MaxLinear (MXL) 26 Jul 232023 Q2 Earnings call transcript

Company Profile

Participants

Leslie Green	Investor Relations
Kishore Seendripu	Chief Executive Officer
Steven Litchfield	Chief Financial Officer and Chief Corporate Strategy Officer
Quinn Bolton	Needham & Company
Karl Ackerman	BNP Paribas
Ross Seymore	Deutsche Bank
David Williams	The Benchmark Company, LLC
Tore Svanberg	Stifel Financial Corp.
Gary Mobley	Wells Fargo Securities LLC
Suji Desilva	ROTH MKM
Richard Shannon	Craig-Hallum Capital Group LLC
Christopher Rolland	Susquehanna International Group, LLP
Alek Valero	Loop Capital Markets

Call transcript

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Operator

Hello, and welcome to the MaxLinear Second Quarter 2023 Earnings Conference Call and Webcast. [Operator Instructions] A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded.

It’s now my pleasure to turn the call over to your host, Leslie Green, Investor Relations. Please go ahead, Leslie.

Leslie Green

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

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

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

to certain export relationships our with related uncertainties, of government retain failure of excess our manage products negative the These forward-looking downturn a including demand level nature revenue, inflation; to of cyclical statements our risks of global our the a impact and involve or ability or inventory indebtedness, from and our customers; to from expected of high obtain economic semiconductor substantial certain including our the on of for parties. third or products; impacts authorization technology; competition, impacts and to to current sustain ability risks industry; increased

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

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

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

to in financial Non-GAAP or financial GAAP measures meant discussed the as comparable not measures. are isolation be considered substitute for today a

information, as because be management how it believes to measures We this business. useful are investors management to providing our it reflects

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

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

Kishore Seendripu

were was afternoon, QX, and margin $XXX.X gross at revenues you, non-GAAP In XX%. Leslie, our strong and Thank good everyone. million

XG Our sequential cash strongest infrastructure activities from growth operating to year-on-year was non-GAAP with $XX.X XX% X% operating recording and continuing QX, came in margin driver. In the flow highlight, at was wireless the XX.X%, be million. backhaul and

multiband contribution RF deployments silicon the to millimeter revenue business. per wireless for a backhaul a In offer content infrastructure, wireless In record modem platform, particular, us products. double and microwave QX and wireless of allowing are marked and backhaul radios wave hybrid transceiver

geographies to suppliers X wave and millimeter We support across Tier ongoing expanding rollouts. network equipment rollout are are technologies positioned of with the currently very to from partnered well XG benefit large several

the increasing AI a customer meaningful activity CMOS solutions in of interconnects high our design base. scale broader for is ongoing adoption is and the In optical The growth XXX-gigabit optical X-nanometer driving our speed cloud Keystone the XXX-gigabit and for of win supplier PAMX adoption of datacenter accelerating AI need solution.

silicon. production-ready X-nanometer the back first strategically PAMX in XXXX. year, to ongoing DSP are design volumes activity ramps customer, small with call to throughout half win the industry’s this expect pipeline, our We ship it, positioned XXX-gigabit we Based of CMOS on XXX-gigabit and leading and volume

QX, owing the industrial ongoing continue and leading in to solid access, to multi-markets processor inventories In our downturn. system challenging be with and broadband integrated fiber challenged we customer expected, continue connectivity excess cyclical the solution. chip traction XX-gigabit broadband Despite and access, market single to as gateway have our market semiconductor industry PON

to to due integrated access access the designs show breadth a to revenue of connectivity and baseline strong continue continues and technologies. growth PON Our off win modest we our new

DSL as We expect PON legacy technologies migrates to the to see a from cycle XX-gigabit for solutions older industry our PON. and multiyear growth

design we WiFiX though, family is that connectivity, to our and growth our has In the rates the previous believe ASP WaveXXX significant we and potential tri-band solution cycle are exciting product attach the WiFiX, early generations. chip drive gateways. for first higher and access over only in points single industry’s WaveXXX targeting

starting XXXX. in product expect ramp platforms multiple We to WaveXXX across

announced connectivity PHYs in new X-port Enterprise Ethernet market. we switch PHY the In the solutions our also for Computex X.X-gigabit X.X-gigabit our at X-port X-port our Ethernet portfolio Taiwan, and switch SMB Ethernet for and market,

While this and industry’s significant enabling or enhancement cost superior by to unique Ethernet consumption. cabling the existing with CatFi and from new power performance X-gigabit X.X-gigabit structure offering are product transition [ph] family, we

market In ramp we and near-term the XXXX, to half of activity, Owing in groundwork. critical MaxLinear the laying to pull expect the XXXX. strong design revenue begin challenging the environment, despite is positive in customer first

and For high WiFi and spanning relationship connectivity, technology with wireless interconnect innovation Ethernet, win activity, fiber and future infrastructure enterprise building, markets. optical broadband, datacenter speed growth customer design

We ramp both increase expand our we our strategic XXXX disciplined these robust and across and expect throughout and are in initiatives customer will platforms. proven content driving Our believe our market beginning our initiatives activities growth design that XXXX. late share win to silicon successful opportunities new revenue all markets

