MXL - Earnings call 4 2023 | MaxLinear, Inc.

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Operator

Greetings, and welcome to the MaxLinear Fourth Quarter and Fiscal 2023 Earnings Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Steve Litchfield, CFO and Chief Corporate Strategy Officer. Thank you, Steve.

begin. may You

Steven Litchfield

Dr. Good us Paul. MaxLinear's and you questions. today thank quarter comments, our Thank will we on afternoon, today's joining take is me With today financial discuss Seendripu, conference for CEO. After XXXX prepared you, results. everyone, Kishore call Fourth to

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

markets, release in has Investor obligation any statements. XXXX our forward-looking which forward-looking Form of XXXX and measures quarter statements our as reduction In will XX-K effects concerning future win without the of SEC revise and we maxlinear.com. potential section adoption incentive trends, plan available limitation, is for timing operating relating our or to filed financial at and the revenue customer Any for Factors expected new programs, substantial results, products, opportunities, outlined year statements to The update geographic we the ramps and across forward-looking in Risk execution today. markets, inventory growth share and including available market target addition, the design made various section today and and demand and involve earnings including, of the seasonality product forward-looking December cost our production no and our launches uncertainties, rationalization, are announcements. These serviceable risks in our market business Relations website make of certain of expected statements risks fourth technologies, of uncertainties pipeline, opportunities and statements recent for and XXXX, for XX, expected including effect MaxLinear of our of fiscal filings, and ended product our

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

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

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

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

Kishore Seendripu

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

for or new several the a launch successful and and connectivity innovative a pipeline products and growth infrastructure our next and so. Underpinning business them. customer years is for annualized revenue dollars Our that infrastructure be the of our grow firmly to highlight, and run it about end we hundred XXXX. rate very is poised fiscal an business infrastructure optimistic in XXXX, main Entering growing XX% market believe are to to growing over million convictions three of win several continues design our across entire optimism robust

and of access backhaul We expect of to catalyst of connectivity. In tens high is providing to and enterprise ramps center our revenue data high-speed high enabled current wireless growth to power gigabit AI hybrid electrical and and networks, generate in several the consumption over ongoing and expect X-nanometer family. increasingly already data to rates. Early [indiscernible] WiFi the there's wave optical second we strong cables. In cloud data Ethernet in interconnects, and to across and multi-gigabit and spend, optical from barrier drive DSP stage XG PON encompassing gigabits new for active the which of XXX telco competitive revenue to microwave active drive tens revenues a access new expanding the center performance year new optical beyond of Keystone broadband transceiver this DSPs, the wireless links an invariably high-value and highly global years, upgrade this in with accelerators, and despite wireless production half will optical for transport best-in-class enterprise meaningful The infrastructure cycles millimeter transition wireless CMOS slowdown are in begun cables XXXX. differentiate run millions per rate in have investment speeds growth technologies speed these in market, PAMX broad our speeds. In of has of infrastructure adoption dollars storage to product market, us bullish year have XXX-gigabit innovation more the and entry portfolio infrastructure, the PAMX rollout gigabit later second

modems increased platform full transceivers, new links. these in greatly content provider benefit we silicon will and only from per of the solution As system RF the significantly

also upgrade We part strong expect multiyear of customer as cycle entering demand XXXX. a

base addressing massive we'll and Additionally, have in and World [ station at units both micro radio for solutions. Mobile macro access ] remote unique announcements Congress XG new end, February product

enterprise while compression [ viable. We and hybrid of of growth technology reduction infrastructure in higher-speed cost ] us reduction, storage new Series no ultra-reliable coal and The the XX With expect Panther providing our CPUs security, and our X using and portfolio protection. ] deliver expensive NVMe Panther data suite deployments high an hardware [ revenues, data term. Within count of infrastructure a data appliance III is extremely to backhaul expansion access of revenue products power low-latency longer to drive DPU to enterprise drives, software-based allows systems. array is power-hungry architecture the legacy driver flexibility scalability near ] exciting wireless SSD accelerators in for growing long full [ increasing CapEx low and our the III storage significant all-flash

storage leading [ and ramps with enterprise are additional Tier We year. ] in product appliance ramp this customer later production X Minkel the expect

to revenues X.X-gigabit and growth expected cabling. in X speeds PHY than existing using of gigabit $XXX medium our over by small copper XXXX to today's switch auto gigabit both Ethernet markets gateway Ethernet to traditional with more to with Octal and have and beyond. In are X upgrade recent X.X Customers billion include expect in enterprise markets. time our connectivity ], business new addressable double [ continued ports and Switch Ethernet launch products, XXXX market We and the Ethernet to standard CATX our addition in strong expanded we million the

