MXL - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to the MaxLinear Fourth 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.

begin. may You

Leslie Green

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

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

filed obligation revise our to are of the made including uncertainties, Any involve risks we our including section Risk products, statements our execution trends, forward-looking results, and Factors addressable our opportunities forward-looking and or maxlinear.com. timing future Relations in forward-looking no relating release certain The forward-looking today, and at update XXXX across outlined Investor operating has markets, potential and growth and of website market earnings concerning Fourth In available is as and to business of adoption MaxLinear and statements in and and share without addition, for statements. statements recent Form markets, revenue any of various These products for including, financial today. of total uncertainties risks Quarter XX, products, section geographic will opportunities, our the plan which the demand including technologies December statements XXXX, in production of we for limitation, the XX-K of our make filings, SEC market. year ended launches such new target

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

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

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

Kishore Seendripu

everyone. afternoon, good and Leslie, you, Thank

at million Our a QX in results with our of exceeded guidance operating revenue, in the reduction significant non-GAAP of $XX.X gross margin midpoint along expenses. XX.X%,

Ethernet growth to strategic product our solid year. provide improvement such recovery, in as achieve and us PON, interconnect, growth continue our These order backlog. and high-speed new areas this and that rates We throughout with can combined meaningful of customer traction improvement financial see Wi-Fi confidence we results signs continued in in

in exciting our strong design traction the growth is in for and high-speed product. significant Looking 'XX infrastructure, growth positioned connectivity. PAMX at activity center in driving design-win expansion revenue our in X-nanometer progress 'XX We made product markets, and cloud for We data our exceeded Keystone calls of key 'XX. and are optical targets computing around with

opportunities. this across As approximately into month, shipped have of of X million-plus multiple customers units products we total Keystone high-volume

sets the this The XXX growth applications PAMX throughout providing as beginning data-intensive our and scalability. content our as superior revenues, anticipate X.X exciting next-generation to lane gigabit for XG power ramping AI, performance rollout storage Edge as family while data as backhaul modems new At active radio cables performance wireless Quanta unit and into terabit improves announced are for within for active differentiation our believe as increasing opportunities. III rapid half Tier access are massive Panther transceivers, and additional strongly qualification X enables in electrical Rushmore in In data XXX XXXX the other CapEx design-wins supporting mainstay particularly incremental in of of a of are our address with such the We positioned new TIAs customers gains Also, O-RAN XXXX. Keystone data ramp, design-wins provider Conference year gigabit initial Series be access and XXXX. continue This second service solution and usage AI. we November, and we and X.X to infrastructure Our the functionality and both and in even center applications. single-chip our infrastructure, cables growth our focus wireless and and per continued software-defined partnership and rates of terabit Supercomputing expected. high-speed are We well transceivers for and share spend at to enhancing our storage XXXX as in to advantages solution optical computing joint DSPs interconnections. needs essential accelerators mobile and for hardware

ahead, the to is with resellers and design-wins value-added enterprise gigabit our markets. geographies. has products Creek, PHY and switch broadest integrated single-chip center, across X-port within customers for major one switch business positioned the MaxLinear connectivity, looking our of Ethernet Swan X.X traction Panther In with switch strongly most of rates. data is gaining look edge multiple upgrade enterprise small As multiple across key customers portfolios the competitive XXX-gigabit the and enterprise PHY and networks to we the applications of network medium Ethernet storage product and and their and Ethernet at

and contribute production significant to revenue years. the XXXX X enterprise growth to in Our North ramp American Tier customer over expected is OEM Ethernet to coming

and addition to interest broadband a gateways Wi-Fi X.X, broadband widespread target PON our X.X to DOCSIS data and in we market to broadband from routers. DOCSIS bearing focus our fruit. next-generation and strong are considerable cable Ultra expand addressable connectivity, is offering of solutions DOCSIS Shifting on In addition, seeing

We SOC design-win single-chip traction single-chip plus triband fiber for have processor integrated our XX-gigabit solution. and Wi-Fi-X PON gateway platform exciting

We promising can product conclusion, have execution a strong in solutions. and traction multi-gigabit X addressable wireless center, engagement PON we meaningful interconnect expansion a across infrastructure, In for categories, several storage including opportunity connectivity deliver and believe access data Tier market to become us accelerators, 'XX. begun at Ethernet broadband and carrier, for high-speed high-value America map our which target enterprise road has Wi-Fi another major 'XX and North

achieving and we revenue Steve the With As also Officer growth years. prospects in over Chief let the coming our solid not now 'XX, in only XXXX, we're to Litchfield, begin Financial we Strategy confident me turn call energized Officer. of but Chief feel that, with the Corporate sustained growth