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

Steven Litchfield

down XX% revenue in year-over-year. QX Broadband the and sequentially XX% year-over-year. down XX% quarter and Thank revenue Total was and down you, XX% down Kishore. Connectivity quarter second million, revenue million, million, XX% was down year-over-year. $XXX.X $XX XX% the for versus QX $XX down was versus

a QX of million, and had year-over-year. X% and continued as quarter and XX% market grow infrastructure up $XX demand to prior Infrastructure result Our of versus opportunity. revenue the end in solid market growing

our XX% QX, year-over-year. Lastly, sequentially and million and in $XX multimarket down XX% industrial revenue was

GAAP asset margins and primarily $X.X non-GAAP acquisition-related second by approximately quarter margin for between the was of gross the quarter XX% and delta were gross The second of driven revenue. million intangible amortization. and non-GAAP XX.X% GAAP in

$XXX.X GAAP compensation performance-based Second expenses cost of quarter operating $XX.X acquisition integration accruals and million. of including and million, and equity million $X.X combined stock-based were

the million in above guidance non-GAAP slightly XXXX were Non-GAAP expenses operating Both was million. versus up other the income and GAAP of operating our and midpoint QX Non-GAAP $XX.X and QX for $X.X range. QX margin $X.X XX.X%. quarter during interest million, was

In equivalents in activities operating investments. QX, and generated short-term million. cash, flow with was We $XX.X $XXX million cash of cash exited from QX approximately XXXX

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

inventory were QX turns results. the down QX concludes Our This times our financial discussion from levels. of X.X gross

$XXX revenue With turn of that, be let’s to XXXX. the for million expect $XXX QX XXXX between to We million. and in our quarter third guidance currently

inventory down expect Looking to our our by quarter-over-quarter, product direct sitting four markets channel all rationalization with we at of end of driven both and be customers. QX by continued market, end

market XX.X% We to to in be XX% unit profit revenue. and gross third mix. XX% near-term margin the customer and being driven product, and end to to of non-GAAP combination GAAP the Gross stable, by volumes despite expect quarter approximately XX.X% margin gross range lower with be margin of be profit of continues range

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

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

we expect to tax and benefit tax approximately zero. QX, expect to GAAP our negligible For non-GAAP be record a provision we

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

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

address today our Before the like previously release with announced Q&A, press moving I’d issued we to Motion. earlier regarding briefly Silicon transaction to

saw time, on press we and to today merger Please contractual quarterly our we not note detail you will agreement. any be results. call exercised from do to focused further As on this that the matter our our share release, our intend at this terminate right have

important a will on that dynamic recovers. In as market the continue environment laying applications strategic in growth and to closing, our navigate groundwork we drive QX, but

infrastructure quarters. coming solid Our WiFi, broadband gateways, wireless fiber and the well access in us positioning to in and is execution innovation product opportunities revenue compelling capture

will for we continue and discipline, on our always, strong and today exciting operational future. As optimize an efficiency, fiscal we focus value for as plan shareholder

With for Operator? up the that, questions. to I’d like open call

Operator

be I’ll & a [Operator Our today is And, conducting Instructions] Thank from Needham from Quinn first Bolton session. coming question-and-answer Company. you. question

line now Your live. is

Quinn Bolton

of think to be were a And, Hey, was obviously September XX kind for how Obviously, I to, lot you I than a going what shallower lower core quarter ago, of what inventory companies environment guess, in much much of semiconductors bottom the guess, potential just this guys. thinking of sense, business. think, you you for dynamic I are to in some coming in Can It’s here some just that correction? is it larger. from much to over makes low But, XXXX very reported is XXXX date. heard shipments levels? We’ve the as the and have at continued that the How come that other thought – days the ago. XX things lower you’re near-term, of seem give quarter. a it revenues orders that kind have us I a get

us any sense what systems think of are folks? would true give So your be you if can right for helpful you consumption now,

Kishore Seendripu

here. I’ll Yeah, jump in Quinn,

we So talked about previous you’re our in call. I earnings right, think, this

we that’s expected. It’s in into out, that half. pushed level originally had what a think than we year. through move of the out still QX, I in bottoming think definitely first I be thought feel inventory good the pretty playing I at we half lower albeit mean, it’d had we the a would the second

not I and level been we’ve We’ve side tremendous Frankly, backlog. the think had in decent environment. amount a the backlog bookings, all on it’s long navigate mean, really year that the seen I visibility of booking challenge. to has hard of

primary is of from out inventory bigger standpoint. a But demand booking decline QX there. last think there to some connectivity more anticipated I on that’s I that little true, is just softness a talked so the mean, I sitting there’s mean, side, generally still probably up, about holding the driver I that’s about that overall an still uncertainty the here side lots extent than strictly of and in out broadband in-demand there. And is, quarter

Quinn Bolton

like inventory if maybe bookings And, this mean, in-demand next is think a there you correction that guess, burn seem I the inventory of into I lingers low risk certainly first half risk this this year? strongly? doesn’t it’s recovering remain what’s

Steven Litchfield

across think mean, Well, the I industry asking think, – Yeah. I I we’re it’s that question. all

been we’ve demand. under-shipping think I

hasn’t demand see been robust – real we’re are. under-shipping, today, that remain at we same we levels that still the demand think, time, se. But per I the where

earlier recovery year? like think I don’t we’ve mean, about that some there in I I seen the I industrial industrial into little start different business you’ve get but a inventory year Different this this it does across off So that different from other half you’ve we to see peers watching So bleed kind we’re bit our cracks markets is than we’ve quick thought multimarket. have it going through as seen would. that’s although to sure. this of of feels up, seen going multimarket next we end the right? own broadband connectivity as we’re for times. first talked we’ve through burned within in holding mean, even QX, are and announced, it and industry, at closely, of mean,

