MXL - Earnings call transcript Q2 2022

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Operator

Greetings, and welcome to the MaxLinear Q2 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Leslie Green, Investor Relations. Leslie. you, Thank

begin. You may

Leslie Green

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

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

uncertainties statements our product without markets in markets, including, In and opportunities wireless improved concerning geographic revenues various across target relating we addition, make and forward-looking and limitation, will from opportunities for connectivity statements infrastructure markets. our arising and broadband, opportunities to trends,

and other revise statements. concerning to as are may made and we and forward-looking ended MaxLinear outlined XX, today, may the the make will statements risks which is we Additionally, risks timing. opportunities and these These assumptions geopolitical recent competition, uncertainties, statements its today. arising involve of incorrect. forward-looking Motion forward-looking the the filed currently Any quarter substantial for concern, including SEC relating prove of not to information transaction and current anticipated from XX-Q of completion pending statements Silicon limited obligation selling Risk any COVID-XX our industry, our our filings, constraints the we of these of forward-looking update supply and has no on growth risks opportunities develop Form pandemic, that and Factors number markets in More price average a June export our on expect, semiconductor trade customers, trends impact and dependence our that restrictions, section facing including global or the as XXXX, risks

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

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

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

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

Kishore Seendripu

and Leslie, you, afternoon, Thank good everyone.

Non-GAAP gross million. $XXX year-over-year. was operating percentage was point was slightly up margin margin activities XX% flows operating cash XX X% more revenue strong sequentially and QX Our XX.X%, million, than from and of $XXX non-GAAP with

market fiber significant share market growth. They gateway to long-term exciting represent in continue demand company general trends. expanding strong see with driving gains and are most increase content which and are the portfolio, our wireless independent for end robust growth We product Wi-Fi drivers across particular, infrastructure of access, also opportunities, connectivity the

opportunities meaningful expanding towards we multiyear portfolio investments ongoing to markets adjacent address and revenue about our long-term product ahead. growth excited are are and bearing high-value the Our fruit,

to with the particular, should from Near and us X with Wi-Fi mid drive to ASPs. design X XE longer increased market Wi-Fi is rates wins, higher and revenues term, accelerate highlights. industry along continue above new driving the revenue the With benefiting to new and attach are each gateway transition new we Wi-Fi providing growth, which blended churn. Wi-Fi further Turning in improved business Wi-Fi, to growth. features, along ASPs higher standard to market our step-up broadband term, is share, platform growth differentiation, In access in a performance major higher

stand-alone provider now diversify shipments our of we Wi-Fi ramping to QX, increased revenues Wi-Fi and not expect also revenues beneficially XXXX, only This achieve XXXX expand also momentum XXXX. to began momentum service continuing maintain the strong During million our also $XXX but will gateways. third-party into We sales in routers QX. into Wi-Fi double in versus with beyond

customers Moving driving XXXX, is customer Multiple to on continued In versus backlog In large Xx and currently to ramping healthy ramp are fiber our America fiber in gateways. also we shipments, proliferate and growth than America access broadband only but expect more other XXXX. as North target XXXX, accelerated XXXX. regions into by growth not a are solutions XXXX, product X in well. at a increase expect in also North revenues access into strong continued to Tier we our

you know, broadband, than of the broadband portion cable our sales fiber is As currently larger larger market which today. is significantly

XX-gigabit expansion fiber existing our the and and the end for market the our from integrated are one, upgrades; of CapEx breadth processor fiber platform and excited to: ability material We and commitments and fiber industry-leading multiyear ongoing the significant meaningful and to growth content PON our incentives it. fiber in and SoC; share governmental owing drive gateway in confident market below carriers three, two, gateway

to wireless infrastructure. Moving XG

backhaul in per driven and increasing continue by content products strength access tight gains back-end Our platform. to grow share supply, and demand, market despite continued

products doubles more millimeter ramp into than multiband microwave and as radios. content per our wave platform backhaul XG-millimeter we Our wave

operators frequency a spectrum. XG we announced to enable QX, During existing capacity ultra-high single-chip network OEMs and solution payloads on to deliver

the and by solutions, multiple interconnect, We targeting are advanced a solution and for PAMX data size, most have centers. radios. being also announced XXX-gigabit optical amplifier consumption hyperscale qualified power we challenges PAMX XG OEMs enabling massive addresses high-speed which weight power that data high-efficiency X-nanometer MIMO In center XXX-gigabit

the to right grow opportunities time, we PAMX With XXXX. and at technology right our our positive about in strategic in the feel position

the turn call planning, Steve, which I'm our integration me, of a Since about Silicon for our few I leadership track. actively pending words business. have remains teams acquisition about engaged the Before in on excited Motion, and combined to been over our opportunities

