MXL - Earnings call transcript Q2 2024

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Operator

Greetings and welcome to the MaxLinear Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Leslie Green, Investor Relations. Thank you, Leslie.

You may begin.

Leslie Green

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

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

statements which MaxLinear Form we of as forward-looking quarter to any of our uncertainties, of addition, and relating product financial of growth execution In addressable XX, limitation production geographic forward-looking launches risks statements. no substantial adoption make of ended will technologies, for Any opportunities and across turnover, of update uncertainties operating forward-looking XX-Q our in and we without obligation share involve certain inventory channel for demand forward-looking and for our future and to June trends, are and has of filed statements the potential filings, the concerning XXXX, products, markets, plan, and business These statements markets, opportunities, and made measures. cost risks today. including SEC timing including recent today, Risk various and market, Factor reduction our new our revenue outlined or section including market such products, in including total our the statements target effects revise results,

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

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

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

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

Kishore Seendripu

and Thank you, good everyone. afternoon, Leslie,

data $XX market, end of Our a and as optical wireless million progress we XX.X%. access non-GAAP with QX center good design with In revenues interaction continue as gross well were products. backhaul our make to margin infrastructure

We of to revenue expected optical target are range on XXXX. million to exceed track $XX million our for the $XX high of end

prolonged excess by the of buildup during supply chain customer our weakness demand the inventory are burn-off the disappointed to due We the crisis. broadband in

compliance softness recovery affects resume that the continued confidence QX and results is and added our factors our 'XX. Owing shipments, to we with telecom R&D in seeing guidance. Despite in also from years. to now only our to accelerators, slower TAM, for ethernet open and several cycle last several center are growth storage tensions a which U.S.-China interconnect, us anticipated, revenue significant but requirement. the are over make X are We regulatory drive markets concerted products XG discouragingly QX our products business optical launched give growth high-value multiple ability PON pressure new impacting This than of the have spend connectivity. broadband including new access, These multi-gigabit Wi-Fi to enterprise wireless sustained years, and next markets, in X data poised we well-positioned not

growth to As R&D we these ramp and strong our spend investment products considerably. large profitability moderate as a expect starts result,

to demand of down year. markets the though expected come even second in in Additionally, our primary bottom the inventory continues remains channel half is and weak, to

have above Our for run a sell-through our our in revenues sell-in row, with to times revenues, continue improvements and lead for meaningful seen orders and expedites along certain both we quarters X in bookings parts. within

year markets, positioned interconnect, optical particularly we to our solidly to exceed high-speed revenue turning deliver Now, $XX run are 'XX. in rate meaningful exciting growth our this where business, and remains to million in infrastructure

center through of be We one and to with in the well lead are production data customers progressing in others. second our qualification the year with expect half of

wave Rushmore also best-in-class are growth We early revenue Rushmore QX currently several PAMX prior quarter DSPs the versus significantly next lane our terabits a the through was the needed strongly power not Rushmore X.X grow on PAMX compounded in XXXX. In network. are market solidifies market over delivers Samsung's data data the in grew service of CMOS, XG cables. for but shipments rate growth transport continuing consumption time increasing revenue years. adopters in microwave gigabit capital of that per environment to transceivers, provider XXX slowly, XG hybrid optical of in and and annual estimates active expenditure and second the XX% for on family Industry difficult face will technologies densifying definitely leading-edge track it to per by only speeds. Built required millimeter our forecasts deliver This backhaul center for driven support performance but long-term a across rates cables, electrical active market competitiveness, data spend. wireless optical our and SERDES infrastructure, optical

AI. product and computing wireless is over opportunities, III enterprise to to Panther revenues, for $XXX years. Also, line exciting can in next of storage be X enterprise hardware X hybrid our the incremental all-flash million storage backhaul appliance particularly accelerators our in within and growth a infrastructure and systems We the providing series array growth believe access light the continue high-speed

port with XXXX and X we in in growth gigabit switch connectivity, with and for our enterprise X.X Ethernet X switches to in port additional this enterprise markets. TAM Ethernet expand production business XX beyond. In announcement currently QX are expect year small a with ramps continue and continued for OEM later product medium large PHYs We and the family and and the of product

