has improvements mix in improve in that, revenue infrastructure to gross now. are the we should key products with content helping talked also we revenues to really products, of pretty growth, mean, also nature. continue as which higher you have IP about margins in our sell value we I benefits forget that that. additions just And proprietary margins questions our are seen big been The the nicely things right our not

Tore Svanberg

Okay. Thank you. Very helpful.

Operator

Our question. next question is Needham with from Quinn your & please proceed Co. with Bolton

Quinn Bolton

on I to offer question. well. I'll as follow-up guys. Hey, wanted my congratulations Tore's

I in optimistic single-digit the of sounds like, certainly the of that the opportunity, flatter And where the business on business, lower kind of It grow? from to two, of comments in set you, is standalone the fiber at, broadband be core the much think I'm about wondering, seem What CAGR past grow three your say, up. a broadband outlook. connectivity guys segment and picking broadband can be think to of might over growth around next years? PON now some sort sort level could in opportunity that perhaps it kind you growth could the you us more what

Steven Litchfield

Quinn. Yes,

So, that I The Wi-Fi couple year. reasonable We're -- over very kind confident is mid-single about seeing our specifically either. don't we're not the talking upgrades in next happening build-out our doubling We're a remain three we happening, confident in we've excited side expectation think digits is look on I on think, probably as that, of that out especially, significant next that. very in that about we And years. very front. a connectivity infrastructure the network, very of amount wavered We're right? broadband, of look, -- so,

to as when in it Wi-Fi expect definitely and still pretty see XXXX to XXXX for Ethernet. plan comes And it's of days, ahead and well. significant we're early think I growth

Kishore Seendripu

Yeah.

the about really providers whole dwelled which in our business think growth. point nicely both infrastructure the platform much -- tend very, we I think and have very things. between And key we I telco growth our that it is carrier because operators, Quinn, are is not here new the is cable talk We in to broadband plays cable being investments to a on about style. I in shipping think Obviously, when try with fiber. TAM to new added being space. bullish we as that's our you're And fiber is right when telco so called -- and really the

nicely I our think it's all coming to all strength. it in and together plays all very

mean what So has stand but I little guided you're more yes, if Steve And obviously bit -- can to absolutely a you, he I by. bullish, sound right.

Quinn Bolton

into No, Great. sounds It quarter switch shipments PAMX XXXX. could Wondering you I to in if DSP over sort that modest December the constrained have pretty I I in it's a like kind to business. comments higher your appreciate the of visibility you color. infrastructure the to environment. know that around any give of business? shipments will wanted XXX-gig us with

if So you engagements one hand to significant levels with sort XXX-gig like It broadening. for wondering, And engaged as ramp you backlog the in going that look initial do more XXXX, give that designs. you know -- the of to then I in been business are is have that out orders those confidence sounds perhaps into or you've calendar XXXX? hyperscaler

if to XXXX Thanks. opportunity wondering point? there's at hyperscaler this an ship calendar DSPs XXX-gig to a so second in And

Kishore Seendripu

on wager I it's PAMX you more anyway, know But DSP. second a a always than the you this up clearly, would interesting XXX-gig hyperscaler business Quinn, about guess. brought

XXX-gig are You're data online on were we There's opportunity than optical another And said that, expand relevant. ahead with to there farther I are may we obviously, wish Having today. where the footprint. an where our hyperscaler absolutely be center We're right. trying PAMX. we coming

And that really overcoming the are an the struggled and incumbents. companies to our that. of landscape, continuing of we XXX-gig the is the the love aggressive proof changed is lack and create investing who given of Having the with we incumbency innovator supply the past on incumbency fact provider. said lack advantage that are that, gives have it's to -- constraints clearly PAMX invest in focused and and the disruptive We technology

And so slow been have the we on uptake.