Quinn Bolton

And Kishore. maybe one quick Understood. last for just

DSP? think AI more on to play ramp Thanks. I it second about, I like – it growth systems. growth mix? DSP hyperscalers? are ways for volumes the investors design modules, on talked Can side the half AI plays the of that XXX-gig multiple initial MaxLinear XXXX. potential on is wins you a optical it modules, half and Is say, at think, in looking Just the through has some sounds growing of and this the are trends in color mostly sort these You might on be of year some first any with obviously, Because, XXX-gig one

Kishore Seendripu

been Absolutely, the standing long you. there’s a of thank Quinn, company. investment

a X we And per We first have as and business now actually, actual missed we lambda. starting been the and PAMX years years here, XXX-gig with X-nanometer of but time That’s investing activity, for one have position have the development our solution. to the out and phase plus lead with our solution a now on compelling in almost XXX-gigabit X of are ago, very we PAMX product strategic respect in we competition. that a

categorize to we two buckets. that want I qualifications going through, the them So are in

demand activity large win folks the the are pretty players, interoped And OEMs makers, datacenter in and supply the and design are XXX-gigabit, design solutions. There’s out have get a much pipeline, we is these who enterprise in qualified other there activities we PAMX when major all XXX-gigabit and XXX-gig Who on and Firstly, we AI? of and for right? talk naturally, right, to especially for the as to module ones wins with well.

you it’s compelling the the the wins, really technology and XXX-gigabit firmware, the design PAMX track is footprint But because lead design values and identical very in software is the scalable. the and the and

are we design PAMX XXX-gig getting also So drag along wins.

interoperab is clear with mind is also calls XXX, makers – module equal module that XXX, You to keep is towards and and it the win itself. that datacenter OEM just is the folks. The in going which answer by the want the with design makers. of either the transition the XXX activity or The are to pipeline X

in have to that mind. you keep So

So the that frenetic is the are datacenter see initial PAMX breaking new expect performance this to now, a happening product level market, optical into the cloud we Until ramp market at XXXX there point, of the with volumes strategic we some legitimate with expected end entrant hoped throughout the At are compelling XXXX. where player offering. of and and we in a today, activity that expectation and is the right?

Quinn Bolton

Thank you, Kishore.

Operator

Thank you.

is Karl from today coming question Next BNP from Paribas. Ackerman

now live. is line Your

Karl Ackerman

questions, afternoon, Yes, may. thank you. Good if I gentlemen. Two

perhaps as bottoming next discuss the because this it third First, we’re trajectory ask, in quarter. how the could and down would interested I few flow the current quarter, perhaps you later. pay cycle was particularly presume in I capital? over hoping third Silicon have in to through fee working cash to working relates quarters you I’m whether Motion, I to would would breakup it be the

generation I quarters over Just capital And be next super have few would follow-up. terms a of any comments in helpful. the

Steven Litchfield

Yeah. Sure, Karl.

based the of all, So, us be in on press an would case release the filing first on based MAE, today, fee not earlier this and owed. break

flow So to cash cash generation, relatively I With regard that’s first the question. and capital think has been working good. flow

bit, doing I a a we operations I pulling inventory. job started coming to think up quarter, back, in still job good got quicker, down think front. see us We typical I’m little that that ago. this inventory days but cycle revenue couple so a on the of I team expect we’re of started couple mean, down down down you work Unfortunately, pretty down did I a is were a a next which would dialing good little that over quarters quarters. of the clearly think

product of We’ve the also restructuring I February, in the of years. lines. had up team I were tremendous back think into really of that good something And going that’s some has CapEx we we couple been CapEx, so at. these to and ramping year, spend coming really a some a we that the as luxury We done really job CapEx. over did the job done back back did we on dialed a guess,

a and and equipment we’ve in-house working of got lot already capable. So

can I we on think, cash operating actually flows. line the So, hold

generate we start this revenues, once going And cash bottoming the see we’ll more of out forward. to

Kishore Seendripu

to by and do an terminating acquisition any once process Just we deal and again, invoking fee. terms, the event clarify, breakup procedure not the by owe MAE

Karl Ackerman

I’m on guess, of you just troughed aspects we have Thank clearly that. That’s challenged others. about business, a as the think various clear. more or curious, than much ask outlook. follow-up could certainly question If some the I been for I your

better business. and most industrial business quite doing I the infrastructure connectivity until business doing think this recent quarter well, up much of broadband than the the

think Thank give And the bottoming in of risks infrastructure guess, a investors higher of just pieces visibility you. demand? business the about at on I industrial your [ph] process clarity the have how AV business the about level, and connectivity you bottoming the separately, speak perhaps process and different broadband we of would you then, the aspects a stability with business? that could if So, you of and/or some as your business think

Steven Litchfield

think, on, question. and of in hit spending Karl, remarks. Yeah, that his prepared lot on a I we’re great And time Kishore, absolutely, something it’s it

XXXX, As a been We’ve – been It’s It’s entity. we’ve traction. growth really this years. of as year. last The over year, a to we we look been X it’s infrastructure nice investment sizable X real next for look big time. initiatives for good We’ve us. becoming gotten big out have some opportunity lot a into big a we on you’re the seeing that working growth really

And so there. of you’ve some with infrastructure, already dynamics improvements as seen kick optical the the wireless starts to in,

the on good equation. So we of have outlook that side a really

us clearly, other there’s downturn, something growth product, like is business, a And, drivers. growth spoke example within also we’re to we in Ethernet no still WiFi, doubt. unique our a competing need a like company. the really Yes, and But that It’s a bit are in our and guys the our Marvell really a with And, innovative market cyclical X.X- being drivers a opportunity footprint. big I solutions big X-gig being little big and can we’ve a investments market, other Panther big got solution. products made. the I think, it’s market. a with some of in Broadcom about. think, spot storage there’s areas PON, those for great that coming in And expand the Kishore But our Ethernet against

Karl Ackerman

you. Thank

Steven Litchfield

Sure.