American activity We design enterprise seeing a are win to in OEM exciting our customer expected to Tier is that the mid-XXXX. production X solution, North ramp including for

million As reach months. XX we look Ethernet to the business ahead, $XXX XX over we next could believe our

broadband. Turning to

to continue new in pawn traction We our gain market driving design fiber with wins the growth.

our PON positioning opportunity This further in Tier As service began with expect ramping many fiber we with gigabit ramping provider. we XXXX, XX connectivity [ you single-chip provider. million. and know, revenue X and of competitive to American X solutions and ] processor approximately our in In market. the XXXX, gateway pan North American service XXXX, In a MaxLinear's begin Tier integrated was validates the establishes major major the fiber $XX bond North second new

and only We our of years. [ Alliance PON the major embodies compliance. WiFi WiFi next revenues by expect certified In X be the test operability devices X was both ] X than to for [ milestone, X double as connectivity more bed ] a to our over able selected solution two and certified WiFi

Wave XXX WiFi efficiency, Our reduce device X tri-band step and is and latency. major for power represents an industry single-chip first a forward performance

X beginning client reaching to site PCs. launch and as adoption, phones peak XE Even mobile this in is WiFi WiFi and X are year

peaking later with in to with expect We to years. initial year rollout their service providers soon this X X follow adoption

has potential speaking, and growth period the X drive to an higher is Circumstantially to platforms exciting likely of XXXX ] of WiFi for access new opportunity broadband MaxLinear, For previous in significant exciting attach the growth start product rates generations. [ our MaxLinear. versus be ASP and

We importantly, revenue our that, bear made in let that With are up and market to we portfolio investments and Financial the me will Officer Strategy opportunities across expect significant opening year drive fruit to many broadband over of now tailwinds come. inventory years new to and when Corporate connectivity in turn customer the also the Officer. to call headwinds our become are our rationalization innovations for Chief product growth Steve? we Most Chief Litchfield, likely down. beginning expect past and winds Steve

Steven Litchfield

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

the Revenue result this the year year-over-year. Infrastructure revenue of quarter growing expected, As for versus as flat $XX opportunity. But was fourth substantially. demand fourth quarter a solid was for XXXX for and for prior grew market end fiscal down quarter the XX% million, and market XX% down

$XX performance-based QX, and were The driven $X.X margin and fourth the fourth down and of by non-GAAP was GAAP GAAP XX% GAAP in of equity for quarter Lastly, integration workforce gross versus industrial acquisition-related our gross costs year-over-year. amortization. Fourth the of and $XXX.X Non-GAAP revenue. XX% million quarter million, multi-market delta QX. approximately revenue operating of were of and acquisition quarter million XX.X% in XX.X% and was accruals of $XX.X margin up were asset non-GAAP $X.X and sequentially between QX reduction $XX.X million to primarily million stock-based expenses million, $X.X million. $XX.X operating million Restructuring compensation in up including related intangible our QX combined. expenses costs

throughout XXXX other We interest see quarter million. activities $XX.X flow starting Non-GAAP XXXX interest was and other exited We QX with during was 'XX. Non-GAAP our used in cash, benefit cash cash was and cash. in $X.X margin the during in expense and cost was X%. of In reductions million. $XXX QX operating GAAP expect expense and for of operating equivalents million. QX the million the to quarter QX, FY restricted approximately $X.X

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

first QX gross quarter With levels. million. $XXX in currently to let's between discussion of turn our the were X.X for slightly XXXX. We [ QX QX ], inventory be that, revenue turns Our financial and expect $XX up million XXXX concludes of This our results. from guidance of to the

end down quarter-over-quarter. QX we expect at be market, by to all Looking end X markets

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

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

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

non-GAAP QX to expect We $X to our GAAP range $X be and other expense million. million in interest of the and

approximately product GAAP million diluted gateways, our drive gaining we about XXXX. position QX in innovations Ethernet count success our our market $XX.X share and access wireless expect We to customer WiFi, are all optical will infrastructure are and non-GAAP each. In and excited fiber in growth for broadband traction. drivers be market that closing, The ] and [ today

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

Operator

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

Tore Svanberg

does started like step is stabilizing connectivity it so like looks of question you're sound first your expecting -- It another down. broadband businesses, some this quarter. My especially

the just there another that you a down. take could they bit stabilize, because it's about a counterintuitive little step little then dynamics but bit So talk would

Steven Litchfield

bit. I'll But start yes, all, little of first we've and want about to -- might Kishore been Sure, add talking so Tore, look, this. so a

the I channel seen think inventory we've in improve.

simple we're is And half the there about modest some inventory channel and the first still this year. spoke the and fact just expect it in to last We so of improvements. some quarter for seasonality be that seeing

and the So we side. are getting broadband through is in problem the connectivity it, bigger I think

also a areas in the are a extremely there's certain industrial We down of bit, where have little Industrial big massive some business infrastructure bit rumblings things is inventory slowing inventory, multi-market. of things talked we've you're well, In amount a mixed. little I channel about overhang don't going is going our wouldn't but hearing in As say well.