SSD its growing efforts and Our company. to into the including markets, to markets. can its market technology potential we as has me differentiate to proven discussions Silicon supporting to target consumer great its products a enterprise. the We further reinforced success the ongoing strong innovation in world-class of rapidly its with continue combined expand bring controller Motion and look

Officer our me about Chief Officer. together We turn bringing cultures call Steve our With are over soon. excited technology-focused Steve? very Chief Strategy two Financial that, Litchfield, the Corporate and let to

Steve Litchfield

revenue Thanks, year-over-year. the XX% quarter up Total Kishore. was first $XXX for and up QX million, versus X%

performed of categories, portfolio. several across of challenges the gateway across With at we in the QX portfolio face in last that fiber, Despite this back continue Broadband demand manufacturing progress X% supply posted opportunities. and QX fixed process front have over by are solid our outlook versus $XXX anticipate the which to both our and QX. quarters and constraints We including difficulties and multiple product or and with severe million, see hybrid on chain product outperformance, growth majority hindering well in said, solutions, our end higher across of access. solid wireless additional our was of up year-over-year, DSL QX revenue full XX% cable, we in line growth driven in supply

to million, of sequentially market was amount shipments QX down connectivity quarter-over-quarter $XX supply Wi-Fi pushed The year-over-year. of XX% revenue solely which in Our due a which into was with QX. constraints, still up end was material decline

are As strong we this expecting quarter. Wi-Fi such, growth sequential

$XX up and a X% up driven versus end revenue with wireless year-over-year, backhaul by of and infrastructure strength Our XX% the quarter million, QX analog. had high-performance in largely market solid prior

delta of XX.X% by increased gross GAAP Lastly, of non-GAAP the was supply to on intangible this Strength quarter margin primarily from between amortization. gross and our industrial in million as continue acquisition-related new driven design was quarter the non-GAAP million approximately and and in for $X.X and GAAP were QX. XX.X% $XX.X revenue. second segment margins and up win asset within and ramps by The XX% shortages. second make benefit to ground multimarket we broad-based product revenue

had driven GAAP of operating intangible payments. operating million, $XXX.X growth GAAP were million quarter $X.X NRE acquisition-related performance-based with and of a from assets million, interest compensation integration In of $X.X included income for Motion acquisition operating was Non-GAAP cost QX. purchased quarter largely interest was QX, Silicon amortization cash million, income legal other for certain during $X stock-based expenses XXXX expenses by being activities flow $XX.X non-GAAP expenses $XXX.X other were million. operating and generated combined, million. XX.X%. million QX Second operating timing $X.X million $X.X of of and and was We Non-GAAP $XX.X accruals costs equity versus cash and GAAP the quarter was up and and flow. strong margin million.

million we slightly $XX cash cash, with position During in over of over restricted made short-term QX, prepayment QX and also worth million million against investments. We of stock. debt $X and our a repurchased cash XXXX long-term exited $XXX equivalents,

outstanding days, for the sales with essentially QX quarter were XX approximately second levels. Our days flat

X.Xx, quarter. concludes results. were previous financial our Our also QX discussion which gross flat were the inventory the turns of from This

an of intention update to Silicon Before guidance, status we give to announced acquire to go you Motion. I want on our the

by cost On process and the the we July we in on for working committed the simplified close period XX, middle believe Hart-Scott-Rodino to expected In effective while And actively submitted our we structure of lower expired. to debt track are the by the with we registration waiting was the SAMR. Furthermore, late well statement fully optimize S-X remain capital. We through July, declared the our are SEC. of June, progressing Form on for XXXX. filing have transaction, financing early

business will mentioned, acquisition are many opportunities about over the As this Kishore years. we coming the excited provide

million, see effect quarter storage Motion's QX performance softness approximately of post turn the With range that, the solid range their the be our on consumer revenue We midpoint technology is quarter of positioned the of its well at revenues, previous of expectations. to is third term QX the top in to X% the $XXX versus Motion has upon we to expect guidance year. near-term prior within let me XX% our to approximately space. up Based line long the having in for Silicon position, 'XX. up and been the $XXX over While versus approximately Silicon growth million currently XXXX a

strong, tightness that 'XX. to FY supply While we backlog continue throughout chain be to to continue continues experience and expect

by be significantly to material is end solutions. QX, driven in expected Demand term a improve. supply our expect as broadband to for record strong, by a in wireless versus by to slightly we be compared slightly QX. but revenue expecting up and off market, in Looking access chain level Wi-Fi for dynamics revenue coming near at be backhaul down down QX substrate quarter-over-quarter, Connectivity to be the specifically constrained availability, In with is are solutions infrastructure, tightness continue we growth in our being infrastructure QX. in recovery

quarter-over-quarter. industrial down our slightly revenue multi-market be expect we Lastly, to

profit to third XX.X% We profit and margin margin non-GAAP be of range quarter and approximately expect be the XX.X% gross GAAP XX.X%, gross XX.X% in to to revenue. of

gross within to over the deliver sequential widened fluctuations. primary factor the margin We being quarters, next end-market range with this several driving mix expect

