Earnings call transcript Q1 2023

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

Operator

Greetings, and welcome to MaxLinear's First Quarter 2023 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. you. Thank

begin. may You

Leslie Green

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

to GAAP laws, our forward-looking include within meaning share including statements GAAP quarter statements other interest securities including and non-GAAP relating operating and for Our GAAP comments today diluted and rate, count. GAAP expenses XXXX, guidance of the effective second and the and applicable GAAP tax and expenses, non-GAAP non-GAAP non-GAAP revenue, gross non-GAAP margin, and

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

we increased products to from cyclical products to our of of of support with or to third to Administration excess parties. indebtedness demand export the the revenue, to of the transaction Additionally, the Republic impacts with ability competition, our for global current obtain technology; These Silicon People's inventory ability impact manage downturn failure review; high anticipated statements industry, make government arising anticipated the risks State and expected nature semiconductor or statements of certain completion or to merger related Motion, uncertainties, our forward-looking and the substantial customers; negative including including and involve risks level inflation; relationships timing of impacts Market authorization SAMR, China Silicon timing pending the our including of risk proposed Regulation, certain will on of for economic retain the the our forward-looking and or Motion of our relating

risks Risk our in XX-Q other revise are as including XXXX, MaxLinear has and or these ended the our is of on today. section forward-looking risk of information filed quarter the statements we Any factors, obligation XX, our made outlined March for no More which to recent any today, SEC Form forward-looking statements. and filings, Factors update

earnings is Relations Investor in The at section release site XXXX Web first the of quarter available maxlinear.com. our

with certain the considered inherent associated tax Non-GAAP associated not In and not on of are of including, financial for to future our be available and discussed site. margin, non-GAAP provide future in today a addition, reconciliation margin, we presentations press our a non-GAAP the comparable stock limited and GAAP We periods operating as non-GAAP effects. detailed including compensation but our financial isolation meant ability based on expenses report uncertainty to charges, project GAAP to to, reconciliation because guidance in We the both metrics, operating a encourage basis. expense GAAP did release of financial other and certain gross the substitute investors historical not or measures. for and Web interest its review measures

We useful it measures are is as reflects information it because how business. investors believes providing for our this management management

for being available also site Lastly, this Web replay weeks. our call two is webcast a will be on and

Kishore? over to Dr. let of Seendripu, now And me call MaxLinear. Kishore CEO turn the

Kishore Seendripu

afternoon, Leslie, you, and Thank everyone. good

a was XX% non-GAAP forward sequential highlight XX% momentum. $XXX.X strong operating In X% was margin XX% growth recording revenue million infrastructure was XX.X% XX.X% and non-GAAP flow quarter growth, basis. sequentially QX, million. of from operating Our Wireless along cash of and with gross QX activities year-on-year margin and $XX.X down year-on-year had with

seasonality in excess to access were along with businesses connectivity inventory the However, QX. and due challenged our channel broadband in

infrastructure growth Our remained is MaxLinear critical win proving relationship interconnect that high building, continuing for these in stable lead and and and and to is future technology speed proven optical connectivity, fiber We spanning customer industrial be the design share drive believe center further revenues cyclical groundwork silicon markets. downturn. data a multimarket content XXXX, data enterprise Wi-Fi In initiatives with to what market platforms. future expand customer in broadband, activity, our semiconductor innovation wireless gains will

and continue the strong and standalone routers. customer in Wi-Fi market service both of adoption our new point access be XE by of encouraged and existing design growing third gateways We the wins to X party pipeline provider and solutions

next represent Wi-Fi connectivity importantly, our products. More the products our phase for growth of X

Our the and product to price targeting single-chip family power expect access we both the highly solution and improve products benefits, selling X cost performance, attach Wi-Fi broadband connectivity tri-band is differentiated WAVXXX Due only WAVXXX industry's average our and and higher our to rates first in drive points. businesses.