Steven Litchfield

and of and expenses compensation during quarter primarily XX% performance-based GAAP Thank QX, industrial quarter. million, acquisition-related and quarter was million non-GAAP operating the equity revenue non-GAAP you, from expenses the in $XXX,XXX million our revenue and and cash. expenses non-GAAP for non-GAAP $XX.X XX.X% and X% due million, Infrastructure GAAP was other gross was in cash, quarter and Kishore. revenue costs and revenue to fourth was previous approximately restructuring of million. XXXX with million, the broadband million. The loss the stock-based the for margins asset $XX $XXX driven $X.X cash Total flow from acquisition-related and and and amortization. $X.X approximately QX million, operating XXXX $XX $XX fourth operating $XX XX% $XX.X income $XX.X million multimarket GAAP were million. GAAP million. gross was quarter by of operations delta activities net approximately cash $XX was for million revenue and $XX.X respectively. In was $XX.X operating of the interest fourth of was connectivity revenue. exited combined, in margin up between quarter intangible equivalents, Fourth were for non-GAAP delta were primarily was of revenue. The million We GAAP was in quarter and restricted used XX.X% accruals GAAP million and non-GAAP fourth of between $X $XXX,XXX, QX the costs

outstanding the Our XX to days. quarter up sales approximately fourth day's was in

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

industrial Looking be be up. end market, expected approximately to to down. broadband expect and at QX is to expected Connectivity be and we multimarket is by flat infrastructure

XX.X% the be to approximately to margin quarter revenue. and XX.X% and first gross of in to expect GAAP of margin be non-GAAP We gross XX.X% XX.X% range

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

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

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

on $X.X and basis X. tax GAAP expect a We expense million a of non-GAAP tax a

Fiber of interconnects, each. as in in gateways We approximately access closing, broadband quarter we innovation excited high-speed are share near-term to give new confidence product XX.X next and tangible growth XXXX. improvement another and stage investment diluted in We're that orders wireless storage, expect deliver of such are our that be million our customer opportunities traction growth. Wi-Fi, infrastructure, entering QX long-term our GAAP continued and strategic for Ethernet, applications beginning In us and count optical non-GAAP to and

XXXX In model year. our addition, to in return questions. for is the positive and for up a on operational that, us this in profitability to we'd open like call our efficiency positioning With strong focus leverage business

Operator

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

Tore Svanberg

among group. interconnect first obviously, into you one first peer you're relatively entrant optical the an My are to but market, your still report so is, the question

week, So that potentially far could the a little you I topic optical events bit especially you as this and was talk just the about this interconnect Steve, Monday, just view whole both do of as how market? impacting Kishore from hoping

Kishore Seendripu

strong Well, exceeded Tore, our revenues. have we're of internal recorded pretty own now excited that a We we targets XXXX.

China and in shipments the have various top with across We module U.S. both and makers their in the quantities the and stages all with customers end spanning design-wins world,

expands the With the the our expand PHY that week, share part. what democratizes happened the the at real afraid new us possibility end and entrants are only grows. I'm that's of really exciting interconnect a really to market to that's day, for we company. question as So high-speed And like a really this regard transport

So compute, be targets performance high-efficiency going right that what more to faster happens and to technology require. have no and power markets we the these speedier are they're and be links the and going in low matter the for will

given a be are point processing but view, is from So needed. of links they're my going one and to content thing, the really

I hold. going in expanded like it us really if people democratizes think really to to So and I singularized take really, call for what that's participate majorly market

Tore Svanberg

Yes. a how QX. came as the should And now still my place back follow-up, have Steve, they what's DSOs help down going 'XX? bad QX, we perspective. in up been again about as great They QX, all in very understand us came here nicely year. as right? over on this but And DSOs That's not into think the Obviously, But there?

Steven Litchfield

Yes.

there. It they product think we little a understated of had that probably mix the bit some and sales was I just really QX. in a were

it year. So the bit, the is I would XX% they little range did to argue probably see XX% come that but this you'd where rest of up likely a

Tore Svanberg

Got balance Was that think was it. the $XX that million? it explains But why down, main? cash your came I

Steven Litchfield

a Yes. about but movement some restructuring were around was was quarter. that cash certainly, expected QX. in the that last sheet. there of already costs, talked definitely We kind But come but was There down, balance The that as did balance reflected.

