- Earnings call transcript Q3 2022

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

Operator

Greetings and welcome to the MaxLinear Q3 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being recorded. It is now my pleasure to introduce your host Leslie Green Investor Relations. Ms. begin. may you Green,

Leslie Green

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

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

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

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

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

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

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

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

Kishore Seendripu

good Thank afternoon everyone. you, and Leslie

from Our up XX.X% QX Non-GAAP basis. of operating non-GAAP and operating XX% with million, revenue margin was million. gross margin was X% $XX.X sequentially cash $XXX.X and XX% year-on-year was flows activities

wireless platforms. growth via content which markets end We to outperform a will gateway in and applications, near infrastructure, us drivers fiber long-term gains and allow and continue industrial access see connectivity, customer and to increased optical exciting share Wi-Fi silicon our

in sales our deliver we run versus in doubling well on and XXXX plus rate, highlights, to we are our business financial the revenues grew our on to way revenues with QX robustly business in year-over-year. Wi-Fi year Based on target connectivity in more our tripling XXXX believe to Turning than Wi-Fi XXXX. $XXX million revenue

diversifying by access WAVXXX The is Wi-Fi week beyond WAVXXX X our sampling XX WAVXXX-enabled Wi-Fi customer routers, and customer X.X gateway new our we currently third-party special as an rates system-on-chip pipeline streams wins. gateways. expect driver also represent and we provider XE and and strong to solution share X starting simultaneously With Wi-Fi and spectrum expanding X for market tri-band and first gigahertz our a each attach applications. Wi-Fi, Last X products platform industry's we of prices. close new product in over gigahertz we Also higher average X of generation driving and family we second. connectivity family, expanding Our are to strong increasing speeds attach into ramp products are gigahertz in-home differentiation, design standard-based stand-alone products platform and the gaining service announced Wi-Fi single-chip standard revenues unprecedented XE, and driving offerings customer continue enabling our Wi-Fi X growth bands. multiyear delivers broadband Wi-Fi which points see to strongly is targeting rates XX-gigabits XXXX. selling per are It

continuing currently Moving XXXX, including America access revenues four into fiber than in before. to ramping fiber, our times are customers XXXX. a to we large increase In products multiple more mentioned Tier our versus XXXX North momentum broadband X are operator with expected

technologies recently coaxial access in and wireless to fiber, out of customers. revenue which of AnyWAN support It we single OEMs cable growth multi-gigabit multiple copper Broadband a upgrade Fiber networks roll a to and fixed cable solution including for Our large multiyear new opportunity very cost-effectively solutions generation access us. Ethernet. latest rapidly announced, operators enable to high-performance their SoCs, represents broadband and will

So PON third, SOC North our fiber material below gateway our second, integrated platform and market solution; we're our industry-leading content; for significant processor first, fiber wins design and growing traction beyond excited XX-gigabit proliferating the by America.

upgrades and from growth commitments provide CapEx incentives fiber for a ongoing Additionally revenues. broadband strong catalyst where carriers our governmental

capacity address continuing wireless backlog anticipated, demand infrastructure, substrate we'll substrate to strong in in revenues supply be grew despite constraints. back-end for better and with Moving wireless infrastructure XXXX, customer able QX of backhaul tight access increases solutions. to In XG package a

part are especially new multiband of content multiband our benefiting double more the millimeter across rollout and network geographies as platforms These than We rollout per units. microwave addressable as solutions XG grow of India. from and such platform a backhaul wave in expanding our several platform

our XG grow proliferate, As expect near in for we revenues to transceivers. the wireless owing RF full-system XG solutions will industry-leading our silicon networks medium our backhaul term, and to access

center PAMX silicon with cycle. based and ongoing market, is feel high-speed X-nanometer Moving our Keystone center the at ability to qualifications the position of multiple have on a with grow strategic success the XXX-gigabit XXX-gigabit anticipated which rapidly data only next the leading growing and data production-ready interconnect our of our family products, and trajectory industry's optical we we processing cloud OEMs, growth in product in in data our confident requirements strongly upgrade revenues hyperscale to CMOS,

Officer turn storage Panther us nonvolatile up and systems. category. express Panther We the for During QX, Application in Steve storage Panther Best at Litchfield, Chief Strategy Business Financial including let where enterprise III our it of that, of to Flash for With Enterprise memory opens call our Memory this the Chief Corporate series market we over California, of Officer. the Summit accelerators. III, latest the me new the Clara, Show won within and also all-flash-array product Flash Memory showcased announced availability opportunities in Santa the

