MaxLinear (MXL) 25 Oct 232023 Q3 Earnings call transcript

Company Profile

Participants

Leslie Green	executive
Kishore Seendripu	executive
Steven Litchfield	executive
Tore Svanberg	analyst
Quinn Bolton	analyst
Gary Mobley	analyst
Christopher Rolland	analyst
Ross Seymore	analyst
David Williams	analyst
Karl Ackerman	analyst
Ananda Baruah	analyst
Sujeeva De Silva	analyst

Call transcript

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Operator

Greetings. Welcome to MaxLinear Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to Leslie Green, Investor Relations. Thank you.

begin. may You

Leslie Green

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

our comments, After prepared we will take questions.

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

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

has statements our involve made from quarter Risk uncertainties, forward-looking in statements. and substantial Factors obligation XX, are today, statements XXXX, update filings, no September MaxLinear our ended to today. SEC including outlined forward-looking section as filed risks forward-looking These Form Any risks XX-Q the or of recent revise including our for we and any which of

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

other on non-GAAP to, gross financial metrics, expenses, both historical a but margin, interest basis. report limited operating and we not addition, certain In GAAP operating margin, expense and including,

future reconciliation website. our periods uncertainty related do guidance to and compensation non-GAAP certain investors future our charges, for non-GAAP to its the our provide press because We review and ability detailed inherent tax associated of release not We with a including encourage of on stock-based effects. available reconciliation GAAP the project presentations in of the

well As as potential impairments.

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

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

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

Kishore Seendripu

Thank In everyone. XX.X%. year-over-year. XX% you, QX, main was revenues and good And sequentially Leslie, afternoon, wireless was $XXX.X highlight, specifically non-GAAP gross revenues, were our X% million. infrastructure the margin and Infrastructure up

to broadband overhang, results the financial markets. and in inventory continue reflect especially channel the outlook Our and WiFi

more to are expect financial structure. and FX the We taking Steve XXXX we inventory will the of to align talk about into the our persist actions

continue our make We infrastructure to progress business. strong growing

its revenue $XX a ago. inception years since grown million few represents in substantially has Infrastructure and QX only

wireless, in significantly modem global platform hybrid infrastructure microwave new and XG and to technologies the per the the us products. expanding backhaul and multiband and of rollout millimeter transceiver is allowing With of radios, content RF backhaul our millimeter silicon increase wave wave

ongoing the solution. adoption AI activity is X-nanometer exciting XXX win In driving of design Keystone data market, PAM-X our optical optical the high-speed CMOS, interconnect gigabit in our center cloud for

in and begin we multiple to ongoing hyperscale in mid-XXXX. expect enterprise have for We opportunities qualifications ramping which

laser XXX centers, for gigabit and applications. active enables best-in-class XXX consumption data During integrated PAMX DSP our QX, a XXX VCSEL X-nanometer we per also with member high-performance cables reach optical drivers. Keystone gigabit of application, learning optical product platforms. AI And a This machine family, and transceivers computing announced Keystone new short gigabit and power

consumption the or active DSP AEC product demonstrated our only today power San Keystone available in X-nanometer and Keystone solution the with Earlier electrical cables at this best-in-class the Jose, month, programmability. OCP AECs. for also supporting Summit is market, Global providing we

production additional making exciting new and into We've III volume the hybrid and have ramps design with initial win Panther progress appliance appliance storage all-flash visibility production next mass maker enterprise enterprise for with systems. also year. entered Ari of storage accelerators We're ramp series the leading our storage

this strong double to in We XXXX, business growth expect beyond. 'XX in continued with and

to the outlook PON PON and near-term the from Turning broadband, access broadband challenging for fiber longer-term to networks migrates Legacy as the DSL XX-gigabit environment, is solid access. despite older the industry technologies

another We Tier major will to in service provider XXXX. provider, laying which design wins, North continue the American and ramp begin contribute X with to revenue are additional service including

gateway industry-leading single-chip our solutions. and PON With fiber integrated we processing connectivity it give then and

fiber win traction strong enables continued Puma announced gigabit next-generation X.X for which and multiyear platform, DOCSIS the speed, consumption gateway our cycle. We Recently, low and leading a modem growth for system-on-chip necessary XX to design broadband power latency expect MSOs. rates service X, we also cable

early expect as market initial We see X.X XXXX. to the in DOCSIS as the of launches end

anticipate we bandwidth have the the In coming efficiently connected since XXXX WiFi has activity the in requirements enhanced tenfold our of connectivity, 'XX. X the grown of half the early is the ability home. WiFi to and design which second devices, manage robust, X number revenues in and increasing for higher

result, improve a providers Wifi globally, service to are embracing As to both user transition and experience the performance. X,

and exciting in the previous versus significant MaxLinear, rates Broadband For drive WiFi platforms attach to our growth has higher potential Access generations. X ASP

Moving to connectivity. Ethernet

gigabit through by both enterprise [ But addressable first switch product. core $XXX our X.X ethernet switch expands and ethernet industry's ] build PHYs. in PHY million and X to gigabit This X.X of SMB gigabit markets. family addresses not and single the sampling X.X and gigabit product our continue new X and significantly XXXX portfolio octa started Ethernet market Ethernet we on technologies. We Ethernet offer of quad gigabit QX, We only switch,

and markets. gateway router the as well As

the Ethernet in first to ramp or transition we a XXXX. We begin activity, expect X offering. today's more XX-gigabit copper, Ethernet of cabling market the and half With strong X an design gigabit to than billion existing CATX to optimized ports enhanced expect win revenue in

future XXXX, activity win robust design groundwork technology As and the we with innovation. growth head continued into we are for critical laying