Operator

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

Ross Seymore

the backlog. think, I the those quarter you've a row third seen in and wanted improve. talk the to about bookings It's, I

just little sort geography? by So perhaps color that give cycle Any company be or turned. And it specific? would to of it's bit you either end great. being those is it see of color you happening, finally turning? nice is Or even that is of where kind Could see corner on the market that a metrics on like

Steven Litchfield

definitely quarter into mean, Sure, X higher. the Ross. continuing the quarters we're Yes, thanks mean, backlog, this is or side, really starting to the nice improvement I for on question. see previous versus going yes, X much bookings I

feeling we're more So confident. much

times are product certainly and get they Just visibility has ask Customers when lead for improved. understand can't they that to tomorrow. starting recognize the

it's I So mean, last MaxLinear as worse certainly some we're improvements broadband been seeing It's over I nice question forecasting. visibility years. look, far mean the as a and market, the everyone? in is versus your X it lot

is about new got also, think mean, bit. his XXXX, to normalize at in And we a products. talked certainly, as so lot I starting I statements recovery. that of I a Kishore I look say would And we've a the

I are coming nice I But think that a will we're and that new new be most think products programs about we've won. is tailwind. excited that what these these

So market we're products gains and ramp. that certainly to share seeing are starting there's that new

Ross Seymore

Steve, as probably guess, for you well. I And Great. one this is

about restructuring the efforts, think SE, but year the OpEx change. And wanted the quarter or that million, to $XXX the you not side. on fourth what, for plus make there's impact per guys big I sure on Just talked just I minus no full

and there's sort Just still of wanted to the lumpiness any see, XQ. if XQ right on and trajectory if to path that's between that the

Steven Litchfield

of certainly we after that. somewhere residual some seeing changed. OpEx it these of move in between year. I do it nice for bit final not have restructuring the But year. down effects definitely will don't in I to it so kind $XXX improvements there, kind that portion little we're the million talked come And change think mean, continues million I had of a was of that about biggest be underway place year, kind throughout would some and I and $XXX the down you'll the It's the as expectations QX, the that huge see Yes. expect spending. is a modestly. expect throughout of take but and

Operator

with from of the Northland Timothy question Markets. Capital Savageaux line comes next Our

Timothy Savageaux

Question the I guess. front, optical on

a I I the where up you January, throughout year in. of revenue more coming and than comments, range for think good like given $XX if this And to million that wonder been you've the increased have could you I it guess. talking seems in ended your us must you'd year. kind volume pretty tell

volume know a revenue step of been your million up in So the have I'll may can kind up there? versus we at there. guided X follow big higher, unit infer looking infrastructure I from you've just And 'XX. whatever

Steven Litchfield

I came not expected. had probably really than I We mean, we statements. out I in mean pleased. previous echo the yes, the were the to, but the I year that number, range high originally. shy between XX we that think in Tim, number exact think we're didn't was we and the certainly of started And higher but we're landed XX Sure. we XX. I'd what of above said think we said breaking the what probably stretching I well We -- end

progress. the with pleased we're So

I wins revenues think lot XXX-gig our about, I driven those we've this really talked a and as happening production now just future year. are of are and by mean, conversion,

that exciting So time the talking more coming in forward it's looking about to quarters. and an

Timothy Savageaux

think range what similar optical you be that able early question, Or generate to I similar here this could wanted to you to a if like numbers, range in the a you sit set might what would next but perhaps in see if similar -- for year to 'XX? the conceptually you about as course, -- on of not you business

Steven Litchfield

Look, on Tim. I has this don't Sure, much changed Yes. front. think

-- about kind $XX million I to mean, number. $XX the I we've think of talked million

that's a that very new I Hopefully, reasonable right can think data target roll out number here. as you expected. centers these

Some wins of getting our doing our the qualifications certainly, and the control. that's of part But we're completed. out getting

in guess, customers' this roll -- customer, And these then customers programs. out case, our so see I as soon we as our

Timothy Savageaux

but guess a an of ago, module you on XXX-gig Amazon of Jabil, who we one doesn't partner Jabil of Amazon been took well, potential it I exactly where announcements couple like for a one think seems I of agreements while OFC, is and an me. and comment making warrants module MaxLinear. wonder but Okay. yours has of it with agreement any Last -- a actually, agreement transceiver a saw I that little on indicate could. have to back if relationship, bunch dating impact late, the