Steve Litchfield

Broadband X% QX QX versus Total and was $XXX.X million, down and the was expectations our year-over-year. $XXX up third XX% line down entering X% was Thanks, revenue for revenue the XX% year-over-year Kishore. in and up quarter million, versus with quarter.

quarter solid result market growth constraints. in XXX% of end demand and $XX a was XX% QX, as year-on-year. sequentially and in up connectivity of the Wi-Fi sequentially supply revenue million, strong had an easing Our and Connectivity

constraints end better market than quarter Infrastructure XX% the versus and we flat was driven strength in substrates. offset ongoing slightly by high-performance infrastructure quarter had million, and analog expected $XX in Our up performance was by revenue of mostly in year-on-year. prior the supply

gross the revenue our third million in XX% and was in asset and $XX by were non-GAAP and for $X.X margin acquisition-related multi quarter XX.X% increase approximately delta quarter between The the an amortization. -market QX, a Lastly, and intangible gross decrease year-on-year. driven GAAP GAAP third of of X% margin industrial of XX%, and non-GAAP million primarily revenue. was

accruals million. and QX, the flow In GAAP $X.X XXXX interest generation $X.X flow XXXX. compensation down compared million was interest $X.X equity other million was was amortization combined than doubled, operating assets operating million, costs $X.X and of Third $XX.X stock-based QX. integration were million of quarter generated non-GAAP acquisition cash year-to-date $X.X million, performance-based quarter $XX.X million and including and other intangible same and has purchased activities $XXX.X GAAP Non-GAAP were expense operating in of from was more expenses with expense $XX.X of expenses QX million. and versus for period XX.X%. operating and cash during the Non-GAAP margin million

in long-term we During an $XX with QX, restricted $XXX of We against million have subsequently million slightly we and equivalents, so XXXX $XX and cash prepayment made cash our far short-term exited over position October. found QX cash, a in additional debt investments. million

days, for third linearity due days Our in shipment approximately from was XX driven sales up for days constraints largely outstanding by supply the XX QX, products. quarter our to Wi-Fi

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

Motion update to acquisition. acquisition I of shareholders Motion. On want of go to our status we guidance, Silicon the the pending Silicon an XXst Before you give on August approved

converted under the we In addition to SAMR. QX, during with normal procedure filing

and process believe we close. on a track the through mid-XXXX remain progressing are We for

have committed of structure our are We financing optimize working fully expected the to debt to capital. transaction and lower for actively cost this

together of XXXX that, for the at let's forward revenue of currently of and opportunities We the year. to prior up versus million XX% are versus our the QX look million between business quarter the midpoint $XXX expect about excited two in up approximately approximately our With to cultures combined turn third and soon. X% and the quarter our range $XXX QX. previous bringing be We to technology-focused the for guidance

Wi-Fi. expected broadband end-market we be by QX, persist. to quarter-over-quarter. substrate continued slightly be expecting we are is versus Looking revenue at infrastructure to continue QX issues be driven in revenue down X% down to up supply Connectivity strength to expect as with In compared by

multi-market expect be revenue to flat we quarter-over-quarter. our approximately Lastly, industrial

We margin our combination in driven non-GAAP sequential addition in XX% the to XX.X% to and be of gross to partners revenue. supply and manufacturing gross of range be XX% The profit from the to lower-cost expect customer fourth product quarter by recent approximately of headwinds, end-market in mix in and Asia. margin profit being is risk near-term decline gross GAAP XX.X% margin

operating of to XXXX the We expenses expect to range GAAP $XXX be million. QX in $XXX million

be expect We the non-GAAP of operating million to expenses $XX range XXXX million. in to QX $XX

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

growth perform by well In expense non-GAAP Question-and-Answer presence fiber Wi-Fi, for other be macro continue and for enabling $X access on and dependent roughly that less to that, questions. infrastructure execution markets We're a up our and are strategic to our and to opportunities environment. in interest business innovative solid developing Operator? GAAP where expect offerings as open these expand to can call broadband our We our unlock drivers million. we dynamic value us I'll product believe We closing, With gateways such additional shareholders. conditions. are the excited wireless Session in

Operator

Thank you.