-- for is will this longer this year that a big revenue growth term. our for growth be contributor And be for in doubt us. the no will there's year a However, next us good

XxX infrastructure so in PAMX wood the mean side the from outside. and -- lane electrical on in XXxX to per one-to-one And knock where for generation you in the PAM and is next on is moving the XX-gig are electrical right? XXX-gig XXX-gig speak pure to overview, look market optical lane So ahead in evolving the generally inside a XXX-gig things -- I an optical is per if side is as What at then lane. now

not market the very our mark think So consistent are through folks. that to I taking the despite maybe we pay in for that is been and across I eye dividends all data think span so all center have we biggest also well And tribulations run positioned. far And us. off being the long really going the

So confident that. pretty I'm about

Quinn Bolton

Kishore, Steve. you, thanks, Thank Great.

Kishore Seendripu

Quinn. Thanks,

Operator

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

Ross Seymore

there your at and gave we're better in up Any that sound quarter tight fourth in Is dynamic? part moving of tight as Those missing incremental sort question. I you I'll for and guide. for hit Thanks letting went like nearly I'm something of me quarter side maybe to fact ask the as than equation. the of guys. the echo of pace. the inventory first kind wanted or on on an I congratulations Kishore, the on Steve but supply the still strong the that Hi, the more incremental delivered loosening, in the strong of it's guide was? Everybody XX% across sequentially. right all in not know the you size update upside the the talked you industry. about It seems whole quarter, but incremental it's tight the is knows that direction there the like tight. it

Kishore Seendripu

on specific the fact to you're Ross, MaxLinear. zeroing really

And that the seeing for both really growth especially asking engineering that operations up all we would we're space, broadband was lining working broaden I center want furiously that optical that team connectivity connectivity to in for Quinn can and and the to give packaging. So so across lining up we about. are and credit suppliers our demand data for alternative also meet great

for more share become I supply and market would is the an asset for us. and gain think that key

have So so. we've team I to environment well right? to grown also Suppliers our the want here. to touch give And been job. where fantastic inventory like positioned are And cash. So margin other more for our that doing continue levels, operations our hit million as in right? are and operations our with we ability business do the us upon flow days fact. generate expand operating also always is hopefully, becoming size and cash relationship and very engineering missed an that strategic. these a in has expands We gotten from – really we team very, base, of lot to our And should even $XX creative suppliers supplier not a

strategic make expand You we're of for investments capacity steps all as our to in active term. those in the terms have to long taking well. investments And them longer term

have to factors those like looks us. all think I contributed what So loosening for

at However, that suppliers XX% know you everybody least. to have the by XX% prices increased all

we and a expanding incredibly think important. world creative new in base I supplier are on is So being

Ross Seymore

I'll question and one Thanks color. for sneak follow-ups in two unrelated. I in that somewhat guess,

base of done the things. some so, the that great a are which we should new a second the should the is and your right is more forward, now or that admittedly $XX there little opportunities even of side even guys and grow, is broadband off lumpiness have is bit? whittle dynamic? especially or that either there the to million or limitations down roughly And that supply First, we job going then or seasonality somewhat a OpEx expect dominant unrelated Is question, on matters cyclicality concept business you more in

Steve Litchfield

Yes regard pretty and had Ross. with chain pandemic a so two you right? had to I seasonality you then supply it's mean mean look shortages. unique, the been I last over years

we'll back been challenging with. factor and a think I been our get in that's of we've deal bit do I to mean had seeing So the some that to business. that overarching kind that's definitely seasonality

I we QX. think to and would well a typically sometime next QX start as you see stronger year probably see that where

back I we'll So time OpEx, to it that. mean mean We've from things to increase. at mean number job pretty regard I a you've but got time little in With yes, we're I I an mask like is grow move do OpEx not that we've done direction. it I larger to a expect that I also bit would modest going – good to see we start lumpy OpEx think next especially, aggressive a comes to stated be think where that I it's and year look pace. as you'll mean think

increases Next year, in tax as see the going got would beyond first implications OpEx you've you early But in I like standpoint nothing look where in QX, QX, in an naturally out QX, things quarter. naturally and forward. that otherwise, extraordinary from

Ross Seymore

guys. Thanks, Great.