Steven Litchfield

demonstrated at I I guys -- we been confirm, have and working think with demonstrate for look, But will we've Well, those a agreements. on year, going mean, and good OFC I'm partner. definitely to as they've of we you time. some this many comment been I did last we not those seen,

Operator

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

Quinn Bolton

ask working $XXX to question. do on sorry, a at about down follow quarter? loss hit cash might in any wanted cash question in -- residual to just small where restructuring probably capital I follow-up the the or that Tore's -- through Cash there you you net maybe charges of you, major a million might income a March non-GAAP has quarter. changes few any million, Steve, in just million March the quarter? what to sort digit guidance you income -- think mid-single cash Are -- I sense net any

Steven Litchfield

Yes.

So question, good Quinn.

we've to down. about as cash, really think do talked expect front. inventory nothing's changed We continue on to that come I

revenues sure and we to burn inventories, that's good. above I'm certainly are capital, where certainly So revenues going that. Working start here as replenish be down are Out from we'll -- quarter to they have those to today. recover

put on we'll where talked that, start of likely yes. our building course. flow about cash So QX, to is have feel we QX best QX, it, and with it's of comfortable And probably manage today, midyear. probably to very we're it breakeven but I'd We've somewhere that, doing kind

Quinn Bolton

guess Okay. maybe questions. I for two And then Kishore,

for design-win, that ramp of in You I backhaul talked beginning think, was the if the product the Sierra for if about some sure market a I wasn't design-wins, was wireless half in second infrastructure 'XX. or X Tier the to that product.

Tier American X PON would there, And now sort great. additional any with promising If you mentioned more then of on that think I a similarly, North side. provide be you could an detail engagement the

the working talked you've in largest think the past, North I with about America. of in two already

North X I America is misheard maybe that a something. if wondering third or So in Tier

Kishore Seendripu

our the transport infrastructure backhaul question second there There the half, also and answer of on it. they're two your parts are are first, business on Well, the ramp in in to -- to wireless both the side. access wireless

it's obviously, leader. whole of support unique be the is customers XG as product future. so well for the what our massive trend in is industry the primarily, for content both silicon as And of this to backhaul merchant growth the O-RAN And side. and product our macro one coming both revenues and it's and Sierra And our lines, on backhaul a a would Sierra expansion And these product the is MIMO for products. beginning through

is World of timing you'll of a glimpse to you're that and little excited bit more these design I'm that Hopefully, a super able products uncertainty. So -- that be at a about sure. Mobile Congress, catch lot for would

broadband side, we engagement. to the a X on referred Regarding Tier we're operator, in where

could driver We expect that of a But to it be little Sure. in in XXXX. a bit 'XX? revenue major have

Now se America major talked two at operator. we we be about about about operator. whole operators, a a but will per talked there are multiple these in Tier a gateway a understand must Tier gateway X this North but never operators, design lines X product We talked design-win X Tier you that within

Quinn Bolton

the PON chip? Is and Wi-Fi PON or that just

Kishore Seendripu

the single-chip it's It PON right. When XXG both, plus these full processor along supports gigabit with Quad solution, Ethernet gateway Yes, facto. I XX-gigabit refer point speeds It's access it's Ethernet de world's with a first gateway that X.X own PHYs. our tri-band days, Wi-Fi Wi-Fi. Port has XGS-PON to

Operator

ROTH Desilva the from Capital of comes with Suji question next Our Instructions] [Operator Partners. line

Sujeeva De Silva

as segment Just be maybe but color, like to, and likely there. strong? that's just the some you double-click what Steve, And and where up at are? you understand I if appreciate I'm takes segment continue the a would low have on to if Just trying ramp here, end the to the infrastructure guidance. down infrastructure trying is understand puts to the color that as to growing offsets ramping wanted have to XQ

Steven Litchfield

the that we'll Look, to grow I biggest we I lot one Yes. end a much well definitely like been think at There's weak working the And grower we're that. mean of And that's the broadband I excited. inventory one about probably But been is along the through it's little peers, happening as and a more there, our I really still, mean, see starting many industrial. likely QX of for think Infrastructure year, certainly higher I around. of level. think certainly, to bit is has got year about but the and stated connectivity in that's soft. as we kind with recover is as demand. a broadband. talked Demand we're out we've