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

operating We of flat to levels be expect range non-GAAP within a $XX million. roughly with QX QX to million 'XX $XX expenses

rate approximately be to to rate XX%, and tax GAAP be tax roughly non-GAAP X%. our expect We

We expect to solid our and product GAAP execution significantly and In interest increase and TAM. $X.X are expense our million. our offerings closing, to innovative us roughly outperform other market enabling be non-GAAP and

driving of create revenue for 'XX. markets the which under-penetrated, We of today continue FY where in With to Operator? like we We throughout will presence value in believe are content our continue call well strategic grow strong FY shareholders. meaningful in to and we expansion leverage our continued are for markets, pull-through operating positioned balance up questions. open the that, I'd will which for 'XX,

Operator

question. Thank first question you. Stifel. proceed with with Please Tore Our your from [Operator is Svanberg Instructions]

Tore Svanberg

congratulations and record you, on thank the Yes, revenue.

a being biggest Macro the whole quarter changed like has supply obviously sound last with doesn't lot it So since has changed. focus.

takes So anything any perspective orders, your that? that seeing and I as starting far puts cancellations, was as and to just of wondering Are customers, you you what your backlog? are like are from see some the

Kishore Seendripu

Hi Tore, you. thank

specialty we have raised Some us we with various BOM, and markets of nodes. have because SoC in below our are you are that infrastructure the the in unique also various very on cycles our platforms questions our increase which require content growing substrates, advanced success to wireless, product in supply all with material

relief in lag a of bit the little in a supply. getting we're So

I So the in to referred it, here. that's With of the backlog, strong, as shipments my creating some volatility remains on talk the in quite across of our it Steve respect timing script our to part which here. mentioned

managing the backlog there's and And about our concern are against macroeconomic so terms that to share stage, while we respect with into able are the customers their gains softening, make be increase, content as to maintain that our our ship we growth to at this of supply with given penetration momentum will to sure new market quarters various company. markets our able but feel BOM in product. that trying At we a our

you that's So some addresses that customers answer hope an related our have. of of I to concerns that sort the may

Tore Svanberg

great cable a gateways, follow-up new like Very question, obviously, it very as trying sounds gateways beyond to opportunity. fiber actively good. Thank And being diversify so you you're for my that.

the talked that? some there's also What elaborate there? little bit you market. Can there's router ambitions just that getting third-party guess, of You in competitors are Because some market. some I on big into, a obviously, the about

So types yes, that of if just markets, you in color some be could on great. would those your add ambitions

Kishore Seendripu

if super mean are solution, we you was the progress an I So vicinity, in we talking about this we're you much if Wi-Fi of excited. really So Wi-Fi. context and called that's in as obviously, we revenues Wi-Fi, in when company enormous point having revenues of on remember, made put right? in have access mean, I how amount are Quantenna, of terms success were there

of we're player, for, that point, all So there market formidable for while are say but were competitors gate the we sort think of traction. the we're formidable in the that access with side, the we and -- the in the out the on Wi-Fiscal expansion on capability point access speak are space pretty bandwidth would the the Wi-Fi I and ones especially on first X, a leader getting proves I So

in our the where the nonoperator on And been in constrained player significant on So we the And previous base was on as for gate we're a the there, we're the the and far, full ownership the there we building because very power significant getting structure in is be where very purely call the, a challenge this platform power the market. compete we're traction on based going And is that there we to have BOM but focus pipe, on broadband also market. we to that expansion. bringing will business, market stand-alone a Wi-Fi, Ethernet platform. what nonoperator think I because a ready purely there's we're also part and portfolio significant well it's BOM don't is of about management, also that normally talk router call

shape a we're very a good position really growth. of So in to good pretty I get think

supplier constrained we our can versus talk are of we're market, can what the really when today what ship between we ship fact, by we the operators actually versus router stand-alone In shortages is we balancing to to backlog.

Tore Svanberg

I'll back in line. for Great. that. Thank you go

Operator

Thank you.