Steve Litchfield

Ross. Thanks, Sure.

Operator

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

Tim Savageaux

Hi, good afternoon.

hear guys You okay? me,

Kishore Seendripu

it's just yes, Tim, fine.

Tim Savageaux

your you GDP transforming QX to kind rate. true from among something more was the – lower competitors broadband this the business upward been that from congrats significant. And want quarter it growth about growth I has at of think as guys type as to were on of I revision kind point a that kind the of coming the by growth single-digits Great. that you of broadband into well talked And kind and way. targeting actually, where right. back And of I profile All mid-to-high come think discussion. out

double-digits pretty expectations. of well incremental your As much you the And those a but not sounds the into that year. on to this I previous competitor, listen larger course growing fiber got to same side, quite commentary product profile

And growth again question for once a kind up of double-digit to sign the becomes So, follow-up. you have in I a get rate broadband?

Steven Litchfield

broadband. double-digit growth. more Tim. mean, context I about really we're good And also in I mean this. we've than about of it very with connectivity talk Look, … We and think, comfortable typically we've I talked You're the

Tim Savageaux

Right.

Steven Litchfield

across next year the think …I company double-digit reasonable. growth seems very

Your is fiber I the new over Look. seems just overall of reasonable said broadband, market. digit long-term mid-single question market a long-term. I kind the mean, about, relatively

mean I it. little a bit spoke Kishore market. in penetration getting it That much earlier. larger are is We a to

there of there? -- dynamics And deployed tremendous lot lot this mean I that's some seeing in upgrades moving as even we see XXXX. mean can ramps with DSL being out I all especially platforms, proposals of involved. towards governments We look you happening build-out with you're getting in so We're to that there's historically particularly of lot cycle. those I a of change a know and familiar out a some Absolutely, are of amount fiber. a coming upgrade this traction. dollars

of about that kind in. as those programs confidence long-term the out gives about come double-digit before that's new us so, growth the that talked And over we've

Tim Savageaux

it, and connectivity things Got in little there you're right get more a well I double-digits and comparable the make suppose. does factoring you Right. in

Steven Litchfield

Yeah.

Tim Savageaux

The more on and really infrastructure was short-term. follow-up

You some incremental analysis messaging pretty center data fastest-growing of as XG a in was issues get it sounds microwave. sounds talked some but expect QX that you from infrastructure supply the and segment like, your loosen could But like reasonable seems to up it and like, those your you about in there? be be it Is connectivity in close. terms contributions guide, both,

Steven Litchfield

grow to and XXXX I coming whole got exact in is we've of is but I to infrastructure. had -- QX comes a mean, think, we've I give off, mean, strong when QX. on year a guidance growing really on we going year time in I so, another super think, just growth on XG to I'm infrastructure. I I Look, the I year. order it mean, an -- it's not pretty is, what our And optical I XX%. mean, think year going think you about This Yeah. -- substantial take start to as good feel it it's it number great exciting the

Kishore Seendripu

that's the infrastructure me through part the our right, we acquisitions that is the -- have other broadband grown Let strategic revenue, alone.

If over take alone you XX then grown it's to mean I look XX and XX last the the months, year. about previous XX%-ish you months

lost, that have trend a the on now company. we a the the as continue bit infrastructure revenue larger will in very gets of well company, grander So but done little

Tim Savageaux

very Thanks Okay. much.

Steven Litchfield

Yeah.