XX customer including million to growth enterprise X Our on production growth and to We ramp SOC, XX-gigabit XX American in Tier coupled on with over routers, believe revenue and based is mid-XXXX gateway run year. for front, to fiber the OEM TAM Ethernet business, broadband next expected North reach the we by our design single-chip solution. integrated months. Shifting and could tri-band are processor our our X PON contribute Ethernet single-chip significant rate next the to platform $XXX for to interaction PON focused excited and are Wi-Fi new broadband our gateways

XXXX. In multiple and us major and recovery. including a and promising market in engagements XXXX I optical in opportunity have believe confident we our ongoing second infrastructure are North become Tier as a which interconnect excited even products, for We in with American our currently, carrier, wireless can conclusion, we broadband we the progress await

all meaningful X, customer the In today Fiber addition, our traction TAM. addressing storage, growth. have market new are Ethernet, poised and and strong PON, in for gateway products are They additional Wi-Fi are

me business Corporate transformative We are Litchfield, value to Officer. customers which Chief now be the will our our and future Chief optimizing our these Steve that, over our driving turn for and for Officer while Financial maximum around let call opportunities, Strategy efforts shareholders. With Steve?

Steven Litchfield

and was Kishore. revenue Thank million. GAAP primarily delta second million, X% $XX million GAAP driven $XX.X quarter connectivity second asset the of gross the intangible $XX gross acquisition-related revenue by was $XX million, Broadband million, second for $XX was non-GAAP approximately XX.X% revenue our down non-GAAP in quarter the the margin for Total industrial previous $XX the and infrastructure $X.X between was million was you, quarter revenue quarter amortization. from were revenue multi-market and was quarter. revenue. margin XX.X% second in The of for million, and

GAAP were compensation was of operating accruals quarter $XXX approximately million. million flow expense in million, $X.X due stock-based performance-based XX% $XX QX. Non-GAAP expenses and was initiated and expenses non-GAAP approximately reduction were other cash The for quarter million loss primarily used $X of revenue. million GAAP $X.X cash with non-GAAP to the net and $XX.X and $XX.X the combined and from QX, interest XXXX to million. operating between $X.X in costs and respectively. In was million, activities and non-GAAP equivalents, XXXX of operations operating million restructuring during expenses in was operating of related QX and We delta cash, GAAP cash. QX equity exited workforce restricted Second

Our day days. XX second the sales in meaningfully quarter to was approximately down outstanding

guidance our in with inventory be make down gross quarter inventory Our also to third continue currently of of expect turn QX to let's for revenue quarter million We our $XX concludes QX results. With previous turns as the that, we to versus improvements and at XXXX of XXXX. financial X.Xx. This was $XX the between million. discussion

by QX market, down, at and industrial to to infrastructure and expect to be Looking end slightly be broadband connectivity be up. to down, multi-market flat slightly we

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

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

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

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

approximately QX We the align end structure and count our the the diluted slow in process have and push be GAAP the XX.X to share outs started non-GAAP to certain recovery on current markets, environment. we expect our million. Based cost with

now expenditures top-line an to to finalization to in benefit estimated confident The expenses the XX% operating begin fiscal in in we reduction and includes this realize our growth that the operating meaningful coming reduction can for feel QX. We fiscal expect over XXXX years. and achieve are savings XXXX, dynamic still we'll accelerating but of navigate with We while important strategic complete. XX% groundwork focused spending. In see approximately and which growth. initiatives for we product several our MaxLinear downturns our is to and discipline closing, through business fiscal drive record a of future investment we laying track solid that our applications strong has managing key will a environment, continue

exciting positioning and storage, fiber across infrastructure, a number innovation Wi-Fi, high-speed broadband optical Our of interconnects, in wireless solid execution markets. are well Ethernet, product access gateways us and

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

Operator

first the Our line Instructions] Svanberg Tore [Operator Stifel. with question of comes from

Tore Svanberg

Yes.

much how Kishore, are the in have what about here talking telecom? could of in restrictions first the you And you revenue could -- we sort said elaborate bit make much a not to about not being had been my little place, question, able more For you shipments shipped? on how what

Kishore Seendripu

Tore, that's right. exactly

Towards that very well. some you and for Steve, the in we of later products how government revocation quarter, impacted With to We license a some surprised to prevented would it industrial quarter. it, high were so got products in to much technology as join? ship from the us, regard want us shipping revenues low technology

Steven Litchfield

Yes, $XX results. an And it Tore, number, it's million. in I range $XX on a second of year, the $X to probably quarter the order million million million but will hard have the to have don't in mean, QX for $X impact last half I of probably the or