Even years analog access, several our Steve? Litchfield, in over as turn efficiencies let of we markets operating that, in Officer me broadband to are Steve the near-term high-performance that we headwinds, our many contribute poised now the to and Corporate over are Financial Chief Officer. call infrastructure, to With past navigate drive excited revenue. meaningful investments, connectivity Strategy Chief

Steven Litchfield

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

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

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

GAAP range. operating million $XX.X $XX.X performance-based million, versus GAAP Motion debt transaction. combined million, commitment during from operating compensation terminated QX other equity Non-GAAP guidance Non-GAAP million, and costs QX interest end by with Silicon was were million, $XX.X margin and $X.X the in ticking quarter expenses associated expenses Third including and the was the million. down were accruals of the operating integration expenses $X.X stock-based quarter and low driven acquisition at of $X.X of the for our QX X%. fee

'XX investments. QX other the $XX.X of activities operating and million. was interest million flow cash, million. exited was cash $X.X expense Non-GAAP -- We QX, short-term $XXX cash in using with and during quarter In used equivalents in approximately

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

QX Our inventory gross levels. were down turns X.X%, from

cost with believe site expect scale actions to These primary drive at a the count growth coming current we've to to align consolidation the and to include As around taken efficiency environment, the begin the we structure we that benefit drive head more Kishore our actions reduction, over will in our mentioned, sites meaningful years. see prioritization projects, and QX. and

spending. fiscal the currently discipline in turn quarter managing fourth XXXX and concludes our and QX be to focused million of million. results. $XXX downturns discussion has between revenue the track for MaxLinear business the through our We QX $XXX of me a let that, of with record guidance solid This With expect to strong XXXX. financial of

Looking and up at be quarter-over-quarter. QX and by broadband to multimarket end expect to connectivity market, and industrial infrastructure down be we

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

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

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

QX our non-GAAP and GAAP expense to interest other be We and expect negligible.

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

In closing, dynamic in strategic are navigate but applications laying we important QX drive to groundwork environment continue future that in our growth. will a

has of Wi-Fi, a gateways, execution number well Our in us innovation fiber and access wireless and product broadband, positioned solid Ethernet infrastructure markets. exciting across emerging

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

Operator

with from Stifel. Our [Operator Svanberg Instructions] first Tore question is

Tore Svanberg

digestion. bulk materially there. My sound does It year-over-year like you're may Obviously, first growth down this bottom are found question have is connectivity. on the from broadband for guiding inventory and as these quite connectivity

all, that. bottoming make given sure of of are million broadband, run I First rate? all, $XX second then you all just in to want And any of that are confirm business seeing sort you its at you on

Steven Litchfield

Tore. Yes,

looking think And So right. I connectivity. you're rightly broadband at also you're

massive more in a dynamics have they But in that you're we definitely little we that say I start the up the connectivity of bit together, we been inventory had would than, amount QX. by just channel. anticipated. influenced to correct of It's persisted of some the see seen think, in move we've similar did what -- Somewhat

growth better. I would quarter about we've being over influenced connectivity are I think still expect both drivers, talked I I residuals and both bit mean for to a some about QX, inventory through time, bookings. last an that connectivity, are and as channel, maybe while talked in improvement. that even by but some of broadband see we has little mean, last kind -- are we seeing the in

starting we're think to are some signs, days. not some super but means, They're by early robust still It's any nonetheless. bookings. there encouraging I see

Tore Svanberg

infrastructure, that highlight And was this obviously, quarter. the on Great.

few in talk quarters a back QX. lot down. would You're next was down this and volatility But because that about the is And infrastructure bit it the up for obviously, like about basically of great. think hoping decline. come yes, of you coming we should be could any just it's expecting sort I'm to just little maybe extent a way the

Steven Litchfield

Yes.

infrastructure, So been I I mean, infrastructure. pleased really with we've think

I time. in of investing in making a heavily a we've been amount that think we're tremendous progress a long business for

the of on wireless kind think couple QX. be those that I the last quarters, particularly But slow was product year over some into the extremely carried of first lumpy. see spoke ramps, through half strong. as still down That can of we infrastructure, of we

And over up so probably XXXX. to in in it of the back beginning see pick starts carries that can we some before slowness QX and grow year to the

Kishore Seendripu

optical there And we're I mean, fact, progress wireless, very contributors we're data the making. confident several in right? center are investments, beyond in

next whether middle top see on, now it there pipeline. time double next storage going which of year a of we and then products through cycles not a if a or in lot It's design on very, our you traction, in the electrical win have accelerators, And is to that, much, strong lot years. right? very of keep of transceiver for expect then very the right We're robustly into that, to beyond cables, interop to ramps teens, is going next high is win design activity growing design or great And spent win will. year. few going going in-active We

long last why long You so they're of time. leading want likewise, to a infrastructure they That's -- revenues a lasts, mind period keep have that in time.