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

Quinn Bolton

offer questioning. to on on Tore's economy about go follow a for I'll next near-term guys. industry my be line the year. and to to the potential into Street the up wanted Obviously, results. the the Hi, concerned seems But very strong the of macro downturn congratulations I

think about don't Are variability that see book-to-bill handle the the cancellations? outlook or I'm change demand trying whether as get guess seen on weekly to we might And you temper quarter Was in your above have so Just greater I rates? for volatility to think XXXX? you you've one? sort any of any patterns seeing you specifically. a that order started I wondering, addressed in

Kishore Seendripu

a seen to on that Steve have more would I say respond to very bit little The over it not backlog handing is cancellations. that, before strong. we So

So let on answer don't get the that? volatility to me take why any, part, Steve, Steve if there you is that.

Steve Litchfield

Yes.

constrained. up still demand I We're as very look, I we're kind think So about bit with much a the think keeping today. about is, earlier, this little talked not way Kishore of

second this for to the of customers. product fighting just of our year, get still kind half tooth and it's enough So nail really

year, things thinking world, There's talking moving the uncertainty out some the into look I next and like through think mean, of where around. rest to there. think customers, I as the probably that's there's I we recognize

That trying bit, lead best manage right? QX growth the we're I we we're multiyear And fully have, and would are and cycles we're as bookings share, these that Bookings of that industry see good. think broadband. a times were start anticipate to our some where what being whole anticipate. also improve, said, in that will, growth so Look, which the upgrades little about down I we're natural excited in that. that drivers they that's very is going to winning to come happening I expect think that

with of infrastructure are of side infrastructure center wireless things and the data the on happening Some that the some opportunities.

term, So I it's year still that next visibility, tremendous for kind term, uncertainty and long feel of everyone. think I very looms that Short think good.

gain handle newer think as year. as grow had market late we're as these that and even share to some not positioned I we of well last it with we've products

So...

Quinn Bolton

I'll throw for second two-parter a And question. my

Xx or could in a look increase think of this breadth about Or But qualification? North those in gateway detail going more production Just have guys touch sort some growth the there's commence? is? any said multiple for yet? XXX that activity next those production when would Europe. as detail year, fiber you started of to just further through you the you parts you you. America. ship growth gig, how lot year fiber in shipments so, if us call expect on then give Have revenue Thank And for And are that this opportunity? you know to the PAM wins? still XXX of more just content I you that system gateway than gig quickly, broad and at can on either I you you can per operators, provide more number of the

Steve Litchfield

a there. was questions That get unique two in way to

think there like I was four.

Quinn Bolton

all It's right. tried. I

Steve Litchfield

on yes, shipping for mean, fiber fiber So we've side, I look, solutions some time. been the

$XX mean probably historically in even I next to as about, get million year. than have range in and We being million. kind talked year $XX expected $XX that then XXXX, the again less of up That's double like as this low million,

big year. time. a seeing into on we're Tier been X starting quite space. products traction. constrained Look, been we've to So some this that's for all a We've the ship lot to American of shipping got guy We've guys the North going

opportunities. And new so about we're these excited

You And mentioned Europe, yes, their I that there's start It's the until will mix why to upgrades planned that's the number these several multiyear out A don't just are XXXX think lot definitely in European roll the CapEx the into in that happen we're years. of are of and probably even players this. of XXXX. roll that operators have plans aspect because confident over next out.

so that. see And we

just like doesn't short-term So it feel it's opportunity. a

also really You're -- everyone more also to forced broadband. upgrade these upgrades for

-- the rollouts. on they're on of all puts on forces guys, these kind puts working it cable pressure it it pressure as everyone So

I can the about your for the opportunity of side, ramp. fiber second excitement mean, To the XX, excited days as the So There's XXX-gig the comment. XX solution. question, don't around sure know those I X-nanometer the Kishore and probably months over next part

you -- can So

Kishore Seendripu

the customers very, of the ready a for And we we'll for be end longer the traction. in the lambda hoping are XXX-gig decided getting its gig second had of we first launch good per into year, X-nanometer optics So And next that In what XXX-gig, by the solution, Quinn, the with we before can and be ramp. to single year. half we're production PAMX, lane, production has a ones meanwhile, support. very hoped obviously, than with this XXX taken

on track. So everything is

benefited While two incumbent last we a an markets we new supplier years, by being getting on in and markets, had have various challenges a these in have foothold.

are very going is the seems the this and market we feel very good very, on traction. we to now, And to different However, grow. continue where

will XX first -- be will optics, gigawatts XXX-gig time market entire huge the on in center. single fact, the the center and converge and data milestone there even for be this like a a Ethernet just will data In

we think going what's I with very very, So well right feel positioned on now.

So it on wouldn't on even way. a putting put I be outlook script, that And if very the weren't, it it. positive it let it's it

we've a some yes, are So got there and trade technology, coming great shows along.