Tore Svanberg

infrastructure understand And about a being as little still sort flatted PAMX so I down segments, by given bit especially guidance the of I'm is your broadband but flatted surprised far your with down, DSP. momentum as in comment why

a mean strong that is that QX in does there ramp? else quarter for be PAMX Or will category? DSP on very going actually So that anything

Kishore Seendripu

track. optical the out. so track -- which is optical was actually, wireless well you're the on the on of so infrastructure QX seeing that doing we're on X and on broadband playing weakness blending very side. was Actually, the -- But The

well. expect I qualification to hit we were that terms on end process. a or out, different we'll story and it's are ramp high X that play of wild X think or we have track said we're If the categorically Obviously, as the there exceed that. whole that in cards

confident being of range end high or we're beginning end that the the we're hit we'll exceed while even year. of cautious set at the So being high the we the

we're So on on track optical.

the So really story showed I weakness. some infrastructure. do wireless at with It's would as it infrastructure the not why to look

Tore Svanberg

then? weak, the QX, same growing? for but Wireless again, And optical being actually that comment is is

Kishore Seendripu

That's correct.

Operator

from the with Susquehanna Rolland comes of question next Christopher Group. Our International line

Christopher Rolland

a inventory talk Is the just I'd half. So how you're to that in that? beyond something think as the I we understand, competitor getting pick demand, it's something all or that? of stop you to like saying see guess drain's seen to XXXX, like or about start into about then it? we segments? And hard we Have 'XX? end up across move see is can structural as back here some Do going return anything modeling Just And there revenue. share a shifts the they we to

of So great. moving these parts any be would

Steven Litchfield

maybe I'll Kishore have and start Chris, to add. may something

first the We to to see I seen guess say, that mean, we've inventory there. some going particularly of -- so right? do I And year. dissipate move struggling we've mean, inventories completely, like we're seen -- channel I we've the Bookings throughout would I So out have to still improvement feel inventories been good signs is and continued down. improve, of

yes. continues to say, has And to of a bit, see coming more much to telecom, and spend sure. connectivity, of Kishore more this but seeing in China would definitely as point of inventory. well. the pressure previous definitely question. Industrial definitely as as good kind not at The We this more. Broadband, CapEx do answer that see do infrastructure, mean, expect pressure for continue year. But is that dynamic But in we've it had weighing progress, weighs lot QX So spoke there. are have we're improvements I just QX we about the we good quarters as going. the There's a then I in of improve? that would industrial, I to thought I that things There's got

Kishore Seendripu

I I like had we the elements. to our that sell-through at it a for. sell-in, inventory our would means is is to I call, up X situation what So than are just is hoped -- What that, The while that we persisting. higher would add than chalk lower dissipating speed but

they're Now, being is there are impeded choice. a this service expend is operator And that to make the decision also technology while really that would playing conjecturing. that trying I cap providers in itself have by, been because say, transitions out, the

XXG, ultra- DOCSIS X.X. And example, on to then and gigabit X.X For PON. from the XGS the PONs to DOCSIS side, fiber and gigabit DOCSIS switchover X.X

that And freeze go behavior. classic also to which so alliance way creating between is some choosing

of orders. we're shoots beginning some think I in confronting are terms said there that. Having green So all of that,

inventory commentary is positive not Some from our coming the the Unfortunately, OEMs depleting. us. for that rate at

how away that. situation So starts? and the are first end positive -- logic to So this a of dissipated happening? the think the inventory does dissipating year recovery are I things sum indicate by up the would half

strong PON what we X what that given They which and through, Tier gaining just say are actually that more so right at we on the guided on just we went PON growing we Now, the would already spending to acquired. level, side, for player seem the on I seeing definitely acquire the XXXX be and recovery momentum side, are share. share need we we to

Christopher Rolland

'XX? this let's half How you half your is back on -- your and for into or for Like, had. that Maybe QX it backlog say commentary businesses? second And Is on as various you month-over-month, is what just coverage a even follow-up tell the those quarter-over-quarter? backlog does that, what on on coverage number? strong that the about that improving booking example,

Steven Litchfield

So, we I'll yes, prepared talked about in in of mean, X seen that. bookings. Chris, remarks quarters -- take I our we've improvements we

it's weighing would but seeing the We overall the normally it definitely to shared I'll are the Yes. expect be out at. But market. quarter. that turns is improvements on still what are points we break levels improvements? inventories echo But down. demand our earlier. come kind still the of do, that seen seeing CapEx definitely we Kishore at to We've We back don't of quarter-over-quarter during we not