$X.X towards the we able to our in I our are all to that billion after, we're progress anticipation $XXX -- that's run vicinity. be good the goal making very should on maybe To get next is rate. million X mean, So revenue from years, over feel the we all, the it. we in today's and infrastructure ultimate double

Operator

is Our Bolten Company. with & Needham Quinn next from question

Quinn Bolton

businesses inventory are year, in I than your correction on guess and maybe these much ownership -- follow-up this But a revenue causing well deeper Obviously, of longer trough. question. trough. connectivity peak us down the channel Tore's as can look give any more you lasted to to and has you how sense XX% a next broadband

all we demand have When you run current Do benefit see, broadband that this natural might then available are what the does inventory? to on that of kind business? just government this snapback rate sense And once funds any government or for any of is? What you flushed thoughts spending infrastructure? start

Steven Litchfield

Yes, Quinn.

playing So of question practices, than now. kind bottoming here. confident say and there's worse the couple you're guess to is of some it's anticipated. right. is over bad we're I I out get been seen last right I seeing common that what of big that years. kind recover we mean, we're build-up. The the just been definitely that a of I some when? definitely would That's kind We've it overbuilding mean

government about points I raised -- highlighted. spending that you good couple we've of a the

CapEx We commitments. have seen

more broadband deploying on areas, to transition rural and great a upgrades. broadband seen more more You've

continue service providers good. and our general, is see remain think outlook we outlook the the have does I customers that in the to that very

some our X, our remarks WiFi, excitement some PON thus, So of in around Kishore's of business. WiFi

of there be just of part things So some at to say, should that gets starts I are infrastructure bead the year. deployed, on. bigger going end money the like it of of money the some and allocated some that bill exciting next

still ways a seeing the but X the U.S. it's X in over upgrades ramped off, in So we're Europe, next years. to little

these So having expect meantime, to inventory. have the this good But visibility and work we're do in through this on see to unfortunately, upgrades.

Quinn Bolton

Could that last guidance December the comment, December just a Steve, with follow-up. all bottom. you've do I'll to quick you into mentioned then down And continues QX. is QX residually quarter from a down. inventory And early at be through you being think make it could too overhang Are today is the QX willing probably you Obviously, at September maybe least thought updated be would guys to fourth you that quarter? -- the and have call? bottom? Or

Steven Litchfield

Yes.

recall I if correctly. So

about talked the of So inventory on of out say last but quarter, improvement, a didn't we we QX, woods be somewhat modest we would side. expecting the

expected inventory we year. said, we We that a see more to would But into that. didn't recovery, we being see of last next and thought

that's So correct.

to It what's next but as feels get softness see look out our you we we in would. that normal the I year, build surprised off As normally of like into be back shape QX, start seasonality then the in we like? to business. that look wouldn't to of

as you know, Our been than, have QX and QX, much QX. and stronger QX QX historically -- say,

think to And so I a think But there are some dynamics rest of seasonality sitting right role getting that are I that's play the the inventory just now, in starting anything of the channel. than more it's again. through

Quinn Bolton

then you're X And site in the mentioned prioritization you consolidation, quickly, of it. certain actions reduction Got including some projects yet. just of taking,

QX. already is kind think, with, in December, be I to OpEx, for guidance OpEx line flattish Your in we of where were sequentially in for looking

-- in plans as of $XX sorry, you've the talked in right kind think rate a these OpEx And so could lower does year? Or I, kick change I of do you see really cost it guess half the the first that more the is options about, didn't next Are run year in next a I baseline? outlook. move million much of reduction

Steven Litchfield

recently, to we've So, then some the additional just made comment impact little did will reduction and made start changes. overall efforts, We've changes I'll more beyond. right? a So in that year. on early And expense we some start bit QX

frame see because in QX So it's the beginning so now. you don't much time just

continue linearly. You'll down year, come see pretty next that to throughout

decline I NRE throughout -- offset bit year. OpEx an the little take the some but the we that's to by overall would expect Sometimes OpEx. to number see that masked a And of as

if And $XXX it's to think was I it, put on mean, so a next I probably $XXX number million -- to I million year.

some So the additional had of the larger XXXX. we kind offset taken, that size that's and were which decline, of the much NREs that also in

Operator

Our Mobley next with Gary question is Wells Fargo. from

Gary Mobley

$XX $XX you year. million like from purchased quarter. than to quarter they last recent most Looking this in it million down product of in something That's the probably looks at largest customer, about third your of less

customer, guidance for current your broadband and what's view, that somebody business into customer contemplate longer-term of of WiFi is, with else? level is hands of and the So right does away I this transition maybe business. And my the presume your purchases question your cable representative the quarter this which from fourth

Steven Litchfield

So Gary, customer I some mean, while. of and a with customers, regard top the the we've to -- a had the large disclosures for very

-- these you're that about to silicon aware talk some kind you've of box looking operator. sit of going often the are think multiple in I'm in of top that of most to so to our keep refer heard providers vendors think of vendors I I leverage. between well and the they've more them as us mix us kind are more customers of service kind got And kind

that We much. changing don't see

so service And flow and time. of and from we've don't to this too these actually customers. even this some put providers nice customers starting seen improvements different as some on necessarily top our ebb newer switch we've through we time weight We've ramp. actually And seen year, these year, that much on to of customers, some seen they