Operator

question. comes William from question next Vecchi with Our Alessandra proceed Please your Blair. with

Alessandra Vecchi

had just I on a everyone I a with quarter. congratulations Ross' follow-up guys. on question regards Hey echo to great inventory.

now of PAMX should thinking or of some of like sort either the XG or normalized business How going level the longevity line think a with day longer items be inventory forward your and dollars target? ideal broadband. we As these in basis about terms about like we in even and

Steven Litchfield

to I I Hey, Yeah. quite referring just come situation. up think somewhat mean we if -- did quarter last you're unique we have I mean a that Aless, a I build the bit. it inventory saw

mean bring of I in chain big So one, to we're, right? having a So supply lot products. dynamics,

WIP for in growth we account quarters. things there's, next just a lot So the the in XXXX that few just to and see over of

we're So one make we've of into application. out have where lot a got to do going multiple in cases kits work hard shipping happen. mean that we that to I products are

possible, customers we the demands. not their to all that so accommodate try we're extent enable their of So our but ship to satisfy products them shipping onesie-twosie them able that we're to to

Kishore Seendripu

growth. we that yes is the inventory to color have So that

to respect the with equilibrium an not is kit. the it other parts However of

our related doesn't -- and And the of is alone the answer to to inventory you because loosening other expect. pieces relative the levels the need then that growth the grown shortages. our to we growth relative revenue up that we So tell revenue enough add not revenue the has supply

we on or need grow we're So behind where to we into. still be where could

we been Our had revenue expectation supply higher had more available. would have

Alessandra Vecchi

year like target where equilibrium go or the is that like it.. you or supply XXX makes I to want I days in actually your that sort given in guess Meaning trying about the trying is I get what XXX worried was days, the business over last change at. to sense. was to so if million $XXX to much the it's understand wasn't as actually of I a

Steve Litchfield

I mean a it Yes. where on longer environment But days. that of under everything depends right I mean products. kind volatile the I But it say. Well, I mean this can keep would it's in to think is little we I quite now expect term, XXX hard

Alessandra Vecchi

at. get helps for what lot. it to was trying that's And me. That a Okay. That's I

Operator

is Benchmark. next Our proceed Williams question with with your from Please David question.

David Williams

ask the congrats a on let afternoon question thanks quarter. for good Hey and me and

do -- What trail shipments? peak ask thinking peak? in, if doing maybe the see? do to you elongate then little see how does guess how replacement thinking transition the in And further that that in equipment then the what of obviously typically or longer-term kind XE and six think I out those And than off? that But would we're the very that about out about you of how to want Wi-Fi that typically trends cycle and you a well Just question. year you're terms CPE play maybe refresh cycle do just

Steve Litchfield

one see business. the before not cable But of really about we question a so sure years got the a right? of an I'm you to upgrade. Maybe are exactly. your lot six that And this get I'll They've I'll that's mature that industry. so of seven pretty -- runway things like long quite cycles It's start.

And cycle investing There And the so substantial. why quite we The much the have us different. because heavily bigger investment is enables market. is there. much of needs frankly Wi-Fi we're faster as that slightly aren't opportunity a that

kind don't if where of that's I So we you... know are today.

Kishore Seendripu

in talk generates cycles Wi-Fi. said you and probably cycles on within if refresh Wi-Fi a cycles a because the data context seven -- Steve a cycle the product broadband refresh refresh cadence faster have right, years right? to cycle afford So cable of connectivity like two of platform take for the at you Wi-Fi -- not they goes X-year the seven industry cannot about So

hand, On is typically access a the the cycle. other fees X-year

plays out. question your cycle refresh answers the that how hope on I So

David Williams

that anything have Have the think you China helpful. seen very XG we thinking little transceivers XG there Thank I been to maybe you was bit a you're how your over deployments base can the maybe then dynamic? then had the the and just maybe XX exposure about That about on next terms months? if in change out roll in And station of slower you. RF in expected. And a China than talk in