ramp Our solutions multiple will first XXXX. enabled later WAVXXX customer this we launch throughout to and year expect solutions

to the upgrade firmly and though inventory, in continues excess soft broadband be hold. infrastructure term access by multiyear modernization confident by as our demand channel outlook of telco excited takes to are longer Regarding market, carriers the cycle we and due MSOs both

solid have integrated processor solution. XX-gigabit traction leading our gateway We PON market single-chip with fiber industry and

for connectivity in access in fourfold of breadth and we Our gains due and technologies. XXXX access the share are XXXX positioned PON continued revenue to integrated our increased well

share PON industry to migrates platform silicon the to older revenues market legacy expanding we content. our DSL grow from and PON, and technologies XX-gigabit customer by expect As

per the XXXX infrastructure. our to of growth silicon and transceiver throughout We and wave RF platform modem XG multiband wireless strong wireless Moving of radios products. hybrid millimeter deployments momentum backhaul and content see as microwave double

several rollout well the benefit very with expanding geographies, including in E-Band India, networks. to conjunction millimeter across of large from of positioned the wave proliferation XG are technologies We

rollouts have In through X with design and and optical ready a suppliers support beyond. our that and position partnered CMOS and currently silicon. nanometer win XXX-gig industry's are center network are pipeline We second only speed will XXX-gig production Tier we our equipment a drive in leading strong generation to strategic growth interconnect, PAMX ongoing XXXX high XG data X for

that We this next ongoing with do years. ramp progress center shipments are year two the data will to production deployments and for over so continue making late good the qualifications

robust addition, working closely to We all strong In center, optical and with the module terabit activity the markets. speeds. hyperscale market our a portfolio, industry's gigabit, performance and and significant increasing enterprise strategic very customers driving to requirements with gigabit, interconnect we address X.X across product beyond traction data OEM data XXX are entered designing XXXX transition XXX

new infrastructure. opportunities driven silicon that partner Wi-Fi, to but our we technology wireless innovation fiber the areas further expand by center momentum we customer is also our win and our by access believe vertically data Even navigate We ongoing as us are only where macro and have weakness relationships, optical we success. platform in secure enabling excited and not with content strengthening design strategic discipline, approach and extreme proven business fiscal demand are strong

expand also comprehensive opportunities portfolio. forward a our We’re product pending acquisition combined will looking the to which growth in Motion, for further Silicon

that, me Financial Officer the over to Litchfield, turn Officer. With Corporate now call and Strategy Steve let Chief Steve? our Chief

Steve Litchfield

XX% XX% QX the expectations quarter year-on-year. was in Broadband quarter the revenue Total down was sequentially million, versus down the Thank down our was but down XX% $XX was quarter. QX versus line million, and XX% for million, revenue year-on-year up down year-over-year. and XX% and revenue with $XXX.X in entering first X% you, $XX Kishore. Connectivity

growth had market year-on-year. market sequentially of XX% end of opportunity. million, infrastructure versus QX and as demand Our Infrastructure quarter solid revenue in up and result XX% prior strong a had growing $XX the

for margin was million of first in primarily was $XX Lastly, approximately between and gross and by GAAP our $X.X first GAAP of related the year-on-year. The the XX.X% XX% up QX, XX.X% driven gross revenue margin multimarket quarter non-GAAP and non-GAAP industrial revenue. amortization. sequentially were intangible and asset in million acquisition quarter flat delta and

operating equity First low Non-GAAP and were quarter QX stock $X.X were million million. of $X.X end and of assets million million. cash operating versus expense and purchased and QX expenses at XXXX million. $XX.X $XX.X margins compensation cash, of and and XX.X%. QX $X.X acquisition cash the GAAP of million, operating expenses $X.X XXXX QX, quarter combined, expense based integration operating exited including was was guidance flow Non-GAAP $X.X equivalents was generated and from short range. million, other intangible cost accruals $XX.X We based in million interest million with of million our approximately investments. during the interest of non-GAAP activities for in was In up amortization term QX $XXX GAAP performance other and $XXX

from was approximately quarter first days, shipment up previous to the XX for linearity. quarter outstanding due the sales days Our

times were to Our X.X we supply as gross our tightly levels. monitor inventory continue turns

financial discussion concludes results. QX of the This our

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

SAMR close. approval the a through confident We and continue progress of to process mid-XXXX remain

very technology to together and XXXX to bringing million QX quarter be focused cost our actively soon. the about committed have working look second guidance capital. debt currently to to We optimize our $XXX our are With for fully expect for the We for expected We're forward revenue turn XXXX. the structure our of and combined that, cultures opportunities business for $XXX of financing let's the to excited and between transaction lower million.