Tore Svanberg

of that that take a And the sort you we you if And But growing. the business think cyclical secular X if $XXX know clearly business, this now units how or assume that is at that's secular run million segment stuff segments. now? a much lot about $XXX is that if have of kind by least of Because QX, rate business. that's of guys I we million, you versus of

design and so and optical forth. You and would on wins new so have great some

of, understand, talk of about look So more $XXX much there's run in rate, that I would if at we if $XXX just trying how baseline "cyclical" [ say, versus million million don't can that that. to know be quarter you any ] secular? a let's way of

Steven Litchfield

a we've revenues got of break the his we quite in bit bit of -- newer and inventory where the you're other I in are other the performance I doing to and some on to about already the expected some of side, on is the don't revenues. that and out. infrastructure, products. are And cases, see can good wins reasonably little spoke revenues. are infrastructure products would in honestly, the mean they that in go all channel know think market, We're that I managing where softness seeing cases, the that's seeing Tore, portion Kishore have would which mean connectivity. markets a lots product are but around new I well. are back and broadband some new turn really industrial design These I I we're side, there's that -- a market into reiterate -- problems in I declines, the And

stronger, products we we've certainly to this exciting a come of thing that new expect with. better and so company, And do got out to much some

Kishore Seendripu

connectivity. new offerings also product the right? broadband and side, X in and in the connectivity WiFi It's the talked We about lines true our PON

seeing all really at on. it's so you're on place of is terms the right and a at the what's right broadband that's now now the noise connectivity the what bottom in inventory bookings on and So happening

connectivity up the we and recover, the announced that product the pick we new on even and broadband the will products cycles actually launched have growth once side. have and So we that new expect we

and So ones -- that a and growing connectivity discount the I is broadband wouldn't then there tale other of are it's nicely. two cities, that

think in as infrastructure the are product the growth vectors the side well strong on I there and launches side. even are that connectivity all broadband as happening

Operator

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

Quinn Bolton

the and to to about space think, they of 'XX what guys Calix [ some from ] half very end these said First calendar they're kind ], holding off customers just weak effects of as you expecting of much of bill a first and year, one-for-one folks the put half the CapEx funds, broadband like hear even one folks are as ask, I year have of the a their matching of Harmonic try in to do matching dollars. the where infrastructure maybe lot get into back of the [ next

spending nobody like bit term lot CapEx any side? a probably feels a spending Are And inventory the that, assume the that? have so in quarters. near guys here activity the you exacerbating is I CapEx it a it? Do is burn there's you shift on future thoughts if And seeing to in that of on

Steven Litchfield

think question. Quinn, answer way, I the I the would

some we're kind along projected the of of of and the aware come subsidies the commentary around of that So infrastructure some that. with obviously, bill

as we're I than correction. the that's far so that's or kind end think we -- is the it's through slower through of driven say, this of kind getting of dragging A I'd lot inventory inventory. Look, demand expected, at of impacted going been, clearly this by shorter-term and near-term day, as

that see us build more for think the been I mean I spending. they to out. what's telcos CapEx on is aggressive exciting we have continue

waiting those third guys tier, the some kind Some of on subsidies. second are tier, of of

think I doesn't but help that's may push so X it surprising, entirely recovery. And quarters. indeed that the And don't definitely X, it --

Kishore Seendripu

is when down. pattern like at it levels the and look it the inventory order how itself we is going resurrects the what and way burning, is The inventory are

start We and to has are make bookings That progress actually see to been beginning see positive. increase. some

are the now obviously, due lead they are QX year spread because times the necessarily or bookings So not the for established. entire QX, well over

really to at the you don't activities. these from mentioned think statements that extrapolate directly can some of players So we our map I and that

our really changes to when what what is -- orders and inventory in that in some really about depletes return think normalcy. happens direction the order I