Steve Litchfield

us to be on wireless huge with hurt right? player a opportunity hit big. access for was by our position hard OEM, relative really been XG U.S. that very Look China a And large to we Okay. us the have has and that

slow. right? So, they Instead that of seeing deploying are a question does rollouts answers as not rest And that the your they you're So, talking massive hand XXxXX. China think other pretty also for MIMO MIMO are what solutions simply -- huge I XXxXX expected. the been on mean about of the have was the that originally us,

blending large over to has come So setting in as down a that I TAM. guess reality generally is

the win and the us. generally those a end platform been for time frankly to about a incumbency flattery not be conservative for and at design and So revenue very right getting systematic industry wins growth now that of China will various you the And as in having OEMs has outside build-out slow is tends focus is a well to guys. up and challenge with a

and to for it we expect long-term a However, focus MaxLinear. be opportunity growth

David Williams

And one. just quick one more Fantastic.

in to pressures there's are power into anything context -- I related Just seeing you China know if just terms quarter terms weeks coming through? or the shortages? China I'm several in of there's pricing specifically at of the in that. disruptions fourth you're lot a thinking wondering around been of last anything the about supply

Steve Litchfield

there. than There's different Yes. don't of or challenges dealing way. we're over think week David the that I'll with. anything plenty put two already it out I there's last

far. is that see continue you ahead worked that a earlier from competition stay think super of mentioned enables that. operations that I I That to I here. job an thus in the important great engineering do numbers we'll Kishore team also think and our standpoint done and has to creativity us And our think

David Williams

guys. your Appreciate time Fantastic.

Steve Litchfield

Thanks,

Operator

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

Suji Desilva

Steve. Hi, cable. results Kishore. strong On on fiber-to-the-home Congrats versus here. the Wi-Fi Hi, attach

mix say fiber cable? First of traditional And what's so And you you versus higher the if in fiber? do would have all, more your is of Wi-Fi a share why?

Kishore Seendripu

be product will years work. all fiber right the right? piece a our share out both We and MaxLinear, in in So with of we're the our in future I But combined. and rolling about three and world's excited full general platform the premier to Wi-Fi hard develop right? cannot fiber carrier be So going now got it's speculate of how products in access will the

long our percent platforms And Therein world minus right? we been now. share was That will is there we'll have a on We where world little time. is MaxLinear. a existing own platforms our where market had are not or solution. or replacing The Wi-Fi we different, solutions Wi-Fi we years -- bit for a have XX Wi-Fi have no plus no from cable for in is with have

So that's where out. builds story that

So part data Wi-Fi. also case share. about are an our story There MoCA that way fiber, is going and we to detail combined. we of have is are part cable processor buy we'll in much to who who add but pretty So it's right? pure modems there very world also bifurcated is is the share different people to content it's position are right? some And have market and it. take gateway in where opportunity cases Ethernet more ones every full buy and and to Wi-Fi with and a with the Wi-Fi fiber into it gateways too And In voice in gain the our of box get think cable

Suji Desilva

one. content to specific then more talked share press comments as really the three opportunities was help your those growth? That's Kishore. a about follow-up And or just to curious helpful. were near very and -- In you release that highlight share Thanks, other if from or gains. content there Okay. whether term I or were two areas on gain Wi-Fi growth you'd

Kishore Seendripu

statements to Suji, I opportunities replacement. I hate multiple but there think, are board, right of use the across a dramatic like

it are with there our platforms surrounding such about we solutions. and it power and work obviously And SoC some gets in right? ones to so the a talked opportunities don't there's the know quad to into five We stick these forums. only And lost a power many increase our large management. in example, being want now And great content For how think with power the five to right? Wi-Fi side deployed X.X properly I are there. that marketplace. the doing always we because lot -- it so dedicated cover on but get product, team, we is going we only the are are the with And Ethernet premier we right? And to product Ethernet we're We're X.X-gigabit then one gigabit X.X

that should BOM. and add So --

or For then And when say or the us can between solutions you on dollars cable million anyway to MaxLinear's $XX example a power revenue refresh around we easily if let's million ship up units even of an XX to add picking three of content you give gateways of idea alone. power take. of own from anywhere you boxes million management give around see couple $XX

thought about companies inside pure our that idea very uniquely one this content just So analog feature company of can is a mixed-signal in products, the also don't MaxLinear. we do know differentiating do is digital few pervasive which they're process increase the of because

Suji Desilva

Thanks great. guys. for Thanks Kishore. that Okay, color

Kishore Seendripu

Suji. Thanks Yeah.