Sujeeva De Silva

news or Okay. just That's this know it's if topically helpful, maybe on looking And but like you Tore orthogonal merchant risk? help opportunity thoughts to for discussed, creates impact whether something it's being a update NVIDIA's the curious your then as it XXX, color for Kishore, X.XT. maybe on what Marvell. people in-house whether vendors us could there whether I opportunities also in or -- or whether CPOs solution Steve. asked CPOs I'm are about that your Any week, would

Kishore Seendripu

have their and is we're call the or always silicon done But environment interconnect But silicon data beyond compute linear DSP, but goal with the high-throughput a it. optics. space, or of part Interconnects, that have. our CPOs for And TI story, for XXXG/lambda connection, that, center optical not type I pure right? right. market storage is you us. target focus presence a transceivers, if supports we look it's or third at engagements discussion interconnect addressable now Because and PAMX optical just data there will, in Well, a kind interconnects it is vendor CPO is our constantly within High-Speed next-generation whether a center why is the provider, other a on always of we optics discussion incarnation in a the spans that that's the vendors any

it. of element one is CPUs So

lot and own is players of ever years actualized. goes if issues because have the partner various to power ASP not lock front with and really don't I to yield, or in if it and it you properly to have CPOs, on quality there's of many, then quality, before their viable optics waste footprint just a that how the they that. become enable For that of many that, optics you your think

people I And topics ideas, all So solutions venture go in okay? pursue time and these to our we think or have come directions, different every provide industry. these different into

Operator

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

Sam Feldman

Karl This for is Ackerman. Sam Feldman on

that can Amazon will you confidence business that gives XXXX, given may you it the at ramp mean your in double, until So DSP DSP XXXX? indicated this indicated your What given XXXG with ramp engagements not ramp XXXG? hyperscalers. Does

Kishore Seendripu

there's years. for Look, a is again large XXXG many that opportunity and many, XXXG large, will last

think also CPOs, I honestly. about answers question that Suji's

So our revenues are a third player. in the mix of both XXXG we and XXXG. space, And new are and as market Tore pointed entrants out, this

So that optical we can a have in and go large the revenue interconnect we access.

Regarding, there X markets are here.

We which side maintained side, the to the network and delayed very the I have is what line always call very, compute AI relative different that really is the markets.

not delayed sort are not followed say there's and NVIDIA on And frankly, right? line of is the being There's the much And have And Meta, we side on I later. line player happened in the -- that of terms cadence market the always And in they've not the side delayed. our the past. Amazon are only track always front. what one, Microsoft So of we -- everybody XXXG we've think been in the said market roadmap, a comes the as else. markets. they would indeed I are

reality the is And so it. that of

after that a shipment while be XXX their course. how X.X of before line, will it have that the I sort by And same and I portion terabit that So really, until the long terms a way. true say meaningful in the both comparing for time run becomes XXXG be they're terabit, will really the in very revenues would markets evolving. of you the G/lane X.X different think of of or markets are XXXG

Okay.

Operator

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

David Williams

guess I may see just Kishore, OEM Tier Swan on indication customers or for multiple product is the design-wins. seeing line? in first, design-wins us to talked wanted how Creek I mentioned script you missed Swan trends could think it, you product enterprise I if with that give and of know and but I demand a the around little have Ethernet And in I ramping? major there. PHY feedback the But maybe Creek the you're And you've your X.XGb this any maybe there about just earlier, that color X

Kishore Seendripu

ports it designed side Swan It's it's anybody's one Creek, industrial on the players product. multiple can product. have And way highly it's of as X probably X.XGb and X of switch well. as gateways much as and very has. to we with category. X most differentiated. all switch a we, from on even the the and products ports routers It a all on the offering well. I the pretty be premier, the for the unique major goes, can It those multiport of product compounded do to do quite XX-port solution of outlined were ever designed the So demand that think frankly, amount surprised has with a kind It's And and successful traction ourselves

happened, intact. And year. supposed it's and this actually last end of their that it will delayed So I It's to the not traction. that That have overall stronger gotten 'XX, pretty strong year ramped And really, OEM, remain Tier for in product we can believe, And platforms. revenue per line extremely million be in position. $XXX 'XX, towards it 'XX, it's product ramping. will And but the good rate with were X 'XX, run towards believe got we the a be plans in head in proportion or PHYs major Ethernet multiport towards PHYs but switch. over ramp X the continues tilted PHY switches single equal And and more the a the we as of the start sense year, -- has rest and multiport years. the to be X next would mix and the