Gary Mobley

your win Kishore, center for mentioned follow-up. market. remarks, Keystone it some data Okay. for design traction, Question is I how in Kishore, the in my phrased you you think, prepared

the you some ramp? have revenue of in be think second So visibility days wins mentioned at half can you I early MaxLinear? design much also these revenue year. how for that time a this How of And into ramp the influential do

Kishore Seendripu

work where makers, which So I is you the they're being I very this is aligned or the the up you directly parts center data module that directly them. sense think optical very, mean clear, with the these folks. are in work visibility transceivers right, our to to there usually are silicon And question. OEMs X cable with cable endpoint, because the utilize at you work them manufacturers, man, with

direct have now. you so visibility And

how The is uncertainty the and a revenue little timing the goes of of. the of one and portioning when bit each one distribution you of what have call I ramps that

going take process, fact the you we in well. the the that qualification have. [Indiscernible] the are are through direct the visibility the the that silicon to mix, However, all us fact And interactions, commitment

that, very that's interops in going calls feel reading conviction, strong we favorably. is call remarks, tea my our said our our, go prepared said At if will. interops and having I are So and like on you stage, sound this and and what still, that the that's the will good and leaves, silicon I

have much how exceed will Even plan, revenues, -- to I to we X-year X- that, right. window share you if plan. the you all a always if do top-down influence -- they Regarding plan base expect better. you you'll sometime of you for in our on XX% have of about do if our bottom-up And were game a game of each And but absolutely customers. to revenues. don't that, were do map to That's much our to hope

the how the That's million be few million years? business dollars, in be it card right? between Obviously, hundred can wide X So somewhere can $XXX a to big here.

ballpark So say, business greatest of range, of yes wireless, in and which, growth confidence that's optical storage where a all activities window which be on the that the right? accelerator that's And the I curve should would the -- business of is and X-year them. or goal. And million basis $XXX infrastructure the including the the in of ahead comes, optical,

Operator

Susquehanna. with Rolland Christopher from is question next Our

Christopher Rolland

is first in been have just to trough, here to of million, the from of million connectivity kind for one kind example, I guess incredible. that $XX from we've now $XXX swings just the going peak seen

can of see all lower in guess, this. much guys this done it are as connectivity? don't of than too you Like all, view inventory get digestion? I kind how I So first do really we

to of then there out place any can there? have you much to out new that do kind view? processes guys are how moving extra is in have systems And inventory forward, this in the Are you kind put be there of level But a of inventory idea that's better judge channel? rethinking

Kishore Seendripu

in So analyzing and job, inventory, right, we in this first shouldn't were the be not place. if we channel the the

analyzing X are these So debt. obviously, we

sometimes your very steady to a is And level difficult there from it's guarded because disposition their customers. customer of

more they are get a closer little the the So information to you bit accurate. you, more

want just hark little I a back But to more. bit

overship of educated X we One in was probably then actual are let's most over into period the provisioned? you far sufficiently are the think at things guessing old when And that we X you're Maybe is a to need if build being least worth guess and started, And to profit. pandemic quarters are a, is it? there how start let's core did demand last the the happened the a assume XX% looking into start that at X of shipments important ore years. we about it assume right?

through go all of you is dial logical second you in you that in it If next the then expecting run people No. within start recovery should year. the logic as half somewhere quarter? a should, Can a

greatest of in have I greatest want technology, that's new the the change? second it blah, hear. The about customers I to the what customers, in the about to it we part is and hate talk get customers and blah, excited business offer mean, investors dynamics blah, our our and because say talk No. it always, the like,

long or the are term, they're Products of software that are sticky by Okay. But generated performance revenues actually the all whatsoever. because products. real or

the And In in for of the down robust ship terms sense, WiFi that isn't they're a so marketplace of more can X customer portfolio. cost it. the dynamic in also they have we

WiFi robust a X offering. have We

the the down, SoCs it that when it goes right? it's well, it's have does our I complement broadband broadband that's well, Wifi problem. discounted, access, get offering, the We to know funny, when

to company. large so businesses we're I and long-term And while and really and the matter very now, like so shareholders. potential what on forth, committed per trying a comprehensively time, Sort to. resilient in that our more portfolio be earnings share company back, mean, that goal. generate investing call our profits focused of scale what so we'd that's for the at on -- build no ultimate a if infrastructure goal, you and same we can honestly, happens and I step we're broad-based to with large And build the a build

Christopher Rolland

there, about business. millimeter the And you side, been then kind think wave very first backhaul. I XG of would upside and on guys your millimeter The it's I highlighted of adoption. say, secondly, all, wave slow infrastructure

see, up guys And on in picking now. that the then side, are slow seen are secondly, What even kind guys start you why to the interesting swimming are you now? to, programs XG builds of linked we've India really that it's So specific to upstream here?

Steven Litchfield

Yes.