Instructions] question-and-answer first [Operator ahead. with comes from & go We session. will now Needham begin Bolton Quinn Co. the Please, question Our

Quinn Bolton

how How there's think you strongly sustainable some QX is here Wi-Fi segment recent guys. with surprised revenue sort provide Wi-Fi that? I I catch-up ease, any in second in constraints? the in bit Wi-Fi the strength weakness inventory to question. is, Wi-Fi a you that, taking guess, the of as and of broadband And there's of between can little volatility weakness and Hi, for seems Do with XXXX and levels? the And, guess, maybe second behind place in my the be capacity more sustainability in you the little those of think past the Kishore, broadband constraints the half components guess, building a QX. question taking up Thanks you very do business color in are what's connectivity. the up Steve of at bit the I I'm some again market? given comfortable

Steve Litchfield

anyway. start Quinn, out I'll Hey,

Wi-Fi, of So supply first on the of short kind lot driven Wi-Fi Last that with a we what of we had all, by in constraints. so is expected. line quarter were

as to So we well. continue market being the about the was in continued increases quarter. as bit talked see of That we QX share. there catch-up current growth more We've said, take a ASP

And third-party that way so, mentioned business in the router playing start of then to routers the QX And the the that's that's routers. showing just first it's of We'll get continuing as year. And on. more half lastly, exactly out. kind and third-party would the comes start see to We progress. the that year ramp going of second supply third-party in half into

Quinn Bolton

any and just, on then And cable broadband, fiber the comments the business? the

Steve Litchfield

we we're mean, that the business. progress Yes. the Well, I highlighted making on

On particularly that's the broadband We it I was growing ahead, exactly in had would say, quarter north last had a that, the this broadband little well what little anticipated running side, and moderating been a XX%. of quarter QX in happened. bit bit,

the is well. the So we're comfortable side. that's on this market Fiber excited in in progress It's underpenetrated We're about. operator cable our today. business remarks. prepared the with really a We something doing highlighted

lot We products. new a of have

we especially this of over think still fiber-related into small fiber We revenues half have things, the second some that the a to year of the where we are see growth, new XXXX, year. It's of but do have we XXXX. ramping double customers in scheme whole next or potential revenues the going relatively in lot

Quinn Bolton

then, on QX And it kind lower sounds follow-up one the just gross Wi-Fi margins. Obviously, of behind is towards the mix the Great. margin. like in

next As expect to is XX%, next coming you look up would back do you've trend infrastructure to that see you in margin running strength out the more more, gross or you perhaps towards with be year $XXX been products you recently? or million XX% expected that do to could next they think year, that you Wi-Fi year or more other XX% where at walk back to

Steve Litchfield

Yes.

question. good So,

at out, on We've little A gross our we been headwinds view this about as changed bit So perfect have I margins is seeing. talking think going the one mix. that we of been our the all. -- of storm a don't look with long-term have mix

next ramping hurting in So WiFi us. yes, and year, QX you're into correct that in is

shortages, Another originally is substrate little than planned. we had seen. piece the Infrastructure We of the a talked puzzle about lighter infrastructure. is that

see infrastructure those QX improve shortages ease, QX revenues as expect to So I in and of more year. do next

move it little back gross move margins So, up, time back bit think but I model. we'll long-term to our see of takes a to

Quinn Bolton

Thank you. it. Got

Operator

Please Next ahead. Stifel. go question comes from Tore with Svanberg

Tore Svanberg

results. Congratulations Yes. the on fiber follow-up I the gateway. on had a

an I'm you've we think win design give a are than point? pipeline called $XXX that I but converting out us exact going of you're to pipeline sort more sure, not of having number, at million. this in where

Steve Litchfield

about we'll doubling next So, that multiple I with ramping mean this we've about year, regard we've customers general, to talked in talked it see fiber year.

remain comfortable still I think it's think that. we days. still I early with

telecom talked a a about we've fiber. being converting as lot more that over and multiyear cycle, think see I this we more guys folks to --

around that So seeing we're world. the

So, it's area products us lot a new remarks. of a from highlighted that but in for market Kishore growth standpoint, got an ourselves his we've exciting also

customers great think some underpenetrated that's I We're very in so do And a I market, our for think to alternatives place and the looking here. are be.