David Williams

seeing Anything there? trends? are speak demand I even to anything trends of China America? Maybe demand How guess, would how you to geographically, point terms the you around regionally of North you're seeing, maybe that or in

Kishore Seendripu

-- almost the of as these in designs our most activities, activity activity, markets such. where all Most or happen sales support of Taiwan Absolutely. these our in And of that's China.

are markets about that, markets say end well, and markets varied, end but largest the we're the would right? quite the So they you quite in should U.S. happy I given expect world, are So the China-centric, which are primarily it.

Operator

Our Markets. next from the Valero of Alek with Loop comes question line Capital

Alek Valero

Alek X Ananda. have quick on for questions. is I This

first question XXXG yourself my to more so, If customers? yourself do dynamics you what those being So attractive is, becoming go do guys as -- see we do as to look from guys see you like? X.XT,

Kishore Seendripu

there of it Broadcom. and speaking, Look, for, really, Marvell competitive at duly would you really the They terms very, them have incumbents is credit as the if very come you entrenched force, will. are one which give in -- differently both

there's we is credible transceiver extremely entrant nobody is XXXG close new the what XXXG solution by offer. one per design, delay, Amazon about only -- offer we one products XXXG of are for be or far. that and the There's lane in the power is ramping optical However, And on what newest the to ramping generation low soon, will example. solution of even analysts latest space like which for the which the brought

So any key, competencies power, differentiation comes network company. an power, from that's where low data the or know built we now our power, AI core the and power really and it's whether center, all as extremely a is we

as in seen years also to centers we've technologies. module optical new and upgrade the -- try that shortages few all believe solutions data on I and to DSPs So last

next build supplier our demand first our genuine from a the X. third And million supplier, third that hopefully, much, is from It pleased I that. up leading that's year day it there. last do And been much And to progress. a as this very It's build a $X pretty and we to third hope the and we million went plan there's where game to year X are with units, is So supplier. proof we then fact for think and wants $XX And a we year. could everybody better position million of that's to and -- substantial.

expand I strongly Now entailed very side. know questions, to of is interest, you we has our I beyond this this market portfolio lot but optical have area intend of strategic that this to clear the a and our want analysts, and area, very, investment, investment a to in just high-growth on invest be very, very to continue a space. OpEx space always

Okay.

where in I think the infrastructure now our right is thrust that's space. strategic

Alek Valero

it. Got

quick a follow-up. Just for

So in do you advantages [ you disadvantages to believe net your -- just you guys optics, ] guys guys? that is neutral with the of Or world Co-Packaged you? guys stacked it

Kishore Seendripu

may it competitors vendor those cables, part absolutely the ecosystem. will positive and that the really are who pure-play invested integrated competent is excellent supply are because And they this. thing. are players no in pure-play a at to need silicon capacity MaxLinear that And fully -- world do optics, a try therefore, more net player market be that. our say more optics would they require a in and I the producers silicon if No there really, sort and in who a of optics a are optics CPU, are and of

a a it's net with a alternative I be would sort us our positive we So attach along the think from what we for optics that would pool for the provide, of DSP. creating and best

Operator

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

Christopher Rolland

to X? market And power talked tying you have maybe share? range maybe a maybe we or move think as another or expect low Will Kishore, more had you you do even units you put if way, that in we be maybe million about this, optical, X case competitors move bull but might should would around Like of units to guess about optical a low I to XXXX. there into advantage? X How nanometers, still that power.

Kishore Seendripu

architectural advantages that's are So this whole And part, the I I'll that out competitive and We to performance about are want some told add shipped. and we with have important. report, other latest last obviously, let the like units of and -- transceiver things we'll we take thing And these Steve number the design shipped absolutely million That's I checked, one. that right. talk the colors modules this secret on to come And capabilities. that X confident we is units our you thing, you just power of the and the million that, sauce have seriously. XX incredibly of

we know proud I by right Can that. X% the on that, much I about it's it. million would would that to the earlier should thing. I'm market about not do But way talked beyond don't than uncertainties stand share, So guidance Steve of sort expect because there I $XX yes, are pretty That's this and desperately we that. that million, you the provide on to $XX right? better us various do I of timing give XX% color better? now. want