Just real quick, maybe a clarification, Chris.

you're has aware, our most think I of business been backhaul.

these that markets, this you're year been the has shipping So So right? -- very been than markets XG driver, describing. access a transceivers we've backhaul different big access the that

in microwave And of so these between stations. kind replacing backhaul that's base are fiber

-- sell very that a I into also you're again, we the the -- decline which different emphasize wireless So access just referencing, very to than market. market We see. want so

There's are there. familiar We with it, not definitely surprising. been weakness

] been They're markets. we've to able little they've of growth [ bit traction MaxLinear. So some nicheier but these a They're other in -- gain a great but markets. for smaller, been little drivers

Kishore Seendripu

right? and more This wand or are more I there's the mean, hybrid -- in well, in radios. a People microwave, as deploying microwave -- wave like deployments millimeter backhaul radios and millimeter multi multi-band multiband trend deployments

the as So that increases content well.

a now slowdown. a rolling XG. as has in see India out driver Yes, India been we And strongly was

the inventory short to So and supply we supply, And We in the as infrastructure that, we keep basically have the have accordingly. guided expected excess market. on to were we you running not also channel. in I've slowdown, did mind

pull So you're ] that the channel is a what ability on not based stocked. really growth go seeing, call [ the upstream fact to was the sanpan you over

shipping to So demand. natural we are

will well. slowdown, up the with slowdown with as the we caught Now be

making fronthaul longer in So and they the deployments, want microwave you hybrid with bandwidths really, provisioned no ] coming which about the And [ as combined that have fiber. access pipe to so growth these use cost -- fact millimeters the to versus think be the a they're of. to also increase, going multiband, microwave sufficiently part backhaul is backhaul to to data variable and and is millimeter effective trade-off wave by the

to hybrid and imagine People and in of deployments. trying in even U.S. are lot metropolitan zones things can So you countries India like like a that. the do

does Yes, it slow down? Now absolutely.

We CapEx down and a have guided to a it's have I being of as so dramatically what be telecom slowed OEMs the telecom the going call little, talked accordingly, lot about.

but to in are this preannounced, infrastructure going investments. right? is really is where In see by some it, our be some growth and optical driven accelerators should our We data storage of our fact, center impact our

So be it's a pretty out turning actually, a pleased I quite which taken portfolio, I'm think have those while. to nice

Operator

question next Deutsche Bank. Ross with from is Seymore Our

Ross Seymore

a ask to wanted couple Just of questions.

going sequentially? interlinked. what not was those was quarter know fourth fourth sequentially, you I the down change, For to ago up months demand And X that changed X expected? today, are be there that more than inventory out from things But the leads to quarter

Steven Litchfield

exactly think I it's as you Yes. stated. mean, I

X I more we had bookings mean much in it saw what more inventory. pushouts. months we But I improvements. there's right? so we quarter, saw mean, as the but I it's We saw both, definitely expected ago. wasn't as think some originally

Kishore Seendripu

right? is ourselves will, and and outdated baffled, And slowing much slowdown the honestly, with sort with how sort it's to reconcile that, clear economy if inventory to how of is all So us. the the as are we you as catching of getting up

I we're of chip parallel a the chip maybe there's the And of a some of seeing now, and are I and economy. there and that. are definitely X there there tech we a in know maybe right downsides are economy them, consumer economy. are think X there's economies economy out there don't

Ross Seymore

second -- X I follow-ups. guess quick question, I have

to total first revenues. you're The not one, for next guide going year whole, a to I know as

But are a talked have the 'XX? seasonal little look as comment the bit company you from that do think a you what or it headwinds level, earlier. idiosyncratic the tailwinds with at You as about of a guys linearity high you

Steven Litchfield

going We're likely degree. straightforward. opposite it's that I out started mean to not and of we -- think it I I of year, next you're year, through pretty we some think saw don't this I shape to but probably year guide, I'm continue and of course, to working I the I really us I see right? strong, is mean, mean improve. kind think to the this inventory, deteriorate the

naturally And that is of new are kind -- ramp the in mean, coming but next products programs, next you've wins that and lot ramp off, starts to inventory that year. got ramp optical. just new to WiFi of to a also burning from coming going coming from a year. from That half of X lot I second it's year. of starts next new

top So naturally ramp you've got of burning several just new inventory the programs off. that on going are to

mean, So will I seasonality, I thing channel. a softness the on question little guess of help. term least more mentioned I short that think was see the probably just I both at in in in another inventory sits think you the it's seasonality, I only bit other by but influenced of those that the

Ross Seymore

it. I last Got speaking of forgive my before, know on confidential in a said But -- appreciate in most you that can I timing, say. either of Motion. process timing not in to again, magnitude, potential is tends that somewhat, significantly but limited of X. you Silicon And sort it's of the one, on reiteration frequent a the your and question any I for it sort what the with or arbitration the color get. if me be any And update the what

Steven Litchfield

change anything process. don't confidential I updated had filed think Yes. just Silicon before. that for I mean as is we the has Motion arbitration, only changed,

can't that XX arbitration to we to any XX take in Still months. color expect So add you're there. process more correct that

Operator

David is Williams next Benchmark Our with question Company. from

David Williams

-- just ramp in the a talk the understand you a Is there bit to the you next Kishore, more seeing that magnitude that that for do traction you're any around year. maybe about you could Keystone color provide think And in us little help more maybe platform? what's growth? the little of traction