Quinn Bolton

bottom, start guess if would activity going some connectivity pretty point or times strong order you're guys sounds to you like for I makes think happening, right? are I it it's assume still right extended lead evidence through would snapback funds. steep I guess would that point, is a or have think recovery at and obviously that just which is in see if you that But stronger low. it at I suggest and now, whether are QX I for short, be but broadband an the some holding waiting visibility off pretty don't QX, matching activity now, Is fairly

Kishore Seendripu

Yes.

has channel mentioned. think the happens, is come of it will really, when rationalization short-term And extremity basically, the That's the ship back the of be strong there to vendors. but thing, behavior one I visibility the the we in right? nothing to as because

absolutely that stage -- right. like back for Where a get to tailwind And -- talk we XXXX, a a we to you're being we I on up think for if are you don't from mean, will, legitimately So perspective. company a sets where I nice right?

Quinn Bolton

in if in on that's especially terms I your a to you're see lot heard could I know I think X, was what kind that SMB And that was I enterprise you than to for space. because right, Ethernet about Ethernet clarify to right, your in infrastructure the that the talking of bigger $XXX then quarter just if thinking prepared opportunity, I time I frame. you guys, reach talking that a Ethernet of wanted about of million the side. that business design have a the in or But -- and ask was certainly, to wanted XX wins script, over next just months. that activity level the that that's XX been

Kishore Seendripu

Absolutely.

we substantial Ethernet long-term Obviously, have that products And are the product. that have there's but of part no pipeline large also points but nice With well, to in [ a order. revenues going we ASP exciting class very devices, more cycle. a sort competing basically we space, gateway as provides pointing the of infrastructure, to revenues unique the ] is in enterprise that it a is the router a offering, revenue because win that design revenue offering which in be good includes foundation a to that portion reaching

Operator

Our from your line with next question ROTH is David is mute? Suji Desilva MKM. on

David Williams

It's David. me? Can you hear

Steven Litchfield

ahead, go David. Yes,

David Williams

it like Suji. sounded Sorry, called you

for So year-on-year couple see XX% really are just that do to here. a from How the to new these But products of questions maybe? And some side, think guys at product new Steve, of wins and ramp? will to begin going can be quick here. the we midpoint the this of down be year expect you contribution you guidance quickly what

Steven Litchfield

These you're declines. Well, so annual yes, big right. are

of, a growth think nice PON are. business, I can our think a that we've But which talked so to as inventory of been kind business, a Ethernet cetera, seeing some our we've XXXX. investors, about they mean our optical WiFi business a XXXX just we lot whether if lot little bit spent time spoke business, drivers I be about what you those see et storage talking lot about corrects, accelerators, kind growth. and pointing our of Kishore of We've is in talked this why will. of the I you normalcy

the naturally, We some in of as areas. visible headwinds with will that have. But not all growth continue to those we see inventory it's

see year optical great in will But in see much lot be you example you'll delivered business, growth. our I meaningful that and mean them so but be lot see will are a a this more market, is you growth optical of will from And -- where and more it the XXXX. will a XXXX. in of

David Williams

there kind there? much And of of if way customers, is end the of trying there? the to [ also need guess understand demand magnitude any parse burn you are And what what And to digested excesses inventory size rate just is that softness out any challenging. look is ], then direct your to out out how there? across that excesses I way still But your to the I disti that is kind know just to be of relative

Steven Litchfield

I to QX. channel. year don't revenue Look, into think the said also mean, I I But as inventory certainly I to I out headwinds growth know, completely of that not think that well, I it still the really, entirety first mean, bleeds we've as start -- I possibly. little we a half is of but got get of clean think is back inventory we'll though the even that earlier,

Operator

MKM. from is Suji with Desilva question ROTH next Our

Sujeeva De Silva

us sequentially I more know, the of could to Steve, So would decline just I'm the less ones expect ranking to you XQ if guided which or decline help. kind you might wondering a across segments. all give you

Steven Litchfield

super rank of Yes. and strong, first I to talked infrastructure, a them, bit kind X infrastructure about, think as all had of wireless them back mean about I was talked we're we're the ramps as that a business quarters, not there quarter little X we going and mean, I if color, to -- I lull kind are of of down. we've up. the X mean, the

doing well. there. accelerated orders exceptionally of going planned. seeing business is that's Optical some so We're as And kind

So very exciting. that's pretty loaded. But again, back-end that's

out crosscurrents of there inventory bounce in back along we down some grow as then half expect Industrial up hopefully that some bottom and the -- of I and see that struggle through mean, well, definitely So grind still in to year. give but year, some QX. connectivity down out the matter, I it pick get a business, that the inventory of see QX. will And think QX. we'll higher, to but and QX The won't it we the we'll of held direction, then I as for start clears, then QX. we'll you that see improvements. half definitely up quite you bit And that extremely first and multi-markets in kind there's of business kind a in broadband in