-- you and look I be should present there very and strongly. think us there for to is

Quinn Bolton

you Perfect. that all Thank guys. for color

Operator

you. Thank

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

Gary Mobley

here wanted Hi in second particularly guys. the and to of gaining to fiber-based lot now Thanks we've is It U.S. cable, Quinn's sort from the broadband subs a U.S., the of at though of of transition three seen least. telcos for I taking market a broadband with on that questions, away and about new net broadband. seems the question. my shift lot the a in double-click

Ethernet the if your curious transition with Wi-Fi generating relative given greater bill taking whatnot attach you're your accretive fiber I'm market cable? and growth broadband so consideration material position to in your broadband of into and/or that and be the in broadband strong can And to fiber versus attach idea and on fiber maybe or share broadband this size based same market increased the also

Kishore Seendripu

X.X, structure. two are going so. And is deploying both They the the mean for more or DOCSIS next DOCSIS within reception way and side that, of the good cable cable very, in upstream being on is economics and is per going also receive cable which years right, Gary, not upgrading data very deployed away. question. be emphatic said sitting solutions I already the Having unmatched, and compelling, the are more the answer is the seeing should and cost is idle. start to the that that not cost to gigabits you X.X guys very are

are well. as we there investing So

increasing Wi-Fi cable us, upgrading while terms growth of is cable. is the driver for units, to and an steadily the going BOM in won't be exciting in so And but keep

Tore's point about be of earnest they're a of and CapEx, right. that even how to will are driving expansion on also look, more. platforms, to cable back does right going the going which view. lot that about next have to very that's that so fiber, investing be The we you're BOM growth very more, keep significant, absolutely BOM again With but driving if to And right? driver, ties We direction telcos a question products a primarily to you're regard And year fiber feel comparable, good from not is also growth. increment maybe

we going so we pretty relative strong. on not on see just to And should to cable you that's once growth them also but just be incremental raw add up, growth should fiber see

So I think it's they all good X.X. for to be units, us. But going of you expansion not going are but DOCSIS the right and that real, be combating BOM the cable is growth is with terms in the to are threat exciting

Gary Mobley

to Steve, color, going the the Appreciate go question path this And you're know or not, I'll don't ask I down but anyway. Kishore. if

softness revenue, expectations, they but the just upside. results gross Silicon and You revenue little highlighted below Motion's in margins some to reported a

accretive of Motion a September by from backdrop And now when closes, sort gate. So XX% accretion things EPS expect between of you would any for when economic think know this out quarter? be level? the XX% you on And time Silicon announced to I give can But outlook you roughly are a the an deal was I and of standing you this long the that still color deal acquisition, change. lot comment there's us this can

Steve Litchfield

you're -- I'll mean Silicon commentary. numbers, I Gary. stay I'm going to Motion's away right. guiding but from Yes, some

consumer about accretion previously. absolutely of very the We this. shared we some We're But by excited and So that we numbers the opportunity. SMPCs. exposure comfortable look, think to are I mean, with I stand markets our understands the everyone

about we So confident are that just and outlook. the excited in

long us moving continues forward, expand So we scale did look, We do this it product acquisition the it portfolio, more our gives it. we're about and excited and next didn't to for for term, very much quarter.

-- I'll So

Kishore Seendripu

think So I that correct. said what absolutely is Steve

right? And the calculate positive degree, on the while you're dynamics our seeing stuff some side, consumer all to contemplated So there's you're at on looking that they're too. of we side, always the softening some

have perhaps with Gary, emphasize how memory there I mixed-signal, our is combined flash opportunity, as we going and of the that I of think good be to want that's central process signal what not densities there in more analog is really the the a to a defect done province sort even increase. capabilities digital much increase densities is job technology-wise

the bear. have IP to that we bring So to

have We designed accelerator already that very, very into high-speed markets. and interfaces a store and strong is traction enterprise proven are

going this all to create really for the well. think I massive TAM combined in both So companies' expansion a in is as all,

very, And very forward exciting. acquisition. it's looking So the really to

Now that we have do for wait commitment happen, made we to can't to it it, okay? a

Gary Mobley

Okay. Appreciate thanks it. guys.

Kishore Seendripu

Thank you.

Operator

Thank you.