Tore Svanberg

bit just ease. Very some wireless supply to And of I should good. called already backlog some you Is color you I in pretty QX, this diversified you was have. that. as you your these see Kishore, mean, add a can constraints be if could hoping that. geographically? able out strong really that infrastructure on some elaborate more is business a growth on Perhaps obviously, it little

Kishore Seendripu

it's and we accumulated Tore. continued the we're substrate year, for seeing demand backlog ABF year. and really we've as issues. in really early backlog Hi, by year one are seeing not strong Yes, continually that's reflected very We're the next building that And capacity strong in constrained in the the a next our special just building.

secured QX. have dedicated online capacity in come that We should

a as see year you'll wireless be year strong, we next So at. very should -- to infrastructure

that we not gross could issues that of So affected is other margin because one the back ship. the us mix getting comment, to

deployment network likely that diversity, our major millimeter full vendor geographic at right? you mean wave chips. a it's hear you I for you can wireless the telecom wave and not present wherever OEMs ubiquitously we see XG deploying absolutely. rollouts, be Regarding system whenever expect invariably modems, microwave more backhaul for would solution millimeter So, as than it's rollout,

rollouts, backhaul. one fronthaul just So that all not rollout, important. XG I kinds of and you know kind to of referred are multi-band -- And with becoming backhaul

Now multiple they're in microwave millimeter rolling actually. antenna the conjunction same wave both on backhaul, out

right TAM happening there's doubling So now, a up speak. we as

than are we wherever everywhere, control regimes, the on right? export Other rolled we are regulatory to we wave out. can -- you geographically, restrictions, follow everywhere, So have that right? be millimeter US microwave and So being is safe

strongly are are other the Asia online are are On in okay? US markets is South present geographically the access and side, those we are which markets, very that just and of some that of coming of getting there one started, end them

Tore Svanberg

Great.

called question out clarification lower-cost Steve, associated suppliers. Just Asian for you risks one Steve. with

I think for that time what as Can margin. first sort of by heard meant you that? a clarify, I've gross just the that's risk you

Steve Litchfield

commentary restrictions assessing Yeah, the recent yeah. many addressing sure on out I but new This semiconductor well. as mean relates that it, us. the on I that are front front I'm last companies, rolled we're but supplier also how plenty of customer mean there'll be naturally -- control we the to it week around then export were applies

And margins existing helps suppliers manage talked so to that some either are about have previously. to current we've future that and our suppliers of as we or long-term gross reduce us suppliers

Tore Svanberg

Helpful. you. Thank

Operator

Wells ahead. Next go from Securities. Fargo Mobley question Gary comes Please with

Gary Mobley

that customer my good to guys, taking have them. one noticed of I the maybe out with to a specific XX%. one few call just highlighted XX-Q in for concentration spoke think afternoon. you Hi I high were your pretty question. you things and wanted Thanks Q, that in highlighted a I

to is level wondering And the had read concentration? that's it's your you've concentration. if appears or specific ever And a there that noticed direct there's driver if fab that in what supply to your anything think is getting terms footprint of anything highest that of to Is more the distribution, into I if that? also that supply I'm be -- diverse. seems footprint I And to distributor?

Steve Litchfield

all. at problem no Gary Yeah, Yeah.

two do Wi-Fi or our caught have that on picked are So customers did large. up that We up shipments. as three we in we particular have this past one quarter

in rise did wouldn't it from that it So historically. say I changes had last But quarter. the necessarily we've dramatically what

there's and the as of and the find decisions looking focus we're you're we where I and day the a these gateway at grow those end on of and As of most to them operators operators. rollouts the And suppliers that big relationships of aware these think as frankly all that's number that well of we world each around the are the and really our big making are the spending happening time. we're upgrades

and On it the to quarter look I yeah, bit fluctuated lot I -- back would There in In it. briefly -- the on year read constraints. little the did supply these side bit. you if last to the over know not -- supplier of diversify a a to it into previous the goes whole equation, just a too say it's

can get have in product revenue a inventory we quarter as product last you future we start when more growth. We to and to slight our for WIP that increase get build in saw

Gary Mobley

to hypersensitivity for you your want supply, wanted given the quarter? I has backlog, do the everybody cycle. stand your backlog the backlog guess guys considering bookings -- you dynamics your I about guys shifting ratio to respect Okay. and I with with in where in book-to-bill all coverage trends, demand this semiconductor respect ask trends to to