Operator

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

Ananda Baruah

yeah, Hey, congrats the I'll on few but results. it. good the about great afternoon and be question, could, if Thanks for taking I guys. quick A

of are thinking, environment Just piece hear you is the what also in occurring now growth September just be think the follow-ups guide with than revenue around the you do stronger strength going And I awhile in after what time much being a two just context well have a to up think leveled so and that originally so in do same profile a you situation revenue you growth strong. for -- to of profile -- had or of that. base? anticipated, it's you think off quick should the constrained the stronger quarter I'd think guys where a is have than then But were maybe to we love the you

Steve Litchfield

to going. sure not I'm where Ananda it's exactly hard -- you're

be I and the right and Wi-Fi optical products months profile it products of over dramatically, last as newer XG whether the I growth products, think some the our XX products. look broadband mean So the improved has as it our with well call

find able to don't of of in bookings, this very I we've backlog, in we've growth the supply. this So profile. we we've but I limited surprising. hit confident I any not a the addressed. been that the cases think visibility had We're that supply. -- with lot been think we're mean the getting Clearly

improving. better think And I that's getting we're visibility. so And

share think these well. take enabled we've in I things as to actions to get the I think some supply will and mention been I'll QX. numbers we're of -- that of and those some us XXXX to important. And in think has QX change I more done us it's frankly again And more up creatively enable to

Ananda Baruah

I guess asking constrained the believe Yeah. I'm organic. I environment, Steve about in of a what vast majority the is revenue was

you if me correct wrong, XX% a so in like that's just put up but So growth rate.

Steve Litchfield

true. that's no No,

Ananda Baruah

Yeah.

So I mean here's what I'm looking at.

one I'm sure I'm the this. doing So only not

get up and XX% in You've talking constrained. to a double-digit been just about environment you're presumably the environment less constrained put in you'll growth XX% constrained or guiding organic

sort normalized I just guess it a ahead just the at non-constrained you're we thinking you So say maybe or least really growth would of like seems thought environment? better you're be originally. you in a doing And digits little than should double you bit question XX% maybe is

Steve Litchfield

just talking of that But that. very things do mean, to we're line the now gains haven't the in the in. I significant guide the TAM I to to we're that we're traction that side early we're continue there's achieve, and share remarks achieved of market large quarter that a always we expand times have in? market reiterated outpacing confident seeing do mean, markets to grow spoke that on we're Are not we'll I we very earlier overall participated market. faster. little the and opportunities have semiconductor there right ultimately continue beyond top the current looking mean on and the several fiber prepared about substantial to that upside we going and we Kishore will Look the in some

Kishore Seendripu

to operators investing are partners MaxLinear. As to and they activities more jointly in continue for strategic service we be our development

right? both road financial future investment or versus in for are the them, the in in skin we through have of forecast people -- from technology so our And being development current them we maps also for their are they're benefiting the whether developing in revenue it's endorsed these strategic game revenue purchases. and future also by and So our terms

and the critical. happening now company, as great So technology the of and infrastructure we lot other scale backed about So because all we've right? been a talked have of an even in not a -- -- enhanced things that very are that's always

to thing of to MaxLinear I familiar time. maybe really other long following dispel The this want a is have all for who you been

very, XX organic there had I out that been of our over growth to We growth have organically well. re-characterization there, months. not the some And substantial grow the ability have spurious -- forgotten. but last has these as strong been reports very should organic revenues organic be know