Operator

& Bolton with Needham from Our Company. comes the next of line Quinn question

Quinn Bolton

of want row been Chris's down. just on guess of question. sort kind coming I This where been follow-up X quarters has in I has a to now revenue

in keep see peers other think guiding I down. starting guys about, to that -- every you're you quarters one many I future recovery. revenue the see semiconductor to almost talking a is started starting of think digested, inventory companies is OEMs revenue to Yet indications what from increase. And being your have bookings

to that just legacy in help why revenue the some and getting reconcile got you think I share markets. digestion bookings, and And the going through inventory in down if especially be loss, in us can't could there's improvements broadband those I keeps so wondering help connectivity. And but the more

Kishore Seendripu

there to competition. our that There low elements operators And X.X, CapEx model. X right? long-term due -- under this, to have have subscriber have I agreements is are There share shipping losses. markets, what the situation are refurbishment they DOCSIS legacy the signed a call subscriber, lesser with an implicit been and facing They been

is -- shift possible. So it the technically -- could shipments you potentially may share is of amount a

a from we technically product new the that could design wins. have we wins that, perspective, future have Having I losses. signal say side, and in can on PON we However, gained the new so share design are said yet winning think perspective been don't there design that that

I of think problems of of and the a cable broadband source revenues. more, been subscriber the are citing has here the the are state cable commentary our which a to you the market dominant spend,

And think revenue theme. that technologies, That's always BOM, about. Once if want when which new probably that to not reiterate a they the the we're back the I transition XX% the and we even to as can impacted so minus happen, to get is been I plus dynamic is new content increases, ASP share as again, The overall shifts the the -- happened, talking much, XX%.

both a content wins. is market PON large grow, side and have the market we where On opportunity in to

the where from. think that's growth I come will broadband

same are we All sort the No, about do are So we and of as, are the constrained this it not future. look investments is at not. in. the the then are to I market in, we absolutely market

Quinn Bolton

is, broadband I $XX $XX was million was obviously guess connectivity there is million quarter. but Yes, down, last this just, quarter, I

business. loss You there I think share in hard guys, think did 'XX, in there. million $XXX over that It's that isn't to

portion just like Can could about Ethernet connectivity run business you Wi-Fi a talk $XXX rate, the you of on which business lot of see what that million doesn't talked the here. front? You've there's feel get on tells me to it Wi-Fi and going about

Kishore Seendripu

a firstly, exactly The the of Wi-Fi They've on dynamics attached that, same hip. So the on dynamics the color bit cable business. the on give been to of are want little I at right?

$XXX business, about broadband $XXX So the there. million was cable, when we did somewhere million, or million, $XXX predominantly

the the numbers run the So much. change percentage Probably don't math attached can you the rate. of at

If of you versus just the take the dollars revenues. percentage Wi-Fi

augmented to the does Now, what $XXX not a if rate or at to, that, that say million be much alone I Wi-Fi that get sufficient, get wins But Having the potential recovery look the you Wi-Fi was that, Ethernet Ethernet Ethernet we about commented business, recovers run already would have broadband? how anything certain the will Absolutely. guidance by a back know we to. cable fiber. specifically but get in existing can about will in in said have to

the So recover. for to market you're waiting

loss terms what So attach broadband to platforms. on we this of share is not It's our Wi-Fi. about in

Quinn Bolton

then a just And quick one for Steve.

right, to that OpEx sort of any or of start it that right average, taking of talked to in Is OpEx into the the then below shape would Just and QX to If XX%. mentioned of $XX sort half the decrease I somewhere million that to And doing You average math year? it level. non-GAAP in heading I'm for does if XX% sort OpEx you of the level think, reduction? trend And an to in right? about, reduce the in OpEx actions sounds second that's year $XX million like my XXXX. annual higher

Steven Litchfield

So is your sound. math

thinking but to that vary quarter-by-quarter I about right. it's the into I'm like on it it's that mean, it. granularity exactly And is going get year, I not not absolutely next we're you're -- think way much. shouldn't

put that it way. Let's

Operator

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

Ross Seymore

to that I to be full on kind not OpEx just full you year I make exit Just of is That's do don't know want exit rate XX%? XX% That's question. Steve, it the Quinn's rate? an to Just year. basis, to clear. right, follow-up on a the have sure but linear to to

Steven Litchfield

Correct. Correct.