Operator

you. Thank

Bank. question today is from coming from Next Ross Deutsche Seymore

is line now Your live.

Ross Seymore

expected. I and at directionally everybody cyclical more is guide, this levels, confidence gives What to for it a significantly bit, down Thanks a highest not letting think that the I structural? of than guys. something be but is expected question. Hi, at quarter guess I ask this me third least worse you the

Kishore Seendripu

inventory event, cyclical big a argue channel. the right, buildup, very is could really Ross, event, that’s not is in a important question. one So, a gigantic huge A

look investments And really – that not own it some it a risk new sockets. those for really this so shifts that all their is there activities glean. are products, that customers The that are our structural can as Absolutely. we depletion investments? delaying delayed, process new is I are not – And us customers structural also is and because way that not get any masks shift, are at is for

how then So products the our every are if Infrastructure, then different. away investing about need system. we and thing And are new That’s basis. first the fewer, burn is Even in new watch on absorb, I is period, a already, we market in lot that annualized of for willing quite would are on area the say platforms? we $XXX that they right? million in customers to during headwinds inventory the just announced really products category much are major product infrastructure, quarter an with to

And for you got for then, optical switch pipeline – SMBs markets, products, and see size and we then accelerators Octal enterprise we’ve new of for that’s datacenter right? our have enterprise. X.X-gigabit products enterprise So can storage

growing, So the in got you bundle most of product the and can are infrastructure products are that corner. to that new it’s cycles continue expect

exciting very, So that’s very area. a

if also were happened interface industrial look big markets a we you investing very, bridges. growth done what is new Then, in products has that’s new It at us. that the very our of actually in for well industrial That’s launched. multi-markets, are product part

so. the fact, last X right, an or on XX% basis, us, years grew over for In annual probably

a come part area. huge access, connectivity, the growth So is attached And at to look of cable and that’s is it’s fiber. revenue our growing. you broadband a grown, then which and But it’s

on itself And the is significant attach for the starting fiber is cable growing by attach and on one. far is fiber The the just most us.

corner to that now, us right. cable the So of brings

right. structural cable? shifts happening on going some what’s in cable, So There are

and away of wireless guys, they’re direct for You database competing from is end wireless the cable by have the eaten seen subscribers subscribers access, the the that the for cable in lower providers being right.

they subscribers, So right. are losing

out the part and aggressively telcos second home. the then fiber to fiber is more more and that And the are laying that’s happening

the And cable size, growth content data of in through North quality to cumulative subscribers’ If a really, play, is WiFi By down a come the service is through platforms decrease there the come that volume because throughputs. And cable number yes, of more anything, to forecast, on going expect I and addressable not really is end especially happening in So, shift more increase of America. the the think, and as cable. on any structural cable cable becomes, high is cable a they in volume attached, the total increases. by actually. market is

Ross Seymore

X that limited the a guess, as to in you fourth Thank is Steve, One, for visibility significant is about quarter, that quarter you that you indeed as hope trough. I just you you third the expect or all you’re the trough quick so as Do growth do calling that color. follow-ups. tonight? willing said, the is mentioned much

Steven Litchfield

think mean, I things we’re rebound. always I conservative No, about these Yeah. how

a are. So, I my in be see. I think improvement mean, where We’ll would QX expectations modest

Ross Seymore

the And it you then change last, just the we non-GAAP is expenses GAAP know whether that significant or that of? aware for want to be there talk don’t guidance a or termination. you should basis clarification. have, legal I in any announcement deal quarter, OpEx be The on about the third the the

Steven Litchfield

spend mean, with that’ll in of Well, on the spending GAAP away in are was the mean, amount reduce we the basis, I – this portions quarter. of latter spend there I going decent QX a a definitely

Ross Seymore

Thank you.

Operator

Thank you.

Next Company. question Benchmark from Williams from today is coming David

now line Your is live.

David Williams

pieces just maintaining my in there’s if mix other moving But on and color more that Hey, Steve, for the thanks Maybe, I taking significant little margin good decline revenue if quite maybe on that or that should a can be a about. seeing afternoon, the are give we it’s how know side. you margin of question. there’s there curious side. if – you’re you just thinking terms any

Steven Litchfield

reasons for lower move gross kind margin I job gross question. the of held the for Yeah, there’s done on David, I good really that. I think the We’ve mean, look, a margins, the despite we’ve side multiple Yeah, revenues. the think, thanks on

connectivity in seeing little less I contribution. role favor. works playing think definitely a our you’re the as That infrastructure is contribution, more mix

on the cost supply chain, just a less seeing our the I pressure we’re bit up. easing little going of think

that’s So as helpful well.

is getting for we’re where well, WiFiX our And then, constantly to we’re products. for a even I as towards cost existing structure structure towards naturally, evidence getting there’s multiple working our to going chip. better working a single of always better examples product a products as mean, cost