products revenues be increase for Looking as at are broadband QX In compared we by to QX infrastructure, market, down with be our and connectivity to expecting end expect to revenue quarter-over-quarter. we strong. demand continues

to revenue quarter-over-quarter. be multimarket industrial our expect we down Lastly,

to market term be margin to of Gross by second near XX.X% approximately XX.X% expect profit GAAP and gross revenue. be mix. the of We is margin XX.X% and XX.X% the to end gross profit non-GAAP in being range driven of customer quarter combination product, and margin

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

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

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

be our expect $X non-GAAP and interest to expense QX million. other roughly each and GAAP We

of $XX.X We to GAAP share $XX.X expect and our count million diluted QX non-GAAP million.

are we heading solid execution maximize to and offerings environment into closing, business continued success. navigating us But with product innovative enabling strategic opportunities a QX. dynamic are In in

fiber important groundwork to throughout infrastructure are year We we continuing gateways wireless expect growth in that XXXX. access to later our this and broadband Wi-Fi, and lay drive

will open we operational as questions. discipline always, that, plan the continue for and up exciting focus future. With value fiscal like for today on optimize efficiencies, for we'd call and As to we shareholder Operator? to an

Operator

comes Our Instructions] with [Operator Quinn first Bolton Company. the Needham from line & question of

Quinn Bolton

is revenues even year? quarter, end just effect, you in second broadband as XX% in the inventory for a in or you guess other is the you see is of could it think down do decline June question at a is guide the sequentially. you the Obviously, follow-up I connectivity given it look do quarter, of in of lower think half the channel, And guess affecting the June magnitude I the the markets? second the over amount a bottom tough largely

Steve Litchfield

inventory markets, all and end the that but other connectivity definitely are pieces I connectivity broadband are end across look, of biggest is would So and bits in the have. mean, but markets definitely our there's the here biggest thought the channel, say, half of would exposures in had knew the broadband I we able piece. there Look, I originally year. get first of think the we into going would it there -- in thought we through the that inventory we was to quarter, I we be kind and

we I remain is to we this think end that up think assuming a of XXXX confident but outlook. the that into demand of of great we with and see And the this then through we hold second really of we burn work kind into good. as the inventory kind continues through move year point, bleeding this half that kind reasonably at I

Quinn Bolton

of June in you clearance levels consumption think inventory or is inventory of peak in that too at just that QX, greatest not do you knowing call? is burn back be Do level you your might hard kind to the think at QX is the its that

Steve Litchfield

mean think to under-shipping I future is But into we're demand optimistic. remain higher than levels and I I definitely I mean, out we we look, get had guiding at don't the think inventory quarters. want I anticipated.

Quinn Bolton

or that, it's But you on that I business know are XXXX. then to QX the as 'XX from like was business, you not I start QX first that guess constrained you're shipping what had later an that backlog, to question microwave overhang that just and availability or market, through in driving which you next? in early said against infrastructure with that sells strong inventory this that creating have a wireless pretty substrate this inventory half concerned seems you creating visibility in end follow-up very build have do good results. just overhang you and ship just you're inventory isn't And actually a year, an deal

Steve Litchfield

playing been catch-up. here yes, So I been but increase But that's we've guess big reiterate, happening. behind would a definitely, there's we've I content

We're, this demand has and don't, big been of and some customers. feel sure infrastructure of like This means, Definitely, the market. guess, many is seen time. others needed creating key market the by cognizant we're QX. glut inventory in So wireless QX overall the those I'm for I any in slowdowns I that some some in of you have

watching we're in expect we But see closely. QX, QX. again results to So that we up great pick do had in that

Operator

from with Loop of question next Baruah Our comes the line Ananda Capital.