Kishore Seendripu

We have in teens. sort don't teens year, builds we cycles hopefully, the And that I had of be to the beyond in something hopefully, guide lines. would continue. the future or beyond if we now because that from think And its that are we short the today, a interop disappointing pilot where time as next But that. right in

natural terms can that that? -- that's million? I in X-year of I on would in could do expectation, -- share mean window, Yes. but a right? we based And than shifts. a be you to could then better we cross Absolutely, talk So $XXX

the per gig whether card, XXX-gigabit XXX you transition platform, deployments of will. X.X on the XXX-gig it's gig centers they wild multiple the X or XXX think of I to terabit timing lamda, and or data if

we confirmed clusters, I XXX have And from But so you're what, Right deploying right big rather we media win now. in to counting the data guy, on. it on land transitions know it's have players into multiple into gigabit. center X coming they AI that -- than it like you know big are now,

selected saying trying but it. we And So are to we hopefully, win I'm ones, the of one it. they we supplier or selected base, not their are in as are into we increase are that

don't the trying please focus that. to So luck okay? on basically, winning just mistake I'm now say good is and share, right our some

David Williams

you maybe had little a you say progressing Can slower Okay. is than have it Or expected? hoped? is that would you as

Kishore Seendripu

since for tea good dying -- if been And been be are. very indicate but It than honestly, to center. years the you disposed me in should more you. every actually slow we forecasting that it's far, read so And said, I my always slower a positively feel where I'm been with about will like leaves, time, we few the to several right? it seems me, because So anticipation, optical data investing we've

Steven Litchfield

after done some I of platforms. of see Yes. developed think, the versus also go AOC to the I opportunities. you're And optical, starting to we've types really can David, to AEC we've transceiver out. Those other leverage can broaden ramp another thus quicker that positive, our IP starting are that far. programs mean, in opportunities, that We development that

David Williams

operator lastly, Great the just color. maybe side. then carrier or the on And maybe

you look Or hear is If you're there deployments optimism out, maybe in beginning that the hearing are spend? beginning maybe anything sense of you CapEx, of planning? of for any year CapEx and XXXX to the terms

Kishore Seendripu

very well. by you in the end QX, QX, they years these can tell know aggressive they start, the It's always that, broadband. cross and clearly the they of hardest go [ super as all in just QP], time don't then I anything sometime then in of sometimes thing

their be going right? decisions there, of that OpEx to sitting to you're for be unique they're of So because but Because through inventory there's inventory. impact feeling going is even lot a depleting -- the sure, even us out if are process, going times the these delayed

So towards they in would of the middle or right? period, QX rushing come feel you QX, won't the urgency of end pre-pandemic the past in

But now dampened. there's still to enough inventory in the be channel that it's going

we be all will -- their is that they're subdued be much. I expect think to going to. right belts, should wouldn't we to up I So and everybody whatever be signals -- tightening so it that But became be going think but

Operator

Karl question Paris. next Ackerman from with is BNP Our

Karl Ackerman

Two there impairments to structural guess the of portions call sort first may. questions whether of I questions connectivity business. I and some I there this asking broadband of Steve. on have [Indiscernible] its if to -- been are wanted your many ask,

to drivers think like of of and we wireless connectivity specifically some much I'd call to ask be content on today WiFi about split a as that certainly the wired? would opportunities as rough earlier business for it well this basis, how So contemplate growth between on talked business, about year, as your next I is X. tough X of that you helpful some and today as the WiFi that relates

Kishore Seendripu

have To telco exposure have no wireless the we on It's processor platforms they XG fiber little would offering. where gateway box I we side be side. a Okay. say access example, WiFi gateway input chip I a box, with the a call be an extent in access from wireless that exposure for our a from comes tend the really the they and to connectivity to what WiFI PON they broadband for or access connectivity that to video. the and our have where, will that to

So if very you access, exposure we to much So access, wireless access. no broadband okay? or wireline, of gateway wireline that to XXX% little exposure the on our are pretty out take

of that what call we -- stand-alone may get year be gateways, we be the of gateways XX% That to the revenues, XX% making of we it outside are it right? that are would the, let's it started is the However, of and router say, landscape. operator progress at beginning the

should gateways okay? WiFi broadband terms, of you should wireline access on our our connectivity XX% practical reviews you associate So a -- with

Steven Litchfield

just Carl, add a on maybe, little to And bit.

on So have also side, Ethernet. connectivity we don't forget about

declines by in the So both while mean, I been a our gateway, Ethernet. it's driven WiFi lot and of

going X.X on One what's on to of the we're big is seeing things some going gig. this commentary with more exposure, around Kishore shared transition

see in are from 'XX do to growth a We expect and in Ethernet. lot we seeing more that, interest 'XX more and

of as, well WiFi the opportunities. course, As

Karl Ackerman

color. that appreciate I helpful. very That's

are the manage For any the way as levels. decline to lead to pre-Covid But terms see normal, my guess, back I to And in follow-up fair a about you inventory. of nice times thoughts backlog question, a of I Is over to couple inventory, fair quarters? of think in it's second, that guess, -- level it then target expenses in look today? next

Steven Litchfield

Yes. It's a good question.

doing think tail back continue job all the the I on as So we And going We last end way been do we've we to far it really on down. to got bringing jumped better. as quick year. this a good inventory, better. but do pretty of will to

fast normal. we've regard lead the pretty as like decline to than times, of to as a XX-week couple are say faster would to. normal. revenue able in our probably we'd XX-, of business. of lead I kind not mean lead I with businesses unfortunately, kind that quoting times, that that, regard which been we're get we're kind back is to that's typical there's But the times, just but our inventory I out mean to With little been has such of