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

David Williams

quarter. And for question. afternoon, Good the congrats taking thanks the on

if Just be? customers a synergies And feedback two transaction? about wanted that the full the on around you how the companies to see that, maybe will opportunities maybe commentary SiMo your talk you could little bit are the seeing just received customer And your any between it? think what you

Kishore Seendripu

So in at reference put real side always action. our design, our But we controller device things, can the about that on the comment customer that stand-alone look customers' super MaxLinear we definitely you of creates markets. opportunities cannot If in They're broadband excited, right? there's dairy comment growth I'm we and afraid can right? platform, a storage and

have channel we Second, distribution a wide pretty sales.

that noted industrial multi-market is running quarter was have this will about $XX now at, You what, million.

so us, our can two right? the the nodes, last customers behind technology super scale think that's I And that it we're abnormality with general talking excited. we of of when potentially significant storage on the advanced in terms are And to. sell what provides years a And have could channel mean operational we suppliers,

can I customers, for I cannot so but speak And customers our speak now. for right their

David Williams

color there. I And fair. the That's appreciate

in leverage Steve. talk range. margin and gross the you Can for a one little about maybe maybe you, XX% the kind So this You're of bit there? running

as dynamics chain to You stay we into kind supply term and longer do it issues about we expect How as get everything of think think of pricing and you about this XXXX? kind there.

Steve Litchfield

Yes, David.

of look, think as mean on against Wi-Fi been right? cost seen every us much grow so mix the kind and we're big on team's I mix. we're of I equation, side as hard So on also side, the fighting tremendously this the fighting here, a plays day working role you've And margin very the gross side. the

mean And winning. I we'll to continue so -- we're

seeing You growth that the newer and mean cost coming supply increases can sort mean, we're little north with these I are some ebb they of of about a I see expecting the and flow lower dynamics, $XXX to million bit. cost We chain regions. got seeing regions talked next of year.

see the view gross front don't we'll all dynamics continue that on term, mix long-term I cost some us. before have we'll the to impact short is may overall, may But some new we our So and challenges increases that that, But think the of in changed. that margins. fight that's

Kishore Seendripu

It's fairly And have now, declared guidance right? deal to gone contemplates prices. increases to increased public, The ahead right? and have we'll those And that that -- our prices, going they have right they're increase with. foundries

give we when on margin we gross goals our So you guidance, here. steadfast are

David Williams

Thanks lot. Fantastic. a

Operator

you. Thank

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

Suji DeSilva

Steve. the to takes moving are hi about get as you there just this the parts kind a there? OpEx the Or several Are you in talk Steve, puts level next of Kishore, just Hi and at quarters? through on you grow flat. able question guiding there? Can leverage

Steve Litchfield

Yes, problem. Suji, no

thing a it lumpiness -- our OpEx have we think are saw sorry, of I'm and we're move base. A you is manage lot projects the in more a and a contracts which shows in So done that job great margin good -- that we've quarter-to-quarter. mean of by I because them. overall to really customer that have influenced But I navigate driven lot that gross was up support seeing QX. and from to more pretty and -- come these business, also But

QX, bit that, comfortable down to little of then move that come a of by back in overall. more QX, up sideways. lot kind kind But came in OpEx in. it's of likely that's So NREs OpEx, driven coming A

year. think overall, year in into what I is So expectation the thought for the with line OpEx our for going we

Kishore Seendripu

to need we Yes. is and and the what feel the still And labor of to employees, all on is of and hire we're need talented shortages execute -- in reality that I if also labor, facing skilled projects. those terms of industry we that the fighting where dynamics

to volatility So terms healthy I going tension there's think in the on relative of be to that. OpEx a

to figure me So Steve and will this out together. have

Suji DeSilva

has the start an Is it That's on the color. X, initial of for gate guys? to have supply out really forcing kind of this ramping, you is of then inflection? kind customer North And America ramp -- Tier the Or going did the steady a Okay. helpful you're constraints have side, the have that inflection? fiber to that

Steve Litchfield

Yes, yes.

been So for we half said us, the of originally early I good mean would supply I start has that. but kind making mean on some we're still second it year. progress. this challenging days in of

of So of it'll it kind this as and in half expected ramp the year. next into first half will the second of year

Suji DeSilva

guys. Congrats, Thanks. Okay.

Steve Litchfield

Thanks.