Sujeeva De Silva

follow-ups Kishore, of other then comments to from your channel inventory, just on looking below before And some question is are to It kind just lean typical sounds guys levels, maybe my inventory is questions. make according out. the prior like now? right take -- the that channel of the it what that of the implying just in I I of what and to was heard sure that maybe want customers terms clearly. you're that posture Is the some

Kishore Seendripu

bias Absolutely is to ] correct. our correction. The [

the in ended months been So question left. is And how the Nexis about I inventory it X much [ talking naturally earnings is, call, last ]. we've we said that at maybe of

go, see revenues said lean a little have ramps especially a got should They Now as if other then in continue. bleeding means that we we that into mentioned. harder we enough we've And some growth -- QX expect zero not and That then QX, drivers to healthy millions on we we the they momentum XXXX. were Steve of be in be and of that practically some a happens tens they got could very optical production growth QX But in exist, happening, to have revenues growth did now nice infrastructure. it, happening here, that and driver.

remarks, year. storage revenue are any then There optical, there's basically, the offering the my going But look to barely So growth on. in then pick backhaul, the up. we opportunities we of in cycle sort on And are year right? expect the product terms right, last but at commencements lot were to latter big have of still a you we our if have motion the real prepared accelerators. once And telco recovers, of of in

a in some PON start side. ramps pretty win will And they're you strong driver. to Now new have design going connectivity the be and that then Ethernet

the a a in stand So importance, commence of think few color. ] I provide stead that listed cycle for think sequence That's to that out happening good a you come. should I product been [ years should ramp, in healthy remarks now I've prepared very

Operator

question next from Rolland Susquehanna. with Our is Christopher

Christopher Rolland

about So selling year. your AECs, you transceivers, talk are into you these traction? Are of if then mid-'XX these your around Are kind programs that ramping next market us Can special PAMX guess, this you competing about. you you differentiating from I to talked guys AOCs, you and what versus cost of more in value could, Tell DSPs commentary, are then is are a lower gain prop? faster? where How going in dynamic? power? and kind you

Kishore Seendripu

a right. $XX-odd Thanks, corner The through phases, Chris. in right, will that more a year. absolutely year, [ calls doing Yes, hopefully, We've in ] of optical optical the this place said very few in turning expeditiously. are like we're last is we be to a that got revenue you're here. million I the earlier, But get next teens good

PAMX And so the for right? feeling XXX-gigabit clear, X-nanometer, are It proposition only very in DSP I we we increasingly the very, Like value the production-ready, market is bullish. said, -- that is are and even XXX-gigabit PAMX.

excellence but Obviously, is integrated crude comes of the given modules. traded [ off naturally, are lower One higher of bill for factors. from power. integration, ] performance and a cost lower drivers cost power and laser be customers' can multiple advantages the power material the of did of the So that we and is reduces levels

way have only generation this enter we is because drives our this been that these -- investment of marketplace. have while differentiation to been are in vis-a-vis position second what a is market the shipping So incumbents and for who

easily said The be the of about optical speaking cables. currently, that is active biggest part the optical next the are transceivers, part revenues having market will the of So and we're that, market.

XX% to market. the in X As I've from expect active the cables we about now before, years electrical of said

today, cables solutions active of of land much gives is remains efficiency far the other So we as is the and active PAMX are ] between whether differentiation be and or not for that the years laser And such X and differentiations that And to they the gigabit active purely cables optical to about various XX% gigabit be as drivers the expect speak analog the we there DSP the -- per phenomenon respect is are XXX markets electrical [ even from as color. you in components between it overall XXX to now, hope there electrical piece to But X% cable cables. I sufficient power seen. with move market. smallest market. active electrical DSP concerned. But into

Christopher Rolland

a think from revenue. as largest that companies, of Perhaps of you've second all trough Yes. one. you've our peak trough, has now peak MaxLinear I probably peak X/X lost the of -- covered to to

off So sell-in company quarterly What is you right of do sell-through, I'd demand to higher view total than term March. more ] normalized customer XX do significantly view that? over million? do rate for for is [ basis? you it, How undershipping know you on it How a time? call inventories? that that, love now, including run $XX just you guys it longer versus what think a your And think you Is this, do

Kishore Seendripu

Chris, up you then add let color can Steve, maybe the here. more me question, take

X/X think the the connectivity broadband business business. I and effects from you're Firstly, referring to peak the specifically to

Christopher Rolland

businesses, you're at XX but and down X.XX you ]. to All were 'XX, in ] June of [ [

Kishore Seendripu

Yes.