Steve Litchfield

to I real we've with in even consistent bookings No spoke what think down. last pretty started So expectations QX times this quarter have our found And there. shorten come as lead to I surprises we were. seen I what think was

has into level company backlog out probably, think probably we I highest this the look is had. well XXXX of ever not the that as

on customers mentioned are So this That I to quarter starting well. encouraging. that's move dates around really as said shipment last being

We're it too here think closely. I big not So surprise. a watching

XXXX. infrastructure any about slowdown in got growing fiber I countered think that drivers are where industry excited businesses be to we'll we've see inevitably speaking several they that should nicely some the things Those we're of growth backhaul we've Kishore highlighted and was that earlier.

Gary Mobley

the color Appreciate. Thanks for Steve.

Steve Litchfield

Sure.

Operator

next ahead. The William Blair. Vecchi Please with Alessandra from question comes go

Alessandra Vecchi

question environment. Steve, on quarter Congratulations a as OpEx. for great just on you in tough one a a housekeeping

of are, it year et in You flat supply ease to about we delivered think quarter that cetera? low inflation and with as below of, this constraints OpEx up revenues How holding next even the end kind QX. do counter

Steven Litchfield

Yes.

I especially, the going market closely, the So say I we're you on. we're in would good -- of question. given volatility OpEx kind that that and turbulence watching see mean, of some

that got disciplined So also we here. past. to seen as of into would like offsetting going kind on can and year OpEx in in We beginning think up. do us that definitely NRE be in shows want taxes do the year environment dollars some offsetting so the you've coming that. And expect are to next the increases that some of see I we that and fluctuate your help merit normal We've probably of go expect

think think and mean, that. what while inflation of that's indicator. inflation persist I a definitely -- And I a to lagging we with respect to aspects that's primary other seen of But wages our to are we've typically inflation as see think business. the continue And I for wage going aspects various I in piece.

Alessandra Vecchi

a then QX not through to but the substrate into And easing dead we horse as move year. on just next Exactly. beat

around see you through with any Asian potential I just move the hiccups suppliers in suppliers risks diversifying your past as commentary you in you for mentioned the think, line do year? substrate had there

Kishore Seendripu

this could from the The working takes substrates really, It few that for itself. that in There that's world -- of very the capacity – substrate have first Hey, are level inherent is vendors this qualify onwards. to applications. capacity support into product the say a time easing long high-frequency the high-performance design on the really at half been the I on substrate Alessandra, would Kishore. this we capacity year of supply Look of

you to on going are from it's online really number it in online not apply come these come remarks know and And QX one. suppliers have -- And because the that so may suppliers. Asian to we doesn't to is going the all concluded this other

that. not by impacted And so we're

a And other vendors dedicated substrate giving capacity potentially substrates. of capable for supply. are of us enabling our getting be who are could high-performance we additional couple we However,

these suppliers that in right? export So okay? no call risk substrate with that's are are deemed where So of friendly issues any countries I regulatory particular we what

Alessandra Vecchi

That very you, that Thank will move helpful. was I Perfect. on. With Kishore.

Kishore Seendripu

Thanks, Alessandra.

Operator

with David from comes question Please go Next Benchmark. Williams ahead.

David Williams

on afternoon. performance environment. letting a Thanks Hey. this lot Good in ask the congrats me for and questions

Kishore Seendripu

Thanks, David.

David Williams

Steve. Hey,

first of So kind with of the you thinking business. about maybe just scalability the

Now over with now got that $X this do But think of when going of But you, of PAMX seven significant you've next kicks couple revenue you've the of XX, couple AnyWAN growth XX in year. terms that's look the the north last here. gateway the platform the you're growth course billion what And and processors got lot really kind about years. nice perhaps drivers of XX, the Wi-Fi thinking the pipeline of out? and a in how trend the of, you of in does months like scalability together forward all if growth business