Ananda Baruah

if seeing Two pricing quick follow-up. a what do real wise quick. And of can as just are take What I you you're those off I you forward anything from just piggybacking expect pricing Steve, seeing have and place right then going could, now now? questions.

Steve Litchfield

prices that markets in there's any I that Asia don't are sensitive we've it, mean hold there's too up general, think prices. some I more think, we doubt. mean I that to of certain definitely segments seen our like I are market think based. will I call here. more, feel don't But much. there's

most of our dynamic Wi-Fi there. pricing you Some rule, our see a But know, pricing markets as of general the time to example, don't products, as from have pressure there. for time we

Ananda Baruah

the is it And you're parts little the the the And market. that to is or just parts it quick on infrastructure detail, dynamics particular of particular is unpack is a in growth? business line, in the there just line? the drive you business, Can follow-up the the across seeing product across that product of more

Steve Litchfield

some of Kishore think I this. through mean of talked kind I

in say piece of uptick mentioned one I'd we're and lot mean alongside there but transceiver It's has the the geographies. just that's in shipping content a it's really product the I mean, I lot backhaul. the it's increase I So not biggest in of driving big various been geography, modems, a the regions. various now

but mean, falls early as shipping. still that. its is category in XXXX. see We to contribution into on days to platform continued as the lower infrastructure XG definitely also contribution It's Optical, Our dollar well. improve know, I you expect would but more

Ananda Baruah

had Meta that's a last early is a may part Is positive positive to have remarks And there's going they this seeing too what's in and positive it had well? And what it right impact good of for as there. remarks going night. sense Google to too on quarter. is or now, you're me. early it there be hyperscale, Microsoft with if have a

Steve Litchfield

optical us. Well, is I all We're I this the incremental don't is new clearly, think excited. ramps. there business center mean, for -- data product demand what's driving these

see the And so we'll year still some early really of half I days. early it's XXXX. revenues more about in second I much mean, the think but

Operator

comes next Ross of Our Bank. from with question Seymore the line Deutsche

Ross Seymore

idea true in out XX%, year like were whenever segment we looks ago back normal? Any that, to you closer quarter going if when I your something $XX to segment. judge the kind inventory broadband know, if XX% year-over-year. that landing it's equation, judge the of be realistic shipping demand could $XX you're versus It don't is, a since Just don't know, like trying biggest of to what's down, what how should $XXX the million? being Just spot to get that to you back is million, I of, the million, a end

Steve Litchfield

well below is year, I on that $XXX Definitely, was as to this mean, approaching back XXXX, number it's call. million. a Look, we tough this one $XXX reflect million.

there have there, this I We're don't a don't of one But for want we're other is say, have out et than But answer an cetera. with But mean two kind in We by the like great bottoming what feel hopefully, in numbers. it's visibility those the I you. I channel. middle of number a to guide So quarter, at regard got definitely exact to point. somewhere I getting out don't segment I little inventory better here.

Ross Seymore

to And then the I over pivoting things. side OpEx of guess

trajectory, through of year? then of is like did second it how gone and kind about going in guys in sort a a think You how first quarter quarter. the OpEx should of the great up the it think why in It's we Any quarter. second the bit you job up little

Steve Litchfield

dollars we quite NRE in we and our the some bit. see dollars come to always of that forget, don't this QX, coming we typically timing of this things that QX. have little are We've pick So of bit, a but down a kind skewed you'll some -- in that operating sway here in post been down back because have our up think overall very expenses, of busy actually I some there, costs, really dialing kind dialing continue do see QX NRE of our

of closer the OpEx. we year million I think likely to $XX exit will

there. I dialed in revenue past, progress headwinds think back we quickly given Definitely and good that So the see, during jumped we've as us spending in that do cycles. you've we've past the kind of made seen really

Ross Seymore

one quick follow-up. And then

in Just the in talked sort competitive given in you little bit weakness share but any have the market of change shifts, about just general, kind intensity? market, inventory just pricing, a earlier intensity is the of You where seen competitive is bottom is to or the cyclical and you where this out until the typical everybody changing, downturn figure there? burn get trying any

