MaxLinear Inc. (MXL, Financial) reported first-quarter revenues of $95.933 million, slightly exceeding analysts' expectations of $94.93 million. This performance highlights the company's ongoing recovery and expansion. According to Chairman and CEO Kishore Seendripu, the firm is on track to achieve significant financial milestones, including a commendable reduction in non-GAAP operating expenses and a targeted return to profitability coupled with positive cash flow anticipated by the second quarter of 2025.
The company attributes its positive outlook to strategic investments in blooming sectors such as high-speed interconnect for data centers, multi-gigabit PON access, Wi-Fi connectivity, ethernet, and wireless infrastructure. These investments are expected to drive product demand and revenue growth from leading Tier-1 clients.
MaxLinear's advancements in new product development, alongside a recovering industry landscape, are set to further bolster its growth and market share expansion well into 2025 and beyond. The company remains optimistic about its future prospects, fueled by its strategic initiatives and market positioning.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for MaxLinear Inc (MXL, Financial) is $18.55 with a high estimate of $27.50 and a low estimate of $11.00. The average target implies an upside of 68.48% from the current price of $11.01. More detailed estimate data can be found on the MaxLinear Inc (MXL) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, MaxLinear Inc's (MXL, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for MaxLinear Inc (MXL, Financial) in one year is $14.40, suggesting a upside of 30.79% from the current price of $11.01. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the MaxLinear Inc (MXL) Summary page.
Key Business Developments
Release Date: January 29, 2025
- 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.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MaxLinear Inc (MXL, Financial) 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 (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 (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 (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 (MXL) faces uncertainties in the timing of new product ramps and market adoption, particularly in the optical interconnect and broadband sectors.