Steve Litchfield

very we're look lines investing about that that product we've been David. we've in. mean, I several excited Yes,

with is growth I think investing has TAMs I is longer-term infrastructure front. associated of out Infrastructure center of, drivers growth you're, on couple that large sustained years. over it. data we next highlighting we've of, of that an kind as the of think front whether some been wireless look in area the the That something it's kind long-term about as that

really continue I We days. mean, -- early it's

couple a think beginning and there. that side Ethernet are the these of of WiFi dollars. I We're excess billion the in are portfolio on markets well

will on products. of and I start existing to the more that. think that the And to an come the mean parts off I go from complexity content, area market see size derivatives up the the even those silicon of think benefit just continues that's and growth I based ASPs you'll

couple clearly, those rolled a out -- more side something as fiber the on around are very world that those seeing the more and the focused mean you're needs we're being fiber there's there. and is and I So, of gateways

subsidies of to really encouraging folks You've got also roll a lot fiber. out government

so lot of And got on well. we've front dedicated a as that effort

David Williams

think of able like thinking share? you'll restrictions it do potential Is I'm I of thinking changed And that's place not a business. maybe your that here's that one anything meaningful have could be of kind much. about you're gone acquisition that you the from just that How so SIMO be headwind just SIMO that? then recent to that seems into guess about some sure But there that valuation you or answer. Thanks about could the transaction? and there kind And the how for anything

Kishore Seendripu

don't Look this we satisfactorily. right a question I I -- think I mean even answer is can

So, catapults I largest very it's really with It for believe strategic really a Motion. of in in we one acquisition presence incredibly scaled a that TAMs into think the us business the us, Silicon enterprise for world today goal silicon into our Motion's zero storage presence basically the markets, expand the with really the States. consumer but Silicon a markets, footprint to almost be in it really is United

a to XXX-gig the Panther nice XXX-gig So -- product talked our with PAMX entry PAMX just data center markets It's really as with cloud along and we about. the couple them you that well. and

us. the side strategic it's of So, scale supplier I provide it exciting the a very market think benefits on beyond will

terms will close, really, about we lines. while when waiting cautionary thing remain So, and back optimistic hear time to being anxiously the in really of we are

our firm real have So, don't would we done will into value do don't view in change and it of place in transaction and the no get we we that the conviction have belief if something not the of convinced. we in. first -- weren't We

even the we for and time -- So, of I than because adverse headwinds their for normal and planned products. storage were the pretty doing at the anything And consumer not the there any what business in call more in cycle seems excited. acquisition be had some to business market the

So, things are we comfortable where are.

David Williams

and best Certainly quarter guys. much. the color appreciate so the Thanks well. Very luck of on

Operator

with question Susquehanna Group. Financial ahead. Please Next Christopher go comes Rolland from

Christopher Rolland

little were Thanks for just well? as I Thanks. to there. as well. this than in quite early then a were why March, you guys. estimated expected that to I a weakness cable, actually And December sort there we bit how wanted seeing in ramping weaker fiber are for that in some broadband have there. and kind re-acceleration growth be go a would for the again Is would back And between mismatch looking And didn't in question some as we understand We of September. then business? expect or XXXX? or we are here as issues of re-acceleration some weakness supply guys we'd

Steve Litchfield

Yes, Chris.

said me let earlier. what I clarify maybe So,

So, ship gateways. there number -- into products in crosscurrents mean business. I definitely we saw are the these do different some we of look a

so And in we definitely often are and QX. and there saw that mismatches QX

to starting we're that. get So, through

seeing your are a into for of as seeing We very characterize question a it way think what I whole? root strong we had the we've the I And term look would the broadband XXXX. I maybe bit mean is longer business I XXXX we a cautious see we've the new it little as think next And be same the being year moderation broadband there. offset out any potentially being environment wouldn't got be business that said, that That some will side. you're on surprising so of see that slowdowns would -- to a there. lot

And all us. of fiber that new have businesses we new are got now We've products some the just customers, new to ramping. that

So, exciting. It's still that's early days.

from millions is I incremental it's of super can dollars still, that come but year. of think material, not business next business that that, tens revenue of

Christopher Rolland

too year, little a optimistic? next Should broadband is or grow we expect to that

Steve Litchfield

it So stated, it I surprising, mean, think I if as would bit or come little down be year. don't I just a moderate next

Christopher Rolland

Kishore a give more Fair And I'll question. Steve an you Okay. of and technical one easy enough. then

speak that around And products, entering was cable thought PAMX to or the linearity considering about is yours electrical up. you something market? Thanks. have that Steve So then you have Does active accounts else? Kishore receivable

Steve Litchfield

shortages the the So short linearity. up. definitely we QX reason was linearity of it in in the kind was receivables yeah, I so into mentioned rolled for QX prepared quarter receivables the answer the saw over being the late the on that remarks, the that

