• Total Revenue: $92.2 million, up 14% from the previous quarter.
• Infrastructure Revenue: $27 million.
• Broadband Revenue: $29 million.
• Connectivity Revenue: $20 million.
• Industrial Multi-Market Revenue: $16 million.
• GAAP Gross Margin: 55.6% of revenue.
• Non-GAAP Gross Margin: 59.1% of revenue.
• GAAP Operating Expenses: $92.4 million.
• Non-GAAP Operating Expenses: $61.3 million.
• GAAP Loss from Operations: 45% of net revenue.
• Non-GAAP Loss from Operations: 7% of net revenue.
• Cash Flow Used in Operating Activities: Approximately $28 million.
• Cash, Cash Equivalents, and Restricted Cash: Approximately $120 million.
• Day Sales Outstanding: Approximately 85 days.

• Warning! GuruFocus has detected 7 Warning Signs with MXL.

Release Date: January 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MaxLinear Inc (NASDAQ:MXL) exceeded its revenue targets for Q4 2024, achieving $92.2 million, which surpassed the midpoint of their guidance.
• The company reported a significant improvement in customer order rates and backlog, indicating a recovery and growth in demand.
• MaxLinear Inc (NASDAQ:MXL) has made strong progress with its Keystone PAM4 product, shipping over 1 million units and securing design wins across multiple customers.
• The company is well-positioned for growth in 2025, with strategic engagements in high-speed interconnects, wireless infrastructure, and broadband markets.
• MaxLinear Inc (NASDAQ:MXL) has a promising product roadmap, with new products like the Swan Creek switch gaining traction and expected to contribute to significant revenue growth.

Negative Points

• MaxLinear Inc (NASDAQ:MXL) reported a GAAP operating loss of 45% of net revenue for Q4 2024, indicating financial challenges.
• The company's cash flow from operating activities was negative, with a cash outflow of approximately $28 million in Q4 2024.
• Day sales outstanding increased to approximately 85 days in Q4, reflecting potential inefficiencies in accounts receivable management.
• The industrial and multi-market segment remains weak, with demand softness and inventory challenges persisting.
• MaxLinear Inc (NASDAQ:MXL) faces uncertainties in the timing of new product ramps and market adoption, particularly in the optical interconnect and broadband sectors.

Q & A Highlights

Q: Can you discuss the recent developments in the optical interconnect market and how they might impact MaxLinear? A: Kishore Seendripu, CEO: We are excited about our strong performance in 2024, exceeding internal revenue targets. We have design wins and shipments with all 12 major module makers globally. The recent developments democratize the market, allowing new entrants like us to expand our share as the market grows. Our technology is well-suited for the increasing demand for high-speed, low-power interconnects.

Q: What caused the fluctuations in day sales outstanding (DSOs) this year, and what should we expect in 2025? A: Kishore Seendripu, CEO: The fluctuations were due to product mix and sales timing. We expect DSOs to stabilize in the 80 to 85-day range for the rest of the year.

Q: Can you provide more details on the improvement in bookings and backlog? A: Steven Litchfield, CFO: We are seeing significant improvement in bookings and backlog, with much higher visibility compared to previous quarters. This is due to better customer understanding of lead times and our new product traction, which is driving market share gains and new program ramps.

Q: What is the outlook for your optical business in 2025? A: Steven Litchfield, CFO: We are targeting $60 million to $70 million in revenue for our optical business in 2025. This is driven by the 800 gigabit conversion and new data center rollouts. We are confident in our progress and look forward to further growth.

Q: How do you view the potential impact of co-packaged optics (CPOs) on your business? A: Kishore Seendripu, CEO: CPOs are part of ongoing discussions in the data center space. We focus on providing high-performance, low-power DSP and TIA solutions. The market will require a diverse supply ecosystem, and as a pure-play silicon vendor, we are well-positioned to partner with optics players and capitalize on this opportunity.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.