David Williams

Kishore, color. a Thanks seeing this the give talked the opportunity for color, you a talk some Can time? other And AI you driving little and more in can about some maybe, the bit magnitude you that the little about it’s that have script versus to ongoing and trends of relative about activity? the maybe you’re maybe been for what AI

Kishore Seendripu

There’s on that by back. mean, I call massive in results right, Nvidia, we financial let’s it I really is data that let’s So riding Hoopla, think for by, the say excellent in big cloud rest infrastructure the towards processors. happening posted are excellent can honest and on really all area have that. we clear be results, that that’s And demand very it, spend posted results about safely really AI the spend a are

So Nvidia what maybe is leads through then and the into datacenters, that and right? the big driver

shortage product massive demand end massive And a there’s there’s a and supply. [ph] very per of big

there’s jockeying AI needs, these for OEM supplier So it all there makers needs. product are lot of put status for module the let’s a

very good part, performance the and get where very well of promising of other power bit is So a piece and very, in hopefully there performance strategically calls very pie. are are we quality things and the important. quite of And to the that last is go consumption the out a demand and having we to hope thick low and a

in As not the I’ve of optical market, before, said we AI it are or because anything.

communication signal high system DSP are any that from mixed and core any platform communication a PAMX a DSP the we the other to just manifestation network have We of RF scales frequency platform system, have.

We’re build to to in that long-term success really market marketplace. a that and latecomers hope we

ties question on stay infrastructure great, is ambition a larger in accelerates cloud on up lined are that’s sure the to we it make data And with AI successful that product that we’re it But awesome. talked trends. have lines the I to the that driving if So to it space. in here we Ross’s if

David Williams

you. Thank

Operator

Thank you.

from Next question coming Tore is Svanberg from Stifel.

live. line Your now is

Tore Svanberg

MaxLinear Yes. day have Interesting in Thank questions. few you. land. a I

into headed? I a you like think so for backlog. sounds because mean, you of they all, seeing have Are you potentially a lot came don’t accelerating? of quite extending bit orders, there, you you’re Could sort of a a any probably I First they that It means Are I that sense, year the give longer? some bottom. just of conviction with determine think are being obviously cancellations have in would Steve, how read QX those your cancellations.

Steven Litchfield

question. way guess Yeah, the I do I’d good still mean, very I the answer We have backlog.

with working still of times We’re lead much And waiting have on equation are lot lots fortunately, that so of back lead that’s and of guys of side customers the – uncertainty the times longer. the of down now. booking know also come plenty cases, the have short so kind and in so they’re in a waiting. they inventory they year, really And think think, customers, I are of half

ton most non-returnable of orders. say are I outs. And push problematic. wouldn’t seen been these non-cancelable, cancellations. a that’s that We’ve so certainly And orders of we’ve seen

So base certainly work of work in But cancellations. we with with them order on in most they’re dates. shipment our customer not kind cases to

Tore Svanberg

rate Sounds whole good. I And year. like broadband last moving it topic and run think almost your read dollar billion business, this on consumption $X.X to specifically about inventory, for versus

Now, next my looking XXX. quarter based we’re XXX, math, like on at maybe

obviously, pretty was like and right So, way seems it it’s depressed now. back it then inflated

be could real for the business? on run potentially that rate sort what of guesstimate any So,

Steven Litchfield

question. is obviously Yeah, the that big

Kishore think I bit wrestling earlier. a we’re that, little spoke with

come seen a have haven’t right pretty item haven’t I refurbishments play, and have for that’s visibility. But going there’s naturally Those certain it so tell market been mean We like we guys that great a relationships with big that back hard on is decent the to have build these the with into like in line our being up telcos, and things exactly in land. we going this where operators things said, that to now but we while. done years.

it. have so, think, pretty And of we understanding I a good

to diligently work that number of kind to continue to into at. lands going We’re what dig

are I the so strange and we some under of particularly we’re a seen bit more to time a getting confident, going on that inventory side we’ve time we’re through I lot been the think mean, take broadband and connectivity for that I has business. and it’s word, still know confident we out little there there’s shipping, sounds that and, think, of

Tore Svanberg

good. Sounds

know supposed position some we improve was transaction? I terminated obviously, Just last longer-term asset have talk but that se, in think one should that to for technology thinking infrastructure. you Kishore. How especially you SIMO about deal about to give the the strategically, Kishore, continue your per about can’t just you now to that storage

Kishore Seendripu

termination of talking starting that pretty really maker is the one. the Tier transaction for market. complex, that to enterprise I Number investing leading particular appliance have that accelerators have feel enterprise that’s do one been the storage about we The ship. X so we is and not player

expect next double that the X year business years. We to over grow and very strongly next

an that’s In pure enter we it the think, and the path enterprise fact of build we very into market, strong to play visibility organic and, market how the that’s the that’s I there. way because get

we our they and our deal, strategic the very dynamics have got, in of view those Motion how dynamics play technology the the On Silicon market. as different I and think, are

following our year up right. last innovative in entry we product Memory will won the accelerator And best the new category, in be – Summit, into our investments roadmap storage So our Flash technologies. at

on fast year another forward to our X million Tier single per revenue believe run business X a anywhere based that years, between should you $XX So, if $XX million I customer. accelerator just be do rates

the storage anything value So enterprise I don’t changed has on the market. on think thesis the of

Tore Svanberg

it. Got you. Thank

Kishore Seendripu

Yeah.

Operator

Thank you.