Ross Seymore

willing At issues not that company puts one the the the is of whatever grow guys point, to as on just ability you can sequentially? Huawei guys one Cyclical the takes the think stuff grow that. the about would be rest obviously, the in quarter or wins, that, the you can forward geopolitical to talked And are fourth Do to versus if you be hurts whatever comment into the year. now you you're and aspect helpful. for look quarter? go design that you would fourth Sequentially, what specific

Steven Litchfield

been Yes, been guide QX. Ross. Yes, it's frustrating. I'm mean process. clearly, not of feel like going it's kind I to I bottoming But a

progress. think I good we're really making

improvements. So We've exact going I'm not that. I been good actually see do think give time date. at super you to we'll the not and some projecting

mean, has as So indicators, the I'm general about talked to I far not talked start about going sell-through now. in as But mean, We've been bookings. very we've I good.

are, those past. the talked good in indicators. course, of I've So

this. see inside of kind to continue ordering lead in We of time. specified our customers frantically see come We

something on, that's of waiting I definitely of even a flow is, that course, they're the clearing. And across on, are see little money. industry, of expedites, to is but as broadband hear demand, mean, you're still these on that inventory things starting think from the good feel that mean, mean, a some that. subsidy definitely of I of the budgets kind the you that have federal bit, as I previously some like somebody invest to this that can commented customers end you some else indicator spending So ease folks that I to we're side starting starting money CapEx

Ross Seymore

it question, bit gross volatility, revenue seems points on given clear stable your but want of so, midpoint a the margin cost finally kept cracking What's impressively reason last Is out the the you it things, long, cut it's margin revenues? that basically very is that the Or the solely related you is really side have guidance. very the of like And just couple a because guys at I to gross guess down given the price to of guys action coverage sequentially? just fixed inventory? there the

Steven Litchfield

so The think the are quite there's it of competitive, -- down markets call. has I mind you're some mean, bit in changed And I I say an And going can down as it's be so. naturally, a impact. at some much. more I I'd that certain mean, China markets XX%. gross grow, prone stuff. positive bit keep a the the mostly across those fixed It's outlook you're -- midpoint of Yes, but I absolutely that little mean, and contribution our having the to and margins. that's mean, board, is don't revenues this We talked right. is a see it more to to are I about earlier long-term changed to hasn't think in infrastructure all, don't healthy, continues mix cost.

Kishore Seendripu

what the no would volatility the I been and point, the mix. the say, has good used X% always biggest a on the we the it in to Plus pressure would done But cost always be. to that. fixed is there always pricing is contributor say we've center than is different job minus but

and little bit a We of have we that have some competitive. great are combinations price markets,

coverage, in is the It's you're my biggest So right. fixed Ross, cost opinion. one

Operator

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

Ananda Baruah

across just I businesses. And from you do quarter? from see I just, guess me. guess it the that's one the the this various me, linearity really, how Yes, through I

Kishore Seendripu

because customers, Steve what it's is I about different distinctly you we its improved, had business. talking bookings. no pushing back that's last it, increases quarter. it's X/X right tackling. towards of and getting and become we than into prodding call had this we're I what no remember head what think, turns really, as business heavily this turns but Entering urgency would them. It's the loaded The blocking way really, now. It's quarter, I

wouldn't would the second with grappling a I guys the are half it's it the and customers takes situation. say in step I of say sales the So linear. quarter the as up

Ananda Baruah

strong closed it it been of case have as as a it is to? might just being able And

Kishore Seendripu

repeat you please? Could question, that

Ananda Baruah

Yes, been guys so what you closed quarter? So the could? it the end close? softer that really the is happened pace of it it thought at towards Has

Steven Litchfield

kind and it Yes, I I mean, mean, Kishore of back to was begin with. as stated, low

And mean, the pushed into I kind so that's things of... following quarter. out

Kishore Seendripu

So not disappeared, the right? but little the if in revenue next we a spoke then case the should because namely disappeared, China is about the front, pushed that quarter had revenue bit more quarter, some on be And some it this that about. energized we

Operator

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

Karl Ackerman

I have X.