And So on towards -- our half that expectation we year. of phenomenon. reason overship a is parts the are is right? growth quarterly Number extremely is be and second happen also to the expect of we are transit demand period, this during true annualized, this then is business, on we a undershipping Obviously, the the to one, demand flip the here. as certain now, pandemic that's that just side right quite we base

billion X.X it, billion That's to XXX do call ] $X not the just here, to somewhere approximately you [ an logically XXXX portfolio legacy changed, Naturally, [ in ], going answer the product be right? between, the in saw okay? So I'm between, So [ the as somewhere mid let's ], maybe in portfolio, I has $X business. to right? would think assuming a math

Now need Quinn being pointed -- the being healthy other out, of swift and once more growth in drag looking forward, a phenomenon revenues which the got these X which to people be particular so, see fraction most the one get then that or business, much the or product cycle we hey, is in predicting doing in company small of as months $X all interesting drivers, so, true a about, new that be looking range get down little years assuming to should business we years billion X we say, the and infrastructure should that talked you are there -- and recovery very manner. to to what back, recovery PON very, X and back back will inventory we next extreme, in

it about even the fundamental there's only in share businesses There's past, fantastic So cycle that We I X,XXX the that out And the the the in to we basis. cadence forward. go building losses. care quarterly [ a last elephant improvement. quarters, Explaining hangover is problem about on product inventory and times nor one growth run smooth portfolio X ]. -- the we're here in portfolio, things, which cycle think looking context quarterly room, in we a of and longer do no

and fact, market In adding they're more our robust portfolio. expansive to products

going So well development feel I that a should is think you it execution product [ perspective. sure from ] very and launch

Christopher Rolland

[ Marks for sell-in difference between a you on sell-through Do hazard how ]? and guys the guess

Kishore Seendripu

and are right phenomenon quite pile I the sequence. are gain tracking right? means to we selling But wouldn't a demand [indiscernible] only sell-through hazard now, the is That's guess, significantly. a pretty extent undershipping that but the healthy. which it's a natural we up, that inventory

burning down. inventory is the So

Operator

Our is Tim Capital Northland with next question Markets. Savageaux from

Timothy Savageaux

First question on PON.

for -- in mention mentioned did you think $XX you I million revenue 'XX?

Steven Litchfield

Yes.

Timothy Savageaux

Yes.

Okay.

a I to looks end the than cable, you be than your of the so different year if would that of beginning like be in than lot I've whole greater of the case imagine of way to QX guide that order X/X at what PON broadband greater And and the of revenue. for revenue? Would PON expect 'XX? be that for And time begin expect find will, magnitude And if the will first a accounts by the And mix it to that it for then you so, maybe XX% you the ever. looked for follow-up.

Steven Litchfield

Yes.

than so talked about $XX Tim, that the doing less I So million, in mean, grown remarks ago, about years right? prepared Two million. we we we've $XX were nicely,

we've timing ramping year. to market point last two tougher. quarter years, $XX certainly, of grown a had your this the about last so highlight even North big So I guess I America a in environment, But or the has that I would million telco we've it, acknowledge been rough

in business the More exciting. So I over years. channel. double we come. can inventory That mean next we're confident to the this that's that has also two market

product some lot got get through well. headwinds. this new A inventory we've to as And product so is of

this the [ half roll $XXX naturally it, XTXX will of that that So around highlighted. and that year in we exiting, out of gives ], back us this and million kind year, particularly confidence target call in

Timothy Savageaux

I'll than be be. it in like that leave seems but half It 'XX, should more

Steven Litchfield

to didn't be how it say much in would 'XX. We want

Timothy Savageaux

you you I have. didn't. wish I realize would

Steven Litchfield

point. your see I

Timothy Savageaux

And facing On obviously by comps last obviously the infrastructure, of good you're wireless. year, half year from this the I think tough some in first microwave. year growth driven

in in that continue accelerate? what you was growth to Can challenge $XX be grew So a 'XX? on $XX basis you I that be, percentage million again coming But And a going absolute dollars question I 'XX. infrastructure ]. in grow. think might million off can assume think My you will to do [

Kishore Seendripu

It of the half whatever depends in data up because the center back speak, this to infrastructure wireless wireless The we up, optically a is slack. the lot on in that businesses. telco seeing a year picking be so in hold are softness will bunch whole giving spend the first

factors X think between mix accelerators really new Ethernet definitely optical the ones, wireless growth a will it's big I storage of So drivers. and be being

what last steep So relative I'm year, a positive hopeful it's it's call on I to but edge. a

flat come or really a could better to definitely expect we 'XX. do but So better, it back