Mobley coming Fargo. Next question is from today Wells from Gary

now line live. Your is

Gary Mobley

see, question. wireless fix your per I sequential my to in in changes to whether guidance, your taking broadband reduction. just OpEx? presume that’s spoke maybe subscriber most new place loss for whatnot. $X variable you’re decrease million slower Thanks I some guys. structural $X taking expecting additions, million And access share from Hey, about of net, we that’s cable some and a

what it your structural OpEx So of to those sense based markets? of some make the does size to changes right larger on some point

Kishore Seendripu

off, join. then start why Steve, don’t I’ll you

Steven Litchfield

bigger the answer just I’ll Well, question.

we going were declines. to that quarter So we last see announced

We’re run million, the expecting to $XX closer year million rate. a exit to $XX

taken on again in the expect see just already and just rolling more would downturn. down improvements based year off earlier come normal just projects would based kind attrition I to well. next as the of action I year some some kind expect of we’ve industry XXXX OpEx on whole So in to there.

So on see the improvement the continued I I question. you portion cost of actually to, But, think, can Kishore, speak structure the side. broadband

Kishore Seendripu

market feel changes subscriber I the So, it’s base wireless to mentioned, clear fiber like Gary, constrained think multiple the deployments structural they’ll the to talking cable and the really It’s is siege cable primarily fixed from the I under pressure. access the that market. broadband feel continue that players, very, and very and, in the you

the right. On the DOCSIS side, to to cable response X.X, been has move

as a investment investment last at look and our the technology or right. terms of cycles from years are do these specific I our of not – about they us own So in WiFi cable bulk in X MaxLinear. points and largely so investment, new investments behind

from generally in think our go the really I in investment new been down industry’s and not growth likewise behind. the broadband come a going and pure increase from and is have access levels content X-year structurally of to investment borrowing ability is sector cable in a these But, of expectations fork revenues. that silicon So revenue to cycles compete the cable that bulk the cable

platform more it’s So revenue. a level

to this maintain post revenues hope We on a footprint our inventory burnout. basis

So you’re absolutely right.

have may deployment, is well. at cable cable in cable the are more I expenses be we the the of generations area it told for investment longer-lasting go down. us, and This significantly should and and of think looking for we market closely ourselves very one

Gary Mobley

and North the as to weak that recent about the as some year from I wireless infrastructure highlighted look from your players. of the infrastructure extent, the ask maybe wanted impact of I American some we balance spending color. guidance of is appreciate results what even business or larger To that impacting through some longer?

Kishore Seendripu

where rollouts So that’s growth come coming XG and dominant the really has backhaul – backhaul really wireless our is big of infrastructure from North America outside mostly China. mechanism and wireless

does impact. a slowdown affect it’s America not North pronounced but the So somewhat,

Having I that telcos investments somewhat. wireless also fiber rollouts will said et in get fiber general, that, am deployments, cetera, the impacted in they’re whether sure or

growing revenue exposure of don’t our starting that, to win are we smaller we market. off are share because and us, have and For revenue much we base particular the a area that design of

smaller overall the see are expectations as growth. on see we any because slowdown telco do be our won’t be the a carrier a fiber on don’t we wireless I there to happen slowdown market, So as base. But starting just impacted, a spend. ones We off the that

Gary Mobley

Thanks guys. again,

Operator

Thank you.

MKM. Desilva coming Suji is ROTH question from from Next

live. now is line Your

Suji Desilva

in opinion Since a get been have Hi, and this Kishore. just ask early with just earnings of Hi, a curious start there. your the through? level different question. want been feels through Steve. you you’re cycle you’ve high cycles, most I to versus I’m cycles to lot past cycle What big guys about

Kishore Seendripu

I actually my Well, this, really don’t it’s outcomes if through been peers two different cycles, will [ph] say similar like post hate you a say of know extent many excess phase. inventory but but a have where that, channel the of right, is we I the look comedown, and because how company XXXX. it’s of at say semiconductor to I will feels almost that. kind

Okay.

the that is macroeconomic difference sentiment. are only the conditions difference. the That’s not So same

transformations So semiconductor condition. have been we that gone in or related kind for demand been what eye. cycles been conditions the not have was to through the macro It’s of the public MaxLinear making through us,

to had the we through grow move and of So TAMs, through smaller and out broaden bigger we painful towards we of our the had where go as went revenues get will. cycles troughs, company, tried to and if we TAMs revenue you and to diversify

And going is of in public through right revenues. The itself sort $X feels to eyes. $X similar. us, to to your a to is for billion one transformation front transformation position happening again that once of now So company billion go this

or that trying public happened that’s Silicon Intel the datacenters. a Home They rarely was company with we in are you come across to So or unique Connected investments never it what it where with markets with be the in. organic born our all MaxLinear, assets acquisition from manifestation optical Motion, because very of what wireless it be are cycles to grow, did new infrastructure enter happened

as the things we went to So there that a trying doing. do fresh then compare are public, peer it company a to is not was

us. So our challenges are to unique

of demand of it So fear without look hope really that point issue from time. and that’s Maybe you’re the panic at but the experience my post-XXXX world. a that what’s macroeconomic your feels view, not like we answer, in how I that happening answers expecting terms I had the question. at

Suji Desilva

what risk that. sure so you expect, of wasn’t quite for sounding I this the ask Okay. tone-deaf, I’ll At ask thanks to question. to