I fact. that So to reiterate just want

Ananda Baruah

the gross be to the the And investments to margins context. is there expand, might you as expect gross also for might should follow-up expand, operating margins dollars? Thanks. we Thanks or there some do profit that extra just the with continue

Steve Litchfield

last yes, So a I points substantial quarter. XXX operating Ananda, improvement saw basis margin we think increase in

to see think we of that goes -- our that we kind up ago I I'd even XX%. again. ability years say X.X a in you'll of get guidance year, that talked north When about

future of We there. are executing holds on that and excited very about kind what the

Kishore Seendripu

think to is I lesser And revenue did that growing you spending remarks Ananda. allude we'll operating Thanks, to sort that and has should which we further. see, expand opportunity the in margin be your prepared Steve than fact at rate of the the

Ananda Baruah

Thank guys. you,

Operator

with question question. from Peterman your with proceed Please next Craig-Hallum Group. Our Capital is Sam

Sam Peterman

guys. Hi, quick here. on me. for Sam Richard for Two ones

MoCA within have kind curious good Wi-Fi are as confident Again, G.hn for you've into guys sounds The some of there. XXXX outlook next too? I'm well? year. how it one be great the And you doubling like would first on connectivity and are connectivity visibility that trending -- pretty you got in visibility any

Steve Litchfield

G.hn perform No a spoke Yeah. and coming mean problem, bit strong little earlier. to continue We Sam. I extremely actually here. Yeah. about in it QX up MoCA Yeah. well. Very

well as getting far MoCA seeing have and as well. as more applications but areas with really more constrained as that product, G.hn good our those been traction with So product,

Kishore Seendripu

operator little connectivity and home. deployments solutions whereas IoT reliable of inside industrial retail oriented and of the more are now some a revenues high a MoCA in connectivity G.hn very of G.hn between service bit difference -- much markets most be and at markets to So MoCA services very, for more backbone industrial right -- quality tends

Sam Peterman

-- just I'm real around if you customer for your quick, Thanks. other your was you the like XX% that they will of growing if then whether think mean that looks lines That's on some looking it can great. just I Okay. just faster? a going quarter. business I XX-Q picked And Customer be you at guys customer wasn't Intel in what's quick curious give from think specific year, B color have there? or Just the up

Steve Litchfield

the mean they I supply top product. regard I have to Sam, of Yeah. to with customers, would think we all all like more them, to

are things significantly similar from we're markets quarter-to-quarter. end with say somewhat top excited difficult and call a our about little growing of all I our we're So But that. customers to to would these

We going execute forward. and continue to also want products get to them more

Sam Peterman

guys. Thanks, Okay.

Kishore Seendripu

Thank you.

Operator

question. Christopher next Our Please is from your Susquehanna. question with with Rolland proceed

Steve Litchfield

there? are back Operator, come Chris might you go Hey, to we caller the maybe next to Chris.

Operator

Okay. No problem.

closing session of will call have remarks. now We the turn for reached the end to question-and-answer I over the and management

Kishore Seendripu

Conference XXth participating TMT that we'll Annual Summit upcoming in Barclays be the TMT Oppenheimer know on everyone let in XX. to November XXth Annual Suisse December Fargo Annual on XX; January XX; on want December QX, and Capital Benchmark Conference the just Xth Virtual XX; and XXXX Technology on Wells XXXX November Partners on November November Technology conferences Growth Event XX; XG Summit Stifel December Annual Conference XX; the Credit on XXth Global Needham I on X; X; operator. Midwest you, Conference Thank Technology Company Conference maybe Growth ROTH

able our to this list on You also be should see website.

want look to and to today progress Thank on So to next we thank that you with you quarter. reporting all say I that, you for forward much. joining us very our

Operator

you this your Thank participation. your and at for conference disconnect today's concludes This lines you may time.

MaxLinear (MXL) 28 Oct 212021 Q3 Earnings call transcript