Kishore Seendripu

give a I'll think here. Steve I break

burns And in today, positioning of competitive at we're So three changes two every and new or positioning we are In one not no or if competitors the in market you has horizon. not all, changed. in that are. really think we back pretty until inventory the burn, the markets have advantages you the inventory are in the excess dynamics and markets we sticky, of are that incumbency the about channel those

product X-nanometer in competitive optical offerings PON, see our middle the exciting areas, change. none announced as well. of fiber product the quality of an whether through And of it's year. We've and the to a these across wireless the is got be whether it's of got product bit. a center all quite innovations we our data positioning new importantly, relative more we've products will don't infrastructure we Obviously, But positive product infrastructure, improving offering So as lot and go strengthening Wi-Fi. this the

So no changes.

just color wait through So I rate, natural broadband. run about, you just the add asked to inventory about the is burn to a the little this Steve have channel. we to out want talked what what

there, takes you to I years don't look want the last it number. about be is, you if think us revenues, to maybe at the inertia broadband the and because at just giving year's it, But years I way right? previous it of I two indicator last two system, future the the Here, right? specific therefore, in get that's back -- any look of are, way so the a what look like. that's revenues That's -- positive the So actually, fact, could

portfolio So done announced all, as been exciting the wouldn't always being in work it at we've down look that's as forward. announced record. developed actually, at which tough move in I a and rich got we've we to statement product a is be -- time, and has And profusely continue a All will track our all. most be

Operator

question with Svanberg line of comes the from Stifel. Tore Our next

Tore Svanberg

a broadband of Obviously, actually side we get correcting has been the the this But like connectivity already. it more started quarter, business. If a on bit connectivity looks could this just little granular QX. correcting year for

other similar to of reasons if trajectory that's not wondering be broadband that have Just wouldn't or going necessarily why why sort case? a the or as

Steve Litchfield

As tremendous seen product this line to is us. we've growth. you really of know, amount And a important

attached. seeing we're think, a one, more I lot

is all So new this business.

equation. little the gateway bit of a the So side different than

the into to both of mean, see decline. selling not being said, That I level would I same So gateways. expect they're

move kind those in to to We And where bit There's some of of we're there router in there coming in were impacted. seasonality large some little QX QX. QX down QX is a expected degree. some a There's as dynamic shipments and there. had big from so

going we can trajectory see a that way. we we So once Wi-Fi I longer get more to in increases ASPs And got more XE. or you and And then continue start mean, term, go attachment along there's upwards move also just out of lot definitely moving think get. to forget, as get a X, WiFi up that's to the ASP you've I outpace, is a that don't

Tore Svanberg

this you the better add are more you're questions sense there. you little are inventory having to when of they of that's on any you bit about And out were bottoming? where signs that answering Can one that? things amount broadband giving mentioned you're correction just based on with have a Is you starting for that the conversations your the a customers

Steve Litchfield

XX-week our look, mean of in this plus is I interesting anyway. semiconductor right? we've I cycle, been -- mean, times seen Well, it's an careers lead not most

And seeing you're as a well, drove there's bad unique, was think it of markets typical been over lot cross ordering. somewhat And of short. a where there's lot of where your behavior and so we're because lot currency that I a still

that to transparency degree information. kind they more And proper aren't so now the because and of more have think lot getting do customers some really giving customers, coming I And inventory, with a now clean they're information. we're appropriate sharing

feel we at that got a point. better better little this visibility So bit we've

Tore Svanberg

than question it's of last it business, Kishore. much one out taken expected. some would you design win I XXX on high optical Just strong gig. there's seem does like there, longer OFC, coming for especially finally the momentum But speed Kishore, have know

was more finally the meaningfully start to that, on especially business actually just may to this I elaborate more year. bit little that confidence contribute revenues could a hoping level So you later that,