Kishore Seendripu

I active this think absolutely, low-power Chris, had where of PAMX utilizing cables. showing cables we we're one with the lot chips just of electrical conference vendors optical and in there's our for a solution, demand our active

interconnect. will as more applications for speeds active So perspective whole from of become increase and the is the the our cables one-end just and side important more electrical

lot So a it of in yes we there's that. demand for we are solution and and a fantastic have

short answer. the that's So, yes, think I

Christopher Rolland

guys. you, Thank

Operator

question with Capital. from Baruah comes Ananda go Please Loop Next ahead.

Ananda Baruah

a could Thanks Do you're you mentioned question. XXXX. you you impact the legitimate from Good well. it I seeing Kishore as for me. expect to Yeah. you afternoon, believe macro? in for Steve mentioned any and couple for Yeah, see guys. yet be you think this taking

I think think the used you're But you yet? inevitably. seeing term do what anything you

Kishore Seendripu

look, – talking backlog, it's hard of backlog about reschedule it's must for is And the us So it than try I other one then predict who our so where year. mean, deliveries it's be very worry true, next those right? a it behavior everybody against of strong trying you that a we some of future very developing customers are the to very and to things

they going is as to things continued have this And even QX, a are saying so be again are everybody the we though just year not as to euphoric we guide and to things last quarter be assumption like into are bad. that, were year, right? good going So

things prepared, be if bad. we So are also should

we're whether So, in wireless, and products. focusing right? on We all whether that, side, of than investments are those it intelligence more our in optical products, is it on but any is TAM you we fiber in is give talked it strategic very gateways of right? cautious can't whether expanding the Wi-Fi, the I So

customer and that. to product portfolio And where or there evolved our reason years have the the no billion pathway product a can term Street are billion the let's don't sort I we you number the from nature this thing of and the I offerings, with feel XXXX now $X-plus go get to if call go the why at we organically at so is whatever five on is what that, XXXX, we $X something? longer in look based can and traction we is garden, of way for from And today the

So negotiated is downturns, but next since year the we just company year scared we have us. has it another never where started

very always reason that come change I very on out offering. portfolio in have We mentality one. with product And strong see to no strong course

that. on question So I answers that your hope

Ananda Baruah

What And underlying to context. a the areas, I appreciate areas? that to being consider or Yeah. constrained most on are see That's as I I be that the guess it. what your you businesses currently? you good Kishore one would And follow-up guess, strongest building quick guys as that. Good.

Kishore Seendripu

question part the first repeat get. you Could of it didn't please? the We

Ananda Baruah

Yes, absolutely.

you most ones the as business consider And the then, the do most do aspects underlying kind see it you having which be So, of which to constrained structural of currently? demand?

Kishore Seendripu

of think think if would one. of I got give wireless should demand, strongest, that of by as Steve sort strongest Cable also And supply going of, the would for trajectory the should not has a we're capacity, up but very year us. downwards that be would and the constraints of be of that off of some mentioning, go strong fiber is And bit. of going when on in growth strongly it's lots moderated in earnest also to -- lot be very the undercurrents I supply think I end growth And So, little sort a next constrained, front we say, broadband to come and by in ramp it. the wireless. was Wi-Fi. I very, of of

optical, once pretty I picks respect XXX-gig our PAMX five some fingers because with and cross an PAMX in have should strong think right? offering So, a nanometer. position XXX-gig here, -- we're on good the up, momentum to it

revenue opportunities new of entering I in trends terms product overcome with MaxLinear should we're offerings on revenues cadence nice that cycle the existing negative for large product think company. any of

Ananda Baruah

much, Thanks guys. Kishore. Helpful, so

Kishore Seendripu

Thanks, Ananda.

