In This Article:
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Revenue: $95.9 million for Q1 2025, up from $92.2 million in the previous quarter.
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Non-GAAP Gross Margin: 59.1% of revenue.
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GAAP Gross Margin: 56.1% of revenue.
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Infrastructure Revenue: Approximately $27 million.
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Broadband Revenue: Approximately $41 million.
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Connectivity Revenue: $20 million.
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Industrial Multi-Market Revenue: $8 million.
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GAAP Operating Expenses: $99.9 million.
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Non-GAAP Operating Expenses: $58.4 million.
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GAAP Loss from Operations: 48% of net revenue.
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Non-GAAP Loss from Operations: 2% of net revenue.
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Cash Flow Used in Operating Activities: Approximately $11.4 million.
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Cash Equivalents and Restricted Cash: Approximately $104 million at the end of Q1 2025.
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Day Sales Outstanding: Approximately 94 days.
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Inventory Reduction: Gross inventory down by approximately $4.3 million.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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MaxLinear Inc (NASDAQ:MXL) exceeded the midpoint of its guidance with $95.9 million in revenue for Q1 2025.
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The company achieved a non-GAAP gross margin of 59.1% and reduced operating expenses significantly.
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MaxLinear Inc (NASDAQ:MXL) anticipates being profitable on a non-GAAP basis and generating positive free cash flow in Q2 2025.
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Strong progress was made with new product wins in high-speed data center interconnects, WiFi, and Ethernet.
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The company is seeing meaningful improvement in customer order rates and backlog, indicating potential growth in 2025 and 2026.
Negative Points
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The semiconductor market faces substantial risks and uncertainties, including geopolitical dynamics and tariffs.
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GAAP operating expenses were high at $99.9 million, with significant costs related to stock-based compensation and restructuring.
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Cash flow used in operating activities was approximately $11.4 million in Q1 2025.
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The industrial multi-market revenue was relatively low at $8 million, indicating potential weakness in this segment.
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The company is navigating a challenging trade environment, which could impact demand and supply chain dynamics.
Q & A Highlights
Q: Can you discuss the potential risks in your supply chain, especially concerning tariffs and manufacturing in China? A: Steven Litchfield, CFO, explained that while MaxLinear doesn't face direct tariffs on semiconductors, they are monitoring customer demand and how tariffs might affect it. He noted that most broadband equipment manufacturing has moved out of China, reducing risk. CEO Kishore Seendripu added that none of their broadband customer premises equipment (CPE) is made in China, and they are seeing strong bookings, indicating a recovery in demand.