Kishore Seendripu

excited. very we're Well,

four And you've the a demonstrations announcements on solution. OEMs had design number data with we line center supplied Obviously, work the three and OEMs the with seen up the the of players centers. to OFC, Tier lowest wins. only design turn and to data wins there, of X of very our in or strong we solution who’s integrated power, PAMX in it’s had XXX-gig X-nanometer, most meaningful As X-nanometer it, back our we out

and end And to have the they their -- key already some self cycle the of sample now gone have centers gone interrupts. of towards data own the their up we OEMs our qual through year. So through, should they for finish

gain as we we position feel some share gig to very will rolls market XXX in be a significant so that out. very, good And

realize that in the in to leading behind PAMX is that and starting the deployment that, XXX-gig are as have on are first we are it not we You that effort.

be that following feel beyond and year this the it next and trajectory have following year. pretty that, year for of this half the year, we second amounts would So in we strongly ramps that the shipments the which would qual the and of

really So good. feel really,

I think maker are what go to pretty is It's is OE you we really X call, optical, into I have good I somebody are. where much today, Tier be that today us with. about product work asked of worthy and you you module has we the actually feel And think would the most it to exciting as said.

So good I that's about how feel it.

Operator

Our from Company. with the next of David question Williams Benchmark comes line

David Williams

the is Maybe, hear and driven in about you from of there kind inventory maybe service and slowing there. cadence feel Steve, between that demand? sounds slower a maybe of thinking not maybe of on least a those cycle? seeing really you some do talk like dynamics dynamics. to providers spending more starting the Is -- about like It -- just of by this some we're digestion inventory you're and of at the just of that kind operators and demand most Can inventory

Steve Litchfield

to guess it us seen bigger mean, about we're I the think something this the we're just we that mean naturally I But way date, closely. we the I see now we've got really closely. for CapEx is issue continue something that to much. levels that inventory I is, change is watch. in the it watching It's haven't To right channel. that watching

on and in a that continue. that up. hold I that hold change recession, expect we a then demand assumption little the pullback upgrade is a yes, if spending, think based to that But see our we up, see do bit. see spending is levels major if there we cycle really And in that's demand does does going on an could

David Williams

side, products this in then And MaxLinear are that is or peripheral this uptake? channel slowing that some the maybe is of more there just out product maybe are the inventory the from

Kishore Seendripu

and service the are specific OEMs especially as we to the in, suppliers. specific markets the suppliers assigned are specific In well markets with chip provider

we talk platform certain chip solutions. right, our So of when you levels, with inventory sell of we associated because suppliers, own full are

we will there platforms, not components channel. our in But are the determinants think on the building manufacturers. in inventory way the Now other do up be that the from those is minor

So because sold is all all, situation our inventory to the in product more. we be here competitive where see don't competitive a held being

think I our inventory we'll through so shipments. happens, resume sell-through able as burn we to the and be should the And

You place also have no keep the in hurry as supply manufacturing in that own in where times have in orders give would to our mind lead other OEMs they are base, go the the directions or visibility. the any customers, us now shrunk to any

So a rates overcorrection say bit there interest and on direction I the in of the an will would other as be well. given inventory the

planning inventory I to So think think going So now. right normal to up inventory you're are that see we I unusually for lower levels, right? levels before it picks

David Williams

one quick for more me. one And

nice it thinking about? we getting or Just, be Can the anything else is the downside there, the Steve, margin, underlying guidance. on simply lift there mix quarter, on you the margin should gross talk even a what's about into that just driving is there revenue

Steve Litchfield

Well, points we're of gets it see -- I the think majority up is XX. you saw to us us our pleased think to another so up guidance come mix and of I of -- our XX kind midpoint basis

the power. as progress supply into pricing more as a So that rest year we tightness into Look, optimistic look even of little have front. I'm XXXX I this making we'll think bit eases, on nice and

continue that see structure gross and think And to can lower we so margins. better cost that we

Operator

comes Our Rolland from Christopher the next of with question line SIG.