Timothy Savageaux

margins? that, that's expect in there you And do And is, for me. for which the segment 'XX, some to gross infrastructure as for the uplift mix-related extent a largest me likely it And last be implications case. are result that in to that? of What makes question the margins your

Steven Litchfield

in absolutely gross identifying that is infrastructure you're higher So margins. right

becomes as and gross continues see part the a so margins will portfolio And yes, bigger of infrastructure improve. to grow, we

confident business, XX as I that the but highlighted. numbers, of we some we through some of about grows sure portion work as in points mean, year a be back of pricing that I the business margin certainly towards puts we're it gross with of that's half going typically, kind mean, first pressures. challenges I I takes think in see look, for to XXXX, revenue modest think and as the that not see as said, tougher. that All the will these very infrastructure in can a downturns, being that little percentage a big mid we've kind our of movement lower

Operator

Loop next with question Our Baruah Ananda from Capital. is

Ananda Baruah

I of solution. follow-up XXX-G TAM Steve on you Any And guess Kishore -- qualifications? you really I I can can provide with on your provide the context business? like, that -- anything can the And kind are one, as well, any you TAM opportunity, think have really how where context qualification is is first guess, and quick over this term, qualification you then it about -- XXX-G you the and provide on long guess I in opportunity, a your the also. TAM, is

Kishore Seendripu

So X -- share XXX-gig now, you're market DSP entire the anyway, They center addressable in XXX-gig, that's from plan referring composed sold, XX% XX about PAMX assume bigger. million about optical of Really and some uncertainty DSPs terms XX% of the business our But you is is data all around market speaking, We being is all $X.X of see DSPs years to PAMX so the with XXX-gig we over reports indicate the One transceivers let's components. expect activities the X of PAMX to like is units silicon. and that in is DSPs. of all which does billion about PAMX phenomenon business. business. and exploring of -- level be talked business or award to AI

XX% $X XX% Our SAM X XX% the of us it, of call close expectation for business, first plan business, is business [ from good to now. the XX% And to in in the addressable be phase. we of a would victory ] that let's years of billion that to have

think should I that, from take the design extrapolate be or that can a year. from line pipeline a top the bottom-up basis, So you aligned should to give win expectations,

So be. right? generation offerings, you're our million in million big looking this $XXX can And at we that anywhere optical product of between to expect it $XXX business to current how be revenue, -- ultimately, of

Ananda Baruah

in that's call of appreciate That's good back really context, Kishore. awesome. lot on the No, that. a regard. I'll follow-ups that do Yes. I

ask quarter? And just How me shift linearity I quarter? And there of guidance during it is you some was Let month I evidence Or gave quarter, of guess, a softening the of December here that's a the you is saw guidance. And in for guess quick. in December a you there ], [ meaningful is linear? you're it the through what a me. entering end the quarter? product really this the

Steven Litchfield

Yes, Ananda.

any kind the than of the down we back-end quarter. the quarter. means. that. So knew by loaded. around going fair certainly we by I we would it don't this uncertainty And industry, prudent it a throughout that be, kind of felt a the downturn. it's where don't in think and given somewhat thought be think inventory the kind some the more through outlook there's expected. was were backlog that think It of had would but surprised as little deteriorated get I QX also Clearly, of probably I it We into We quarter amount

mean, the I tough. quarter in So yes, linearity was

are we People to, things the are inventory. decent there. are that some those What like the look getting drivers? we're what the I bookings think seeing looking mean, demand I improvements new through

And the signs to and the those speaking so even signs first that start encouraging as we are year, ever of see we the those see to month improve.

Operator

Svanberg question next Tore is Stifel. Our from with

Tore Svanberg

had ones. Yes. few housekeeping I a of just sort

topic very lead at the meaning load So maybe is a on order quarter? that ] given chance times? times that assume is And that quarter. the they last the function short [ the short But end of DSO, also obviously, the of just in customers will the a lead backend can that a now, profile, a lot quarter this even of maybe there never really

Steven Litchfield

the the We've how the case. Stephen customers [ with overreacts. comment ] come seen to Kishore's about definitely think industry mean, expedites. I that's I speaks in