Operator

Capital. Next question comes from with Suji ahead. Please DeSilva go ROTH

Suji DeSilva

here the in cash tough generation on and Steve. a Kishore Hi, job and the environment. margins Nice

And what's you guys far seeing optical, and roughly? on as schedule So, XXX-gig centers, hyperscale are you or data of can customer on the the at push ramp macro the timing out center as of tell? XXX, data the that to the

Kishore Seendripu

revenue the constraints XXX-gig Look, us both chapter generation what revenues gains is is with of we per and And production the should XX-gigabit next per year. to in next on of year. years last the and we said, upgrade we had on, expect side. next supply behind that per on customers given half everything now, the we there electrical the ramping But XXX-gig incumbency goes that I cycle But hopefully and optical, see up up optical, should picking second start -- struggled of our second the electrical when like availability two lambda lambda plan into solutions. product we were call leading XXX-gig the the optical should half had of now, lambda start silicon right

can next any, own CapEx spend be terms So, data as in we is ramped now. in And and center is a of our regard where fraction. guys being what their as current in intelligence there I not with call when like delays? year, the be to Absolutely, the are to it would however, product right

are however, So, they steam ahead full our going with with designing product.

extent be of what will the data overall level know centers don't go. purchase I as So,

Suji DeSilva

forward? Okay. the But, Helpful MaxLinear broadband bit to of for maybe. -- that's curious, opportunity is a satellite satellite there. opportunity an size market a used content to guys you a for there's if And and interesting business sell. color now big if direct to this you of stretch going have market there guys I'm a talk and/or an in there's and

Kishore Seendripu

say have is But would I the that, home. So that all satellite Okay. say? products -- the can enable we Suji, obviously what could of into I broadband the technology the

satellite access, unbeknownst reasons getting think wireless broadband really home war I really, be technology meant generated market lot for a in at to compete for subpar, efficient really more it even rural don't at ability I compares me, think that fiber dollars terms Because, is of of are maybe or the mass don't access home to will where but consumption far to as I right? a all to But zones, glamour revenue as know. behind. is fixed really areas satellite access. and it's and However, the It's in due far

Suji DeSilva

Thanks the for clear opinion, Kishore.

Operator

Svanberg Please Tore ahead. go Stifel. Next with question comes from

Tore Svanberg

follow-ups. I quick Thanks. two had just Yes.

Panther And those are through acceleration. The talked And better starting points in I'm is sort of that traction you your follow well? to give Ethernet storage one for enterprise. get as about some there to inflection the III is first topic you on also wondering of just you enterprise? Kishore IP

Kishore Seendripu

to is, Very yes. good question question. yes The and answer your

Okay.

storage Panther storage getting guy, with demand leading to if of enterprise have towards next inflection an right? enterprise growth the So for really point in happens end products hope the and moving accelerators of year, in and already other sockets we're you But forward. one the we proliferate application largest

into the Ethernet yet enterprise getting we traction good on yet. socket ramping we're side, that On the now are side, not but absolutely,

Tore Svanberg

of business. or third-party market American at global Very Is good. that primarily a the this And my other a follow-up was North router more on that market, is point?

Kishore Seendripu

tend different. It's class normally there with I North we market. could very call inside because to whereas -- home. a nature, model a it's North a the router be market we linkage operator is consumerish market, America for And I routers global the It standalone is think not be quite deployments a it's would are say, American Wi-Fi sort even though what -- standalone distribution of in

Tore Svanberg

this right? mean any still have is But before? mean, opportunity for exposure a it. Got there still you you, I it's didn't completely -- I new

Kishore Seendripu

Quinn Yes. very having in we're into the revenue revenue to third-party success. or ramping router terms whether disconnect think revenue and the due numbers Wi-Fi I and that. the where very is you in And growth we of exactly fact Wi-Fi the are pointed about it's We're in broadband talking Wi-Fis strongly between that out good whatever

have we capacity going even sticky the we would demand market exists we last quarters. be the had are little a now the through to potential sufficient over fact And a is success careful in downturn. general with bit had In that had enough two bigger schizophrenia that

Tore Svanberg

That's End Q&A Thank you. color. great of

Kishore Seendripu

All right. Thank operator. you

to that the participating at know We on conferences. be following -- will be I just let the everybody want call we'll

on want on the November Conference Conference is Chicago Las one the on on ROTH November on Susquehanna Credit December November XX; XX; thank November our Stifel Suisse Fargo Conference XX; for Thank York in to New Needham us forward Bye. look in the Vegas in New XX; first we Scottsdale this in next the call Conference you in today joining on Conference I Virtual Conference and Wells all to the The and York the Growth progress With XX; quarter. on reporting you you. XX. to that, in January on

Operator

call. This conference concludes today's

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

MaxLinear (MXL) 26 Oct 222022 Q3 Earnings call transcript