I is say this that, So wouldn't problematic, point. that at whatsoever

backlog backlog and -- The also bookings.

mean, I had been years low you super X backlog very So I bookings, good talked for as almost I've over, know, don't about, have because well now.

through whereas historically, you're that And That's that's getting that's to. with years, X where and we're into you've normal And back so you what you've phase, running now whatever, rhythm, a I XX% backlog, -- for going backlog, adjustment the -- at into know. feel like been running we last XX%, been that that quarter that used XXX% what we're changing. getting

looking of so back. kind to And getting actually, forward

of Some That's quarter. of been the a backlog problem has pushing has where uncertainties really out the been. around

so starting we're improve. And see to that

Kishore Seendripu

I X can the if the honest, bet I that. extent inventory PO Steve, on on But say customer in want you that we bookings you to we will I be side, get our support books our to so going

Steven Litchfield

Of course.

Operator

from is Capital Ananda question next Baruah Markets. Loop with Our

Ananda Baruah

at what previously see assumption? in. were customers, fair guys of you same, can of last they that with Maybe topic just you right would that normalized Do exiting the levels going would like on everything dovetailing this suggest talked that Karl, just be think new kind off based a that's about it you as seems inventory

Steven Litchfield

I'm you not I'm sure on. sorry. that I follow

Ananda Baruah

that Steve, them, you're Well, your change lower, on with that of they be saying. they looks it coming I inventory sounds customers a higher, particular like inventory they the can but they like, same what they their would sounds they hold, could it I mean, it view Well, could what this. based to my looked out what change like But -- thought. mean level it would here's as way was XXXX, probably I interpret levels, imagine. they can normalized And change have that going -- into

we What they of does number I'm weeks some like inventory? that though? saying probably want So of make MaxLinear say, sense, hold to

Steven Litchfield

Sure.

Ananda Baruah

yes. Yes,

times what you're sounds lead like ship sounds have higher is meaningfully sounds back typical, than it it XX% ship at are because like backlog, you're it in and difficult times. out the pretty XX%, like you to lead So saying is

time to sounds operating down backlog. guys So and XX% it you like lead typical inventory, the working XX%, the they're is

wondering if levels. So in, was you me me that back like an they're in it crush working sort of inform that would opinion if you pre-COVID kind to where question. you as I guys might already inventory that It guys -- would getting have inflect. to to just really suggest on when you guess, I of settle sounds also

Steven Litchfield

I the sees correctly, your think agree lead if come I down. whole times that question mean Look, industry understand the -- I Yes. I that have

customers lot customers. even or risk. if sitting waiting. channel sure eye-eye there's taking end in but still inventory more do industry, on actually you And the either of not They kind we're I of, look They're seeing this, have, so at across if think have the -- still they're a

I are they seeing burning back X down. it's think but -- improvements. mean, I high, still I but still is to are that stated. that of I getting And times, quarters, we're while as we normal couple so another those mean And

Ananda Baruah

think ... do Yes. you really things settle to get And I previously, lower in they question at normal back that you guess was, levels than the what

Steven Litchfield

exactly I -- now yes, think we what's enough That's either other see right because It out absolutely. that entire they there. or take They on I the inventory in know swings industry they in cycle. going they risk. there's every the will and they know waiting across -- what are is long. think mean, wait that right? will They That's more too way, they

And nobody's pounded customers, so long and their as can of wait for -- inventory. going every one on operations to too these they as having they're getting guys much

kind So going to environment so risk they're being probably is late. okay. that's demand order they're And to not of where and so this going in

Ananda Baruah

robust be in years. a about and And any just the then mentioned couple be? few of follow-up. up those how around Do times impactful 'XX accelerators quick a then Kishore, you you and picking potentially in could a storage context to for

Kishore Seendripu

to product whenever at peak generally, and thing its rhythm to invested otherwise, year It's revenue areas, $XX a it, large, hope build next is sort the million going product if -- growth that's and there's I we any the somewhere to economics cycles that's mean sustaining right? out, product we and in be per in growth, to self-sustaining million run very $XXX revenue. of an don't and it's product, revenue, new by built, sense. . And make the what right? impactful, the infrastructure and

going revenue. So $XX this for $XXX it somewhere that revenue is hit it's that per million the product million when to be expectation peak the to in year

growth, year, there grow have the from you new next said, a year peak holds it point double then and following year, third hits maybe it XX%, the the XX% fifth the we and long maybe fifth really not right, in and from and like for some third the time, year a and launched products. initially, year there we So in now. hopefully, rapid

dots this thing, very the cloud increase market point accelerators here, need it. edge well to And as is and is well. will become And the connected the here there where we cloud as is a the maybe and key the and ever the accelerators the this these AI in important and and place -- more never essential for is that,

AI of there seeing with where a lot now, if joint call we're partnerships we join right will, of that could you and joint a open thing. collaboration vendors, investigating this what I for So be offering, net

that get And ads at well. together [ even storage with with enterprise latencies to the going even a is of the going AI massive and as processors play AI to the be really even is to ] is is And the And and inside that this cloud, goes those storage. be incredibly worse. moving a the on really, key forward, going consumer all offerings are the important to access the of is business the and all speeds

our storage that's dots sense time really of the that for in evolution the is connected step first business. the in And accelerator the I maybe next So you. this