You consider pursuit? guys are potential pursuing for leverage that acquisitions thoughts alternate pausing where versus the with demonstrated you I’m recent activity. you strong of the would what level and if in capacity of inorganic debt curious that

Steven Litchfield

Look, some the that. management very our We’ve ahead efforts product back also I will on very acquisitions areas industrial mean, excited company, in of us. a connectivity lot on interested done front, and of years, power of got lots the infrastructure over the front, acquisitive growth even and been We’ve like. we’ve we’re an get and we’re to and of the investing that on always and in good about certainly potential we organic the

the go sheet lot mean, every company. them afraid we opportunity so to the that evaluate do path. what’s that of good, based comes continue there. are certainly and balance we’ll the not is to value, increases long-term I down it opportunities how we pursue shareholder on we a our Look, of in interest way, So and

Suji Desilva

and the AI redesigning in quick? Can based rack on efforts? one have designs gen sneak versus that Or not AI Kishore, past seen have seen hyperscale guys I pausing you you phenomenon? real

Kishore Seendripu

adds like speeds the we such in – the increasing it Look, at, the I progression phenomenon. have But where and a look natural are as any far I not seems seen as products data rates and big dramatically will AI interconnects, inside interconnects I the of because data increase, think the footprint, number right. growth will really become driver TAM just center. same the inside that the the that

forecasts this the that’s a TAM we AI, datacenter think AI that than excitement were lot, just right. there’s without around built exploring. will suddenly now it ChatGPT seeing is need AI with of and always more the in was what I there. be lot It’s for sort

Suji Desilva

it, Thanks, guys. appreciate Kishore. I

Operator

you. Thank

Shannon Richard from is coming from today Craig-Hallum. question Next

Your line now live. is

Richard Shannon

for Thanks taking guys. Hi, questions. my

the worse. this one First get speaking bottoming of guess as to third love from quarter. to segments come there guess that. just do more just better And you’re see relatively sense Steve, for, you answer which there segments also, is, the manifest confidence process probably expecting I quarter, to you want what you here itself but are hear hopefully have then more fourth just tactically in a Thanks. in where the probably first. in can incrementally I I’d or I

Steven Litchfield

we we second markets. the as a business look year first about across see a half, moderation got end of really our little expect as that half mean, is end markets lumpier. to Look, in just the into little we’re And very do being as we recovery Yeah. XXXX, all expected, the But of down, I seeing with talked QX, strong each a of infrastructure. that

You’ll start in industrial to multi-market. see that

to it and going in broadband You’re connectivity. see

drivers growth with underlying some of wins got WiFi we’ve PON wins. or mean, I And, all it these, whether be

to that’s despite something underexposed One to I talked it. continues environment. well overall That’s PON mean, do about, haven’t of well. the doing things we that the much broadband we’re

as a such other we’ve drivers – several anything good Ethernet And start XXXX. growth drive positive. got any to will So in incremental growth is that

So market. going not get end to I’m guiding what looks into QX like by

Richard Shannon

Kishore, or a follow-up Okay. already finished fair their the maker changes? DOCSIS as in cable look in either – we X.X. enough. about comments interest I obviously to largely want America mentioned on in market technical your cycle what’s response obviously here, changes TV to next or investments cable to here DOCSIS That’s delaying and particularly just forward we these to cable you’ve the accelerating operators, your committed here and get X.X feeling of But about your these in structural structural North you’ve as

Kishore Seendripu

to own what we slowdown say. operators lot and here. reflective very sitting in And cable of plans, the also hard our They’re revenue very, right, of seeing mean, I are is a it’s their of really to degree some inventory.

the then So And and I announcements it have products are XXXX that in platforms doing been when small deploying the will there think will barely. just in available start And we X.X starts DOCSIS be it. because ramping, quantities. is about validated are probably

happened DOCSIS come not the of really X.X on has that But infrastructure to and has all spend together.

growth think performing for event it’s XXXX platform. cable of resumption higher to in of a I the a So really sort

And so, net the but is yet. in and volumes the ASP clear of offset is some that the decreases not effect quantities, the going to of

Okay?

Richard Shannon

all me Fair for you. That’s enough. Okay. guys. Thank

Kishore Seendripu

Yeah.

Operator

Thank you.

question coming from Christopher Next Susquehanna. from is Rolland

Your line live. now is

Christopher Rolland

thanks the guys, Hey, for question.

further situation you you doing million, on or of ago. Have it, you Just how your got out I your planning back like at what broadband, of might It for is on doesn’t seem year this about kind Have they tying be their talked a I competitor, guys like, for much here. to like kind what have the and worked the trends space and about what as Broadcom which burn to largest one-third issues. is in were having inventory $XX just order like them these call for talked inventory well? of inventory example, inventory are? customers to you plans mean,

it customers a is are on just or dynamic? customer So to You guys now? different going what’s tied

Steven Litchfield

for the channel few past very We’ve certainly been on we inventory. have quarters. visibility watching Chris, good So, that

continue down inventory to over see of quarters. expect to burn the next us that couple We channel

I same got don’t dynamics little respect other with we I think mean, to it’s exposure bigger more the they’re are. I a out They’ve clearly, mean, apples lot think different. we comparisons. this. big so guy. they’re business. you I seeing some markets to in have break these They as apples the mean, I Broadcom, a see to PON, WiFi don’t

the can’t that would in areas to reiterate just the we I same that. apples you softness apples. compare again, They’re really where So, softness, see seeing

Christopher Rolland

snapback beyond Okay. start kind do you of into of segment longer just should visibility term? you And Is think bit any I next here, about That’s guess, March? we your year? from up would year-over-year the about guys super have infra this fair? expect How talking snapback little seasonality do to think getting if a we be you that fair.