XXXX? off, size you and of single the your what frame help that U.S. sounds X could in that Tier fiber gig question, gateway? PON -- the integrated what from chip second versus XX First you dictate from processor carrier ramp like And if PON guess address the XXXX opportunity I would

Kishore Seendripu

So very, question. very good

assume we platforms turn gateway is X OEMs. are on America what offering you would don't You can rollouts, Tier latest kind. on players They if volume splits fiber let's Half have call, North in sized into ours. similarly at into they you look their right? PON, main the call, So their the are kind. another one their players That all from of only that X the,

shipping which of we the on operators the $XX XX% you, gateway a And a that's curb be fiber them right? just go. of high year digit revenue, we're already side, single how opportunity side, on That's could ramping a these And it basically is per get assume, just home. at that. opportunity. the ONT But revenue or Let's the termination, mind share million sort

of what It pace dictate that the into the is say the would I opportunity. And plans. the win gateways? really size design of would their So that depends rollout on

and like their on hitting milestones They're So RFPs not things that. they've far, been delayed.

of next sometime on at end the there there. CapEx are So considerations They're year? always

exact what the would right? or the matters is you a I it's at these of cover scaled that's you be say other. 'XX, predicting hazard. business are has time been we the are on, So not. really Tier why timing you winning company, ramp each range. And to that And In a So Xs 'XX a cycles build product

chain supply those now covering that years. that the the X we're are big overhang faced exposed in So gaps of we last have because

Karl Ackerman

I my may. follow-up, I guess if for

back taking is on go quickly CapEx, being completed anticipate? that these are cut to you the back to you CapEx, on primarily importantly, spending turn meaningful in I Just guess a faster are modems? programs could how And broadband more a event than but on recovery R&D you

Kishore Seendripu

on spending that's you And behavior my not And plans future, invest Obviously, other my guardian some spending problem. are we okay, do based There on to personally, is end. think right? for I'm Yes, income. the plans the about have exactly man. of is side -- household a the children our are in how my your

So items a spend all nearing motivated next products our road that the needed generation the customers by been are heavy produce of have that to map completion.

a invest optical other lines faster example, center there an a few So and let's to fiber have a pace than, certain broadband dock are come infrastructure X, that Wi-Fi a data we cable situation for or or because to a continue say, like situation. at areas product they

was happen. think knew phase to I So R&D we're spend, entering which we always of reduced a going

'XX last generation have yet. start just a completed market, right our that have time. generation next the catching there's to by the now. have accordingly, plans, goes spending the the the we down. Tempered the that threatening customers own investments to launch complete that long have fact cycles signals be to exuberant their next also are X it the to rollout They're years. 'XX, that for beyond cycle the in in so their spending started Remember, we already don't And not And delayed X us on

Operator

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

David Williams

that that been inventory is where inventory this guess, channel. just that understanding you is. bigger I struggling guess do of the through about visibility the is, But the first I I in we down question Steve, you've the just thinking think my the is bleeding of know that kind thing that's slowly? do good was through of maybe didn't inventory that Or have you of inventory channel is the kind more think just on digestion? going when this the a started that magnitude handle inventory in you

Kishore Seendripu

I you -- can more would Steve, color. the say that provide

are that's OEMs in how and we the is track opaque, of the magnitude the even times. of And their What kind quantify operators our a Because the shipping. in think is best product always known, we I really right? been actions. of behavior inventory ship very the we cannot the of much

of the So it's not the size inventory. about

So and warehouses their to the how own are add they in subscriber case, cable OEMs. the then then have their And situation, on from they consuming that and it's our refurbishments.

Okay? So dynamics. multiple there are

longer. Steve, the running we where you had at says what anticipated, going what pace So more know And selling want end in. we it, than of to sell-through the to but higher add is that than sell-through is at that's the slower color? any take that is are a we

Steven Litchfield

to necessarily X. mean, think to Wi-Fi are look to constantly covered think you inventory about the talking And at not of really opportunity I disappointing, it's We're I into I platform. mean, -- is PON a it, are transition we focus PAMX that Kishore. the mean, is inventory the that's year, I excitement I mean, -- down kind I I It's is level. the drive think out said back the I next new Right as I exciting we and to new I've revenue. where just that platforms. have, is of I itself. ones going this winning going mean, reasonable care circling go talked but away. making sure a this point. mean, the albeit to, to that before. take mean, little programs these we we the now, it's about, going bit The these we're