I much you. promise that So

Christopher Rolland

off. as just not networking like maybe but Kishore, as And concern your And on had it itself, about a it DeepSeek AI still is much democratizing Great. democratizing this revisiting your open-source quite comments off was bit Tore's intensive. and I understand question very others, hardware but I AI, all about maybe this week. stock not seems mean

your clusters, so this, to of that And very training opinion, wanted architectures more for in and affect revisit these either seem optically intensive. mega just inference in example, be might I to opinion or efficient kind your how

order any anything transceiver would week you've Just It of sort was a for in play over in when reset terms there volumes of sound out we if rates, units, on DSPs, like know? terms guys, know? But reset. would and will and or thoughts a when we you in past seen how some this doesn't of the

Kishore Seendripu

Well, networks huge. this world demand products, know was very one. otherwise do, know all ChatGPT ChatGPT beyond make knew extremely that there was week AI my to road map, Number present, these dynamics huge And if and what we low know this very, short, performance. that's too there is drive good were on are is was the even we that all that, is started market the before And power, no understanding. There don't Likewise, I AI is even but markets. enough is high DeepSeek right? that two when very going the I Nobody the look, number would before, I is happened, right?

dollars, fantastic disruptive innovations, I it, and it by beings, So that course. will gobble right? how it's comes make how market we'll more should reduce, us don't right? but a eat But about of stay from don't more be for we think The is, be whatever to don't point competitive. us reaction I So And really we just have market. of surprised my just this. view, the for will a exciting any thoughts expect TAM much the okay. human huge There cheap We me in appetite I as MaxLinear. no have from And is direction,

Operator

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

Tore Svanberg

there's ACC. announced Yes. of I just there. and because business, a follow-up, a market obviously talk you've lot discrete also There's into had out Kishore, TIA a getting about DSP your but optical AEC,

is MPO optical largest think year. $XX that competitors bit you and just Or also $XX just we predominantly the before And from DSP? announced end little that? here a see your about are about discrete million, the of million, you can TIAs? of to So contributions talk ACC, that some When starting AEC, one

on you are I well, probably So MPO working assume, right? your capabilities, now given as

Kishore Seendripu

Absolutely. derivative DSP. a of what I we just MPO mean is as larger do a

So people, know I a Anybody still, people a such do are number make can big who only why this has but deal just don't one. there That got DSP PAMX. MPO. means about right, that's X

with is is are the AEC. and going predominantly, there across-the-board data still revenues, are -- -- sort it's remains are whether center until it's and some quite promulgation And that, verdict of the XXXG, small deploy pretty side XXXG different. the said now market the one some unclear copper because Our there dynamics still market be AECs, are AEC be small. to Having we trying will as to that and

be details, optical be therefore, How of we AECs. are big qualified, any big? and dominant overwhelm market do to expect we that AECs start. enough revenues into think have still it's to the XXXG, So I our revenues XXXG, We have don't and revenues would so getting that some own without already generating. that the going where a will

more that very eyes answered ACCs terms of MPOs, And I we're in questionable are tiny. pulling have back. And market all remains So that size, question. I've set regarding verdict AECs right? But on think these think I questionable. of we the even propagation. our ACC not targets, is

everything doing being where But are and We forth. and they our honest of revenues so just I'm design-wins so assessment are. an own on

So your the affirmative. answer is question to

their TIAs, foolhardy think on for So competitors will us for business. much and not optical And the TIAs X TIAs a one right, partners on more are work destiny DSP and we to we to cost power of the side. the TIAs, clearly, that on platform our expectation vendors competitive other our predominantly and right? platforms, able X is we as trying controlling own as the it On TIA but being competitive, so our be is with build much to the sell to

-- understand that making DSPs are aware I'm attached of TIAs plan. outside in So revenue to environment I'm of really as a of not that and terms you sure not just go-to-market stream our anything our

Operator

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

Kishore Seendripu

every So you, one again operator, Hey, want Happy thank and once it's you. New I of to thank Year.

muted. sounded all You

page. be at up. wake and exciting Thank Investor once And moving financial Year to I We'll you. forward. of we'll wish New And Happy again details you number and once Just New virtual post all our Year events. on a Relations this all quarter, of It's the times presenting conferences a you happy again. much, very

Operator

you [Operator teleconference. your participation. Thank for Instructions] today's concludes This

MaxLinear (MXL) 29 Jan 252024 Q4 Earnings call transcript