MaxLinear, Inc. Announces Fourth Quarter 2020 Financial Results

MaxLinear, Inc. (NYSE: MXL), a leading provider of RF, analog, digital and mixed-signal integrated circuits, today announced financial results for the fourth quarter ended December 31, 2020.

Fourth Quarter Financial Highlights

GAAP basis:

• Net revenue was $194.7 million, up 24% sequentially, and up 178% year-on-year.
• GAAP gross margin was 42.7%, compared to 42.3% in the prior quarter, and 52.3% in the year-ago quarter.
• GAAP operating expenses were $106.7 million in the fourth quarter 2020, or 55% of net revenue, compared to $100.8 million in the prior quarter, or 64% of net revenue, and $44.6 million in the year-ago quarter, or 64% of net revenue.
• GAAP loss from operations was 12% of revenue, compared to loss from operations of 22% in the prior quarter, and loss from operations of 11% in the year-ago quarter.
• Net cash flow provided by operating activities was $74.3 million, compared to net cash flow used in operating activities of $16.6 million in the prior quarter, and net cash flow provided by operating activities of $28.1 million in the year-ago quarter.
• GAAP diluted loss per share was $0.33, compared to diluted loss per share of $0.50 in the prior quarter, and diluted loss per share of $0.11 in the year-ago quarter.

Non-GAAP basis:

• Non-GAAP gross margin was 57.8%. This compares to 58.0% in the prior quarter, and 64.6% in the year-ago quarter.
• Non-GAAP operating expenses were $75.8 million, or 39% of revenue, compared to $61.1 million or 39% of revenue in the prior quarter, and $30.0 million or 43% of revenue in the year-ago quarter.
• Non-GAAP income from operations was 19% of revenue, compared to 19% in the prior quarter, and 22% in the year-ago quarter.
• Non-GAAP diluted earnings per share was $0.39, compared to diluted earnings per share of $0.32 in the prior quarter, and diluted earnings per share of $0.16 in the year-ago quarter.

Recent Business Highlights

• Announced three new high-current DC/DC Power modules that simplify FPGA, DSP, and SoC power management designs in infrastructure applications.
• Announced that MaxLinear’s wireless transceiver chipsets are used in Microelectronics Technology Inc. (MTI) Remote Radio Unites (RRUs) targeting specific greenfield Open Ran deployments for 4G and 5G applications.
• Announced that MaxLinear’s new WAV664 Wi-Fi SoC was selected by Wi-Fi Alliance as an official Wi-Fi 6E test bed device.

Management Commentary

“In the fourth quarter, we posted record revenue, up 24% sequentially, due to stronger-than-expected demand for broadband access and connectivity products. The fourth quarter represented the first full of quarter of ownership of the Intel and NanoSemi assets, with which we are making tremendous progress on the respective integration efforts. Despite intensifying supply chain challenges, our cash flow from operations approximated $74.3 million with non-GAAP gross margin of 57.8% in the quarter. We are making tremendous progress with integration efforts of our recent acquisitions. With this backdrop, along with contributions from our expected revenues from our PAM4 DSP product for the 400G optical data center market and 5G wireless backhaul, we are very confident in the Company’s outlook entering 2021,” commented Kishore Seendripu, Ph.D., Chairman and CEO.

First Quarter 2021 Business Outlook

The company expects revenue in the first quarter 2021 to be approximately $200 million to $210 million. The Company also estimates the following:

• GAAP gross margin of approximately 51.5% to 53.5%;
• Non-GAAP gross margin of approximately 57.5% to 59.5%;
• GAAP operating expenses of approximately $103 million to $107 million;
• Non-GAAP operating expenses of approximately $72 million to $76 million;
• GAAP interest and other expense of approximately $4.3 million to $4.5 million; and
• Non-GAAP interest and other expense of approximately $4.0 million to $4.2 million.

Webcast and Conference Call

MaxLinear will host its fourth quarter financial results conference call today, February 3, 2021 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). To access this call, dial US toll free: 1-877-407-3109 / International: 1-201-493-6798. A live webcast of the conference call will be accessible from the investor relations section of the MaxLinear website at https://investors.maxlinear.com, and will be archived and available after the call at https://investors.maxlinear.com until February 17, 2021. A