David Williams

had booking then kind to quarter XX% seeing quarter. quarter, I and this pointed of the third you first on still we're improving talked you And from to a bookings just that quarter the decline side. last again about maybe know yet

bookings, Let's but be bit booking better improving linearity a of getting improving not to we're seem kind seeing see things the revenue to here begin there, to and to this still would we're side. how try on we square that expect

does guess maybe So where that Is me kind Do and you slide this can takes and there, go see maybe portend could to are the understand little puts downward? place I of to in how a no is how lower? we a continue that how revenue we areas, there maybe but still help the better things declining, quarter? you fourth some think

Steven Litchfield

I and of I a I the bad speaks backlog, it how worth whole right? mean, question. No, anything, was I you year's it's had back slowed bookings it ago, X mean, probably than mean, then mean, right quarters were down. to industry Yes. bookings more really bookings, when the

And some to so the our many XX% expect to that XX%, see bookings, I And that of But business. kind we as right? without case. in mean, the for gets normalcy, of would turns off you time can and live of period was certainly the back industry MaxLinear

that mean, need in And improved, at And be mean, so to But we're the direction. definitely before, are I've much to they're I bookings issue. not level of but the the we crux I yet. them stated that that's headed

Operator

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

Sujeeva De Silva

cost Steve, you year-over-year. about the talked reductions

Or that if you programs downturn? product about there kind still or to, down. candidates there areas. talked road lack starting they're areas a be some kind investment the better of mean, kind any the whether that any can of that and in I road I'm if candidates deemphasized you're areas are prolonged wondering prolonged. stays many, all a And in of areas are map downturn guys pare of back for there's are many if are winding Are growth map? disinvest, term, for You that for

Kishore Seendripu

The them way product all They the need categories don't end work, simultaneously. seen have portfolio in markets. investment we

on them, one other then working You don't right? area. cycle finishing cycles, product through get the life the they're product market And long same you in and if into

up the optical the been have in we've And to That that. of the is has investment think our connected following really business broadband. I one was advantage investment road been taking map other The from the been biggest snuff on the single we're making. substantial home data getting biggest center. we Intel acquisition

on broadband, show we and but resolve that to We investment the now of investments. the off to of So generation side market. are multiple commitment are treadmill the entering we need optically

is on infrastructure our access wireless focus the where units. the where radio on been -- That's we're investment the side, the that's investing. XG focus of right with wireless So remote now. The has the single chip with solution

line much fully upgraded investment where really if and were targets have is up had And the today. to than they so investment narrowed it product be to product points and invested the down when it's fewer broadband, pipeline the

process. the So going it's is just by self-selection the process winnowing -- narrowing on a

see any really. end don't on investment markets revelation life markets, It's in new I just various based great the cadence based So on product cycles. the

Sujeeva De Silva

framework just your can the reason? multiple of of look a a 'XX on color like. Any trying customers why customer? transition to lot would the you 'XX tie still be lead side, Should the revenue there then technical run hitting maybe market in X.X supporting or expect now. Is kind XXXG you're optical rate And versus focus on that can calendar for what we A And helpful. reason? Is that a intercept get

Kishore Seendripu

XXX, think you but is gigabit a bit the But channels our design little many times come. won't and our while lane, for like are mainstay the all in one a XXX times our And wavelength to coming be the XXX to generation, from gig. with gigabit come will the into on revenues on data XXX per side of revenue terabit maybe have product I invest X side. miscommunication sort But we gig, Suji, X.X here, our rollout of X the is Keystone, next the that which revenue years for hit competitors, to XXX with generation. per gigabit just center XXX

we This of just to even be have though a to in one those continuity in of to have revenues X.X continuity So invest nevertheless, have may that is the not near-term, where make, terabit still the right? investments substantial It's for programs. we just our future. you ensure

Steven Litchfield

part question, that mean, I multiple drive Suji, first are in of sure. for And the there will customers your revenues 'XX,

Kishore Seendripu

Actually, single customers be a ones, customers, not least X meaningful revenue. revenue want at some are spoke we higgledy-piggledy 'XX, the clear. in X I the Even there driving just about is customer. to right? not

Operator

Our next from the of comes question Richard Craig-Hallum. Shannon line with

Richard Shannon

I'll topic on here. think a couple ask I the broadband

the point PON, it make growth the first And continue coming down a that most expecting pretty clear of of makes cable sense earlier just switch if certainly one, just I here, cable in about over from business up that, pen was in future, will PON that market's kind just The bigger splitting than verify based, then Q&A forward? TV at I the going which mean, think than line some possible be and bigger you you Do that PON the expect would and can comments to sense. here? paper between it putting the seems your that. PON to it Kishore,