Operator

next is Suji MKM. Desilva with from Our question Roth

Sujeeva De Silva

the the whether environment? Question had I'm or that you of PON if curious is carrier or expected macro pushing happening carrier delaying because about that rollout is program. out rollouts the that as

Kishore Seendripu

expected. We've slower we shipping The the difference year of only that actually. than for The happening. role this is already been year, rollout the is part was whole earlier the

So they sitting of on then they started bunch were a shipping. inventory, and

the going the are the X is we to And X XGS delayed is is shipping a life. and throughput they're which have be long PON with cadence. natural the platform, expectation and generation on XX-gigabit generation X, next Now on enhanced but existing platform WiFi to my or next-generation going is a PON already ] [ working

that, said got offering we've well. Having the as next-generation

because So any out our of There that as as in not change in there's with, is be and thing, was seasonalities think year. ordinary on the and I side of but the slowdowns of plans beginning to will nothing yet. there natural much sort inventory don't the start

Sujeeva De Silva

of AEC be the that Kishore. Do cables. here. size? market just online year on the will lastly, think the the Can coming you AOCs about versus Okay. the And passive kind market us or that's and relative That's optical, a out X helpful, help within then you think

cabling? big understand share to grows market of think that the you Just how a as

Kishore Seendripu

whole I as That's cannot AEC, active excitement very, very AEC right? of looking there's comes interesting very, market dramatically, electrical speeds the performance, for a The know have rationale backwards a a question. where tiny in lot cables. and has increased in very need you the copper AEC meet but -- been passive

AI I'm to to AOCs cluster, an do I in want want for AECs,right? a optical. I as place anything There's don't with well. go If

the really mix and match. So it's

think So keep just term. USB this volume can underestimate it be over any can X.X, right? the huge, gigantic. will long And just be like I can growing. It's the It forecast market

All are than as be $X they I out the more billion play market, in size chip all, cable However, to $XXX will optimistic know, I active for between the lot for to a right? prices the big expect cable anywhere electrical be, don't going combined. transceivers, guy to and really optical million as active

But $XXX there supply the than never product. million last chip a cards of single seen XX of existing more for me. in -- is these I've in years segment Communications MaxLinear is the

is So $XXX million $X billion point. my the TAM TAM,

very that's our with take it to think going TAM, of the to technology few to and we're put billion it's positioned differently, really evolution. $X I there. products many generations get So years a access take well to going But

Operator

Tore question Svanberg is final Stifel. follow-up Our from a with

Tore Svanberg

the recent [ question had just I on CommScope ] X-part a Yes. deal. Vantiv

like when perhaps a have have also that bit on sort this, impact behavior? did all, customers inventory. purchasing an about buying of careful you an First more of event Obviously,

part more question, think that And to of be is And going MaxLinear? bit does for second like and a asking because simpler. I the change is I'm X all that question at the sort X this would the now X.X DOCSIS anything then the of reason for it's that qual customers

So X great. be questions, that would if answer those you could

Kishore Seendripu

itself So think by said M&A a the lot the part has throughput of it's market happens deal channel. Having the itself in I impact Tore, think got on that. any very, inventory don't end very a the that, of anybody and which it, first market easy. deal inventory your knows end on much sitting very It's activity. so really is I when, question right? process, don't nonlinear there's driven the had

So most power, beautiful one. competition two, chip, the world. I think compared lowest in in, regarding Yes, got cycle, place sort to the bad our of great any a are we the customers have a we are number Number the same out DOCSIS X.X the thing That's in there. we've chip

seen to years of have right? the plays cable years a to to then to X to out, the volume, ramp it, the it really the X XX% DOCSIS XX% the where to we get X-year X way And takes However, life get market it of at least point market. hit

the that, I not market. it, him And all to ] said going very, [ DOCSIS is of are very, costly DOCSIS and selective X.X be the for marketplace. X.X. in share of same be very a kids it's X going very operators rollout. the network There Having think to as about small are everybody, flavors It's a very

meet that are going the many the the higher towards, roll got X.X that the XX% DOCSIS multi and has that's that's there. gigabit, is going on to meet all upstream of to bandwidth something it's There's what category DOCSIS gigabit the called the with to needs XX can going things. However, going It's to services lean of flavors. today think out market. DOCSIS Ultra Ultra all be market I and those X.X. the which its X.X, split And received all out based called And network operators

bet even beautiful, so is X.X put DOCSIS And but more great, X.X Ultra my is DOCSIS I X.X is on. what

Operator

Seendripu comments. to I Dr. going hand Kishore just over closing was for it to back

Kishore Seendripu

Well, thank you, thank you -- operator.

thank in January Stifel I you like event of Conference to Chicago is November in that we'll TMT in you through Scottsdale on in thank want on I joining participating New to you call. January. the York I the ROTH with in and New demo look Fargo soon. X, tell November you Capital joining November So we again want for conferences in word in us, to be November Technology just once and Wells XX, Technology California on Thank UBS Palos a Conference XX, all Growth [ number XX, The all speaking Midwest again that, With York on XX. you. for to want this ] November forward to Rancho would the Conference Summit the

Operator

conference. today's conclude will This you. Thank

disconnect and this participation. thank time, for may lines You you your at your

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