Steven Litchfield

there’s but talked Well, year over to X have little the recovery certainly I the drivers want both X be don’t into next as look, Kishore we think mean, out going of I XXXX, a mean, a I into markets. and the growth get up next quarters, I the quarter-by-quarter to to I guiding some kind for forecast look to in and right? and about higher year. bit of a the all to run has end some these rate year-over-year on shape started tough much You that year the lower going on of rate year out gone, way so run the because so just you’re exiting It’s a has effect.

start mean, I softness to I of little you’re quarter as degree. some had as hopefully, we’ve bit QX But a Do historically the well always to and is as going in yes. Do yes. potentially, some mean, in improvements. see about see QX we March have again? to mean, we that I certainly, improvements talked quarterly the here, seasonality? off we bottom answer The

Christopher Rolland

a sale be it lastly, you Is guess, when I would direct might better think consider there interest in like way on the to it? DSP buying just monetize to hyperscale any PAMX, of a business? comes that me, transceiver you Do AEC for makers and seems update pretty AEC, the Thanks. with DSPs going secondly, It and like seems part any itself? the the there? like big of then engaging slog. And cable for that’s a market, makers, it road

Steven Litchfield

we’re as the remarks, very first look, all, talked our about prepared mean in So of I excited about we market. optical

traction. seeing We we’re have been – great

products. X-nanometer our ahead We’re of competition with the

we generation been than think, ever our in I solution. So, we’re We’ve this got market. second better positioned have

think, we’re I really excited. So,

changed last of quarter one that’s seen very closely. since the it things you’ve and think I

than more And engagements lot seeing I that’s even we’re market, well. customer a mean, our as seeing the of little driving expected. had growth we what a we’re

market mean, things that of definitely an I PAMX AEC have, wins all mean, definitely we the a to regard it’s the going bit I little design there’s It’s that a flurry that’s with market, around. So, talked on. – driving emerging we’ve

we then PAMX design the We wins. can couple going kind own growing. about revenues, a of it’s be over I because of AECs, see and our absolutely our yet. working think it are AECs market AEC next years, of probably first; three are to on as I nascent with with mean, relatively still driven If transceivers customers But, certainly

Kishore Seendripu

silicon direct sale I datacenter. a to don’t think of

this For a puny from silicon too perspective. is such an them, entertain engagement to

Christopher Rolland

Kishore. Thanks, Understood. Okay.

Operator

Thank you.

Valero question Capital is from Markets. today coming Next Alek from Loop

Your line is now live.

Alek Valero

Hey, deal, your guys, would talk taking scale future you have for thanks access organic Motion means? through Silicon to question. ability about Can or you gotten with my whether that M&A guys the

Steven Litchfield

Could you repeat the question, please?

Alek Valero

through like you or your Can the guys that to whether means? Motion the future M&A sure. organic with gotten Silicon would about access ability For you have talk scale deal

Steven Litchfield

Yeah.

of the done think the of – We’ll mean, definitely definitely do over doubled So, more do I X, the I we’ve XX a done We’ll size we’ve X the We’ve organically. them, company. mean, whatever still to job we’re last, course, that. years continue growing mean, great even than I acquisitions. last more years. I over

We will this. grow is mean, do Balance continue do continue we be to I off good. very We go cash. generate of still to organically. are to sheet well tons well more positioned able very as to as and acquisitions

head us compete that We enable day, and to every capabilities guys never capability, more been and The differentiate value. product to innovative technology drive head shareholder engineering against big to we deterrent. continue will that’s a have

Alek Valero

this that. have but customer to any beforehand, question Awesome. on Generative XXXG another increase And guys around X-nanometer addressed you impact getting and market I if experiencing in for AI, I might you Thank you any apologize or interest? are your have

Kishore Seendripu

Yeah.

traction, us new and really will anytime new really absorbed really soon. have see habit products I to anything and technologies we discussed or generation the product new of far brand coming at grand is products. be its OFC X-nanometer the has up But PAMX for launch So next don’t and industry a that XXX-gigabit about

is think I investments, gigabit And investor the lambda in their XXX for an per products DSPs. should next the roadmap. be you of our optical leg in looking to be us really

nodes, that’s product. and packaging extremely of technologies think, all competitive build gamut cost So, we evaluate product an and to – I competitive power low the foundries constantly and it

we place datacenter So, a market. that our I we the and get good need in think in share for now, sure the to we’re make of fair market

Okay…

Alek Valero

Awesome. See you guys.

Kishore Seendripu

Yeah. Thank you.

Operator

back floor further for Seendripu Kishore to closing end reached over I’d We’ve to comments. session. you. our the like Thank turn question-and-answer of

Kishore Seendripu

Conference participating August operator. will Needham and Well, that Oppenheimer virtual know this be York. thank Technology Conference the Technology Bank on Semiconductor the Internet TMT & Dana the in XX Point; Benchmark everyone Communications I SemiCap X; on let quarter New conference on to in XX just we September XX; on in virtual you, Conference August want the August and Deutsche

thank quarter. today you reporting With look you. again for to next forward we that, progress our and joining to you Thank I us to want all on

Operator

you. This webcast. conclude Thank does today’s teleconference and

You may have disconnect wonderful time today. your your you participation this for line and We at a thank day.

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