Operator

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

Ananda Baruah

Each Yes, thanks taking point, taking Kishore the things made. you that and the to Thank context Steve, Hi, guys. comments of from that for in. little then and remaining of are to with it's each made I context first guess, for regards comments, you really I'd robust. I'm interested afternoon to good -- comments just the good you see the get around I love questions. to of more some guess, And a

a I give And current there, but levels, you anything guess can guide, can Thanks. that to degree things or the -- growth I'm regards useful. Sort not should Any follow-up us with around to the looking be could you be support 'XX into going so context soften for growth. quick think, confidence then I would I also. 'XX, of supported? a have what in

Steve Litchfield

in continue XXXX. and Yes. what all Ananda, think you on in and I right? But give all navigate mean, Broadband execute. supply kind So out neck I right to obviously, I all, I continue. of going we're trying to do performing to going mean, my mean, I'm here is not customers XXXX, to both we well. to have stick just to a short I guidance tough of are connectivity, absolutely expect that a Infrastructure extremely now. question.

for products right to our continue more We now. to hard customers work get

continue try traction markets. had growth getting so we'll in And last tremendous good quarter, industrial navigate we're to and that and those multimarket

there into continue -- products mean, the catch-up more and And our execute as into quarter. door hands. out to there got so and some we we'll from look XXXX, But get I previous customers' was we the to

Ananda Baruah

what and sort if accurate that to suggest macro? And an you the or regards areas with you business, the of Steve, give get that any a Is are did least little guys customers what comments interpretation? -- are of And you Kishore in of some to starting markets? the you that did made, there that can was, it any us at sense

Steve Litchfield

of there concern this definitely our Yes. I mean, you've some look, year. heard mean, plenty our I there's I from next about competitors, mean, all customers. of out Ananda,

around had So year guys around mean make We've had as XXXX. we've well moving moving orders this no as in mistake, I orders.

no of So on And product there, there's that today. some that there's based concerns getting right? is enough doubt out

is shipment year ramp. how based And dates they and next on for it some of

things in yes, to continue are going this move to around So world.

Ananda Baruah

Is broad-based? that fairly

Steve Litchfield

all the sure. Yes. end Yes, across of markets, yes,

Ananda Baruah

it. Appreciate Thanks.

Operator

you. Thank

SFG. your Our next Please question question. proceed Chris from with is with Rolland

Chris Rolland

guys. understand to here. just versus wanted Thanks I supply demand

of is your of that the because three tightening? segments Or into as come does supply loosen demand four then this down. well? does three in And quarter-over-quarter So guided -- segments picture XQ? that Is were

Steve Litchfield

Yes.

Chris, I things expected challenges we've we this. last definitely have So see quarter talked going on see we are I persist, in -- substrate even think before we clearly, talked It this. we start and continuing that about to that Infrastructure, to about QX. that to was mean, ease

definitely that quarter. The as business light was expected. was last of So kind Wi-Fi

bit. very That a connectivity quarter. recover impacted that little strongly So this will

right? kidding and had they Because want for QX, chain really in strong but want a don't one, not got to supply we challenges So there, sure. many regard With these guys, they both us products. QX, challenges, there's supply broadband, as

big challenges there's quarter. So there, last quarter

side. this the in QX. moderate over Same for challenges of volatility quarter. made saw that You'll definitely definitely there. up thing We see some to short QX, year. of We were some half industrial on some see the in that We continue multimarket the of first

moderate And QX. a will so little bit in that

Chris Rolland

think that do that where picture perhaps is, Wi-Fi And be share? your or your Wi-Fi My Ethernet -- clarification. out there question. second bigger one a few And as attach be is you even Thanks. fiber your looking any with gateway well? then Thanks Okay. or market years, for attach? finally, now that you guys a would right do on either estimate the consistent what your thoughts will And

Steve Litchfield

Yes.

the right? is But at I lot we're It's mean, So of of range. a to growth a been not by Wi-Fi, that. right? early cable We're been I getting growth. And this has up mean, SoC, XXX% we look, XX% our lot our yet. exciting, driven so the getting XX% in attached with saw

made amidst the keep right, like, we good really supply progress So and there. to some of a the balance constraints trying

shared growth making over for that's seeing. low So years. going much and that some the relatively extremely I of earlier we're the progress us we're well. about Fiber, revenue how

the market, is probably market. the larger that Xx look, than So Xx to fiber cable market

of So naturally, Wi-Fi with that comes a product. lot

I the so of that. content in some $XX in cases, capture Kishore will In the -- that lot of those gateway. I And products talked gateway a and content a about we've gateways. around we it's mean, the mean talked we this have of earlier about lot

the even fiber it's now in we than have. cases, opportunities higher some Some that of that

start huge in is It next driver it us will second there. the be and to a be for us. year, a of to opportunities there So for And then the year. third-party ramp half will big more continues growth opportunity the Wi-Fi router

an Wi-Fi the other but relatively number, in we're guys against are I still this share I'm space. So not have going two to exact -- market don't exact or that share three an underpenetrated

Chris Rolland

Steve. Thanks

Steve Litchfield

Thanks Chris.