They're they times. a times than lead at lot ahead have what in end, and yet, of inventory. is, they've time during right think waiting cases, in it these lot they a that the got a minute. of get don't to inventory happens what proper of seen out what but so some lot customers And over the hoping product cases, we've that's and I of of a last order industries, there, the lot rather And

current quarter. in we So that I to continue wouldn't surprised see be that the

Tore Svanberg

OpEx you've the like in initiatives QX. it done, doesn't a on be sound that will big Steve, impact And there

more we will So of beyond? impact an have in that this and then assume QX should

Steven Litchfield

fairly So talked I offsetting existing meaningful some did yes, we the the we They OpEx as -- previous take on were front. call, actions so kind about of in spend.

we declining that that next had and number a also contra they dollars NRE were year. be of ] expenses, had [ will We R&D

So the spend. the MaxLinear to typically what see cut get bonuses, think definitely We're do payroll the OpEx back has the taxes, first year. that's rolled mind, would down also dialing these it was come into things year. Keep I that, I during fairly from downturns. actual you expect like of But the sizable. quarter throughout in that QX

always it's little So a bit higher.

of end will We QX expected QX. mid also costs of or have are -- more the come not restructuring part that until out to the

actions benefits taken. And see so yes, further certainly I already from

Tore Svanberg

And just know ramps. I the so of the newer sort product

be if business between this that hear $XX I you said right? -- and million DSP correctly, I Did the I PAMX mid-teens year. being sort So could caught this think potentially of

Steven Litchfield

I think an official -- we have what That is exactly said. don't guide. Kishore that's

think in ballpark I our that's the of expectations.

Tore Svanberg

III Panther And like would be -- or you DSP smaller? expect Panther double III, I numbers of optical think similar that sort to

Kishore Seendripu

In range. the

Operator

Shannon Richard from is Craig-Hallum. question with next Our

Richard Shannon

a I guess business. fiber on the I'll question ask

a it second $XX Do up major here. and North base? of of ramping doubling X kind the talked are And so about well? mostly kind Is million to within business not? American expect years? to concentrated that it a within kind or about geographically year, a -- of customer that being, of as it's think, expand in talked Tier just you of talk driving couple you To in a American doubling last X the here I operator operators You North U.S. couple degree what years about

Steven Litchfield

transition adopters. So of we America already they're even opportunities platforms out well We certainly on. plenty about kind talked we're I fiber. as those DSL North working definitely have newer in Europe a X, so of also working mean as lot the future They're WiFi do of on guys folks. into

have number there. of a we opportunities So

-- those The the one ones. only other customers two or aren't

revenues Tier X North been that would that and some continue and to We in are guys driving also XXXX. this year America revenues, driving and I expect have into have

Richard Shannon

asked context, business earlier of share Follow-up think and about in in the a other this over topic been to getting couple here the I here XX% of today goal time. of it's by people DSP on a

year. As mentioned through later within expectation qualifications this I Are or of the and next we you've gone here year think your ramping your you've for track, ongoing and still over on some kind that to Kishore, coming XX% into Maybe getting how on that still years? good think a Feeling to play. comment goal I some things share few kind go. of pretty about just of that's well that.

Kishore Seendripu

new happening. and talked early-stage we were bigger into are second alone in Those Well, now. out, yes. are should both you the And the the the the in get calls about. ones said ballpark those numbers out window I mean, initial the the we to we first then half. X-year work are time revenues pending there said ramps for will If pay ramps then

sometimes really end the whether of slower than ramp So terms has not some expectations. noise we is XX% that it is customer it got to our rather in getting the around get share or

out. play the that's about numbers the numbers reality of to if So year's spoke vicinity hit we in our I this think that's I going

Operator

time. Seendripu to this no I'd comments. any to hand are for There further back the over floor Kishore questions closing at like

Kishore Seendripu

momentum. drivers I to would product So position success our to are that and XXXX, design The gateway cycle and new those to growth closing, like fueled say in in infrastructure, broadband customer that and all access, expect will are to beginning and the being we happen launches in thank our about continue Ethernet-wired we innovation WiFi, our they're excited drive In traction today by XXXX. optical market fiber product win market you.

in XX, and ] Technology March Conference an products to February, [ this marketplace. efficiency, ROTH [ joining in Conference in Francisco on the focus future XXth participating as all exciting be JMP we As value. for the creating in us you X, on York continue on will in always, operational reach Thank on forward strongly as our for ] we'll the Capital Loop Technology March shareholder speaking Conference fiscal quarter Susquehanna with really on San York ourselves full Point to the soon. New today in potential you their and ] Data March position XX. discipline look [ we these With that, Growth Conference the Capital New again

Operator

This conference. concludes today's

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

MaxLinear (MXL) 31 Jan 242023 Q4 Earnings call transcript