Kishore Seendripu

dynamics are right? One we market not right, firstly, playing of side. TV market, cable on cable So that really It's is -- for couple we a cable to on losing share in are the the And data there the are cable the X telcos market. reasons. here, are in the the guys

BOM will minus, fronts. Let's right? leave probably for the is in you're the on share XX% That's a They market as having compensate couple we And the which terms be the plus reasons aside, though the be even increasing, subscriber of then on losses, see content distribution, recovery it flat losses. subscriber expect that maybe the the based time a us. And approximately and we'll dollar expectation.

of the day, offerings subscribers mid which is now, upgrade can wanting these augmenting they're cable guys their a markets, higher the And to cable carriers at there gotten of subscribers, market. end on access. end of end sort -- getting have That taste effectively to higher subscribers is wanting the of deployments so about side, tends to compete for there to you PON cable wireless the because the lower to On broadband PON now end. fiber be end major the the the see to wireless the higher of the right, the fixed

tend in gateways really cable pure to lower-end bigger fiber than from PON, to North deployments. And PON varied and be base And side, to will tend on. much will high-end the the distributions. markets. a you've got is be to America, mid-end So access really, so market on high-end Europe that subscriber it

pricing PON large different the the markets. in has But the So listing. very dynamics both a are

the we gateway starting little on very or of brink Tier footprint since X America, PON So side. the the in we have socket OEM winning the just North player no are to except at win the other in fiber one

expect to cable at to we our place. market to while PON revenues grow, stable it a We continue share expect be

Steven Litchfield

PON market And much cable to be is market. than the the clear, Richard, bigger

Richard Shannon

following-up. seen mentioned many here again, My alluded of there. competitor you've unnaturally received a to Yes. percentage back end this the contingencies, level question here a Kishore, of And by past. plus share message contractual question, mentioned or get And you've it in share some seen what that that that that transitions, ofâ€¦ XX you share that higher it of kind kind in so early to see to dynamics, market sort times, is points their and you've or a just of back minus where allow you to level normal what of Under cetera., certainly your whatever, to get about so second response keeps more revenues than et can

Kishore Seendripu

on I question yourself. think terms is the -- that future, share Richard, a in green you of This is field winnability. answered everything market

Richard Shannon

cable Even on side? the

Kishore Seendripu

Absolutely.

Operator

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

Tore Svanberg

mentioned again, I I industrial follow-ups. of this some being space, little I'm issue, products. to in Back telecom export the bit issue couple a but had you think mean just I a known confused. Kishore, an I Yes. this restriction guess about we've even

minimis development Is as that's going of going certainly last-minute trying new forward? impact understand the you a de revenue? because dynamics you really Just million, how much a is to this? to When of continue $XX that development. is pretty to does a percentage it's mean now this to there guide So something China pretty

Steven Litchfield

limit the that this think controls. It million impact come Yes, I China. to earlier to in in to was I No. does ability of us. surprise Tore. not is Look, $X order the we're $X so mentioned late it sell it million year. Probably of to our $XX say million. impact half to in going would QX. Yes, speaks quarter, $XX environment to the second in million the I did on ongoing with the a export it

I be well we'll aware, mean, sell to you're able to As in China. continue

don't of situation products. this I is somewhat So one-off a few think a with

Tore Svanberg

confirm just an also product. not industrial It's can you But telecom. that it's

Steven Litchfield

intended It Correct. was wasn't just that a statement. to Yes, telecom. Correct. broad say

Kishore Seendripu

all China. And in not entities. Specific it's customers

Tore Svanberg

question. Last

that the with point million fair quarterly break-even to will revenue? new your So $XXX say is in under it cost just structures, be

Steven Litchfield

here, right a I into good don't going think it's but we're the get Tore, to effort. model

Operator

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

Kishore Seendripu

thank you call. attending So today's all for conference

this very, of We we navigate progress optical particular we out situation a forward what data conferences I various and you on center. hope through a the quarter. in success what this the optimistically are in bottoming is particularly bring our look attending to to demand, investor call As we inventory broadband infrastructure, on in

For the that a matter, on details be conferences, be this posting we'll quarter our number and at financial will events, virtual presenting Investor of Relations page.

we you So much. soon. for look us to again thank you and today, again, with very joining once all forward you speaking Thank

Operator

concludes teleconference. This today's

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

MaxLinear (MXL) 24 Jul 242024 Q2 Earnings call transcript