Operator

you. Thank

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

Richard Shannon

view year's questions from about between year. contributed think dominant into routers? Is guys. up here. of you kind the characterize the number how and way my dollar $XXX going growth? million the kind for Thanks Thinking fiber bigger the Any about to cable, you the other major follow the revenue three this bridging or plus kind a that well. that? the of of third-party easily for number topic taking contributions that's point on kind areas: I'll of as be Hi, can the than Wi-Fi anyone of Wondering next various there of to

Steve Litchfield

will beginning second and right? the supply, more is start we mentioned as But and year. to ramp, in just just Well, that just mean you is if of previous QX. I the -- half mean, I router stuff in We've we're not the continue. really beginning just bigger ease that QX and will had sufficient cable the that contributor, in definitely will, question, in third-party the I

third-party group. So our you'll of a year next see big part ramp from be will

Richard Shannon

you're characterize you or these X that talked talk the to of question Are and over kind flagships at as fiber. year? dynamics dynamics ones customers some winning enough. how as the how play winning next alluded and high-end XX hope to the follow-up to the months the competitive you and can about, over next in SKUs? get the expect the wins into you here you've to evolve competitive well like you here. to And broadband that of Or change of a you large maybe Okay. Fair specifically Maybe hope where can to

Kishore Seendripu

operators the Otherwise, and in the end. That's which enough want a from the the platform you're high-end of have customers the right? as are to single-digit that the we we're processor right, and not market, gateway the some with the with or really the right? I in mid-end of differentiating mean our about is meat come we to but flagship Wi-Fi mini I scheme pure the really fiber and the like excited low-end growth players, not we growth of year, end things, Look, the in I yes, the America, to and you right? mean, and What is then So percentage mean, to right? we're be fiber products you pull, high our processor North always to at But any low the the processor, best, really And been larger this platforms. sort setting the the year. at scale. not there's the mid-end, and that win to now stage clearly, from premier charge to big next platforms. not go big -- will, -- most always flagship going with derivative is world, the then strategy. high-end And if because So derivative piece.

are we high-end a SKUs in So mid-end win both the to and SKUs. position the

question. your answers that hope I So

Richard Shannon

Kishore very That's thanks. for That's helpful me. all

Kishore Seendripu

of think very right? exciting. Europe, really not look size end significant, dollars is to equal America It it. all. in And Yes. mid-end that's right? the the so but is be North China, high wise, just this small and the If And the of mid-end, excludes actually want at the may been you need as And at you to

Operator

Thank you.

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

Tore Svanberg

follow-up comments had it's your about connectivity on And to things the just thank it's catch-up the industrial that. approaching second be like strongest I business. year. a size the and of growth going It looks driver revenue. and But your you. I Yes, timing like understand and multimarket this

is So going I supermarket. know for power what the else on products have there? you some

connectivity. stand where the this products? growth we engine some Are more also from interface ASPs wondering you color because, largest high obviously, So become Just beyond second there? this seeing year has any your now

Kishore Seendripu

other There's interface, but other from because then products. too would servers, Yes, hopefully, it's We're -- of discussion other don't like break much happen. the our in various growth rivals lot we growths, We're right? I major actually, that ASP of which about which we And talk are in Because and to down, gains know to that things category. got in power at is market non-civil our the we for about is excited, can discussion management even power with added permission platforms a also about. a looking me you which for Tore, question, we it don't we're can Lots the have not we and about. strong talk we there them. have power. there's get you then So space, waiting interface multimarket, market, we'll share it market example, other growth right? our And to ours, in so that sell about this industrial taking but talked And certainly, goes things in which every new platforms Ethernet, management industrial how happening -- happening exciting growth. put

traction, the there which didn't stand-alone otherwise the us a three, same of to is we scale So have ago, of lot be seems traction. level years giving four

SKUs that of silently also products a We number been growing. had have and significant

had never that a coming. we number how description so growth of And is thematic

talk will we can And there. that businesses. of we'll an six and Day their about so next get in will hopefully, agreed we general happen internally to our details Analyst So managers each it months, share do have that the more

Tore Svanberg

good. Sounds

you, Kishore. Looking it. to Thank forward

Kishore Seendripu

I you on investor you, want With conferences. calendar let year Thank we've Tore. to that, just know that a big coming got

on participating and Conference September at the We we'll the X, on Virtual Semi following Conference Conference Deutsche will Annual the be Oppenheimer Finance Leverage be in August Fargo Technology Bank Communications on Technology, August Internet -- it and third XX, Conference August so Cap Needham conferences the Semiconductor X. on we'll the XXth QX: XX be annual and Wells

until talking to Bye. operator. summer, look again. and you then, guys a you, we thank And great to have So forward

Operator

conference. today's concludes This

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

MaxLinear (MXL) 27 Jul 222022 Q2 Earnings call transcript