Christopher Rolland

just if force said in Perhaps particular. down. rank of for I would perhaps next I connectivity be should year the even the quarter segments, the was than quarter whether but rest, three we the next you wondering that to are could the for down, them be you all for going the know stronger have

Steve Litchfield

little I that industrial business, Chris, up broadband flat more you. businesses, them I and I be we will to see a know, rank think, next on connectivity mean, pressure our we for definitely continue quarter multimarket don't infrastructure I stack slightly down. then mean, can is to the and the

Christopher Rolland

And for of wondering India, you inflection infra feels is then part but was this either it like from you like see. an great in one mentioned this really XG Why it of particular? I guys guys standpoint, on kind one this particular, guys, I inflection know in quarter to inflection vendor which like a why in the standpoint, all are a vendor from geographic why attached India quarter? is inflection you and or to

Steve Litchfield

driving remarks it, diverse mean, set been increase not transceivers a geographies but -- it's of it's I forget. as big to is a we've selling so It's start XG increasing that ship business got of a a is don't previous alongside definitely of our of the our The business for Chris, numbers. would I emphasize been of it's smaller content we've more XG. there's right? we mean, while. backhaul, that I I base backhaul the wide also a a the part in pretty into has big -- modem. mentioned

and So that to. that outpace that, seeing you of overall that us suspect growth market the are course, comparing us enables helps and I to

Operator

question Ackerman next comes Paribas. BNP with from Our Karl of the line

Karl Ackerman

XE your that there would going through would be the business, are Two, few next X trajectory higher and also higher? that give if connectivity talk MSOs about you I as broadening of them Wi-Fi you over still cable mean differentiation helpful. intensity phase. I drive very growth would sweating of think quarters sort Wi-Fi about content and could customers the may. your adoption if of digestion your discussions of connectivity and But is In assets the

Kishore Seendripu

significant router Well, the even part obviously, traction as our attached gateways. third developing a in party of the we're connectivity business is business,

Wi-Fi attachment. from content in operator current markets, be dollars. don't have we platforms, where, shipping the And where growth in connectivity But Wi-Fi And are wearing So growth big content X is leg for terms our cable some other in Tier Wi-Fi segment. is next which markets really they're example, of significant Wi-Fi in docs expansion our proliferating for be with comes have attachments. of that our will X will we big the launch, the the XE don't we

have we operator attached X with I our XE family that big is X part operator deployments through understand through of the E X the X, Wi-Fi in the increase So X solution of But Tier the come the whatever as our to in today growth platforms. in Wi-Fi comes and Tier in you hope markets Wi-Fi our markets. going already WAVXXX growth expanding part Wi-Fi the are and

Karl Ackerman

that If to DSP most or pivot your you mentioned your business. I your of opportunity. Kishore, business could that's optimistic areas one of

impeding I has has DSP cloud address much And providers so I'm and whether with the course, both drive curious drives design on plug a could. optical of discussions linear all? question, roles you be you you cases I there them. XXX-gig use using But qualifications DSP. XXX able do if at digestion current module accelerated versus linear of your on see of would, been solution. But of guess occurring And that debate transceivers to DSP your your in address your as the

Kishore Seendripu

money Let's separate the one the the of is because people the latter on. questions, flavor two bet is what their and former those day

from primarily solution have the really So on is traction to anybody our side a former DSP is basically, right? design superior else’s. the that We

significant on silicon we the are lead a first We competition. have We production. X-nanometer believe

not traction With all. momentum. the where data regards these inventory to DSPs No, So the our the our at of that's is. burning accelerating center for in

In case, we is the we business, high. impact inventory much in see learned not that. we'd In the this own fact, a that channel also that significantly since of have particular didn't

now XXX-gig per with channels. win are The over converging XXX design four each towards traction per almost all inventory eight of independent in real our solutions what gig the the lambda that space lambda XXX -- So centers fiber on the for channel gig is. -- is data

So to with the got do nothing situation traction. inventory our has

really linear doesn't versus with betting the part, a that on going going -- think come that. second strategies is OFC is happen. mortality, really that's a to this anything really of their discussion I it to really, And And it's to it if conference. data the -- driver take maturity, couple the face for any not And are it's if center recent generations really is people infant not premature. happen, On really very the

I that. at would So it leave

Operator

the question Wells McCurry Ashley from Our next comes of line with Fargo.

Ashley McCurry

Ashley Mobley This Fargo. for McCurry is Wells Gary at on

wider the uncertainty are usual. mix guide that? product of like any not, gross Is if a XQ that what First question drivers your it looks is for being, in representative than margin of or little

Steve Litchfield

I no, So don't think so.

look, in the right On of gross now. margin side, world uncertainty mean, there's plenty the I

the We far higher go So product I the gross primarily kind as infrastructure of mix. driven kind as gross of by goes, is won't line. there. holding margin to see well But it margin midpoint, do continue that up very

we we'll to see quarter. saw that similar to last what And so an do we confident improvement continue feel

Ashley McCurry

is gives any as then visibility guys give you the follow-up approval terms 'XX a comfort in have Do guys SIMO any close? comments [indiscernible] that you year SAMR’s And that into mid-calendar process? there in of can qualitative acquisition. And you just

Kishore Seendripu

lot have our of of I So to remarks. remain confident this kind kind prepared add, track. whole don't in on we I a reviewed

update SAMR are that. I on think soon And moving things we as you expected can front. the on hopefully,

Operator

Suji Capital. question with Desilva line next the from Our comes ROTH of

Suji Desilva

if curious if would terms X to versus XE of from X the already what cut I'm expect has, Wi-Fi unit XE? you not, be? or would timing attaches unit in units of over when attaches if have And it cut the over the

Kishore Seendripu

the is X versus the interim firstly, between really from is market wants beating to And the happened. the X. standard X throughput. really XE Wi-Fi has an difference So XE on going not enhance XE what Wi-Fi cutover to

continue X cutover don't stays I will XE there's designed it over. and Wi-Fi so takes X And to be going XE, to been place in think whatever a from has X in, until

most adoption of one think any Wi-Fi of in is Wi-Fi adoption rapid I the history. broadest biggest, X standard and recent

Wi-Fi test test Alliance, pick the for they is their is based markets, end of going the in adoption the by expect will the of But to five I And ready in XXXX. at speed the at interop example, So which if Wi-Fi which the year. the which itself by through going rapidity happen the will at the those. four on to interoperability to on, they'll nonconsumer platforms, Alliance bed or Wi-Fi I pick to and rate be really X go go were

latter So and Wi-Fi hope from really, process half answers I starting that XE cutover of question. a to it's your X XXXX X.

Suji Desilva

inventory if inventory, this And it's down inventory pushed planning out be are just then talked deduction wondering I upgrades were so happening to more mean, your broadly, that a they we're to as they're being older that as platforms is can to the that it parts the I'm rolled you well or just that platforms happening, are what is work out, be just just digest lot. going being have? ordered because trying about

Kishore Seendripu

or these we pretty the is happen in don't are changes cycle platform In markets long. frequently the

inventory of or well cycles. the within dose planning burn So digestion is timing the these

So that, going believe Having think said platform on happening new are even customers by I in don't OpEx plans there's any do process. some form through our I development their and changes discipline providers service carriers.

older the surprised XX-gigabit operators be on invested anticipated. X.X DOCSIS investments, at network seeing be to not to and will But upgrade also on than PON is more And I the for X.X. PON upgrading this side, CapEx in rollout a So to to originally on itself from I slower newer preparation it's you're fiber support network example, the the not DOCSIS backing if for moment, infrastructure think gigabit the networks. able off networks

of now and carriers network focus the and operators that's the that on right think the upgrading robustly. is the I going infrastructure quite So

see not channel the any out accumulation do platforms. pushing we of launches short, new impact in in product So of this inventory

Operator

hand to Kishore closing There Seendripu for back the questions remarks. more queue. call the are no in I'd like to

Kishore Seendripu

operator. Well, thank you,

Sector next on Conference be at will the Boston in. conference participating Stifel be we June quarter, Xth, in This will Cross participating Insight the that's

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

Operator

gentlemen, your conclude teleconference. and today's does Thank Ladies this for you participation.

this and have lines disconnect You time, may at your a wonderful day.

MaxLinear (MXL) 26 Apr 232023 Q1 Earnings call transcript